FULL FORM OF HUF

           HUF stand for Hindu Undivided Family. One can save taxes by forming a family unit and combing asset to form a HUF. HUF is taxed separately from its member. For instance A Hindu family can come together and form a HUF likewise Buddhist,Jains and Sikhs can also form a HUF. HUF has its own PAN and files tax returns independents of its members.
            A HUF is taxed separately from its member,hence deductions such as under section 80C or exemptions allowed under the tax laws can be claimed separately. For instance if someone and his spouse along with two children decided to create a HUF all four members as well as HUF can claim a deduction for section 80C and will be eligible for other exemptions.

TAX CRITERIA FOR HUF

    The followings are the tax criteria for the HUF.

1. HUF has its own PAN and files a separate tax return. A separate joint  Hinhu family business is created since it has entity separate from its members.
2. Deduction can be claimed under section 80C and for the others exemptions.
3. HUF can take an insurance policy on the life of its members.
4. HUF can pay salary to its members. This salary expenses can be deducted from the income of HUF.
5. A HUF is taxed at the same rates as an individual.     

HOW HUF IS FORMED

       For forming HUF some conditions are required which are as follows--

1. One person cannot form HUF,for forming HUF family member are required.
2. A HUF is automatically created at the time of marriage.
3. HUF consist of a common ancestor and all his legal descendants such as their wives and unmarried daughters.
4. HUF can be formed by HIndu,Buddhist,Jains and Sikhs family.
5. HUF normally has asset that comes as a gift,a will,or ancestral property or property acquired from the sale of joint family property or property contributed to common pool by members of HUF.
6. After forming the HUF it must be registered in its name. A HUF should have a legal deed. The deed must contain details of HUF members and the business of the HUF. A PAN number and a bank account should be opened in the name of the HUF.

DISADVANTAGE OF MEMBERS

   There are some complication with the HUF which are as follows--

EQUAL RIGHT OF MEMBERS

 The greatest disavantage of opening a HUF is that it members have equal right on the property. The common property cannot be sold without the consents of all the members. Any addition to the family by way of birth or marriage, become a member of the HUF and get equal rights. 

 PARTITION

          The most difficult  of opening A HUF is closing it down. The only way a HUF is dissolved  is by a partition.  All members have to agree to dissolve the HUF.

  LOSING OF JOINT FAMILY RELEVANCE

           HUF was  recognise as a separate taxable entity by the Income Tax Department. However, in today's time, where nuclear family are the norm, it is losing relevance.

HUF IS ASSESSED TILL PARTITION

      Once HUF is formed , it  must continue to file it tax return, unless a partition takes place.

FULL FORM OF GDS

                  GDS stand for Gross Domestic Savings. We know that GDP is the money that combines of all the final goods of of various products in the domestic territory of a country in a particular year. Hence Gross Domestic Product measures the total output of goods and services for final use within a country regardless of the allocation to domestic and foreign claims.
              A part of the GDP is consumed. The remaining after the consumed is saving. Hence Gross Domestic saving is the Gross Domestic Product minus final consumption. The saved money is either kept with the public or is reinvested,when money is reinvested it is known as capital formation. The ratio of saving and investments is very important for the economic growth of the country.
           The Gross Domestic Saving has two parts. First is Public Sector and second is Private sector. The largest segment of Private Sector is the Household Sector. Another segment of the private sector is the private corporate sector.  

FULL FORM OF FPO

                 FPO stand for Follow on Public Offer. A follow on public offering is the issuance of shares to investors by a company already listed on stock exchange. A follow on public offering is an additional shares made by a company after an initial public offering. FPO usually announce by companies to raise equity or reduce debt.
               Public companies can take advantage of an FPO through an offer document. It should not be misunderstand wit IPO,the initial public offering of equity to the public. FPOs are additional issues made after a company is listed on an exchange.

TYPES OF FPO

          There are two main type of follow on public offers. The first is dilutive and second is non dilutive. The first is dilutive to investors,as the company's board of directors accepts the proposal to increase the share float level or the number of share available. In dilutive follow on public offering seek to raise money to reduce debt or expand the business. Hence increase in the numbers of shares outstanding.

        The other type of follow on public offer is non dilutive. It is useful when directors or substantial shareholders sell -off privately held shares. In a non-dilutive offer,all share sold are already in existence. It is normally referred to a secondary market offering.

English Class - 6 Chapter - 7 Fair Play

ENGLISH CLASS - 6

CHAPTER - 7

( FAIR PLAY ) 

WORKING WITH THE TEXT

QUESTION A.

Match the sentences under I with those under II.

                                        I

1. Jumman and Algu were the best of friends.

2. Jumman’s aunt transferred her property to him.

3. The aunt decided to appeal to the panchayat.

4. Algu was unwilling to support the aunt.

5. Jumman was very happy to hear Algu’s name as head Panch.

                                         II

1. He believed that his friend would never go against him.

2. She wanted justice.

3. In the absence of one, the other took care of his family.

4. The condition was that he would be responsible for her welfare.

5. The bond of friendship between him and Jumman was very

strong.

ANSWER

1.Jumman and Algu were the best of friends.

- In the absence of one, the other took care of his family.In the absence of one, the other took care of his family.

2. Jumman’s aunt transferred her property to him.
- The condition was that he would be responsible for her welfare.

3. The aunt decided to appeal to the panchayat.
- She wanted justice.

4. Algu was unwilling to support the aunt.
- The bond of friendship between him and Jumman was very

strong.

5. Jumman was very happy to hear Algu’s name as head Panch.

- He believed that his friend would never go against him.

QUESTION B. 

Who says this to whom and why?
1. “My wife knows best how to run the house.”
2. “But is it right, my son, to keep mum and not say what you consider just and fair?”
3. “What have you to say in your defence?”
4. “I can’t pay you a penny for the wretched beast you sold me.”
5. “Victory to the panchayat. This is justice.”

ANSWER

1. Jumman said this to his aunt because he was shameless and tired of her. His aunt had asked for a monthly allowance to set up a separate kitchen as she felt that she was not wanted in their house. 

2. Jumman's aunt said this to Algu. She had gone to Algu for help but Algu had politely refused her plea because he was friend of Jamman and did not want to go panchayat against him.

3. Algu said this to Jumman. Algu was made the head Panch by the aunt.

4. Samjhu Sahu said this to Algu when he demanded payment for the bullock had died within a month aand Sahu refused to pay for it. 

