B.Com 5th sem

E-MARKETING
E-MAIL

 INTRO.:
 Electronic mail, commonly called email or e-mail, is
a method of exchanging digital messages from an author
to one or more recipients. Modern email operates across
the internet or other computer networks. Some early
email systems required that the author and the recipient
both be online at the same time, in common with instant
messaging. Today's email systems are based on a store-
and-forward model. Email servers accept, forward,
deliver and store messages. Neither the users nor their
computers are required to be online simultaneously; they
need connect only briefly, typically to an email server, for
as long as it takes to send or receive messages.

 Almost instantaneous
 Email messages are transferred instantly - well almost. They move as fast as current in copper wires or
light in optical cables, which is pretty darn quick. When you send an email is leaves your computer
and arrives at the recipient's inbox immediately. You can potentially have a conversation with a
person over email - hence, the conversation view in Gmail.
 Cost of sending an email is zero or negligible
 If you have a 24 hour internet such as a through cable / broadband connection, the cost of sending an
email is zero or very very small. For dialup users, the maximum cost of sending an email will be that
of a phone call or a few (depending on the size of the message and the files attached).
 Emails can be sent in bulk
 One email message can be sent to multiple recipients almost at the cost of a single email. When
compared to conventional postal service this is indeed a huge saving.
 Email attachments - any digital document can be sent over email
 As long as a document can be converted into digital format, it can be sent over email. Again, the cost
aspect comes into picture. Imagine the money you will save by sending a 500 page document attached
to an email instead of the same as hard copy printout - not only is the postage more expensive but
there is also the cost of printing and paper to consider.
 And the story doesn't end with text documents. Photographs, music and audio files and even video
from a camcorder can be attached along with an email message. To learn more, refer how to send
photographs taken from your digital camera through email.
 Though many email services put a limit to the email attachment size, there are workarounds; refer
sending larges files over email.

 Delivery is almost guaranteed
 The delivery of email messages in almost guaranteed. Why do I say "almost"?
Because sometimes for reasons that are beyond the scope of this article, email
can get lost in cyberspace but this is very rare.
 Request return receipt
 Just like with postal and courier services, you can request a return receipt which
simply involves a click of a mouse button by the recipient. But even if the
recipient doesn't get back, you know your email has been delivered - refer point
above.
 Email is accessible
 OK, this is one of the greatest advantages of using email - its accessible
anywhere, anytime and through a multitude of devices - computers, laptops,
palmtops and even cell phones.
One can check email from any location as long as an active internet connection
is available.
Also email can be sent from any place with the same requirement of an active
net connection.
 Built in spell checking
 Most E-mail accounts (E-mail clients) have built in spell check dictionaries -
so you have no excuse of sending badly written messages. Spell checkers are
also found in online email services such as Hotmail and Yahoo.
 Notification of new arrivals
 Email programs or devices can also be set up so you get a notification through
sound or a flash of light when new messages arrive at your inbox.

 Can be formal as well as informal
 Email messages do not signify informality. Just because email is easy to compose and
send does not mean it cannot be used in formal and official correspondences.
 Automation
 Several, if not all, steps in the emailing process can be automated.
A good example is sending birthday greetings to people. An email program checks
the birthday and the name of the recipient from a list. A message (from a template) is
then formulated and sent on the specified date.
 Email storage and management
 Storing and managing emails you receive is very easy if you use an email program or a
good email service. Segregating messages into folders and organizing them properly
is just like cleaning your desk and filing your work. However, with email there is no
usage of physical space excepting that on your hard disk, of course. Also, any email
client worth its salt has an inbuilt search utility that hunts out the elusive email in a
jiffy.
 Email security
 The best way to secure your email messages is to use the PGP (Pretty Good Privacy)
technology. However, most people are unaware of it but it's very much there!
 These were some advantages I could think of. If you come up with others, write to me
using the form below.
It's now time to look at some disadvantages of using email.

