Kautilyas Arthasastra: Military Aspects

Kautilyas Arthasastra: Military Aspects CHAPTER I: INTRODUCTION 1. Army has been regarded from time immemorial as one of the essential instruments for the maintenance of a state. Kings, not only in India but throughout the ancient world, maintained well organised and well equipped armies both for the defence and expansion of their kingdoms. History is abounds in instances that whenever any ruler or state neglected the proper maintenance of their armies, unpleasant results in the form of loss of sovereignty or territory have occurred. The study of the organisation and administration of the army of a particular country in a particular period shall always give clues of its basic fabric. The topic under study deals with the role of Kautilyas Arthasastra in organising and administrating large armies and its relevance in todays world armies. 2. Kautilyas Arthasastra had never been forgotten in India and is often mentioned in later literature, sometimes eulogistically and sometimes derisively. But the text itself was not available in modern times until, dramatically, a full text on palm leaf in the grantha script , along with a fragment of an old commentary by Bhattasvamin, came into the hands of Dr R Shamasastry of Mysore in 1904 who was then the Librarian of the Mysore Government Oriental Library. He published not only the text (1909) and an English translation (1915) but also an index Verborum in three volumes listing every word in the text. Subsequently another original manuscript and some fragments, in a variety of scripts, were discovered as well as old commentaries of the text. An another author Dr RP Kangle of the University of Bombay devoted many years of painstaking edition and comparing the various texts and translations. His monumental three volume edition of the Arthashastra was first published between 1960 a nd 1965 with detailed note.[1] 3. Kautilyas Arthasastra is a treatise on artha and sastra. [3]. Artha is an all- embracing word with a variety of meanings in 1.7.6-7 , it is used in the sense of material well being; in 15.1.1 livelihood; in 1.4.3, economically productive activity, particularly in agriculture, cattle rearing and trade ; and, in general, wealth as in the wealth of nations. Arthashastra is thus the science of politics as it is used in 1.1.1 or 1.4.3 .It is the art of governance in its widest sense. The subjects covered include administration; law, order and justice; taxation, revenue and expenditure; foreign policy; defence and war. 4. Kautilyas Arthasastra contains fifteen adhikaranas or books. Of these the first five deal with tantra or the internal administration of the state. The next eight deals with avapa or its relation with the neighbouring states and the last two are miscellaneous in character. The eighth adhikarna or book is concerned with vyasanas, that is, the calamities ,shortcomings or weakness affecting the various prakritis. It is necessary to overcome the shortcomings before any aggressive activity can be undertaken. The ninth adhikarna deals with preparation for war and describe the kinds of troops that should be mobilised for an expedition, the proper seasons for starting an expedition, the precautions to be taken and the dangers to be guarded against before starting and so on . The tenth book deals with fighting, and describes the camping of the army, its march, various modes of fighting, types of battle arrays and other topics.[4]Thus this study shall primarily concentrate on book eight, nin e and ten in particular and other books in general. 5. The Legend K autilya : This mastermind, who could write a definitive treatise on economics and government at a time when large parts of the world was steeped in intellectual darkness? All sources of Indian tradition – Brahmanical , Buddist and jain-agree that Kautilya (also refer to as Vishnugupta in a stanza included at the end of the work) destroyed the Nanda dynasty and installed Chandra Gupta Maurya in the throne of Magadha. The name Kautilya denotes that he is of the Kutila gotra ; Chanakya shows him to be the son of Chanaka and Vishnugupta was his personal name[6] Kautilya then retired from active life and reflected on all that he had learnt during the process of overthrowing Dhana-Nanda. Since he found the earlier works on statecraft unsatisfactory in many respects, he composed his own definitive work presenting his ideas concerning the ways in which a ruler should gain power and maintain his authority. He was way ahead of his times in his thinking and covered every conceivable aspect on th e art of politics and warfare, which could be imagined at the time he lived. For Kautilya, military strategy was an integral part of the science of polity and he made no distinction between military techniques and statecraft. Kautilyas Arthashastra is a practical work which could have been written only by one who had implemented the tactics which he preached. How to form alliances, how to organise and administer them, how to attack a powerful king, how to deal with revolts in rear, what tricks to play on gullible people- there is plenty of evidence in the text to indicate that the author was giving real life answers to every conceivable hypothetical situation. 6. Statecraft and battle craft have changed over the centuries due to the fast changing technology and increasing requirements of human beings. Kautilya a mastermind contributed immensely to the development of the same, his extraordinary arrangement of battle groups in war and administering them during peace keeping all extraneous factors in mind still remains a masterpiece for century armies. CHAPTER II: METHODOLOGY Statement of Problem 7. To study the military aspects as enunciated by Kautilya in Arthashastra with a specific reference to organisation and administration and analyse its relevance for todays armies. Justification of the Study 8. The Legend Kautilya in his renowned work ARTHASHASTRA has dealt with various contemporary subjects which formed the basis of Chandragupta Mauryas rule and victories, in fact there is a general view that Kautilyas Arthashastra deals only with matters of foreign policy and economy. It is seldom realised that a great portion of this book does in fact, deal extensively with matters of military, he indeed consolidated all the prevailing grand strategy and tactics of those times and gave his expert opinion on the subjects, which ultimately led to victories of Chandragupta Maurya , who never lost a single campaign. It thus emerges that the brilliance of Kautilya was not only in diplomacy but also in warfare, but the fact that strikes out is that he was able to lay down methods to organise and manage the armed forces in a vast empire. The concepts of military administration and organisation in war and peace were inadvertently covered and spread out in all the adhikaranas, thus leading for topic of research for bringing forth, integrating and analysing those sublime aspects of organisation and administration which formed the bed rock of administering and organising large armies as of Mauryan empire, and at the same time analyse its relevance for 20th century armies. Scope 9. This study concentrates on the relevance of Kautilyas teachings with regard to military aspects in general and organisational and administrational aspects in detail including the aspects of tactics, strategy. The study aims to focus on aspects, which are still relevant for the better management of a large army like ours. 10. Methods of Data Collection. The information has been gathered from books, journals and the internet. The bibliography of sources is appended at the end of the text. Chapterisation 11. The subject under study shall be covered under following chapters: CHAPTER III : ORGANISATION OF ARMY 12. Chandragupta maintained a large standing army , though he acquired a big army from his Nanda predecessors, he made impressive accretions to its strength, so that it stood at six lakh infantry,30000 horses,9000 elephants and 8000 chariots . An efficient war office supervised this powerful army. Its thirty members were divided into five member boards . The six boards were : (a) Admirality. (b) Transport. (c) Commissariat and Army Service Infantry. (d) Cavalry. (e) Chariots. (f) Elephants. 