13IndIA's growth rate to surpass ChInA in 2016 role of ...money-wise.in/wp-content/uploads/2015/06/Issue-2_Vol-3_color-2.pdfModi's MAKE IN INDIA push is a master stroke. It is a revolutionary

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13IndIA's growth rate to surpass ChInA in 2016 40role of emotional

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CONTENTEDITORIAL.....

6Modi's MAKE IN INDIA push is a master stroke. It is a revolutionary concept, which

will firmly put India into growth trajectory....

GOLD REVIEW.....

8Gold posted significant gains during the month after investors fled other investment

avenues following several economic developments....

lexis of stock market.....

16When a company proposes to raise capital from the public, it issues a prospectus. Prospectuses are two

types....

vintage series.....

10Africa remains the world's

poorest and most underveloped continent. The result of a variety of factors that may include corrupt governments, high levels of illiteracy, lack of access to foreign capital....

understanding mutual funds.....

44Lets understand how financial instruments came into existence. Its starts with the need of capital to start any business. On one hand

there are industries/companies and.....

legally wise.....

14Important Supreme Court Judgements (19th December 2014-

18th January 2015)

MONEY WISE Series


Contributed by: M.B. Balasumbramanyam

News in Nutshell1. Government of India has allowed Public Sector

Banks to raise upto Rs.1,60,000 Crores in stages by reducing Govt holding to 52% to meet Basel III norms.

2. ReserveBankofIndiaimposedafineofRs50lacs& Rs.25 lacs on ICICI Bank and Bank of Baroda for not enforcing KYC norms.

3. Jack Ma founder of Alibaba portal is reported to havemadeaprofitof$18.5Billionin2014.

4. PublicSectorBankslostRs.2417CroresinthefirstQuarterof2014-15duetofrauds.LeadingthepackwasCentralBankofIndiawithRs.818Crores.

5. Dharmaj, a small village with a population just 1100, 70KmsfromVadodaraboastsofatotaldepositsof Rs 1000 Crores ! 13 Banks have opened branches in the village.

6. Mr Hari Rao an ITO cum entrepreneur of Bangaluru has designed a Gas Stove which saves 50% gas and is carbon and smoke free. Ideal for industrial units.

7. IndianPremierLeage(IPL)fiascoreachesadefinitestagewithSupremeCourtverdict. More likely to follow.

8. ReserveBankofIndiatightenednormsfordefaultersbyclassifyingthemas'non-cooperative' if they intentionally stonewall recovery efforts of Banks.

9. IRDAimposedafineofRs55lacsonMaxLifeInsCo for violating guidelines for outsourcing .

10. The total number of accounts opened under Jan Dhan Yojana crossed 10 Crores with total balance ofaboutRs7600Crores.

12. New Year eve celebrations at Burj Khalifa in Dubai wasspecial.Alightshowinvolving70,000LEDbulbs were used which entered into the Guiness Records.

13. RemittancesbyNRIstoKeralacrossedRs97000CroresduringJuly-Septr2015.

14. IIMsmaybeallowedtoawardMBADegreeinthenear future.

15. Planning Commission has been replaced by NITI Ayog with the Prime Minister as the Chairman.

16 BangaloreStockExchangestoppedfunctioningdue to reduced transactions. However, it's Stock BrokingArmBgSEFinancialscontinuestofunction.

17. CentralGovernmentokayed.auctioningof2Gand3GSpectrumwhichmayyieldabout64840Croresduring the entire process.

18. AzimPremjiChiefofWiprotoppedthelistofIndianPhilanthrophists by donating Rs 12316 Crores duringApril2013andOctober2014.

19. Crude Oil prices continued its slide falling below $50perBarrel.GOIrespondedbyreducingthe prices of Petrol and Diesel twice in quick succession.

20.RogerFederer,acetennisPlayerrecordedhis1000thWin,araremilestone.

21. Raghuram Rajan sprang a surprise by reducing Repo and Reverse Repo rate by 25 Basis Points. StockExchangesrespondedpositivelyasaresult.

22. Crore Pathis all the way! CISCO has 132 Crorepathis on their rolls compared to just 3 in the previous year.

SNIPPETSCo

NTEN

TS

CONTENT

15 Supreme Court verdict on IPL Match fixing scandal

and its impact on India Cements18 Dancing of Rupee

against Dollar

35 Are IPOs losing ground?

45 Entrepreneurship as a Career for Women

46 Corporate Fraud

reports 45% increase

48

A unique Valentine Day message

42 Soil Health Cards for Farmers

37 Not by Rupee alone: Changing approaches in Employee

compensation

20 NITI AAyOG replaces PLANNING COMMISSION

24Memorable Memories

of Maiden WORLD CUP 1983

27 Money on Mobile: An answer for

instant fund transfer

38 MCX commences

Futures Trading in Crude Mini

MONEY I LOVE YOU


EDIT

oR

SPE

AKS

T.S. Raghavendra Rao

Modi's Make In India push is a masterstroke. It is a revolutionary concept which will firmly put India into growth trajectory.

Make In India is about job creation, Make In India is about accelerating India's growth story. This initiative will transform India into a global manufacturing hub.

The government has identified 25 key sectors in which India has the potential of becoming a world leader.. Enough ground work has been done in this regard. The Make In India, campaign wants to increase the contribution of the Manufacturing sector to the overall GDP of the country. India's GDP in 2013 had 56.9% contribution by the Services sector while Manufacturing sector contributed only 15%..

Prelude: The Indian economy, which slumped badly in 2012 and 2013, will likely grow 6.3 percent this year, because of investor confidence in Modi. By 2016 the country’s growth rate of 7.2 percent will surpass China’s 7.1 percent, says CLSA senior economist Rajeev Malik.

Make In India; Right On time: This is the golden opportunity for Indian Industry to take advantage of the Govt push on Make In India especially when our neighbour China is showing a downward trend in GDP growth.

The slowdown in China, however, could make a big difference this time. China became an export powerhouse because of its vast pool of low-wage workers, but it’s no longer so cheap to manufacture there. Pinched by double-digit increases in China’s minimum wages, many companies are looking for low-cost alternatives. Southeast Asian countries such as Vietnam and Indonesia are attractive, but they lack the deep supply of workers available in India. “Neither one is big enough to take up the slack,” leaving India with a “golden opportunity.”

China's GDP is continuously on a downward trend. Difficult to recover considering China's Demographics.

And though foreign investment is rising in “Vietnam, Thailand, Myanmar and the Philippines,” conducting business in those countries is usually not

as easy as in China,Making Maximum out of 'Make In India' PushIndia has an inbuilt advantage in terms of cheap

and skilled labour. It is time we take advantage of our demographic dividend and govt push and change the face of India once and for all.

The recently-concluded deliberations on the Prime Minister’s ‘Make in India’ campaign provide an opportunity for delineating a forward-looking approach in respect of manufacturing activity, income, employment and environment in the coming years. The decisions that the government takes and implements in these areas are of far-reaching consequence, and will impact the trajectory of progress, as the economy moves from the status of ‘developing’ to that of ‘developed’.

