Blockchain

Do you know there's an easier way to complete transactions without having to deal with online wallets, banks and third party applications.It is 'Blockchain'.

▶️ Blockchain is early like to the internet in1990's but it could be as big.

▶️It is not a subset of internet like e-commerce or social networking or email but it is something as fundamental and parallel to the internet.

▶️It sounds incredibly simple but very complex to understand.

▶️It has the potential to change our lives in the next twenty years the same way the internet has changed in the last 20 years.

▶️ Blockchain is not 'Bitcoin'.

So what is blockchain then?There are different ways to think about blockchain and one way is think of blockchain as one big ledger in the cloud.Everything that you own including money is nothing but are entries on the ledger.So for example you send 100 dollars money from USA to your friend in India so it's not the money that flies from here to there,it's actually a ledger entry which happens in your ledger and your friend's ledger and money is transferred.Now the problem however is between your ledger and yours friend's ledger there are bunch of other ledgers.These are bunch of ledgers owned by banks, financial institutions,regulators, insurance companies and each of these ledgers have to be reconciled and changed and because you have to change so many ledgers it causes friction and what this friction causes is a time delay and obviously cost .

So the money send by you to your friend in India reaches to him maybe five or six days later and maybe only 94-95 dollars reach to him .

Now , imagine instead of these broken system we actually had one universal ledger and all the participants in the transaction were nodes in that ledger and everytime an entry had to happen every single one of them had to authenticate it so that we needed only one entry on realtime basis.

Now this concept of single universal ledger is actually what is the heart of the blockchain.

Whenever a transaction or a group of transactions happens it gets added on as one or more block in a chain of already existing transactions and obviously this transaction which has been added has been authenticated by everyone and also this blockchain is protected by best cryptography algorithms available.So it's very difficult to hack.

The other important thing is every block is immutably linked to the last block and if a hacker wants to change one transaction or a block he or she has to change the entire chain which is very difficult to do.Therefore it is super secure and is driven by consensus and immutability.

Another important thing of blockchain is that you can actually trace back any event.Blockchains also foster this thing called smart contracts which is logic built in most blockchains .Due to this whenever an event happens it triggers another event automatically and this is very useful.

Finally no one owns the chain.So you would be thinking now that who maintains it it's not one bank or a single trusted authority.Infact it's the entire bunch of people.But to maintain these chains you require resources.You require computing power, electricity,time,money.

So in 2008 Satoshi Nakamoto invented a currency and that currency was the incentive for all those people maintaining this chain.This currency was called 'Bitcoin' and the guys who managed the chain were called 'Minors'.

So that was a very high level of understanding of what a blockchain is.But there's an other way to think about blockchain.Probably a more friendlier one.

So a blockchain is actually somewhat like a chit fund.In a chit fund scheme,a group of people contribute periodically towards chit value for a duration.The amount so collected is given to a person, who is either selected through a lucky draw or an auction.

Let's say that a chit fund scheme has 100 members ,each paying 500 Rs to have a first pot of Rs 50,000 . There's a lucky draw and the lucky winner gets the money.This process gets repeated.Now as this members are putting in this money and this lucky draw is happening and if I am one of the members then whom I am trusting.There's no one single authority,bank etc.I am trusting all of them and I am also trusting the fact that if they want to defraud me most or if not all of these members have to be influenced and therefore I am changing the concept of trust from centralized trust  to distributive trust.It is this distributive trust which is the heart and soul of the blockchain.Think of all these members as nodes.Think of money as cryptocurrency and the distributive trust around it .So a blockchain is really useful when it has four things that is consensus for distributive trust, security because of non hacking possibilities,there is provenance as you can trace an event back and obviously trust.

So now that we have known about what exactly is blockchain technology ,let us see what vital roles it can play in future.

Blockchain technology can play a major role in changing a country's economy.Infact there are many countries that support blockchain innovation like Switzerland,United Arab Emirates, United Kingdom,United States,Sweden.

Blockchain has vast applications.In an economy it can be used in agriculture sector,energy sector, health care sector , education sector,subsidies,banking,voti-ng, e-governance. Blockchain technology has wider reaching applications across many fields.

The full potential of blockchain technology is yet to be discovered.

Therefore to summarise ,a blockchain is a collection of blocks connected with each other strongly , resistant to alteration and protected using best cryptographic algorithms.Each block contains some data,hash of the block (similar to unique finger prints) and hash of the previous block.It has pros like improved accuracy,decentralised system,secure transactions , eliminate third party verifications.Along with pros it has cons like technology cost,no regulatory authority,using of this technology for illicit activities like money laundering.Inspite of the cons there's an incredible scope in block chain technology in future.

Self Realisation

Classical Languages

🔶️ Currently there are 6 languages  that enjoy "Classical Status " in India.