5. Algu said this over and over again in front of the village. He was happy that Jumman had not deviated from the path of justice in spite of the enmity between them.

QUESTION C.

Answer the following questions.
1. “Then the situation changed.” What is being referred to? (2)
2. When Jumman’s aunt realised that she was not welcome in his house, what arrangement did she suggest? (3)
3. What was the villagers’ reaction when the aunt explained her case to them? 
4. Why was Jumman happy over Algu’s nomination as head Panch? (6)
5. “God lives in the heart of the Panch.” the aunt said. What did she mean? (6)
6. What was Algu’s verdict as head Panch? How did Jumman take it? (7, 8)
7. Algu found himself in a tight spot. What was his problem? (9)
8. Why was Algu upset over Jumman’s nomination as head Panch? (12, 13)
9. What was Jumman’s verdict as head Panch? How did Algu take it? (14, 15)
10. Which of the following sums up the story best?
        (i) “I also know that you will not kill your conscience for the sake of                             friendship "
        (ii) “Let no one deviate from the path of justice and truth for friendship or                  enmity "
        (iii) “The voice of the Panch is the voice of God.”
Give a reason for your choice.

ANSWER

1. Jumman's aunt had transferred her property on the understanding that she would stay with him and he would look after her. The situation changed after the couple of years. Jumman forgot his promise to look after his old aunt. He and his wife started to ill treat her.

2. When she realised that she was not welcome in house. She asked to Jumman to provide her monthly allowances so that she can set up a separate kitchen.

3. The old women went to several villagers to explain her case and get their support. Some showed sympathy, some laughed at her. Some advice to settle down the matter with nephew and his wife.

4. Algu and Jumman were good friends. So Jumman hoped that Algu will favour him. So he felt happy when the aunt named Algu to act as head Panch.

5. The aunt mean that  a person in the seat of Panch is like a God, Panch voice is the voice of God. He cannot do any injustice.

6. Algu's verdict as head Panch was that, Jumman must pay his aunt a monthly allowance or else the property goes back to her. After this decision Jumman became Algu 's enemy and wanted to take revange.
  
7. One of his fine pair of bullocks died and he sold the other to Samjhu Sahu, a cart driver of the village. The understanding was that Sahu would pay the price of the bullock in a month's time, but bullock died within a month and Sahu refused to pay.

8. Algu was upset because Jumman was already annoyed with him. So he thought that Jumman will take this opportunity against him.

9. Jumman verdict was that Sahu bought the bullock, it was healthy. When Algu listened this verdict he stood up and said loudly over and over again " victory to the panchayat".

10. (ii) “Let no one deviate from the path of justice and truth for friendship or                  enmity.” 
The person in the seat of a judge becomes fair for all.

WORKING WITH LANGUAGE

QUESTION

A. Replace the italicised portion of each sentence below with a
suitable phrase from the box. Make necessary changes,
wherever required.

look after     swallow     make it up     keep mum     go into     ease one’s conscience     as ill luck would have it     a tight spot     take chances     my heart sank

1. The best way to avoid an unnecessary argument is to remain silent.
2. Unfortunately, the train I was trying to catch was cancelled.
3. He has been told not to take risks while driving a car through a crowded street.
4. The patient needs to be properly taken care of.
5. Why don’t the two of you end your quarrel by shaking hands?
6. I was in a difficult situation till my friends came to my rescue.
7. When I saw a pile of dirty dishes, I felt very disappointed.
8. I will examine the matter carefully before commenting on it.
9. They criticised him in the meeting but he accepted without protest all the criticism.
10. It will free me from worry to know that I had done nothing wrong.

ANSWER

1.The best way to avoid an unnecessary argument is to keep mum.
2. As ill luck would have it, the train I was trying to catch was cancelled.
3. He has been told not to take chances while driving a car through a crowded street.
4. The patient needs to be properly looked after.
5. Why don’t the two of your make it up by shaking hands?
6.I was in a tight spot till my friends came to my rescue.
7. When I saw a pile of dirty dishes, my heart sank.
8. I will go into  the matter carefully before commenting on it.
9.They criticised him in the meeting but he swallowed all the criticism.
10. It will ease one's conscience to know that I had done nothing wrong.

QUESTION

B. Look at the following phrases and their meanings. Use the phrases to fill in the blanks in the sentences given below.

set up   —   put in place or start
set aside   —   save or keep for a particular purpose
set down   —   write or record
set out   —   start on a journey
set in   —   begin and seem likely to continue

1. Why don’t you ————————————— your ideas on paper?
2. A fund has been ————————————— for the soldiers’ families.
3. We should ————————————— a little money every month.
4. You should buy some woollens before winter ——————— .
5. They ———————————— on the last stage of their journey.

ANSWER

1. Why don’t you set down your ideas on paper?
2. A fund has been set up for the soldiers’ families.
3. We should set aside a little money every month.
4. You should buy some woollens before winter set in.
5. They set out on the last stage of their journey.

DICTATION

QUESTION

Your teacher will speak the words listed below. Write against

each a word of opposite meaning.

Examples:liquid - solid

                     hard - soft

1. old _______________

2. wet ———————
3. open ———————
4. blunt ———————

5. forget ———————

ANSWER

1. old - new

2. wet - dry

3. open - closed

4. blunt - sharp

5. forget - remember

WHAT IS GRATUITY

UNDERSTANDING GRATUITY

       Gratuity is given by the employer to his employee for the service rendered by the employee during the period of employment. It is normally paid at the retirement time but it can be paid earlier in case of demise of the employee.

       A person is eligible to get gratuity only if he has completed minimum 5 years of service with an organisation. However gratuity can be paid before the completion of five years in case of death of the employee or if has become disabled due to accident or disease.

     Payment of gratuity depends on two factors ie last drawn salary and years of service rendered. Payment of Gratuity Act,1972 has divided non- government employee into two categories.

1.  Employee covered under this Act

2.  Employee not covered under the Act

   An employee will be covered under the act if in an organisation number of employee at least 10 person on a single day in preceding 12 months. Once an organisation comes under the purview of the gratuity act,then it will always remain covered even if the number of employee is falls below 10.

CALCULATION OF THE GRATUITY

 1. FOR EMPLOYEE COVERED UNDER THE ACT    

        There is a formula to calculate the gratuity. The formula is based on the 15 days of last drawn salary for each completed year of the service or part of thereof in excess of six months. The formula is as follows -

Gratuity=

  15 x Last drawn salary x tenure of service

     ------------------------------------------------------------------------------

                 26
  Last drawn salary includes basic salary,dearness allowance and commission received on sales.

It can be understand with the example--

Shyam retires after the service of 24 years and 8 month. His last drawn salary was 50,000 per month. How much gratuity he will get at the time of retirement.

