Tag: Fundamentals of Accountancy

Home Loan

A Home Loan is a form of financial assistance extended by banks and financial institutions. Such banks or financial institutions can help increase your budget to purchase a house with the loan amount offered. You can avail of the loan by meeting certain Home Loan eligibility criteria for a specific tenure. You must return the loan amount borrowed over the course of the tenure along with interest according to predetermined interest rates. You repay the Home Loan in monthly instalments, just like you would repay any other loan. Today, most banks offer Home Loans that not only help you purchase ready-made homes, but also facilitate the construction of a house from scratch. In addition, you can also seek Home Loans for renovation or repair purposes.

This is the most common type of home loan availed to purchase a house. There are many housing finance companies, public banks, and private banks that offer housing loans where you borrow money to purchase the house of your choice and repay the loan in monthly instalments.

You can get up to 80%-90% of the house’s market price in the form of financing. The lender will hold the house until you completely repay the loan.

Home Construction Loan

This is the right home loan type if you already have a plot of land and you need financing to construct a house in that land.

Home Extension Loan

Say you already own a house and you would like to extend the house with another room or another floor to accommodate the growing family. Home extension loan provides financing for this purpose.

Home Improvement Loan

A home improvement loan provides financing for renovating or repairing the house if there’s any fault in the existing system, such as painting the house’s interior or exterior, plumbing, upgrading the electrical system, waterproofing the ceiling, and more.

Home Loan Balance Transfer

The current home loan interest rate may be overwhelming, or you may not be happy with your current lender’s service; you can transfer the home loan’s outstanding balance to a different lender who offers a lower interest rate and better service. Upon transfer, you can even check out the possibilities of a top-up loan on your existing one.

Composite Home Loan

This type of home loan provides financing for purchasing the plot of land where you would like to construct a house and for the construction, both within a single loan.

Benefits of Taking a Home Loan

Tax benefits

The foremost benefit of a home loan is the income tax deduction you can claim on the interest and principal repayments. You can claim up to Rs.1.5 lakh on principal repayments u/s 80C, up to Rs.2 lakh on interest repayments u/s 24B, up to Rs.2 lakh on interest repayment in special circumstances u/s 80EE and 80EEA, and up to Rs.1.5 lakh on stamp duty expenses u/s 80C.

Due diligence of property

When you go through a bank to purchase a house, the bank will conduct thorough checks on the property from the legal perspective and check if all the documents produced are valid.

This due diligence check from the bank’s end will reduce the risk of you being scammed. If the bank approves the property, that means you and your house are safe.

Lower interest rate

The home loan interest rate is much lower as compared to any other loan types available. If you come across a cash crunch, you may get a top-up on the existing home loan at a lower interest rate than a personal loan to solve the issue.

Balance transfer facility

You can transfer the home loan from one lender to another for several reasons, such as the interest rate, service charges, customer service experience, and others.

Auto Loans

An auto loan is a loan that allows you to buy a desired four wheeler, and pay the vehicle off in equated monthly installments for a set tenure instead of having to pay the full price upfront. The terms of an auto loan depend on various factors, including your income and credit history.

Though everybody may not have enough cash to purchase the auto with a lump-sum payment, numerous lenders can help you realise your dream of buying the auto through a auto loan.

Applying for a auto loan is now hassle-free, easy, and paperless. Just make a few clicks, and you can submit the auto loan application form online. Almost every bank today offers auto loans at attractive interest rates. Based on one’s affordability, it is now quite easy to take a auto loan and then pay EMIs without really biting into a person’s finances.

Features and Benefits of Auto Loan

• Get financing for purchasing new and used autos.
• The financing can go up to 85%-90% of the on-road price of the auto. Some banks offer up to 100% financing on the vehicle’s on-road price to certain conditions.
• The loan tenure can range from one year up to seven years.
• The loan amount can be up to three times the annual income of the applicant.
• Some lenders offer instant financing facilities for autos.
• You may get additional discounts and offers if you choose to purchase a auto from the dealer or manufacturer the bank has a tie-up with.
• The auto purchased through financing will be held as collateral until the loan is repaid.
• The repayment structure most commonly followed for a auto loan is equated monthly instalments (EMI).

Personal loans

Personal Loan is an unsecured credit provided by financial institutions based on criteria like employment history, repayment capacity, income level, profession and credit history. Personal Loan, which is also known as a consumer loan is a multi-purpose loan, which you can use to meet any of your immediate needs.

Benefits

• With various financial institutions offering Personal Loan online services, the loan amount is disbursement within a few hours provided the lender is convinced of your repayment capacity.
• Unlike other types of loans like Home Loan or Gold Loan, where you must provide several documents, Personal Loans require minimum documents and the approval process is quick.
• Another significant feature of Personal Loan is that the lenders offer you the flexibility to choose your loan tenure. Usually, Personal Loan tenure ranges from one to five years. So, you can select the loan term based on your repayment capacity. You should opt for a shorter loan, so that you can save on the interest payment and repay the amount faster.

Safe Lockers

A safe deposit locker is a rented locker that a bank offers you to store your valuables. This could be jewellery, gemstones, financial or legal papers, insurance policies, identity proof, such as a passport, and other similar items of high value. You can rent a locker for as long as you want for a certain fee. The key to the locker remains with you, and you can access your items whenever you need them after informing the bank.

