V.

M PATEL INSTITUTE OF MANAGEMENT

GANPAT UNIVERSITY

Introduction of Budget:
DEFINITION: Annual financial statement of the estimated receipts and expenditure of the Government of India in respect of a financial year. Budget in India: The Union Budget of India is the annual budget of the Republic of India, presented each year on the last working day of February by the Finance Minister of India in Parliament. The budget has to be passed by the House before it can come into effect on April 1, the start of India's financial year. The first Union budget of independent India was presented by R. K. Shanmukham Chetty on November 26, 1947.
V.M PATEL INSTITUTE OF MANAGEMENT GANPAT UNIVERSITY

Terminologies:
Government Revenues & Spending:
Revenue receipt/expenditure:
Such as taxes and expenditure, like salaries subsidies and interest payment that in general do not entail sale or creation of assets, fall under the revenue account.

Capital receipt/expenditure:
Shows all receipts from liquidating(E.g. selling shares in a public sector company)assets and spending to create assets(E.g. lending to receive interest).

Revenue/Capital budget:
The government as to prepare a revenue budget (detailing revenue receipts & revenue expenditure) and a capital budget (capital receipts and capital expenditure).

V.M PATEL INSTITUTE OF MANAGEMENT

GANPAT UNIVERSITY

Continued.. Fiscal Deficit :

The sum found on calculating the difference of Revenue Receipts and Total Expenditure. When a government's total expenditures exceed the revenue that it generates (excluding money from borrowings). Deficit differs from debt, which is an accumulation of yearly deficits.

Current Account Deficit:

It is when a countrys government, business and individuals imports more goods, services and capital than it exports. Or, An imbalance in a nation's balance of payments current account in which payments received by the country for selling domestic exports are less than payments made by the country for purchasing imports.

Inflation:
The rate at which the general level of prices for goods and services is rising, and, subsequently, purchasing power is falling. Central banks attempt to stop severe inflation, along with severe deflation, in an attempt to keep the excessive growth of prices to a minimum.

A. REVENUES:
Gross tax revenue :
The total tax received by the government from which it has to pay the states their share as mandated by the relevant finance commission. the balance is available to the union government.

Non-tax revenue :
The main receipts under this head are interest on loans given by the government, and dividends and profits received from PSUs . The government also earns from varies services, including public services, it provides of this, only the railways is a separate department, though all its received and expenditure are routed thorough the consolidated fund of India.

Capital receipts :
These include recoveries of loans & advances.

Miscellaneous capital receipts :

These are primarily receipts from PSUs disinvestment.
V.M PATEL INSTITUTE OF MANAGEMENT GANPAT UNIVERSITY

B. Expenditure:
Gross budgetary support :
The five year plans are split into five annual plans. The funding of the plan is split almost evenly between government support (from the budget) and internal and extra budgetary resource of state-owned enterprises. The government support to the plan, which includes state plan, is called gross budgetary supports.

Plan expenditure :
This is essentially the budget support to the annual plans. This typically considered developments spending ( on health, education, infrastructure and social goals). Like all budget here it is also split into revenue and capital components

Non-plan expenditure:
This is in the nature of consumption expenditure broadly corresponding to revenue

Expenditure:
Interest payment, subsidies, salaries, defense & pension. Its capital component is small, the largest chunk being defense.
V.M PATEL INSTITUTE OF MANAGEMENT GANPAT UNIVERSITY

Balance Sheet:

ANNUAL FINANCIAL STATEMENT:

This document details the Govts receipt and expenditure for the financial year. This 16page document is actually the annual budget, as stated in the constitution. It is divided into three part: consolidated fund, contingency fund and public account-each of which provides a statement of receipts and expenditure. Expenditure from the consolidated fund and contingency fund requires the nod of parliament.

CONSOLIDATED FUND:
This fund is the governments lifeline. All the revenues, money borrowed and receipts from loans it has given flow into this account. All government expenditure is made from this fund.

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GANPAT UNIVERSITY

Continued.. FINANCE BILL:

For most of us, this is the all important budget document. all tax measures are included in it. The memorandum, another document, explains the provisions of the bill in simple terms.

CONTINGENCY FUND:
As the name suggests, any urgent or unforeseen expenditure is met from this 500 Crore fund, which is at the disposal of the president. The amount withdrawn is returned from the consolidated fund.

