1. Who headed the committee to review the methodology for measurement of poverty which submitted its report to the Union Government?

Answer: C.Rangarajan

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MCQ-> Read carefully the four passages that follow and answer the questions given at the end of each passage:PASSAGE I The most important task is revitalizing the institution of independent directors. The independent directors of a company should be faithful fiduciaries protecting, the long-term interests of shareholders while ensuring fairness to employees, investor, customer, regulators, the government of the land and society. Unfortunately, very often, directors are chosen based of friendship and, sadly, pliability. Today, unfortunately, in the majority of cases, independence is only true on paper.The need of the hour is to strengthen the independence of the board. We have to put in place stringent standards for the independence of directors. The board should adopt global standards for director-independence, and should disclose how each independent director meets these standards. It is desirable to have a comprehensive report showing the names of the company employees of fellow board members who are related to each director on the board. This report should accompany the annual report of all listed companies. Another important step is to regularly assess the board members for performance. The assessment should focus on issues like competence, preparation, participation and contribution. Ideally, this evaluation should be performed by a third party. Underperforming directors should be allowed to leave at the end of their term in a gentle manner so that they do not lose face. Rather than being the rubber stamp of a company’s management policies, the board should become a true active partner of the management. For this, independent directors should be trained in their in their in roles and responsibilities. Independent directors should be trained on the business model and risk model of the company, on the governance practices, and the responsibilities of various committees of the board of the company. The board members should interact frequently with executives to understand operational issues. As part of the board meeting agenda, the independent directors should have a meeting among themselves without the management being present. The independent board members should periodically review the performance of the company’s CEO, the internal directors and the senior management. This has to be based on clearly defined objective criteria, and these criteria should be known to the CEO and other executive directors well before the start of the evolution period. Moreover, there should be a clearly laid down procedure for communicating the board’s review to the CEO and his/her team of executive directors. Managerial remuneration should be based on such reviews. Additionally, senior management compensation should be determined by the board in a manner that is fair to all stakeholders. We have to look at three important criteria in deciding managerial remuneration-fairness accountability and transparency. Fairness of compensation is determined by how employees and investors react to the compensation of the CEO. Accountability is enhanced by splitting the total compensation into a small fixed component and a large variable component. In other words, the CEO, other executive directors and the senior management should rise or fall with the fortunes of the company. The variable component should be linked to achieving the long-term objectives of the firm. Senior management compensation should be reviewed by the compensation committee of the board consisting of only the independent directors. This should be approved by the shareholders. It is important that no member of the internal management has a say in the compensation of the CEO, the internal board members or the senior management. The SEBI regulations and the CII code of conduct have been very helpful in enhancing the level of accountability of independent directors. The independent directors should decide voluntarily how they want to contribute to the company. Their performance should decide voluntarily how they want to contribute to the company. Their performance should be appraised through a peer evaluation process. Ideally, the compensation committee should decide on the compensation of each independent director based on such a performance appraisal. Auditing is another major area that needs reforms for effective corporate governance. An audit is the Independent examination of financial transactions of any entity to provide assurance to shareholder and other stakeholders that the financial statements are free of material misstatement. Auditors are qualified professionals appointed by the shareholders to report on the reliability of financial statements prepared by the management. Financial markets look to the auditor’s report for an independent opinion on the financial and risk situation of a company. We have to separate such auditing form other services. For a truly independent opinion, the auditing firm should not provide services that are perceived to be materially in conflict with the role of the auditor. These include investigations, consulting advice, sub contraction of operational activities normally undertaken by the management, due diligence on potential acquisitions or investments, advice on deal structuring, designing/implementing IT systems, bookkeeping, valuations and executive recruitment. Any departure from this practice should be approved by the audit committee in advance. Further, information on any such exceptions must be disclosed in the company’s quarterly and annual reports. To ensure the integrity of the audit team, it is desirable to rotate auditor partners. The lead audit partner and the audit partner responsible for reviewing a company’s audit must be rotated at least once every three to five years. This eliminates the possibility of the lead auditor and the company management getting into the kind of close, cozy