Features:

• Lockers Branches are equipped with high security features and specially built strong rooms.
• Safe Deposit Locker facility is one of the ancillary services provided by the Bank to its customers.
• Locker facility is available in over 2500 branches across the country. Wide availability of lockers in various sizes and at various locations.
• Hassle-free payment options through your HDFC Bank Account.
• Extended banking hours for accessing lockers.
• Nomination facility available.
• Nomination on safe-deposit lockers enables HDFC Bank to release the contents to the nominee of the person hiring in the event of their death. If a locker is held jointly, and one of the people hiring dies, the contents can only be removed jointly by the nominee(s) and the survivors.
• The nomination facility is available to anyone hiring a locker.
• For those hiring on an individual basis; nomination can be made in favour of one individual.
• For those hiring jointly by more than one hirer: more than one nominee can be made. In such scenario no. of nominees are restricted to the no. of joint hirers.
• Unpaid locker rentals are recovered from the nominee.
• If the hirer is major and the nominee is minor, the nomination will be made by someone lawfully entitled to act on behalf of the minor.

Jewel Loans

Avail a gold loan from a bank in India with interest rates ranging between 7% p.a. and 29% p.a. You can avail a loan amount of up to Rs.1.5 crore and repayment tenure starting at 3 months and going up to 4 years depending on the loan scheme availed by you. You can pledge your gold ornaments and jewellery for funds in the event of a financial emergency.

Features:

Purpose: You can avail a gold loan in order to finance various needs, such as for educational purposes, medical emergencies, going on a holiday, and so on.

Security: The gold that has been pledged with the bank or the financial institution acts as the security or collateral against which the loan amount is provided.

Tenure options: The tenure options can range from a minimum of 3 months to a maximum of 48 months.

Fees: The other fees and charges that might be applicable on a gold loan are – processing fee, late payment charges/ penalty for non-payment of interest, valuation fees, etc.

Repayment Options: There are three main options offered by lenders to borrowers for the repayment of a gold loan. These are:

• Repayment in Equated Monthly Installments (EMI)
• Payment of interest upfront and repayment of the principal loan amount at the end of the loan tenure.
• Payment of interest on a monthly basis and repayment of the principal loan amount at the end of the loan tenure.

Rebates: Several lenders offer the option of discount on the prevailing interest rate on the loan against gold if the borrower repays the interest regularly. This rebate can be 1% – 2% off on the original rate of interest.

Consumer Durable Loans

Consumer durable loan is a special category of personal loan that is generally used to purchase electronic gadgets and household appliances that include smartphones, televisions, PlayStations, home theatres, laptops, cameras, washing machines, modular kitchens and much more. Typically this loan type can be availed for amounts ranging from Rs. 10,000 to Rs. 15 lakh. Consumer loans are mostly available at a 0% interest rate or No Cost EMI and can be repaid within a range of a few days to 36 months.

Benefits:

Minimum Formalities

Some basic documents are required to apply for such loans, making the process relatively simple.

0% Interest Rate

Consumer durable loans are typically available at a lower interest rate than personal loans. Tata Capital offers such loans with no interest and minimum payment. Tata Capital does not even ask for any security deposits, making the loan application process effortless.

Tenure

The loan tenure for a Tata Capital Consumer Durable loan is between 6-24 months. This may differ from one lending institution to another. Usually, a longer tenure attracts a lower EMI and vice versa. As the repayment period affects EMI payments, it is important to calculate the EMI on an online EMI calculator before applying for loans.

Education Loans

An education loan is a loan that students apply to meet the financial requirements to complete their course. Many banks and NBFCs in India offer education loans at competitive rates to help educate the upcoming innovators and leaders.

Types of Education Loans

Based on Location

Domestic Education Loan

Students who would like to pursue education in India can apply for this loan type. The loan will get approved only if the applicant is admitted to an Indian educational institution and meets all other lender criteria.

Overseas Education Loan

Such loans help students realise their dream of pursuing the course of their desire in a foreign institution. The loan covers the airfare, accommodation, and tuition fee for students who wish to study abroad only if they satisfy the eligibility criteria.

Based on Course

Undergraduate Loans

This type of education loan is provided for students to give financial aid to students so they can complete their undergraduate degrees. An undergraduate degree will usually be a 3 to the 4-year long course under various specialisations. Having an undergraduate degree helps individuals to land a decent job and start earning.

Postgraduate Loans

Many undergraduates would like to continue their education with a postgraduate course, usually a 2-year long course in India. An advanced degree is desired to get more profound knowledge in the area of interest.

Career Development Loans

Many professionals who work for a few years in corporate jobs prefer to pause their career and take up professional courses and training to improve their employment prospects. Such individuals would strive hard to get into reputed business and technical schools to polish their skills and reach greater heights in their career.

Based on Collateral

Loan Against Property, Deposits, and Securities

You can pledge immovable assets, such as agricultural land, residential land, flat, house, and others, fixed deposit certificates, recurring deposits, gold deposits, bonds, debentures, and equity shares to get the necessary financing to pursue education.

Third-Party Guarantee

A guarantee letter from an employee of the bank or a home bank can help the student get an education loan.

Features and Benefits

• 100% financing available for certain conditions.
• The loan amount can go up to Rs.1 crore for international students and up to Rs.50 lakh for domestic students.
• The financing covers other expenses, such as student exchange travel expenses and laptop.
• Preferential forex rates may be available for international disbursements.
• Loan repayment tenure can go up to 12 years after six months from completing the course.
• Parents should be joint borrowers for the education loan.

Women Bank

A women-only bank is a financial institution catering exclusively to women. In 2001, Dubai Islamic Bank opened a women-only bank branch.

Iran opened such a bank in Mashhad on June 7, 2010. The bank’s director stated, “the aim is not sex segregation but respect for women.” The government-owned bank is Bank Melli.

