Different Forms Of Democracy

Different Forms Of Democracy The preceding paper describes democracy in detail. It discusses different forms of democracy. The difference between liberal democracy and democracy has also been analyzed in this paper. It puts light on the seven institutional guarantees of liberal democracy and examines each of the institutional guarantees in detail. Most of the people around the globe are familiar to the word democracy but its meaning is often misunderstood by the ton at occasions when marshal law administrators, single-party governments and military groups acquire the support of millions of people by claiming that they are a democratic government. The word democracy has been derived from the Greek word demos which means people. Democracy can be defined as a form of government in which the supreme power belongs to the people of the nation. In some forms of democracy this power is exercised, directly, by the people of the nation. In other forms, however, this power is being exercised by the agents that are being elected by the general public. According to Abraham Lincoln, democracy can be defined as the government of the people, by the people, for the people. (Cincotta , 2006) The word democracy is often used in place of freedom, but these two words are not synonyms. Although, democracy consists of ideas and theories regarding freedom but it also consists of rules, procedures and policies that have been carved through history. Democracy, therefore, can be defined as an institutionalized form of freedom. (Cincotta, 2006) Types of Democracy: The five major types of democracy are as follows: Direct Democracy: This form of democracy does not advocate the selection of rulers by the general public or the ruled instead it denies the concept that there is any difference between the ruler and the ruled. In such a form all the adult citizens get together to shape the laws and policies for the nation. In other words, we can say that the government and the general public become one. (Democracy,) Deliberative Democracy: It is the form of democracy in which the general public, not just the political personalities, deeply get engaged in the process of public decision making. The citizens also take part in the problem solving processes. The citizens, who are the representatives of a wide variety of stakeholders, who are generally trained by professional experts come together to discuss various facts and concepts from the diversified point of views. They talk to each other and consider various options that are presented to them. They also critically analyze the tension that underlies most of the decisions related to public issues. In the end, the citizens as well as the politicians reach a conclusion or a decision that is being made by both public and political opinion. Most of the countries, nowadays, are trying to employ the deliberative form of democracy. (Carcasson Sprain, 2010) Representative Democracy In this form of democracy people elect representatives who rule them. Most of the nations in todays world are representative democracies. In such nations, a flag represents a nation, a lawyer represents a client and elected politicians represent the nation on international and national levels. The rulers or the representatives allow the general public to have considerable influence or control over them. According to Joseph Schumpeter, representative democracy gives the general public the right to accept or refuse the person who would rule them. (Democracy,) Liberal Democracy Liberal democracy can also be defined as limited government. It limits the authority of the government in order to secure the liberty and the freedom of the public. It also seeks to defend the rights of the minority and to protect the minority from the major danger that is being by democracy, the tyranny and oppression of the majority. This form of government can be defined as the rule of the law rather than the men. In this form of government the rulers are subjected to follow the constitutions and laws. These constitutions consist of rules regarding individual rights. If a citizen feels that he is being exploited by the government then he can raise a dispute in the judicial institutions. (Democracy,) Illiberal or Electoral Democracy In this type of democracy, the leaders or rulers pay no or very little attention to the rights of the individual citizens. The process of democracy is limited to the elections. And in some cases the elections are also disrupted by the influence of the rulers and they may turn the election process in favor of their party. (Democracy,) Difference between Democracy and Liberal Democracy Democracy or presidential form of government can be defined as a form of government where strong decisions are being made immediately in a short period of time and are implemented as well. It is a form of government where the voice of people is valued more than the freedom of the government. According to Schmitt, liberal democracy can be identified with plurality, compromise and indecision. In such a system the freedom of individuals is valued a lot. The decision making process in this form is very lengthy and weak. The decisions made in this form of government, are temporary and do not provide a permanent solution for any problem. Nowadays, in the parliamentary or a liberal form of government the real decisions are being made by the executive committee members behind the closed doors and the parliament is being treated as a debate house. This indicates that the present