relationship that results in lower objectivity in audit opinions. Further, a registered auditor should not audit a chief accounting office was associated with the auditing firm. It is best that members of the audit teams are prohibited from taking up employment in the audited corporations for at least a year after they have stopped being members of the audit team.A competent audit committee is essential to effectively oversee the financial accounting and reporting process. Hence, each member of the audit committee must be ‘financially literate’, further, at least one member of the audit committee, preferably the chairman, should be a financial expert-a person who has an understanding of financial statements and accounting rules, and has experience in auditing. The audit committee should establish procedures for the treatment of complaints received through anonymous submission by employees and whistleblowers. These complaints may be regarding questionable accounting or auditing issues, any harassment to an employee or any unethical practice in the company. The whistleblowers must be protected. Any related-party transaction should require prior approval by the audit committee, the full board and the shareholders if it is material. Related parties are those that are able to control or exercise significant influence. These include; parent- subsidiary relationships; entities under common control; individuals who, through ownership, have significant influence over the enterprise and close members of their families; and dey management personnel.Accounting standards provide a framework for preparation and presentation of financial statements and assist auditors in forming an opinion on the financial statements. However, today, accounting standards are issued by bodies comprising primarily of accountants. Therefore, accounting standards do not always keep pace with changes in the business environment. Hence, the accounting standards-setting body should include members drawn from the industry, the profession and regulatory bodies. This body should be independently funded. Currently, an independent oversight of the accounting profession does not exist. Hence, an independent body should be constituted to oversee the functioning of auditors for Independence, the quality of audit and professional competence. This body should comprise a "majority of non- practicing accountants to ensure independent oversight. To avoid any bias, the chairman of this body should not have practiced as an accountant during the preceding five years. Auditors of all public companies must register with this body. It should enforce compliance with the laws by auditors and should mandate that auditors must maintain audit working papers for at least seven years.To ensure the materiality of information, the CEO and CFO of the company should certify annual and quarterly reports. They should certify that the information in the reports fairly presents the financial condition and results of operations of the company, and that all material facts have been disclosed. Further, CEOs and CFOs should certify that they have established internal controls to ensure that all information relating to the operations of the company is freely available to the auditors and the audit committee. They should also certify that they have evaluated the effectiveness of these controls within ninety days prior to the report. False certifications by the CEO and CFO should be subject to significant criminal penalties (fines and imprisonment, if willful and knowing). If a company is required to restate its reports due to material non-compliance with the laws, the CEO and CFO must face severe punishment including loss of job and forfeiting bonuses or equity-based compensation received during the twelve months following the filing.The problem with the independent directors has been that: I. Their selection has been based upon their compatibility with the company management II. There has been lack of proper training and development to improve their skill set III. Their independent views have often come in conflict with the views of company management. This has hindered the company’s decision-making process IV. Stringent standards for independent directors have been lacking...
MCQ-> Read the passages carefully and choose the best answer to each question out of the four alternatives. Poverty can be defined as a social phenomenon in which a section of the society is unable to fulfill even its basic necessities of life. When a substantial segment of the society is deprived of the minimum level of living and continues at a bare subsistence level, that society is said to be plagued with mass poverty. The countries of the third world exhibit invariably the existence of mass poverty, although pockets of poverty exist even in the developed countries of Europe and America.Attempts have been made in all societies to define poverty, but all of them are conditioned by the vision of minimum or good life obtaining in society. For instance, the concept of poverty in the U.S.A. would be significantly different from that in India because the average man is able to afford a much higher level of living in the United States. There is an effort in all definitions of poverty to approach the average level of living in a society and as such these definitions reflect the coexistence of inequalities in a society and the extent to which different societies are prepared to tolerate them. For instance, in India, the generally accepted definition of poverty emphasizes minimum level of living rather than a reasonable level of living. This attitude is borne out of a realization that it would not be possible to provide even a minimum quantum of basic needs for some decades and therefore, to talk about a reasonable level of living or good life may appear to be wishful thinking at the present stage. Thus, political considerations enter the definitions of poverty because programmes of alleviating poverty may become prohibitive as the vision of a good life widens.What is poverty according to the writer?
