RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.3

RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.3

These Solutions are part of RD Sharma Class 10 Solutions. Here we have given RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.3

Other Exercises

Question 1.
Express each of the following integers as a product of its prime factors :
(i) 420
(ii) 468
(iii) 945
(iv) 7325
Solution:
(i) 420
=2 x 2 x 3 x 5 x 7
= 22 x 3 x 5 x 7
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.3 1
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.3 2
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.3 3

Question 2.
Determine the prime factorization of each of the following positive integer :
(i) 20570
(ii) 58500
(iii) 45470971
Solution:
(i) 20570
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.3 4
20570 = 2 x 5 x 11 x 11 x 17 = 2 x 5 x 112 x 17
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.3 5

Question 3.
Explain why 7 x 11 x 13 + 13 and 7 x 6 x 5 x 4 x 3 x 2 x 1 + 5 are composite numbers ?
Solution:
We know that a composite number is that number which can be factorize. It has more factors other than itself and one
Now, 7 x 11 x 13 + 13 = 13 (7 x 11 + 1) = 13 x 78
Which is composite number
Similarly,
7 x 6 x 5 x 4 x 3 x 2 x 1 + 5 = 5(7 x 6 x 4 x 3 x 2 x 1 + 1)
= 5 x 1009
Which is a composite number
Hence proved

Question 4.
Check whether 6n can end with the digit 0 for any natural number n.
Solution:
No, 6n can’t end with the digit 0 as the number ending 0 can be factorise of the type
2n x 5m only but 6n = (2 x 3)n = 2n x 3n
Which does not has 5m as factors.

Question 5.
Explain why 3 x 5 x 7 + 7 is a composite number. [NCERT Exemplar]
Solution:
We have, 3 x 5 x 7 + 7 = 105 + 7 = 112
Now, 112 = 2 x 2 x 2 x 2 x 7 = 24 x 7
So, it is the product of prime factors 2 and 7. i.e., it has more than two factors.
Hence, it is a composite number.

Hope given RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.3 are helpful to complete your math homework.

If you have any doubts, please comment below. Learn Insta try to provide online math tutoring for you.

RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2

RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2

These Solutions are part of RD Sharma Class 10 Solutions. Here we have given RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2

Other Exercises

Question 1.
Define H.C.F. of two positive integers and find the H.C.F. of the following pairs of numbers.
(i) 32 and 54
(ii) 18 and 24
(iii) 70 and 30
(iv) 56 and 88
(v) 475 and 495
(vi) 75 and 243
(vii) 240 and 6552
(viii) 155 and 1385
(ix) 100 and 190
(x) 105 and 120
Solution:
Definition : The greatest among the common divisor of two or more integers is the Greatest Common Divisor (G.C.D.) or Highest Common Factor (H.C.F.) of the given integers.
(i) HC.F. of 32 and 54
Factors 32 = 1, 2, 4, 8, 16, 32
and factors of 54 = 1, 2, 3, 6, 9, 18, 27, 54
H.C.F. = 2
(ii) H.C.F. of 18 and 24
Factors of 18 = 1, 2, 3, 6, 9, 18
and factors of 24 = 1, 2, 3, 4, 6, 8, 12, 24
Highest common factor = 6
H.C.F. = 6
(iii) H.C.F. of 70 and 30
Factors of 70 = 1, 2, 5, 7, 10, 14, 35, 70
and factors of 30 = 1, 2, 3, 5, 6, 10, 15, 30
H.C.F. = 10
(iv) H.C.F. of 56 and 88
Factors of 56 = 1, 2, 4, 7, 8, 14, 28, 56
and factors of 88 = 1, 2, 4, 8, 11, 22, 44, 88
H.C.F. = 8
(v) H.C.F. of 475 and 495
Factors of 475 = 1, 5, 25, 19, 95, 475
and factors of 495 = 1, 3, 5, 9, 11, 15, 33, 45, 55, 99, 165, 495
H.C.F. = 5
(vi) H.C.F. of 75 and 243
Factors of 75 = 1, 3, 5, 15, 25, 75
Factors of 243 = 1, 3, 9, 27, 81, 243
H.C.F. = 3
(vii) H.C.F. of 240 and 6552
Factors of 240 = 1, 2, 3, 4, 5, 6, 8, 10, 12, 15, 16, 20, 24, 48, 60, 80, 120, 240
Factors of 6552 = 1, 2, 3, 4, 6, 7, 8, 9, 12, 13, 14, 18, 21, 24, 26, 28, 36, 39, 42, 52, 56, 63, 72, 91, 104, 117, 126, 156, 168, 182, 234,252, 273, 312, 364, 488, 504, 546, 728, 819, 936, 1092, 1638, 2184, 3276, 6552
H.C.F. = 24
(viii) H.C.F. of 155 and 1385
Factors of 155 = 1, 5, 31, 155
Factors of 1385 = 1, 5, 277, 1385
H.C.F. = 5
(ix) 100 and 190
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 1

Question 2.
Use Euclid’s division algorithm to find the H.C.F. of
(i) 135 and 225
(ii) 196 and 38220
(iii) 867 and 255
(iv) 184, 230 and 276
(v) 136,170 and 255
Solution:
(i) H.C.F. of 135 and 225
135 < 225
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 2
225 = 135 x 1 + 90
135 = 90 x 1 +45
45 = 45 x 2 + 0
Last remainder = 0
and last divisor = 45
H.C.F. = 45
(ii) H.C.F. of 196 and 38220
196 < 38220
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 3
38220 = 196 x 195 + 0
Last remainder = 0
and last divisor = 196
H.C.F. = 196
(iii) H.C.F. 867 and 255
255 < 867
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 4
867 = 255 x 3 + 102
255 = 102 x 2 + 51
102 = 51 x 2 + 0
Last remainder = 0
and last divisor = 51
H.C.F. = 51
(iv) H.C.F. of 184, 230 and 276
Let us find the highest common factor (H.C.F.) of 184 and 230
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 5
Hence, H.C.F. of 184 and 230 = 46
Now, find the H.C.F. of 276 and 46
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 6
Hence, H.C.F. of 276 and 46 = 46
Required H.C.F. of 184, 230 and 276 = 46
(v) H.C.F. of 136, 170 and 255
Let us find the highest common factor (H.C.F.) of 136 and 70
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 7
Hence, H.C.F. of 136 and 170 = 34
Now, find the H.C.F. of 34 and 255
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 8
Hence, highest common factor of 34 and 255 = 17
Required H.C.F. of 136, 170 and 255 = 17

Question 3.
Find the H.C.F. of the following pairs of integers and express it as a linear combinations of them.
(i) 963 and 657
(ii) 592 and 252
(iii) 506 and 1155
(iv) 1288 and 575
Solution:
(i) 963 and 657
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 9
(ii) HCF of 592 and 252
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 10
76x + 88y
Where x = 7, y = -6
(iii) 506 and 1155
H.C.F. = 11
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 11
(iv) 1288 and 575
H.C.F. = 23
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 12
= 575 x 9 + 1288 x (-4)
= ax + by
x = 9, y = -4

Question 4.
Find the largest number which divides 615 and 963 leaving remainder 6 in each case.
Solution:
The given numbers are 615 and 963
Remainder in each case = 6
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 13
615 – 6 = 609 and 963 – 6 = 957 are divisible by the required number which is the H.C.F. of 609 and 957 = 87
Hence the required largest number = 87

Question 5.
If the H.C.F. of 408 and 1032 is expressible in the form 1032m – 408 x 5, find m.
Solution:
408, 1032
H.C.F. = 24
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 14
Which is in the form of 1032m – 408 x 5 comparing, we get m = 2

Question 6.
If the H.C.F. of 657 and 963 is expressible in the form 657x + 963 x (-15), find x.
Solution:
657 and 963
H.C.F. = 9
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 15

Question 7.
An army contingent of 616 members is to march behind an army band of 32 members in a parade. The two groups are to march in the same number of columns. What is the maximum number of columns in which they can march ?
Solution:
The required number of columns will be the H.C.F. of 616 and 32
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 16
Using Euclid’s division
We get H.C.F. = 4
Number of columns = 4

Question 8.
A merchant has 120 litres of oil of one kind, 180 litres of another kind and 240 litres of third kind. He wants to sell the oil by filling the three kinds of oil in tins of equal capacity. What should be the greatest capacity of such a tin ?
Solution:
Quantity of oil of one kind =120l
and quantity of second kind = 180l
and third kind of oil = 240l
Maximum capacity of oil in each tin = H.C.F. of 120l, 180l and 240l
H.C.F. of 120 and 180 = 60
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 17

Question 9.
During a sale, colour pencils were being sold in packs of 24 each and crayons in packs of 32 each. If you want full packs of both and the same number of pencils and crayons, how many of each would you need to buy ?
Solution:
Number of pencils in each pack = 24
and number of crayons pack = 32
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 18
Highest number of pencils and crayons in packs will be = H.C.F. of 24 and 32 = 8
Number of pencil’s pack = \(\frac { 24 }{ 8 }\) = 3
and number of crayon’s pack = \(\frac { 32 }{ 8 }\) = 4

Question 10.
144 cartons of Coke Cans and 90 Cartons of Pepsi Cans, are to be stacked in a Canteen. If each stack is of the same height and is to contain cartons of the same drink what would be the greatest number of cartons each stack would have?
Solution:
Number of Coke Cans Cartons = 144
and number Pepsi Cartons = 90
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 19
Required greatest number of cartons of each = H.C.F. of 144 and 90 = 18

Question 11.
Find the greatest number which divides 285 and 1249 leaving remainders 9 and 7 respectively.
Solution:
The given numbers are 285 and 1249 Remainder are 9 and 7 respectively
285 – 9 = 276
and 1249 – 7 = 1242 are divisible by required number
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 20
Required number = H.C.F. of 276 and 1242
Now, H.C.F. of 276 and 1242 = 138
Required number = 138

Question 12.
Find the largest number which exactly divides 280 and 1245 leaving remainders 4 and 3, respectively.
Solution:
The given numbers are 280 and 1245 Remainder are 4 and 3 respectively
280 – 4 = 276 and 1245 – 3 = 1242 are divisible by a number
The required number = H.C.F. of 276 and 1242
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 21
H.C.F. of 276 and 1242 = 138
Hence required number =138