13. Kautilya had divided the army into four arms i.e Patti or Padati(Infantry), Asva(Cavalry), Ratha(Chariots) and Hast (Elephants) and hence it was named as Chaturangabala or the four limbed army headed by their respective Adyakshas or Superintendents[7]. They had Following roles to play: (a) War Elephants. The king relied mainly on elephants for achieving victory in battles. They were the premium arm of the army and relied on their strength and shock effect to route the enemy from the battle field. They were required to destroy all arms of the service of the enemy and to break his battle formations. Kautilya has laid much emphasis on the use of elephants as a battle winning factor with following functions: (i) Marching in front, making new roads. (ii) Protecting the flanks. (iii) Helping to cross water and climb and descend from mountains. (iv) Breaking up enemys unbroken ranks, trampling enemys army. (v) Causing terror, capturing battle positions. (vi) Destroying ramparts, gates, and towers. (b) The Cavalry. The cavalry being the most mobile arm in the army was used to influence the battle. It was tasked for the following. (i) Reconnoitring battle grounds, camping sites, forests. (ii) Securing level grounds, water supply sources. (iii) Destroying enemies and protecting own supplies and reinforcements. (iv) Extending the range of raids. (v) Assault the enemys battle formation. (vi) Attack the enemy from the rear. (vii) Cut off the enemys line of supply. (viii) Isolate the enemys strong point. (ix) Feign retreat so as to persuade the en to pursue, once the enemy lost its cohesion the cavalry was supposed to turn around and rout him. (x) Restoration of sit by plugging gaps in own def made by enemys assault. (xi) Making the initial attack, penetrating or breaking through (xii) Pursue the defeated en. (xiii) Rallying the troops.[8] (c) Chariots. The war chariots had lost their effectiveness particularly against well trained cavalry, Maurian army retained war chariots as an independent arm, and they were restricted to a single offensive role of launching a charge against infantry and a near static defensive role. The arm lacked versatility and was too sensitive to terrain; it could produce result only under ideal conditions. According to Kautilya the chariots were to act as the mainstay of the formation in offensive and defensive roles. Their main function was to break up the opponents battle formation during offensive operations and repulse the enemy assault own formation and recapture lost ground by counter attack. (d) Infantry. There were primarily two types of infantry in Mauryan times, archers and spearmen and both were employed together. Archers performed the role of close support weapons as well as artillery and spearman carried out close combat. The spearman carried a large shield for protection. Chandragupta Maurya had turned the infantry into large standing force like the other three arms in the service. Infantry was the main fighting arm as it had the ability to fight over all types of terrain during all seasons and both by day and night. They were also used to protect captured grounds. Apart from the tasks mentioned above, the infantry was also supposed to give close support to the other arms ie the Elephants and the Chariots[9]. Organizational Structure 14. Kautilya had emphasised on hierarchal system for administration of army. The structure of the defence forces at the highest levels was as shown below: Commander -in- Chief Senapati(Chief of Defence) Chief Commanders of Chariot Corps Elephant Corps Cavalry Infantry Divisional Commanders 28. The chief of the four wings were subordinates to the chief of defense. Under the Chief Commanders, there were Divisional commanders. There were other officers such as Camp Superintendents who were given specific functions during the march to battle. The structure below the level of Divisional Commanders is specific to battles. 29. Every division of the formation had its own distinguishing trumpet sound, flags and banners, these were be used to signal the commands to the division-dividing themselves in to sections, joining together ,halting, advancing, turning and attacking. Battalion commanders and Divisional Commanders were responsible for moblisation and demoblisation. Secret agents, prostitutes, artists and artisans and retired military officers were kept to watch over the loyalty or otherwise of soldiers. Duties of Defence Officials 30. The Chief of Defence. (a) Qualifications. The chief of defence was suppose to be an expert in the use of all kinds of weapons used in warfare, riding elephants, horses and chariots and he was conversant with the relative strength of the four wings of the army and how to deploy them in battle. (b) Responsibilities. (i) Discipline in armed forces. (ii) Formations. (iii) Strategy and Tactics. (aa) Choose the best time to start an expedition. (ab) Choose the best terrain and the best season for fighting. (ac) Arrange the disposition of own forces (in the light of the enemies array). (ad) Plan the breakup of the enemies rank. (ae) Destroy enemies scattered troops. (af) Besiege and destroy enemy forts. 31. The Chief Commander Of Elephant Corps. Responsibilities were:- (a) Protection of elephants. (b) Construction and Maintenance of stables, stalls. (c) Training of elephants. (d) Assigning tasks to them. (e) Equipping them for war 32. The Chief Commanders Of Other Corps. Responsibilities Common to all were: (a) Knowledge of different type of equipment needed for his wing and use of such equipment in war. (b) Giving appropriate training. (c) Keeping account of equipment and animals under his charge. (d) Maintaining their equipment in good condition and repairing them when necessary. (e) Supervising the work of all employed by him. (f) Maintaining Discipline. (g) Reporting to the king the state of readiness of his troops[10]. 33. Other Commanders:- (a) Commander of the Kings Guard (Antarvamsika). This very high official, who ranked just below the seven highest paid officials including the senapati, must have been an army general, promoted after having held the appointment of director-general of his own arm. He was directly in line for promotion to senapati. He was in the pay scale of 24,000 pannas, in the same scale as the kings chamberlain and the chancellor. His importance was due to his responsibility for the security of the king and other members of the royal family in the palace. There must have been two other officers directly under his command who assisted him in ensuring the safety and security of the king and the royal family. One was the commander of the male guards who guarded the palace and the commander of the female archers who were detailed as immediate guards for the kings person and his personal quarters. (b) Commander of the Marches (Antapala) The antapala was responsible for guarding the borders of the State. For this purpose border posts were established; their primary purpose was a check on entry of enemy agents, undesirable elements, collection of customs duties and control over the entry of foreigners. Kautilya advocates the establishment of only four border posts, one in each direction of the compass. The siting of border posts on naturally defensible terrain is advocated so these must have served a defensive