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MCQ-> Read the following passage carefully and answer the questions given below it. Certain words/phrases have been printed in bold to help you locate them while answering some of the questions.There are various sectors in India that are to be assessed for their strengths, weaknesses, opportunities and threats. The total population is over 1 billion which will increase to 1.46 billion by 2035 to cross China. The huge population will result in higher unemployment and deterioration of quality. Literacy, in India is yet another factor to be discussed. According to 1991 census, 64.8% of the population was illiterate. The major downtrend of education is due to child labour which has spread all over India and this should be totally eradicated by way of surveillance and a good educational system implemented properly by the Government. Pollution is one more threat to the environment and for the country’s prospects. This has been experienced more in urban areas mainly in metropolitan cities. The water pollution by the sewage seepage into the ground water and improper maintenance will lead to various diseases which in turn will affect the next generation. In most of the cities there is no proper sewage disposal. The Government has to take effective steps to control population which, in turn, will minimize the pollution. Poverty questions the entire strength of India’s political view and minimizes the energetic way of approach. The shortfall of rains, enormous floods, unexpected famine, drought, earthquake and the recent tsunami hit the country in a negative way. The proactive approach through effective research and analytical study helps us to determine the effects in advance. Proper allocation of funds is a prerequisite. In developed countries like. U.S., Japan precautionary methods are adopted to overcome this, but it has to be improved a lot in our systems. Increased population is one of the major reasons for poverty and the Government is unable to allocate funds for basic needs to the society. India has nearly 400 million people living below the poverty line and 90% of active population is in informal economy. The children are forced to work due to their poverty and differential caste system. They work in match industry for daily wages, as servants, mechanics, stone breakers, agricultural workers, etc. To prevent child labour, existing laws which favour the Anti Child Labour Act should be implemented by the Government vigorously. More population results in cheap cost by virtue of the demand supply concept. Most of the foreign countries try to utilize this factor by outsourcing their business in India with a very low capital. According to U.S., India is a “Knowledge pool” with cheap labour. The major advantage is our communication and technical skill which is adaptable to any environment. The cutting edge skill in IT of our professionals helps the outsourcing companies to commensurate with the needs of the consumers in a short span. The major competitors for India are China and Philippines and by the way of an effective communication and expert technical ability, Indians are ahead of the race. The major Metropolitan states are targeting the outsourcing field vigorously by giving various amenities to the outsourcing companies like tax concession, allotting land etc., to start their businesses in its cities without any hurdles. Thereby most of the MNCs prefer India as their destinations and capitalize the resources to maximize their assets. Infrastructure is another key factor for an outsourcing company to start a business in a particular city. It includes road, rail, ports, power and water. The increased input in infrastructure in India is very limited where China’s record is excellent. India in earlier days gave more importance to the development of industry and less importance to other departments. But the scenario has quite changed nowadays by allocating a special budget of funds for security. This is because of the frightening increase in terrorism all around the world especially emerging after the 9/11 terror attack in U.S. In the last ten years, budget towards the development of military forces is higher when compared to others. It shows that the threat from our neighbouring countries is escalating. India has to concentrate more on this security factor to wipe out the problem in the way of cross border terrorism. Making India, a developed country in 2020 is not an easy task. India has to keep in check a variety of factors in order to progress rapidly. To quote China as an example is that they demolished an old building to construct a very big port to meet future demands, but India is still waiting for things to happen. The profits gained by India through various sectors are to be spent for the development and welfare of the country. India’s vision for a brighter path will come true not only by mere words or speech, but extra effort needed at all levels to overcome the pitfalls.Which of the following, according to the author, is/are a result(s) of increased population in India ? (A) Pollution (B)Poverty (C) Unemployment...