Question 13.
What is the largest number that divides 626, 3127 and 15628 and leaves remainders of 1, 2 and 3 respectively.
Solution:
Given numbers are 626, 3127 and 15628 and remainders are 1, 2 and 3 respectively
626 – 1 = 625
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 22
3127 – 2 = 3125 and 15628 – 3 = 15625 are divisible by a required greatest number
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 23
The greatest number will be the H.C.F. of 625, 3125 and 15625
H.C.F. of 625 and 3125 = 625
and H.C.F. of 625 and 15625 = 625
The required number = 625

Question 14.
Find the greatest numbers that will divide 445, 572 and 699 leaving remainders 4, 5 and 6 respectively.
Solution:
Given numbers are 445, 572 and 699
and remainders are 4, 5, 6 respectively
445 – 4 = 441
572 – 5 = 567
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 24
699 – 6 = 693 are exactly divisible by a certain number which is the H.C.F. of these numbers
H.C.F. of 441 and 567 = 63
and H.C.F. of 63 and 693 = 63
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 25
The required number = 63

Question 15.
Find the greatest number which divides 2011 and 2623 leaving remainders 9 and 5 respectively.
Solution:
The given numbers are 2011 are 2623 and remainders are 9 and 5 respectively
2011 – 9 = 2002 and 2623 – 5 = 2618 are divisible by a greatest number which is the H.C.F. of 2002 and 2618
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 26
H.C.F. = 2002 and 2618 = 154
The required number= 154

Question 16.
Using Euclid’s division algorithm, find the largest number that divides 1251, 9377 and 15628 leaving remainders 1, 2 and 3 respectively. [NCERT Exemplar]
Solution:
Since, 1,2 and 3 are the remainders of 1251, 9377 and 15628, respectively.
Thus, after subtracting these remainders from the numbers.
We have the numbers, 1251 – 1 = 1250, 9377 – 2 = 9375 and 15628 – 3 = 15625
which is divisible by the required number.
Now, required number = HCF of 1250, 9375 and 15625 [for the largest number]
By Euclid’s division algorithm,
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 27

Question 17.
Two brands of chocolates are available in packs of 24 and 15 respectively. If I need to buy an equal number of chocolates of both kinds, what is the least number of boxes of each kind I would need to buy ?
Solution:
Number of chocolates of first kind = 24 and of second kind = 15
Number of chocolates to be bought equally of both kinds = H.C.F. of 24 and 15
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 28
= 3 chocolates
Least number of boxes of first kind = \(\frac { 24 }{ 3 }\) = 8
and of second kind = \(\frac { 15 }{ 3 }\) = 5

Question 18.
A mason has to fit a bathroom with square marble tiles of the largest possible size. The size of the bathroom is 10 ft. by 8 ft. What would be the size in inches of the tile required that has to be cut and how many such tiles are required ?
Solution:
Size of bathroom = 10 ft. x 8 ft.
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 29
Largest size of tile = H.C.F. of 10 ft. and 8 ft. = 2 ft.
= 2 x 12 = 24 inches (1 ft. = 12 inches)

Question 19.
15 pastries and 12 biscuit packets have been donated for a school fete. These are to be packed in several smaller identical boxes with the same number of pastries and biscuit packets in each. How many biscuit packets and how many pastries will each box contain ?
Solution:
Number of pastries = 15
and number of biscuit packets =12
The number of pastries and pack of biscuits to be packed in smaller identical boxes
H.C.F. of 15 and 12
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 30
H.C.F. = 3
Each box will contain = \(\frac { 15 }{ 3 }\) pastries and \(\frac { 12 }{ 3 }\) pack of biscuits
= 5 pastries and 4 pack of biscuits

Question 20.
105 goats, 140 donkeys and 175 cows have to be taken across a river. There is only one boat which will have to make many trips in order to do so. The lazy boatman has his own conditions for transporting them. He insists that he will take the same number of animals in every trip and they have to be of the same kind. He will naturally like to take the largest possible number each time. Can you tell how many animals went in each trip ?
Solution:
The required number of animals will be the H.C.F. of 105 goats, 140 donkeys, 175 cows
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 31
H.C.F. of 175 and 140 = 35
and H.C.F. of 35 and 105 = 35
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 32
The required number of animals = 35

Question 21.
The length, breadth and height of a room are 8m 25 cm, 6 m 75 cm and 4 m 50 cm respectively. Determine the longest rod which can measure the three dimensions of the room exactly.
Solution:
Length = 8m 25 cm = 825 cm
Breadth = 6 m 75 cm = 675 cm
Height = 4 m 50 cm = 450 cm
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 33
The required measure will be the H.C.F. of these three dimensions
H.C.F. of 825 and 675 = 75
and H.C.F. of 75 and 450 = 75
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 34
The required length = 75 cm

Question 22.
Express the H.C.F. of 468 and 222 as 468x + 222y where x, y are integers in two different ways.
Solution:
468 and 222
H.C.F. = 6
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 35
6 = (222 – 24 x 9)
= 222 – (468 – 222 x 2) x 9
= 222 – 468 x 9 + 222 x 18
= 222 x 19 + 468 x (-9)
= 468 (9) + 222 x 19
Which is in the form of 468x + 222y
Similarly we can write it in the following form also
6 = 468 x 213 +222 x (-449)

Hope given RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.2 are helpful to complete your math homework.

If you have any doubts, please comment below. Learn Insta try to provide online math tutoring for you.

RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1

RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1

These Solutions are part of RD Sharma Class 10 Solutions. Here we have given RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1

Other Exercises

Question 1.
If a and b are two odd positive integers such that a > b, then prove that one of the two numbers \(\frac { a+b }{ 2 }\) and \(\frac { a-b }{ 2 }\) is odd and the other is even.
Solution:
a and b are two odd numbers such that a > b
Let a = 2n + 1, then b = 2n + 3
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1 1

Question 2.
Prove that the product of two consecutive positive integers is divisible by 2.
Solution:
Let n and n + 1 are two consecutive positive integer
We know that n is of the form n = 2q and n + 1 = 2q + 1
n (n + 1) = 2q (2q + 1) = 2 (2q2 + q)
Which is divisible by 2
If n = 2q + 1, then
n (n + 1) = (2q + 1) (2q + 2)
= (2q + 1) x 2(q + 1)
= 2(2q + 1)(q + 1)
Which is also divisible by 2
Hence the product of two consecutive positive integers is divisible by 2

Question 3.
Prove that the product of three consecutive positive integer is divisible by 6.
Solution:
Let n be the positive any integer Then
n(n + 1) (n + 2) = (n2 + n) (n + 2)
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1 2
Which is also divisible by 6
Hence the product of three consecutive positive integers is divisible by 6

Question 4.
For any positive integer n, prove that n3 – n is divisible by 6.
Solution:
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1 3
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1 4
Which is divisible by 6
Hence we can similarly, prove that n2 – n is divisible by 6 for any positive integer n.
Hence proved.

Question 5.
Prove that if a positive integer is of the form 6q + 5, then it is of the form 3q + 2 for some integer q, but not conversely.
Solution:
Let n = 6q + 5, where q is a positive integer
We know that any positive integer is of the form 3k or 3k + 1 or 3k + 2, 1
q = 3k or 3k + 1 or 3k + 2
If q = 3k, then n = 6q + 5
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1 5

Question 6.
Prove that the square of any positive integer of the form 5q + 1 is of the same form.
Solution:
Let a be any positive integer
Then a = 5m + 1
a2 = (5m + 1 )2 = 25m2 + 10m + 1
= 5 (5m2 + 2m) + 1
= 5q + 1 where q = 5m2 + 2m
Which is of the same form as given
Hence proved.

Question 7.
Prove that the square of any positive, integer is of the form 3m or, 3m + 1 but not of the form 3m + 2.
Solution:
Let a be any positive integer
Let it be in the form of 3m or 3m + 1
Let a = 3q, then
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1 6
Hence proved.

Question 8.
Prove that the square of any positive integer is of the form 4q or 4q + 1 for some integer q.
Solution:
Let a be the positive integer and
Let a = 4m
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1 7
Hence proved.

Question 9.
Prove that the square of any positive integer is of the form 5q, 5q + 1, 5q + 4 for some integer q.
Solution:
Let a be the positive integer, and
Let a = 5m, then
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1 8

Question 10.
Show that the square of an odd positive integer is of the form 8q + 1, for some integer q.
Solution:
Let n is any positive odd integer
Let n = 4p + 1, then
(4p + 1)2 = 16p2 + 8p + 1
n2 = 8p (2p + 1) + 1
= 8q + 1 where q = p(2p + 1)
Hence proved.

Question 11.
Show that any positive odd integer is of the form 6q + 1 or 6q + 3 or 6q + 5, where q is some integer.
Solution:
Let n be any positive odd integer and
let n = 6q + r
=> 6q + r, b = 6, and 0 ≤ r < 6
or r = 0, 1, 2, 3, 4, 5
If n = 6q = 2 x 3q
But it is not odd
When n = 6q + 1 which is odd
When n = 6q + 2 which is not odd = 2 (3q+ 1)
When n = 6q + 3 which is odd
When n = 6q + 4 = 2 (3q + 2) which is not odd
When n = 6q + 5, which is odd
Hence 6q + 1 or 6q + 3 or 6q + 5 are odd numbers.

Question 12.
Show that the square of any positive integer cannot be of the form 6m + 2 or 6m + 5 for any integer m. [NCERT Exemplar]
Solution:
Let a be an arbitrary positive integer, then by Euclid’s division algorithm, corresponding to the positive integers a and 6, there exist non-negative integers q and r such that
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1 9
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1 10
Hence, the square of any positive integer cannot be of the form 6m + 2 or 6m + 5 for any integer m.

Question 13.
Show that the cube of a positive integer is of the form 6q + r, where q is an integer and r = 0, 1, 2, 3, 4, 5. [NCERT Exemplar]
Solution:
Let a be an arbitrary positive integer. Then, by Euclid’s division algorithm, corresponding to the positive integers ‘a’ and 6, there exist non-negative integers q and r such that
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1 11
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1 12
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1 13
Hence, the cube of a positive integer of the form 6q + r, q is an integer and r = 0, 1, 2, 3, 4, 5 is also of the forms 6m, 6m + 1, 6m + 3, 6m + 3, 6m + 4 and 6m + 5 i.e., 6m + r.