purpose as well. The antapala must have been a military officer, possibly with detachments from the army for the protection of his posts. (c) Durgapala. Durgapala (fort commanders) must have been army officers who also commanded detachments of regular troops which acted as garrisons, Kautilya mentions at least one fortified city or capital of the State which needed a durgapala. In the text, he refers to other forts. sited to take advantage of naturally defensible terrain. Larger States obviously had more than one fort which acted as bases for military operations and offered refuge in case of need. Types of Troops 33. Kautilya lists six types of troops which may become available to a king and examines the relative merits. The troops are maula (standing army), bhrta (local volunteers auxiliaries), serni (organized mercenaries), mitra ( trops of an ally), amrta ( enemy deserters) and atavi ( tribal levies). [11] (a) Maula Troops. These are the standing army of a state composed of soldiers who may have served the kings family for several generations. They are residents of the state and their interest coincides with those of the king. Their loyalty is assured, their weapons, equipments and the animals are the best the state can provide and their motivation and state of training is high. It is however only prudent that a proportion of this force be left behind for the security of the state. Kautilya recommends that around one- fourth of the maula troops be left in the capital. The maula troops should form a large part of an expeditionary force if : (i) The enemys troops are well trained. (ii) The campaign is expected to be difficult and hard. (iii) Other available troops are unreliable. (iv) Surplus maula troops are available after fully meeting the requirements of the capital and the rest of the state. (b) Bhrta troops. These are locally raised volunteers engaged for the duration of the campaign. They are either veterans or first time volunteers, usually trained in the handling of personals weapons. By profession they were either farmers or small traders who decided to take part in a campaign. As natives they have a stake in the security and welfare of the state. Such troops are reverted back to their professions after the end of the campaign. Their employment is recommended if:- (i) The enemy is weak and a large number of volunteers are available. (ii) The campaign is expected to be easy with little actual fighting. (iii) Success is more or less assured by the use of other means like covert operations or diplomatic efforts. (c) Sreni troops. These were trained, equipped and organised bodies of mercenaries under their own leaders who were available for hire to fight for a specified period of time. Their employment is recommended when:- (i) The opposing forces consist of primarily mercenaries. (ii) Much hard fighting is not anticipated. (iii) Sreni troops are available in adequate numbers for the campaign as well as for the defence of the capital. (d) Mitra troops. These are troops loaned for a campaign by an ally. Their utilisation is advocated if :- (i) Such troops are available in large numbers. (ii) A short campaign is anticipated because of good chances of early success of diplomatic moves underway. (iii) To oblige an ally. (iv) It is proposed to deal at first with the irregular part of enemys army, with his allies and his population centres, prior to attacking his main forces. (e) Amrita troops. These comprise enemy deserters and prisoners of war. They are not to be trusted but their employment is recommended if the eventual outcome of battle is of little consequence. (f) Atavi Levies. These were bands of tribesmen from the jungle who join the king under the command of their own chiefs with the primary purpose of collecting loot. These bands and amitra troops are unreliable and Kautilya considers both categories as dangerous as a snake. The above two categories of troops may be employed if:- (i) If they are available in large numbers to attack the enemys cities and irregular troops. (ii) It is proposed to delay the employment of the main force. (iii) It is Politic to get rid of them because their loyalty is suspect. Atavi troops may be employed as guides or to counter the use of similar to levies by the enemy both categorys of troops. 34. An army composed of units recruited from diverse sources and ready to fight for plunder may be an energetic army. On the other hand, an army whose soldiers belong to the same region, caste or profession is a mighty army; it will continue to fight even if its pay is in arrears and there is shortage of food. It shows bravery even in adverse conditions and its loyalty cannot be subverted. 35. A king should make efforts to obstruct the mobilisation of his opponent. His potential recruits should be intercepted and if necessary recruited into own army. Such personnel should however be discharged at the right time but well before the commencement of actual operations. Analysis 36. A close analysis of Organisational structure propounded by Kautilya in his Arthashastra is a sterling resemblance of what is followed in Indian Army with slight modifications. And it is clearly evident that the basic finer intricacies of the organisation remained the same though the gross structure underwent a change keeping latest technological development in mind. 37. Kautilya was way ahead in his times with clear vision and military thinking thus created an organisational structure catering for civil supremacy and ensured effective coordination between various components of the army which is still relevant at large. Chandra Gupta Maurya had a large standing army to manage similar to that of Indian Army and without a sound organisational structure it would have been virtually impossible to achieve victories which he had set for himself. 38. Kautilya had clearly categorised his army into various corps i.e Cavalry, Elephants, Infantry, Chariots etc with a clear division of roles in war, which is very much akin to our present system of various line directorates in our armies. He had also formed clear command and control structure with minimum scope for ambiguity. He had emphasised on Hierarchical system Command and control in armed forces some 2300 years ago which is still relevant in todays times. 39. The organisation of the Maruan army was little different than the one followed in our army today. Though a striking similarity is the presence of the adyakshas that can be related to our line directorate which are too led by a Lieutenant General. The rank structure is not restricted to any arm but common throughout the army. To elaborate, the pattika was a rank not belonging to a particular arm but he commanded elements of all the arms. This helped in better command and control. This also ensured of a clear demarcation of command structure which was irrespective of the arm, this practice is still followed. 40. When coming to appointment of heads of departments, Kautilya had ensured that they had requisite degree of qualifications for tenanting that kind of appointment and had a clear defined standards and roles for all of them, which is still largely relevant in our armies where selection processes ensure that the said officer had undergone necessary courses and has a requisite skills suitable for tenanting that kind of appointment. 41. Kautilya had imposed various degrees of confidence in terms of loyalty and integrity depending upon the community of troops, probably a relevant thing in those times, but in present times it is debatable whether it is relevant or not as for some community specific armies it may hold good but in Indian context, though the Indian army still have pure regiments based on caste system but the pedestal of loyalty and integrity attributed to each community is the same thus this particular thing is not relevant to Indian Army of present times. 