Solution--     Last drawn salary = 50,000
                       Tenure of service is 25 years ( here he has rendered 24 years and 8 month of service which is more than the six month so 8 month will be count as one year)

    So putting the values in formula =    15 x 50,000 x25
                                                                       ----------------------
                                                                             26
                                                                 =   721153.84
                                                                 

2.  FOR EMPLOYEE NOT COVERED UNDER THE ACT

     There is no law that binds an employer from paying gratuity to his employee even if the organisation is not covered under the Act. The amount of gratuity payable to the employee can be calculated based on half month salary for each completed year. Here service must be completed in a years if anyone has worked for 24 year and 8 month so no of years will be count 24 years for the calculation of gratuity.

   In this case the formula will be=   
      
      Gratuity =   15 x last drawn salary x tenure of service
                           ---------------------------------------------------
                                            30

FULL FORM OF FOREX

            FOREX stand for Foreign is1000change. Foreign Exchange is the trading of one currency for another. Foreign exchange transactions can take place on the foreign exchange market also known as Forex market. Foreign Exchange is a global market where national currencies are exchanging with one another. Foreign exchange trading utilizes currency pairs,priced in term of one versus other.

 WORKING METHOD OF FOREIGN EXCHANGE

          The market determines the value also known as an exchange rate of the majority of currencies which are traded on exchange. Foreign exchange can be as simple as changing one currency for another at a bank. Trading currencies are listed in pairs,such as USD/CAD,EUR/USD, USD/JPY etc. This represents the U.S. dollar USD versus the Canadian dollar CAD, the Euro EUR verses the USD and the USD verses the Japanese Yen JPY.

       There will be be a price associated with each pair,such as  1.5432. If this price was associated with the USD/CAD pairs it means it costs 1.5432  CAD to buy one USD. If the price increases to 1.7328 then it now costs 1.7328 CAD to buy one USD. The USD has increased in value as CAD decreases,because it now costs more CAD to buy one USD.

      In the forex market currencies are traded in lots named micro lots,mini lots and standard lots. A micro lot is 1000 worth of a given currency, a mini lot is 10,000 and a standard lot is 100,000. In forex market trading is done in lots only such as micro,mini and standard. If an individual wants to trade in forex market then he has to trade in lots only where as he can trade in so many lots of micro,mini or standard. For instance he can trade 10 lots of micro or 20 lots of mini or 5 lots of standard according to capacity and risk appetite.

    

FULL FORM OF FIIs

             FIIs stand for Foreign Institutional Investors.   FII are institutional investors that invest in assets belonging to a different  country other than that where these organisation are based. FII play a very important role in the economy. FII are the big investment companies like investment banks,mutual fund,hedge fund,insurance companies,pension fund etc. They invest huge amount of money in the market. With the buying of securities by these big institutional investors market tends to move upwards. 
             Some developing economies attracts the foreign institutional investors with the view that investors will get higher potential growth. This may be one reason FII are commonly found in India which has a high growth economy and attractive individual corporations to invest in. All FII in India must register with the Securities and Exchange Board If India before investing in the Indian Market. 
             The process of investment of Foreign institutional Investors can be understand with the following example-- If a mutual fund house of France asses a high growth investment opportunity in an Indian listed company, it can make investment in that Indian company by purchasing of that company's share. In type of investment arrangement also benefit private France investors who may not be able to buy Indian stock directly,instead they can invest via mutual fund and take part in the high growth potential .  
    

FULL FORM OF ELSS

   ELSS stand for Equity Linked Saving Schemes. Like other investments option to save tax ELSS is one of the most likely saving schemes. It is diversified equity mutual funds which invest the main part of money in equity and equity related securities. The fund managers asses the companies and sectors that have strong potential growth and invest the money into it.

TYPES OF ELSS  

      ELSS is mainly of three types.

GROWTH OPTION

    In this option investment is made for the long term. The investors will get the benefit at the end of the tenure that will help in improving the investment over period of years. The return will be completely depend upon the market return. Though investment is made for a long term there is more chance to be benefited on the investment.

DIVIDEND OPTION

     In this option the investors gets the timely benefit of dividends as compared to the wholesome amount at the end is called the dividend option. The dividend that investor get is not liable for taxation.

DIVIDEND REINVESTMENTS OPTION

      In this option investors has the option to reinvestments the dividends received again it will increase the investment amount hence the return will be good after a certain period of time.

BENEFIT OF ELSS

•      A minimum lock in period for 3 years that is considerably less in compare to other mutual funds and saving schemes.
•      ELSS can earn high returns compare to other savings schemes.
•      After lock in period if investment is withdrawn it will be  100% tax free.
•      It works on the principle of power of compounding that will help to get good return.
•      There is no maximum limit to invest.

FULL FORM OF CRISIL

             CRISIL stand for Credit Rating Information Services of India Limited. It is a global analytic company providing rating,research and risk and policy advisory services. Its headquarter is in Mumbai. CRISIL help investors,lenders,borrowers and regulators to make right decision with the help of rating given by them. It also promotes economic growths in emerging markets by shaping the public policies on infrastructure in these regions.
              CRISIL serves the entire spectrum of financial service player such as commercial and investment banks,insurance companies,consulting firms,private equity players,asset management companies and investors. It also works with government and policy makers of a country. It helps investors and business entity to make better investment and business decisions.

RATING SYMBOLS

     CRISIL -A

        It is the rating scale for Long Term Instruments.

    CRISIL - AAA     (Highest Safety)

         It is the rating scale for safest in term of timely fulfillment of financial obligation.

      CSISIL-AA

       This rating indicates the very low risk and timely fulfillment of the financial obligation.

      CRISIL- BB    ( Moderate Risk )

      This rating indicates the risk in the moderate risk in the investment.

      CRISIL-C 

       An instrument with this rating are prone to risk.

     CRISIL- D   

        An instrument with this rating is expected to be default soon.

   

FULL FORM OF CMO

                CMO stand for Chief Marketing officer. A CMO is a corporate executive responsible for the activity in an business entity which is related to creating,communicating and delivering offering which have value for clients,customer or business partners. The primary function of CMO is to facilitate growth and increase sales by developing a good marketing plan which will promote brand recognition and help the business gain a competitive advance. CMO is exceptional leaders in order to achieve company's goal and shape the company's public profile. CMO is the executive in charge of developing the strategy for corporate advertising and branding the products and reach to customers.

