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Directions(1-5): In each of the following questions a short passage is given with one of the lines in the passage missing and represented by a blank. Select the best out of the five answer choices given, to make the passage complete and coherent (coherent mean In recent years we have imported upwards of Rs 1 lakh crore of coal, never mind our large proven reserves, thanks to much policy dithering. The coal secretary has reportedly declined to identify the coal blocks, the estimated reserves contained in them, or specified the auction methodology to be followed.
Q1._____________________________ The way ahead is to transparently overhaul market design and oversight, so that efficient producers can gainfully boost output and supply at fine rates. In tandem, we need improved environmental norms for cent-percent beneficiation of coal in a time bound manner. We simply cannot afford to ferry millions of tonnes of non-combustible shale and rock, wasting energy on haulage and pre-empting freight capacity.
(a)Instead, the Centre plans to issue a consultation paper on commercial mining of coal, which is sensible.
(b)Forty-four years after creating a state monopoly in coal, it is welcome that the government has decided to
permit commercial mining of coal, which remains our main source of commercial energy.
(c) Mining and evacuation without specifying end-use would allow specialist coal producers to realise
economies of scale and scope and competitively seek custom.
(d) The extant policy of a coal monopoly supplemented with captive mines, whether allocated by auction or not, is hugely inefficient and gives rise to a host of rigidities.
(e)Thus, IIMA already enjoys the autonomy, at least on paper, that is reportedly to be provided by the new bill.
Q2. A bit of history would be in order. In 2011-12, IIMA pushed for greater autonomy in its functioning. On
advice from the then HRD minister, even to consider the request, IIMA prepared a document titled ‘Envisioning Future of IIMA’ that detailed the nature of autonomy required and the manner of accountability.
_____________________________After protracted negotiations and few changes suggested by the ministry, the new MoA and the rules were accepted by the government and duly registered with the registrar of societies in 2012. History was created in the functioning of government academic institutions in the country as the autonomy granted under the new MoA and the Rules to IIMA was sweeping. The government developed cold feet after granting IIMA autonomy and no other IIM was accorded similar autonomy subsequently.
(a)Is complete autonomy good for the established IIMs? The last few years have witnessed significant expansion by all IIMs.
(b)Following the submission of the document to the government, the MoA and the rules governing the
institute’s functioning and relationship with the government were redrafted, put up to the board and
submitted to the HRD ministry.
(c) In addition to increasing the numbers admitted to the established programmes, they have expanded into
distance education.
(d) The expansion has been indiscriminate with little control on the quality of offerings.
(e) Most of the features that appear to be in the IIM Bill, 2017 are already enshrined in the MoA and the rules
that govern functioning of IIMA.
Q3. The landscape of management education has seen a major shift in the last five years. While the number of
IIMs has grown to 20, several management schools have closed down due to moderation in the craze for MBA.
_____________________________The shortage of qualified teachers plagues even the established IIMs. The proliferation of IIMs without concern for qualified academic resources to run them has meant severe
dilution of brand IIM. This was pointed out repeatedly by IIMA in the discussions preceding setting up of new IIMs. The quality of education imparted in these new institutions is yet to stabilise at accepted levels.
Complete autonomy to the fledgling IIMs without academic rigour is likely to be counterproductive. The
temptation to start a plethora of programmes opportunistically, including doctoral and bachelor’s
programmes, may further hurt the cause of management education that is already reeling under onslaught on
quality.
(a) The expansion has been indiscriminate with little control on the quality of offerings.
(b) Most of the features that appear to be in the IIM Bill, 2017 are already enshrined in the MoA and the rules
that govern functioning of IIMA.
(c)Most new IIMs however are mere nameplate institutions, several with no director, no permanent
faculty or administrative staff.
(d) Companies would now have to take cognisance of the proposed amendments and accordingly determine their advance tax liability.
(e)Also, the move to extend the MAT credit from the existing 10 years to 15 should assist the IndAS
companies to deal with the transition in a better manner.
