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In the context of organizational challenges, 'brain drain' specifically refers to:
Brain drain is the loss of intellectual property that results when competitors lure away key employees. High-tech firms are particularly vulnerable as key employees leave to start their own businesses or join competitors, negatively affecting innovation and causing delays in new product introductions.
A company reported a net profit of Rs. 83,600 for the year ended 31 December 2025. It was later discovered that Rs. 18,000 paid for a motor van had been wrongly debited to motor expenses. The company depreciates motor vans at 25% per year (straight line), with a full year's charge in the year of acquisition. What is the corrected net profit?
Step 1: The Rs. 18,000 was wrongly expensed. Reversing this increases profit: $83{,}600 + 18{,}000 = 1{,}01{,}600$.
Step 2: Now charge the correct depreciation on the van: $18{,}000 \times 25\% = Rs.\ 4{,}500$.
Step 3: Subtract depreciation: $1{,}01{,}600 - 4{,}500 = \mathbf{Rs.\ 97{,}100}$
The net effect is: profit increases by Rs. 18,000 (expense reversed) but decreases by Rs. 4,500 (depreciation charged) — a net increase of Rs. 13,500 over the originally reported profit.
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