Question 14.
Show that one and only one out of n, n + 4, n + 8, n + 12 and n + 16 is divisible by 5, where n is any positive integer.
[NCERT Exemplar]
Solution:
Given numbers are n, (n + 4), (n + 8), (n + 12) and (n + 16), where n is any positive integer.
Then, let n = 5q, 5q + 1, 5q + 2, 5q + 3, 5q + 4 for q ∈N [By Euclid’s algorithm]
Then, in each case if we put the different values of n in the given numbers. We definitely get one and only one of given numbers is divisible by 5.
Hence, one and only one out of n, n + 4, n + 8, n + 12 and n + 16 is divisible by 5.
Alternate Method
On dividing on n by 5, let q be the quotient and r be the remainder.
Then n = 5q + r, where 0 ≤ r < 5. n = 5q + r, where r = 0, 1, 2, 3, 4
=> n = 5q or 5q + 1 or 5q + 2 or 5q + 3 or 5q + 4
Case I: If n = 5q, then n is only divisible by 5. .
Case II: If n = 5q + 1, then n + 4 = 5q + 1 + 4 = 5q + 5 = 5(q + 1), which is only divisible by 5.
So, in this case, (n + 4) is divisible by 5.
Case III : If n = 5q + 3, then n + 2 = 5q + 3 + 12 = 5q + 15 = 5(q + 3), which is divisible by 5.
So, in this case (n + 12) is only divisible by 5.
Case IV : If n = 5q + 4, then n + 16 = 5q + 4 + 16 = 5q + 20 = 5(q + 4), which is divisible by 5.
So, in this case, (n + 16) is only divisible by 5.
Hence, one and only one out of n, n + 4, n + 8, n + 12 and n + 16 is divisible by 5, where n is any positive integer.

Question 15.
Show that the square of an odd positive integer can be of the form 6q + 1 or 6q + 3 for some integer ? [NCERT Exemplar]
Solution:
We know that any positive integer can be of the form 6m, 6m + 1, 6m + 2, 6m + 3, 6m + 4 or 6m + 5, for some integer m.
Thus, an odd positive integer can be of the form 6m + 1, 6m + 3, or 6m + 5 Thus we have:
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1 14
Thus, the square of an odd positive integer can be of the form 6q + 1 or 6q + 3.

Question 16.
A positive integer is of the form 3q + 1, q being a natural number. Can you write its square in any form other than 3m + 1, 3m or 3m + 2 for some integer m? Justify your answer.
Solution:
No, by Euclid’s Lemma, b = aq + r, 0 ≤ r < a
Here, b is any positive integer
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1 15

Question 17.
Show that the square of any positive integer cannot be of the form 3m + 2, where m is a natural number.
Solution:
By Euclid’s lemma, b = aq + r, 0 ≤ r ≤ a
Here, b is any positive integer,
a = 3, b = 3q + r for 0 ≤ r ≤ 2
So, any positive integer is of the form 3k, 3k + 1 or 3k + 2
RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1 16
Which is in the form of 3m + 1. Hence, square of any positive number cannot be of the form 3m + 2.

 

Hope given RD Sharma Class 10 Solutions Chapter 1 Real Numbers Ex 1.1 are helpful to complete your math homework.

If you have any doubts, please comment below. Learn Insta try to provide online math tutoring for you.

CA Foundation Business Economics Study Material Chapter 1 Nature and Scope of Business Economics – MCQs

CA Foundation Business Economics Study Material Chapter 1 Nature and Scope of Business Economics – MCQs

MULTIPLE CHOICE QUESTIONS

1. Economics is a science because
(a) Systematised study
(b) Scientific laws
(c) Has its own methodology
(d) All the above

2. Positive statements concern what is; normative statements concern—
(a) What was
(b) What is the normal situation
(c) What will be
(d) What ought to be

3. Which of the following statements are positive statements?
(i) India is overpopulated.
(ii) Agricultural income should be taxed.
(iii) Service-class people should be exempted from income tax
(vi) There is tremendous tax evasion in India.
(a) i and ii
(b) i and iii
(c) i and iv
(d) iii and iv

4. The central problems of an economy arises because of—
(a) Unlimited wants
(b) Scarce resources having alternative uses
(c) Limited wants and unlimited resources
(d) Both (a) and (b)

5. The central problems relating to allocation of resources are—
(a) What to produce?
(b) How to produce?
(c) For whom to produce?
(d) All the above.

6. The problem of ‘What to produce’ relates to—
(a) The distribution of produced goods and services
(b) The technique of production to produce good
(c) The distribution of income among factor owners
(d) None of these

7. Micro economics deals with—
(a) Inflation in the country
(b) The economic behaviour of an individual unit
(c) The per capita income
(d) The problems of poverty and unemployment in the country

8. The objective of macro-economics is to study about—
(a) Problems, principles and policies relating to full employment of available resources
(b) Problems, Principles and policies relating to optimum allocation of resources
(c) Growth of resources
(d) Both a and c

9. Micro economics covers the study of—
(i) Consumer’s behaviour
(ii) Producer’s equilibrium
(iii) Fiscal system of an economy
(iv) Factor pricing
(a) i and iii (b) ii and iv
(c) i, ii and iii (d) i, ii and iv

10. Macro-economics is also known as—
(i) Method of Lumping
(ii) Price Theory
(iii) General equilibrium analysis
(iv) Aggregative Economics
(a) i and ii only
(b) iii and iv only
(c) i, iii and iv only
(d) ii, iii and iv only

11. Which of the following is not correct?
(a) Micro and Macro economics are complementary to each other
(b) Every macro-economic problem requires micro-economic analysis for its proper understanding
(c) Micro-economic behaviour can be added-up to derive macro-economic behaviour.
(d) What is macro from the national angle is micro from world angle

12. A theory may contain all but one of the following—
(a) An unorganised collection of facts about the real world!
(b) A set of definitions of the terms used.
(c) A set of assumptions
(d) One or more hypotheses

13. Positive economics deals with—
(a) What is
(b) What ought to be
(c) Both ‘a’ ‘b’
(d) None of these

14. Micro economics does not cover—
(a) Consumer behaviour
(b) Factor Pricing
(c) General price level
(d) Product Pricing

15. Find the odd—
(a) Normative economics is concerned with welfare propositions.
(b) Normative economics is prescriptive in nature.
(c) Normative economics is regulatory in nature.
(d) Economic laws are hypothetical.

16. A mixed economy to solve its central problems relies on—
(a) Economic planning
(b) Price mechanism
(c) Price fixing
(d) Both ‘a’ and ‘b’

17. In a socialist economy, the basic force of economic activity is profit. This statement is—
(a) Correct
(b) Incorrect
(c) Partially correct
(d) None of these

18. The interference of the government is very limited in—
(a) Socialist economy
(b) Capitalist economy
(c) Mixed economy
(d) All the above.

19. Both private and public sectors exist side by side in—
(a) China
(b) U.S.A.
(c) India
(d) Russia

20. In a competitive economy, the uncrowned king is—
(a) Government
(b) Producer
(c) Consumer
(d) Seller

21. Wastes of competition are found in—
(a) Capitalist economy
(b) Socialist economy
(c) Mixed economy
(d) None of these

22. A dual system of pricing exists in—
(a) Capitalist economy
(b) Socialist economy
(c) Mixed economy
(d) None of these

23. One of the important features of capitalist economy is—
(a) Economic planning
(b) Price mechanism
(c) Economic equalities
(d) Social welfare

24. ‘A government deficit will reduce unemployment and cause an increase in prices.’ This statement is—
(a) Positive
(b) Normative
(c) Incomplete
(d) None of these

25. Positive economics remains strictly neutral towards ends. This means that—
(a) Positive economics study the facts as they are
(b) Positive economics is prescriptive in nature
(c) Positive economics is based on ethical, philosophical and religious beliefs
(d) Only (a) and (b)

26. “During the boom periods when aggregate demand, national income and prices are high, entrepreneurs tend to make high profits”. This statement shows—
(a) Effect of micro-economic variables on macro variables
(b) Effect of macro-economic variables on micro variables
(c) Inter-dependence of micro and macro-economics
(d) Both (b) and (c)

27. Social insurance, sickness benefits, old age pension, etc are some social benefits provided by—
(a) State in capitalist economy
(b) State in socialist economy
(c) State in mixed economy
(d) Both (b) and (c)

28. In a capitalistic economy what to produce depends on—
(a) governments is policy
(b) consumer’s preference
(c) profits of firm
(d) none of these

29. The economy in which the government allows freedom of action of all economic units is essentially—
(a) a socialist economy
(b) a mixed economy
(c) a capitalistic
(d) none of the these

30. Which of the following is not correct about capitalistic system—
(a) Too much of waste due to cut throat competition
(b) There is right of private property.
(c) Conditions are not favourable for equitable distribution of wealth.
(d) There is central planning authority.

31. Which of the following is not the feature of socialist economy ?
(a) Economic planning
(b) Social welfare
(c) Private ownership of productive resources
(d) Economic equalities

32. Micro economics is also known as—
(a) Price theory
(b) Slicing method
(c) Product theory
(d) Both (a) and (b)

33. Economics is an art as—
(a) it teaches us to do
(b) it provides practical solutions to various economic problems.
(c) it is practice of knowledge
(d) all the above

34. Study of the problem of poverty denotes that economics is—
(a) a science
(b) an art
(c) both a science and an art
(d) neither a science nor an art

35. Framing suitable policies to solve inequalities of income denotes that economics is—
(a) a science
(b) an art
(c) both a science and an art
(d) neither science nor an art

36. Study of unemployment problem and then framing suitable policies to reduce the extent of unemployment shows that economics is—
(i) Both a science and an art
(ii) Neither a science nor an art
(iii) Positive science
(iv) Normative science
(a) i and iii only
(b) ii and iv only
(c) i, iii and iv
(d) ii, iii and iv

37. _____ economics explains cause and effect relationship between economic phenomena
(a) Positive
(b) Normative
(c) Empirical
(d) Applied

38. Positive economics concerns .
(a) what should be
(b) what is
(c) both (a) and (b)
(d) what ought to be

39. Normative economics is in nature
(a) modern
(b) descriptive
(c) prescriptive
(d) none of the above

Q. 40 to Q. 43 are based on the following conversation
Ram : “Rise in prices of goods have made it difficult to make two ends meet”
Shy am : “Yes, the cost of cultivation too has increased very much”.
Raghu : “Government should take steps to curb the price rise and provide relief to common man”.
Bhola : “Yes, he government should deal strictly on hoarders and black marketers”.

