Shri Vile Parle Kelavani Mandal’s
Narsee Monjee College of Commerce and Economics
(Autonomous)
A.Y 2023-24
VEDIC ACCOUNTING
FYBCOM: SEMESTER
Title of the Project/Assignment
Investment in Gold and Gems • Units used; Terms used •
Types of metals, • Types of revenue with respect to, mining
operations and manufacture & Hundis
Submitted by:
Sr. No Full Names of SAP ID Division Roll Contact Content
the Learners Number No Number Contributed
(only points
or page no)
1. Tashvi Jain 45611230745 F089 8000935431 Pg. 7-8
2. Kanishka Bhand 45611230744 F090 9009477137 Pg 6
3. Dhruv Jain 45611230747 F091 8881183775 Pg 3-4
4. Palak Godhwani 45611230741 F092 8955638135 Pg 1-2 , 9
5. Aanya Rathi 45611230750 F093 9929738800 Pg 5
Teacher In-Charge: Miss Dimple Batra
TABLE OF CONTENTS :
Introduction – Palak Godhwani { page 1-2 }
Investments made in gold and gemstones - Dhruv Jain
{ page 3-4 }
Units and Terms used – Aanya Rathi { page 5}
Types of metals – Kanishka Bhand { page 6 }
Types of revenue with respect to, mining operations and
manufacture & Hundis – Tashvi Jain { page 7-8 }
Conclusion – Palak Godhwani { page 9 }
INTRODUCTION :
During the Vedic period in India, which is believed to have spanned from
around 1500 BCE to 500 BCE, there is limited historical documentation
regarding specific investment practices in gold, gems, and metals. However, we
can provide some general information about these topics during that era:
1. Units and Terms: The Vedic period didn't have a standardized monetary
system as we do today. Instead, transactions were conducted through the
exchange of goods and services. Units and terms for measuring wealth or
currency might have included cattle, grains, and other commodities.
2. Types of Metals: Gold and copper were among the primary metals used
during this time. Gold was considered a symbol of purity and prosperity
and was likely used for ornamental and ceremonial purposes. Copper was
commonly used for making tools and utensils.
3. Revenue from Mining Operations: There were references to mining
operations, especially in the later Vedic texts. Precious metals and gems
were extracted from riverbeds and mines. These resources could have
been a source of wealth, but detailed records are scarce.
4. Manufacture: The Vedic period saw skilled craftsmanship in metallurgy.
Artisans crafted intricate jewellery and objects from gold and copper.
These items were not only utilitarian but also held religious and ritualistic
significance.
5. Hundis: The term "Hundi" in the context of financial instruments as we
know it today did not exist in the Vedic period. However, the concept of
informal credit and lending may have existed through community-based
arrangements.
Page 1
It's important to note that information about economic and investment practices
during the Vedic period is not as well-documented as in more recent historical
periods. Much of our understanding of this time is derived from ancient texts
and archaeological discoveries, which can provide limited insights into these
specific aspects.
Primary metals used in the vedic period
Jewellery and ornaments of
the vedic period
Page 2
1.
Investments made in gold and gemstones
During the Vedic period in India (approximately 1500 BCE to 500 BCE),
investment in gold and gemstones was characterized by its cultural, religious,
and utilitarian significance. While we don't have detailed financial records or
investment strategies as we do today, we can understand how these precious
materials were valued and used based on the available historical and literary
sources:
1. Cultural and Religious Significance:
Rituals and Ceremonies: Gold and gemstones had a profound
impact on religious and ceremonial practices. They were used to
create intricate jewellery, idols, and temple decorations. These
items were considered sacred and were an integral part of Vedic
rituals and offerings.
Deities and Offerings: Many deities in Vedic Hinduism were
adorned with jewellery and ornaments made from gold and
gemstones. Devotees offered these valuable items to the deities in
temples as acts of devotion.
2. Utilitarian Use:
Jewellery and Adornments: Gold and gemstones were used for
crafting elaborate jewellery, including necklaces, earrings,
bracelets, and crowns. These were worn by both men and women,
and the craftsmanship was highly regarded.
Currency and Trade: While the Vedic period didn't have a
standardized currency system, gold and precious gems were used
in Page 3
in trade. They held intrinsic value and were often used as a medium of
exchange in barter transactions.
