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Mon 19th January, 2015

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I. DIRECT TAXES :These types of taxes are directly imposed & paid to Government of India. There has been a
steady rise in the net Direct Tax collections in India over the years, which is healthy signal.
Direct taxes, which are imposed by the Government of India, are:
(1) Income Tax :Income tax, this tax is mostly known to everyone. Every individual whose total income exceeds
taxable limit has to pay income tax based on prevailing rates applicable time to time.
(2) Capital Gains Tax :Capital Gain tax as name suggests it is tax on gain in capital. If you sale property, shares, bonds
& precious material etc. and earn profit on it within predefined time frame you are supposed to
pay capital gain tax. The capital gain is the difference between the money received from selling
the asset and the price paid for it.
(3) Securities Transaction Tax :A lot of people do not declare their profit and avoid paying capital gain tax, as government can
only tax those profits, which have been declared by people. To fight with this situation
Government has introduced STT (Securities Transaction Tax ) which is applicable on every
transaction done at stock exchange. That means if you buy or sell equity shares, derivative
instruments, equity oriented Mutual Funds this tax is applicable.
(4) Perquisite Tax :Earlier to Perquisite Tax we had tax called FBT (Fringe Benefit Tax) which was abolished in
2009, this tax is on benefit given by employer to employee. E.g If your company provides you
non-monetary benefits like car with driver, club membership, ESOP etc. All this benefit is
taxable under perquisite Tax.
(5) Corporate Tax :Corporate Taxes are annual taxes payable on the income of a corporate operating in India. For
the purpose of taxation companies in India are broadly classified into domestic companies and
foreign companies.
II. INDIRECT TAXES :(6) Sales Tax :Sales tax charged on the sales of movable goods. Sale tax on Inter State sale is charged by Union
Government, while sales tax on intra-State sale (sale within State) (now termed as VAT) is
charged by State Government.
(7) Service Tax :Most of the paid services you take you have to pay service tax on those services. This tax is
called service tax. Over the past few years, service tax been expanded to cover new services.
(8) Value Added Tax :The Sales Tax is the most important source of revenue of the state governments; every state has
their respective Sales Tax Act. The tax rates are also different for respective states.
(9) Custom duty & Octroi (On Goods) :Custom Duty is a type of indirect tax charged on goods imported into India. One has to pay this
duty , on goods that are imported from a foreign country into India. This duty is often payable at
the port of entry (like the airport). This duty rate varies based on nature of items.
(10) Excise Duty :An excise or excise duty is a type of tax charged on goods produced within the country. This is

opposite to custom duty which is charged on bringing goods from outside of country. Another
name of this tax is CENVAT (Central Value Added Tax).
(11) Anti Dumping Duty :Dumping is said to occur when the goods are exported by a country to another country at a price
lower than its normal value. This is an unfair trade practice which can have a distortive effect on
international trade. In order to rectify this situation Central Govt. imposes an anti dumping duty
not exceeding the margin of dumping in relation to such goods.
III. OTHER TAXES :(12) Professional Tax :If you are earning professional you need to pay professional tax. Professional tax is imposed by
respective Municipal Corporations. Most of the States in India charge this tax.
(13) Dividend distribution Tax :Dividend distribution tax is the tax imposed by the Indian Government on companies according
to the dividend paid to a companys investors. Dividend amount to investor is tax free. At present
dividend distribution tax is 15%.
(14) Municipal Tax :Municipal Corporation in every city imposed tax in terms of property tax. Owner of every
property has to pay this tax. This tax rate varies in every city.
(15) Entertainment Tax :Tax is also applicable on Entertainment; this tax is imposed by state government on every
financial transaction that is related to entertainment such as movie tickets, major commercial
shows exhibition, broadcasting service, DTH service and cable service.
(16) Stamp Duty, Registration Fees, Transfer Tax :- If you decide to purchase property than in
addition to cost paid to seller. You must consider additional cost to transfer that property on your
(17) Education Cess , Surcharge :Education cess is deducted and used for Education of poor people in INDIA. All taxes in India
are subject to an education cess, which is 3% of the total tax payable. The education cess is
mainly applicable on Income tax, excise duty and service tax.
(18) Gift Tax :If you receive gift from someone it is clubbed with your income and you need to pay tax on it.
This tax is called as gift tax.
(19) Wealth Tax :Wealth tax is a direct tax, which is charged on the net wealth of the assessee. Wealth tax is
chargeable in respect of Net wealth corresponding to Valuation date.Net wealth means all assets
less loans taken to acquire those assets. Wealth tax is 1% on net wealth exceeding 30 Lakhs (Rs
3,000,000). So if you have more money, assets you are liable to pay tax.
(20) Toll Tax :At some of places you need to pay tax in order to use infrastructure (road, bridge etc.) build from
your money given to government as Tax. This tax is called as toll tax. This tax amount is very
small amount but, to be paid for maintenance work and good up keeping.

Ushodaya Enterprises Private Limited 2014


Economy to grow in the range of 5.4 5.9 per cent in 2014-15 overcoming sub-5 percent
Growth slowdown was broad based, affecting in particular the industry sector.
Aided by favourable monsoons, agricultural and allied sector registered a growth of 4.7 per
cent in 2013-14.
Industry and Service sectors also witnessed slowdown.
Reforms needed for long term-growth prospects on 3 fronts- low and stable inflation regime,
tax and expenditure reform and regulatory framework.
Survey suggests removal of restriction on farmers to buy, sell and store their produce to
customers across the country and the world.
Rationalisation of subsidies on inputs such as fertilizer and food is essential.
Government needs to eventually move towards income support for farmers and poor
The fiscal policy for 2013-14 was calibrated with two-fold objectives; first, to aid growth
revival; and second, to reach the FD level targeted for 2013-14.
The Budget for 2013-14 followed the policy of revenue augmentation and expenditure
rationalization to contain government spending within sustainable limits.
The fiscal outcome of the central government in 2013-14 was achieved despite the
macroeconomic challenges of growth slowdown, elevated levels of global crude oil prices, and
slow growth of investment.
High inflation, particularly food inflation, was the result of structural as well as seasonal
IMF projects most global commodity prices are expected to remain flat during 2014-15.
The RBI with a view to restoring stability to the foreign exchange market, hiked short term
interest rate in July and compressed domestic money market liquidity.
RBI has indentified five sectors -- infrastructure, iron and steel, textiles, aviation and mining as
the stressed sectors.
Public sector banks (PSBs) have high exposures to the industry sector in general and to such
stressed sectors in particular.
The New Pension System (NPS), now National Pension System, introduced for the new
recruits who join government service on or after January 2004, represents a major reform of
Indian pension arrangements.