40. In the above conversation whose statements shows positive aspect of Economics?
(a) Ram
(b) Shyam
(c) Both (a) and (b)
(d) Bhola

41. In the above conversation whose statements shows normative side of economics
(a) Shyam
(b) Raghu
(c) Bhola
(d) Both (b) and (c)

42. Shyam’s statement in the above conversation shows—
(a) What is
(b) What can be
(c) What ought to be
(d) What will be

43. Bhola’s statement in the above conversation shows—
(a) What is
(b) What should be the things
(c) What was
(d) None of the above

44. As compared to other economic systems, inequalities of incomes is relatively less in economic system
(a) Capitalist
(b) Socialist
(c) Mixed
(d) None of the above

45. Price-mechanism is an important feature of –
(i) Market economy
(ii) Regulated economy
(iii) Mixed economy
(iv) Capitalist economy
(a) i and ii only
(b) iii and iv only
(c) i and iii only
(d) i and iv only

46. Consumers and produces make their choices based on the market forces of demand and supply in—
(a) Socialist (Command) Economy
(b) Mixed Economy
(c) Capitalist Economy
(d) Closed Economy

47. The problem of what goods and services are produced and how much, is covered by the general term—
(a) resource allocation
(b) choice of technique of production
(c) distribution
(d) macro-economics

48. Business Economics is generally in nature.
(a) normative
(b) positive
(c) neutral
(d) descriptive

49. Capital intensive technique would be chosen in a
(a) labour surplus economy where the relative price of capital is lower
(b) capital surplus economy where the relative price of capital is lower
(c) developed economy where technology is better
(d) developing economy where technology is poor

50. Which of the following statement is incorrect?
(a) Business economics is a normative in nature
(b) Business economics is closely related with statistics
(c) Business economics only considers micro variables
(d) Business economics is also called Managerial economics

51. All of the following are within the scope of Business Economics except
(a) Capital Budgeting
(b) Risk Analysis
(c) Business Cycles
(d) Accounting Standards

52. Which of the following is considered as a disadvantage of allocating resources in a capitalist economy?
(a) Income will tend to be unevenly distributed
(b) People do not get goods of their choice
(c) Men of initiative and enterprise are not rewarded
(d) Profits will tend to be low

ANSWERS

ca-foundation-business-economics-study-material-chapter-1-nature-and-scope-of-business-economics-mcqs

CA Foundation Business & Commercial Knowledge Study Material – Foreign Direct Investment (FDI)

CA Foundation Business & Commercial Knowledge Study Material Chapter 4 Government Policies for Business – Foreign Direct Investment (FDI)

FOREIGN DIRECT INVESTMENT (FDI)

Meaning of FDI

Foreign Direct Investment means investment in a foreign country where the investor claims con¬trol over the investment in terms of actual power of management and effective decision-making. Foreign direct investment typically occurs in the form of setting up a subsidiary, starting a joint venture or acquiring a stake in an existing firm in a foreign country According to the Committee on Compilation of FDI in India (Oct 2002). FDI is “the process whereby residents of one country (the home country) acquire ownership of assets for the purpose of controlling the production, distribution and other activities of a firm in another country (the host country). There are three main categories of FDI-equity capital, reinvested earnings, and lending of funds by a multinational to its affiliate.

When the investor makes only investment and does not retain control over the enterprise it is known as portfolio investment. The investor is interested only in return on his capital and does not want control over the use of the invested capital. Portfolio investment is for a short period and is influenced by short-term gains. On the other hand, foreign direct investment involves long-term commitment and cannot be easily liquidated. Therefore, long-term considerations like political stability, Government policy, industrial prospects, etc. influence it. Direct investors have direct responsibility for the promotion and management of the enterprise. But portfolio investors have no direct responsibility for promotion and management of the enterprise. Portfolio investment takes place through foreign institutional investors (FIIs) like mutual funds and through American Depository Receipts (ADRs) Global Depository Receipts (GDRs) and Foreign Currency Convertible Bonds (FCCBs). ADRs, GDRs and FCCBs are securities issued by Indian companies in the foreign markets to mobilise foreign capital.

Advantages of Foreign Direct Investment

Foreign direct investment offers the following benefits:

  • FDI increases the level of investment by supplementing domestic capital. The host country gets scarce capital resources from abroad. As a result, FDI contributes towards the development of infrastructure, industry and service sector in the host country. FDI helps to enhance business activity and raise the level of economic development.
  • FDI facilitates transfer of technology, machinery and equipment to the host country. Advanced foreign technology helps to reduce costs and improve quality of products and services. Local firms get the opportunity for technology upgradation.
  • FDI can create a managerial revolution in the host country through professional man-agement and employment of sophisticated techniques of organisation and management. Local firms get access to world class management and corporate practices.
  • FDI helps to boost employment and incomes in the host country through establish¬ment of new industries and development of ancillary industries. Higher production and income in turn increase the tax revenue of the Government. Material and human resources can be utilised optimally.
  • FDI can help the host country to increase its exports and reduce imports These add to the foreign exchange resources of the country and improve its balance of payments position. In fact, the Government of India announced economic liberalisation in July, 1991 due to foreign exchange crisis.
  • FDI may help to increase competition and break domestic monopolies in the host
    country. It can overcome trade barriers like tariffs and quotas. FDI can make Indian industries globally competitive.
  • FDI offers benefits to the home country also. There is inflow of foreign currency in the form of dividend and interest. Exports of technology machinery and equipment help to enhance industrial activity and employment in the home country.
  • There is greater choice of products by consumers. Their standard of living is likely to improve due to better quality and wider choice.

Disadvantages of Foreign Direct Investment

Foreign direct investment has been criticised for the following reasons:

  • FDI tends to flow in the areas of high profits rather than in the priority sectors of the host country.
  • Considerable funds are repatriated from the host country in the form of royalty, fees, dividend, interest, etc. on FDI. Such outflows put pressure on the host country’s balance of payments. The cost of FDI is high.
  • FDI takes place mainly through multinational corporations. These corporations are large in size and have a wide resource base. They pose a threat to the domestic firms in the host country.
  • The technology brought in by the foreign investors may not be appropriate to the market size, resource base, stage of economic development and consumption needs of the host country. Excessive reliance on foreign technology may have an adverse effect on local initiative.
  • FDI poses a threat to the economic autonomy and political sovereignty of the host country. Some of the multinational corporations have destabilised governments in African countries. Excessive reliance on foreign technology may have an adverse effect on local initiative.
  • FDI can lead to adverse effects on domestic savings, and adverse terms of trade for the host country which offers special concessions to attract FDI, Some foreign investors pre-empt investment plans of domestic companies. They engage in unfair and unethical trade practices.
  • FDI may involve costs and risks for the home country. Employment opportunities may shrink and balance of payment position may suffer due to FDI.

Determinants of Foreign Direct Investment

The volume of FDI in a country depends on the following factors:

  1. Natural Resources – Availability of natural resources in the host country is a major determinant of FDI. Most foreign investors seek an adequate, reliable and economical source of minerals and other materials. FDI tends to flow in countries which are rich in resources but lack capital, technical skills and infrastructure required for the exploitation of natural resources. Though their relative importance has declined, the availability of natural resources still continues to be an important determinant of FDI.
  2. National Markets – The market size of a host country in absolute terms as well as in relation to the size and income of its population and market growth is another major determinant of FDI. Large markets can accommodate more firms and can help firms to achieve economies of large scale operations. Market access has been the main motive for investment by American companies in Europe and Asia.
  3. Availability of Cheap Labour – The availability of low cost unskilled labour has been a major cause of FDI in countries like China and India, Low cost labour together with availability of cheap raw materials enable foreign investors to minimise costs of production and thereby increase profits.
  4. Rate of Interest – Differences in the rate of interest prevailing in different countries stimulate foreign investment. Capital tends to move from a country with a low rate of interest to a country where it is higher. Foreign investment is also inspired by foreign exchange rates. Foreign capital is attracted to countries where the return on investment is higher.
  5. Socio-Economic Conditions – Size of the population, infrastructural facilities and income level of a country influence direct foreign investment.
  6. Political Situation – Political stability, legal framework, judicial system, relations with other countries and other political factors influence movements of capital from one country to another.
  7. Government Policies – Policy towards foreign investment, foreign collaborations, foreign exchange control, remittances, and incentives (monetary, fiscal and others) offered to foreign investors exercise a significant influence on FDI in a country. For example, Export Processing Zones have been developed in India to attract FDI and to boost exports.

CA Foundation Business & Commercial Knowledge Study Material – Meaning of Globalization

CA Foundation Business & Commercial Knowledge Study Material Chapter 4 Government Policies for Business – Meaning of Globalization

Meaning of Globalization

Globalization means reduction or removal of Government restrictions on the movement of goods and services, capital, technology and talent across national borders. It is the process of increasing economic interdependence between countries and their economic integration in the form of world economy. Markets become international and global firms consider the whole world as one market.

Globalization in India – Trends and Issues

The process of globalization of Indian economy began largely in 1991 due to the unprecedented balance of payments crisis. Since then the pace of globalization has gained momentum:

  • Foreign Direct Investment upto 100 per cent is now permitted in specified sectors.
  • Foreign investors can invest in Indian companies through GDRs without any lock-in period.
  • Indian companies are allowed to get themselves listed on overseas stock exchanges.
  • Guidelines for Euro issues were liberalised.
  • The Foreign Exchange Management Act (FEMA) has replaced the Foreign Exchange Regulations Act (FERA).