An action plan has been prepared, and the ROAD to success consisting of Responsibility, Ownership, Accountability and Discipline defined

Pride in the organisation, nation and community to which one belongs is needed to a much greater extent than it exists today. While a lot is made of globalisation and the need for the adoption of global best practices, there is ample scope for building on this intangible element of local and national pride, not for covering our inherent weaknesses but for emphasising our strengths, capacities and potential.

There is no dearth of these, be in the form of richness of tradition, culture and values, or in the availability of indigenous knowledge. All of these need to be re-emphasised and combined with the availability of technology, organisation and efficiency, so as to create adequate momentum and motivation to overcome some of the underlying inefficiencies in our system.

A combination of self-pride, institutional support, critical thinking and effective action can undoubtedly enable the ‘Make in India’ stamp to become a hallmark of global excellence. The steps mentioned here can provide a strong foundation for enabling a successful ‘Make in India’ campaign.

'Money Wise' wishes 'Make In India' initiative of Prime Minister Narendra Modi a very success.

Make In India

EDITo

R ANSWERS

Gold and Stock Market Review by Pradeep Chandrashekharan is coming well. It is a unique feature of Money Wise.

Ms.Renuka Sundaram, Chennai

We are working on increasing the coverage on these topics.

Vintage Series by Chandan Kulkarni is coming out well. It is giving a different dimension to our thinking. Keep it up sir.

Ms. Shylaja, Mumbai

We shall try to live up to the expectation.

'Lexis Of Stock Market' by Mr.Kannan S is very knowledgeable and educative. He is covering it very comprehensively

Mr.Anand Rajshekhar, Goa

Article on BCCI's Monetary growth by Abhijit Burli is excellent . Very good Abhijit Burli Sir

Mr.George ,Cricket Lover, New Delhi

'BJP's Poll ready Team' article by M.N.Subramanya is very insightful

Mr.Rajeshwari Devi, Bangalore

Article on 'BIosimilar of Adalimumab' gives valuable information.

Mr.Nagraj, Chennai

MSCS in Ponzi's Guise article by Sastry is very interesting and it creates awareness to general public against such schemes.

Mrs. Veena S Gopal, Hyderabad

Article on 'Understanding Mutual Funds' by K.S.Chhayaa is evolving very good and educative.

Mr.Ramesh Narayan. Tumkur

Article on V.R. Krishna Iyer is excellent. It is a great loss to the country.

Ramanujam, Mumbai

'News In Nutshell' caption for Snippets is a welcome change. Snippets is evolving well. Good job by Mr.M.B.Balasubramanyam.

Mr. Kalyan Raman, Pune

Money Wise is yet to start detailed coverage of Stock Market.

Mrs. Poornima Srinath, Mysore.

We are working on it madam.

'Revisit Of Base Rate Mechanism' by R.S.Raghavan is very technical and extremely good.

Mr.Krishna Kamath, Rtd. Canara Bank Manager, Mysore

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PRADEEP ChANDRASEKARAN (the author is the Founder and CEO of Finmark Trainers

and can be reached at [email protected])

STOCK MARKET REVIEWGoLD REVIEW

PRADEEP ChANDRASEkARAN

Gold posted significant gains during the month after investors fled other investment avenues following several economic developments. The

slump in oil prices have and slump in several global equity markets led to renewed buying in Gold.

The decision of the Swiss National Bank to break the three year peg of the Franc against the USD also aggravated the situation which aided Gold to post more gains.

Chart ReviewGold broke through all the near-by resistance with

the bulls tightening their hold. The gains over the last few sessions have been significant enough for the long term trend to turn bullish. Gold now can be expected to test the $1340 level in the coming weeks. The erstwhile resistance for Gold around the $ 1260 level is now the first level of support for Gold. Investors can use corrections in Gold to build long positions. The short and medium term trends will turn bearish only if Gold where to close below the $1220 level.

DOMESTIC GOLD PRICE MOVEMENThe domestic gold moved slower relative to the

international prices but have also managed to turn the long term trend up. The domestic prices are now close to the initial target at the Rs.28000 level. Long positions can be maintained in Gold though it would be advisable to initiate fresh positions only during a correction. The on-going upmove in Gold will come under threat only in the event of a close below the Rs.26800 level.

GBP – USD

The GBP came under renewed attack from the bears with the result that the short term has once again turned down. The GBP is now heading towards a test of its 2013 low at the 1.4806 level where it has previously formed a double bottom (see chart). This is a major support area for the GBP now and is a crucial area. Should the support hold, the GBP will have the potential to stage a recovery – potentially all the way to the 1.55 level. On the other hand, if this level is broken, further selling can be expected since there is no visible support immediately after this.

THE NIFTYThe NIFTy had a volatile month and moved in a

fairly narrow range during the month. Fresh bouts of buying interest in several pivotals has enabled the NIFTy to claw its way back close to its all-time high. The short and medium term trends continue to be sideways while the long term trend continues to be up. In the forth coming sessions, the NIFTy can be expected to test its resistance at the 8650 level. This is going to be crucial in the sense that a failure now to break this level will result in the formation of a double top. Double tops have bearish implications and are formed when the prices reach the same level and is unable to break through it. On the downside, the NIFTy now has strong support around the 8300 level. A close below this level will result in the short and medium term trends turning bearish.

THE BANK NIFTYThe BANK NIFTy broke through its resistance

levels and rose to new record highs. All the trends in the Index are now up. The struggle of the Index over the last few weeks in the range between 17600 and 18900 will now have the ability to cushion any fall and will act as the first area of support. The immediate target for the Index is now at the 19900 level. There are several stocks in the sector which continue to offer entry opportunities at low risk and investors can continue to build long

positions in such stocks.

The CNX IT INDEXThe CNX IT Index staged a recovery during the

month by building on the strength of the triple bottom formed at the 10860 level. The recovery has been strong enough to turn the short term trend bullish. The Index is now poised to test its recent high around the 12000 mark. As in the case of the NIFTy, this is going to be crucial because a failure now to break above the 12000 mark will result in the formation of a double top. On the downside, the first support is currently placed at the 11350 level. A close below this level will result in the short term trend turning bearish.

GoLD

REV

IEW

SToCK MARKET REVIEW


Diamonds of WarBlood DiamondsChANDAN kULkARNI

[email protected]

Vintage SeriesVintage Series

Africa remains the world's poorest and most underdeveloped continent, the result of a variety of factors that may include corrupt governments,

high levels of illiteracy, lack of access to foreign capital.Africa is rich in natural resources. Sudan and Nigeria

are two of the main oil producers,the copper belt in Katanga, the diamond mines in Sierra Leone, Angola, and Botswana are well known for their abundance and rich produce.

The word "Diamond" comes from the Greek word "Adamas" and means "unconquerable and indestructible".