In Saudi Arabia, most banks have some sort of women-only branch within the main branch. Not necessarily all branches and banks have this. Albeit the main branch can usually be accessed by both men and women.

in 2013, India launched its first public sector bank for women only, in Mumbai, aimed at economically empowering millions of women in India.

Payments Bank

Payments banks are new model of banks, conceptualised by the Reserve Bank of India (RBI), which cannot issue credit. These banks can accept a restricted deposit, which is currently limited to 200,000 per customer and may be increased further. These banks cannot issue loans and credit cards. Both current account and savings accounts can be operated by such banks. Payments banks can issue ATM cards or debit cards and provide online or mobile banking. Bharti Airtel set up India’s first payments bank, Airtel Payments Bank.

Features of Payment Banks

• They are differentiated and not universal banks.
• These operate on a smaller scale.
• It needs to have a minimum paid-up capital of Rs. 100,00,00,000.
• Minimum initial contribution of the promoter to the Payment Bank to the paid-up equity capital shall at least be 40% for the first five years from the commencement of its business.

Activities that Can Be Performed By Payment Banks

• The money received as deposits can be invested in secure government securities only in the form of Statutory Liquidity Ratio (SLR). This must amount to 75% of the demand deposit balance. The remaining 25% is to be placed as time deposits with other scheduled commercial banks.
• Payment banks can take deposits up to Rs. 2,00,000. It can accept demand deposits in the form of savings and current accounts.
• Payments banks will be permitted to make personal payments and receive cross border remittances on the current accounts.
• It can issue debit cards.

Savings Bank

A savings bank is a financial institution whose primary purpose is accepting savings deposits and paying interest on those deposits.

They originated in Europe during the 18th century with the aim of providing access to savings products to all levels in the population. Often associated with social good, these early banks were often designed to encourage low-income people to save money and have access to banking services. They were set up by governments or by socially committed groups or organisations such as with credit unions. The structure and legislation took many different forms in different countries over the 20th century.

Savings banks and savings-and-loans are often confused. The original function of savings banks to service consumers was limited to savings. Savings banks invested in government and corporate debt. Savings and loan associations had a dual purpose which gave more importance to home loans. Towards the end of the 20th century their functions blurred as savings banks issued mortgages.

The advent of Internet banking at the end of the 20th century saw a new phase in savings banks with the online savings bank that paid higher levels of interest in return for clients only having access over the web.

Microfinance Banks

Microfinance is a category of financial services targeting individuals and small businesses that lack access to conventional banking and related services. Microfinance includes microcredit, the provision of small loans to poor clients; savings and checking accounts; microinsurance; and payment systems, among other services. Microfinance services are designed to reach excluded customers, usually poorer population segments, possibly socially marginalized, or geographically more isolated, and to help them become self-sufficient.

Microfinance initially had a limited definition: the provision of microloans to poor entrepreneurs and small businesses lacking access to credit. The two main mechanisms for the delivery of financial services to such clients were:

(1) Relationship-based banking for individual entrepreneurs and small businesses.

(2) Group-based models, where several entrepreneurs come together to apply for loans and other services as a group.

Over time, microfinance has emerged as a larger movement whose object is: “a world in which as everyone, especially the poor and socially marginalized people and households have access to a wide range of affordable, high quality financial products and services, including not just credit but also savings, insurance, payment services, and fund transfers.”

Proponents of microfinance often claim that such access will help poor people out of poverty, including participants in the Microcredit Summit Campaign. For many, microfinance is a way to promote economic development, employment and growth through the support of micro-entrepreneurs and small businesses; for others it is a way for the poor to manage their finances more effectively and take advantage of economic opportunities while managing the risks. Critics often point to some of the ills of micro-credit that can create indebtedness. Many studies have tried to assess its impacts.

New research in the area of microfinance call for better understanding of the microfinance ecosystem so that the microfinance institutions and other facilitators can formulate sustainable strategies that will help create social benefits through better service delivery to the low-income population.

Creditor

A creditor could be a bank, supplier or person that has provided money, goods, or services to a company and expects to be paid at a later date. In other words, the company owes money to its creditors and the amounts should be reported on the company’s balance sheet as either a current liability or a non-current (or long-term) liability.

Some creditors, such as banks and other lenders, have lent money to the company and will require the company to sign a written promissory note for the amount owed. When a promissory note is required, the company borrowing the money will record and report the amount owed as Notes Payable.

If the creditor is a vendor or supplier that did not require the company to sign a promissory note, the amount owed is likely to be reported as Accounts Payable or Accrued Liabilities.

Other creditors include the company’s employees (who are owed wages and bonuses), governments (who are owed taxes), and customers (who made deposits or other prepayments).

Some creditors are referred to as secured creditors because they have a registered lien on some of the company’s assets. A creditor without a lien (or other legal claim) on the company’s assets is an unsecured creditor.

Debtors

A debtor is a person, company, or other entity that owes money. In other words, the debtor has a debt or legal obligation to pay the amount owed.

A debtor is an individual or entity that owes money to a creditor. The concept can apply to individual transactions, so that someone could be a debtor in regard to a specific supplier invoice, while being a creditor in relation to its own billings to customers. Even a very wealthy person or company is a debtor in some respects, since there are always unpaid invoices payable to suppliers. The only entity that is not a debtor is one that pays up-front in cash for all transactions. Thus, an entity could be a debtor in relation to specific payables, while being flush with cash in all other respects.

A debtor is considered to be in default if it does not pay a debt within the payment terms of the debt agreement. Thus, a short payment or late payment could trigger a default.