PUBLIC ACCOUNT:
This is an account where the government acts more like a banker, as this is a collection of money belonging to other such as public provident fund.
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The Social Agenda

SWAVALAMBAN:
This is a co-contributory scheme to promote voluntary retirement saving towards pensions. The government makes a contribution to NPS account of unorganized sector workers.

AADHAAR :
It is a 12 digit individual identification number that services as a proof of identity and address, anywhere in India.

BHARAT NIRMAN:
BHARAT NIRMAN IS UPAs ambitious plan to build infrastructure in rural India i.e. irrigation, road , water supply, housing, rural electrification and rural telecom connectivity.
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Continued.. FOOD SECURITY ACT:

The government plans to provide highly subsidized food grain to majority of the population, it is expected to be rolled out in the next fiscal.

SWABHIMAN :
This is a government campaign to extend banking facilities through business correspondents to habitation having population in excess of 2000.

DIRECT CASH TRANSFER OF BENEFITS :

It is a poverty alleviation initiative under which welfare benefits are given directly to the poor in cash rather than in the form of subsidies.

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GANPAT UNIVERSITY

Some More:

DIRECT TAXES CODE(DTC) BILL : This is a comprehensive revamp of the income tax law that has been the works for many Years. ABATEMENT : This is like a discount with reference to taxes. Abatement is given when the tax is not levied on full amount but on a portion of the transaction. RESOURES TRANSFERRED TO THE STATES : The center gives funds to states in two ways: a share n taxes and budget support for their plans. These are largely in the nature of grants, and include those given to states for managing centrally-sponsored schemes. DISINVESTMENT : The process of sale of government shares in state-owned entities QULIFIED FOREGN INVESTORS: Foreign individuals, groups or associations that are eligible to invest directly in India.
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Process how Union budget is formulated:

Budget Formulation

Budget Enactment

Budget Execution

Legislative review of Budget Implement

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Impact on Sectors:
1. Health & Education:

The ministry of health& family welfare allocation in `.37330 cr. Medical allocated in education, provide `.4727 cr. in training & research. The Health care of elderly is being in the Rashtriya Madhyamik Abhiyan (RMSA). To provide `.3983 cr. an increase of 25.6% Rural Education in 2012-13. The Human Resources Development allocation `.65867 cr.. to increase in 17% for 2011-12 in Rural Education. At last Backward Classes & minorities , girl children in 2013-14 of allocated `.5284.
V.M PATEL INSTITUTE OF MANAGEMENT GANPAT UNIVERSITY

2. Agriculture: The agriculture rate is the 11th plan was 3.6% as well as on another rate is lower the 2.5% & 2.4% respectively. Agriculture will exports from April to Dec,2012 have crossed `.138403 cr. Agriculture provide `.3415. (1)Agriculture Credit: Agriculture target is of `.575000crore fixed for 2012/2013. F.M. proposed to increased the target to `.700000 cr. 2013. (2)Green Revolution: F.M. propose to continue to support the eastern Indian States with an allocation of `.1000 Cr. in 2013-14. F.M. propose to increase the allocation for the integrated watershed programmers from `.3050 cr. in 2012-13(BE)to `.5387 cr.
V.M PATEL INSTITUTE OF MANAGEMENT GANPAT UNIVERSITY

Continued..
(3)Farmer Producer Organization Agriculture Business Corporation with `.100 cr. divided in people. FPO to working capital from Financial institutes to proposed on `50 cr. (4)National Livestock Mission The NLM will be lunched in 2013-2014 to investment `.307 cr. for the mission. A mission for increasing the availability of feed and fader. (5)Food Security Agriculture is human right to education to health care. The parliament was about the condition for the `.10000 cr. for provision food subsidy And incremental cost the food security.
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3. Investment, Infrastructure And Industry: The two infrastructure were tax free bond `.30000 cr. in 2011-12 and expected to `.25000 Cr. in 2012-13. (1)Road construction Road construction first six month of investment in 2013-14 awarded in the 3000 km, of road project in Gujarat, Maharashtra, Madhya Pradesh, Rajasthan & Uttar Pradesh.

(2)New Investment A Company investing `.100crore mere in plant & Machinery during the period of 1/4/2013 to 31/3/2015 will be the entitled to deduct an investment allocation of 15% of the investment.

Continued..