During the medieval ages Diamonds were known in ancient Greece and the Roman empire and were believed to be tears of the Gods and splinters from falling stars.Their rarity, durability and beauty made them popular among royalty.Today, diamonds continue to hold a deep fascination as the world’s ultimate symbol of wealth.

The U.S. is the world’s largest diamond market. Although the U.S. accounts for less than one-percent of

total global gemstone production, America buys more than half of the world's total gem quality diamonds.

Diamonds were too rare and expensive for those of lesser means to afford until the discovery of African diamond mines in the 1870s. The De Beers Company was the sole owner and operator of these newly discovered mines in South Africa. In the 1930s, when demand for diamond rings declined in the U.S. during hard economic times, the De Beers Company began an aggressive marketing campaign using photographs of glamorous movie stars swathed in diamonds. Within three years, the sales of diamonds had increased by 50 percent.

In 1947, De Beers launched its now classic slogan, "A Diamond is Forever." This spurred even more sales.

Africa’s two most profitable mineral resources are gold and diamonds. In 2008, Africa produced about 483 tons of gold, or 22 percent of the world’s total production. South Africa accounts for almost half of Africa’s gold production.

Africa dominates the global diamond market. In 2008, the continent produced 55 percent of the world’s diamonds. Botswana, Angola, South Africa, the Democratic Republic of the Congo, and Namibia,Sierra Leone are Africa’s largest producers of diamonds.

Diamonds,a Resource Curse? Sierra Leone is a country in West Africa. It is

bordered by Guinea in the north-east, Liberia in the south-east, and the Atlantic ocean in the south-west.Freetown is the capital city,its a bustling port city.

The main minerals mined in Sierra Leone are diamonds, rutile, bauxite, gold, iron and limonite.

Mining in Sierra Leone, especially diamond mining, has been seen as one of the key factors for instability in the country and one of the reasons for the country's recent civil war.

The first Sierra Leonean diamond was found in 1930, and significant production commenced in 1935. Sierra Leonean production is characterized

by a high proportion of top-quality gem diamonds. The Star of Sierra Leone, a magnificent 969-carat diamond, was discovered in the Koidu area. By 1937 Sierra Leone was mining one million carats annually, reaching a peak of 2 million carats in 1960.

From 1930 to 1998, approximately 55 million carats were mined (officially) in Sierra Leone. At an average price in 1996 dollars of US $270 per carat, the total value is close to US $15 billion.

Unfortunately several African conflicts and civil wars have been caused and funded by the diamond industry.Whenever a substance of value was found in Africa ,it resulted in bloodshed - history is a witness to such conflicts.

The Sierra Leone Civil War (1991–2002) began on 23 March 1991 when the Revolutionary United Front (RUF), with support from the special forces of National Patriotic Front of Liberia (NPFL), intervened in Sierra Leone in an attempt to overthrow the Joseph Momoh government. The resulting civil war lasted 11 years, enveloped the country, and left over 50,000 dead.

Conflict diamonds, also known as "blood diamonds" are diamonds illegally traded to fund conflict in war-torn areas, particularly in central and western Africa. The United Nations (UN) defines conflict diamonds as "...diamonds that originate from areas controlled by forces or factions opposed to legitimate and internationally recognized governments, and are used to fund military action in opposition to those governments..”

They are generally in "rough" form, meaning they have recently been extracted and not polished.

A diamond mined in Sierra leone by RUF commiting brutalities may well be a engagement ring in US or may be made into a beautiful necklace.All such diamonds invariably are responsible for the conflict.Diamonds have always been looked at as source of power and wealth,but its hard to imagine their brutal past.

The world demand for diamond is so high that it helps to keep the conflict going. At the height of the civil war in Sierra Leone, it is estimated that conflict diamonds represented approximately 4% of the world's diamond production.

The war claimed over 75,000 lives, caused 500,000 Sierra Leoneans to become refugees, and displaced half of the countries 4.5 million people.More than 5,000 child soldiers were forcibly recruited. Many were given drugs and forced to commit barbarious crimes.AK47,knives,macheetes were given to them ,looting ,Rape,burning down entire villages followed.Child soldiers were most feared,they formed a "Boys Unit". Most of all, however, the RUF became known for mass mutilation. According to an estimate by the humanitarian agency medico international, the rebels hacked off limbs of about 20,000 civilians.RUF took labourers as slaves to work in mines.Revolutionary United Front (RUF) established itself as a brutal militia.

Diamonds are a guerilla’s best friend Throughout the nine-year civil war, fighting

concentrated in and around the diamond districts. RUF leaders were very aware that whoever controls the diamond mines controls Sierra Leone, and profits from smuggled diamonds funded its attack.

By the war’s end, the RUF was generating an annual $ 25 million to $ 125 million this way. In 2001, peace negotiations were conducted under pressure from the UN, and the war ended one year later.

The diamonds mined were smuggled to Liberia and other neighbouring countries and exported. The astoundingly high levels of its diamond exports bear no relationship to its own limited resource base. By accepting Liberian exports as legitimate, the international diamond industry actively colluded in crimes committed or permitted by the Liberian government.

Annual Liberian diamond mining capacity is between 100,000 and 150,000 carats, but the records indicate Liberian imports into Belgium of over 31 millioncarats between 1994 and 1998 - an average of over six million

"For every hand taken in marriage,another hand is taken away" in one of the Ads.

VINT

AGE

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carats a year.These are suspected to be blood diamonds. Diamond industry is made up of

miners,polishers,marketers and ultimately consumers.Once the rough stones are mined they are exported to polishing centres in Belgium(Antwerp),Surat(India),London.All diamonds become legitimate after polishing, their source is no longer necessary.

What is being done to stop the trade?The Kimberley Process started when Southern

African diamond-producing states met in Kimberley, South Africa, in May 2000, to discuss ways to stop the trade in conflict diamonds and ensure that diamond purchases were not funding violence.

The result was an agreement by the United Nations, European Union, the governments of 74 countries, the World Diamond Council.

They established the Kimberley Process Certification Scheme (KPCS), whereby members are required to certify that all rough diamond exports are produced through legitimate mining and sales activities and are "conflict-free."

Each shipment carries a certificate that details where the diamonds came from, how they were mined, where they were cut and polished, the parties involved, and their ultimate destination. The idea is that members of the Kimberley Process cannot trade with non-members.

As of 2015 less than 1% of diamond's traded are beleived to be conflict diamonds.

Conflict Trade is not limited to diamonds alone,its

reach is to any substance that is of value.Recently Rebels hijacked mines in Congo that supply precious metals to electronics manufacturers

Today, Sierra Leone is at peace, but the country still bears deep scars. The latest Human Development Index (HDI) ranked Sierra Leone number 180 of 187 countries. Nearly 20 % of children die before their fifth birthday. Only about 40 % of adults over 15 years can read and write. And almost two-thirds of the people live on less than $ 1.25 purchasing power a day.Legitimate minig activities are carried out.Business is still not trans parent. Distrust prevails.