Medicinal and Ayurvedic Uses: Gemstones were believed to have
medicinal properties in Ayurveda, the traditional system of
medicine in India. They were used in making medicines and
remedies.
3. Wealth and Status: Owning gold and gemstones was a symbol of wealth
and social status. Kings, nobles, and wealthy merchants displayed their
affluence by adorning themselves with these precious materials.
4. Mining and Extraction:
Mining Operations: The Vedic period had references to mining
operations, especially for gold and precious gemstones. These
resources were extracted from riverbeds, mines, and alluvial
deposits. The mining of these materials may have contributed to
regional economies.
5. Investment and Heirlooms: Families often invested in gold and
gemstones as a form of wealth preservation. These items were passed
down from generation to generation and held as heirlooms.
6. Trade Relations: The Vedic civilization had trade relations with
neighbouring regions and civilizations. Gold and gemstones were among
the items traded with other societies, including Mesopotamia.
7. Absence of Modern Financial Instruments: During this period, there
were no modern financial instruments or institutions for investment as we
understand them today. The economic system was primarily agrarian and
based on barter and community-based exchanges.
Page 4
2.
Units and Terms used
In the Vedic period, various units and terms were used for measuring and
describing gold and gems:
1. *Suvarna*: Suvarna is a term for gold in Sanskrit. It was used to refer to both
the metal itself and the coins made from gold.
2. *Nishka*: Nishka was a unit of measurement for gold, and it was also used as
a gold coin. The weight of a Nishka could vary over time and region.
3. *Karsha*: Karsha was another unit of weight for gold. It's equivalent to a
specific weight of gold, and transactions often took place in terms of Karshas.
4. *Mashaka*: Mashaka was a unit of weight used for measuring gold and other
precious metals in the Vedic period.
5. *Ratna*: The term "Ratna" was used for gems and precious stones. It
encompassed a variety of gemstones, each with its own properties and
significance.
6. *Harita*: Harita refers to emeralds and was considered one of the precious
gemstones in ancient India.
7. *Mani*: Mani was a generic term for gemstones, often associated with their
use in jewellery and ornamentation.
It's important to note that the specific units and terms used could vary over time
and across different regions of ancient India. The Vedic period spanned a long
time and included different cultural and geographical regions, so there might
have been variations in terminology and standards.
Page 5
3.
Types of Metals
Man and metals have an age-old relationship. Different periods of early human
Civilization have been named after metals. The attributes of gold influenced the
mind and heart of Indians so much so that they conferred upon the supreme
spirit the designation of Himnyagarbha .
The Rigveda has widely referred to Hiranya , which is the oldest Sanskrit word
for gold. It has also mentioned products made from gold, such as water vessel,
necklace and visor. Native gold is invariably by no means a pure metal. It
contains up to 20 percent silver, copper, iron, lead, bismuth, platinum group
metals and other metals, as impurities. Thus, native gold would have different
colours depending upon the nature and amount of impurities present.It is logical
to assume that the different colours of native gold were a major driving force for
the development of gold refining process. Although, evidence of gold refining is
available in Vedic texts in an allegory allegory form, form, it was the
Arthashastra of Kautilya, which presented it in detail.
Another important metal referred to in Rigveda is ayas. It has a shining
appearance. Ayashas different meanings in different periods. In early Vedic
period, it means either copper or copper alloys. One of the important products
made from ayas, as stated in the Rigveda, was the weapon of Indra called vajra.
It was made by the process of sinchan (casting). In the later Vedic period ayas
or karshnayas means iron. In the Atharvaveda, rajata (silver), trapu (tin) and
sisa(lead) have been mentioned.The above hymns are some of the earliest
indirect references to the alluvial placer gold deposits in India. The river Sindhu
was an important source of gold in ancient times. It is interesting to note the
references for the availability of alluvial placer gold in the river Sindhu are also
reported in modern times. Page 6
4.