form of liberal democracy is moving away from its basic objective, public decision making. In a democracy, unlike l iberal democracy where public decision making is practiced, there is a set of rules and regulations which is being followed to make all the important decisions. According to Schmitts theoretical approach, a democracy may exist in a real world but it is nearly impossible for a liberal democracy to exist and sustain in the real world. (Stewart, 2002) Institutional Guarantees Provided by Liberal Democracy For the liberal democracy to exist, it must fulfill the following institutional guarantees; Freedom to Form and Join Organizations All the individuals have complete freedom to join the organization (political) of their choice or they may form their own political organization. For example, the United States of America allows its citizens to freely form and join political organizations. There are about 29 minor and 5 major political parties in the United States of America. Freedom of Expression: All the citizens of a liberal democracy have a right to express their views freely. For example, public demonstrations in different democratic states clearly represent the fact that the general public in democratic states has a complete right to express their views. Inclusive Suffrage: This condition provides all individuals the right to cast the vote and to elect the government. The liberal democracy, for example, provides men and women an equal right to cast the vote whereas; in the previous times women were being neglected in the case of casting votes. The Right to Run for an Office This means that the individual citizens as well as the political candidates have a right to run for a political office in a liberal democracy. For example, in different states many private candidates run for different offices, such as Ross Perrot, who ran for US presidential elections in 1992. Right of Political Leaders to Compete for Vote and Support A liberal democracy allows all the political candidates to compete with each other in legal ways to get their voted and support. For example, different political leaders arrange mass political campaigns in order to convince the people to vote for them. Availability of Alternative Information It is the right of the people to have complete information about all the alternative options available for them. The liberal governments, for example, provide all possible information and complete profiles (including their asset count, net income) of the potential candidates to the general public. Free and Fair Elections It is the responsibility of the government in a liberal democracy to conduct free and fair elections so that the deserving candidate may win and the people may get what they want. For instance, the government posts military officials at various polling stations so that the elections may be conducted peacefully. In addition to that, various policies have been designed by a number of governments in order to avoid vote tracking. Conclusion The increase in transition, from an authoritarian form of government, to democracy has led towards an increase in the number of corrupt governments and system failures. In a survey conducted in third world countries, it was reported that the majority of the people (about 74 percent) said that democracy is the best form of government but they (about 55 percent) also indicated that they would not mind having an authoritarian leader if that would lead towards better economic conditions. Democracy has its pros and cons, but if managed properly, this form of government can bring the best out of a nation and its people. (Howard, 2011)

History Of Human Behavior Essay -- essays research papers

PSYCHOLOGICAL HUMAN BEHAVIOR Psychology is the very important perspective for human nature. It is very much important for the individual environment. Psychology is very much a product of the Western tradition.   Ã‚  Ã‚  Ã‚  Ã‚  Whereas a new psychology of the year 2000 contains both the eastern as well as the Western tradition (Frey, 04/06). Psychologist self-concept attitudes. Its related to Psyche means call a persons self concepts it includes what a person perceives from the persons the integrate part of human mind motion connected to those with bodily concepts. It however reflects true relationship with the mind-body concept. ATTITUDES AND SOCIAL COGNITION addresses those domains of social behavior in which cognition plays a major role, including the interface of cognition with overt behavior, affect, and motivation. (Primis, 119). Major perspectives in Now, what’s the concept of psychoanalysis is also a psychology at this point includes psychoanalysis, humanism and sociobiology. Very important perspective. As a therapy, psychoanalysis is based on observation that Individuals are often unaware of many of the factors that determine their emotions and Behavior. (Frey, 04/06). It is, in addition, a method for learning about the mind, and also a theory, a way of understanding the processes of normal everyday mental functioning and the stages of normal development from infancy to old age. (psychology.com). Furthermore, since psychoanalysis seeks to explain how the human mind works, it contributes insight into whatever the human mind produces.