In 2003, the UN Special Court for Sierra Leone (SCSL) indicted Charles Taylor,Fomer President Of Liberia. He was found guilty in all 11 charges – including war crimes and crimes against humanity.

Although Africa supplies about 60 percent of the world's diamond supply, there are alternate sources.First, remember that not all African diamond mines are corrupt. The African nation Botswana has been able to thrive thanks to a legitimate diamond industry, Botswana has enjoyed a complete about-face from one of the world's poorest countries in 1966.

As they say Diamond's are forever..."A resource curse, also known as the paradox of

plenty, refers to the paradox that countries and regions with an abundance of natural resources, specifically point-source non-renewable resources like minerals and fuels, tend to have less economic growth and worse development outcomes than countries with fewer natural resources"

"Labourers mine for diamonds in Sierra Leone"

India under the leadership of Prime Ministership of Narendra Modi is expected to grow at 6.3 per cent his year and 6.5 per cent in 2016 , when it is likely to

cross China's projected growth rate.While terming the new

government's reforms as "promising" it insisted that their implementation is key., the IMF has said. In 2014, India's growth rate was 5.8 per cent against China's 7.4 per cent, said the World Economic Report update released by the International Monetary Fund. India's growth rate in 2013 was five per cent as against

China's 7.8 per cent.Indias projected growth rate

would be at 6.3 per cent in 2015 and 6.5 per cent in 2016, when it is likely to cross China's projected growth rate of 6.3 per cent, the IMF said. "I think the reform plans of the new Prime Minister Narendra Modi are promising. We are going to have to see the speed of the implementation, according to " Gian Maria Milesi-Ferretti, deputy director in IMF's Research Department.

Responding to a question, the IMF official said the effect of Prime Minister Narendra Modi-led government's economic reform would be difficult to predict as these are structural reforms and are growing gradually over the medium term. "Key is going to be implementation," Milesi- Ferretti said.

According to the latest IMF report, in India, the growth forecast is broadly unchanged, however, the weaker external demand is offset by the boost to the terms of trade from lower oil prices and a pickup in industrial and investment activity after policy reforms.

The global growth will receive a boost from lower oil prices, which reflect to an important extent higher supply the Press Trust of India reported.

But this boost is projected to be more than offset by negative factors, including investment weakness as adjustment to diminished expectations about medium-term growth continues in many advanced and emerging market economies.

Global growth in 2015 16 is projected at 3.5 and 3.7 per cent, a downward revision of 0.3 per cent relative to the October 2014 World Economic Outlook (WEO).

The revision reflect a reassessment of prospects in China, Russia, the euro area and Japan as well as weaker activity in some major oil exporters because of the sharp drop in oil prices.

The United States is the only major economy for which growth projections have been raised, the IMF said.Investment growth in China declined in the third quarter of 2014, and leading indicators point to a further slowdown.

India's growth rate to surpass China's in 2016: IMF

narEndra MOdI

GIan MarIa MILESI-

FErrEttI,deputy director

in IMF's Research

Department

IMFdowngrades global growth forecast

however the IMF now expects global growth of 3.5% this year, compared with the previous estimate of 3.8% which it made in October.The growth forecast for 2016 has also been cut, to 3.7%. The downgrade to the forecasts comes despite one major boost for the global economy - the sharp fall in oil prices, which is positive for most countries. The IMF expects that to be more than offset by negative factors, notably weaker investment. That in turn reflects diminished expectations about the growth prospects for many developed and emerging economies over the next few years. If business expects weaker growth, there is less opportunity to sell goods and services and so less incentive to invest.

M.k. VIDYARANYASenior Journalist

& Political Analyst

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Important Judgements[19 December 2014 – 18 January 2015]

Compiled bySIVARAMAkRIShNAN M.S.Practicing Supreme Court Advocate [email protected]

Legally Wise

Civil Procedure Setting aside of exparte

decree under Order XXXVII Rule 4 of the Code cannot be allowed in routine and special circumstances are required to be established. However, the expression "special circumstances" has to be construed having regard to the individual fact situations. The Court has to balance the equities and while safeguarding the interest of the plaintiff, appropriate conditions can be laid down if the defendant makes out a debatable case which may prime facie show injustice if the ex-parte decree was not set aside.

Mahesh Kumar Joshi v. Madan Singh Negi, Civil Appeal 450 / 2015, dated 15 January 2015

Contract ActIf time be made the essence of

the contract, that may be waived by the conduct of the purchaser; and if the time is once allowed to pass, and the parties go on negotiating for completion of the purchase, then time is no longer of the essence of the contract. But, on the other hand, it must be borne in mind that a purchaser is not bound to wait an indefinite time; and if he finds, while the negotiations are going on, that a long time will elapse before the contract can be completed,

he may in a reasonable manner give notice to the vendor, and fix a period at which the business is to be terminated.

Kailash Nath Associates v. Delhi Development Authority, Civil Appeal 193 of 2015, dated 9 January 2015

Companies ActOn a conjoint reading of the

relevant provisions of Sections 391 and 393 it becomes at once clear that the Company Court which is called upon to sanction such a scheme has not merely to go by the ipse dixit of the majority of the shareholders or creditors or their respective classes who might have voted in favour of the scheme by requisite majority but the Court has to consider the pros and cons of the scheme with a view to finding out whether the scheme is fair, just and reasonable and is not contrary to any provisions of law and it does not violate any public policy. This is implicit in the very concept of compromise or arrangement which is required to receive the imprimatur of a court of law.

Infrastructure Leasing & Financial Services v. BPL Ltd., Civil Appeal 2701 / 2006, dated 9 January 2015

Criminal ProcedureAn Appellate Court, while

dealing with an appeal against an order of acquittal, has full power to review, re-appreciate and reconsider the evidence upon which the order of acquittal is founded. An appellate court, however, must bear in mind that in case of acquittal, there is double presumption in favour of the accused. Firstly, the presumption of innocence is available to him under the fundamental principle of criminal jurisprudence that every person shall be presumed to be innocent unless he is proved guilty by a competent court of law. Secondly, the accused having secured his acquittal, the presumption of his innocence is further reinforced, reaffirmed and strengthened by the trial court. If two reasonable conclusions are possible on the basis of the evidence on record, the appellate court should not disturb the finding of acquittal recorded by the trial court.

Vinod Kumar v. State of Haryana, Criminal Appeal 1401 / 2008 dated 8 January 2015

Service LawWhen an employee is

found guilty of pilferage or of misappropriating the Corporation's funds, there is nothing wrong in

the Corporation losing confidence or faith in such an employee and awarding punishment of dismissal. In such cases, there is no place for generosity or misplaced sympathy on the part of the judicial forums and interfering therefore with the quantum of punishment. The amount misappropriated may be small or large; it is the act of misappropriation that is relevant.