  🔹️Tamil(2004)

  🔹️Sanskrit (2005)

  🔹️Kannada (2008)

  🔹️Telugu(2008)

  🔹️Malayalam (2013)

  🔹️Odia (2014)

💎All classical languages are listed in Eighth schedule of Constitution.

🔺️Guidelines for declaring a language classical language:-

1) High antiquity of its early texts/recorded history over a period of 1500-2000 years.

2)A body of ancient literature/texts which is considered a valuable heritage by generation of speakers.

3) The literary tradition should be original and not borrowed from another speech community. 

4) The classical language & literature being distinct from modern ,there may also be a discontinuity between classical language & its later forms or its offshoots. 

🎖 Once a language is notified as a classical language, the Human Resource & Development Ministry provides certain benefits to promote it:-

1)Two major annual international awards for scholars of eminence in classical Indian languages. 

2) A centre of excellence for studies in classical language is setup. 

3) The University Grants Commission is requested to create ,to start with atleast in the central universities, a certain number of professional chairs for the classical language so declared.

Rangoli

My Paintings

SA-240 The Auditor'a responsibility relating to fraud in an audit of financial statements

SA-230 Audit Documentation

Concept of Strategy

"STRATEGY" dictionary definition-   Something that has to do with war and to win over the enemy. 

Business also has to respond to dynamic and often hostile external forces while pursuing their mission and objectives. 

Very injection of strategy into business organization is intended to unravel complexity and to reduce uncertainty caused by the changes in the environment. 

Strategy is the game plan that the management  of a business uses to take market position, conduct its operations, attract and satisfy customers, complete successfully and achieve organizational objectives. 

Strategy is associated with unified design and action for achieving major goals ,gaining command over the situation with a long range perspective and searching securing a critically advantageous position, its implications for corporate functioning are obvious. 

Strategy can be defined as a long range blueprint of an organization's desired image, direction and destination, that is, what it wants to be, what it wants to do and where it wants to go. 

According to William F Glueck:A unified, comprehensive and integrated plan designed to assure that the basic objectives of the enterprise are achieved. 

Strategy is consciously considered and flexibly designed scheme of corporate intent and action to mobilize resources, to direct human effort and behavior, to handle events and problems, to perceive and utilize opportunities, and to meet challenges and threats for corporate survival  and success. 

Strategy is no substitute for sound,alert and responsible management. Strategy can never be perfect, flawless and optimal .It is in the very nature of strategy that it is flexible and pragmatic to take care of sudden emergencies, pressures, and avoid failures and frustrations. In a sound strategy, allowances are made for possible miscalculations and unanticipated events. 

Strategies are formulated at the corporate, divisional and functional levels.

Strategy is partly proactive and partly reactive. 

A company's strategy is typically a blend of:-

➡️Proactive actions on the part of manages to improve the company's market position and financial performance. 

➡️Reactions to unanticipated developments and fresh market conditions. 

A company uses both proactive and reactive strategies to cope up the uncertain business environment. Proactive strategy is planned strategy whereas reactive strategy is adaptive reaction to changing circumstances. 

Company experiences ,know how,resource strength &weakness & competitive abilities

1) Planned strategy, new initiatives plus ongoing strategy features continued from prior periods. 

2)Reactive strategy:Adaptive reaction to changing circumstances. 

🏹      ACTUAL COMPANY STRATEGY 

Concept of " Management "

MANAGEMENT  is used in two senses such as:-

➡️1) It is used in reference to a key group in an organization in charge of its affairs. In relation to an organization, management is the chief organ entrusted with the task of making it a purposeful and proactive entity, by undertaking the task of bringing together and integrating the disorganized resources of manpower, money ,materials and technology into a functioning whole.

An organization becomes a unified functioning system when management systematically mobilizes and utilizes the diverse resources efficiently and effectively. The survival and success of an organization depend to a large extent on the competence and character of its management. 

Management has to also facilitate organizational change and adaption for effective interaction with the environment. 

➡️2) The  term management is also used with reference to a set of interrelated functions and processes carried out by the management of the organization to attain its objectives. 

This functions include Planning ,Organizing, Directing, Staffing and Controlling. The functions or sub processes of management are wide ranging but closely related. 

They range all the way from determination of the goals, design of the organization, mobilization and acquisition of resources, allocation of tasks and resources among the personnel and activity units and installation of control systems to ensure that what is planned is achieved. 

Management is an influence process to make things happen, to gain command over phenomena, to induce and direct events and people in a particular way. Influence is backed by power,competence, knowledge and resources. 

Managers formulate organizational goals, values and strategies to cope with, to adapt and to adjust themselves with the behavior and changes in the environment. 