(apa.org) Sigmund Freud was the first psychoanalyst. Many of his insights into the human mind, which seemed so revolutionary at the turn of the century, are now widely accepted by most schools of psychological thought. Although others before and during his time had begun to recognize the role of unconscious mental understanding its importance. Although his ideas met with antagonism and resistance, Freud believed deeply in the value of his discoveries and rarely simplified or exaggerated them for the sake of popular acceptance. (apa.org) He saw that those who sought to change themselves or others must face realistic difficulties. But he also showed us that, while the dark and blind forces in human nature sometimes seem overwhelming, psychological understanding, by enlarging the realm of reason and responsi... ...ture. But Both Freud and Wilson said a lot about the core of the personality, no matter in what instincts they explained it. It was their ultimate goal towards the concept of interpreting the human beings focusing towards the aspects and moralities of the core effecting the human nature. Their theories helped a lot for the human society in finding the relative core of the human nature. And these theories of Psychology is still much worth regarding the personality as well as the human instinct of true self, true nature as well as their behavior. BIBILOGRAPHY:- 1. Freud Sigmund, Civilization and Its Discontents, Tr:- James Stretcher, New York, W.W. Norton & Company, 1985. 2. Wilson, Edward O., On Human Nature, Massachusetts, Harvard University Press, 1998. 3. Frankl, Victor E., Mans Search For Meaning, New York, Washington Square Press, 1985. 4. Social Science, Primis, New York, Mc Graw Hill, 1998. 5. http://www.psych.nwu.edu 6. http://www.psychology.com 7. http://www.psychology.ucdavis.edu 8. http://www.psychology.net 9. http://baldwin.apa.org:88/best/index.html 10. http://www.apa.org 11. http://www.runet.edu/~lridener/courses/SOCBIO.HTML

Illnesses of the 1700s Essay

Illnesses of the 1700’s There were many illnesses in the 1700’s and 1800’s that were life threatening, or even a sure death, that are in current times, not a concern, or highly curable. Examples are smallpox, bubonic plague, typhus, mumps, influenza, yellow fever, and measles. These diseases almost single handedly wiped out several native American tribes, and wreaked havoc on European communities. Small pox, overtook half of Boston in 1763. There was no cure, and to this day there is not one, however, it is now completely preventable by vaccine. This disease killed 1 out of 6 people that it infected, and left the rest with horrible scars for the rest of their lives. Inoculation began with smallpox, and spread very quickly due to this particular disease. Documentation of Native American artifacts show that small pox swept these communities, wiping out many of the skilled artisans, thus resulting in a lack of recorded history for long periods of time for these affected tribes. Bubonic Plague was also rampant in this period of time, wiping out whole communities. This highly contagious disease is now preventable and treatable, however, even with prompt treatment with antibiotics, the mortality rate is 15%. With housing conditions the way that they were during these times, people lived with many extended family members in one house, and in close quarters with those around them. Bubonic Plague spread like wildfire, affecting thousands in a short period of time. Influenza, which in current medicine, also has a vaccine, and treatments available, swept Europe prior to and after the 1700/1800’s. It is recorded that influenza in Europe infected over 500 million people, with a mortality of 12 million. It is hard to imagine someone dying from the flu, however, even now, the influenza virus mutates from year to year. This makes it necessary for a new vaccine to be developed based on the infections from a particular region so that it is effective in preventing that particular strain. Mumps, measles and rubella also had a high mortality rate, and like the majority of the diseases that affected millions in that timeframe, they are highly preventable with today’s medicine in the form of vaccines. There is no treatment once these viruses are contracted, so the symptoms are treated for both. The MMR vaccine was developed to prevent all 3 of these viruses, and are given with the standard vaccines that children get at their newborn check up. Typhus was a disease spread by lice, that caused massive losses of population. Areas that were overcrowded and communities that were undernourished fell victim to this epidemic. The lice spread quickly and thus spread the disease, people often wore the same clothes for long periods of time, allowing the lice to multiply and spread among households. Even once this disease was discovered, and was being investigated for treatment, the Doctor’s researching both became infected and died from it. It is rare to find this virus active today, and it is treatable with antibiotics. The way that the government deals with outbreaks of diseases differs today from what the procedure was in the 1700/1800’s. The standard protocol then was to quarantine entire communities, without proper testing, and unknown incubation periods, it was difficult for containment to take place. In current times, we have the CDC, a government agency dedicated to discovery, treatment, and containment of communicable diseases. They provide information to the public and are responsible for keeping vaccines updated and effective. In this way, our communities are protected from the rapid spread of epidemics. As one can see, the way that diseases are treated and prevented now, varies wildly from the lack of modern medicine that was available to even the most modern societies in the 1700s.