Types of revenue with respect to, mining operations and
manufacture & Hundis
. *Mining Operations Revenue Types*:
a. *Mineral Sales Revenue*: This is the primary revenue source for mining
operations. It includes the income generated from selling extracted minerals,
ores, or metals.
b. *Royalty Income*: Mining companies may pay royalties to governments or
landowners for the right to extract minerals. In some cases, they may also
receive royalty income from other companies operating on their land.
c. *Processing and Refining Fees*: If a mining company processes or refines
minerals, they can generate revenue by charging fees to other mining companies
for these services.
d. *By-Product Sales*: Sometimes, valuable by-products are obtained during
the mining process, and revenue can be generated by selling these secondary
products.
e. *Hedging and Derivative Gains/Losses*: Mining companies often use
financial instruments like futures and options to hedge against price fluctuations
in the commodities they mine. Gains or losses from these financial activities can
impact revenue.
2. *Manufacturing Revenue Types*:
a. *Product Sales Revenue*: This is the core revenue stream for
manufacturing companies. It includes the income generated from selling the
products they manufacture.
b. *Service Revenue*: Some manufacturing companies offer services related to
their products, such as maintenance or installation services, which can
contribute to their revenue.
Page 7
c. *Licensing and Royalty Income*: Manufacturing companies may earn
revenue by licensing their intellectual property, patents, or trademarks to other
companies in exchange for royalties.
d. *Supply Chain Revenue*: Manufacturers may generate revenue by
supplying components or raw materials to other manufacturers or industries.
e. *Export and Import Revenue*: If a manufacturing company operates
internationally, revenue can come from exporting products to other countries or
importing raw materials.
3. *Hundi Revenue Types*:
Hundi is a traditional informal financial system used in parts of India. Revenue
generated from Hundi transactions is typically not categorized in the same way
as formal financial systems. However, it can include:
a. *Interest and Commission*: Hundi operators often charge interest or
commission for their services in facilitating informal money transfers.
b. *Exchange Rate Gains/Losses*: If Hundi transactions involve currency
exchange, gains or losses may occur due to fluctuations in exchange rates.
c. *Fine and Penalty Income*: Hundi operators may charge fines or penalties
for delayed payments or non-compliance with their terms.
d. *Investment Income*: Some Hundi operators may invest funds received
from clients and generate income from these investments.
Please note that the revenue types for Hundi transactions are not as standardized
or regulated as those in formal financial and business operations, and they can
vary widely depending on the specific Hundi operator and the nature of the
transactions.
Page 8
CONCLUSION
In conclusion, the study of investment in gold and gems during the Vedic period
provides a fascinating glimpse into the economic and cultural landscape of that
era. The Vedic society, which encompassed a wide range of regions and
periods, demonstrated a deep appreciation for precious metals and gemstones,
considering them not only as symbols of wealth but also as integral elements of
their cultural and religious practices.
Units and terms used in Vedic texts showcased a sophisticated understanding of
metals and gemstones, reflecting their significance in various aspects of life,
from religious rituals to trade and commerce. Gold and gems were measured in
specific units, and the terms used indicated their various properties and
qualities.
There were different types of metals and gemstones that held distinct value and
importance in the Vedic society, with gold and certain gems like sapphires and
rubies being particularly revered. These precious materials were utilized in
ornamental and decorative items, as well as in the crafting of jewellery and
religious offerings.
The revenues generated from mining operations and manufacturing processes of
these precious materials contributed to the economic prosperity of the Vedic
society. Moreover, the use of Hundis, ancient financial instruments, facilitated
trade and investment in these valuable resources, leading to their exchange and
circulation across the Indian subcontinent.
In essence, the Vedic period was marked by a deep-seated appreciation for gold
and gems, not just for their economic value but also for their cultural, religious,
and aesthetic significance. This historical context sheds light on the enduring
allure of these precious materials in the Indian subcontinent, which continues to
be relevant in contemporary times.
During the Vedic period, the investment in gold and gems went beyond mere
material wealth. These precious items played pivotal roles in cultural and
religious rituals, symbolizing purity and divinity. The use of gold and gems in
offerings and adornments was a testament to the spiritual significance attached
to them. In conclusion, the Vedic period stands as a testament to the enduring
fascination and reverence for gold and gems, illustrating their timeless appeal.
Page 9
BIBLIOGRAPHY
KAUTILYA ARTHSHASTRA
VEDICHERITAGE.GOV.IN
NEW WORLD ENCYCLOPEDIA.COM
