IAS Prelims GS Questions and Answers - May 14, 2016

ANSWER: Elongated sea with steep land on three sides

Explanation:

• A fjord is a deep, narrow and elongated sea or lake drain, with steep land on three sides. The opening toward the sea is called the mouth of the fjord, and is often shallow.
• The fjord's inner part is called the sea bottom.

ANSWER: States Division

Explanation:

• Ministry of External Affairs has set up a new division – “States Division” - in the Ministry in October 2014 to coordinate with States and Union Territories for further facilitation of their efforts to promote their exports and tourism and attract more overseas investments and expertise.
• The functions of the States Division are to coordinate facilitation of efforts of states in promoting their exports, tourism and attract more overseas investment and expertise.
• The objective of the Division is to coordinate facilitation of efforts in these areas between our Mission/Post(s) and State/Union Territories Governments as well as foreign diplomatic and trade missions in India.
• It aims to assist States and Union Territories by sharing with them, where required, this Ministry's experience and expertise through training and capacity building in areas relating to external linkages relating to trade, investment, cultural and other such areas.

ANSWER: 1, 3

Explanation:

• By definition, indirect taxes are those taxes that are levied on goods or services. They differ from direct taxes because they are not levied on a person who pays them directly to the government; they are instead levied on products and are collected by an intermediary, the person selling the product.
• These taxes are levied by adding them to the price of the service or product which tends to push the cost of the product up.
• Some types of indirect taxes in India are – Sales tax, Service Tax, Value Added Tax, Custom Duty and Octroi, Excise Duty, GST (proposed), Entertainment Tax, Securities Transaction Tax (STT), Stamp Duty, etc.

ANSWER: All of the above

Explanation:

• Direct taxes are those which are paid directly to the government by the taxpayer. These taxes are not paid deducted and paid on behalf of the taxpayer. It’s imposed on the people and organizations directly by the government. This tax liability has to be paid by the taxpayer in question and cannot be transferred to any other entity for payment.
• Direct taxes in India - Income tax, Wealth tax, Corporation tax, Capital Gains Tax, Expenditure Tax, Interest tax, etc.

ANSWER: Inability of a person to pay the debts

Explanation:

• Insolvency is the state of being unable to pay the money owed, by a person or company, on time; those in a state of insolvency are said to be insolvent. There are two forms: cash-flow insolvency and balance-sheet insolvency.
• Cash-flow insolvency is when a person or company has enough assets to pay what is owed, but does not have the appropriate form of payment.
• Balance-sheet insolvency is when a person or company does not have enough assets to pay all of their debts.

ANSWER: Man unmanned rail level crossings

Explanation:

• As a precursor to removing all the unmanned level crossings (UMLCs) across the country by 2020, a beginning is being made by deploying a ‘gate mitras’ - literally friend at the gate- at the crossings.
• This is to avoid accidents at unmanned level crossings. The railways would provide them with a uniform, along with a high-power light, a flag and a whistle to enable them warn oncoming road traffic of an approaching train.

ANSWER: 1, 2

Explanation:

• Eco Circuit has been identified as one of the thirteen thematic circuits for development under the Swadesh Darshan Scheme.
• Few sanctioned project are - Tehri Lake & Surroundings as New Destination, Uttarakhand; Integrated Development of Eco Tourism Circuit in Mahaboobnagar district, Telangana; Development of Pathanamthitta – Gavi – Vagamon – Thekkady as Eco Tourism Circuit in Idduki and Pathanamthitta Districts in Kerala; Integrated Development of New Eco-Tourism at Thenzawl, Reike& South Zote, Mizoram

ANSWER: All of the above

Explanation:

• The first pillar of institutional infrastructure is a class of regulated persons, the ‘Insolvency Professionals’. They would play a key role in the efficient working of the bankruptcy process. They would be regulated by ‘Insolvency Professional Agencies’.
• The second pillar of institutional infrastructure is a new industry of `Information Utilities'. These would store facts about lenders and terms of lending in electronic databases. This would eliminate delays and disputes about facts when default does take place.
• The third pillar of institutional infrastructure is in adjudication. The NCLT will be the forum where firm insolvency will be heard and DRTs will be the forum where individual insolvencies will be heard. These institutions, along with their Appellate bodies, viz., NCLAT and DRATs will be adequately strengthened so as to achieve world class functioning of the bankruptcy process.
• The fourth pillar of institutional infrastructure is a regulator viz., ‘The Insolvency and Bankruptcy Board of India’. This body will have regulatory over-sight over the Insolvency Professional, Insolvency Professional agencies and information utilities.

ANSWER: Both 1 and 2

Explanation:
The salient features of the law are as follows:

• Clear, coherent and speedy process for early identification of financial distress and resolution of companies and limited liability entities if the underlying business is found to be viable.
• Two distinct processes for resolution of individuals, namely- “Fresh Start” and “Insolvency Resolution”.
• Debt Recovery Tribunal and National Company Law Tribunal to act as Adjudicating Authority and deal with the cases related to insolvency, liquidation and bankruptcy process in respect of individuals and unlimited partnership firms and in respect of companies and limited liabilities entities respectively.

The essential idea of the new law is that when a firm defaults on its debt, control shifts from the shareholders / promoters to a Committee of Creditors, who have 180 days in which to evaluate proposals from various players about resuscitating the company or taking it into liquidation. When decisions are taken in a time-bound manner, there is a greater chance that the firm can be saved as a going concern, and the productive resources of the economy (the labour and the capital) can be put to the best use. This is in complete departure with the experience under the Sick Industrial Companies (Special Provisions) Act, 1985 (SICA regime) where there were delays leading to destruction of the value of the firm.

ANSWER: Only 2

Explanation:
The salient features of the law are as follows:

• Establishment of an Insolvency and Bankruptcy Board of India to exercise regulatory oversight over insolvency professionals, insolvency professional agencies and information utilities.
• Insolvency professionals would handle the commercial aspects of insolvency resolution process. Insolvency professional agencies will develop professional standards, code of ethics and be first level regulator for insolvency professionals members leading to development of a competitive industry for such professionals.
• Information utilities would collect, collate, authenticate and disseminate financial information to be used in insolvency, liquidation and bankruptcy proceedings.
• Enabling provisions to deal with cross border insolvency.