Digital Box

 Q. Why consultancy service should be outsourced? A. Consultancy service is often beneficial  to outsource due to economies of scale of the service provider, one time nature of the work, expert services and lower cost with higher quality of work. Q. Are all consultant same? A. Even two commodities produced from ages differ in quality and cost. It is due to the competitive advantages identified by the firm or specific production possibility curve of each firm make them unique in terms of their product. As consultancy service is required in some specific areas of expertise, it is obvious that they differ. Q. Why consultants delivering same service differs? A.  Qualification of consultant ensure minimum quality of work not the maximum quality of the work. Qualification provided by any authorized body is concerned with general requirement in the market and not about the specific requirements of any employer. However, consultants are employed by any particular employer. Hence,...

  Analysis of gainers and losers after a year of merger. Here X and Y are two merged BAFIs in recent past. Suppliers-> Depositors Customers->Borrowers Investors-> Equity shareholders Firm--> Merged BAFIs

 1. Financial Reporting aims to solve Information asymmetry through quite extensive disclosure about financial information. BAFIs are listed companies. They are required to disclose financial information publicly.  2. BAFIs pool majority of finance from general public and invest them. Contribution of shareholders in financing is not majority and they are in control of all the funds. They have a great incentive to mislead other shareholders and economy as they are not the major contributors but benefit from all the fund of general public. 3. Due to greater incentive of BoD of BAFIs to create information asymmetry, auditors should not only focus on management override of control as required by ISA 240 "THE AUDITOR’S RESPONSIBILITIES RELATING TO FRAUD IN AN AUDIT OF FINANCIAL STATEMENTS" but also focus on BoD and its incentives to override control system and financial information disclosed. One may argue that BoD is not involved in day to day operation of BAFIs, it will be same ...

May Shree-Hari bless my country with Dharma and Artha.  May all humans find peace and prosperity.  May Dhanajay (Arjun) show path to victory. May Dhanajay (Family Line) guide all humans toward Vedas.  1.Whatever I may read in any popular book written in English about strategy, I can not find any strategy like the Mahabharat. Number of characters each with unique features, number of sciences used, progression of life towards death, fulfillment of objective of each individuals and Dharma and so on which I may realize with time. 2. Strategy for me, is, either in business context or otherwise, path adopted to get victory whether by operational efficiency or by creating hard to copy information. Whether sustainable or not it is winning that matters and strategy is path to that victory.  3. However, Dharma is the basic rule by which path should be chosen. Let us normalize Dharma as something normally agreed upon by learned men as the basic norms of any battle, competition....

 1. Let us suppose that the objective of the human life (at least brain) is to seek and find the truth. Everything is from truth and everything rest on truth. Now, let us assume that 5 fields of knowledge get established in any society to achieve the maximum social welfare and also individual perfection.  2. As the maximum social welfare is possible only upon getting truth established in the society or getting as near as possible, all field has equal value. Hence, chance of getting near truth is 1/5 or 20% in each field.  3. Now assume that there is waste of time in learning any particular field, i.e. when desired by any individual or society, they can learn all fields or more than one fields.  4. Suppose, X mastered one field say Physics, i.e. 99.99%(use 100% for calculation) of the available things get studied by X. Whereas, Y studied 2 fields say Physics and Law and mastered 80% of each field. Here X gets the objective fulfilled by 100%*20%=20% and Y does so by 80...

 1. Before going into details of explaining how Purusha Sukta can be used as a source of organization, let me clarify something. I have a simple hypothesis about interpretation of Vedas. If possible they should be interpreted by using word to word in the sense of all grammar of Sanskrit as intended and used by Rishis. Else, they should be interpreted using best of knowledges available form natural sciences, human sciences linked to objective of preserving Dharma so that all humans subject to learn Vedas will flourish in every aspect of their life. Though I believe that it  is more system oriented than marginal view to enhance wellbeing of individual beings. Though system is directed to individual as individual is the single unit possible to realize the best that can be realized and can experience wellbeing. 2. Now Purusha Sukta is explained as sum of parts of Purusha. Purusha is not male thing as is literally translated. it is some being which is perfect, which is perpetual an...

  I wrote these line eight years back. It is quite funny to re read them again, especially the language. I hold the theme of paper today also. Reference is really I wrote for the sake of reference, may have some influence on me but not directly on these lines. 

 1. Let us assume a bank(may be branch) having 1 Lakh deposit customers who do not transact in any time during a audit year. every month they get interest at some specified rate. hence, every month 1 Lakh interest expense entry will be done. in a year total 12 Lakhs entry has been made.  2. now assuming that all given workforce of a audit firm/auditor has equal capacity to execute a given work of auditing interest expense. rate of their working is 1 voucher per minute. they work 6 days in a week or 24 days in a month. suppose audit assignment is to be completed within 3 months then total available working hours for  72 days for a single labor. Having 8 Hours per day working hour, total hours that can be worked (without any break in between during working hours in any day) is 576 Hours or 34,560 minutes. given the rate of 1 voucher per minute he/she can vouch 34,560 vouchers in three months. audit of bank interest expense without sampling can be done by around 3 workers de...

  § 1. I begin with few properties of Indifference curve (IC). one is higher the indifference curve higher utility of any particular consumer it gives. Second, it follows diminishing marginal rate of substitution when compared two goods in single IC. Let us assume two goods X and Y are being assessed for maximizing utility by Consumer Ram parsad. IC under consideration increased in such a fashion it is increased by 10 units of utility as it goes away from the origin or every increasing budget lines of Ram parsad can achieve such ICs. IC1 is supposed to give 10 units of utility and hence IC2 and so on 20 units of utilities and 30 and so on. (this blog will work even if such increase in utility is on diminishing rate in way to give {10,10+9,29+8,...}) §2 . I think Budget constraint is only relevant when making decision about actual exchange for payment. for deciding individual's utility on the given quantity of goods, it is irrelevant to judge with ability to pay rather it should be ...