42. Kautilya proposed to have a standing core army consisting of officials down to the Pattika and the regular soldiers to be recruited for the period of war. Specialists like elephant riders archers etc were also recommended to be retained as permanent soldiers. Though India has a large standing army which is used both for protection of its borders and for launching offensive. There is no differentiation in the kind of troops used for both the tasks as envisaged by Kautilya. Probably We can have smaller standing army which can be well trained and equipped with the best of the equipment. On the other hand we can have a larger component of Territorial Army that can be mobilised before an operation. The defensive formation can have Territorial Army and some of the regular troops where as the strike formations can be composed of regular troops. This will help in reducing the defence expenditure and the money saved could be better used for equipping and training of the regular troops. CHAPTER IV: ORGANISATI ON OF LAND FORCES IN OPERATIONS Brave men, giving up their lives in good battles, reach in one moment even beyond those (worlds), which Brahmins, desirous of heaven, reach by a large number of sacrifices, by penance and by many gifts to worthy persons- Kautilya 43. Kauilya gives an exhaustive description of how to arrange the land forces for a set piece of battle, starting with positioning various kinds of forces at various echelons of battle field after giving due considerations to planning parameters. War fighting as propounded by Kautilya has an uncanny resemblance to the methodology in practice today. He was a believer of a strong central force along with two wings which can manoeuvre and the importance of reserves. He is perhaps one of the first thinkers to suggest a tactical grouping of forces with a clear cut commander. This helped in easier organisation of the forces as well as downsizing the army when not in need. Tactical Grouping. 44. Grouping of arms for battle at the lowest level has been practised in ancient India since epic times. Kautilya suggested a standard form of grouping of all arms, for the first time ever. The suggested groups corresponds to a remarkable degree with the current practice in modern armies adopted well after WW II . The lowest grouping was at platoon level, a group now referred to as combat team. Because of this remarkable similarity, the modern designations of combat team, combat group and combat command.[12] Each horse was supported by six foot soldiers three of which were archers (Pratiyodhas) and the remaining three were armed with a sword, spear and a shield (Pratigopas) Initially the archers were placed in front so that they could exploit the range of their weapons and as the battle came to close contact, they would recede and the pratigopas would come in front. 45. Patti. Each elephant or a chariot enjoyed the support of five horse groups. This entire group including an elephant / chariot, five horses, 15 Pratiyodhas and 15 Pratigopas formed the lowest tactically grouped sub unit called the Patti. The patti was commanded by a Pattika. 46. Sena. Consisted of ten patties and was commanded by a Senapati or a battle group under a battalion/regimental commander and ten or less senas formed a brigade commanded by a Nayaka. 47. Intervals .There are two sets of intervals or gaps between the files and ranks laid down by Kautilya, one is a narrow gap with the proviso to increase it by double or three times and the other is a larger gap between archers which extends to other arms. It is possible that smaller gaps are for forming up on ceremonial and drill purposes (close order) were archers do not need extended space and larger intervals (open order) for battle information. In a battle formation adopted in an open order the minimum gap between two files of archers was one dhanu(bow) of five hastas(forearm) or 2.5 mtrs, between horses it was three dhanu(7.5 mtrs) and between elephants or Chariots it was five dhanus(12.5 mtrs). The interval between the centre and a wing as well as a wing and its flank was also 12.5 mtr. Kautilya does not indicate the gap to be maintained between ranks but it may safely be assumed that the interval between sub ranks,ie. Within a rank of elephant or chariots, i.e between a sub rank of patiyodhas and a horse would be three dhanus and between ranks, i.e the rare sub rank or padagopas of the front rank and the front sub rank of patiyodhas of the second or centre rank would be five dhanus(12.5 mtrs). These intervals could be increased in accordance with the ground available for battle and the size of the force to be deployed. 48. Reserves. Reserves held an important place in the battle formations as per Kautilya, reserves were directly involved in shaping of the battle field and were placed directly under the control of the king. A firm base was to be established on a suitable terrain approximately 600 -700 m behind the army and it was here that the reserves were placed. The reserve consisted of about one third of the best available troops. The king was advised to be stationed at this firm base after the actual fighting commenced and be in a position to influence the battle by sending reinforcement when and where needed and to make the firm base as a rallying point in case of a reverse.[13] 49. Standard battle formation (vyuha). A standard brigade group was formed for battle is referred to as a standard battle formation or array. Additions and alterations were made to it, according to a formula, in order to accommodate additional troops available for deployment. The standard brigade group deployed five senas each which contained nine to ten pattis; total troops deployed were: (a) Elephants or Chariots : 45 (b) Horses : 225 (c) Patiyodhas(archers) : 675 (d) Padagopas(foot soldiers) : 675 This force of five senas formed up in five groups i.e centre (urasysa) in middle, the right wing (kaksa) and the left wing (kaksa) after an interval of 12.5 mtrs on both sides and after another similar interval the right flank and the left flank (paksa). Each of these groups or senas formed up for battle in three ranks of three elephants each (three patti). Each elephant had three horse groups in front and two behind it with standard deployment as illustrated earlier. Thus making a total of 27 archers a head of each sena. The archers could effectively utilise their long range capability before close contact was made with the enemy and the change over placed them with the spearmen behind the horses, just prior to the two sides engaged in close combat. However in such a deployment the interval between elephants was at around nine dhanus or 22 mtrs which is tactically unsound and out of supporting range of neighbouring elephants , in any case Kautilya places the suitable gap between ele phants at 12.5 mtrs. The only solution seems to be to for

Financial Analysis of Microsoft Corp. Essay