The liability owed by a debtor can be discharged in bankruptcy, or with the agreement of the counterparty. In either case, if the liability is no longer valid, the entity involved is no longer a debtor in relation to that liability.

When a customer hires a safe deposit locker from the bank, the relation between the bank and the customer is lessor and lessee. The bank is the lessor (licensor) and the hirer of safe deposit locker is the lessee (licensee/tenant).

Bailor and Bailee

Bailment refers to delivery of goods by one person to another for some purpose under a condition that the goods to be returned to depositor when the purpose is accomplished or otherwise disposed of according to the directions of the person while delivering the goods (Sec 148 of contract act). The person delivering the goods is known as bailor and the person to whom goods are delivered is called bailee.

Ex.

• The articles, valuables, securities deposited in the safe deposit vault of the bank are also an example of bailment. In this case, the customer and banker relationship is bailor and bailee, besides their relationship as trustee and beneficiary. The bailor is still the rightful owner of the item though the item is in bailee’s possession. As a bailee, the bank has to take care of the goods bailed.
• A car parked in a parking area where parking charge is collected. The car owner is the bailor and the contractor who collected the charge is the bailee. As a bailee, the contractor has to take care of the car parked at his parking area.
• Relationship of Pledger and pledgee is also a type of bailment in which goods are delivered by one person to another as a security for payment of a debt or performance of a promise (Sec 172, Contract Act, 1872). For example, the borrower delivers the gold jewel to the bank as a security for the loan granted by the bank. In this case, the borrower who pledged the gold to the bank is the bailor (pledger) and the bank is the bailee (pledgee).

Trustee and Beneficiary

When a banker accepts items like securities or documents for safe custody or maintains escrow accounts of the customers, the relation between the banker and customer is a Trustee and the Beneficiary (Trustier). The bank is the Trustee and the customer is the beneficiary.

 (Escrow is a separate type of bank account generally opened for various business deals like acquisition, transfer of shares and debentures of a company, where money deposited in banks will be released only under fulfillment of certain conditions of a contract).

Agent and Principal

When a bank collects cheques, bills and other instruments for customers, the relation between the bank and customer is that of Principal and Agent. The bank also makes regular payments of insurance premium rent etc. as per standing instruction received from the customer. In the above cases also the relation between the bank and the customer is of Principal and agent. The bank act as the agent and customer the principal.

Advisor and Client

When a customer invests in securities, the banker acts as an advisor. The advice can be given officially or unofficially. While giving advice the banker has to take maximum care and caution. Here, the banker is an Advisor, and the customer is a Client.

Relationship of Bailor and Bailee

When Customer deliver goods to bank for purpose of safekeeping under a condition that goods will be returned to depositor when purpose is completed. In this case, Customer becomes bailor and bank becomes bailee. The process is known as Bailment. Example of Bailment is; Articles, Securities and valuables kept in safe deposit locker. In this case, relationship between banker and customer is Bailee and Bailor.

The relationship between banker and customer may be terminated in any of the following ways

1. By mutual agreement:

The relationship between banker and customer may be terminated by mutual agreement.

2. Death of customer:

Death of a customer is an obvious reason for terminating the relationship between banker and customer. On the receiving the notice of death of the customer the bank stops the payment. The dissolution of a corporation customer is equivalent to death.

3. Lunacy of customer:

The Lunacy of a Customer terminates the relationship between banker and a customer. Bankers authority to pay cheques is revoked by notice of insanity. But unless the evidence of insanity is fairly conclusive, the banker’s wisest course would appear to be to treat the customer as sane in so that the banker is not held liable for damages for wrongful dishonor.

4. Notice to terminate:

In case of any current account, no such notice by the customer to a banker appears necessary. But if it is a deposit account the banker could insist on the notice period specified on the fixed deposit receipt/book.

5. Bankruptcy:

The bankruptcy or winding up of the bank is a sufficient ground for terminating the relationship between a Banker and customer.

6. Order of court:

If the court restrains the banker to carry on further of the banking business, the account of the customer comes to an end.

7. Transfer of balance amount:

If the customer transfers the whole amount of balance of his account to any other person, then the account may be closed by the banker. In this way the relationship of banker and customer comes to an end.

Voluntary Termination

The banker cannot close the account of the customer. If the person wanted to close his account with his free consent, then the relationship between banker and customer can be terminated.

Closing the account after bank notice

It is the right of the banker that if he found and illegal activity with the account or any other reasonable ground, the bank can close the account after giving proper notice to the customer.

A computer virus is a type of computer program that, when executed, replicates itself by modifying other computer programs and inserting its own code. If this replication succeeds, the affected areas are then said to be “infected” with a computer virus, a metaphor derived from biological viruses.

Computer viruses generally require a host program. The virus writes its own code into the host program. When the program runs, the written virus program is executed first, causing infection and damage. A computer worm does not need a host program, as it is an independent program or code chunk. Therefore, it is not restricted by the host program, but can run independently and actively carry out attacks.

Virus writers use social engineering deceptions and exploit detailed knowledge of security vulnerabilities to initially infect systems and to spread the virus. Viruses use complex anti-detection/stealth strategies to evade antivirus software. Motives for creating viruses can include seeking profit (e.g., with ransomware), desire to send a political message, personal amusement, to demonstrate that a vulnerability exists in software, for sabotage and denial of service, or simply because they wish to explore cybersecurity issues, artificial life and evolutionary algorithms.

Computer viruses cause billions of dollars’ worth of economic damage each year.

In response, an industry of antivirus software has cropped up, selling or freely distributing virus protection to users of various operating systems.

