NATIONAL LEVEL SEMINAR ON

CONTEMPORARY ISSUES IN BUSINESS

PRACTICES (CIBP)

(FINANCE & GENERAL)

29th September, 2012

KONGUNADU ARTS AND SCIENCE COLLEGE

DEPARTMENT OF COMMERCE WITH COMPUTER APPLICATIONS

G.N. Mills Post, Coimbatore – 641029

Editors

M. Karthikeyan D. Ramesh Kumar

A. Prabhu

Technical Co - Sponsor

National Level Seminar on Contemporary Issues in Business Practices

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i

ABOUT THE COLLEGE

“The Gold of KONGUNADU” is an ever growing industrial city. The long felt need for one

more college to meet the educational need of this city was fulfilled on 12th August 1973, the day of

inauguration of this College. 16th October 1972 is a memorable day in the history of our College.

On that day, Late Thiru.V.K.Lakshmanan, M.Sc.,(Ex-MLA), a progressive agriculturist and public

worker noted for his selfless service and devotion to work and Dr.M.Aruchami,

MSc.,BT,PhD.,FAZ,FRES (Lond.), the present Secretary, Both gave expression to their long cherished

desire to start a college and the impetus for the fulfillment of the desire was readily given by Late

T.N.Palanisamy, MA.,IC (Dip.) USA, the then President of the Thudiyalur Cooperative Agricultural

Services. The vision of the college is to develop the total personality of every student in a holistic

way by adhering to the principles of Swami Vivekananda and Mahatma Gandhi. The College has

been marching forward triumphantly in the field of higher education by introducing chronologically.

The College has been Re-accredited by NAAC with ‘A’ Grade Status (CGPA 3.8 out of 4) and

ranked No.1 college among 3492 accredited colleges in India so far. Ours is one among 50 colleges all

over India selected by University Grant Commission (UGC) under college with Potential for

Excellence (CPE) scheme. Another feather in the cap of Kongunadu Arts and Science College is “DBT”.

Government of India has recommended our college for support under strengthening component of

the “STAR COLLEGE” Scheme.

iii

ABOUT THE DEPARTMENT

The Department of Commerce with Computer Applications has its inception from the

academic year 2001-2002. Educational institutions provide quality personnel to meet the human

resource requirements. Keeping this in view, the Department prepares students, with sound

commerce background along with the skills in the operation of computers, to carry out all the

computerized work in different areas of trading and manufacturing organizations, to make their

career choices and to make them responsible citizens.

The Department of Commerce with Computer Applications (Addl.Sec) was established in

the Academic Year 2007-08 The Department of Commerce with Computer Applications (Additional

Section) made its debut in this temple of learning during the Academic Year 2007-08 with a Vision

and Mission of “Reach the Unreached” by developing the Meritocrates to adorn the world. This

Department was exclusively established for maintaining the effective quality of education in this

currently viable course of B.Com with Computer Applications. Since the present scenario is

concerned with imbibing the advanced Computer Applications in the field of Commerce, the

Department shows keen interest by inculcating the commerce based computer knowledge and

thereby taking its students to achieve the vision.

Apart from the regular classroom teaching, the department is showing a keen interest in

conducting frequent Guest Lectures and Seminars and Conferences in State and National Levels. The

eminent personalities in the field of Taxation, Accounting, Auditing etc., are invited as Guest Speakers

for these Seminars and Conferences.

v

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vii

KONGUNADU ARTS AND SCIENCE COLLEGE (AUTONOMOUS)

[Re-accredited by NAAC with ‘A’ Grade 3.80 CGPA out of 4(95%)]

College with Potential for Excellence (UGC) Star College (DBT)

Coimbatore-641029

MESSAGE

I am happy to know that the department of commerce (CA) organizes a national seminar on

contemporary issues in business practice on 29th September 2012. Globalization has greatly

expanded the realm of opportunity lifting many millions out of poverty. The creation of a single

global information space has allowed us to create truly global markets for capital, goods and

services. Falling prices of energy, commodities capital and information have underpinned

prolonged growth of the global economy. But globalization of opportunity has not often been

accompanied by globalization of responsibility. Too many millions can see, but cannot reach, the

opportunities. Not all the change is good. So, it is the right time to think about the contemporary

business issues.

I wish this seminar to be a successful one.