This report is issued in order to inform the public about Microsoft Corporation. We analyzed the profitability and liquidity of this company. In addition, we were able to provide recommendations for investments or credits in Microsoft for the best interest of the public. Profitability ratios refer to the relative measure to what an actual created profit. Through these ratios the company is allowed to see how profitable the company. In addition it can serve as an examination of the overall performance of the company’s operations and how do these compare to past performances or other companies. The ratios in which accounting measures the profitability of a company are Profit Margin, Price over Earnings, Return on Equity and Return on Assets. In terms of Profit Margin it has a high ratio, which means that our company is turning 76.3% more of each dollar that we sell. The results of this could be the increase in the quantity sold, increase in the price, and decrease in costs. Compared to Apple, whose profit margin ratio is 46.2%, Microsoft is able to be more profitable in terms of profit margin. The Price over Earnings ratio helps to determine how much does a share cost is compare to how much the company is earning and it is interpreted as how long it will take you to earn back what you invested in a company. In this case for someone who invests in Microsoft it will take them approximately 15.3 years, compare to Apple’s 13.5 years, to earn back the amount that they will invest. The Return on Equity ratio helps to measure the profitability of a company for the investor and how it manages its equity. In this case, Microsoft experiences a 10.3% of Return on Equity. Ideally, a company would like to have a higher Price over Earnings ratio; compared to Apple’s 51.5% Return o n Equity, Microsoft stands at a lower percentage which might not attract others to invest in the company. Return on Assets ratio evaluates how a company is able to produce a profit before being on debt; it reflects on the efficiency of the management. In this case Microsoft’s 5.9% was again below Apple’s 33.4% in its ratio. Cash Flows are the inflows and outflows of cash in a company, which are directly related to the revenues and expenses in Microsoft’s income statement. The Net Income that Microsoft recorded for 2012 was $16,978.00 and its Cash Flows from Operating Activities equaled to 31,626.00. In this case the company recorded higher cash flows from operating activities compared to its net income. This was a result of the company’s management on its current liabilities and its current assets. Also, the addition in depreciation and amortization, goodwill, and stock-based compensation; these accounts are not part of the cash flows yet they still make an impact on the income of the company. Liquidity being, that which represents how fast the company is able to convert its assets into cash, is denoted with various ratios. The current ratio (D) takes the current assets of a firm and divides them by the firm’s current liabilities. Currently Microsoft’s current ratio is 2.9, showing that its current assets exceeds its current liabilities. Apple Inc., which is Microsoft’s contender, has 1.6 for its current ratio indicating that it’s not as quick in converting its assets into cash. Another liquidity ratio is the quick ratio (E); this ratio is calculated by subtracting inventory from current assets and dividing that difference by the firm’s current liabilities. Microsoft’s quick ratio is 2.6, showing that the company is still doing well in converting its assets into cash even after removing its most liquid asset –inventory. Apple’s quick ratio is 1.1, which shows how much inventory constructs the company’s current assets. Microsoft has been doing very well within its liquidity measures and meets its obligations as they become due. When discussing solvency, we analyze ratios that measure the long-term liability of a business to pay off its debts. The times interest earned ratio (H) is a solvency ratio; taking earnings before interest and tax, and dividing that total by the interest expense. Microsoft’s times interest earned ratio is 87.7, showing that this firm is very successful especially before any interest or tax is deducted from its overall earnings. Apple’s times interest earned ratio could not be calculated due to the fact that their data didn’t indicate a specific interest expense to complete the equation. Another solvency ratio is the debt to equity ratio (I); taking the firms total liabilities and dividing that total by owners’ equity. Currently Microsoft’s debt to equity ratio is 0.8, showing that there is less risk among the firm’s financials. This also means that the company doesn’t rely too much on external lenders. Apple’s debt to equity ratio seems to also be within good standing because it is .5, so it doesn’t rely too much on external lenders either. Overall, both liquidity and solvency ratios represent how financially stable this company is within converting its current debt into cash as well as its long-term debt. In most cases Apple Inc. falls behind Microsoft Corp. within its short and long term debt solvency. When analyzing Microsoft’s capital structure the percentage of liabilities that construct the firm’s total assets is 42.87%. Showing that less than half of the firm’s total assets are represented by liabilities. Now the percentage of the total assets that are represented by stockholders’ equity is 57.12%. Showing that stockholder’s equity represents slightly more than half of Microsoft’s total assets. When analyzing the capital structure of Microsoft’s competitor Apple, there are distinct differences. The percentage of liabilities that construct the firm’s total assets is 36.06%. Showing that unlike Microsoft’s percentage of liabilities to assets, there are a lot fewer liabilities representing the total assets of the firm. Now the percentage of stockholders’ equity that constructs the total assets of the firm is 64.93%. Showing that more than half of the firm’s total assets are constructed out of its stockholders’ equity. Apple seems to have fewer liabilities supporting its total assets and a higher percentage of stockholders’ equity. Overall, it seems that Microsoft Corp. has a significantly different capital structure than that of its competitor Apple Inc.. IFRS refers to the International Financial Reporting Standards; it is a set of accounting standards constructed by an independent, not-for-profit organization called the International Accounting Standards Board (IASB). IFRS provides regulation for the company to prepare its financial statements off of, rather than setting rules for industry-specific reporting. The International Accounting Standards Board (IASB) is an independent, private-sector body based in London that currently develops and approves International Financial Reporting Standards. The IASB is thoroughly responsible for all technical matters of the IFRS Foundation including, the full discretion in developing and pursuing its agenda, subject to certain consultation requirements with the Trustees and the public, and exposure drafts, following the approval and issuing of Interpretations developed by the IFRS Interpretations Committee. Some of the differences between IFRS and GAAP is that IFRS is considered to be more of a principles based accounting standard whereas in contrast the U.S. GAAP is considered more of a rule based accounting standard. Under IFRS, the LIFO method for accounting for inventory costs is not allowed. Under U.S. GAAP, either LIFO or FIFO inventory can be used. The move to a single method of inventory costing could potentially enhanced similarities between countries, and removes the need for analysts to adjust LIFO inventories in their comparison analysis. The reporting for each would differ. For instance the treatment of intangible under U.S. GAAP is recognized at fair value, while under IFRS, it is only recognized if the asset will have a future economic benefit and has measured reliability. Under IFRS, if inventory is written down, the write down can be reversed in future periods if specific criteria are met. Under U.S. GAAP, once inventory has been written down, any reversal is prohibited. The potential adoption of IFRS is likely to impact not only reporting structures but also how individual transactions are captured and processed. In many cases, operating leases under GAAP could become finance leases under IFRS. Impacts could be mostly identified on taxes and balance sheet ratios. IFRS may generate running obligations sooner than under GAAP