The terms “Virus” and “malware” are often used interchangeably, but they’re not the same thing. While a computer virus is a type of malware, not all malware are computer viruses.

The easiest way to differentiate computer viruses from other forms of malware is to think about viruses in biological terms. Take the flu virus, for example. The flu requires some kind of interaction between two people like a hand shake, a kiss, or touching something an infected person touched. Once the flu virus gets inside a person’s system it attaches to healthy human cells, using those cells to create more viral cells.

A computer virus works in much the same way:

• A computer virus requires a host program.
• A computer virus requires user action to transmit from one system to another.
• A computer virus attaches bits of its own malicious code to other files or replaces files outright with copies of itself.

It’s that second virus trait that tends to confuse people. Viruses can’t spread without some sort of action from a user, like opening up an infected Word document. Worms, on the other hand, are able to spread across systems and networks on their own, making them much more prevalent and dangerous.

Types

There are several types of computer viruses that can infect devices. This section will cover computer virus protections and how to get rid of computer viruses.

Multipartite Virus

A multipartite virus uses multiple methods to infect and spread across computers. It will typically remain in the computer’s memory to infect the hard disk, then spread through and infect more drives by altering the content of applications. This results in performance lag and application memory running low.

Resident Virus

Viruses propagate themselves by infecting applications on a host computer. A resident virus achieves this by infecting applications as they are opened by a user. A non-resident virus is capable of infecting executable files when programs are not running.

Multipartite viruses can be avoided by not opening attachments from untrusted sources and by installing trusted antivirus software. It can also be prevented by cleaning the boot sector and the computer’s entire disk.

Direct Action

A direct action virus accesses a computer’s main memory and infects all programs, files, and folders located in the autoexec.bat path, before deleting itself. This virus typically alters the performance of a system but is capable of destroying all data on the computer’s hard disk and any USB device attached to it. Direct action viruses can be avoided through the use of antivirus scanners. They are easy to detect, as is restoring infected files.

Overwrite Virus

Overwrite viruses are extremely dangerous. They can delete data and replace it with their own file content or code. Once files get infected, they cannot be replaced, and the virus can affect Windows, DOS, Linux, and Apple systems. The only way this virus can be removed is by deleting all of the files it has infected, which could be devastating. The best way to protect against the overwrite virus is to use a trusted antivirus solution and keep it updated.

Browser Hijacker

A browser hijacker manually changes the settings of web browsers, such as replacing the homepage, editing the new tab page, and changing the default search engine. Technically, it is not a virus because it cannot infect files but can be hugely damaging to computer users, who often will not  be able to restore their homepage or search engine. It can also contain adware that causes unwanted pop-ups and advertisements.

Browser hijackers typically attach to free software and malicious applications from unverified websites or app stores, so only use trusted software and reliable antivirus software.

File Infector

A file infector is one of the most common computer viruses. It overwrites files when they are opened and can quickly spread across systems and networks. It largely affects files with .exe or .com extensions. The best way to avoid file infector viruses is to only download official software and deploy an antivirus solution.

Web Scripting Virus

A web scripting virus attacks web browser security, enabling a hacker to inject web-pages with malicious code, or client-side scripting. This allows cyber criminals to attack major websites, such as social networking sites, email providers, and any site that enables user input or reviews. Attackers can use the virus to send spam, commit fraudulent activity, and damage server files.

Protecting against web scripting is reliant on deploying real-time web browser protection software, using cookie security, disabling scripts, and using malicious software removal tools.

Network Virus

Network viruses are extremely dangerous because they can completely cripple entire computer networks. They are often difficult to discover, as the virus could be hidden within any computer on an infected network. These viruses can easily replicate and spread by using the internet to transfer to devices connected to the network. Trusted, robust antivirus solutions and advanced firewalls are crucial to protecting against network viruses.

Boot Sector Virus

A boot sector virus targets a computer’s master boot record (MBR). The virus injects its code into a hard disk’s partition table, then moves into the main memory when a computer restarts. The presence of the virus is signified by boot-up problems, poor system performance, and the hard disk becoming unable to locate. Most modern computers come with boot sector safeguards that restrict the potential of this type of virus.

Prevention

There’s no way to stop viruses from being created. There will always be a young programmer wanting to prove that they can “Play with the big boys,” or a hacker who wants to just see chaos and damage. And, just like real-world vandalism, someone who creates viruses can start their “career” with a harmless prank but grow into causing millions of dollars of damage by deleting massive files from multiple corporations.

The best way to protect home computers against viruses is to have updated antivirus software, keep computers and software updated with the latest patches, and monitor the behavior of all users of a computer, including learning what types of files can be harboring viruses (such as Microsoft word documents in a massively forwarded e-mail). There will always be viruses, but staying vigilant will help keep a computer from becoming infected.

1. Install antivirus or anti-malware software

It might seem obvious, but many home computers don’t have this protection. It’s essential to keep your PC virus free.

2. Keep your antivirus software up to date

Protective software is one thing; but keeping it up to date is another. While free antivirus software is better than nothing, it’s not the best solution. Microsoft has a free security package if you operate with Windows, even though you would’ve already paid for the Windows licence. Many people don’t know about it; but, actually, it’s a good form of protection.

3. Run antivirus scans regularly

This might also go without saying, but we often forget to do it. Adjust the settings so scans run at regular intervals (like once a week). Using the device while antivirus software is running can be challenging. Try running it at night when the computer is idle. Because we usually turn our devices off at night, we tend to overlook scans. Set the antivirus software to run on a specific night and only leave the computer on at that time. Make sure it doesn’t switch off automatically or go into hibernation mode.