Strategic Management Chapter 1 INTRODUCTION TO STRATEGIC MANAGEMENT

Business Policy 

Business Policy, as defined by Christensen & others ,is the study of the functions & responsibilities of senior management, the crucial problems that affects the success of the total enterprise, &the decisions that determine the direction of the organization & shape its future. 

Business Policy tends to emphasize on the rational analytical aspects of Strategic Management. It presents a framework for understanding strategic decision making in organizations. Such a framework enables a manager to make preparations for handling general management responsibilities effectively. 

According to William F Glueck, evolution of business Policy arose from developments in the use of planning techniques by managers .Managers tried to anticipate the future by preparation of budgets & using control systems like management by objectives & capital budgeting .Soon long range planning came to be used.Long range planning was replaced by strategic planning & later by "Strategic Management " ,a term used to describe the process of strategy formulation, implementation and control. 

Enterprise Information Systems & Strategic Management

For papers like Enterprise Information Systems and Strategic Management presentations skills are a must.In EIS diagrams and flowcharts  should be properly labelled .Always try to draw diagrams as much as possible and stick to the ICAI keywords and avoid making answers by yourself in exams.In Strategic  Management  give real situations and examples as much as possible  and stay aware about things happening  in business world.For example in chapter  4 of Strategic  Management if a question  is asked about RELATED DIVERSIFICATION you can first  explain the topic and give example of WALT DISNEY COMPANY'S  ACQUISITION OF PIXAR ANIMATIONS.

Avoid redundancy in writing answers .

Start writing the papers with answers which you are confident  about .This will give a good impression on the examiner.

Try to study from the IcaI study material first and then you can take help of notes to revise the chapters.Writing practice  is a must.Make sure you have practiced  writing answers of past year attempts before giving the exam. 

Stay consistent  and true to yourself.

Paper 6 AUDITING &ASSURANCE

STANDARD ON AUDITING -210 Agreeing The Terms of Audit Engagement

STANDARD ON AUDITING -200 Overall Objectives of the Independent Auditor and conduct of the Audit in Accordance with the Standards

CA Study Notes

Dear Readers I am going to share CA intermediate  notes and commerce related articles on my blogs.Notes would be in handwritten  format and charts of Standards on Auditing, Accounting Standards, Financial Management, Enterprise Information Systems, Strategic Management  and related topics. Hope you will find it useful and informative.

Share with your friends and stay connected 

About

Hi my name is Esha Jena and I have recently cleared CA Intermediate Group 1 in November 2020.I am also pursuing BCom Hons. from DU Sol.

I see myself as a relentless problem solver and I'm always looking for a new challenge.

I personally believe that marks does not define your capabilities,it can be a tool to enter organisation of our choice but what helps us to  sustain is our confidence and attitude of learning.

In my free time I love to sing and watch series.I also love journalising.

What makes me different from others is that I  very humble & hardworking.If given a challenge I do not leave it until I succeed.

I am fortunate that I got opportunity in my school days to enhance my leadership skills.I was the USM (Universal Solidary Movement)Leader in my school .This has helped me to learn team spirit & how to work &move forward with people of different mentality.

My ultimate aim in life is to become highly educated and use my knowledge to bring a change in the life of people.

 Dear Readers  stay connected  with  me on LinkedIn 

https://www.linkedin.com/in/esha-jena-574594206

THE MAN WHO THINKS HE CAN By WALTER D.WINTLE

If you think you're beaten,you are;

If you think you dare not,you don't.

If you want to win but think you can't;

It's almost a clinch you won't. 

If you think you will lose,you're lost.

For out of the world we find 

Success begins with a person's will ;

It's all in a state  of mind.

Life's battles don't always goes,to the 

Strongest and faster human;

But sooner or later the people who win

Are the ones who think they  CAN

Teamwork Matters ,But Nobody Is Indispensable In Any Co

➡️ Failures teach you more than success .A big failure can lead many of our well wishers to lose faith in our abilities. It may also lead to demoralization. 

➡️Leaders lead from the front. 

➡️Every crisis can bring out the best in you.

➡️Teamwork produces greater results than individual brilliance. A Leader needs to work like a conductor in a symphony orchestra so that he is able to get the best out of every team member. 

➡️ Focus and commitment enables you to get over adversaries .

➡️ Hardwork can take you wherever  you want to reach in life.

➡️Resources are only means to an end ,and not an end in itself :This means that resources are only a means to an end and not an end in itself. We can succeed even with limited resources if we are determined to do so.

➡️Critics can demoralize you, but cannot prevent you from winning. Critics can only make you more determined to win.This is equally true in organizations.If we take critics in our stride ,learn from the mistakes of the past and move on,we can give our best in future. 

➡️Humility gains more respect:A Leader who leads from the front and is calm and humble gets you great results. Humility is still a great virtue for a leader to possess,especially to tide over a crisis and lead the team to victory, literally from the ashes.