ROLES AND RESPONSIBILITIES OF CMO

            The CMO has a important role and responsibility in the sales management in the company. Some of the followings are roles and responsibilities of the CMO.

• Look after the development and placement creative things that position in the  company in the marketplace.
• Doing research and assessment of the market and assess the position of company in it.
• Supervising or collaborating with sales to enhance the sales of the company.
• Making company's public relation efforts.   

         The CMO's aim is to do marketing efforts like raising the brand awareness,recognition and loyalty which will ultimately lead to enhance the sales.

FULL FORM OF NSDL

          NSDL stand for National Securities Depository Limited. It is the securities depository in India that holds the securities of investors such as bond,debentures,securities,shares in electronic format. NSDL is the first and largest central securities depository in India. The aim of establish of NSDL was to sort out the issues such as bad delivery and delayed transfer of securities ,problems to get duplicate when original was lost as paper base settlement of the securities.
        NSDL was established in 1996 after the enactment of Depository act, 1996,to facilitate trading and settlement of securities in electronic format to get rid off problems facing by the paper based settlement. Its headquarter is in Mumbai,India.

ADVANTAGE OF NSDL

•         The main advantage of National Securities Depository Limited is that all the holding are in electronic format so there is no risk of loss,theft or damage. 
•         When transferring the securities in dematerialized format stamp duty is not to be paid.
•         Through NSDL companies can directly credit their investors in case of bonus issue of shares or any right issue.
•        Investors can get updated information about the listed company management about the holdings and can track the change in any detail related to the security or stock.
•       The NSDL send the statement which contains all the holdings of that period,it will be helpful for the investors to make financial decision related the holdings.
•       It facilitate ease in change of investors detail.

FULL FORM OF CDSL

         CDSL stand for Central Depository Services Limited. It is promoted by together State Bank of India,Bank of India,Bank of Baroda,HDFC Bank,Standard Chartered Bank,Axis Bank and the Union bank of India. It is considered as the second most popular public sector in India after NSDL.

FUNCTION OF CDSL 

     Central Depository Services Limited functions like a bank only difference is that in bank money is kept whereas in CDSL stocks,shares,bonds etc in electronic forms. It is an administrative body that holds the securities of an investors in an electronic format when it is asked by the investors through a registered depository participant.

     The main function of Central Depository Service Limited is to provide safe,reliable,useful and secure depository services to the investors or traders. CDSC established in 1999 after getting approval from the Securities and Exchange Board of India. CDSL offer different services for holding the securities,equity, bonds,commercial papers,government certificates of deposit etc.

ADVANTAGE OF CDSL

•         The main advantage of Central Depository Service Limited is that all the holding are in electronic format so there is no risk of loss,theft or damage. 
•         When transferring the securities in dematerialized format stamp duty is not to be paid.
•         Through CDSL companies can directly credit their investors in case of bonus issue of shares or any right issue.
•        Investors can get updated information about the listed company management about the holdings and can track the change in any detail related to the security or stock.
•       The CDSL send the statement which contains all the holdings of that period,it will be helpful for the investors to make financial decision related the holdings.      

  

FULL FORM OF CBDT

      CBDT stand for Central Board of Direct Taxes. It is a statutory authority functioning under the Central Board of Revenue Act,1963. It functions as a division of the ministry of finance under the department of revenue.

COMPOSITION OF CBDT

        The Central Board of Direct Taxes consist of the chairman and following six members ---

 1.  Chairman

 2.  Member ( Income tax)
 3.  Member(Legislation & Computation)
 4.  Member  ( Personal    & Vigilance )
 5.  Member    (Investigation)   
 6.  Member    (Revenue)
 7.  Member   (  Audit and Judicial )

FUNCTION OF CBDT

            Its function include formulation of policies,dealing with matters related to levy and collection of direct taxes, and monitoring of the functioning of the entire income tax department. CBDT also proposes legislative changes in direct tax enactments and changes in rates and structure of taxation with consultation with the ministry of finance and according policy of the governments. The board consist of Chairman and six members. The Chairman is the co- ordinating head of the all the members. All the members are assigned a specialized function. They are assisted by Joint Secretaries,Directors,Deputy Secretaries, Under Secretaries and ministerial staff  for carrying out their routine functions. The Chairman and others members have been assigned territorial zones for the purpose of supervising and monitoring the work of fields for which they assigned.

            For the effective discharge of function of CBDT ,it is assisted by a number of attached offices known as Directorates. These directorates have been assigned a particular function such as inspection,vigilance,maintenance of statistics,recovery,judicial,training to its officials,conducting of deoartmental examination etc.

   

  

 

FULL FORM OF CAGR

             CAGR stand for Compound Annual Growth Rate. Any investment offers benefit of compounding and can build wealth. CAGR indicates how much investment grew over a specific period of time. In other words, it is the average returns an investor has earned on the investment after a certain period of time. The banks and financial institution calculates this rate in term of percentage.
              A stock or a mutual fund cannot provide constant rate of return every year. The rate may change from year to year. If the amount is reinvested then it is required to know the profit earned on all the investment together.

CALCULATION OF CAGR

          Maximum investors depends on absolute return to analyse the performance of their investments. However it does not consider the time value of money. CAGR takes into account the period for which investor is invested money. It provides an approximate rate at which investment would grow if there would be no volatility. It is an excellent way to factor the fluctuations experienced by the investment over a specific period of time,then it will be easy to assess the performance over the particular period of time.

        CAGR is easily calculated for calculation three things must be known ---

•  The investment made in the initial year ie the first year of investment.
•  Value of investment at the end of the year.
•  Tenure of the investment.

   CAGR may be calculated with the help of following formula.                       

           

                 
  n= No of investment period in months/years.

FULL FORM OF STBT

       STBT stand for Sell Today Buy Tomorrow. In this traders sells the stock today and purchase it back on the next day .In BTST segment the stock is purchased in cash and Future and Option segments. The STBT position can be taken only in Future and Option segments because short selling and holding is not allowed in the equity segment of the stock market. But short selling is allowed in equity segment for intra day only,position must be square off means if trader has sell the stocks in equity segment he has to buy the stock at same day,if he does not to do so then exchange square off position automatically before the market closing.  
      Stock market is a risky place. While taking STBT position the traders needs to be careful. Any wrong analysis of the stock movement may trap the trader. The stock price may move against the speculation of the traders and  ultimately he has to book the loss. It is highly attractive stock market strategies hence one must be careful while trading in STBT segment.