Diwan Singh v. Life Insurance Corporation of India, Civil Appeal 3655 / 2010, dated 5 January 2015

Voluntary RetirementUnder any Voluntary

Retirement Scheme, the employees that opt for the scheme and receive the ex-gratia payment as provided for under that scheme shall form a different class of employees and cannot claim the same benefits as the other employees who have retired in the normal course. Revisions in pensions accruing to employees who retired in the normal course can be denied to employees who voluntarily retired under a VRS Scheme, provided the Scheme sets out as such expressly.

Manojbhai N. Shah v. Union of India, Transfer Case (Civil) 48 / 2010, dated 7 January 2015

Supreme Court Verdict on IPL Match fixing scandal and its impact on India Cements The Supreme Court-appointed probe

committee, led by Justice Mukul Mudgal, had in its first report indicted Meiyappan of

betting and sharing team information. Srinivasan had mentioned that Gurunath was a mere 'cricket enthusiast.' Srinivasan was earlier charged for not taking adequate action against those involved in 'misdemeanours.'

Today's Supreme Court Verdict in the IPL match fixing scandal has absolved former BCCI President, CSK owner and Vice Chairman of India Cements Mr.N.Srinivasan of cover up. The allegations of cover up charges against N Srinivasan were not proved and at best, the SC said there's only a case of suspicion of cover up.

However, N. Srinivasan, suffered a huge setback as the Supreme Court observed that he created a conflict of interest by being the BCCI president and the owner of a team at the same time. The SC also said that clause 6.2.4 that allowed Srinivasan to own a team is not sustainable.

In a significant decision, the court struck down the controversial 6.2.4 clause that allows BCCI officials to own IPL teams and have commercial interests. "BCCI must ensure institutional integrity in the conduct of game considering the expectations of millions of viewers. Rule 6.2.4 violates principle of natural justice," the court said.

The court earlier said Srinivasan's son-in-law Gurunath Meiyappan and Raj Kundra of Rajasthan Royals are team officials who were involved in betting. In a landmark judement " The two-judge special bench however said "BCCI functions are public functions, amenable to judicial law."

A three-member panel comprising of Justices RM Lodha, Ashok Bhan and RV Ravindran was also formed to decide the fate of Chennai Super Kings, Rajasthan Royals and recommend changes in the BCCI constitution. The panel will give its report in six months.

The Supreme Court Thursday said sidelined BCCI president N. Srinivasan cannot contest elections for the Indian cricket board's governing body presidency as long as he is involved in a "conflict of interest" situation as an owner ofIPL franchise Chennai Super Kings (CSK).

Impact Of this judgement on India Cements: Shares of India Cements surged nearly 9 percent today after the Supreme Court verdict.

Now that the final Verdict is out, N.Srinivasan is barred by SC from contesting BCCI elections as long as he is involved in Conflict of interest. N.Srinivasan has to take a call now. Earlier the better. Once the quantum of punishment is decided aganist CSK and RR by the panel, we will have clarity on the impact as N.Srinivasan is the Vice Chairman of India Cements and Dhoni is Vice President of India Cements.

M.N. SUbRAMANYA Retd. banking Professional

LEGA

LLY

WIS

E IPL VERDICT


"ONLY" In Lighter VeinONLYhesaidthathelovedher.HeONLYsaidthathelovedher.HesaidONLYthathelovedher.HesaidthatONLYhelovedher.HesaidthatheONLYlovedher.HesaidthathelovedONLYher.HesaidthathelovedherONLY.

CS Kannan [email protected]

Lexis of Stock MarketPart- 6

We have seen about Prospectus in the previous issue. When

a company proposes to raise capital from the public, it issues a prospectus. Prospectuses are two types (1) Normal Prospectus and (2) Red herring Prospectus. Normal Prospectus was explained to your benefit in the previous issue. Let us now see what Red herring Prospectus is. To put it in a layman’s language, ‘red herring’ means some thing, some thing important is “missing”. What is missing in such prospectuses? A red herring prospectus does not include three key details of the issue such as (i) price per share; (ii) the number of shares offered and (iii) the amount of issue. These two types of prospectuses are used in two different types of public issues. They are: (1) Fixed Price Issue and (2) Book Building Issue. Let us see what are they.

Fixed price issueThis is an age old type of

public issue and most popular one

too. The price of the securities, the number of securities that are offered to public and the amount that is intended to be collected are made known in advance under the fixed price issue. The minimum number of shares to be subscribed by each applicant is indicated in the prospectus. The critical point to be noted under this kind of an issue is that the demand for the securities offered is known only after the close of the issue.

Book Building IssueThis is more a recent

development in the primary market in India. In tune with the global practices, SEBI introduced book building guidelines for primary markets as early as 1995, almost no book building activity was seen in the Indian capital market till 2000. Book building is a process by which a demand for the securities offered for sale by a corporate is built up and the price for the security is assessed on the basis of the bid obtained from the investors. This type of mechanism

provides an opportunity to the market to discover the price for securities and also the demand for such securities can be known everyday as the book is built based on the bids received.

Unlike the Fixed Price Issues, there are certain specific terms used under the Book Building Issues. Let us see some of them.

Cut off PriceIn a book building issue, the

issuer is required to indicate a floor price, that is, a price below which the bids would not be accepted and a cap price which is usually 20% above the floor price beyond which the investors need not bid. It is also possible for the issuer to provide a price band within which the investor could bid. This is actually the liberty that is provided to an investor who is expected to bid an appropriate price after considering various prospects of the issue.

Though this looks very simple, it would be very difficult for the investors to arrive at a price by

themselves. For such investors, the option available is ‘Cut off price’ which simply means that the applicant is willing to subscribe at a price at which majority of the bidders are willing or at a price at which the issue is fully subscribed. By using this option, the investor forfeits his option to determine the price at which he is willing to subscribe to the shares. SEBI guidelines permit only retail individual investors to have an option of applying at cut off price.

Price BandPrice Band is nothing but a

range of price indicated by the issuer at the time of opening of bids for the book building issue. The issuer provides the floor price and the cap price the difference

between these two prices could be a maximum of 20%. This is often referred to as Price Band.

Price discoveryThe issuer company definitely

would look to get as much money as possible from the investors for lesser number of shares that he would issue. Obviously the opposite is true from the point of view of investors. The point of meeting of both the issuer and the investors would lead to the price discovery. In simple, price discovery would help the issuer to identify the maximum amount that he could collect from the investor for each security issued by him and the price at which the issue would be fully subscribed, at least once.