4. Keep your operating system up to date

Whether you use Windows, Mac OS X, Linux or another operating system, always keep it up to date. Developers regularly release patches to plug security leaks. The patches will help keep your system safe. You should also keep your antivirus software up to date. New viruses and malware are emerging constantly. Their software scanning is as sophisticated as their databases, so make sure you’re on top of things.

5. Protect your network

Many PCs connect to files, printers and the Internet via Wi-Fi.  Make sure the network requires a secure password and never browse on open networks.

Use WPA or WPA2 encryption. PME is no longer secure enough. Expert hackers can circumvent it in minutes. It’s also a good idea not to disclose the name of your Wi-Fi network (the SSID). You can connect to the network manually on your device by typing in the SSID and password. If you usually let guests use your Internet, give them an alternative SSID and password just in case.

6. Think before you click

Avoid websites you don’t trust. Don’t open email attachments from people or companies you don’t know. Don’t click on links in unwanted emails. Always hover the mouse over a link (especially a short URL) before clicking on it to see where it will take you.

If you need to download something from the Internet, an email, an FTP site, a file exchange service, etc., check it over first. Good antivirus software will do it automatically, although you have to make sure it’s running.

7. Keep your personal information secure

This is probably the hardest thing to do on the Internet. Many hackers use social engineering over brute force to access your files. They can gather enough information to hack your online accounts to collect even more data.

They go from account to account until they have all they need to get hold of your bank details and steal your identity. Be careful on message boards and social media. Block all your privacy settings and avoid using your real name in chat forums.

8. Don’t use unsecured Wi-Fi

Don’t use the free, open Wi-Fi (no password or encryption) in cafés, libraries, airports, etc. Think about it. If you can connect easily, how far can a hacker go?

9. Back up your files

Backing up all your files is the best form of protection. Ideally, keep your files in three places: where you work on them (your computer); an external storage device; and somewhere else.

Use a back-up service or get two external hard drives and keep one at work; a relative or a friend’s house; or in a safe.

10. Use several secure passwords

Never use the same password twice, especially for bank accounts. We usually use the same email address or username, which are easy to see and steal. If you always use the same password and someone uncovers it, it’ll take just a few seconds to hack into all your accounts.  Choose a strong password with lower- and upper-case letters, numbers and symbols. Make it easy to remember but difficult to predict. Don’t use dates or pets’ names.

In environmental philosophy, environmental ethics is an established field of practical philosophy “which reconstructs the essential types of argumentation that can be made for protecting natural entities and the sustainable use of natural resources.” The main competing paradigms are anthropocentrism, physiocentrism (called ecocentrism as well), and theocentrism. Environmental ethics exerts influence on a large range of disciplines including environmental law, environmental sociology, ecotheology, ecological economics, ecology and environmental geography.

There are many ethical decisions that human beings make with respect to the environment. For example:

• Should humans continue to clear cut forests for the sake of human consumption?
• Why should humans continue to propagate its species, and life itself?
• Should humans continue to make gasoline-powered vehicles?
• What environmental obligations do humans need to keep for future generations?
• Is it right for humans to knowingly cause the extinction of a species for the convenience of humanity?
• How should humans best use and conserve the space environment to secure and expand life?
• What role can Planetary Boundaries play in reshaping the human-earth relationship?

Ecologic extension

Alan Marshall’s category of ecologic extension places emphasis not on human rights but on the recognition of the fundamental interdependence of all biological (and some abiological) entities and their essential diversity. Whereas Libertarian Extension can be thought of as flowing from a political reflection of the natural world, ecologic extension is best thought of as a scientific reflection of the natural world. Ecological Extension is roughly the same classification of Smith’s eco-holism, and it argues for the intrinsic value inherent in collective ecological entities like ecosystems or the global environment as a whole entity. Holmes Rolston, among others, has taken this approach.

This category might include James Lovelock’s Gaia hypothesis; the theory that the planet earth alters its geo-physiological structure over time in order to ensure the continuation of an equilibrium of evolving organic and inorganic matter. The planet is characterized as a unified, holistic entity with ethical worth of which the human race is of no particular significance in the long run.

Conservation ethics

Marshall’s category of ‘conservation ethics’ is an extension of use-value into the non-human biological world. It focuses only on the worth of the environment in terms of its utility or usefulness to humans. It contrasts the intrinsic value ideas of ‘deep ecology,’ hence is often referred to as ‘shallow ecology,’ and generally argues for the preservation of the environment on the basis that it has extrinsic value instrumental to the welfare of human beings. Conservation is therefore a means to an end and purely concerned with mankind and inter-generational considerations. It could be argued that it is this ethic that formed the underlying arguments proposed by Governments at the Kyoto summit in 1997 and three agreements reached in the Rio Earth Summit in 1992.

Consequentialism

Consequentialist theories focus on the consequences of actions, this emphasises not what is ‘right’, but rather what is of ‘value’ and ‘good’. Act Utilitarianism, for example, expands this formulation to emphasise that what makes an action right is whether it maximises well-being and reduces pain. Thus, actions that result in greater well-being are considered obligatory and permissible. It has been noted that this is an ‘instrumentalist’ position towards the environment, and as such not fully adequate to the delicate demands of ecological diversity.