Dr. M. ARUCHAMI Secretary & Director

ix

KONGUNADU ARTS AND SCIENCE COLLEGE (AUTONOMOUS)

[Re-accredited by NAAC with ‘A’ Grade 3.80 CGPA out of 4(95%)] College with Potential for Excellence (UGC)

Star College (DBT)

Coimbatore-641029

MESSAGE

Globalisation is the new buzzword that has come to dominate the world since the nineties of

the last century with the end of the cold war and the break-up of the former Soviet Union and the

global trend towards the rolling ball. The frontiers of the state with increased reliance on the

market economy and renewed faith in the private capital and resources, a process of structural

adjustment with the intervention of World Bank and international originations have started in

many of the developing countries. Also Globalisation has brought in new opportunities to

developing countries. The globalisation has also thrown up new challenges like growing inequality

across and within nations, volatility in financial market and environmental deteriorations. Another

negative aspect of globalisation is that a great majority of developing countries remain removed

from the process.

In this era of global Mobility it is very essential to understand the contemporary business

issues and develop new strategies for tackling the tough competition at the global level.

I congratulate the Endeavour of B.Com (CA) Department to conduct the seminar

successfully.

Dr. T. Muraleeswari

Principal

xi

KONGUNADU ARTS AND SCIENCE COLLEGE (AUTONOMOUS)

[Re-accredited by NAAC with ‘A’ Grade 3.80 CGPA out of 4(95%)]

College with Potential for Excellence (UGC)

Star College (DBT)

Coimbatore-641029

MESSAGE

I am very much glad to know that the department of B.com (CA) organizes a national level

seminar on contemporary issues in business practice. Globalization is an inevitable phenomenon in

human history. It brings the world closer through the exchange of goods and products, information,

knowledge and culture. But over the last few decades, the pace of this global integration has

become much faster and more dramatic because of unprecedented advancements in technology,

communications, science, transport and industry. While globalization is a catalyst for and a

consequence of human progress, it is also a messy process that requires adjustment and creates

significant challenges and problems. This rapid pace of change can be unsettling and most societies

want to control or manage it.

I wish the department of B.Com CA to organize the national level seminar with grand

success.

Dr. K. Logankumar

Dean Academics cum Research & Development

xiii

KONGUNADU ARTS AND SCIENCE COLLEGE (AUTONOMOUS)

[Re-accredited by NAAC with ‘A’ Grade 3.80 CGPA out of 4(95%)] College with Potential for Excellence (UGC)

Star College (DBT)

Coimbatore-641029

MESSAGE

I am happy to know that the department of B.com (CA) organizes a national level seminar

on contemporary issues in business practice. India's economic integration with the rest of the

world was very limited because of the restrictive economic policies followed until 1991.

Globalisation is one of the key issues in business today. Globalisation has in fact become a buzz-

word with Indian firms now, and many are expanding their overseas business by adopting different

strategies. The Indian business suffers from a number of issues like Government Policy and

Procedures, High Cost, Poor Infrastructure, Limited R & D and Marketing Research, Trade Barriers

etc. As it is the right time to discuss the serious issues in business practices, I appreciate the

endeavors of B.Com CA to conduct the national level seminar.

I wish the department to organize the seminar successfully.

Dr. V. Sugantha

Dean Self Finance Courses

xv

FOREWORD

India entered into globalized economy after 1991.This globalized economy has brought new

opportunities to developing countries and also thrown new challenges like inequality across and

within nation, facility of financial market and environmental detritions. The increased territory of

business will lead to various issues in day-to-day business practices. Businesses are today facing

three major challenges and opportunities that are globalization, advances in technology and

deregulation. With this idea the National level seminar on “Contemporary Issues in Business

Practice” on 29thSept is organized.

The seminar book is a valuable collection of thought provoking research papers received

from all over India. I am proud to state that there is an overwhelming response from the

academicians, research scholars and faculty members of various institutions all over the country to

this seminar. The academicians, research scholars and faculty members may find this volume a

useful reference for further research and base for understanding business challenges and problems.

I am highly indebted to our revered Secretary &Director Dr.M.Aruchami for permitting me

to publish this book.

My heartful thanks to the Principal Dr.T.Muraleeswari, Dean (Academics cum Research &

Development) Dr.K.Logankumar, Dean (Self Finance Courses) Dr.V.Sugantha for their

encouragement and support to conduct this seminar.