Impact of Globalization of Indian Economy

Globalization has made India a huge consumer market. There has been rapid increase in GDP and India’s exports. India has emerged as one of the fastest growing economies in the world. Our foreign exchange reserves are now huge and there has been rapid increase in foreign direct investment (FDI).

POSITIVE AND NEGATIVE EFFECTS OF GLOBALIZATION

Positive Effects

  • Expansion of market
  • Growth of independent money market
  • Free flow of resources
  • Advancements in technology
  • Equilibrium in balance of payments
  • Development of infrastructure
  • Fligher living standards
  • International cooperation

Negative Effects

  • Cut-throat competition
  • Rise in monopoly
  • Increase in inequalities
  • Takeover of domestic firms
  • Removal of protection to domestic firms
  • Affect on national sovereignty

CA Foundation Business & Commercial Knowledge Study Material – Meaning of Privatization

CA Foundation Business & Commercial Knowledge Study Material Chapter 4 Government Policies for Business – Meaning of Privatization

Meaning of Privatization

Privatization means the transfer of ownership and/or management of an enterprise from the public sector to the private sector. It refers to the introduction of private control and ownership in public sector undertakings. According to the World Bank, “privatization is the transfer of State owned enterprises to the private sector by sale (full or partial) of going concerns or by sale of assets following their liquidation.” In the words of Barbara Lee and John Nellis “Privatization is the general process of involving the private sector in the ownership or operation of a State owned enterprise,”

There are several forms or methods of privatization such as:

  • Denationalization of a public enterprise by its complete sale to the private sector. For example, BALCO. was sold to Sterlite Industries.
  • Divestiture, i.e., the sale of equity in full or part of a public sector undertaking to private sector.
  • Transfer of management of a public sector enterprise to private sector through a management contract.
  • Joint venture, i.e., joint ownership of an enterprise by Government and private sector.
  • Leasing, Le., transferring the use of assets of a public sector unit to private bidders for a specified period.
  • Franchising of public sector services to designated private sector units.

Trends And Issues – Privatization In India

The process of privatization began in India mainly after the Industrial Policy of July 1991. Under this policy the number of industries reserved for the public sector was reduced from 17 to 2 – Railways and Atomic Energy. Shares of several public sector enterprises have been sold to mutual funds, workers and the public.

Impact of Privatization on Indian Economy

The main reason for privatization in India has been the poor performance of public sector units which results in wastage of national resources and burden on common man.

POSITIVE AND NEGATIVE EFFECTS OF PRIVATIZATION

Positive Effects

  • Expansion of market
  • Growth of independent money market
  • Free flow of resources
  • Advancements in technology
  • Equilibrium in balance of payments
  • Development of infrastructure
  • Higher living standards
  • International cooperation

Negative Effects

  • Cut-throat competition
  • Rise in monopoly
  • Increase in inequalities
  • Takeover of domestic firms
  • Removal of protection to domestic firms
  • Affect on national sovereignty

 

CA Foundation Business & Commercial Knowledge Study Material – Meaning of Liberalization

CA Foundation Business & Commercial Knowledge Study Material Chapter 4 Government Policies for Business – Meaning of Liberalization

India faced foreign exchange crises in 1990. Government of India adopted the policy of Liberalization, Privatization and Globalization (LPG) to overcome the crisis. Government controls on business and industry have since then been dismantled gradually. The process further gained momentum in 2014. Since then rules and regulations have been simplified to increase the ease of doing business. Goods and Services Tax (GST) is the latest step in this process.

Meaning of Liberalization

Liberalization of an economy means removing or relaxing Government controls and restrictions on economic activities. It is the process of liberating the economy from unnecessary controls and restrictions on trade, industry, banking system, etc. of the country. It involves abolition of those policies, rules and regulations which impede economic development.

Liberalization in India – Trends and Issues

The process of economic liberalization in India began primarily in 1991. The economic reforms are being implemented in two stages, namely (i) First Generation Reforms, and (ii) Second Generation Reforms. The main trends of liberalization in India are as follows:

1. Infrastructural Reforms:

  • Opening up of oil exploration and petroleum to foreign investment.
  • Power sector reforms.
  • Private sector participation in infrastructure development.
  • Decontrol of steel.
  • Telecom sector reforms.

2. Industrial Reforms:

  • Delicensing of industry.
  • Public sector undertakings allowed access to capital market.
  • Simplification of licensing procedures.

3. Fiscal Reforms:

  • Reduction in customs duty.
  • Five year tax holiday to enterprises in specified sectors.
  • Downsizing of some departments.
  • Reduction in personal and corporate taxes.
  • Simplified tax administration.
  • Introduction of Value Added Tax (VAT).

4. Capital and Money Market Reforms:

  • Clearing Corporation of India set up.
  • Introduction of Negotiated Dealing System.
  • Floating rate Government bonds re-introduced.
  • Trading in index options, and stock futures introduced.

5. External Sector Reforms:

  • Removal of import restrictions.
  • Liberalised Exchange Rate Management System (LERMS)
  • Liberalisation of NRI remittances.
  • Encouraging foreign tie-ups.
  • Automatic approval of foreign investment and foreign technology agreements to specified extent.

6. Banking Sector Reforms:

  • Reduction in CRR and SLR.
  • Introduction of capital adequacy norms.
  • Setting up of Debt Recovery Tribunals.
  • Issue of guidelines for entry to new private banks.
  • Setting up of IRDA.

Impact of Liberalization of Indian Economy

Liberalization has considerably expanded the scope of private sector in India. Private enterprises can now enter most of the industries. The competitive strength and industrial efficiency have improved. Business opportunities have increased and many Indian companies have established subsidiaries and joint ventures abroad. Liberalisation has also boosted foreign investment in India. Thus, liberalisation has led to radical changes in India’s business environment.

POSITIVE AND NEGATIVE EFFECTS OF LIBERALIZATION IN INDIA

Positive Effects

  • Increase in foreign investment
  • Decline in external debt
  • Rise in foreign exchange reserves
  • Increase in tax receipts
  • Increase in production
  • Technological advancement

Negative Effects

  • Decline in small scale sector
  • Increase in unemployment
  • Decrease in GDP rate

CA Foundation Business & Commercial Knowledge Study Material Chapter 3 Business Organizations – Test Questions

CA Foundation Business & Commercial Knowledge Study Material Chapter 3 Business Organizations – Test Questions

1. Who is the Chairman of Asian Paints Ltd. ?
(a) KBS Anand
(b) Ashwin Choksi
(c) Chimanlal Choksi
(d) Champaklal Choksey

2. Axis Bank was founded in:
(a) 1991
(b) 1992
(c) 1993
(d) 1994

3. Who is the Chief Executive of Axis Bank ?
(a) Sanjiv Misra
(b) Jairam Sridharam
(c) Chanda Cochar
(d) Shikha Sharma

4. Bajaj Auto was founded at
(a) Mumbai
(b) Kolkata
(c) Pune
(d) Bengaluru

5. Who is the Chairman of Bajaj Auto
(a) Sanjiv Bajaj
(b) Rajiv Bajaj
(c) Jamnalal Bajaj
(d) Rahul Bajaj

6. In which year Bharti Airtel was founded ?
(a) 1991
(b) 1992
(c) 1994
(d) 1995

7. Who is the Chairman of Bharti Airtel ?
(a) Deepak Mittal
(b) Navin Mittal
(c) Sunil Mittal
(d) Anil Mittal

8. Cipla operates in which industry
(a) Food
(b) Pharma
(c) Hotels
(d) All the above

9. Dr. Reddy’s laboratories was set up in
(a) 1980
(b) 1983
(c) 1984
(d) 1989

10. HDFC Bank was set up in
(a) 1991
(b) 1992
(c) 1993
(d) 1994

11. Which is India’s largest private sector hank
(a) Axis Bank
(b) SBI
(c) ICICI Bank
(d) HDFC Bank

12. Which company was formed by seven engineers with a capital of ? 10000
(a) Asian Paints
(b) Bharti Airtel
(c) Infosys
(d) None of the above

13. ITC was originally named as:
(a) Imperial Tobacco company
(b) Indian Tobacco company
(c) Indian Tea company
(d) None of the above

14. Larsen & Toubro Ltd. was founded by
(a) Indians
(b) Americans
(c) Danish
(d) Europeans

15. Reliance Industries Ltd. was founded by
(a) Anil Ambani
(b) Mukesh Ambani
(c) Akash Ambani
(d) Dhirubhai Ambani

16. State Bank of India was originally known as
(a) Centurion Bank
(b) United Bank of India
(c) Imperial Bank
(d) None of the Above

17. Which is the largest Commercial bank of India
(a) SBI
(b) ICICI Bank
(c) HDFC Bank
(d) Axis Bank

18. Which Company is the holding company of 100 independent companies of the Tata Group ?
(a) Tata Sons Ltd.
(b) TCS Ltd.
(c) Tata Steel Ltd.
(d) Tata Motors Ltd.

19. Which of the following are conglomerates
(a) Tata Sons Ltd.
(b) L&T Ltd.
(c) Reliance Industries Ltd.
(d) All of these

20. Which information technology company began as an edible oil firm
(a) Infosys
(b) Microsoft
(c) IBM
(d) Wipro

21. Wipro was founded in:
(a) 1948
(b) 1958
(c) 1945
(d) 1968

22. Which banking company is known worldwide for its credit cards
(a) Axis Bank
(b) ICICI Bank
(c) HDFC Bank
(d) American Express

23. Which company was set up in a garage
(a) Infosys
(b) HP
(c) Nestle
(d) Microsoft

24. Apple’s main business is
(a) Fruits
(b) Computers
(c) Retailing
(d) None of the above

25. IBM Corporation was founded in
(a) 1895
(b) 1911
(c) 1921
(d) 1931

26. Which global firm has an Indian as its chief executive
(a) HP
(b) IBM
(c) Microsoft
(d) None of the above

27. Good Food, Good Life is the Slogan of which company
(a) Walmart
(b) Britannia
(c) Parle
(d) Nestle

28. Which company is world’s largest retailer
(a) Shoppers Stop
(b) Smart
(c) Spencer
(d) Walmart

CA Foundation Business & Commercial Knowledge Study Material – An overview of Selected Global Companies

CA Foundation Business & Commercial Knowledge Study Material Chapter 3 Business Organizations – An overview of Selected Global Companies

1. AMERICAN EXPRESS

ca-foundation-business-commercial-knowledge-study-material-overview-selected-global-companies-1

  • Year of Incorporation : 1850
  • Head office : New York, USA
  • Chairman and CEO : Kenneth I. Chenault
  • Website : www.americanexpress.com

History : American express was founded in 1850 as an express mail business.
Philosophy : Vision : To be a leading provider of payment solutions worldwide.
Mission : To leverage our local and global expertise to be a leading provider of payment solutions by delivering high quality, innovative and world class products and services, while maintaining the highest standards of governance and ethics.
Business portfolio : American Express operates in both card and non-card segments.
Operations : American Express has 2300 offices in 175 countries across the world. It has several subsidiaries and employs over 56000 people. Its revenue in 2015-16 was US $ 32.119 billion. American Express set up its first office in India in 1921 at Kolkata. Since then it has become the leading banking and travel related services. It is considered a pioneer in’off-shoring processes to captive centres in India.
Developments : In 2016, American Express was ranked the 25th most valuable brand in the World. In 2017 it was ranked as the 17th most admired company worldwide.

