Journal Press India^®

            It is our pleasure to present to our readers the second issue of MUDRA, which covers a wide range of topics in the area of finance and accounting. The articles include macro level studies on global foreign direct investment and IFRS as well as India’s foreign exchange market and capital market. At the same time, there are micro level studies focusing on functioning of banks in a region and a case study of Bank of India.

            The paper on global FDI looks at the international relocation of production and tries to examine the concentration of FDI. Using a set of indices, their results show that there is a low concentration in distribution of FDI in terms of inflow and stock. This implies a uniform distribution of productive resources across countries. Another interesting paper in this issue compares the provisions of old Accounting Standard (AS) 14 on ‘Accounting for Amalgamations’ with that of new International Financial Reporting Standard (IFRS) 3 converged Indian Accounting Standard (Ind AS) 103 on ‘Business Combinations’. The paper extensively covers accounting method, valuation of assets and liabilities, nature of consideration, and also has reference to various types of business combinations. An important aspect of international finance, the foreign exchange market has been extensively covered in a paper that traces the evolution of the market since Independence. India’s foreign exchange policy after Independence has evolved in tandem with international developments and domestic requirements. The paper analyses the post-reforms period that was marked by wide-ranging measures to widen and deepen the market, besides exchange rate liberalisation. An empirical paper on the Indian stock market studies the efficiency of Indian stock markets during the period 2001-2011 using NIFTY and 6 major NSE sectoral indices. The study concludes that Indian markets are inefficient in its weak form for the study period.

            This issue also incorporates two micro level studies: one on loan recovery performance of District Central Co-operative Banks in Maharashtra and the other is a financial inclusion case study of Bank of India. Both the studies look at important aspects of banks providing finance to rural and underprivileged sectors in the economy. We have also included a commentary that looks at the management of change in a global perspective.

            We hope that our readers appreciate the issue and provide us their continued encouragement and feedback to help us in including contemporary and interesting topics in the upcoming issues.

Prof. Muralidhar A. Lokhande

Dr. Jitendra Janardan Ahirrao

Editors