due to the â€Å"more likely than not† principle. Contracts would need to be evaluated carefully under GAAP. Based on the previous analyses of the company’s data I can say I would definitely loan money to Microsoft Corp. short-term and long-term. The liquidity of the company calculated using current ratio and quick ratio represents how fast the company is able to convert its assets into cash. Seeing that the firm showed signs of quick asset to cash turnover within both current and quick ratio, shows that they are able to pay off any loans they might incur. In contrast to Apple its contender, which had low ratios depicting negative signs of asset to cash turnover. When looking at the solvency measures, we can see the long-term viability of a business to pay off its debts. We used the times interest earned ratio and the debt to equity ratio to depict what trend this firm had with balancing debt. Microsoft seemed to show very high earnings before interest and taxes, which resulted in a high times interest earned ratio overall. This high ratio means that this firm has great ability in paying off its interest and debt; this serves to be another viable reason for Microsoft to be approved for a loan. Another solvency measure that was taken was through the debt to equity ratio, which represents the degree to which the assets of the business are financed by the debts and the shareholders’ equity of a business. This ratio showed that Microsoft’s overall business doesn’t rely too much on the external lenders of the company. It shows it can attain profit through its own activities, and therefore has overall less risk. Overall, due to the fact that Microsoft has quick asset to cash turnover, increasingly high earnings before interest and tax, and a low debt to equity ratio; Microsoft would be an ideal candidate for short and long term loans. When discussing whether an individual should buy, sell, or hold on the stock of this company, I would recommend the hold on stocks. Based on the profitability ratios, which help us calculate how a firm is performing, Microsoft, compared to its competition Apple, is behind in terms of profitability. Microsoft has a higher profit margin then Apple does; however, its price over earnings, returns on equity and returns on assets fall below its competition. This can be a discouragement for anyone who is interested in the company. Yet, even though Microsoft’s overall profitability is not as good as Apple’s profitability, there could be still a chance in which the company can provide investors with more profitable income since the company is not at risk. Thus, this could take longer then expected, that is why it is better to hold on the stocks of this company. So, I recommend this individual hold on their stocks and see how the turnout ends for the most recent advancements Microsoft has made as a company, and from those figures on either decide to sell or buy more stocks.

Reasons for Lack of Development in Laos

In South East Asia, in the centre of the Southeast Asian peninsula, lies the land-locked country Laos. The country that is now the Lao People†s Democratic Republic (LPDR, or Laos) has a slightly greater land area than Uganda and is bordered by several countries. On the north lies China, on the north-east Vietnam, on the south it is bordered by Cambodia, on the west by Thailand, and on the north-west by Burma. These neighbours have, to varying degrees, influenced Laotian historical, cultural, and political development. The recorded history of Laos began in the fourteenth century with Fa Ngum (reigned 1353-73), the first king of Lan Xang. Prior to this, Laos was inhabited by Mongols. Under Fa Ngum, the territory of Lan Xang was extended and it remained in these approximate borders for another 300 years. In the 1690†³s conflicts arose with Burma, Siam (Thailand), Vietnam, and the Khmer kingdom, and they continued in the eighteenth century ending in Siamese domination. Early in the nineteenth century, Siam held authority over much of the territory of contemporary Laos, which then consisted of the principalities of Louang Phrabang, Vientiane, and Champasak. Siam at the time sought to extend its influence in Indochina since it faced conflicts with France, which then had established a protectorate over Vietnam. By the end of the nineteenth century, France had replaced Siam as the dominant power on the South East Asian peninsula. In 1890, Laos was integrated into the French colonial empire of Indochina as a group of directly ruled provinces, except for Louang Phrabang, which was ruled as a protectorate. The French ruled indirectly through the king of Louang Phrabang and a hierarchy of royal officials, although the French resident supervisor always had the final word. The French in 1946 signed an agreement with the king of Louang Phrabang that established him as king of a unified Laos within the French Union. The French granted internal rule over a united Laos in 1949 and most of the nationalist leaders, who had fled at the time of the French reoccupation, returned to the country. However, Laos remained part of the French union. In 1954, independence was recognised by the Geneva Conference. In the following years the Pathet Lao, a group of pro-Communist nationalists that was aided by North Vietnam, gained strength as a rival to the Royal Lao Government (RLG). Coalition governments in 1957 and 1962 lasted only a very short time, and fighting intensified between the two sides. Meanwhile Laos became increasingly involved in the conflict between the United States and Communist forces (Vietminh) in Vietnam. In 1964, the United States began bombing Laos with the aim of stopping the flow of troops and supplies along the Ho Chi Minh Trail, which ran from North Vietnam through Laos to South Vietnam. The bombing continued for several years and caused immense damage. In 1973 a cease-fire was finally arranged in Laos and the following year a coalition government was formed. In 1975, after the Communist victories in Vietnam and Cambodia, the Pathet Lao took control of government and in December the Lao People†s Democratic Republic was declared. After that the American aid was withdrawn, Laos formed special relationships with the Union of Soviet Socialist Republics (USSR) and Vietnam, which stationed many thousands of troops and advisers in the country. But by 1986 the state of the economy was so poor that the government introduced major reforms, including making the majority of public enterprises independent of state control. One of the government†s aims was to decrease dependence on Vietnam, and in more recent years it has also established better relations with neighbouring Thailand, as well as other countries such as the United States, which has agreed to extend development aid in return for a crackdown on the drug trade. Laos is largely mountainous and forested, and only about 4 percent of its total land area is arable. With about 54 per cent covered with forests, the country is made up of a mountainous area extending north and south throughout most of the country and a small area of lowland on the southern and south-western borders. The mountainous area covers about nine-tenths of the country and can be divided into a northern section and a southern section. The northern section has heavily forested mountain ranges and plateaux cut by deep, narrow valleys and gorges, and the south section contains more barren forested limestone terraces. The principal river of Laos, the Mekong, enters in the north-west from Thailand and flows south along the border between Thailand and Laos before entering Cambodia. The offshoots of the Mekong rise in the mountains and flow through deep valleys. The climate of Laos is tropical, but there are wide variations in temperatures within different areas, mainly