Report Of Pratibha Industries Essay Example Pdf - Free Essay Example

Sample details Pages: 10 Words: 3120 Downloads: 7 Date added: 2017/06/26 Category Business Essay Type Analytical essay Did you like this example? The annual report of Pratibha Industries Ltd is analysed for years FY2007-2008 and FY2008-2009. The report attempts to analyse the financial health of the company from the point of view of an investor making an investment decision. The report compares the performance of PIL over the last three years by analysing the financial statements of the company. Don’t waste time! Our writers will create an original "Report Of Pratibha Industries Essay Example Pdf" essay for you Create order Also peer comparison has been done with three companies for a comprehensive view. The ratios are calculated based on the financial data available in the companys Annual Reports of FY07-08 and FY08-09.The competitor data has been taken from www.moneycontrol.com and the key ratios are calculated using the same method as ratios of PIL for accurate comparison. INTRODUCTION The financial statements provide information about the financial position of the firm. The detail of the analysis is useful in making some vital economic decisions. Pratibha Industries Ltd. (PIL) is a turnkey project contractor, engaged in constructing buildings and infrastructure development projects. It designs and constructs integrated water transmission (including treatment, re-cycling, storage and distribution projects), water treatment plants, elevated and underground reservoirs, mass housing including real estate projects, commercial complexes, pre-cast design and construction and road construction services. ABOUT THE COMPANY Company Background Pratibha Industries Limited (PIL) is the flagship company of Pratibha Group, incorporated in 1983. The company that started with manufacturing of SFRC manhole covers, frames and various other pre-cast products, has now positioned itself as a niche player in infrastructure space with expertise in water management and other urban infrastructure projects. Apart from having presence in lucrative water segment that accounts over 60% of the companys current order book, PIL has enlarged its presence into urban infrastructure projects like road construction, airport terminals, mass housing projects, commercial complexes, railway stations, tunneling projects and into other verticals of infrastructure development like EPC contracts in Oil and Gas distribution, thermal power plants and other large projects in construction space. Further the company has also backward integrated by setting up a pipes manufacturing facility for captive consumption as well as to tap the tremendous opportunities t hat lies in pipes segment. Significant Accounting policies The Financial Statements are prepared to comply in all material aspects with the applicable accounting principles in India, the accounting standards issued by the Institute of Chartered Accountants of India and the relevant provisions of The Companies Act, 1956. The Financial Statements of the Company and its subsidiary companies (which are not in the nature of joint ventures) have been consolidated on a line-by-line basis by adding together the book values of like items of assets, liabilities, income and expenses. The intra group balances and intra group transactions and un-realized profits or losses resulting from intra group transactions are fully eliminated. Investments in associate companies have been accounted for, by using equity method whereby investment is initially recorded at cost and the carrying amount is adjusted thereafter for post acquisition change in the Companys share of net assets of the associate. The Consolidated Financial Statements include the interest of the Company in JVCs, which has been accounted for using the proportionate consolidation method of accounting and reporting. For further details on the Accounting policies refer to Appendix 4. No change in accounting policy noticed in the annual report for the past 3 years. The Balance Sheet, Profit and Loss and Cash Flow Statements have been duly audited the year ending at 31st March every year. COMPANY FINANCIAL AND DATA ANALYISIS Note: All figures such as sales etc. are in Indian Rupee (Rs.) and in terms of 10 Million (1crore). Key Ratio Calculations: Growth Ratios: The growth percentage provides a brief snap shot of the companys status as compared to the previous year. Profitability Ratios: AÂÂ  class of financial metrics that are used to assess a businesss ability to generateÂÂ  earnings as compared toÂÂ  its expenses and other relevant costs incurred during a specific period of time. Comment on Profitability Ratios: Return on Capital Employed: It is the ratio of operating profit generated during a period and the average long-term capital invested in the business during the period. The ROCE has decreased in 2009 after an increase in 2008. The reason for decrease is mainly