The next wave of infrastructure financing will require a capable bond market.
The Indias balance-of-payments position improved dramatically in 2013-14 with current
account deficit at US $ 32.4 billion as against US$ 88.2 billion in 2012-13.
Indias foreign exchange reserves increased from US$ 292.0 billion at end March 2013 to US$
304.2 billion at end march 2014.
Indias external debt has remained within manageable limits due to the external debt
management policy with prudential restrictions on debt varieties of capital inflows.
World trade
World trade volume which decelerated to 2.8 per cent in 2012 has shown signs of recovery in
2013, albeit slow with a 3.0 per cent growth.
The sharp fall in imports and moderate export growth in 2013-14 resulted in a sharp fall in
India's trade deficit by 27.8 per cent.
In April-May 2014, trade deficit declined by 42.4 per cent.
Record food grains and oilseeds production of 264.4 million tonnes (mt) and 32.4 mt is
estimated in 2013-14.
Horticulture production estimated at 265 mt in 2012-13 has exceeded the production of
foodgrains and oilseeds for the first time.
Due to higher procurement, stocks of foodgrains in the Central Pool have increased to 69.84
million tonnes as on June 1, 2014.
The net availability of foodgrains increased to 229.1 million tonnes and that of edible oils to
12.7 kg per year in 2013.
The latest gross domestic product (GDP) estimates show that industry grew by just 1.0 per cent
in 2012-13 and slowed further in 2013-14, posting a modest increase of 0.4 per cent.
India ranked 12th in terms of services GDP in 2012 among the worlds top 15 countries in
terms of GDP (at current prices).
India has the second fastest growing services sector with its CAGR at 9.0 per cent, just below
Chinas 10.9 per cent, during 2001 to 2012.
In 2013-14, FDI inflows to the services sector (top five sectors including construction)
declined sharply by 37.6 per cent to US$ 6.4 billion compared to an overall growth in FDI
inflows at 6.1 per cent resulting in the share of the top five services in total FDI falling to nearly
Major sector-wise performance of core industries and infrastructure services during 2013-14
shows a mixed trend. While the growth in production of power and fertilizers was comparatively
higher than in 2012-13, coal, steel, cement, and refinery production posted comparatively lower
growth. Crude oil and natural gas production declined during 2013-14.
The performance of the coal sector in the first two years of the Twelfth Plan has been subdued
with domestic production at 556 MT in 2012-13 and 566 MT in 2013-14.
A total length of 21,787 km of national highways has been completed till March
2014 under various phases of the NHDP. In spite of several constraints due to the economic
downturn, the NHAI constructed 2844 km length in 2012-13, its highest ever annual

achievement. During 2013-14 a total of 1901 km of road construction was completed.

From the infrastructure development perspective, while important issues like delays in
regulatory approvals, problems in land acquisition & rehabilitation, environmental clearances,
etc. need immediate attention, time overruns in the implementation of projects continue to be one
of the main reasons for underachievement in many of the infrastructure sectors.
Human- induced Greenhouse gas (GHG) emissions are growing and are chiefly responsible for
climate change.
The world is not on track for limiting increase in global average temperature to below 2oC,
above pre-industrial levels. GHG emissions grew on average 2.2 per
cent per year between 2000 and 2010, compared to 1.3 per cent per year between 1970 and 2000.
There is immense pressure on governments to act through two new agreements on climate
change and sustainable development, both of which will be global frameworks for action to be
finalized next year.
The cumulative costs of Indias low carbon strategies have been estimated at around USD 834
billion at 2011 prices, between 2010 and 2030.
Indias Human Development Rank and performance
According to HDR 2013, India has slipped down in HDI with its overall global
ranking at 136 (out of the 186 countries) as against 134 (out of 187 countries) as per HDR 2012.
It is still in the medium human development category.
The poverty ratio (based on the MPCE of ` 816 for rural areas and `1000 for urban
areas in 2011-12 at all India level), has declined from 37.2 per cent in 2004-05 to 21.9 per cent in
In absolute terms, the number of poor declined from 407.1 million in 2004-05 to
269.3 million in 2011-12 with an average annual decline of 2.2 percentage points during 2004-05
to 2011-12.
During 2004-05 to 2011-12, employment growth [CAGR] was only 0.5 per cent, compared to
2.8 per cent during 1999-2000 to 2004-05 as per usual status.





Kaziranga Wild Life Sanctuary, Assam

Assam, India
Manas Wild Life Sanctuary, Assam
Assam, India
Mahabodhi Temple Complex at Bodh Gaya,
Bihar, India
Humayuns Tomb, Delhi
Delhi, India
Qutb Minar and its Monuments, Delhi
Delhi, India
Churches and Convents of Goa
Goa (Old Goa), Goa,India
Champaner-Pavagadh Archaeological Park,
Gujarat, India
Group of Monuments at Hampi
Bellary District,Karnataka, India
Group of Monuments at Pattadakal
Buddhist Monuments at Sanchi, Madhya
Madhya Pradesh, India
Rock Shelters of Bhimbetka, Madhya Pradesh Madhya Pradesh, India
Khajuraho Group of Monuments, Madhya
Madhya Pradesh, India
Ajanta Caves
Ellora Caves
Elephanta Caves
Chhatrapati Shivaji Terminus (formerly Victoria
Sun Temple, Konrak
Puri District,Orissa, India
Keoladeo National Park
Bharatpur,Rajasthan, India
Jantar Mantar, Jaipur
Jaipur,Rajasthan, India
Brihadeeswarar temple,Gangaikonda
Cholapuram,Tamil Nadu,India
Great Living Chola Temples
Temple,Darasuram,Tamil Nadu,India
Temple,Thanjavur,Tamil Nadu,India
Group of Monuments at Mahabalipuram
Mahabalipuram,Tamil Nadu,India
Agra Fort, Uttar Pradesh
Uttar Pradesh,India
Fatehpur Sikri, Uttar Pradesh
Uttar Pradesh,India
Taj Mahal, Uttar Pradesh
Uttar Pradesh,India
Mountain Railways of India
Darjeeling Himalayan Railway ,Darjeeling, West
Nilgiri Mountain Railway Ooty, Tamil Nadu
Kalka-Shimla Railway,Himachal Pradesh India








Nanda Devi and Valley of Flowers National

Sundarbans National Park

Western Ghats


Hill Forts of Rajasthan


Rani ki vav(The Queen's Stepwell)

Great Himalayan National Park

Chamoli District,Uttarakhand,India
Bangladesh,West Bengal(India)
Agasthyamalai Sub-Cluster
Periyar Sub-Cluster
Anamalai Sub-Cluster
Nilgiri Sub-Cluster
Talakaveri Sub-Cluster (five
Kudremukh Sub-Cluster (five
Sahyadri Sub-Cluster
Amber Sub-Cluster
Patan, Gujarat,India
Himachal Pradesh, India




1. Fiscal deficit target retained at 4.1% of GDP for current fiscal and 3.6 for 2015-16 and 3% for
2. Revenue Deficit seen at 2.9% for FY15
3. Aim to achieve 7-8 per cent economic growth rate in next 3-4 years: Finance Minister
4. Committed for growth of agriculture at the rate of 4 per cent.