Disadvantages of email

 Email creates more work
In contrast to the popular notion, email actually creates
more work. The easy of sending and receiving email has
transformed businesses throughout the world and we know that
the stress levels are increase, right?
 People expect immediate replies
Most people know that emails are delivered instantaneously
and hence expect replies immediately. I agree that the "human"
element is kind of lost with email.
 Most email messages are not secure
As I mentioned above, though a good secure technology
exists for email, the masses seldom bother to use it... or even
know about it. Hence transferring sensitive information over
email such as credit card numbers or bank details (password?) is
not advisable.

Higher Corporate Accounts
INFLATION
 In economics, inflation is a rise in the
general level of prices of goods and
services in an economy over a period
of time. When the general price level
rises, each unit of currency buys fewer
goods and services. Consequently,
inflation also reflects an erosion in the
purchasing power of money a loss of
real value in the internal medium of
exchange and unit of account in the
economy.

Types of Inflation

 There are three major types of inflation :

1) Demand Pull Inflation

2) Cost Push inflation

3) Built in Inflation

Demand Pull Inflation
 Demand Pull Inflation caused by increase in
aggregate demand due to increased private and
government spending. It occurs when aggregate
demand exceeds aggregate supply which
increases costs suddenly. To increase the output
firms employ more people. When firms employ
more and more people they end up in increasing
cost of production of the good as compared to
the output .This results in increase in price of the
good and hence Inflation.

COST PUSH INFLATION
 Cost supply inflation is also termed ‘supply
shock inflation’. Caused by drops in aggregate
supply due to increased prices of inputs. For
example sudden decrease in the supply of oil
would increase oil prices. Producers for whom
oil is a part of their costs could then pass this on
to consumers in the form of increased prices. If
the good whose price increases is used widely
in production the effect is much more and
causes inflation.

Built in Inflation
• These types of Inflation are induced by adaptive
expectations i.e. the workers try to keep their
wage levels high in anticipation of inflation. The
employers and firms increase the prices of their
goods in anticipation of the workers demands.
This forms a vicious circle and results in increase
in general level of prices. This results in
Inflation.

ENTREPRENEURSHIP AND SMALL SCALE
INDUSTRIES
 Sickness in small Scale Industries
INTRODUCTION:
• Industrial Sickness has been growing from last decade.
• Many traditional and modern industries are now being
effected by industrial sickness.
•Persisting problems are faced by the industrial sector of the
country.

DEFINITION
 “ A company where the accumulated
losses at the end of any financial year
results in erosion of 50% or more of its
peak net worth during the immediately
preceding five financial years ”.

WARNING SIGNALS OF INDUSTRIAL
SICKNESS

 SHORTAGE OF LIQUID FUNDS
• GROWING OF EXCESSIVE INVENTORIES.
•UNDER – UTILISATION OF CAPACITY.
•RETURN ON INVESTMENT
•MAINTENANCE OF CERTAIN FINANCIAL RATIOS.

 LACK OF INFRASTRUCTURE FACILITIES
 MISMANAGEMENT
 LABOUR UNREST
 LACK OF MODERNISATION
 GOVERNMENT POLICY
 SLACKNESS OF FINANCIAL INSTITUTION
 FAULTY PLANNING

 LARGE AND MEDIUM SCALE SICK UNITS.
 TAKEOVER POLICY
 REDUCING LIABILITIES
 GRANT LOANS AT CONCESSIONAL RATES
 PRIORITY IN SUPPLY OF RAW MATERIAL
 PROFESSIONAL SERVICES
 TAX EXEMPTION
 MERGER

GOVERNMENT POLICY ON
INDUSTRIAL SICKNESS
 SUITABLE ARRANGEMENT OF
MONITORING
 GROUP OF PROFESSIONAL
DIRECTORS
 SCREENING COMMITTEE
 REMEDIAL MEASURES IN RESPECT
OF

 INDUSTRIAL UNITS
 TACKLE THE PROBLEM OF
INDUSTRIAL SICKNESS.