because secured loans rose by 69.7% and unsecured loans were again availed back in 2009. These loans were present in 2007 and settled in 2008. Return on Net worth: The return on net worth ratio has increased to 19.9% after a slight dip in 2008.The dip was largely due to 107 % increase in reserves and surplus during 2008. Gross, Operating and Net Profit Margin: All the three profit margins have been dropping year on year. In 2009 the profits drop can be mainly attributed to the increase in expenses. Though there is increase in all the expenses generally due to high commodity prices and inflation ; those a bit out of proportion are the Directors Remuneration which has increased about 250% and Legal fees and other professional charges by about 83%. In 2008 the drop in profit can be attributed to the raise in cost of work done which again can be traced to heavy purchases a steep rise of 249%. Turnover/Activity Ratios: Turnover ratios are used to measure how many times a companys inventory is replaced in a specific period of time. By dividing the cost of goods sold by average inventory we can calculate the turnover ratio. When the company is producing and selling its goods quickly then it is said to have a high turnover ratio. Comment on Turnover/Activity Ratios: Fixed Asset Turnover: This ratio has decreased to less than half of 2007 value. This is due to the substantial increase in the investment in plant and machinery as the company is in expansion. But it also shows that the company is not making use of its capital to the optimum. Debtor Turnover: This ratio has increased to 7.29 in 2008 and dropped to 5.71 in 2009 again. This is due to the drop in sundry debtors in 2008 and rise in 2009. Inventory Turnover: This ratio has dropped substantially due to the increase in inventory. Its due to increased work in progress in 2008. It increased again in 2009 due to decreased work in progress. But overall it implies poor sales by the company during the period. Liquidity Ratios: Liquidity ratios are concerned with the ability of the business to meet its short term financial obligations. Comment on Liquidity Ratios: Current ratio: The current ratio has fallen from 3.04 to 1.33 in 2008 and again increased to 1.89. The fall in 2008 was due to increased liabilities (274% rise) in the form of sundry creditors and advances deposits. Whereas In 2009 while the current assets increased; the liabilities actually decreased leading to a higher current ratio. The increase shows margin available will be more and chances of the firms meeting its commitments will also be more. But still a ratio of 2:1 is expected as ideal. Acid Test Ratio/Quick Ratio: The pattern of acid test ratio is very similar to the current ratio discussed above. The only difference being the inventory. In 2008 the work in progress was high which lead to a high inventory and low ratio while in 2009 the work in progress decreased which increased the ratio. The ratio is above 1 and hence indicates that the business is safe and would be able to pay short term liabilities from its liquid assets. Leverage Ratios: Leverage ratios are used to calculate theÂÂ  financial leverage of a company to get an idea of the companys methods of financingÂÂ  or to measure its ability to meet financial obligations. Comment on Leverage Ratios: Interest cover ratio: The Interest cover ratio measures the amount of operating profit available to cover interest payable. It has remained relatively stable over the three years in spite of increasing operating profit. This is due to the fact that the interest paid to the bank and interest on finance for vehicle and construction equipment has increased year on year. Still the interest cover is adequate for the period. Debt-Equity ratio: This ratio indicates what proportion of equity and debt the company is using to finance its assets. In 2008 this ratio had almost halved and then again rose by 1.5 times in 2009. As mentioned earlier it is due to the unsecured loans in 2007 which were paid back in 2008 and again availed back in 2009. But still it reflects a less dependence on debt, as the company is in a capital intensive sector, the financial needs have been fulfilled by issue of equity shares. Investment Ratios: These are mainly used by the investors to find out the performance of a business as an investment. The investors will be interested in the company making some good profit from the investment made. Dividend payout ratio: The dividend payout ratio is decreasing year on year. This is due to the fact that the company is paying a constant dividend in spite of increasing profits. The company can make use of major part of its profit for the future growth. Dividend yield ratio: It shows how much a company pays out in dividends each year relative to its share price. In the absence of any capital gains, the dividend yield is the return on investment for a stock. The dividend yield ratio is varying with the market price as