MCQ-> Read the following passage carefully and answer the questions given below it. Certain words are given in bold to help you answer some of the questions.At the heart of what makes India a better regime than China is a healthy respect for the civil rights and liberties of its citizens. There are checks and balances in our government. But India’s new surveillance programme, the Central Monitoring system (CMS), resembles a dystopian society akin to George Orwell’s 1984.According to several news reports, the CMS gives the government, Indian security agencies and income tax (IT) officials the authority to listen to, and tape phone conversions, read emails and text messages, monitor Posts on Facebook, Twitter or Linkedin and track searches on Google of selected targets, without oversight by the courts or parliament. To call it sweeping is an understatement.Typically, Indian Security agencies need a court order for surveillance, or depend on Internet/telephone service providers for data, provided they supply a warrant. CMS allows the government to bypass the court.  Milind Deora, India’s Minister of State for Information Technology says the new system will actually improve citizens’ privacy because telecommunication agencies would no longer be directly involved in the surveillance; only government officials would have these details – missing the point that in a democracy, there has to be freedom from government surveillance. This is hardly comforting in a nation riddled with governmental corruption.India does not have a privacy law. CMS will operate under the Indian Telegraph Act (ITA). The ITA is a relic of the British Raj from 1885, and gives the government the freedom to monitor private conversations. News reports quote anonymous telecommunications ministry officials as saying that CMS has been introduced for security purposes, and “this is to protect you and your country”.That is irrational. For one, there are no ‘security purposes’ that prevent the government from having a rational debate on this programme and getting approval from our elected representatives before authorizing such wide-reaching surveillance. If the government is worried that a public debate in a paralysed parliament would half the programme’s progress, then it can convene a committee of individuals or an individual body such as CAG to oversee the programme. It can seek judicial approval from the Supreme Court, and have a judge sign off on surveillance requests without making these requests public.As of now, the top bureaucrat in the interior ministry and his/her state level deputies will have the power to approve surveillance requests. Even the recently revealed US surveillance Programme, had ‘behind the doors’ bipartisan surveillance approval. Furthermore, US investigation agencies such as the CIA and NSA are not the ruling party’s marionettes; in India, that the CBI is an arm of the government is a fait accompli. Even the Supreme Court recently lambasted the CBI and asked it to guarantee its independence from government influences after it was proved that it shared unreleased investigation reports with the government.There is no guarantee that this top bureaucrat will be judicious or not use this as a tool to pursue political and personal vendettas against opposition parties or open critics of the government. Security purposes hardly justify monitoring an individual’s social media usage. No terrorist announces plans to bomb a building on Facebook. Neither do Maoists espouse Twitter as their preferred form of communication.Presumably, security purposes could be defined as the government’s need to intercept terrorist plans. How does giving the IT department the same sweeping surveillance powers justify security purposes? The IT office already has expansive powers to conduct investigations, summon individuals or company executives, and raid premises to catch tax evaders. In a world where most financial details are discussed and transferred online, allowing the IT departments to snoop on these without any reasonable cause is akin to airport authorities strip searching everyone who boards a flight.What happened on 26/11 or what happens regularly in Naxal – affected areas is extremely sad and should ideally, never take place again. But targeting terrorists means targeting people who show such inclinations, or those who arouse suspicions, either by their travels or heir associations with militant or extremist groups. And in a country where a teenager has been arrested for posting an innocent comment questioning the need for a bandh on the death of a political leader, gives us reason to believe that this law is most likely to be misused, if not abused. Select the word which is MOST OPPOSITE in meaning to the word printed in bold, as used in the passage. AKIN...