… to be continued

Do you know…?The Wholesale Debt

Market segment deals in fixed income securities and is fast gaining ground in an environment that has

largely focussed on equities. The segment

commenced operations on June 30, 1994. This

provided the first formal screen based

trading facility for the debt market in the

country.Courtesy : www.

nseindia.com

Readers are invited to send questions referring to specific words used in stock market. You are welcome

to send your queries to [email protected] or [email protected] LE

XICo

N LEXICoN


At the time of Independence in 1947, Rupee was equal to a Dollar and rupee has been significantly depreciated to the extent of 65 or 66 per Dollar,

an year ago in August 2013, with the major contributors, in the past six and a half a decades, being import of Petroleum products and Gold metal. Despite crossing the threshold figure of 60 and fluctuating beyond that, dollar exchange rate relentlessly moved against rupee without retirement. In May 11, Rupee was around 45 against dollar and crossed the psychological barrier of 50 later and remained above that almost entirely in 2012, followed by its peak in mid- 2013. There is nothing magical about the figure of 60, akin to Senior Citizen concept, or for that matter even 70, but it reflects on the economy badly, when not checked properly. A free fall of currency is a challenge not normally faced during good years of economic indicators.

Economic conditions in early nineties, when Liberalisation, Privatisation and Globalisation (LPG) opened up and policy stance, during the pre-gulf crises era, were different than what is prevailing now, the Forex reserves were merely $ 3 billion and the same now hovers beyond $300 b, which is nearly 100 times and not just 100 %. In 2003-07, when credit off take was driven by high growth witnessed in private sector, Rupee appreciation was significant. Thus, reason for continued fall in rupee against dollar could be traced to the low level of credit creation reflected in poor GDP / Credit Deposit Ratio of banks.

In the last financial year 2013-14, Rupee depreciated, Gross Domestic Product (GDP) declined and Current Account Deficit (CAD) initially widened. The root causes for the Rupee and CAD not matching much with the monetary policy, but with the real sector economy, is that the Government was not successful in ensuring significant growth in the manufacturing sector in alignment with the service sector in Finance and I T fields. Owing to misplaced priorities by those in power, business developments in India were focused where the returns were quick, viz in financial and service industry. In this, capital outflow would also be quick when the confidence level tapers off.

Exchange Rate Implications: Exchange Rate is the price of a currency expressed in terms of another currency. Floating and Pegged modes are used to determine a currency’s exchange rate. In the former, government make changes to its national economic policies, directly or indirectly affecting the exchange rate, in the pegged exchange rate system, government sets / maintains the exchange rate, with no daily swing.

In the latter, the central bank needs to have large forex reserves for mitigating changes in the supply and demand proportion. If anyone poses a question as to whether the exchange rate prevailing now would stabilize and reflects the real exchange rate, the answer may not be forthcoming. The exchange rate does not reflect the real value.

The Real Effective Exchange Rate (REER) is actually a measure of the trade weighted average exchange rate of the rupee against the basket of currencies, duly factoring the inflation differentials of the respective countries through an index number with reference to some base year. This is akin to Inflation Indexed cost arrived at for the Capital Gain tax for the reason that money value does not remain the same, over any period of time.

EXChANGE RATE IMPLICATIONS: Currency is often taken, by the international market, as one of the nation’s vital barometer in economic trade prosperity status. Falling rupee affects many during its journey and more so in the spectrum of costlier products, rise in fuel bills, higher cost for students pursuing courses in abroad, expensive foreign holiday trip, escalated medical treatment outside India, steeper interest rate. On the whole, it is bad times ahead for the economy. Balance of Payments, External Debt and Inflation are the three main causes known as Trinity Tri-lemma for the ballooning exchange rate and depreciation in the related Indian Rupee. Among the trinity, the weakness of Rupee against dollar could be traced mainly to the widening deficit. When the value of Imports over Exports is on the rise, demand for foreign currency increases, thereby weakening the domestic currency. This deficit was the main cause for the diminution in the value of rupee.

In India while Imports increased, owing to mainly crude oil and gold, Exports from India did not match

to that extent of supporting to meet that much value of Import, resulting in concrete Trade Deficit, reflected in adverse Balance of Payments. This is the prime cause for free fall of Rupee. India handled and managed this shortfall in B O P through the flows in Capital Account movement of funds, which also shrunk as there was exodus of foreign funds out of Indian Debt as well as Equity markets.

Inflation rates also played its role in the exchange rate movement as the former eroded the purchasing power that one currency could fetch against another currency. Apart from inflation, which is too many demands chasing too few commodities, External Debt which is the net money owed by Indian individuals as well as entities, inclusive of government and those abroad, had a solid bearing on the rupee as Indian government and corporate access funds abroad, following the opening up of economy in the free market set up.

Added to this, quite a good number of Indians take up higher education abroad, necessitating borrowing arrangements to meet the cost. These aggregate to a substantial quantum of External Debt getting magnified through exchange rate. All of such things in totality exert heavy pressure on the rupee against dollar both in near and long terms..

In this messy affair of amplified foreign economy, it is the students and the general populace who are most affected as these people do not have any hedging mechanism for the currency upward movement risk being witnessed. When the exchange rate is on the rise, value of foreign remittance being sent by persons working abroad gets multiplied for every dollar. But the other side is that foreign residents touring India would pay a few dollars less for their vacation trip, than when the rate was better. Further, stock markets had also reacted badly. But attempts are being made to decouple the stock markets from the forex markets, which of late seemed to break loose from the clutches of the rupee.

Obviously, Rupee’s tumble makes exports more affordable. If exporters have sellers advantage, they make money. On the contrary, if they are dictated with price, same gets bargained down. The long term impact of rupee face value is the inducement to produce more in India. Due to nearly 25% dip in exchange rate, imports have become expensive and hence it may make more sense to produce in India and export by capitalizing the prevailing situation. When country is facing crises situation on more than one front, viz. Exchange Rate, inflation, CAD, adverse Balance of Payment, etc., both RBI and Finance Ministry should openly discuss and arrive at a consensus for a workable solution, without making any differences between them as obvious to the outside world. Boosting

exports, dependent on Europe for CAD may be a good theoretical concept.

Ground reality of rupee slide is due to huge Current Account Deficit, caused by primarily large value of import of capital goods besides import of oil, fuel and gold. In pre 2004-05, the average annual capital goods import was just $10 billion and the same grew exponentially, USD 25.5 b in 2004-05, USD 47 b in 2006-07, USD 80 b in 2010-11 and further during the last three years till 2013-14, there by pushing the average to USD 90 plus.

Adding fuel to fire, incentives were given for the exports, thereby depriving of revenue to government exchequer. The double edged sword of Tax cut induced Capital Goods Import of huge value totally wiped out the CAD surplus and was allowed to run in deficit mode for a considerably long time, impacting the rupee.

The rally in Rupee is seen as reflective of weakening gold Prices, both significantly and rapidly. Good quantum of foreign portfolio inflows helped the Rupee strengthen beyond the psychological benchmark of 60. The Dollar Rupee outlook appears to be positive in the short term and bullish in the medium term. It is expected to revolve around 55 to 60 during the early part of 14-15 and may even touch a high of 50 or so as the electorate has given a firm verdict with strong leader. With large foreign fund flow, there is no better economic indicator than exchange rate. Rupees oscillation surge is coupled well with swelling forex reserves to over USD 300 billion and also fall in gold prices.