5. Defence FDI cap raised to 49% from 26% at present

6. Exemption limit on income tax from Rs. 2 lakh to Rs. 2.5 lakh.
7. For senior citizens, the exemption on income has been raised to Rs. 3 lakh per annum.
8. Tax-free cap on home loan interest from Rs. 1.5 to Rs. 2 lakh.
9. No change in Income tax rates and slabs .
10. Annual PPF ceiling to be enhanced to Rs 1.5 lakh, from Rs 1 lakh
11. Women Safety:
i. Outlay of Rs. 50 crores for a pilot scheme on road safety
ii. Another 150 crores to be spent by MHA on safety on women in larger cities
iii. 'Beti Bachao, Beti Padhao Yojana' - 100 crores
12. Rs 3600 cr set aside for National Rural Drinking Water: Finance Minister
13. Rural housing: Rs 8000 crore for national housing banking programme
14. Metro rails in PPP mode; Rs. 100 cr set aside for metro scheme in Ahmadabad and Lucknow
15. Rs. 100 crores to set up virtual classrooms
16. Rs. 500 crores for setting up 5 more IIMs and IITs
17. Rs. 7,060 crore allocated for building new cities
18. Jaitley announces e-visas to promote tourism
19. The government is committed to the welfare of scheduled castes and tribes.
20. Rs. 200 crores credit scheme for start-ups by those from scheduled castes and tribes
21. Government is committed to providing 24x7 electricity in all houses
22. 15 Braille press to come up.
23. Currency note with Braille-like signs
24. Promote FDI selectively in sectors. India needs a boost in job creation in the manufacturing
25. 24x7 electricity in all houses
26. Minimum pension of Rs.1000 per month to all PP schemes.
27. Rs. 50,548 cr proposed for SC development
28. Bharat Swach Yojna proposed for hygiene and cleanliness.
29. Rs. 200 crore for Statue of Unity, a statue of Sardar Patel in Gujarat.
30. Rs. 1000 cr for irrigation plan named Pradhan mantri krishi sichayin yojana.
31. Rs. 7060 cr for creating smart cities.
32. Assam and Jharkhand to get Centre of Excellence on farming
33. Rs. 100 crores for modernization of Madrasas
34. Jaitley announces Skill India, a programme to train youth for jobs
35. Equity in PSU banks to be raised through share sale to the public
36. Rural housing: Rs 8000 crores for national housing banking programme
37. MGNREGA programme to made more productive
38. Senior Citizens Pension Plan Extended Till August 2015
39. National Adaption Fund for climate change to be set up
40. Rs. 500 crore for price stabilization fund.
41. 100 soil testing laboratories across the country.
42. Agriculture University in AP and Rajasthan, and Horticulture University in Haryana,
Telangana; Rs. 200 cr set aside
43. Crisis Management Center for women at Delhi
44. Start up village at Rs 100 crore to promote entrepreneurship among rural youth.

45. Rs. 14,389 crores for PM Sadak Yojana

46. Rs. 200 crore allocated to set up six textiles clusters







Shri Narendra Modi

Prime Minister and also in-charge of: Ministry of Personnel

Public Grievances and Pensions; Department of Atomic
Energy; Department of Space; and All important policy
issues and all other portfolios not allocated to any Minister.


Shri Raj Nath Singh

Minister of Home Affairs.


Smt. Sushma Swaraj

Minister of External Affairs; and Minister of Overseas India



Shri Arun Jaitley

Minister of Finance; Minister of Corporate Affairs; and

Minister of Defence.


Shri M. Venkaiah Naidu

Minister of Urban Development; Minister of Housing and

Urban Poverty Alleviation; and Minister of Parliamentary


Shri Nitin Jairam Gadkari

Minister of Road Transport and Highways; and Minister of



Shri D.V. Sadananda Gowda

Minister of Railways.


Sushri Uma Bharati

Minister of Water Resources, River Development and Gang



Dr. Najma A. Heptulla

Minister of Minority Affairs.


Shri Nitin jairam Gadkari (in place of Shri

Gopinathrao Munde who died on 3 June

Minister of Rural Development; Minister of Panchayati Raj

and Minister of Drinking Water and Sanitation.


Shri Ramvilas Paswan

Minister of Consumer Affairs, Food and Public Distribution


Shri Kalraj Mishra

Minister of Micro, Small and Medium Enterprises.


Smt. Maneka Sanjay Gandhi

Minister of Women and Child Development.


Shri Ananthkumar

Minister of Chemicals and Fertilizers.


Shri Ravi Shankar Prasad

Minister of Communications and Information Technology;

and Minister of Law and Justice.


Shri Ashok Gajapathi Raju Pusapati

Minister of Civil Aviation.


Shri Anant Geete

Minister of Heavy Industries and Public Enterprises.


Smt. Harsimrat Kaur Badal

Minister of Food Processing Industries.


Shri Narendra Singh

Minister of Mines;


Minister of Steel; and Minister of Labour and Employment.


Shri Jual Oram

Minister of Tribal Affairs.


Shri Radha Mohan Singh

Minister of Agriculture.


Shri Thaawar Chand Gehlot

Minister of Social Justice and Empowerment.


Smt. Smriti Zubin Irani

Minister of Human Resource Development.


Dr. Harsh Vardhan

Minister of Health and Family Welfare.

: : : Important Summits/Meetings in 2014 : : :

1. 07-JUN-2014 - 40th G-7 summit 2014 held at Brussels

2. 27-MAR-2014 - 3rd Nuclear Security Summit 2014
3. 20-FEB-2014 - Wharton India Economic Forum to be held in Pennsylvania
4. 15-FEB-2014 - G-4 Director Generals for UN Affairs met in New Delhi
5. 14-FEB-2014 - Third World Congress on Agro-Forestry
6. 09-JAN-2014 - ASSOCHAM organized Seventh Global Insurance Summit at Hyderabad
7. 31-DEC-2013 - International Petroleum Conference 2014 held in New Delhi
8. 07-DEC-2013 - 9th WTO Ministerial Conference concluded at Bali, Indonesia
9. 06-DEC-2013 - 8th Asia Gas Partnership Summit held at New Delhi
10. 29-NOV-2013 - International Heavy Minerals Conference 2013 held at Visakhapatnam, AP

11. 9th North East Business Summit Began in Assam

12. 3rd BRICS International Competition Conference inaugurated by Prime Minister of India in
New Delhi.
13. 22nd CHOGM Summit ended with adoption of three declarations in Colombo, Sri Lanka.
14. 11th ASEM Foreign Ministers Meeting held at New Delhi
15. India's First Naval and Maritime Exposition Conference Concluded at Cochin, Kerala.