(3)Saving The Gross domestic saving fell by 6% points in 2011-12 and higher 36.8% for 2007-08. Private sector less then the corporate, household & corporate, to saving. Investment service for poor & middle classes saving the RBI.

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GANPAT UNIVERSITY

4. FINANCIAL SECTOR (1)BANKING Corporation/corporative bank on CBS (CORE BANKING SOLUTION) and E-Payment system by 31/12/2013. Also, public sector banks have branches will have an ATM in place by 31/3/2014. RBI consultation with RBI allocated in `.2000 cr. to the fund in 2013-14. (2)INSURANCE Insurance companies will be empowered to open branches in Tier Cities & below with out prior approval of IRDA. Bank will be permitted to act as insurance brokers so that the entire network of bank Branches will be utilized to increase products. The banking and insurance for financial sector we can evolve a comprehensive social security Package.
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5. WOMEN:

Women, children & the minorities as possible to allocate `.41561 cr. to the scheduled caste sub plan & ` 24598 cr. to the tribal sub plan.
`1,000 crore allocation towards setting up of Indias first Womens public sector Bank. A fund - Nirbhaya Fund - to be setup with Government contribution of ` 1,000 crore. Women & Widows, must be able to live with self esteem and dignity. The gender budget has `.97134 Cr. And the child budget has `.77236 Cr. In 2013-14. The welfare and progress of the scheduled castes and the scheduled tribes for whom the budget has sub plans. Additional sum of `.200 Cr. To that ministry to begin work in this regards.
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Direct taxes:
F.M. propose to provide a tax credit of 2000 to every person who has a total income upto `.5 lakh. 1.8 crore tax payers are expected to benefits to the value of rs.3600 crore. There are 42,800 persons who admitted to a taxable income Exceeding `1 crore per year. F.M. propose to impose a surcharge of 10 percent on them this will apply to individuals, HUFs, firms and entities with similar tax status. F.M. also propose to increase the surcharge from 5 percent to 10 percent on domestic companies Whose taxable income exceeds `.10 crore per year. In the case of foreign companies, who pay the higher rate of corporate tax, the surcharge will increase from 2 percent to 5 percent. The additional surcharges will be in force for only one year, that is financial year 2013-14 The education cess for all tax payers shall continue at 3 percent. The tax proposals on the direct taxes side are estimated to yield `.13,300 crore.
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INDIRECT TAXES

There is no change in the peak rate of basic customs duty of 10 percent for non agricultural products, also no change in the normal rate of excise duty of 12 % rate of service tax of 12 %. F.M. propose to reduce the duty on specified manufacture of leather and leather goods, including footwear, from 7.5 percent to 5 percent.
F.M. propose to totally exempt handmade carpets and textile floor covering of coir or jute from excise duty. The tax proposals on the Indirect taxes side are estimated to yield `.4,700 crore.

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GANPAT UNIVERSITY

Impact on different Persons:

TAXPAYERS:
Rebate of `.2000 for those with income up to `.5 lac, resulting in tax saving of `.2,060. Deduction up `.1 lac for interest on first home loans up to `.25 lac for property worth up to `.40 lac. Unused part can be carried forward to next year. Surcharge of 10% on those with taxable incomes exceeding Rs.1 core, making effective marginal rate 33.99%. Transfer of immovable property at lower than stamp valuation to be taxed as gift in hands of recipient. TDS at 1% on transfer of immovable property sold for over `.50 lac except where it is agricultural land.
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Investors:

RGESS to be liberalized: tax deduction allowed for 3 yrs instead of 1 yr, qualifying individuals income limit raised from `.10 lakh to `.12 lakh. Securities Transaction tax reduced Commodity Transaction Tax (CTT) lower at 0.01% of trade introduced on non-agricultural commodities. Tax on income distributed by non-equity oriented Mutual Funds units hiked from 12.5% to 25%

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GANPAT UNIVERSITY

CONSUMERS:

Customs duty-free allowance for jewelry for Indian passengers transferring residence up from ` 10,000 to ` 50,000 for males and from ` 20,000 to ` 1 lakh for females. Excise duty on mobiles costing over ` 2,000 increased from 1% to 6%. Service tax on construction of new residential complexes of ` 1 crore or more or with carpet area of 2,000 square feet or more up from 3.09% to 3.71%. Duty on imported automobiles exceeding ` 4,000 (capacity over 3 liters for petrol and 2.5 liters for diesel) hikes of over 800cc up from 60% to 75%, on SUVs from 27% to 30%

Excise duty on cigarettes increased to 18%.