Since mid-May 2014, the Rupee is on strengthening mode and mood, as it revolves around 60. As foreign money flow is on the rise, prevention of recurrence of the nightmarish experience seen in later part of 2013 is possible. There appears to be no way of the rupee going steep, akin to 2013, though there may be a cap for the improvement in the rupee.

Though there appeared to be some sort of recovery witnessed during the last one year, after it peaked to 65 plus, the Indian Rupee depreciated in July- August 2014. The chief reason for the volatility as well as the fear coupled with expectation of the same may have stemmed out of the imminent Quantitative Easing Programme of the US Federal Reserve coming to end shortly in October 2014. This means that the rebound of rupee is short-lived and the country may again face the currency problem rising its head. Thus, there is every chance for facts such as stoppage of inflow of funds to buy financial assets in India, rise in the interest rate, higher outflow of funds, etc may have an adverse impact on the dancing capability or the volatility of Rupee. This was also confirmed and concurred by the Governor, RBI.

Dancing of RUPEE against DOLLAR

R.S. [email protected]

Rupe

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The Government has replaced Planning Commission with a new institution named NITI Aayog (National Institution for

Transforming India). The institution will serve as ‘Think Tank’ of the Government-a directional and policy dynamo. NITI Aayog will provide Governments at the central and state levels with relevant strategic and technical advice across the spectrum of key elements of policy, this includes matters of national and international import on the

economic front, dissemination of best practices from within the country as well as from other nations, the infusion of new policy ideas and specific issue-based support.

It may be recalled that the Planning Commission was set up on the 15th of March, 1950 through a Cabinet Resolution. Nearly 65 years later, the country has metamorphosed from an under-developed economy to an emergent global nation with one of the world’s largest economies. Prime Minister Narendra Modi gave NITI Aayog to the nation as the New year gift.

The institution to give life to these aspirations is the NITI Aayog (National Institution for Transforming India). This is being proposed after extensive consultation across the spectrum of stakeholders including inter alia state governments, domain experts and relevant institutions. The NITI Aayog will work towards the following objectives: To evolve a shared vision of national development priorities, sectors and strategies with the active involvement of States in the light of national objectives. The vision of the NITI Aayog will provide a framework ‘national agenda’ for the Prime Minister and the Chief Ministers to provide impetus. To foster cooperative federalism through structured support initiatives and mechanisms with the States on a continuous basis, recognizing that strong States make a strong nation.

NITI Aayog is to develop mechanisms to formulate credible plans at the village level and aggregate these progressively at higher levels of government. To ensure, on areas that are specifically referred to it, that the interests of national security are incorporated in economic strategy and policy. To pay special attention to the sections of our society that may be at risk of not benefitting adequately from economic progress. To design strategic and long term policy and programme frameworks and initiatives, and monitor their progress and their efficacy. The lessons learnt through monitoring and feedback will be used for making innovative improvements, including necessary mid-course corrections.

To provide advice and encourage partnerships between key stakeholders and national and international like-minded Think Tanks, as well as educational and policy research institutions. To create a knowledge, innovation and entrepreneurial support system through a collaborative community

of national and international experts, practitioners and other partners. To offer a platform for resolution of inter-sectoral and inter-departmental issues in order to accelerate the implementation of the development agenda. To maintain a state-of-the-art Resource Centre, be a repository of research on good governance and best practices in sustainable and equitable development as well as help their dissemination to stake-holders. To actively monitor and evaluate the implementation of programmes and initiatives, including the identification of the The author is a former civil servant

needed resources so as to strengthen the probability of success and scope of delivery. To focus on technology upgradation and capacity building for implementation of programmes and initiatives. To undertake other activities as may be necessary in order to further the execution of the national development agenda, and the objectives mentioned above.

The NITI Aayog comprises the Prime Minister of India as the Chairperson. Governing Council comprising the Chief Ministers of all the States and Lt. Governors of Union Territories. Regional Councils will be formed to address specific issues and contingencies impacting more than one state or a region. These will be formed for a specified tenure. The Regional Councils will be convened by the Prime Minister and will comprise of the Chief Ministers of States and Lt. Governors of Union Territories in the region. These will be chaired by the Chairperson of the NITI Aayog or his nominee. Experts, specialists and practitioners with relevant domain knowledge as special invitees nominated by the Prime Minister.

NITI AAyogreplaces Planning Commission

The vision of the NITI Aayog will provide a framework ‘national agenda’ for the Prime Minister and the Chief Ministers to provide impetus. To foster cooperative federalism through structured support initiatives and mechanisms with the States on a continuous basis, recognizing that strong States make a strong nation. The NITI Aayog comprises the Prime Minister of India as the Chairperson. Governing Council comprising the Chief Ministers of all the States and Lt. Governors of Union Territories. Regional Councils will be formed to address specific issues and contingencies impacting more than one state or a region. These will be formed for a specified tenure. The Regional Councils will be convened by the Prime Minister and will comprise of the Chief Ministers of States and Lt. Governors of Union Territories in the region.

Former Planning Commission Secretary

Sindhushree Khullar is appointed as Chief Executive Officer of the newly formed NITI Aayog. Khullar, a retired IAS officer, has been appointed on contract

basis for a period of one year from January 1, 2015, according to a note from the Department of Personnel and Training.

SIndhUShrEE khULLar

CEO NITI

M.k. VIDYARANYASenior Journalist & Political Analyst

NEW

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M.S Dhoni, who captained Indian cricket for notable World Cup triumphs (both T20 International & One Day International) also captained few memorable test matches to victories which took team India to the highest ranks. Dhoni announced retirement from test cricket on 30th December 2014.

As soon as Mahendra Singh Dhoni announced his retirement from test cricket last month, questions began to creep up in the cricketing fraternity as to what might have led to his retirement. Was it political scenes behind the curtain, was it really his decision to stretch his limited overs cricket career. But the biggest questions that were floating in economists’ minds were “What next for Brand Dhoni?” Will the brand decline? Or stay Intact?”

Mahendra Singh Dhoni's manager Mr. Arun Pandey, who is also the chairperson of Rhiti Sports Management the company that manages Dhoni’s brand endorsements, felt that his retirement from test arena will have no impact on Dhoni's brand in the foreseeable future and what Dhoni has done for the team and India till date will stay in the minds of people for a long time. So, his visibility will not be affected. This seems true as World Cup is fast approaching and the tournament brings possibly huge visibility world over. World Cup is followed by the cash rich Indian Premier League (IPL) tournament. And success in these tournaments would probably make the brand immortal. More importantly, India won't be playing much Test cricket for next few months and M.S Dhoni will never be missed.