the dividend payout is constant at Rs.2 per share year on year. Earnings per share: The Earnings per share is increasing year on year which is a good sign. Its due to increasing profit every year. P/E Ratio: The PE ratio had peaked out in 2008 due to high price of the share. Due to 2009 recession the price of the share bottomed out and the P/E ratio was the lowest at 2.97 at 31st march 2009.This indicates that the stock was cheap on that day. Other Inferences: The company had a high exposure in Indian stock market through mutual funds. These mutual funds were amounting to RS.85.01 Crore. These were sold off for RS 3.42 crore which represents a loss of 95.97%. PEER COMPARISON The peer comparison has been done with Unity Infra (UI), Madhucon projects(MCN)and JMC Projects(JMC). Mostly the charts are self explanatory. PIL has shown good profitability as compared to peers with a high ROCE and RONW and a good operating profit margin. Liquidity ratios have come down from undesirably high levels to acceptable ones. The Interest cover is lower and debt to equity is higher than peers. Though the dividend payout is less the EPS of the company is fairly high .It can be said that overall the company is having good standing in comparison with its peers. MARKET PERCEPTION The current price and values as on 24/Dec/2009 are shown below. The markets have rebounced after the effects of recession and today the stock price is relatively higher than the year end 31st March 2009. The Analystcommunity/Broker view point has been attached in APPENDIX 5. For a detailed analysis the stock price chart has been attached in APPENDIX 6. OHLC(open high low close ) chart has ben chosen for 52 week period. The 52 week low was around 53.05 (due to FII outflow from indian markets in march ). All the stock prices were vey low at that point. The OHLC shows the markets open, previous close, todays high and low. The market is pretty range bound and not trending and so the stock price has witnessed a small fall. (Indian point of view). CONCLUSION The Financial Analysis helps us conclude that the company in spite of having some glitches has performed well , especially compared to the peers and the stock is not overvalued and hence has a good investment potential in the long term. Future Potential PIL has a robust order backlog of around Rs 2100 crore (nearly three times its trailing four quarter sales) as on date and the same is expected to grow to Rs 3500 crore by fiscal FY 2011, which provides strong revenue visibility. While maintaining its strong foothold in the water segments, PIL has diversified its business profile into urban infrastructure projects and other verticals of infrastructure development like EPC contracts in Oil and Gas distribution, thermal power plants and other large projects in construction space. This will insulate the company from any slowdown in any particular segment. The company has backward integrated by setting up HSAW pipe facility, which has strengthened its margin in water segment and also allowed an entry into a lucrative space of oil and gas EPC contracts. Pratibha Industries has sizable presence in Mumbai Metropolitan Region and is expanding aggressively in other states in order to diversify the state specific delays and risk. Risk Concerns Projects included in the order book of the company may be delayed or cancelled for various reasons, which will adversely affect the revenues and earnings of the company. As for PIL, most of its projects are running on schedule. However, one cannot ignore the inherent risks associated with the business. Fluctuation in raw material prices is another concern. A sharper-than expected increase in the prices of these raw materials could impact PILs Margins. Future order inflows might get affected due to the economic slowdown. Any slowdown in government implementation and awarding of contracts in water management and urban infrastructure, will impact companys earning. R D expenditures of total turnover was 1.9% 9. REFERENCES Ashok Leyland website https://www.ashokleyland.com BFA report available at https://chintan.agarwal.googlepages.com/BFA_Report_R9.pdf Performance report available at https://www.ashokleyland.com/performanceReport.jsp Business Line website https://www.thehindubusinessline.com Moneycontrol website https://www.moneycontrol.com ICICI direct website https://www.icicidirect.com Definitions for Profitability ratios available at: https://www.investopedia.com/terms/p/profitabilityratios.asp?viewed=1 Definitions for Turnover ratios available at https://www.investorwords.com/5832/turnover_ratio.html Definitions for Liquidity ratios available at https://www.advfn.com/Help/liquidity-ratio-112.html Definitions for Solvency ratios available at https://www.investopedia.com/terms/s/solvencyratio.asp Chadwick, Leslie (2002). Essential Finance and Accounting for Managers. Prentice Hall Dyson, J R., (1997). Accounting for Non- Accounting Students. Fourth edi