BRICS (Brazil, Russia, India, China and South Africa) Summits
4th BRICS Summit 2012 New Delhi, India
5th BRICS Summit 2013 Durban, South Africa
G-8 Annual Summits Group of Eight (G8) Countries France, Germany, Italy, Japan, United
Kingdom, United States of America, Canada, Russia.
37th G8 Meeting 2011 Deauville, France
38th G8 Meeting 2012 David camp, USA
39th G8 Summit 2013 County Fermanagh, UK
40th G8 Summit 2014 Russia
G-20 Summits
7th G 20 Meeting 2012 Los Cabos, Mexico
8th G 20 Meeting 2013 Saint Petersburg, Russia
9th G 20 Meeting 2014 Brisbane, Australia
SAARC Summits SAARC South Asian Association for Regional Cooperation
17th SAARC Summit 2011 Addu, Maldives
18th SAARC Summit 2013 Kathmandu,Nepal
ASEAN Summits ASEAN Association of South East Asian Nation
19th ASEAN Summit 2011 (November) Bali, Indonesia
20th ASEAN Summit 2012 (April) Phnom penh, Cambodia
21th ASEAN Summit 2012 (November) Phnom penh, Cambodia
ASEAN-India Summit
9th ASEAN-India Summit 2011 Bali, Indonesia
10th ASEAN-India Summit 2012 Phnom penh, Cambodia
East Asia Summit (EAS) EAS meetings are held after annual ASEAN leaders meetings.
6th East Asia Summit 2011 Bali, Indonesia
7th East Asia Summit 2012 Phnom penh, Cambodia
IBSA Summits IBSA Dialogue Forum - India, Brazil, South Africa.
5th IBSA Summit 2011 Pretoria, South Africa
6th IBSA Summit 2013 India
APEC Summits APEC Asia Pacific Economic Cooperation
23rd APEC summit 2011 Honolulu, USA
24th APEC Summit 2012 Vladivostok,Russia
25th APEC Summit 2013 Medan/Jakarta, Indonesia
26th APEC Summit 2014 China
27th APEC Summit 2015 Philippines
28th APEC Summit 2016 Lima, Peru
OPEC Seminars OPEC Organization of Petroleum Exporting Countries
4th OPEC International Seminar 2009 Vienna, Austria

5th OPEC International Seminar 2012 Vienna, Austria

NAM Summits NAM Non-aligned Movement
16th NAM Summit 2012 Tehran, Iran
17th NAM Summit 2015 Caracas,Venezuela
SCO Meetings SCO Shanghai Cooperation Organization
SCO Meeting 2011 Astana, Kazakhstan
SCO Meeting 2012 Beijing, China
SCO Meeting 2013 Kyrgyzstan
NATO (North Atlantic treaty organization) international conference on Afghanistan will be held
in Chicago (USA)
Asian Development Bank (ADB) Annual Meetings Annual meeting of the board of governors of
the Asian Development Bank (ADB) held every year.
ADB Annual Meeting 2012 Manila, Philippines
ADB Annual Meeting 2013 New Delhi, India
WTO Ministerial Conferences
8th WTO Ministerial Conferences2011 Geneva, Switzerland
9th WTO Ministerial Conferences2013 (Expected) -Bali, Indonesia


South Asian Association for Regional Cooperation (SAARC)

The South Asian Association for Regional Cooperation (SAARC) is an organisation of South
Asian nations, which was established on 8 December 1985 when the government of Bangladesh,
Bhutan, India, Maldives, Nepal, Pakistan, and Sri Lanka formally adopted its charter providing
for the promotion of economic and social progress, cultural development within the South Asia
region and also for friendship and co-operation with other developing countries. It is dedicated
to economic, technological, social, and cultural development emphasising collective selfreliance. Its seven founding members are Sri Lanka, Bhutan, India, Maldives, Nepal, Pakistan,
and Bangladesh. Afghanistan joined the organisation in 2007.Meetings of heads of state are
usually scheduled annually; meetings of foreign secretaries, twice annually. It is headquartered
in Kathmandu, Nepal.

Regional Centres
The SAARC Secretariat is supported by following Regional Centres established in Member
States to promote regional co-operation. These Centres are managed by Governing Boards
comprising representatives from all the Member States, SAARC Secretary-General and the
Ministry of Foreign/External Affairs of the Host Government. The Director of the Centre acts as
Member Secretary to the Governing Board which reports to the Programming Committee.

SAARC Agricultural Centre (SAC), Dhaka

SAARC Meteorological Research Centre (SMRC), Dhaka
SAARC Tuberculosis Centre (STC), Kathmandu
SAARC Documentation Centre (SDC), New Delhi
SAARC Human Resources Development Centre (SHRDC), Islamabad
SAARC Coastal Zone Management Centre (SCZMC), Maldives
SAARC Information Centre (SIC), Nepal
SAARC Energy Centre (SEC), Pakistan
SAARC Disaster Management Centre (SDMC), India
SAARC Development Fund (SDF), Bhutan
SAARC Forestry Centre (SFC), Bhutan
SAARC Cultural Centre (SCC), Sri Lanka

BRICS is the acronym for an association of five major emerging national economies: Brazil,
Russia, India, China and South Africa.The grouping was originally known as "BRIC" before the
inclusion of South Africa in 2010. The BRICS members are all developing or newly
industrialised countries, but they are distinguished by their large, fast-growing economies and
significant influence on regional and global affairs; all five are G-20 members. As of 2013, the
five BRICS countries represent almost 3 billion people, with a combined nominal GDP of
US$16.039 trillion, and an estimated US$4 trillion in combined foreign reserves.Presently, South
Africa holds the chair of the BRICS group. The BRICS have received both praise and criticism
from numerous quarters.

BRICS Development Bank

The BRICS Development Bank is a proposed development bank of the BRICS nations. Its
establishment was agreed to by BRICS leaders at the 2013 BRICS summit held in Durban,
South Africa on 27 March 2013. Among its goals is to provide funding for infrastructure
projects, and create a "Contingent Reserve Arrangement" worth $100 billion which will help
member countries counteract future financial shocks.