FULL FORM OF BTST

          BTST stand for Buy Today Sell Tomorrow. It is a short term trading opportunity. The traders purchase the share today means on one trading day in cash or future and option segments and sell it on next trading day. Unlike the buy the stocks and holds it for long term it is sold on the next day of the buy. BTST position is taken in those stocks whose price is expected to go high on another day. This trading is based on some fundamental or technical study or on the basis of conviction of investors.
         Stock market is a risky place. While taking BTST position the traders needs to be careful. Any wrong analysis of the stock movement may trap the trader. The stock price may move against the speculation of the traders and  ultimately he has to book the loss. It is highly attractive stock market strategies hence one must be careful while trading in BTST segment.

FULL FORM OF BSE

          BSE stand for Bombay Stock Exchange. The Bombay Stock Exchange is the first and largest securities market in India. It was established in 1875 as the Native Share and Stock Brokers Association. It is situated in Mumbai in India. BSE lists approximate 6,000 companies and is one of the largest exchanges in the world. BSE has helped in development of the India's capital markets including the retail debt market and has helped in grow the Indian Corporate sector. 
          BSE is the Asia's first stock exchange and also includes an equities trading platform for small and medium enterprises. It is known for its electronic trading system which provides fast and efficient trade execution. BSE enables investors to trade in equities,currencies,debt instrumental,derivatives and mutual funds. It also provides other capital market trading services like risk management,clearing,settlement and investors education.    

FULL FORM OF AMFI

               AMFI stand for Association of Mutual Funds In India. Association of Mutual Fund in India came into force in 1995 and its main objective is to protect the interest of investors. The AFMI was instrumental in setting transparent regulation in the Indian Mutual Fund. In the last two decades,it has played a important role in the interest of investors as well as the fund houses. It has made investments more accessible and transparent in mutual funds. So every fund house,trustee,advisors and agent must register with AFMI .

PURPOSE OF AMFI 

  The followings are the purpose of the AMFI.

  

1.  To make ethical and uniform professional standards every mutual fund houses operation under the association.
2. To encourage members and investors to work under ethical and professional standard of business norms.
3. All AMCs ,agent,distributors,advisors and other bodies involved in the capital market or financial services fields must comply the guidelines set by the AMFI.
4. To communicate with SEBI and comply with their mutual fund regulations.
5. AMFI report to the Finance Ministry,RBI,and SEBI on matters related to the industry.
6. To make awareness across the country on safe mutual fund investments.
7. To disseminate information on mutual fund sector and conduct research and workshop on various types of fund.
8. AMFI vigilant on code of conduct of everyone included in the functioning if mutual fund industry and take disciplinary action in case of violation of rule and regulation.
9. Investors can approach to AMFI for their grievances and can register complain against a fund manager or fund house.
10. AMFI safeguards the interest of investors and asset management companies.            

FULL FORM OF AMC

         AMC stand for Asset Management Company. These companies are collecting investments from various individual and institutional investors. The company manage the investment in various segments like stocks,real state,bonds,mutual funds etc. The asset management companies have professionals who are expert in finance and investments called fund managers who decide where the fund is to be invested. Fund managers identify the investment option according to the objective of the investors.
          Fund manager evaluates various factors like market and industry risk,before making a decision to invest according to the investment goal of the investors. For example a debts fund invests mostly in bonds and government securities to keep the risk minimal. Where as a equity fund focus on investment on equities ie shares of that company. The main focus of the fund manager is to get maximum return with safety for the investors.

WHAT IS AMORTIZATION

              Amortization is an accounting technique used to periodically lower the book value of a loan or intangible asset over a set period of time. The term Amortisation can refer to two situation. In first situation Amortization is used in the process of paying off debt through regular principal and interest payment over period of time. An Amortization schedule is used to reduce the loan amount. For any loan through installment payment. In second situation the Amortization can also spreading out of capital expenses related to intangible asset over a specific duration,usually over the asset's useful life for accounting and tax purpose.

FULL FORM OF LRR

     LRR stand for Legal Reserve Ratio. It is the minimum fraction of deposits that the banks are mandate to keep as cash themselves. The legal reserve ratio is fixed by Reserve Bank of India. Legal Reserve Ratio has two components.

Cash Reserve Ratio --  

               Cash Reserve Ratio refers to cash reserve of banks with the Reserve Bank of India as a percentage of their deposit.

Statutory Liquidity Ratio --

            Statutory Liquidity Ratio refers to reserves with the banks in the form of liquid asset including cash,gold and approved securities as a percentage of their total deposits.

           CRR and SLR are fixed by the Reserve Bank of India and both are legal binding for the banks hence both CRR and SLR are Legal Reserve Ratio.

FULL FORM OF CFO

       CFO stand for Chief Financial Officer. It is the post of a senior finance officer in a business entity who monitors and manages all financial activities in a business entity.  He is the head of the finance and accounting department and is responsible for financial and risk management.
       Normally a person who has well qualified in finance and has depth knowledge in finance become CFO. CFO reports to the Chief Executive Officer and board of directors. The some key responsibilities of a CFO are as follows  --

1.   Plan and execute the financial strategy of the business entity.
2.   Verifying the financial statement prepared by the company.
3.   Overseeing the capital structure and financial operation of the company.
4.   Reporting to CEO and board of directors in related to financial health of the company.
5.    Managing accounting,tax,investors relation and treasury department.
6.  Analysing the financial strength and weakness of the company and take the corrective measure accordingly with the approval of CEO and board of directors.

     

FULL FORM OF ROIC

         ROIC stand for Return on Invested Capital. It is a profitability or performance ratio which aims to measure the percentage return that a company earns on invested capital. The ratio shows how efficiently a company is utilising the investors funds to earn profit.

HOW ROIC IS CALCULATED

        Return on Invested capital is calculated by taking into account the cost of the investment and the returns generated. Returns include all the earnings acquired after taxes but before interest paid. The value of an investment is calculated by subtracting all current long term liabilities that is due within a year from the company's asset. The cost of investment will be total amount of asset a company requires to function its business. ROIC may be calculated by the following formula ---

      Return on Invested Capital =      Net operating profit after tax

                                                                ---------------------------------------------

                                                                Invested capital

    Company's growth can be evaluated by the return on invested capital ratio. Any company which earning excess return on investment totaling more than the cost of acquiring the capital is a value creator. Excess return may be reinvested by the company for the future growth of the company.      