Aldo Leopold’s Land Ethic (1949) tries to avoid this type of instrumentalism by proposing a more holistic approach to the relationship between humans and their ‘biotic community’, so to create a ‘limit’ based on the maxim that “a thing is right when it tends to preserve the integrity, stability, and beauty of the biotic community; it is wrong when it tends otherwise.” Thus, the use of natural resources is permissible as long as it does not disrupt the stability of the ecosystem. Some philosophers have categorised Leopold’s views to be within a consequentialist framework, however it is disputed whether this was intentional. Other consequentialist views such as that of Peter Singer tend to emphasise the inclusion of non-human sentient beings into ethical considerations. This view argues that all sentient creates which are by nature able to feel pleasure and pain, are of equal moral consideration for their intrinsic value. Nevertheless, non-sentient beings, such as plants, rivers and ecosystems, are considered to be merely instrumental.

Deontology

Deontological theories state that an action should be based on duties or obligations to what is right, instead of what is good. In strong contrast to consequentialism, this view argues for principles of duty based not on a function of value, but on reasons that stand beyond the consequences of an action. Something of intrinsic value, then, has to be protected not because its goodness would maximise a wider good, but because it is valuable in itself; not as a means towards something, but as an end in itself. Thus, if the natural environment is categorised as intrinsically valuable, any destruction or damage to such would be considered wrong as a whole rather than merely due to a calculated loss of net value. It can be said that this approach is more holistic in principle than one of consequentialist nature, as it fits more adequately with the delicate balance of large ecosystems.

Avoid harm

“Harm” means negative consequences, especially when those consequences are significant and unjust. Examples of harm include unjustified physical or mental injury, unjustified destruction or disclosure of information, and unjustified damage to property, reputation, and the environment. This list is not exhaustive.

Well-intended actions, including those that accomplish assigned duties, may lead to harm. When that harm is unintended, those responsible are obliged to undo or mitigate the harm as much as possible. Avoiding harm begins with careful consideration of potential impacts on all those affected by decisions. When harm is an intentional part of the system, those responsible are obligated to ensure that the harm is ethically justified. In either case, ensure that all harm is minimized.

To minimize the possibility of indirectly or unintentionally harming others, computing professionals should follow generally accepted best practices unless there is a compelling ethical reason to do otherwise. Additionally, the consequences of data aggregation and emergent properties of systems should be carefully analyzed. Those involved with pervasive or infrastructure systems should also consider Principle.

Be fair and take action not to discriminate

The values of equality, tolerance, respect for others, and justice govern this principle. Fairness requires that even careful decision processes provide some avenue for redress of grievances.

Computing professionals should foster fair participation of all people, including those of underrepresented groups. Prejudicial discrimination on the basis of age, color, disability, ethnicity, family status, gender identity, labor union membership, military status, nationality, race, religion or belief, sex, sexual orientation, or any other inappropriate factor is an explicit violation of the Code. Harassment, including sexual harassment, bullying, and other abuses of power and authority, is a form of discrimination that, amongst other harms, limits fair access to the virtual and physical spaces where such harassment takes place.

The use of information and technology may cause new, or enhance existing, inequities. Technologies and practices should be as inclusive and accessible as possible and computing professionals should take action to avoid creating systems or technologies that disenfranchise or oppress people. Failure to design for inclusiveness and accessibility may constitute unfair discrimination.

Be honest and trustworthy

Honesty is an essential component of trustworthiness. A computing professional should be transparent and provide full disclosure of all pertinent system capabilities, limitations, and potential problems to the appropriate parties. Making deliberately false or misleading claims, fabricating or falsifying data, offering or accepting bribes, and other dishonest conduct are violations of the Code.

Computing professionals should be honest about their qualifications, and about any limitations in their competence to complete a task. Computing professionals should be forthright about any circumstances that might lead to either real or perceived conflicts of interest or otherwise tend to undermine the independence of their judgment. Furthermore, commitments should be honored.

Respect privacy

The responsibility of respecting privacy applies to computing professionals in a particularly profound way. Technology enables the collection, monitoring, and exchange of personal information quickly, inexpensively, and often without the knowledge of the people affected. Therefore, a computing professional should become conversant in the various definitions and forms of privacy and should understand the rights and responsibilities associated with the collection and use of personal information.

Computing professionals should only use personal information for legitimate ends and without violating the rights of individuals and groups. This requires taking precautions to prevent re-identification of anonymized data or unauthorized data collection, ensuring the accuracy of data, understanding the provenance of the data, and protecting it from unauthorized access and accidental disclosure. Computing professionals should establish transparent policies and procedures that allow individuals to understand what data is being collected and how it is being used, to give informed consent for automatic data collection, and to review, obtain, correct inaccuracies in, and delete their personal data.

Know and respect existing rules pertaining to professional work

“Rules” here include local, regional, national, and international laws and regulations, as well as any policies and procedures of the organizations to which the professional belongs. Computing professionals must abide by these rules unless there is a compelling ethical justification to do otherwise. Rules that are judged unethical should be challenged. A rule may be unethical when it has an inadequate moral basis or causes recognizable harm. A computing professional should consider challenging the rule through existing channels before violating the rule. A computing professional who decides to violate a rule because it is unethical, or for any other reason, must consider potential consequences and accept responsibility for that action.

Maintain high standards of professional competence, conduct, and ethical practice

High quality computing depends on individuals and teams who take personal and group responsibility for acquiring and maintaining professional competence. Professional competence starts with technical knowledge and with awareness of the social context in which their work may be deployed. Professional competence also requires skill in communication, in reflective analysis, and in recognizing and navigating ethical challenges. Upgrading skills should be an ongoing process and might include independent study, attending conferences or seminars, and other informal or formal education. Professional organizations and employers should encourage and facilitate these activities.