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GANPAT UNIVERSITY

Businessmen:

Additional deduction of 15% for investments of over ` 100cr on new assets over next 2 years for manufacturing companies.
Company need not pay dividend distribution tax on income from foreign subsidiary. Surcharge on domestic firms with income above ` 10cr raised from 5% to 10%; effective rate 33.99%; for foreign firm it is up from 2% to 5% effective rate 43.26%.
V.M PATEL INSTITUTE OF MANAGEMENT GANPAT UNIVERSITY

Impact on different Industries:

Air Line Industry:
Passenger traffic has been hit by the economic
slow-down and higher airfares. Consequently, domestic traffic fell 6% year-on-year and international traffic grew only 2.8% during April-November 2012

BUDGET IMPACT There have been no major proposals for the airline services industry in this Budget. However in order to give a fillip to the Indian aircraft manufacture, repair and overhaul (MRO) industry, certain concessions have been for aircraft maintenance to help Indian carriers lower their aircraft maintenance costs and improve the viability of MRO units in India.
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Banking & Finance Industry:

Aggregate bank credit is expected to grow 17-18% year-on-year in 2013-14, driven by improvement in agriculture growth, consumption-led recovery in the economy and preelection welfare spending.

BUDGET IMPACT The Budget proposed to provide ` 14,000 core as capital support to all public sector banks in 2013-14.The government also intends to help public sector bank comply with Basel-III regulation. For 2013-14,bank have been directed to lend ` 7,00,000 core to the agriculture sector, 21.7% higher than the 2013-14
V.M PATEL INSTITUTE OF MANAGEMENT GANPAT UNIVERSITY

Cement Industry:
Recovery in construction activity and infrastructure spending by the government could help cement demand grow 7% year-on-year in 2013-14 against a muted 5% in 2012-13. Average Pan-India cement prices are expected To rise by approximately 15% year-on-year in 2012-13, mainly driven by higher prices in the eastern parts of the country. In 2013-14, prices are estimated to grow by a moderate 4-5%.

BUDGET IMPACT The Budget has proposed several schemes to boost infrastructure and housing segments. This is expected to aid demand for cement. However, this upside is likely to be offset by the increase in freight costs for cement companies, due to the proposed hike in railway freight. The railway Budget 2013-14 has proposed fuel adjustment component linked revision for freight rates.
V.M PATEL INSTITUTE OF MANAGEMENT GANPAT UNIVERSITY

Fertilizers:
Domestic fertilizer demand is estimated to fall 12% year-on-year to 59.9 million tone in 2012-13, owing to a sharp decline in complex fertilizer demand in southern and western parts of the country. In 2013-14, overall domestic fertilizer demand is expected to grow 8% year-on-year assuming a normal monsoon, stable urea prices and fall in retail prices of complex fertilizers.

BUDGET IMPACT
In 2013-14 fertilizer subsidy is expected to study constant last years level of ` 65,900 core. Subsidy on complex fertilizer is budgeted to decline by ` 1,000 core even though demand is likely to improve as nutrient-based subsidy rates are expected to be reduced due to softening in international prices. The increase in budgeted subsidy of ` 1,000 core on indigenous urea for 2013-14 implies that the government is not expected to like retail urea prices during the year.
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Ports & Airports:

A total of ` 1,30,000 core is likely to be pumped into the development of ports and airports-77% for ports and 33% for airports be- teen 2012-13 and 2016-17. Public-Private Partnership (PPP) projects are expected to account for more than 75% of these investments. In 201314, traffic at airports and ports is expected to grow at a subdued 3-5% and 4-6%, respectively.

BUDGET IMPACT The proposals to develop a major port each in sagar, West Bengal and Andhra Pradesh will add 100 million tone of capacity. Further, a new outer harbor in the Chidambaranar port in Tamil Nadu through the PPP will add another 42 million tone. Both hose measures will lead to an increase in port capacities in a phased manner over the next five to six year.
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Infrastructure & Roads:

The healthy growth in awarding of national highways projects slowed down significantly in 2012-13. Several BOT (build-operate-transfer) projects have not been able to attract private participation, given the highly leveraged financial profile of developers and concerns over funding. Since bidder interest for BOT projects remains lackluster, NHAI (National Highways Authority of Indian) plans to awaked a higher proportion of projects on the EPC model.