I thank the chief guest Dr.K.Srinivasan for giving their valuable inaugural address and chair

persons Dr.M.Ragupathi and Dr.P.Sivakami for presiding over the technical session.

I express my deep sense of gratitude to all the paper presenters for their immediate

response for our call of papers to this seminar.

I thank the staff and students of the Department of Commerce (CA) for their active support

and Co-operation.

M. Karthikeyan Convener

xvii

Organizing Committee

Chief Patron:

Dr. M. Aruchami, Secretary & Director, Kongunadu Arts and Science College

Smt.C.A. Vasuki, Joint Secretary, Kongunadu Arts and Science College

Patron:

Dr. T. Muraleeswari, Principal, Kongunadu Arts and Science College

Dr. K. Logankumar, Dean Academics cum R & D, Kongunadu Arts and Science College

Dr. V. Sugantha, Dean SF, Kongunadu Arts and Science College

Convener:

Mr. M. Karthikeyan, Assistant Professor & Head

Department of Commerce with Computer Application

Kongunadu Arts and Science College

Organizing Secretary:

Mr. D. Ramesh Kumar, Assistant Professor

Department of Commerce with Computer Application

Kongunadu Arts and Science College

Executive Committee Members:

Mrs. V. Regha, Assistant Professor

Mr. P. Sundara Murthy, Assistant Professor

Ms. R. Dhanalakshmi, Assistant Professor

Mr. A. Prabhu, Assistant Professor

Ms. P. Sugunarani, Assistant Professor

Ms. R. Priya, Assistant Professor

xix

CONTENTS

Paper ID Title/Author Page No.

FINANCE

01 Financial Inclusion

Dr.S. Shanthi

01-05

02 Innovations in Financial Markets

Dr.D. Moorthy

06-10

03 Initiatives in Banking Sector for FI

Dr.Y. Natarajan

11-17

04 Contemporary Banking Mantra –“Elastic Money to Plastic Money”

Sai Sachidhananda

18-24

05 A Study on the Growth of Foreign Exchange Reserves of India Since

1991

R. Rupa and P. Salini

25-30

06 Micro Finance

L. Senthilkumar

31-35

07 FDI and its Impact in India

R. Vennila

36-41

08 Role of Information Technology in Banking Industry in India

M. Boomi

42-46

09 Microfinance Industry in India

V. Krishnaveni and Dr.R. Haridas

47-52

10 Microfinance and its Best Practice in Business

Hermina Corera

53-57

GENERAL

11 Corporate Social and Environmental Responsibility in India

Dr.M. Anbalagan and B. Lavanya

58-63

12 Implications and Impact with Special Reference to Globalization

Dr.R. Renganayaki

64-69

13 Corporate Social Responsibility and Emerging Markets in India

Dr.G. Maheswaran

70-75

14 Customer’s Sensitivity on Practice of Internet Banking

Dr.P. Palanivelu and D. Sureshkumar

76-80

xx

15 An Investigation of the Biotechnology Industries in India with Reference

to Bangalore

Dr.D. Raja Jebasingh

81-88

16 Emerging Trends in Banking – Challenges and Opportunities

Dr.D. Suganya Devi

89-92

17 ANOVA between Incomes Vs. Travel Agencies Business- (A Study with

Reference to Kodaikanal)

Dr.S. Valli Devasena and Christinal Priya

93-97

18 Cyber Crime

Dr.C.R. Karpagam

98-101

19 A Study on SHGS - the Best Microfinance Delivery Methodology with

Special Reference to Trichy Town

Dr.N. Shaik Mohamed and A. Mehathab Sheriff

102-106

20 Cyber Crimes and Steps to Prevent and Control

D. Divya and P. Gayathri Devi

107-111

21 Cyber Crime

R. Poornima

112-115

22 Medical Tourism – A Growing Industry

Brinda Rani Dass and B. Soucemarie

116-119

23 Recent Trends of Public Sector Banks in India

P.V. Saravanan

120-124

24 Confront of Cyber Crime with Digital Intelligence

Priyadharshini Arumugam

125-129

25 Cyber Crime Plot in India

S. Kavi Priya

130-135

26 Technological Developments in Banking Sector

D. Divya

136-140