tion, Pitman Publishing. APPENDICES Appendix 1 Appendix 2 Appendix 3 Appendix 4 Policy Comment Accounting Convention The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India and the provisions of the Companies Act, 1956. The Company is following accrual basis of accounting on a going concern concept. Accounting policies are suitably disclosed as notes annexed to the Balance Sheet and Profit Loss Account. Fixed assets and depreciation/amortisation Fixed Assets are stated at cost of acquisition, including any attributable cost for bringing the asset to its working condition for its intended use, net of taxes and duties less accumulated depreciation and impairment loss and includes financing cost for period up to the date of readiness of use. Capital Work-in-Progress is stated at the amount expended up to the date of Balance Sheet including preoperative expenditure. Depreciation on fixed assets has been provided on Straight Line method at the rates and in the m anner prescribed in Schedule XIV to the Companies Act, 1956. As per ASI 2- Accounting For Machinery Spares, the machinery spares specific to a particular asset have been capitalized. Investments Current investments are carried at the lower of cost and quoted/fair value, computed category wise. Investments, intended to be held for more than a year, from the date of acquisition, are classified as long-term. they are stated at cost. Provision for diminution in the value of long-term investments is made only if such a decline is other than temporary. Inventories Cost of inventories comprise of all cost of purchase, cost of conversion and other cost incurred in bringing them to their respective present location and condition. Raw materials are valued at lower of cost or net realizable value. Foreign currency transactions All Monetary assets and liabilities are converted at the exchange rate prevailing on the last day of the year. All Monetary assets and liabilities are converted at the exchange rate prevailing on the last day of the year. Revenue recognition The Company follows the percentage completion method, on the basis of physical measurement of work actually completed at the balance sheet date, taking into account the contractual price and revision thereto by estimating total revenue and total cost till completion of the contract and the profit so determined has been accounted for proportionate to the percentage of the actual work done. Sales are accounted net of excise duty, Sales Tax, Discount, Returns and Rejections. Sales are recognized on dispatch of material from the factory of the company. Borrowing Costs: Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the cost of such assets. All other borrowings costs are expensed out. Contingent Liabilities: These are disclosed by way of notes on the Balance Sheet. Provision is made in the accounts in respect of those contingencies, which are likely to materialize into liabilities after the year end, till the finalization of accounts and have material effect on the position stated in the Balance Sheet. Segment Accounting Segment accounting policies are in line with the accounting policies of the Company. Segment revenue includes sales and other income directly identifiable with/ allocable to the segment including inter- segment revenue. Income which relates to the Company as a whole and not allocable to segments is included in Unallocable Corporate Income. Segment result includes margins on inter- segment transactions, which are reduced in arriving at the profit before tax of the Company. Segment assets and liabilities include those directly identifiable with the respective segments. Segment revenue resulting from transactions with other business segments is accounted on the basis of transfer price agreed between the segments. Such transfer prices a re either determined to yield a desired margin or agreed on a negotiated basis. Appendix 5 ANALYST COMMENTS BY GEOJIT BNP PARIBAS: Please be informed that the Pratibha Industries, a leading engineering and construction company, has been doing reasonably well. A company with annual turnover of Rs.805 crore in Financial Year 08 -09, earned net profit of Rs.45 crore in that year and the earnings per share (EPS) is Rs.26.80. For the six months ended September 09, net profit of the company is Rs.24 crore. which translates to an EPS of Rs.14.38 on a half yearly basis. Book value of the share as on March 09 balance sheet is Rs.134. At the current price (Rs.the price / book value ratio is 2.08. The figures as stated above indicate that the stock is not over valued and you may consider a buy. However, the sluggish trends in the construction and engineering industry in recent days due to the on going economic slowdown may check any strong upmove in the stock prices in the immediate term and it looks better to buy for the long term. Buying in small lots in different occasions would help you to accumulate t he stock cheap, if the price is falling.