2. APPLE

ca-foundation-business-commercial-knowledge-study-material-overview-selected-global-companies-2

  • Year of Incorporation : 1976
  • Head office : California, USA
  • Chief Executive : Tim Cook
  • Website : www.apple.com

History: Steve Jobs, Steve Wozniak and Ronald Wayne founded Apple Computer Inc. in January 1977 to develop and sell personal computers. In January 2007 it was renamed as Apple Inc. to reflect its shifted focus towards consumer electronics.
Philosophy: Vision: To produce high quality, low cost, easy to use products that incorporate high technology for the individuals.
Mission: To bring the best personal computing experience to students, educators, creative professionals and consumers around the world through innovative hardware, software and internet offerings.
Business portfolio: Apple operates in Mac, iPad, iPhone, Watch, TV and Music segments. It operates the online Apple Store. Its iTunes store is the world’s largest online music retailer.
Operations: Apple is the world’s largest information technology multinational. It is the world’s second largest mobile phone manufacturer. It maintains 478 retail stores in 17 countries. It has more than 120,000 employees and its revenue in 2015-16 was US $ 215.369 billion.
Developments: In August 2014 Apple acquired Beats Electronics. It was ranked 8th among Forbes World’s Biggest Public Companies in 2016. It ranked 9th in Fortune 500 Global Companies same year.

3. HP

ca-foundation-business-commercial-knowledge-study-material-overview-selected-global-companies-3

  • Year of Incorporation : 1939
  • Head office : California, USA
  • Chairman : Dion Weisler
  • Chief Executive : Dion Weisler
  • Website : www.hp.com

History: William Redington Hewlett and David Packard founded HP in 1939 in a car garage in Palo Alto to produce electronic test equipment.
Philosophy: To create technology that makes life better for everyone, every where every person, every organization and every community around the globe.
Business portfolio: Major product lines of HP include personal computing devices, enterprise and industry services, related storage devices, networking products. Software, Printers imaging products. It sells to households as well as to-organizations.
Operations: HP is a global information technology company. It develops and sells a wide variety of hardware, software and related products.
Developments: In 2015 HP split its PC and printers business from enterprise products and services business. It resulted into two companies. HP Inc. and Hewlett Packard Enterprise.

4. IBM CORPORATION

ca-foundation-business-commercial-knowledge-study-material-overview-selected-global-companies-4

  • Year of Incorporation : 1911
  • Head office : New York, USA
  • Chairman : Ginni Rometty
  • Chief Executive : Ginni Rometty
  • Website : www.ibm.com

History: On June 16, 1911 four Companies were amalgamated to form the Computing Tabulating Recording Company. It was renamed International Business Machines in 1924. Later on the name was changed as IBM corporation.
Philosophy: Vision: To be the first and foremost on any new enterprise data centre migration short-list.
Mission: To be the leader in innovation, development and manufacture of the industry’s most advanced information technologies, including computer systems, software storage systems and micro-electronics.
Business portfolio: IBM operates in both products (analytics, cloud, commerce, Internet of things, security mobile, security, industry solutions, etc.,) and services business consulting, technology, financing, training etc.,/segments.
Operations: IBM is a global technology company with operations in more than 170 countries. It is a major research organization holding the record for most patents. It has more than 380000 employees and its revenue in 2015-16 was US $ 79.20 billion. It has a subsidiary IBM India Pvt. Ltd. in India since 1992.
Development: IBM acquired Lombard in 2009, Sanovi Technology in 2016 and Agile 3 Solutions and Ravy Technologies in 2017. It is ranked 82nd in Fortune 500 global companies.

5. MICROSOFT CORPORATION

ca-foundation-business-commercial-knowledge-study-material-overview-selected-global-companies-5

  • Year of Incorporation : 1911
  • Head office : Washington, USA
  • Chairman : John Thompson
  • Chief Executive : Satya Nadella
  • Website : www.microsoft.com

History: Paul Allen and Bill Gates founded Microsoft on April 4,1975. It entered OS business in 1980. It rose to dominate the personal computing with MS-DOS. Since 1990 it has diversified.
Philosophy: Vision: To help individuals and businesses realize their full potential.
Mission: To be a global organization by providing products/services of value for the target market.
Business portfolio: Software and services, devices and Xbox, business developers and IT, for students and educations are the major segments for which Microsoft has products.
Operations: Microsoft is a multinational technology company. It is best known for its software products like Windows, Office, Internet Explorers and Edge Web browsers. It is the largest software maker in the world. It has more than 115000 employees and its revenue in 2015-16 was US $ 85.32 billion. Microsoft Corporation of India was set up 1990. It has six major business units.
Developments: Microsoft acquired Skype Technologies in 2011, mobile hardware division of Nokia in 2014 and Linked in 2016.

6. NESTLE

ca-foundation-business-commercial-knowledge-study-material-overview-selected-global-companies-6

  • Year of Incorporation : 1866
  • Head office : Vevey, Switzerland
  • Chairman : Peter Brabeck Letmathe
  • Chief Executive : Mark Schneider
  • Website : www.nestle.com

History: Henri Nestle founded Angloswiss Condensed Milk Company in 1866. In 1879, it merged with milk chocolate inventor Daniel Peter. In 1905 the company was renamed Nestle. It entered India in 1923.
Philosophy: To provide consumers with the best tasting, most nutritious choices in a wide range of food and beverage categories and eating occasions from morning to night.
Business portfolio: Nestle has popular brands in bottled water, cereals, health, skincare, pet care, coffee, etc.
Operations: Nestle is a global food and drink company. It is the world’s largest food, nutrition, health and wellness company. It has 2000 plus brands across the globe. It operates 418 plants in 86 countries. Its products are available in 191 countries. It employs 3,35,000 people and its revenue was 89.8 billion Swiss Frank in 2015-16.
Developments: Nestle acquired San Pellegrino, Spillers Pet Foods, Ralston Purina, Chief America, Delta Ice cream, Hsu Fachi, Vitablo and Prometheus Laboratories. It ranked 66th in Fortune 500 and 33rd in Forbes 2000 companies in 2016. It has joint ventures with General Mills, Coca Cola Company, Lactalis and Colgat Palmolive.

7. WALMART

ca-foundation-business-commercial-knowledge-study-material-overview-selected-global-companies-7

  • Year of Incorporation : 1962
  • Head office : Arkansas, USA
  • Chairman : Greg Penner
  • Chief Executive : Dough Mcmillion
  • Website : www.walmartstores.com

History: Sam Walton founded Walmart in 1962. It was incorporated on October 31, 1969.
Philosophy: Vision: To be the best retailer in the hearts and minds of consumers and employees.
Mission: Saving people money so that they can live better, Tagline: Save money Live better.
Business portfolio: Walmart sells a wide range of products such as groceries, foods, fruits and vegetables, personal and house care, clothing’s, office supplies and general merchandise. It is organized into four divisions.
Operations: Walmart is a multinational that operates a chain of hyper markets, discount stores, grocery stores and online stores. It is world’s largest retailer. It has 11695 stores in 28 countries. It has more than 23,00,000 employees and its revenue was $ 485.87 billion in 2015-16. Walmart India has 21 stores which sell 5000 items in 9 States. It launched B2B e-commerce platform on July 1,2014.
Developments: Walmart acquired Moose Jaw and Bonobos, and jet.com. It is number 1 company in Fortune 500 list and was ranked 15th on Forbes Global list 2000.

CA Foundation Business & Commercial Knowledge Study Material – Overview of Indian Companies

CA Foundation Business & Commercial Knowledge Study Material Chapter 3 Business Organizations – Overview of Indian Companies

Students of chartered accountancy course, Management, company secretary course, commerce and other similar courses are expected to be familiar with developments in the corporate sector. They can keep in touch with these developments from financial newspapers (Economic Times, Financial Express, Mint, etc.), journals (Business Today, Business India, Business week, etc.), Business channels on television (Zee Business, CNBC, etc.) and websites of companies.
The Overview of selected Indian and Global Companies is given in this chapter to familiarize the students with the corporate sector. Students can get more information by visiting the websites of the companies.

Overview of Indian Companies

1. ASIAN PAINTS LIMITED

ca-foundation-business-commercial-knowledge-study-material-overview-of-indian-companies-1

  • Year of Incorporation: 1942
  • Head office Chairman: Mumbai, India
  • Chief: Ashwin Choksi
  • Executive Officer (CEO): KBS Anand
  • Website: www.asianpaints.com

History: Four friends – Champaklal H Choksev, Chimanlal Choksi, Surya Kant C, Dani and Arvind R. Vakil set up a partnership firm to manufacture and sell paints in 1942. The firm was later on converted into a company. Asian paints has been a market leader in paints since 1967.
Philosophy: The aim of Asian paints is to become one of the top five decorative coatings companies in the world through its expertise in the emerging markets having high growth. It also seeks to build value in industrial coatings through alliances with global partners.
Business portfolio: Asian paints produces and sells wide range of paints for domestic, office .and industrial use. It operates in all the four segments (interior wall finishes, exterior wall finishes, enamels and wood finishes) in decoration paints
Operations: Asian Paints has 26 factories in 19 countries and serves consumers in more than 65 countries. It is India’s largest and Asia’s fourth largest paint company. Its main competitors are Kansai Nerolac Paints, Berger Paints (India) Ltd. & Jenson & Nicholson (India) Ltd. and Shalimar Paints Ltd. The Company employs more them 6000 people and its revenue in 2015-16 was Rs. 15,852 crore.
Developments: In August 2013, Asian Paints acquired 51 % stake in sleek group, a provider of kitchen solutions. In June 2014, the company acquired Ess Ess Bathroom Products Pvt. Ltd. Asian Paints is the winner of “Golden Peacock Award” in paints industry. In 2016 it was ranked 20th best Indian brand. Forbes listed it as the most innovative company in 2016.