Association of Southeast Asian Nations (ASEAN)

The Association of Southeast Asian Nations is a geo-political and economic organisation of ten
countries located in Southeast Asia, which was formed on 8 August 1967 by Indonesia,
Malaysia, the Philippines, Singapore and Thailand. Since then, membership has expanded to
include Brunei, Burma (Myanmar), Cambodia, Laos, and Vietnam. Its aims include accelerating
economic growth, social progress, cultural development among its members, protection of
regional peace and stability, and opportunities for member countries to discuss differences
ASEAN covers a land area of 4.46 million km, which is 3% of the total land area of Earth, and
has a population of approximately 600 million people, which is 8.8% of the world's population.
The sea area of ASEAN is about three times larger than its land counterpart. In 2011, its
combined nominal GDP had grown to more than US$ 2 trillion. If ASEAN were a single entity,
it would rank as the eighth largest economy in the world.
Headquarters is at Jakarta, Indonesia.
Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation(BIMSTEC)
The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation
(BIMSTEC) is an international organisation involving a group of countries in South Asia and

South East Asia. These are: Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and
On 6 June 1997, a new sub-regional grouping was formed in Bangkok and given the name BISTEC (Bangladesh, India, Sri Lanka, and Thailand Economic Cooperation). Myanmar attended the
inaugural June Meeting as an observer and joined the organization as a full member at a Special
Ministerial Meeting held in Bangkok on 22 December 1997, upon which the name of the
grouping was changed to BIMST-EC. Nepal was granted observer status by the second
Ministerial Meeting in Dhaka in December 1998. Subsequently, full membership has been
granted to Nepal and Bhutan in 2004.
In the first Summit on 31 July 2004, leaders of the group agreed that the name of the grouping
should be known as BIMSTEC or the Bay of Bengal Initiative for Multi-Sectoral Technical and
Economic Cooperation.

MekongGanga Cooperation (MGC)

The MekongGanga Cooperation (MGC) was established on November 10, 2000 at Vientiane at
the First MGC Ministerial Meeting. It comprises six member countries, namely India, Thailand,
Myanmar, Cambodia, Laos and Vietnam. They emphasised four areas of cooperation, which are
tourism, culture, education, and transportation linkage in order to be solid foundation for future
trade and investment cooperation in the region. The organization takes its name from the Ganga
and the Mekong, two large rivers in the region.

Economic Cooperation Organization (ECO)

The Economic Cooperation Organization (ECO) is an intergovernmental organization involving
seven Asian and three Eurasian nations, part of the South-central Asian Union. It provides a
platform to discuss ways to improve development and promote trade, and investment
opportunities. The ECO is an ad hoc organization under the United Nations Charter (Chap. VIII).
The common objective is to establish a single market for goods and services, much like the
European Union. ECO's secretariat and cultural department are located in Tehran, its economic
bureau is in Turkey and its scientific bureau is situated in Pakistan. The organization's population
is 416,046,863 and the area is 8,620,697 km. The organization was founded by Turkey, Iran and
Pakistan. ECO's Charter was signed on 15 March 1995 in Islamabad, Pakistan.

Shanghai Cooperation Organisation (SCO)

The Shanghai Cooperation Organisation or SCO is a Eurasian political, economic and military
organisation which was founded in 2001 in Shanghai by the leaders of China, Kazakhstan,
Kyrgyzstan, Russia, Tajikistan, and Uzbekistan. Except for Uzbekistan, the other countries had
been members of the Shanghai Five, founded in 1996; after the inclusion of Uzbekistan in 2001,
the members renamed the organisation. Headquarters is in Beijing, China.

Cooperation Council for the Arab States of the Gulf or Gulf Cooperation Council
The Cooperation Council for the Arab States of the Gulf (CCASG), also known as the Gulf
Cooperation Council (GCC), is a political and economic union of Arab states bordering the
Persian Gulf, namely Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab
In December 2011, Saudi Arabia proposed that the GCC deepen their integration to form a
confederation. Objections have been raised against the proposal by the other countries.
There have been discussions regarding the future membership of Jordan, Morocco, and Yemen

Headquartered at Riyadh, Saudi Arabia.

Asia Cooperation Dialogue (ACD)

The Asia Cooperation Dialogue (ACD) is an intergovernmental organization created in 2002 to
promote Asian cooperation at a continental level and to help integrate separate regional
cooperation organizations such as ASEAN, SAARC and the Gulf Cooperation Council.

It is the main objective of the former Thai Prime Minister to form the Asia Cooperation Dialogue
or the forerunner to the ASIAN UNION. The ACD's main members states are Kuwait, Pakistan,
Iran, Bahrain, Sri Lanka, Turkey, Thailand, China and Japan, the so-called major nine ACD

Organization of the Petroleum Exporting Countries (OPEC)

OPEC (Organization of the Petroleum Exporting Countries) is an oil cartel whose mission is to
coordinate the policies of the oil-producing countries. The goal is to secure a steady income to
the member states and to secure supply of oil to the consumers.
OPEC is an intergovernmental organization that was created at the Baghdad Conference on
September 1014, 1960, by Iraq, Kuwait, Iran, Saudi Arabia and Venezuela. Later it was joined
by nine more governments: Libya, United Arab Emirates, Qatar, Indonesia, Algeria, Nigeria,
Ecuador, Angola, and Gabon. OPEC was headquartered in Geneva, Switzerland before moving
to Vienna, Austria, on September 1, 1965.
OPEC was formed at a time when the international oil market was largely separate from
centrally planned economies, and was dominated by multinational companies. OPEC's Policy
Statement' states that there is a right of all countries to exercise sovereignty over their natural
Headquarters is in Vienna, Austria.

Non-Aligned Movement (NAM)

The Non-Aligned Movement (NAM) is a group of states which are not formally aligned with or
against any major power bloc. As of 2012, the movement has 120 members and 17 observer
The organization was founded in Belgrade in 1961, and was largely conceived by India's first
prime minister, Jawaharlal Nehru; Indonesia's first president, Sukarno; Egypt's second president,
Gamal Abdel Nasser; Ghana's first president Kwame Nkrumah; and Yugoslavia's president, Josip
Broz Tito. All five leaders were prominent advocates of a middle course for states in the
Developing World between the Western and Eastern blocs in the Cold War. The phrase itself was
first used to represent the doctrine by Indian diplomat Vengalil Krishnan Krishna Menon in
1953, at the United Nations.

North Atlantic Treaty Organization (NATO)

is an intergovernmental military alliance based on the North Atlantic Treaty which was signed on
4 April 1949. The organization constitutes a system of collective defence whereby its member
states agree to mutual defense in response to an attack by any external party. NATO's
headquarters are in Brussels, Belgium, one of the 28 member states across North America and
Europe, the newest of which, Albania and Croatia, joined in April 2009. An additional 22
countries participate in NATO's "Partnership for Peace", with 15 other countries involved in
institutionalized dialogue programs. The combined military spending of all NATO members
constitutes over 70% of the world's defence spending.
Headquarters at Brussels, Belgium.

Commonwealth of Nations
The Commonwealth of Nations is an intergovernmental organisation of 53 member states that
were mostly territories of the former British Empire. The Commonwealth operates by
intergovernmental consensus of the member states, organised through the Commonwealth
Secretariat, and non-governmental organisations, organised through the Commonwealth
Foundation Headquarters at London, United Kingdom.