MCQ-> Directions : Read the following passage carefully and answer the questions given below it. Following the end of the Second World War, the United Kingdom enjoyed a long period without a major recession (from 1945 - 1973) and a rapid growth in prosperity in the 1959s and 1960s. According to the OECD, the annual rate of growth (percentage change between 1960 and 1973 averaged 2.9%, although this figure was far behind the rates of other European countries such as France, West Germany and Italy. However, following the 1973 oil crisis and the 1973-1974 stock market crash, the British economy fell into recession and the government of Edward Heath was ousted by the Labour Party under Harold Wilson. Wilson formed a minority government on 4 March 1974 after the general election on 28 February ended in a hung parliament. Wilson subsequently secured a three seat majority in a second election in October that year. The UK recorded weaker growth than many other European nations in the 1970s; even after the early 1970s recession ended, the economy was still blighted by rising unemployment and double-digit inflation. In 1976, the UK was forced to request a loan of $ 2.3 billion from the International Monetary Fund. The then Chancellor of the Exchequer Denis Healey was required to implement public spending cuts and other economic reforms in order to secure the loan. Following the Winter of Discontent, the government of James Callaghan lost a vote of no confidence. This triggered the May 1979 general electron which resulted in Margaret Thatcher's Conservative Party forming a new government. A new period of neo-liberal economics began in 1979 with the election of Margaret Thatcher who won the general election on 3 May that year to return the Conservative Party to government after five years of Labour government. During the 1980s most state-owned enterprises were privatised, taxes cut and markets deregulated. GDP fell 5.9 % initially but growth subsequently returned and rose to 5% at its peak in 1988, one of the highest rates of any European nation. The UK economy had been one of the strongest economies in terms of inflation, interest rates and unemployment, all of which remained relatively low until the 2008-09 recession. Unemployment has since reached a peak of just under 2.5 million (7.8 %), the highest level since the early 1990s, although still far lower than some other European nations. However, interest rates have reduced to 0.5 % pa. During August 2008 the IMF warned that the UK economic outlook had worsened due to a twin shock : financial turmoil and rising commodity prices. Both developments harm the UK more than most developed countries, as the UK obtains revenue from exporting financial services while recording deficits in finished goods and commodities, including food. In 2007, the UK had the world's third largest current account deficit, due mainly to a large deficit in manufactured goods. During May 2008, the IMF advised the UK government to broaden the scope of fiscal policy to promote external balance. Although the UK's labour productivity per person employed¡¨ has been progressing well over the last two decades and has overtaken productivity in Germany, it still lags around 20% behind France, where workers have a 35 hour working week. the UK's labour productivity per hour worked is currently on a par with the average for the sold EU (15 countries). In 2010, the United Kingdom ranked 26th on the Human Development Index. The UK entered a recession in Q2 of 2008, according to the Office for National Statics and exited it in Q4 of 2009. The subsequently revised ONS figures show that the UK suffered six consecutive quarters of negative growth, making it the longest recession since records began. As of the end of Q4 2009, revised statistics from the Office for National Statistics demonstrate that the UK economy shrank by 7.2% from peak to trough. The Blue Book 2013 confirms that UK growth in Q2 of 2013 was 0.7 %, and that the volume of output of GDP remains 3.2% below its prerecession peak; The UK economy's recovery has thus been more lackluster than previously thought. Furthermore The Blue Book 2013 demonstrates that the UK experienced a deeper initial downturn than all of the G7 economies save for Japan, and has experienced a slower recovery than all but Italy. A report released by the Office of National Statistics on 14 May 2013 revealed that over the six-year period between 2005 and 2011, the UK dropped from 5th place to 12th place in terms of household income on an international scale ¡X the drop was partially attrib10 uted to the devaluation of sterling over this time frame. However, the report also concluded that, during this period, inflation was relatively less volatile, the UK labour market was more resilient in comparison to other recessions, and household spending and wealth in the UK remained relatively strong in comparison with other OECD countries. According to a report by Moody's Corporation, Britain's debt-to-GDP ratio continues to increase in 2013 and is expected to reach 93% at the end of the year. The UK has lost its triple. A credit rating on the basis of poor economic outlook. 2013 Economic Growth has surprised many Economists, Ministers and the OBR in the 2013 budget projected annual growth of just 0.6 %. In 2013 Q1 the economy grew by 0.4 % Q2 the economy grew by 0.7 % and Q3 the economy is predicted to have grown at 0.8%.A new period of neo-liberal economics began in United Kingdom with the election of Margaret Thatcher after five years of Labour government. Margaret Thatcher came in power in
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