INVESTMENT MANAGEMENT.
INVESTMENT RISK
 MEANING :
 Valuation of assets based on liquidity does not yield
better results if the fair market value of assets is in
excess of value of its assets on a liquidated basis.
Valuation approach is the general way which is followed to
determine a value indication of a business, corporate
ownership interest, security, or intangible asset.
Business Valuation is an estimation of the market value of
a corporation / business. It differs from appraisal in the
sense that appraisals only takes into consideration the
tangible assets, but a valuation considers intangible assets

INVESTMENT RISK CLASSIFICATION
(BASIS OF NATURE)
 Very Cautious
 You are not willing to accept any risk to your investment in the
short terms and wish typically to invest wholly in cash assets. You
understand that the potential for growth is small and that over the
long-term inflation will reduce the buying power of cash assets.
 Cautious
 You are looking for an investment where the return over the long
term is expected to be an improvement on that available from
high street deposit accounts.
Or alternatively, offer you a guarantee of your capital from day
one.
 Balanced
 You are looking for a stabilized risk and reward with the aim that,
in the long term, higher returns may result than those available
from more cautious investments. You are willing to accept that the
value of your investment can fall as well as rise in value.

 Adventurous
 You are willing to accept a higher level of risk on
your investment in order to seek higher growth
potential, in the longer term, than is available
on less speculative investments. You are
prepared to accept that this will increase the
risk of large fluctuations in the value of your
investment and of losing some or possibly all of
your capital.
 Aggressive
 You are willing to accept a very high level of risk
on your investment in order to seek very high
growth potential in the long term. You are
willing to accept the risk of losing some or all of
your capital.

Investment risk types at present
situation.
 Investment Risk #1: Business Risk
 Business risk is, perhaps, the most
familiar and easily understood. It is the
potential for loss of value through
competition, mismanagement, and
financial insolvency. There are a
number of industries that are
predisposed to higher levels of
business risk (think airlines, railroads,
steel, etc).

• Investment Risk #2: Valuation Risk
• Recently, I found a company I absolutely love (said
company will remain nameless). The margins are
excellent, growth is stellar, there is little or no debt on
the balance sheet and the brand is expanding into a
number of new markets. However, the business is
trading at a price that is so far in excess of it's current
and average earnings, I cannot possibly justify
purchasing the stock.
• Investment Risk #3: Force of Sale Risk
• By putting yourself in this position, you have bet on
when your stock is going to appreciate. This is a
financially fatal mistake. In the stock market, you can be
relatively certain of what will happen, but not when. You
have turned your basic advantage (the luxury of holding
permanently and ignoring market quotations), into a
disadvantage.

DIRECT TAX
Deduction and Rebate under sec.
80 in India.
 Deductions And Rebate In Income Tax India
 After the income is computed as per the provisions of
the Income-tax Act, a further deduction is allowed of
certain amount from the tax computed on the income
earned by the assesse.
 This deduction is termed as Rebate. Rebate is a
reduction from income tax liability and not a
deduction from income.

Deduction and Rebate in
income tax
 Certain Investments and Deposits (Sec. 88).

 Rebate To Senior Citizens (Sec. 88B).

 Rebate To Women Assessee (Sec. 88C).

 Deductions From Gross Total Income.

1) Rebate is available to individual and HUFs only.
2) The rebate is allowed only in respect of investment made in certain
securities some which are mentioned as follows:
 Contribution to statutory or recognized provident Fund in his own account.
 Contribution to Public Provident Fund
 Contribution of ULIP, Dhanraksha plan or LIC Mutual Fund equity linked
saving scheme of mutual fund.
 Deposit in 10 year Account under post office saving bank cumulative time
deposit rules 1959 [CTD]
 Repayment of loan taken from a public financial institution in respect of a
residential accommodation or cost of construction subject to maximum of
Rs. 20,000 during a year.
 Deposit in National Saving Certificate
 Deposit in National Saving Scheme
 Investment in notified infrastructure bonds, debentures, mutual fund and
shares
 Tuition fees excluding payment towards any development fees or donation or
payment of similar nature either at the time of admission or thereafter to any
university, college, school or other educational institution situated within
India for the purpose of full-time education.
 And other investments as specified.