Group of 15 (G-15)
The Group of 15 (G-15) is an informal forum set up to foster cooperation and provide input for
other international groups, such as the World Trade Organization and the Group of Eight. It was
established at the Ninth Non-Aligned Movement Summit Meeting in Belgrade, Yugoslavia, in
September 1989, and is composed of countries from Latin America, Africa, and Asia with a
common goal of enhanced growth and prosperity. The G-15 focuses on cooperation among
developing countries in the areas of investment, trade, and technology. Membership has since
expanded to 17 countries, but the name has remained unchanged. Chile, Iran and Kenya have
since joined the Group of 15, whereas Yugoslavia is no longer part of the group; Peru, a
founding member-state, decided to leave the G-15 in 2011.
Membership :17
Mexico Zimbabwe
Headquarters: Geneva, Switzerland

Brazil Chile

Sri Lanka


GROUP OF 24 (G24)

The Group of 24 (G24), a chapter of the G-77, was established in 1971 to coordinate the
positions of developing countries on international monetary and development finance issues and
to ensure that their interests were adequately represented in negotiations on international
monetary matters. The group, which is officially called the Intergovernmental Group of TwentyFour on International Monetary Affairs and Development, is not an organ of the International
Monetary Fund, but the IMF provides secretariat services for the Group. Its meetings usually
take place twice a year, prior to the International Monetary and Financial Committee and
Development Committee meetings, to enable developing country members to discuss agenda
items beforehand. Although membership in the G-24 is strictly limited to 24 countries, any
member of the G-77 can join discussions. China has been a "special invitee" since the Gabon
meetings of 1981.
Member states
Democratic Republic of the Congo
Gabon Ghana
Ivory Coast
South Africa
Sri Lanka
Trinidad and Tobago Venezuela

GROUP OF 77 (G77)
The Group of 77 at the United Nations is a loose coalition of developing nations, designed to
promote its members' collective economic interests and create an enhanced joint negotiating
capacity in the United Nations. There were 77 founding members of the organization, but the
organization has since expanded to 132 member countries.

India is a memeber state in G 77.

European Union (EU)

The European Union (EU) is an economic and political union of 28 member states that are
located primarily in Europe. The EU operates through a system of supranational independent
institutions and intergovernmental negotiated decisions by the member states. Institutions of the
EU include the European Commission, the Council of the European Union, the European
Council, the Court of Justice of the European Union, the European Central Bank, the Court of
Auditors, and the European Parliament. The European Parliament is elected every five years by
EU citizens. The EU's de facto capital is Brussels.
Member states
Czech Republic Denmark
United Kingdom

Group of Eight (G 8)
The Group of Eight (G8) is a forum for the governments of eight of the world's largest national
economies as nominal GDP with higher HDI; not included are India at 9th, Brazil at 7th and
China at 2nd. The forum originated with a 1975 summit hosted by France that brought together
representatives of six governments:France, the Federal Republic of Germany, Italy, Japan, the
United Kingdom, and the United States, thus leading to the name Group of Six or G6. The
summit became known as the Group of Seven or G7 the following year with the addition of
Canada. The G7 is composed by the 7 developed wealthiest countries on Earth (as national net
wealth) and by the 7 developed wealthiest countries on Earth by GDP, and it remains active
despite the creation of the G8. In 1997, Russia was added to the group which then became
known as the G8. The European Union is represented within the G8 but cannot host or chair

G 8 Member States:
Canada, France, Germany, Italy, Japan, Russia, United Kingdom and the United States.

G-20 major economies

The Group of Twenty Finance Ministers and Central Bank Governors (also known as the G-20,
G20, and Group of Twenty) is a group of finance ministers and central bank governors from 20
major economies: 19 countries plus the European Union, which is represented by the President
of the European Council and by the European Central Bank. The G-20 heads of government or
heads of state have also periodically conferred at summits since their initial meeting in 2008.
Collectively, the G-20 economies account for approximately 86% of the gross world product
(GWP), 80 percent of world trade (including EU intra-trade), and twothirds of the world
European Union France
South Africa
South Korea Turkey
United Kingdom
United States


Aryabhatta Research Institute of Observational Sciences

Central Drug Research Institute
Central Electronics Engineering Research Institute
Central Food Technological Research Institute
Central Glass and Ceramic Research Institute (CGCRI)
Central Institute for Cotton Research
Central Leather Research Institute
Central Research Institute for Dryland Agriculture
Central Sheep and Wool Research Institute
Central Soil Salinity Research Institute
Fluid Control Research Institute
Harish Chandra Research Institute (HRI)
Indian Agricultural Research Institute (IARI)
Indian Institute of Forestry Research and Education
Indian Institute of Pulses Research
Indian Institute of Science Education and Research (IISER)
Indian Institute of Spices Research
Indian Institute of Sugarcane Research
Indian Institute of Natural Resins and Gums (Indian Lac Research
National Institute Of Technical Teachers Training and Research
Indian Veterinary Research Institute
Indira Gandhi Institute of Development Research
Indira Gandhi Centre for Atomic Research (IGCAR)
Institute for Plasma Research (IPR)
Jawaharlal Nehru Centre for Advanced Scientific Research
National Academy of Agricultural Research Management
National Botanical Research Institute (NBRI)

Adyar, Chennai
New Delhi
New Delhi
Dehradun, Shimla, Ranchi,
Jorhat, Jabalpur, Jodhpur
Kolkata, Pune, Mohali, Bhopal,

National Dairy Research Institute

National Environmental Engineering Research Institute
National Institute of Construction Management and Research
National Institute of Science Education and Research (NISER)
Physical Research Laboratory (PRL)
Raman Research Institute (RRI)
Tata Institute of Fundamental Research (TIFR)
Indian Institute of Horticultural Research (IIBR)

Karnal (Haryana)
Mumbai, Hyderabad

Example 1. Ram sold a cow for Rs.136 at a loss of 15%. At what price should he have sold it to gain 15%?
Sol: Let the cost price be Rs.100 then for 15% loss the S.P = 85 and for 15% profit it should be Rs. 115.
Rs. 85 is the first S.P, then second S.P. = Rs. 115

Rs. 136 is the first S.P =

Example 2. A sells a radio to B at a gain of 10% and B sells it to C at a gain of 5%.If C pays Rs. 462 for it, What did it cost to A?
Sol: Let the cost price of A be Rs. 100
Then the cost price of B be Rs. 110

Example 3. A dealer allows 10% discount on the list price of a certain article and yet makes a profit of Rs. 25% on each article. Find the
cost price of the article when list price is Rs. 50.
Sol: Let the cost price of articles be Rs. 100
Then for 25% profit, S.P. = Rs. 125
If list price is Rs. 100, S.P. = Rs. 90