because of the variations in elevation. However, the principal climatic features are determined by the monsoons. The wet summer season takes place from about May to October, while the cool season lasts from about November to February. The remainder of the year is hot and humid. Laos has extensive forest resources, and although there has been a considerable deforestation in recent years, about half of the country is still covered with forests. There exists a so-called slash-and-burn agriculture which means that forests are burned in order to create fields for growing crops. The consequence if this is that the soil fails to fertilise, the lands are therefore abandoned and even more trees are cut down in another location. Together with poor forest management, the slash-and-burn methods are the main reasons behind the deforestation. Another negative consequence of the reduced forest resources, together with the changes in cultivation, is the deterioration in Laos† abundant water resources. Less than one-third of the rural population has access to safe drinking water. Recently, Laos has also had great environmental difficulties with its wildlife. About 70 percent of the wildlife habitat was lost during the 1980s, and a number of species of mammal, bird, and plant have been threatened with extinction. The population as of 1996 was estimated at approximately 4. 9 million people. The population growth rate is relatively high, it is estimated at about 2. 9 percent per year. However, child and infant mortality rates are also high, and life expectancy averages less than fifty-two years. The population density of Laos is quite low, with more than 85 percent of the population being rural, living in small villages of less than 1,000 people. Rural life is dependant of the changing agricultural seasons, such as conditions of drought or flood. Those staying in urban areas mostly live in the Mekong River valley towns and those of its offshoots. Vientiane, the capital and largest city of Laos, is also the centre of a very limited industrial sector. The effects of recent economic reforms have been rather limited and mainly concentrated to the Vientiane plain. There is a great lack of recent statistics of Laos and many of them are not very reliable. Nonetheless, it is safe to say that Laos is one of the poorest countries in the world, with a gross national product (GNP) estimated to range from US$295 to US$350 per inhabitant and a gross domestic product (GDP) of US$206 per capita. The Laotian economy is heavily influenced by the weather since it is mainly based on agriculture, which employs most of the population. The main crop is rice but corn, vegetables, tobacco, coffee, and other foods are also grown. It has been said that Laos has a largely unskilled work force and that it needs development. Advancements such as these are particularly important for two areas with potentially high foreign exchange earnings; agro-forestry and hydropower. Forestry has been a source of economic benefit despite the lack of a modern transportation network. Laos† other many resources include gypsum, tin, gold, and iron ore, but the potential for the exportation of these resources has not yet been realised. However, the government is attempting to expand industrial activities. By far, imports surpass exports. The country has to import manufactured goods, medicine, and machinery. Laos exports electricity from its hydroelectric power stations, wood products, textiles, coffee, and tin, but these commodities are all very limited. Laos is also a major producer of opium. The economy depends heavily on foreign aid which comes mostly from Western nations. Some of the aid that the government receives is used to stop the drug trade. Today the literacy rate of Laos is approximately 57 percent. The education and social services of the country are primitive, although some improvements have been made lately. The LPDR has made a commitment to five years of universal primary education, but limited financial resources and a lack of trained teachers and teaching materials have restricted educational opportunities. Enrolments have increased, however. Western health care is largely restricted to the more â€Å"urban† areas, due to the difficulties of transportation. Similarly, improvements in health care are constrained by finances and the limited numbers of trained health care workers. About 85 per cent of the Lao are Theravada Buddhist and many Lao, especially the highland mountain peoples, practice animism. Buddhism has long been a strong force in Lao culture and remains a major influence in everyday life, despite a Communist government. Even top officials worship in the Buddhist tradition. Each Lao village has its own temple, called a wat, which is the centre of festivities and rituals. The Laotian culture is closely knitted with its religion. Buddhist temples in every village serve as intellectual centres. The life of the Lao peasant is organised around religion, and most activities are directed by the Buddhist calendar. Louang Phrabang and Vientiane are known as â€Å"Cities of a Thousand Temples† and have many examples of traditional Buddhist art and architecture. There are various reasons for the poor economic state and welfare position of Laos. The main reasons are three: political, economical, and geographical. The location of Laos has often made it a buffer between more powerful neighbouring states, as well as a crossroads for trade and communication. Migration and international conflict have contributed to the present ethnic composition of the country and to the geographic distribution of its ethnic groups. On the other hand, this position has also often meant that the country has been a target for conflicts and considerable pressure. Its neighbours, such as Thailand (Siam) and Vietnam, have tried to influence and exploit Laos† weak position for their own interests, which in turn has been of great detriment for the country. As in most other underdeveloped countries, Laos has not had the capacity to exploit successfully its human and natural resources. The educational level of the population has stayed relatively low, and its rich natural wealth has not been developed in an appropriate manner. The weak political leadership has resulted in a mismanagement of the economy and of the potential possibilities of its population. Laos is the only landlocked country in South East Asia, and this naturally faces the country with great problems. Its natural resources are mostly unexploited or unsurveyed. Because of its mountainous topography, Laos has few reliable transportation routes. This inaccessibility has historically limited the ability of any government to maintain a presence in areas distant from the national or provincial capitals. It has also limited interchange and communication among villages and ethnic groups. The Mekong and Nam Ou rivers are the only natural channels suitable for large-draft boat transportation; furthermore, from December through May low water limits the size of the craft that may be used over many routes. The Khong falls at the southern end of the country also prevent access to the sea. Despite all the negative aspects of the Laotian political and economical environment that has been described above, many experts predict a relatively happy future for the country in the longer perspective. The country is today in peace and harmony, at least in comparison with the conditions ten or twenty years ago. There is no open threat from its neighbours, and no open rebellion from forces within the nation. The expectations from the donors community have grown, and many observers have great hopes that the economic development will go for the better in the coming years, partly as a consequence of the for relaxed conditions in Laos.