3) Amount of deduction: Rebate is allowed @ 20 % of the eligible
investment / payment / deposit made subject to maximum
investment of Rs. 60,000. However in respect of individuals
whose salary income is less than Rs.1 lakh before claiming
deduction u/s 16 and whose salary comprises at least than 90
% of his gross total income, rebate will be allowed @ 30 % of
the investments, etc. made
4) If the investments are made in the eligible infrastructure bonds,
the rebate of Rs. 4,000 is additionally allowed to the
assessee. In other words, the investment up to Rs. 20,000 is
allowed in addition to maximum limit of Rs. 60,000.
5) The benefit for rebate shall be available only to so much of the
amount of premium as is not in excess of 20% of actual
capital sum assured. No deduction shall be allowed in
respect of the deposit in eligible investments in excess of the
total income chargeable to tax.

 Rebate To Senior Citizens (Sec. 88B):
 The rebate under this section is available to resident
Individuals who are more than 65 years of age
 The rebate of income-tax liability up to Rs. 15,000 is
allowed irrespective of the income.
 Rebate To Women Assessee (Sec.88C):
 The rebate under this section is available to women
assessee resident in India who are below the age of
65 years
 Under this section, a rebate of Rs. 5,000 is adhocly
allowed to any tax liability of women.

 Deductions From Gross Total Income
Gross total Income is the total of income under all heads for a particular
previous year. Out of the said Gross total Income, deductions are allowed
under various sections comprised in chapter VI-A. To claim the said
deductions, certain conditions have to be fulfilled.
 80CCC - Contribution to Pension Fund of LIC
 80D - Medical Insurance premia
 80DD - Maintenance including medical treatment of handicapped
dependent
 80DDB - Medical treatment, etc.
 80-E - Repayment of loan taken for higher education
 80G - Certain Donations to Charitable trusts of institutions for charitable
purpose.
 80GG - Rent Paid by an Assessee
 80GGA - Donations for scientific research or rural or urban development
 80-HH - Deduction in respect of profits and gains from newly established
industrial undertakings or hotel in backward areas.
 80-HHA - Deduction in respect of profits and gains from newly
established small scale industrial undertakings in certain areas.
 80-HHB - Deduction in respect of profits and gains from projects outside
India.
 80-HHBA - Deduction in respect of profits and gains from housing
projects in certain areas.

 80-HHC - Deduction in respect of profits and gains from export
of goods outside India.
 80-HHD - Deduction in respect of earning in foreign exchange
 80-HHE - Deduction in respect of profit from export of computer
software, etc.
 80-HHF - Deduction in respect of profit from export or transfer
of film software, etc.
 80-IA - Deduction in respect of profit and gains of certain
industrial undertakings or enterprises, etc.
 80-IB - Deduction in respect of profit and gains of certain
industrial undertakings other than infrastructure development
undertakings, etc.
 80-JJA - Profits and gains from business of collecting and
processing biodegradable waste.
 80-JJAA - Deduction in respect of employment of new
workmen.
 80-L - Interest on securities, dividends, etc.
 80 O - Royalties, commissions, fees for professional services
etc, earned in convertible foreign exchange
 80-P - Certain income of Co-operative Societies
 80-R, 80-RR and 80-RRA - Income from foreign sources.
 80-U - Income of handicapped Assessee.

 This slides are brought you by:

5th GROUP OF 3rd B.COM ‘B’.

B.Com 5th sem

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