BUDGET IMPACT
Issue of tax-free infrastructure bonds raised by the government agencies (including NHAI and Hudco) for infrastructure has been allowed once again in 2013-14, up to a total limit of ` 50,000 core. This is expected to provide additional funds to the NHAI for executing national highway projects.
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FMCG Industry:
Optional spending has taken a hit due to the inflationary environment, resulting in moderation of volume growth. Large FMCG players are less affected, though. Medium-term prospects for the sector remain healthy, lad by rising per capita consumption and continued focus on rural pockets and rise in the standard of living would help product penetration and consumption. Even a small rise in disposable incomes of India's 350 million middle income consumers will aid growth.

BUDGET IMPACT
The overall impact of the budget is expected to be neutral. There has been no increase in the normal rate of excise duty. Allocation of resources towards Mahatma Gandhi Rural Employment Guarantee Scheme, a key driver of demand , has remained unchanged too.
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Automobile Industry:
Car and utility vehicle sales are expected to moderate to 8-10% in 2013-14. Demand for cars has been hit by rising petrol prices, high interest rates and income uncertainty. However, model launches and preference for diesel vehicles have propelled UV sales.

Lower rural incomes have affected two-wheeler sales, which are estimated to grow 3-5%. Medium and heavy commercial vehicle sales have been hit by lower freight availability, and are estimated to plummet by over 25%.

BUDGET IMPACT
Demand for non-taxi sports utility vehicles with engine capacity above 1500cc will be marginally affected by the increases in excise duty to 30%. Sales of such vehicles, which account for 10-12% of total passenger vehicle sales, grew 16% in April 2012-December 2013. Demand for high-end imported luxury cars will be affected as well, as basic customs duty has been raised to 100% from 75%. Similarly, motorcycle sales will be impacted by a rise in basic customs duty to 75% from 60%.
V.M PATEL INSTITUTE OF MANAGEMENT GANPAT UNIVERSITY

Power Industry:
Lack of fuel availability has led to lower plant load factors and delayed commissioning of projects. Implementation of coal price pooling is seen increasing coal supply.

BUDGET IMPACT
Extension of the sunset clause to avail of the 10-year tax holiday by a year would benefit 18-20GW of capacities expected to be commissioned in 2013-14. Funding will improve with the issuance of tax-free bonds of ` 50,000 core and credit enhancement through IIFCL. The proposal to adopt a PPP framework for coal production will improve domestic coal supply in the long term.
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Oil & Gas Industry:

Crude oil prices averaged $111 per barrel between April 2012 and February 2013, mainly due to sanctions imposed on Iran by the US and EU and geo-political tensions in Middle-East and North Africa region. Under-recoveries rose 28.4% year-on-year to ` 1,24,900 core in April-December 2012.

BUDGET IMPACT
Change in exploration policy and review of the current natural gas pricing policy to be positive. The proposed change in the exploration policy, to revenue- sharing from profit-sharing for exploration and development contracts, is marginally positive for upstream companies.
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Textile Industry:
Lower exports due to a slump in global off take and sluggish domestic market hit textile demand in 2012-13. Robust yarn exports benefitted spinners, though. Demand is expected to rise moderately in 2013-14, aided by improved global and domestic economy.

BUDGET IPMACT
Removal of the 3.6% excise duty on readymade garments and extension of the Technology Up gradation funds scheme (TUFS) is positive for the sector. Garment manufacturers are expected to earn higher margins, despite partially passing on the benefit to consumers. TUFS has been expected for the 12th five-year plan, with an investment target of ` 1,51,000 core compared with ` 1,51,600 core under the 11th five-year plan. Budgetary allocation under TUFS has been increased to ` 2,400 core in 2013-14 from ` 2,200 core in 2012-13.
V.M PATEL INSTITUTE OF MANAGEMENT GANPAT UNIVERSITY

Steel Industry:
Hit by the slowdown in automobiles, construction and infrastructure industries, domestic steel demand is expected to grow at a subdued rate of 3-5% in 2012-13. Weak demand and lower realizations, coupled with an acute shortage in and high prices of iron ore in 2012-13, are expected to keep margins under pressure.