Foster public awareness and understanding of computing, related technologies, and their consequences

As appropriate to the context and one’s abilities, computing professionals should share technical knowledge with the public, foster awareness of computing, and encourage understanding of computing. These communications with the public should be clear, respectful, and welcoming. Important issues include the impacts of computer systems, their limitations, their vulnerabilities, and the opportunities that they present. Additionally, a computing professional should respectfully address inaccurate or misleading information related to computing.

Ethical issues in HR

Equal Opportunity

The HR managers must regularly monitor the company’s hiring practices to make sure there is no discrimination in the hiring process based on ethnicity, sexual orientation, race, religion and disability. However, simply abiding with Equal Employment Opportunity Commission (EEOC) guidelines does not guarantee ethical behavior.

Harming Some While Benefitting Others

HR managers do much of the screening while the hiring process is still on. By its very nature, screening leaves some people out and permits others to move forward. In short, the ones left out will be affected by not getting the job, no matter how much they need it.

HR managers can neglect the emotionalism of such situations by adhering strictly to the skill sets and other needs of the position, but there will always be a gray area where HR managers may scale how much each applicant wants and needs the job.

Privacy Issues

Any person working with any organisation is an individual and has a personal side to his existence which he demands should be respected and not intruded. The employee wants the organisation to protect his/her personal life. This personal life may encompass things like his religious, political and social beliefs etc. However certain situations may arise that mandate snooping behaviours on the part of the employer. For example, mail scanning is one of the activities used to track the activities of an employee who is believed to be engaged in activities that are not in the larger benefit of the organisation.

Race, gender and Disability

In many organisations till recently the employees were differentiated on the basis of their race, gender, origin and their disability. Not anymore ever since the evolution of laws and a regulatory framework that has standardised employee behaviours towards each other. In good organisations the only differentiating factor is performance! In addition, the power of filing litigation has made put organisations on the back foot. Managers are trained for aligning behaviour and avoiding discriminatory practices.

Performance Appraisal

Ethics should be the basis of performance evaluation. Highly ethical performance appraisal demands that there should be an honest assessment of the performance and steps should be taken to improve the effectiveness of employees. However, HR managers, sometimes, face the dilemma of assigning higher rates to employees who are not deserving them; based on some unrelated factors eg. closeness to the top management. Some employees are, however, given low rates, despite their excellent performance on the basis of factor like caste, religion or not being loyal to the appraiser.

Safety and Health

Industrial work is often hazardous to the safety and health of the employees. Legislations have been created making it mandatory on the organisations and managers to compensate the victims of occupational hazards. Ethical dilemmas of HR managers arise when the justice is denied to the victims by the organisation.

Restructuring and layoffs

Restructuring of the organisations often result in layoffs and retrenchments. This is not unethical, if it is conducted in an atmosphere of fairness and equity and with the interests of the affected employees in mind. If the restructuring company requires closing of the plant, the process by which the plant is chosen, how the news is to be communicated and the time frame for completing the layoffs is ethically important.

Unethical practices of HRM

Employers:

They sometime indulge in unfair practices like one or more of the following:

(i) Creating split in union leaders by inducing regionalism, casteism or ego problems

(ii) Not caring for just demands of the Trade Union and not behaving respectfully with union leaders.

(iii) Trying to create rift between different unions if there are more than one recognised union.

(iv) Biased attitude in selection, transfers, promotions, and training and development activities.

(v) Giving different treatment and facilities to different people in the same level posts.

Employees:

However some common problems are as follows:

(i) False claim of age, qualifications and experience. Some even forge marks cards to claim certain qualifications.

(ii) Producing fake certificates of SC/ST category to obtain a job in that category.

(iii) Head of personnel projecting or short listing candidates belonging to his commonly, region or religion.

(iv) Creating transfers, openings, promotions suiting to their own kith and kin.

(v) Taking decision very slow or very fast to suit conveniences of own kith and kin.

Government Agencies:

Government agencies role is reducing year after year due to lesser employments in government sector.

However, the unfair or unethical practices continue in government sector in following manner:

(i) Announcing the vacancies and not taking any action further. Not clear about processing dates, written tests/interview dates and selection dates. Accountability is totally lacking.

(ii) Functioning of government employment offices is not transparent, not reliable and in fact its purpose is not well served.

(iii) Government offices and selection committees will be excessively cautious of reservation quotas and possible court cases rather than going through the responsibilities in an unhindered manner.

(iv) Most of the time the government selections get stalled or delayed due to situations like question paper leakage or court cases,

(v) The government method of selections is at best suited to low paid jobs and not for senior level posts.

Manpower Consultants:

By and large manpower consultants do a good job as mostly they are hired by the private organisations. Moreover their services are mostly for official posts and there is no statute to follow rules of reservations.However, here also sometimes certain unfair strategies do take places:

(i) Consultants tend to play the caste and regional game since they are free to operate the way they like.

(ii) There is possibility between HRD managers of corporate and consultants to organise selections as per their own plans and strategies which invariably helps kith and kin, community and regional following.

(iii) Some consultants guide candidates to alter the bio-data to suit the corporate.

Outside Sources:

The outside sources dealing with corporate are vendors, dealers, traders, customers, courier service, statutory offices representatives, banks and financial institutes. The interaction of these people will be more frequent, though there are many more people contacting the corporate.

The conduct, transactions and dealings of these outsiders also influence the ethical and unethical values and conduct of corporate employees. It is very important that outsiders conduct themselves in such way that the values and attitudes of both sides are fair and just. Deviation of fair attitude leads to wrong decisions, corrupt practices and damage to the corporate reputation.