FULL FORM OF ROE

UNDERSTANDING ROE     

    ROE stand for Return on Equity. It is considered a measure of how effectively management is using a company's asset to earn profit. ROE is expressed as a percentage and can be calculated for any company if net income and equity are both positive numbers. Net income is calculated before dividends paid to common shareholders and after dividends to preferred shareholders and interest to lenders. It is calculated by the following formula  -----
      Return on Equity=         Net Income
                                                ________________________
                                                Average Shareholders Equity   

       A higher ROE suggests that company's management is more efficient in term of utilising investment financial to grow their business and likely to provide better returns to its investors. A low ROE,however indicates that a company management is not so efficient and they have to work hard to make the company profitable.  

FULL FORM OF CMP

     CMP stand for Current Market Price. It is also known as current market value. It refers to the price at which shares are trading currently in the stock exchange. The CMP indicates the current market price of a stock. It reflects the current price of the stock for which it can be buy or sell.

FULL FORM OF IPO

        IPO stand for Initial Public Offering. By initial public offering a private company can go public by sale of its stock to general public. It could be any company like new company, or existing company which may be decide to be listed on an stock exchange and goes public. Companies can raise equity capital with the help of an IPO by issuing new shares to the public.
      The company which offers its share are called as an issuer. The IPO process is done with the help of investment banks. After IPO,the company's share are traded in an open market that means the bought shares can be sold by investors through secondary market trading. IPO is usually offered by companies to generate the capital to expand their business. 
     

SOCIAL SCIENCE CLASS - 8

HISTORY CHAPTER - 4

TRIBAL, DIKUS AND THE VISION OF

A GOLDEN AGE

Question no. 1

Fill in the blanks:

(a) The British described the tribal people as …………………

(b) The method of sowing seeds in jhum cultivation is known as ……………..

(c) The tribal chiefs got …………. titles in central India under the British land settlements.

(d) Tribals went to work in the of Assam and the ……………… in Bihar.

Answer no. 1

(a) savage

(b) broadcast

(c) land

(d) tea plantation, coal mines

Question no. 2

State whether true or false:

(a) Jhum cultivators plough the land and sow seeds.

(b) Cocoons were bought from the Santhals and sold by the traders at five times the purchase price.

(c) Birsa urged his followers to purify themselves, give up drinking liquor and stop believing in witchcraft and sorcery.

(d) The British wanted to preserve the tribal way of life.

Answer no. 2

(a) False

(b) True

(c) True

(d) False

Question no. 3

What problems did shifting cultivators face under British rule?

Answer no. 3

The life of shifting cultivators was directly connected to the forest. When the
British brought changes in forest laws, the life of shifting cultivators was badly affected. The British extended their control over all forests and declared that forests were state property. Some forests were classified as reserved forests for they produced timber which the British wanted. In these resevered  forests people were not allowed to move freely and practise jhum cultivations. Because of these restriction many jhum cultivators had to move to other areas in search of work.

Question no. 4

How did the powers of tribal chiefs change under colonial rule?

Answer no. 4

Before the colonial rule the tribal chiefs were important people. They enjoyed a certain amount of economic power and had the right to administer and controle their their territories. Under the British rule the function and power of these tribal cheifs changed to a large extend, such as :

(a) Before colonial rule they were allowed to keep their land titles over a cluster of villages and and rent out lands, but under colonial rule they lost much of their administrative power and forced to follow rules made by British officials. 

(b)Under colonial rule they had to pay tributes to the British and discipline the tribal group on behalf of British.

(c)Under the colonial rule they lost the authority they had earlier enjoyed among their people and were unable to fulfil their traditional function.

Question no. 5

What accounts for the anger of the tribals against the dikus?

Answer no. 5

The tribals wanted to drive out the dikus such as missionaries, moneylenders, Hindu

landlords, and the government because they saw them as the cause of their misery. The following were reason for their anger against the dikus:

(i) The land policies of the British were destroying their traditional land system.

(ii) Hindu landlords and moneylenders were taking over their land.

(iii) Missionaries were criticising their traditional culture.

Question no. 6

What was Birsa’s vision of a golden age? Why do you think such a vision appealed region?

Answer no. 6

      Birsa was deeply influenced by many of the ideas he came in touch within his

growing-up years. The aim of his movement was reform the tribal society. He urged the Munda to give up drinking liquor, clean their village, and stop believing in witchcraft and sorcery. He often remembered the golden past of the Mundas, when they lived a good life, constructed embankments, tapped natural springs, planted trees and orchards, practised cultivation to earn their living. They did not kill their brethren and relatives. They lived honestly, Birsa was trying to restore this glorious past. Withs uch a vision he appealed to the people of the region because they were very much eager to lead a free life. They were furious with the colonial forest laws and the restrictions that were imposed on them.

ALSO SEE SOLUTIONS OF :

GEOGRAPHY CHAPTERS -

Resources
Land, Soil, Water, Natural Vegetation And Wildlife

CIVICS CHAPTERS -

The Indian Constitution
Understanding Secularisms

HISTORY CHAPTERS -

How, When And Where
From Trade To Territory Company Establishes Power
Ruling The Countryside
Tribal, Dikus And The Vision Of Golden Age
When People Rebel

FULL FORM OF AOP

         AOP stand for Association of person. The Indian Income Tax Act,1961  defines AOP  as an integration of person for a mutual benefit or for a common purpose. A person in AOP could be a company or an individual person. The term person could include any association,body of individual or company,irrespective of whether it is incorporated or not. AOP  has a legal meaning and it represent a unit having duties and rights. AOP could include legal entities.
       An AOP implies a combination of persons which does not mean that any combination or group of persons will be considered as AOP. An AOP will be considered only when a group of individuals associate themselves with any income producing activity then they can be called an AOP. 

WHAT IS HS CODE

WHAT IS HS CODE

      HS CODE stand for Harmonised System Codes. It is commonly used in case of trade like export process of goods. The Harmonised system is a standardized numerical method of classifying traded products. This system is used by custom authorities around the world to identity products when assessing duties and taxes and for collecting statistics also.

    The HS Code is administrated by the World Custom Organisation. These codes are updated by every five years. It serves as the foundation for the import and export classification used in United States and by many trading partner countries.

   The HS Code consist of six digit codes for varying classification and commodities. The system was first implemented in 1988 and currently maintained by the World Custom Organisation. This system is used to ease global trade by creating unified categories to classify different types of foods. 