Q4. The evidence from across the world is clear – good management schools limit the size and scope of their
operations to sustain quality in every activity they undertake. There is a conscious effort to innovate and
create new paradigms in management from conceptual and empirical research to propose solutions to problems faced by organizations and society. This is not the choice being made by the older IIMs. There is little relevan knowledge creation as that requires perseverance and effort of a very high order. Academic rigor of teaching programmes is also on the decline with the emphasis shifting to revenue generation rather than transfer of cutting edge knowledge. Complete autonomy in such an environment is likely to accelerate the movement of established IIMs on the path to becoming pedestrian institutions. Caution is called for.
_____________________________Else, it could be the beginning of a decline in the reputation that has been built over decades.
(a)The Bill therefore proposes to extend similar autonomy to other IIMs.
(b)Further, the extant amendments do not provide for explicit application of the same for those few companies that volunteered to adopt the standards from April 1, 2015 — even though those were mandatory only from April 1, 2016 — a clarification is expected.
(c)While there were many expectations of corporate India from the Budget, one specific area that they were eagerly awaiting was for the government to put in place the tax framework in relation to Minimum Alternate Tax (MAT) under the India Accounting Standards (IndAS) regime.
(d) The autonomy should be granted with well-crafted accountability metric so that IIMs serve the cause of the country by enhancing the respect they command in management education globally.
(e)Prima facie, this ought to be good news, but is it?
Q5.Further, as per the proposed provisions, certain other adjustments are to be made for items included in Other Comprehensive Income (OCI) and adjustments made to the opening reserves on transition to India Accounting Standards (IndAS) to determine the book profits.The items that are permanently recorded in OCI and never reclassified into the P&L statement will be included in book profits for Minimum Alternate Tax (MAT) on realisation or disposal, except for re-measurement of defined benefit plans which are added to book profits each year. _____________________________ Similarly, the proposals state that adjustments that are made to the opening reserves upon first time adoption of IndAS would be included equally in book profit over a period of five years, except for certain exceptions for items included in OCI and those that relate to fair valuation of fixed assets or investments, cumulative translation adjustments relating to foreign operations. These excluded items would generally be added to book profits in the year of realisation or disposal.
(a)Also, the move to extend the MAT credit from the existing 10 years to 15 should assist the IndAS
companies to deal with the transition in a better manner.
(b)The extant policy of a coal monopoly supplemented with captive mines, whether allocated by auction or not, is hugely inefficent and gives rise to a host of rigidities.
(c) The provisions contained in the Budget adequately address the concerns of stakeholders by providing
clarity on the MAT implications under the IndAS regime.
(d) Companies would now have to take cognisance of the proposed amendments and accordingly determine their advance tax liability.
(e)The aforesaid treatment is prudent since it defers the taxation to the actualisation of profits rather than taxing it upfront upon accounting.
Which of the Phrases A, B, C, and D given below each sentence should replace the phrases printed in bold in the sentence to make it grammatically correct. If the sentence is correct as it is given and no correction is required, mark E. as the answer.
Q6.
The US economy is present in the face offa serious recession.
(a)having to face of at present
(b)presently facing up to
(c)presented on the face of
(d)presently facing
(e)No correction required
Q7. Economists have predicted that the country’s economic growth falls low toeight per cent this year.
(a)falling as low as
(b)fell to as low as
(c)will fall to as low as
(d)fallen lower than
(e)No correction required
Q8.In all likenessthe company will fail to achieve its production targets this year.
(a)With every likeness
(b)In all likelihood
(c)It is likely for
(d)In every likeness
(e)No correction required
Q9.We have failed assessment ofthe advantages of outsourcing our IT operations.
(a)in assessment
(b)in not assessing up
(c)to assess
(d)the assessment of
(e)No correction required
Q10.One of the key competenciesfor managers are ethics and the ability to motivate others.
(a)Among the key competencies
(b)Beside the key competency
(c)Including the key competencies
(d)Within the key competence
(e)No correction required