BUDGET IPMACT
The export duty on certain galvanized steel sheets has been reduced to nil from 7.5%, with full exemption from export duty being provided, with effect from March 1, 2011, retrospectively. This move will benefit galvanized steel exporters, such as Tata steel, JSW steel and Bhushan steel, among others.
V.M PATEL INSTITUTE OF MANAGEMENT GANPAT UNIVERSITY

Real Estate Sector:

in Demand for residential real estate was downcast in 2012-13 due to weak consumer sentiment and rising interest rates. Most realty firms were unable to sell their inventories. Consequently, project launches were slow.

BUDGET IMPACT
First-time home buyers availing of an up to ` 25 lakh loan in 2013-14 can get an additional interest deduction of ` 1 lakh in the fist year, over and above the existing ` 1.5 lakh benefit. This is likely to boost new home sales. Allocation towards the Rural Housing Fund has been increased 50% to ` 6,000 core for 2013-14, An Urban Housing Fund of ` 2,000 core in 2013-14 has also been proposed.
V.M PATEL INSTITUTE OF MANAGEMENT GANPAT UNIVERSITY

Retail Industry:
Organized retail revenues are expected to grow at a subdued 8-10% in 2012-13 owing to a slowdown in consumer spending. During April-December 2012, same store sales of value retail grew at a slower pace visa vis lifestyle retail, which increased 9%. In spite of a low revenue growth, aggregate operating margins of large retailers are estimated to remain stable at 8% in 2012-13 on a year-on-year basis. Organized retail revenues are expected to improve to 14-15% in 2013-14 following an expected revival in consumer sentiment. BUDGET IMPACT The overall impact is positive. In 2012-13, the excise duty levied on apparels was 3.3%. Margins of retail companies with a larger share of private labels could benefit more.
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What will be Cheaper:

PRODUCTS/ SERVICES Precious and semi-precious stones Baggage relief For jewellery CHANGE Reduced from 10% to 2% PRICE/DUTY IMPACT Decreased

Male passengers: increased from `.10,000 to `.50,000 Female passengers: increased from ` 20,000 to `1,00,000

Decreased

Readymade garments

Excise duty exemption scheme restored, Subject to certain conditions

Decreased

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GANPAT UNIVERSITY

What will be Costlier:

PRODUCTS/ SERVICES Set-top box Luxury vehicles Cars Motor cycles (exceeding 800 cc) Yachts Cigarettes Cigars,etc. CHANGE PRICE/ DUTY IMPACT Increased Custom duty up from 5% to 10% Import duty up from 75% to 100% Import duty up from 60% to 75% Import duty up from 10% to 25% Specific excise duty Increased by about 18 % (similar changes in cheroots) Excise up from ` 30/sq.m to ` 60/sq.m Excise duty up from 1% to 6% Excise up from 27% to 30%

Increased

Increased

Marble slabs And tiles Mobile phone(of value exceeding ` 2000) Sports utility Vehicles(SUVs of More than 1500 cc Not being used as taxis) All AC restaurants, Including those not having liquor licences Vehicle parking by general public Premium residential apartments(with carpet area of over 2,000 sq.ft And value of `1 crore or more)

Increased Increased Increased

Effective service tax@4.944% made applicable Increased Service tax@12.36% Made applicable Effective service tax Rate increased from 3.09% to 3.71%

Increased
Increased

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GANPAT UNIVERSITY

Income & Expenditure

B.E: Budget estimates

R.E: Revised estimates

Opinion of Various Industry Leaders

Kishore Biyani (Future Group) The FM has taken various small, yet significant measure, it is great to see the focus coming back on clothing and food , the two sectors that have been the backbone of the Indian economy.

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GANPAT UNIVERSITY

Kumar Mangalam Birla: In extremely difficult year where the FM had literally space to maneuver, he has presented a responsible even though conservative budget. There is promise of reducing the fiscal deficit, and the numbers while challenging seem credible

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GANPAT UNIVERSITY

N. Chandra sekharan: T.C.S (MD & CEO) The focus on using technology to drive inclusion program have been continued. The FM also give the fillip to tech. based innovation by allowing funding for tech. incubators locate within academic institution qualifying as CSR expenditure. This will increase the engagement of the corporate sector with the start ups.

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GANPAT UNIVERSITY