 

FULL FORM OF EMI

WHAT IS EMI

       EMI stand for Equated Monthly Installment. EMI is a fixed amount that a borrower pays to a lender at a particular date of every month for a fixed period of time. It includes principle amount and interest that a borrower has to pay to lender over a specific number of years to repay the loan amount in full.

CALCULATION OF EMI

     The calculation of EMI depends on three factors ---

1.  Interest Rate
2.  Loan Amount
3.  Tenure of the Loan

 CALCULATION OF EMI WITH FLAT INTEREST RATE

     In flat interest rate the the interest is calculated on the whole principle loan . It can be understand with the following example ---

     Suppose a individual has taken a loan of Rs- 500000/ at a interest rate of 10% for a period of  3 years then the EMI is calculated as -

     Principal Amount = 500000/

     Flat rate of interest=  10%

     Tenure of loan = 3  years

  Total Interest =  Principal Amount x rate of interest x tenure of loan

                                ------------------------------------------------------------------------------

                                                100

                           =  500000 x 10 x3

                               ----------------------

                                   100

                           = 150000

      Total interest divide by 36 + principal Amount divided by 36 will be the EMI in this example EMI will be    500000/36 + 150000/36 = 13888.88 +4166.66=18055.55 so the final EMI will be 18056.00

CALCULATION OF EMI ON THE BASIS OF DIMINISHING BALANCE INTEREST RATE

     In case of diminishing balance interest rate, the interest amount varies each month as for the first month interest is calculated on the whole principle loan and for subsequent months interest is calculated on outstanding loan amount.

   The formula or method to calculate reducing interest amount is ---

   Principal Amount= 500000/

   Diminishing rate of interest= 10%

   Tenure of loan = 3 year

 So Interest for the first month is  =  500000 x (1/12)  x (12/100) = 4166.66/

   Interest for the second month =  outstanding loan amount x ( 1/12 )x ( 12/100)

     

FULL FORM OF ETD

       ETD stand for Estimated Time of Departure. It includes date and time at which a journey is expected to start. This abbreviation is most commonly used in the transport industry.

     It is also used in other industry like in garment industry. Here the ETD stand for Estimated Time of Delivery. When sourcing is done through contracts and purchase order ETD and ETA are important dates for the contract. Especially the buyer's purchase order contains these abbreviation. 

FULL FORM OF ETA

     ETA stand for Estimate Time of Arrival. It is also known as Expected time of Arrival. The entity which someone expects to arrive could be a train,aeroplane,bus,ship and courier anything. This term is generally used to give a person an idea about the time of arrival of ship,aeroplane. The time is setout in the form of specific date with expected time in hours and minutes. The expected time is measured from the past experience and with the help of formula. For instance,in public transport,the estimated time of arrival of trains,bushes,planes is calculated on the basis of their static time table,traffic intensity and current and past record of the movements.

    It can be understand with the help of following example ------

   Suppose someone wants to travel from Delhi to Kanpur by train .The distance between Delhi to Kanpur is 225km and average speed of train is 75 km per hour. So if anyone starts his journey from Delhi At 1000 AM in the morning his estimated time of arrival at Agra would be 1300 Hrs ie after the time taken of 3 hrs.

ETA =  Total Diatance
             ----------------------
              Speed
         
     
                

FULL FORM OF ECS

WHAT IS ECS

       ECS stand for Electronic Clearing Service. It is an electronic mode of fund transfer from one banks account to another banks account. It also facilitates electronic credit/debit transaction linked with customers account. It is used in such a transactions which are repetitive or periodic in nature. This system was introduced by the Reserve Bank of India to provide a faster method for repetitive and periodic nature of payments.

       To get the ECS facility individual has to inform to his bank and provide a mandate for the banks to authorize the institution which can then debit or credit the payments through bank. The mandate includes the details of bank branch,account information IFSC Code etc.      

TYPES OF ECS

    An Electronic Clearing Service is of two types --

ECS CREDIT -

     In this ECS ,an institution makes a credit to bank account such as dividend received,salary etc.

ECS DEBIT -

    In this ECS  individual can make payments such as installment of loan,amount of SIP, premium of policy etc.

FULL FORM OF EBIDTA

WHAT IS EBITDA

      EBITDA stand for Earning before interest,tax,depreciation and amortization. It measures the company's operating performance. Essentially it's way to evaluate a company's performance without having to factor in financial decision,tax environments and accounting decisions.

   EBITDA is calculated by the following formula  ---

EBITDA=   EBIT+ Depreciation+ Amortization

    EBITDA is a operating measure commonly used by financial analysts. It allows analysts to concentrate on the outcome of operating decisions while excluding the impacts of non- operating decisions such as interest expenses,tax rates or large non cash items such as depreciation and amortization.

    By minimising the non-operating effects which are not similar to each company,EBITDA allows investors to focus on operating profitability as a singular measure of performance. This type of analysis is important when comparing the profitability of similar companies across a single industry or companies operating in different tax brackets. 

FULL FORM OF ECB

WHAT IS ECB

       ECB stand for External Commercial borrowing. It is an instrument used to facilitate Indian companies to raise money outside the country in foreign currency. The government of India allows Indian corporates to raise money through ECB for expansion of their existing business or for fresh investments.

     ECB is a commercial loan,bonds,buyer's credit,bonds, securitized instrument,and suppliers credit availed from non resident with a minimum average maturity of 3 years.

 ROUTES FOR ECB 

     ECB can be availed by automatic route or by approval route. Under automatic route the government has set some eligibility norms with respect to industry,amounts,end use etc. If a company comply all the prescribed norm,it can raise money without any prior approval.

    Under approval route the borrowers have to take permission of the government/The reserve bank of India before borrowing through ECB. RBI has issued formal guidelines and circulars specifying rules for borrowing. 

ADVANTAGE OF ECB

      There are so many advantage of the external commercial borrowing some of which are as follows --

1.   Arranging fund through ECB is cheaper because of the low interest rate.

2.   ECB is a form of loan and after a certain period of time it can be repaid. So it does not dilute stake in the company and debtors do not enjoy voting right.

3.   The economy will be benefited as the government may allow the direct inflow into the sectors which have potential to grow. For instance the government may allow the higher percentage of ECB  funding in infrastructure and SME sector. This will help in overall development of the country.

4.     Availability of fund at lower interest rate may improve the profitability of the companies and will help in economic growth.