2. AXIS BANK LIMITED

ca-foundation-business-commercial-knowledge-study-material-overview-of-indian-companies-2

  • Year of Incorporation: 1993
  • Head Office: Mumbai, India
  • Chairman: Sanjiv Misra
  • Chief Executive: Shikha Sharma
  • Website: www.axisbank.com

History: Unit Trust of India (UTI), Life Insurance Corporation of India (LIC) and public sector general insurance companies jointly set up the Axis Bank in 1993. It began operations as the first new generation private sector Bank in 1994.
Philosophy: Vision: To be the preferred financial solutions provider excelling in customer service through empowered employees and smart use of technology.
Core values: Customer centricity, ethics, transparency, team work and ownership.
Business portfolio: Axis Bank operates in retail banking, corporate banking and international banking segments. It has ten wholly owned subsidiaries.
Operations: Axis Bank is the third largest private sector bank in India. It has 3120 branches and 12922 ATMs in India. It employs more than 50000 people. The Bank provides the entire range of financial services to individuals and business enterprises. It has nine foreign offices. During 2015-16, it had revenues of 50,360 crores.
Developments: Asia money ranked Axis Bank the best domestic bank in 2015. In the same year the Economic Times ranked it No. 1 promising banking brand. In 2017 Axis Bank has been adjudged runner up in best payments initiative by the IBA Banking Technology Awards.

3. BAJAJ AUTO LIMITED 

ca-foundation-business-commercial-knowledge-study-material-overview-of-indian-companies-3

  • Year of Incorporation: 1945
  • Head Office: Pune, India
  • Chairman: Rahul Bajaj
  • Chief Executive: Rajiv Bajaj
  • Website: www.bajajauto.com

History: Jamnalal Bajaj set up Bajaj Auto in 1945. It obtained a licence in 1959 to manufacture two wheelers and three wheelers. It became a public limited company in 1961.
Philosophy: Vision: To become a world class vehicle company through value added products for customers
Mission:

  • focus on value based manufacturing
  • continuous improvement
  • total elimination of waste
  • pollution free and safe environment

Operations: Bajaj Auto operates in three segments – motor cycles, three wheelers and low cost cars. It is one of the world’s top manufacturers of motorcycles. It is the world’s largest three wheelers manufacturer. It operates in 50 countries and is India’s largest exporter of motor cycles and three wheelers. It employs 9000 people and clocked revenue of ? 22967 crores in 2015-16. Bajaj Auto entered into global alliance with Triumph Motorcycles of UK in August 2017.

4. BHARTI AIRTEL LIMITED

ca-foundation-business-commercial-knowledge-study-material-overview-of-indian-companies-4

  • Year of Incorporation : 1995
  • Head office : New Delhi, India
  • Chairman : Sunil Mittal
  • Chief Executive: Gopal Vittal
  • Website: www.airtel.com

History: Sunil Mittal launched Bharti Cellular Ltd. in Delhi 1995 to offer telecom services under the brand name Airtel. It became the first telecom company in India to achieve 2 million mobile subscribers.
Philosophy: Vision: To enrich the lives of customers
Mission: To win customers for life by providing exceptional experience.
Business portfolio: Bharti Airtel operates in all segments – Telemediary digital TV, enterprise solutions, Mobile data services.
Operations: Bharti Airtel is a leading telecommunications company in the world. It operates is 20 countries across Asia and Africa. It is the largest mobile network operator in India and the third largest in the world. It has 400 million subscribes. It employs 25400 people and had revenues of Rs. 966.021 million in 2015-16.
Developments: Bharti Airtel launched its 4G service in Africa in 2015. It also entered into strategic alliance with China Mobile. It acquired Telenor India and 4G business of Trikona Networks. In 2017 Bharti Airtel and millicom combined their operations in Ghana.

5. CIPLA LIMITED

ca-foundation-business-commercial-knowledge-study-material-overview-of-indian-companies-5

  • Year of Incorporation : 1935
  • Head office : Mumbai, India
  • Chairman : Y.K. Hamied
  • Chief Executive : Umang Vohra
  • Website : www.cipla.com

History: Khwaja Abdul Hamid founded the Chemical Industrial and Pharmaceutical Laboratories in 1935. The company’s name was changed to Cipla Ltd. in 1984. USFDA approved its bulk drug manufacturing facilities in 1985.
Philosophy: Vision: To be the first global biotech company to provide high quality products at affordable prices that will enable access for millions of patients worldwide by 2015.
Mission: To be a leading health care company which uses technology and innovation to meet everyday needs of all the patients.
Business portfolio: Cipla manufactures more than 200 generic ingredients and about 1300 pharma and personal care products.
Operations: Cipla has 1500 products in more than 60 therapeutic categories. It offers prescription drugs for all kinds of ailments. It sells in more than 150 countries and maintains highest quality standards. It has more than 22000 employees and earned revenue of Rs. 11,965 crores is 2015-16.
Developments: Cipla acquired 75% stake in Mabhuru Private Limited. In 2012 it received the Thompson Reuters India Innovation Awards.

6. DR. REDDY’S LABORATORIES LIMITED

ca-foundation-business-commercial-knowledge-study-material-overview-of-indian-companies-6

  • Year of Incorporation: 1984
  • Head office: Hyderabad, India
  • Chairman: Kallam Satish Reddy
  • Chief Executive: G.V. Prasad
  • Website: www.drreddys.com

History: In 1984 Dr. Reddy’s started producing Active Pharmaceutical Ingredients (APIs). In 1986 it began producing branded formulations. The company launched Violet brand in 1987. It transformed itself from a supplier of pharmaceutical ingredients into a manufacturer of pharmaceutical products.
Philosophy:

  • To bring expensive medicines within reach
  • To address unmet needs of patients
  • To help patients manage disease better
  • To work with patients to help them succeed.

Business portfolio: Dr. Reddy’s produces both generic and over the counter drugs. In the generic segment, its products include tablets, capsules, injectables and topical creams. In the over-the-counter segment, there are pain relievers, dermatology, allergy and gynaecology medicines.
Operations: Dr. Reddy’s produces and sells a wide range of products (more than 190 medications and 60 APIs. It is an Indian multinational in pharmaceutical industry. In 1999 it acquired American Remedies Ltd. It has more than 20,400 employees and its turnover in 2015-16 was Rs. 15,698 crores.
Developments: Dr. Reddy’s was listed among India’s most trusted brand in 2014.

7. HDFC BANK LIMITED

ca-foundation-business-commercial-knowledge-study-material-overview-of-indian-companies-7

  • Year of Incorporation: 1994
  • Head Office: Mumbai, India
  • Chairman: Deepak S. Parekh
  • Chief Executive: Aditya Puri
  • Website: www.hdfcbank.com

History: HDFC Bank was incorporated in 1994 as a private sector bank. .
Philosophy: To be a world class Indian bank. Its core values are customer focus, operational excellence, product leadership, people and sustainability.
Business portfolio: HDFC BANK operates in both retail and wholesale segments. It is a part of the HDFC group.
Operations: HDFC BANK has more than 90500 employees. Its revenue in 2015-16 was Rs. 74373 crores.
Developments: In 2000, it acquired the Times Bank. It took over the Centurion Bank in 2008. HDFC Bank was awarded the Best performing Bank in microfinance among private sector banks in 2016.

8. ICICI BANK LIMITED

ca-foundation-business-commercial-knowledge-study-material-overview-of-indian-companies-8

  • Year of Incorporation: 1994
  • Head office: Mumbai, India
  • Chairman: M.K. Sharma
  • Chief Executive: Chanda Kochhar
  • Website: www.icicibank.com

History: Originally, ICICI Limited set up the ICICI Bank as a wholly-owned subsidiary. Later on, the shareholding was reduced through public offer of shares.
Philosophy: Vision: To be the leading provider of financial services in India and a major global bank.
Mission:

  • To be the banker of first choice for our customers by providing high quality, world class services.
  • To expand our business globally.
  • To maintain a healthy financial profile and diversify our business.
  • To maintain high standards of governance and ethics.
  • To create value for our stakeholders.
  • To contribute to the countries and markets in which we operate.

Business Portfolio: ICICI Bank has all types of banking products and services.
Operations: ICICI Bank is the largest private sector bank with a network of 4850 branches and 13582 ATMs across India. It has branches in several countries abroad. It has more than 75000 employees and in 2015-16 its revenue was US $ 10.3 billion.
Developments: ICICI Bank acquired the Bank of Rajasthan in 2010. It was ranked first among private sector banks in 2016.