If S.P. is Rs. 90, list price = Rs. 100

Example 4. A person purchases 90 clocks and sells 40 clocks at a gain of 10% and 50 clocks at a gain of 20%. Had he sold all of them at a
uniform profit of 15% he would have got Rs.40 less. Find the cost price of each clock.
Sol: Let the C.P of clock is Rs. 100 each.
By the profit of 10% S.P. of 40 clocks = = Rs. 4, 400
By the profit of 20% S.P of 50 clocks = = Rs. 6, 000
Total S.P. = Rs. 4400 + Rs. 6, 000 = Rs. 10, 400
C.P of 90 clocks = = Rs. 9000
By the profit of 15% S.P. of 90 clocks = = Rs. 10, 350
Difference = Rs. 10, 400 Rs. 10, 350 = Rs. 50
If the difference is Rs. 50 then C.P. = Rs. 100

If the difference is Rs. 40 then C.P. =

= Rs. 80

Example 5. A man buys 5 horses and 10 cows for Rs. 1,600. He sells horses at a profit of 15% and cows at a Loss of 10% if his over all
profit was Rs. 90, what was the cost price of a horse and a cow?
Sol: Let x be the cost price of a horse and y be the cost price of a cow
C.P. of 5 horses = Rs. 5x and C.P of 10 cows = Rs. 10y

5x + 10y = 1,600..(i)

Since the profit is 15% on the horses


4. Two numbers are in 4:7 ratio. The difference between them is 27. What is the bigger
Sol: Let the numbers be 4x and 7x.
7x 4x = 27
3x = 27
Bigger number is 7x = 7 9 = 63
Short cut: The difference of the terms of the ratio = 7 4 = 3.

But the actual difference between the numbers is 27

3 parts is equal to 27
7 parts (Bigger number) = 27 = 63
5. The ratio of the ages of a man and his son is 7: 3. The average of their ages is 30 years.
What will be the ratio of their ages after 4 years?
Sol: Average age = 30 years
Total age = 2 30 = 60 years.
Let their present ages be 7x and 3x years
7x + 3x = 60



Their present ages are

7 6 and 3 6 = 42 and 18.
Their ages after 4 years
= 42 + 4 and 18 + 4 = 46 and 22 years
ratio = 46 : 22 = 23 : 11
6. Two numbers are in the ratio of 3:4. If 4 is subtracted from each, the remainders are
in the ratio of 5:7. What are the numbers?
Sol: Let the numbers be 3x and 4x.
If 4 is subtracted from each, the numbers will be (3x 4) and (4x 4).
(3x 4) : (4x 4) = 5: 7
Product of means = Product of extremes
(3x 4) 7 = (4x 4) 5
21x 28 = 20x 20
The numbers are 3 8 and 4 8
= 24 and 32

17. In what ratio the two kinds of tea must be mixed together one at Rs. 48 per kg. and another at Rs. 32 per kg. So that the mixture may
cost Rs. 36 per kg. ?

Sol: Mohan and Sohan = 5:6 or

Sohan and Rakesh = 8:5 or

Mohan and Rakesh =

18. What should be subtracted from 15, 28, 20 and 38 so that the remaining numbers may be proportional?

19. If Rs. 279 were distributed among Ram, Mohan and Sohan in the ratio of 15:10:6 respectively, then how many rupees did Mohan
Sol: Ratio in which Ram, Mohan and Sohan got = 15 :10 : 6
Sum of ratios = 15 + 10 + 6 = 31

Share of Mohan
= Rs. 90

20. A bag contains of one rupee, 50 paise and 25 paise coins. If these coins are in the ratio of 2:3:10, and the total amount of coins is
Rs288, find the number of 25 paise coins in the bag.
Sol: Ratio of one rupee, 50 paise and 25 paise coins
= 2:3:10
Ratio of their values = 8:6:10 = 4:3:5
And sum of the ratios of their values = 4 + 3 + 5 = 12

Value of 25 paise coins

No. of 25 paise coins = 120 4 = 480

= Rs. 120

(Writer - G.S.Giridhar)

Number System... >> Page - 7

2. One-seventh of a number is 51. What will be 64% of that number?

(SBI 2008)

(A) 248.12

(B) 228.48

(C) 238.24

(D) 198.36

(E) None of these


hence answer (E)

3. If (16)3 is subtracted from the square of a number, the answer so obtained is 3825.
What is the number ? (SBI 2008)
(A) 69
(B) 59
(C) 89
(D) 79
(E) None of these
Sol: Let the number be x
x2 163= 3825
x = 89
hence answer (C).
4. If (92)2 is added to the square of a number, the answer so obtained is 10768. What is
the number?
(SBI 2008)
(A) 46
(B) 2304
(C) 48
(D) 2116
(E) None of these

3. When 40% of first number is added to the second number the second number
becomes 1.2 times of itself. What is the ratio between the first and second numbers?
(A) 2:3
(B) 4:3
(C) 1:2
(D) 5:7
(E) None of these
Sol: Let the first and second number be x and y

AVERAGE... >> Page - 2

Example 2. A man has 7 children. When their average age was 12 years, the child who was 6 years of age, died. What was the average

age of surviving children 5 years after the death of the above child?
Sol: Average age of 7 children = 12 years
Total age of 6 children = 12 7 = 84 years
Total age of 6 children after the death of a child aged 6 years = 84 6 = 78

Hence the average age of the surviving children =

After 5 yrs. = 13 + 5 = 18 yrs.
Example 3. If the weights of 5 students of a class are 49.6 kg, 39.8 kg, 45.2 kg and 24.6 kg respectively then what is their average
Sol: Total weight of 5 students = 49.6 + 39.8 + 40.8 + 45.2 + 24.6
= 200 kg.

Their average weight =

= 40 kg.

Example 5. A train covers the first 16 km at a speed of 20 km per hour another 20 km at 40 km per hour and the last 10 km at 15 km per
hour. Find the average speed for the entire journey.

Example 6. A vehicle travels from A to B at the speed of 40 km/hr, but from B to A at the speed of 60km/hr. what is its average speed

during the whole journey?

Sol: Let the distance from A to B be x km

Example 7. The average age of a class of 40 boys is 16.95 years. A new boy joins the class and the average age now is 17 years. What is
the age of the new boy?
Sol: The average age of 40 boys = 16.95 years
Total are of 40 boys = 16.95 40
= 678 years
The average age of 41 boys = 17 years
Total age of 41 boys = 17 41
= 697 years
Age of the new boy = 697 678
= 19 years

PARTNERSHIP... >> Page - 3


Example 1: A, B and C enter into partnership. A contributes one-third of the capital while B contributes as much as A and C together
contribute. If the profit at the end of the year amounts to Rs. 840 what would each receive?
Sol: As A contributes one-third of the capital

As profit =

= Rs. 280

Now as B contributes as much as A and C

So Profit of B = Profit of A + Profit of C = Rs. 280 + Profit of C
Profit of B Profit of C = Rs. 280
And Profit of B + Profit of C = Rs. 840 Rs. 280
Adding 2 Profit of B = Rs. 840
Profit of B = Rs. 420
Hence Profit of C = 840 420 - 280
= Rs. 140