Essay about The mozart effect - 1002 Words

The Mozart Effect Does classical music really help you study better? Many recent research studies show that music idoes in fact improve cognitive thinking. In 1993, researchers at the University of California at Irvine discovered the so-called Mozart Effect - that college students â€Å"who listened to ten minutes of Mozarts Sonata for Two Pianos in D major K448 before taking an IQ test scored nine points higher† than when they had sat in silence or listened to relaxation tapes. Other studies have also indicated that it doesn’t matter the artist; people retain information better if they hear classical or baroque music while studying. The most easily influenced stage of human life is early childhood, therefore it is encouraged that children†¦show more content†¦The human mind is constantly processing and picking up information. Music is an ordered and predictable sequence of sounds. When the brain hears music, it tries to decode it. In decoding those symbols and patterns, it sets up â€Å"neural highways, or synapses† , to receive and examine data. These pathways then can be used for remembering other symbol-oriented information, such as language and math. Like a muscle, the brain becomes stronger the more it is worked, and these workouts are achieved by listening to classical music. Mozart’s music is exceptionally difficult to decode, therefore the brain must work harder, thus making one smarter. Not only does music affect thought, but it also benefits health. Students usually study in quiet, relaxed surroundings while listening to serene music. Classical music can steady a fast heartbeat and a slower heartbeat induces relaxation. Exercise plays a critical role in maintaining good health, and relaxing music can be favorable to this. Music reduces muscle tension, resulting in a better work out. Scientists performed controlled studies using adult males who were around twenty-five years old. Blood samples were taken before and after treadmill running. The experiment found that with the presence of music, â€Å"heart rate, blood pressure, and lactate secretion in the brain were significantly lower† . The results proved that musicShow MoreRelatedThe Mozart Effect Essay1461 Words   |  6 Pagesâ€Å"Mozart effect† is a believe that listening to music could enhance individuals’ intelligence, and therefore lead to better performance in various spheres, such as languages and arithmetics. There are researches pointed out that listening to music while tasks performance would result in significant boost of scores. The effect of listening to Mozart’s music on spatial seasoning was looked over in 1933 by Dr. Rauscher, three common tests about abstract spatial reasoning were given to the participantsRead More The Mozart Effect Essay1215 Words   |  5 PagesThe Mozart Effect Ever since human intelligence has been a factor for survival, people have been trying to think of new, innovative ways to increase their mental capabilities. In the past, people have taken pills, prepared home-made concoctions, and have even shaven their heads to clear their minds. Even now, new ideas, such as magnetic mattresses for better blood circulation to the brain, are patented and sold promising mental wellness and stability – and making money for the inventor. WhenRead MoreThe Mozart Effect Essay931 Words   |  4 PagesIt has long been believed that music can evoke specific thoughts and feelings from the listener. But can music –specifically the music of Wolfgang Amadeus Mozart- summon hidden intelligences within the human brain? That is the question scientists are trying to answer. In the mid-nineties, scientists, Frances Rauscher, Gordon Shaw and Katherine Ky, claimed that music could boost the listener’s intelligence up to 9 points (Steele 2). To ma ny, this allegation seemed a bit far-fetched and soon otherRead MoreEssay On Mozart Effect1061 Words   |  5 PagesThe Mozart Effect, broadly stated, is the idea that music can help with many other aspects of a student’s education. Its research started decades ago and is still highly debated today, with some condition to the findings. However, in Bob Duke’s article, he explains why it doesn’t matter whether of not it helps tests scores. He believes we should not be using this as an excuse for keeping music programs because there are countless better reasons. Duke’s article highly reinforced why I personally believeRead More The Mozart Effect Essay1250 Words   |  5 PagesThe Mozart Effect is a study that shows listening to classical music can have positive effects on learning and attitude. This occurrence is called the Mozart Effect, and it has been proven in experiments by many scientists. This research has caused much controversy between believers and nonbelievers, because The Mozart Effect is said to enhance the brain and reasoning; it is also used to reduce stress, depression, or anxiety; it induces relaxation or sleep; and the Mozart Effect activates the bodyRead MoreMozart Effect And Its Effect On Mental Development1479 Words   |  6 PagesThe Idea of the Mozart effect came at a time when scientists were trying to merge the aspect of psychology (the science of the mind), and neuroscience (the science of the brain). Scientists felt that music plays a major role in the learning and thinking processes (â€Å"The Mozart Effect†). The Mozart effect refers to the resultant enhanced mental performance that arises when one listens to Mozart’s music. It is suggested that listening to Mozart makes one smarter by improving their spatial intelligenceRead MoreThe Mozart Effect and Infant Intelligence1408 Words   |  6 PagesIn modern society intelligence is highly competitive and subject to scrutiny; therefore, it i s understandable that a child’s intelligence is a primary concern for many parents. The Mozart effect, popularised in the 1990s, resulted in many parents believing that simply exposing their child to music composed by Mozart would improve their intelligence (Campbell, 1997). The claim was founded by research published in the journal Nature, which suggested that spatial reasoning could be temporarily enhancedRead MoreEssay on Psychology: The Mozart Effect1332 Words   |  6 Pagesevaluate the questionable validity of the â€Å"Mozart Effect†. The Mozart Effect implies that playing Mozart to a baby will increase its cognitive abilities, a claim which has instigated a rapidly increasing market of â€Å"CDS to make your baby smarter†. This claim, despite having partial merit and widespread popular acceptance, is fundamentally incorrect. Through the analysis of various attempted replication studies, it is abundantly clear that the ‘Mozart Effect’ is a falsehood. This is evidenced by: theRead MoreMusic Of Mozart Effect On Children1266 Words   |  6 PagesThe â€Å"Mozart effect† is a statement based on research studies claiming that listening to the music of Mozart may produce an increase in your IQ and performance in certain types of mental tasks. This effect was applied not just to adults, but later also to unborn and postpartum babies up to 60 days old. The â€Å"Mozart effect† stemmed from research carried out in 1993 by researchers Frances H. Rauscher, Gordon L. Shaw and Katherine N. Ky at the Center for the Neurobiology of Learning and Memory at UC IrvineRead MoreThe Mozart Effect of Boosting IQ863 Words   |  3 Pagesthemselves as entrepreneurs are going along with this and trying to build up their IQs because they feel it may end up helping them in the long run. This people are the ones who are motivation is the center of this book by Don Campbell called â€Å"The Mozart Effect: Tapping the Power of Music to Heal the Body, Strengthen the Mind and Unlock the Creative Spirit†. Music is what has a outstanding result on individuals because they tend to take time to listen to Music, and this people are the ones who possess