DISADVANTAGE OF ECB 

    There are some disadvantage of the ECB also which are as follows  --

1.   Sometimes availability of funds at cheaper rate may inculcate careless attitude on the company's side resulting in excessive borrowing. This will finally lead to higher debt on the balance sheet that may affect many financial rations adversely.

 2.   Higher debt on the company's balance sheet is viewed negatively by the rating agencies that may result in possible downgrade by the rating agency which eventually might increase the cost of debt.

       This will also tarnish the company's image in the market.

3.   Since ECB borrowing is in foreign currency, the repayment of the principle and interest amount needs to made in foreign currency hence company exposes to exchange rate risk.

FULL FORM OF EBITA

WHAT IS EBITA

        EBITA stand for Earning before interest,taxes and amortization. It is a measuring tool of a company's profitability used by investors. It is important measuring tool for comparison of one company to another in the same business. EBITA provides a accurate view of the company's actual performance over a period of time.

        A company's EBITA is considered by investors and analyst to be more precise representation of its real earning. EBITA helps to assess that how much cash flow a company has to to reinvest in the business or to pay dividends. It also indicates the capability of company's operation.

HOW EBITA IS CALCULATED

      The EBITA is calculated by subtracting the cost of goods sold and operating expenses less amortization expenses from gross revenue.

EBITA =    Total Revenue -Cost of goods sold -(Operating Expenses + Amortization )

     EBITA is also calculated by indirect method by adding the interest expenses, taxes,and amortization back to net income such as --

   EBITA=   Net income+ Interest+Taxes+ Amortization.

      

FULL FORM OF ROI

WHAT IS ROI

      ROI stand for Return on Investment. It can be defined as ROI measures the profit or loss earned on an investment related to the amount of money invested. ROI is usually expressed in the form of percentage and basically used for personal financial decisions,to compare a company's profitability or to compare the efficiency of returns on different investments.

HOW ROI IS CALCULATED

     The ROI is calculated with the following formula --

 ROI =       Net Profit

                  ___________         x  100

                 Cost of investment

     

A company may use the calculation to compare the ROI on different potential investments, while an investor can use ROI to calculate a return on stock.

  Calculation of ROI can be understood with the followings examples --

 An investor buys stocks of total amount Rs 5000/. He holds of stock for two year and after that he sold it for the Rs 6500/. So the net profit would be Rs 1500/ and ROI will be calculated as--

  ROI =      1500

                  --------- x100

                 5000

           =   30%

       Hence Return on capital will be 30%

 To get the exact return on capital the brokerage,taxes and other given charges will be deducted from the profit amount.

   

FULL FORM OF MOU

WHAT IS MOU

       The full form of MOU is Memorandum of Understanding. MOU is a formal agreement between two or more parties which express the mutual consent on an issue. MOU is commonly used by the business entity to establish official partnerships. It contains all important details and has a high degree of mutual respect and attention. It is popular multinational ,international relations because it takes short time to ratify. It may also used to modify existing legal treaties.  

FULL FORM OF MRP

WHAT IS MRP

         MRP stand for maximum retail price. It is the price calculated by the manufacturer and it is the highest price that can be charged for a product sold in India. All retail products in India must be marked with MRP. Shopkeepers cannot charge more price than the maximum retail price printed on the product. However retailer may sell products less than the MRP to attract customers to their shop.

HOW MRP IS DECIDED

        The maximum retail price of a product is fixed by the manufacturer only,government does not have any role to play in deciding the price of the product. The maximum retail price of a product is calculated by the manufacturers on the basis of various aspects like production cost of the product,taxes which is to be paid,transportation cost,freight,commission paid to retailers,advertisement costs and profit margin for the manufacturers,dealers,distributors etc.

BENEFIT OF DECIDING MRP  

     The main objective of the putting maximum retail price on the product is to ensure that shopkeepers will not charge more than the price printed on the product. It is good for customers and they will not be overcharged or cheated by the shopkeepers. Companies fix maximum retail price so that they can easily compete in the industry and earn profit to run their business.

DISADVANTAGE OF MRP

1.  To decide the maximum retail price company has the sole authority to decide MRP. Government has a negligible role in deciding the price of any product so there may be a chance that the manufacturers may decide unjust amount as the MRP of the product.

2.   The price may be unfair in certain states for example MRP includes all the charges like transportation,freight etc but the states which are near to the company where transportation charge is negligible and price may be less but customers have to pay maximum retail price so the advantage which is to be pass on all the players of the business,but it did not happen,profit goes to manufacturers and retail shopkeepers.

3.    This will impact the purchasing power of customers if the price is fixed by manufacturer are so high. It will ultimately impact a lot of retailers which are working on a small scale and they can loose their customers faith and base because such things are beyond their control.

   

     

FULL FORM OF NPA

WHAT IS NPA

         NPA stand for Non Performing Asset. It is the amount of loan or advance given to customers for which the principle or interest payment is not  recovered for at least 90 days. This loan or advance will comes in the category of  Non Performing Asset or bad loans.

       This can be understand with the following example --

     Suppose a bank has given a loan of Rs 5,000000/ to a company with interest rate of 10% for the period of 5 years. The monthly installment is Rs106235/ . If that company fails to repay the monthly installment for three months then the loan amount with interest will become Non Performing Asset for the bank. NPA reduces cash flow for the bank. It disrupts budget and decreases earning and reduce the liquidity to provide loans for other customers or business entity.

   The NPA are classified into three category ---

SUBSTANDARD ASSET: 

    In this category the asset which remains for more than 90 days but less than 12 months.

DOUBTFUL ASSET:

   In this category the asset which remains NPA or overdue for more than 12 months.

LOSS ASSET:

   It refers to those assets which are doubtful and considered as non-recoverable by banks,internal or external auditor and by central banks inspectors.

      

FULL FORM OF OEM

WHAT IS OEM

      OEM stand for Original Equipment Manufacturer. It is defined as a company whose manufactured goods are used as components in the products of another company after assembling they sell the finished items to the users.
     In the computer industry,OEM may refer to the company that buys products and then incorporates or rebrand them into a new product under its own company name.
    The concept of OEM can be understand with the following example --
  It can be understand with the basic example with the relationship between an auto manufacturer and a maker of auto parts. The brake cylinders are manufactured by a wide variety of  OEMs. The OEM parts are then sold to an auto manufacturer where it is assembles them into a car. After assembled completely the completed car is then send to auto dealers to be sold to individual consumers.