Example 2: A is working and B is a sleeping partner in a business. A puts Rs. 5, 000 and B puts in Rs. 6, 000. A receives 12 % of the
profit for Managing the business and the rest is divided in proportion of their capitals. What does each get out of a profit of Rs. 880?
Sol: The amount, which A receives for managing
= 12 % of Rs.880

The amount left = 880 110 = Rs. 770

The amount left is to be divided in the ratio = 5,000 : 6,000 = 5: 6

Total share received by A = 110 + 350 = Rs. 460

Share received by B = Rs. 420

Example 3: A and B enter into a partnership. A contributes Rs. 5000 while B contributes Rs. 40000. After 1 month B withdraws 1/4
part of his contribution and after 3 months from the starting A puts Rs. 2000 more. When B withdraws his money at the same C also
joins them with Rs. 7000. If at the end of 1 year there is a profit of Rs. 1218, what will be share of C in the profit?
Sol: Since the contributions of three partners are different and their times also differ. Therefore, their contributions should be
converted for equal durations. For this, contribution is multiplied by time.
Contribution of A = Rs. 5000 for 12 months + Rs. 2000 for 9 months
Contribution of A for 1 month
= 5000 12 + 2000 9
= 60000 + 18000

= Rs. 78000
Contribution of B = Rs. 4000 for 1 month + of Rs. 4000 for 11 months
Contribution of B for 1 month
= 4000 1 + 3000 11
= 4000 + 33000 = Rs. 37000

Contribution of C = Rs. 7000 for 11 months

Contribution of C for 1 month = 7000 11
= Rs. 77000
Ratio in their contributions = 78000:37000:77000
= 78:37:77
Sum of their ratios = 78 + 37 + 77 = 192

Share of C in the profit =

= Rs. 488.47

Example 4: Alok started a business by investment of Rs.90000 after 3 months Pranav joined him with an investment of Rs. 120000. If
they had a profit of Rs. 96000 after 2 years then what is the difference in the shares of two?
Sol: Aloks investment for 1 month = 9000 24 = 2160000
Pranavs investment for 1 month = 120000 21= 25200
Ratio of their investment = 6:7

Example 5: A, B and C started a business in partnership. A invested Rs. 25 lacks and after 1 year he invested Rs. 10 lacks more. B
invested Rs. 35 lacks in the beginning and withdrew Rs. 10 lacks after 2 years. C invested Rs. 30 lacks. What is the ratio of their profit
after 3 years?
Sol: As investment = 25 3 + 10 2
= Rs. 95 lacks
Bs investment = 35 2 + 25 1
= Rs. 95 lacks

Cs investment = 30 3
= Rs. 90 lacks
Ratio of their investment = 19:19:18
Ratio of their profit = 19:19:18 (because time period is same, i.e., for 3 years)
Example 6: A, B and C investment in a partnership in the ratio of 5:6:8. Ratio of their profit is 5:3:12. Find the ratio of time for their

Example 7: Three people A, B and C invested money in a partnership in the ratio of 4:2:8 ratio of their time of investment is 3:3:2. What is the ratio
of their profit?
Sol: Required ratio = 4 3 : 2 3 : 8 2
= 12 : 6 :16
= 6:3:8


Interest is the additional money paid for the usage of a certain amount.
The amount borrowed is called the principal.
The sum of interest and principal is called the amount.
Simple Interest
If the interest is calculated on same amount of money it is called the simple interest
Simple Interest will be the same for all the years.
If P is the principal, R is the rate of interest, T is time and S.I. the simple interest,

Note: Simple interest is always calculated on principal. Therefore simple interest is

equal for every period.

e.g: 1. What would be the simple interest obtained on an a amount of Rs. 6850 at the
rate of 6 p.c.p.a. after 3 years?
(A) Rs. 2423 (B) Rs. 1233
(C) Rs. 1633 (D) Rs. 1525 (E) None of these
Sol: Here P = Rs. 6850, T= 3 years and R = 6%

Hence answer is (B)

2. How long will it take for Rs. 1250 to become Rs. 1600 at 7% per annum simple
(A) 5 years
(B) 3 years
(C) 4 years
(D) 6 years (E) None of these

Hence Answer is (C)

3. What would be the amount on Rs. 8250 for 4 years at 15% per annum simple
(A) Rs. 13200 (B) Rs. 12300
(C) Rs. 10450
(D) Rs. 11200 (E) None of these

Shortcut: for one year, rate of interest is 15% and for 4 years it is 154 = 60% The
Amount will become 160% If 100% Money = 8250,
Compound Interest:
Interest which is calculated not only on the initial principal but also the accumulated
interest of prior periods.

If A is the amount, C.I. is the compound interest, P is the principal, R is the rate, and T
is the time, then

e.g: What is the compound interest accrued on an amount of Rs. 8000, at the rate of 6%
p.a. at the end of 2 years?
(A) Rs.2545 (B) Rs.2,257.20
(C) Rs.2986 (D) Rs.2775.40 (E) None of these

Shortcut: Amount = 106% of 106% 8000 = 8988.80

C.I. = 8988.80 - 8000 = Rs. 988.80
Note: 1. If the interest is paid half yearly, time is doubled and the rate is halved.
2. If the interest is paid quarterly, time becomes 4 times and the rate becomes onefourth

e.g: What is the interest accrued on Rs.12000 for one and half year at 4% p.a.
half yearly?

Difference between Simple and Compound Interest

Difference between Simple Interest and Compound Interest can be calculated by
There is no difference between Simple and Compound Interest for one year. For 2

e.g: 1. What is the difference between Simple and Compound Interest for two years
on Rs. 24000 at 7% rate?

= Rs. 117.60
2. On what sum does the difference between Simple and Compound Interest for 3 years
at 5% rate will be Rs. 244?

Some other Models of Questions:

1. A sum of money will become Rs. 8060 in 4 years at 6% per annum simple interest.
the sum.

Shortcut: For one year, rate of interest is 6% and for 4 years it is 4 6% = 24% Then
the amount will become 124%
If 124% money is Rs. 8060, 100% money will be

8060 = Rs. 6500

4. A certain sum of money invested at compound interest doubles in 3 years. In how

many years will it become 6 times itself?
Sol: Let the money be Rs. x It becomes Rs. 2x in 3 years As this is compound interest,
2x will be the principal for next period. Therefore, 2x will become 4x in next 3 years
hence Rs. x will become 4x
i.e. 4 times in 3 + 3 = 6 years

5. A man deposits Rs. 12600 in a bank at 5% annual interest. After 8 months he

Rs. 5400 together with interest and after 4 months the remaining money. How much
does he get as interest at the end of the year?
Sol: S.I. of Rs. 12600 for 8 months

He withdrew Rs. 5400 together with interest, the remaining amount

= 12600 - 5400 = Rs. 7200
S.I. on Rs. 7200 at the rate of 5% for 4 months

Total interest = 420 + 120 = Rs. 540