Quick explanation of the words used in this Site (Blogs/News/Videos/Presentations)

Ready Reference

1. IIP (Index of Industrial Production) – This is an Index measured, compiled and published by National Statistics Office (NSO) with an objective of measuring the short-term changes in the volume of production of a basket of industrial products during a given period with respect to that in a chosen base period. IIP is a key economic indicator of the manufacturing sector (normally 8 core industries) such as Mining, Electricity, Coal, Fertilizer etc. Generally, IIP Data is released on 12th day of each month in India to indicate the growth or contraction in these core industrial sectors as compared to the given comparable period.
2. US Bonds Yields – A bond’s yield is the rate of return the bond generates. While the bond price keeps fluctuating in the market, coupon rate of bond is the rate of interest that the bond pays annually. Yield changes with the prices of the bond based on the favorable or non favorable conditions in the market. If Bonds prices goes up, it’s yield goes down and vice-versa. In the event of surging inflation, Bonds prices starts falling and bond’s yield goes up. US is observing constantly rising yields in all – short term, medium term and long-term bonds. 10-year bonds yield has gone up from less than 1% during 2020 to 4.5-5% in 2023 due to constantly rising interest rates by Fed and also due to dollars withdrawal by China from US market to support their domestic real estate industry.
3. Crude Oil prices – Crude Oil means oil in its raw stage extracted from the earth i.e. before any refining or processing. After extraction, crude oil is refined into various popular products such as jet fuel, gasoline or other multiple petroleum products. Globally, the fluctuation of Crude oil prices are significant as it influence the cost of production of large number of goods and hence a key contributor for impacting inflation. Prices of Brent Crude and WTI Crude are key indicators where Brent Crude means oil that originates from oil fields in the North Sea and WTI (West Texas Intermediate) is extracted from US oil fields. Crude Oil prices are denoted in $ per barrel where a barrel is exactly 42 US gallons, approximately 159 Liters.
4. Cost Audit – Cost Audit is the independent examination of ‘Cost records’ by the Cost Auditor. Cost Accountant in practice or Firm of Cost Accountant(s) can be appointed as a Cost Auditor. Rule4 of the Companies (Cost Records and Audit) Rules, 2014 regulates the concept of Cost Audit and explains the applicability of Cost Audit.
5. Cost Records – In order to ascertain the true and accurate cost of products and services, it is necessary to ensure that Cost records maintained for this purpose are accurate and correct. As defined by Rule 2 (e) of the Companies (Cost Records and Audit) Rules, 2014, Cost Records means books of account relating to the utilization of materials, labour and other items of cost as applicable to the production of the goods or providing of services as defined in Table A (Regulated sector) or Table B (non-regulated sector) having an overall turnover from all its products and services of Rs. 35 crore or more during the immediately preceding financial year. Cost Records intersect production, statistical and financial records.
6. NCLT– The National Company Law Tribunal (NCLT) is a quasi-judicial body in India that adjudicates issues relating to Indian companies Act 2013 under section 408 w.e.f. 01st June 2016., and Insolvency and Bankruptcy Code 2016. The NCLT was constituted on 01st June 2016 by the Government of India. In last 6 years, since the NCLT was constituted, the track record of NCLT has been impressive as NCLT has taken up and decided a number of cases.

In the first phase, the Ministry of Corporate Affairs has set up eleven Benches, the principal bench is set-up at New Delhi. These Benches are headed by the President. Currently Chief Justice (Retd.) Ramalingam Sudhakar holds this position at New Delhi Bench. The official website page of NCLT is https://nclt.gov.in/

7. Standard Costing–

As a valuable management tool, Standard costing is a process (under Cost Accounting) by which cost incurred in various production activities are recorded at standard costs (i.e. scientifically calculated estimates) and variances (difference between standard and actual cost) are recorded separately and reported. Manufacturing Costs such as cost of direct materials, direct labor and overheads are covered under this costing process. It is designed to help the management for analyzing performance of a responsibility center in an organization. This costing system helps business to facilitate planning and controlling costs, analyzing performance and valuing inventories. The analysis of variances that are the differences between standard and actual costs is the key in a standard costing.

8. Bill Of Materials–

Bill of materials (BOM) is a very detailed list of all of the quantities of every material used in the various steps of manufacturing activities of a product. It is generally derived from the commitments of the developers of the product. The BOM will be used to measure the cost of material of a related product. For example, In the car-manufacturing industry, Tires, Chassis, Seats, Gear, Breaks, Engine etc. can be easily thought of as BOM components for Car (which is a finished product). A good BOM definition of finished product offers benefits of good estimates of standard cost of that product.

9. Corporate Data Lake–

For a big size corporate or business that uses a number of systems/applications to manage various business processes, it becomes utmost important to create a Data Hub (or Data repositories) from where meaningful MIS reports can be generated. Data lake aims to consolidate business data (in raw-form) from various systems/applications in a single/central location. Using data lakes, corporates store critical data (that can be structured, unstructured or semi-structured data) in a central authoritative location and apply modern/advanced techniques of data analytics through Power BI, Machine Learning, other data-science tools.

10. Current Account Deficit (CAD) OR Trade Deficit- 

Like any business keeps a track of business operations by maintaining their books and accounts, at country level like for India, Current Account is prepared to maintain a record of country’s transactions  with other nations. In this context, when money received by selling goods and services to other nations is lesser than the money paid for buying goods and services from other nations, Current Account Deficit arises. India has been facing trade deficit in current account transactions since 1960 (i.e. Imports value is greater than the value of Exports) with few years exceptions (such as 1972,1976,,1977 when there was a surplus) and in 1990 trade was completely balanced i.e. neither deficit nor surplus. 

India trade balance for 2022 was $-151.46B, a 82.18% increase from 2021.India’s current account deficit has gone up to $9.2 billion in the first quarter of FY24 on a sequential basis, but narrowed when compared year-on year. The CAD is about 1.1 per cent of the GDP, RBI data showed on Thursday.

11. Geocoding

This term is used recently by GST Authorities in India where they have introduced ‘Geocoding functionality’ feature by the GSTN (Goods and Services Tax Network). The idea is to ensure the accuracy of address in GSTN records. Geocoding functionality uses geographical coordinates or location-based data to determine the tax jurisdiction of a particular business or transaction.

It transcribes an address or description of a location into geographic coordinates, which can be used to identify the precise location of registered entities. This is given as one time activity to be done at the time of registration by the GST registered entities and revision has not been permitted. Now, for additional place of business can also be indicated through Geocoding functionality in GSTN. Please visit for more details: gstkanun.in/geocoding-functionality-in-gst