9. INFOSYS LIMITED

ca-foundation-business-commercial-knowledge-study-material-overview-of-indian-companies-9

  • Year of Incorporation: 1981
  • Head Office: Bengaluru, India
  • Chairman: Nandan Nilekani
  • Chief Executive: S.S. Parekh

History: N.R. Narayan Murthy and six other software engineers founded Infosys Consultants Pvt. Ltd. in 1981 with a capital of Rs. 10,000 in Pune. In 1983 the company’s head office was shifted to Bengaluru. In April 1992 its name was changed to Infosys Technologies Pvt. Ltd. In June 1992 it became a public company and was renamed Infosys Technologies Limited. In June 2011, its name was changed to Infosys Limited.
Philosophy Vision: To be a globally respected corporation that provides best of breed business solutions, delivered by best in class people leveraging technology.
Mission: To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients, employees, venders and society at large.
Business Portfolio: They key products of Infosys are:

  1. Mana-Knowledge based AI platform
  2. Infosys Information Platform (IIP)
  3. Finacle-Global banking platform
  4. Edge Venue Systems
  5. Panaya Cloud Suite
  6. Skava

The company provides software development, maintenance and independent validation services.
Operations: Infosys is a multinational corporation that provides business consulting, information technology and outsourcing services. It is a global leader in technology and consulting services. It has 85 marketing officers and 114 development centres in 50 countries. Its employees are more than 2 lakhs and its revenue in 2015-16 was US $ 10.21 billion.
Developments: Infosys took over Noah-consulting of USA in November 2015. In March 2015 it acquired Panaya Inc and Skava in June 2015

10. ITC LIMITED

ca-foundation-business-commercial-knowledge-study-material-overview-of-indian-companies-10

  • Year of Incorporation: 1910
  • Head Office: Kolkata, India
  • Chairman: Y.C. Deveshwar
  • Chief Executive: Sanjiv Puri
  • Website: www.itcportal.com

History: In 1910 Imperial Tobacco Company of India Private Limited was set up. It was converted into a public limited company in 1954. In 1970 its name was changed into Indian Tobacco Company Limited which was renamed as ITC Limited in 1974.
Philosophy: Vision: To sustain ITC’s position as one of India’s most valuable corporations through world class performance, creating great value for the Indian economy and company’s stakeholders.
Mission: To enhance the wealth generating capability of the enterprise in a global environment, to deliver superior and sustainable stakeholder value.
Core values: Trusteeship, customer focus, respect for people, excellence and innovation.
Business portfolio:

  • Tobacco products
  • Hotels
  • paper boards and packaging
  • fast moving consumer goods
  • Agribusiness
  • Information technology

Operations: ITC Ltd. is an Indian conglomerate. It is rated among the world’s best companies. Forbes Magazine rated it as world’s most reputed company. It was rated India’s most admired company” by fortune magazine. ITC is among fastest growing fast moving consumer goods companies in India. It has more than 32000 employees and its revenue in 2015-16 was Rs. 53748 crores.
Developments: ITC has been recognised for its e-choupal initiative, corporate Social Responsibility, corporate governance and most trusted brands.

11. LARSEN & TOUBRO LTD

ca-foundation-business-commercial-knowledge-study-material-overview-of-indian-companies-11

  • Year of Incorporation: 1938
  • Head office: Mumbai, India
  • Chairman: A.M. Naik
  • Chief Executive: A.M. Naik
  • Website: www.larsentoubro.com

History: Two Danish engineers taking refuse in India founded L&T in 1938.
Philosophy: To be a professionally managed Indian multinational, committed to total customer satisfaction and to enhance shareholder value.
Business Portfolio: L&T is a highly diversified global company. It has more than ten segments such as construction, heavy engineering, power, technology, etc.
Operations: L&T has 130 subsidiaries and 15 associate companies. It has manufacturing facilities in more than 8 countries and customers in 30 counties across the world. It has more than 1,10,000 employees and its revenue in 2015-16 was Rs. 1,02,632 crores.
Developments: Forbes ranked L&T among the world’s 2000 largest and most powerful companies. It has been awarded for leadership, quality and governance. Harvard Business Review named A.M. Naik as 32nd best performing CEO in the world.

12. RELIANCE INDUSTRIES LIMITED

ca-foundation-business-commercial-knowledge-study-material-overview-of-indian-companies-12

  • Year of Incorporation: 1966
  • Head Office: Mumbai, India
  • Chairman: Mukesh Ambani
  • Chief Executive: Mukesh Ambani
  • Website: www.ril.com

History: Dhirubhai Hirachand Ambani founded Reliance Commercial Corporation in 1961. In 1966, Reliance Textiles Industries Private Limited was incorporated. In 1975 it became a public Limited company. In 1985 Reliance Textile Industries Ltd. was renamed Reliance Industries Ltd. (RIL)
Philosophy: Vision: To touch the lives of people in a positive way through inclusive growth.
Mission: To grow as a responsible organisation that believes in enriching the lives of those around it.
Business Portfolio: Textiles, petrochemicals, petroleum, life sciences, telecommunications, mass media, retail.
Operations: RIL is a conglomerate and India’s largest private sector company. It has more than 24,000 employees and more than 30 lakhs shareholders. Its revenue in 2015-16 was Rs. 2960 billion.
Developments: RIL acquired TV 18 Broadcast in May 2014. It was ranked 215th in the Fortune Global 500 corporations in 2016. Forbes ranked it 121st in the world’s largest corporations. Platts ranked it 8th among the top 250 global energy companies. In 2017, RIL launched its JIO telecommunications service.

13. STATE BANK OF INDIA

ca-foundation-business-commercial-knowledge-study-material-overview-of-indian-companies-13

  • Year of Incorporation: 1806
  • Head Office: Mumbai, India
  • Chairman: Rajnish Kumar
  • Chief Executive: Rajnish Kumar
  • Website: www.sbi.in

History: In 1806 the Imperial Bank of India was founded in Kolkatta. In 1955 it was renamed State
Philosophy: Vision: My SBI, My customer first, My SBI: First in customer satisfaction
Mission: We will be:

  • Pompt, polite and proactive with our customers
  • Speak the language of young India
  • Create products and services that help our customers achieve their goals
  • Go beyond the call of duty to make our customers feel valued
  • Be of service even in the remotest part of our country
  • Offer excellence in services to those abroad as much as we do to those in India
  • Imbibe state of the art technology to drive excellence.
  • Business portfolio: SBI operates in personal banking, NRI services agriculture, corporate banking, small and medium enterprises, government business and interest rate services.

Operations: SBI is the largest commercial bank. It is a multinational banking and financial services company with majority membership with the Government of India. SBI has 14 regional hubs, 57 Zonal offices, 14000 branches and 58500 ATM all across the country. In addition, it has 191 foreign offices spread across 36 countries. It has more than 2,22,000 employees and its revenue in 2015-16 was Rs. 273460 crores.
Developments: On April 1, 2017, five associate banks merged into SBI. In 2013, SBI was ranked 50th most trusted brand in India. It was listed 232nd among fortune 500 global corporations. Forbes ranked SBI 29th most reputed company in the world in 2009.

14. TATA SONS LIMITED

ca-foundation-business-commercial-knowledge-study-material-overview-of-indian-companies-14

  • Year of Incorporation: 1868
  • Head Office: Mumbai, India
  • Chairman: Natrajan Chandra Sekran
  • Chief Executive: N. Chandrasekaran
  • Website: www.tata.com

History: Tata Sons Ltd.
Philosophy: Values: Integrity, excellence, unity and responsibility
Mission: To improve the quality of life of the communities we serve globally through long-term stakeholder value creations based on leadership with trust.
Business portfolio: Tata Sons Ltd. is the holding company of 29 publicly listed companies in the Tata group. The group operates in steel, vehicles, defence, aerospace, realty and infrastructure, consumer and retail, financial services, hotels, airlines, telecommunications, information technology, etc.
Operations: Tata Sons is India’s biggest conglomerate. It is a global giant comprising more than 100 companies. It operates in more than 100 countries across six continents.
Developments: Tata Steel acquired Corns of UK in 2007, Tata Motors took over Jaguar and Landrover brands. Tata Chemicals acquired British Salt in 2010. Tata Power acquired Welspun Renewables Energy in 2016 and Energy Projects Limited in 2014. Tata Sons has decided to convert itself into a private company on 20th September 2017.

15. WIPRO LIMITED

ca-foundation-business-commercial-knowledge-study-material-overview-of-indian-companies-15

  • Year of Incorporation: 1945
  • Head Office: Bengaluru, India
  • Chairman: Azim Premji
  • Chief Executive: Abidali Neemuchwala
  • Website: www.wipro.com

History: Mahamed Premji founded Western India Palm Refined Oil Limited on December 29, 1945 in Jalgaon, Maharashtra. Later on the company was renamed Wipro Products Limited in 1980. Wipro entered information technology sector and its name was changed in 1982 into Wipro Limited.
Philosophy: Vision: To be among the Top 10 global IT and BPO services company.
Mission: To create a new kind of professional services firm that works with both business and IT executives to innovate and deliver, end-to-end solutions that create reasonable value for own clients.
Business portfolio: Analytics, digital cloud, application, business process consulting, enterprise architecture, eco-energy, information management infrastructure, internet of things, mobility, open source and product engineering.
Operations: Wipro Ltd. is a global IT, Consulting and outsourcing company with clients in more than 175 cities across 6 continents. It has more than 55 centres of excellence to harness the latest technology. Wipro is recognised for its innovative approach all over the world. The company has strong commitment to value creation and sustainability. It has more than 1,75,000 employees and its revenue in 2015-16 was US $ 7.7 billion.
Developments: Wipro was ranked number one in sustainability in 2010. It was ranked 155th in Forbes Global list of 2010 companies in 2016. It was recognised as one of the world’s most ethical companies six times.

INDIA’S TOP BUSINESS GROUPS

Business Group Current Mcap ($ bn.) Current Mcap (₹ cr.) Year Ago (₹ cr.) % Cng
Tata 133.80 8,56,572 8,71,431 1.71
Reliance 83.70 5,35,825 3,55,863 50.57
Aditya Birla 53.77 3,44,220 2,51,326 36.96
Bajaj 49.57 3,17,317 2,24,700 41.22
Vedanta 48.00 3,07,324 1,87,013 64.33
Bharti 37.35 2,39,109 1,97,557 21.03
Kotak Mahindra 29.55 1,89,151 1,48,141 27.68
Mahindra 26.03 1,66,657 1,67,355 -0.42
Hinduja 21.67 1,38,736 98,963 40.19
Sun Pharma 19.75 1,26,428 1,95,846 -35.45
Adani 19.26 1,23,301 76.260 61.69
Shiv Nadar 18.99 1,21,550 1,10,854 9.65
Godrej 15.40 98.574 74,577 32.18
Eicher 13.49 86,833 61,833 39.62
Munjal (Hero) 13.11 83,940 73,119 14.80
Indiabulls 11.93 76,383 43,123 77.13