Even after his retirement from test cricket, ever since the biopic “MS Dhoni: The Untold Story” has been launched, it is said that many buyers have been showing interest in the film. And as the news goes, it is the Fox Star Studios that has acquired the rights for the film and Dhoni has already earned #20Cr for it. If this said deal has shaped up, then this is no decline in the brand. Economists feel that brand Dhoni has acquired a universal appeal that isn't dependent on cricket alone. Currently, Dhoni endorses nearly 20 brands and is in the

final stages of negotiations to sign a couple more in the first quarter of 2015. According to the estimates, Dhoni's annual fees still stand at Rs 10 -12 Crore a brand.

But at the other end of the story, retirement marks a psychological scar on good-old fashioned cricket fans where the test cricket has always been a pinnacle of cricket and they feel that M.S Dhoni is sliding from the throne. Many companies might be in a feeling that Dhoni’s ship has sailed and it’s a matter of time he is gone from the international circuit. Ashok Leyland who had signed up Dhoni as its brand ambassador in 2012 is said to have not decided on extending Dhoni's contract as its brand ambassador. History has shown Dhoni with number of brands he endorsed had declined with the brand value dip up to 20% - 30% in the past due to his lacklustre performances. And now his retirement from the Test arena and evolution of a new brand in Virat Kohli who himself is smelling enormous success will have a big scar

on the brand Dhoni. But in contrast Dhoni’s decision will now allow him to focus only on the shorter versions of the game which indeed is his strength and this will extend his longevity which is obviously dependent on India’s fortunes in the World Cup tournament.

Could Brand Dhoni’s future be decided on India’s

success at World Cup? Supreme Court verdict against N Srinivasan for

contesting any of BCCI top spots could be a bane for M S Dhoni who has already quit at the test level. Emergence of another brand in Virat Kohli is fresh and hot at the market. In addition to these India going into the tournament as reigning & defending World Cup champions makes matter no cooler for captain cool. This will be the time when fans’ expectations are sky high and player’s past reputation is at stake. If Indian World Cup hunt ends on a positive note, Brand Dhoni gets into a special Hall of fame where no one has visited till now, but what if Dhoni’s team loses the battle - will it be an instant slide for M S Dhoni which could even lead to a crash of Brand Dhoni.

Mahendra Singh Dhoni, one of the successful Indian Cricket captains at all formats is truly an icon. The man started stepping up

the ladder towards achieving legendary status in Indian cricket when he captained India to its very first and only World T20 title till date. Dhoni, as a school boy played badminton and football at his hometown in Ranchi and was selected to represent the district and club in these sports. He was a goalkeeper for his football team and was asked to play cricket for a local cricket club by his football coach. Dhoni impressed his coaches with his wicket-keeping skills and instantly became the regular

wicketkeeper. Since then his success curve has been soaring high, that has evolved as a brand.

Sachin Ramesh Tendulkar who was perhaps the biggest brand until M.S. Dhoni made waves in Indian Cricket, was featured in numerous endorsements worth crores. Brand Tendulkar had exceeded all the limitations during the era. It was a brand that evolved over two

decades where he went on to set a track record that could not be matched very easily. But when brand

Dhoni evolved it took merely a decade to reach thae status and it was a tremendous feat. .When M.S Dhoni started making waves at the international level; very few had thought he would be the most valuable athlete brand. Dhoni’s smartness and his ability to handle and adapt to changes kept him alive in the market. When an athlete as special as

M S Dhoni stays alive in the market, he is surely to turn a brand. This is exactly what happened. He very

quickly became the most valued brand when he became the sole Indian sportsman to figure on Forbes' list of the world's most valuable athlete brands. Not to forget the list, topped by American basketball player LeBron James, golfer Tiger Woods, tennis stars Roger Federer and Rafael Nadal. Dhoni is ranked fifth with a brand value worth $20 Million last year.

Brand Dhoni started growing bigger, Dhoni endorsed Boost, Gulf Oil, Aircel, Reebok, Titan, etc., and he won numerous awards like Khel Ratna, ICC Cricketer of the year on few occasions and much more. Apart from endorsements Dhoni has been a big man in IPL. Dhoni was bought in the auction during the inaugural IPL by Chennai franchise for whooping $1.5 Million. Dhoni also went a step higher when he was awarded the post of Vice-President of India Cements Ltd. Dhoni has taken the athlete celebrity status to an all new high.

Wha

t nex

t for Brand Dhoni?

AbhIJIT bURLI

India’s fortunes in the World Cup tournament could make or break the Brand Dhoni.

BRAN

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ALUE

BRAND VALUE


Having retired from the longer version of the game, Mahendra Singh Dhoni would not leave any stone unturned in defending the World Cup

that he won for India in the 2011, after an unreasonable gap of 28 years. In doing so, Dhoni may be trying to emulate the one and only Clive Llyod, who took the inaugural and the subsequent World Cups, known then as Prudential Cup, in the years 1975 and 1979. Since then not a single Team won the cup in succession.

Nevertheless, Twenty fifth June is always a Red Letter Day in Indian Cricket history as it was on this day India made its Test debut in 1932 against England and also thirty two years ago in 1983, India, under the quintessential leadership of Kapil Dev Nikhranj, the then lean and lanky lad from the state of Haryana, surprised the entire World of Cricket by snatching the first One Day International (ODI) World Cup from the then mighty West Indies who were on the run up to their hat-trick of ODI Prudential Cup.

The reminiscences of that 1983 Prudential World Cup tournament may be green in the minds of those who are pushing nearly fifty now. It took nearly 28 years, implying seven World Cup events for India to bring back the Cup by the now phenomenal cricketer Mahendra Singh Dhoni, the robust cricket personality from the state of Jharkahand, who has placed India at the top of all the three formats of the game, viz T-20, ODI and Tests. One can never be bored by going through the events that led to the maiden World Cup victory, as it laid strong foundation for very many good and certain controversial

mEmoRaBlE mEmoRiEs oF

MAIDEN WORLD CUP 1983


things to follow later in the Indian cricket scenario. The first ODI World Cup tournament began in

England, quiet unexplainably with an unedifying knock of 36 not out in a 60 overs match by the then iconic batsman Sunil Manohar Gavaskar. Perhaps in a T-20 match prevalent now, a batsman scores this in one over itself, if the bowler is a bit careless in his approach. When it comes to Double Centuries in the ODI, India’s Flag fly high and this is an Exclusive Club for India, with membership restricted to three viz. Sachin Tendulkar, Virendra Sewhag and Rohit Sharma, with Rohit holding the world record of maximum score of 264 runs in ODI, a very difficult, if not an impossible one for anyone to break.

Having pocketed the earlier two World Cup matches in 1975 and 1979, West Indies’ Clive Lloyd’s team had very majestically marched into the finals of 1983 World Cup and took their Cup for granted, not reading the signal of an early hiccup match for them, that too against very much underrated India during the earlier round match, when West Indies lost a world cup match in 1983 for the first time since its inception in 1975.

With lot of hard work of the average all-rounders in the team, India was able to take a berth in the top four teams to compete for the dream cup. The semi-final match for India against England was a treat to watch, as the fight between the bat and the ball gained momentum. At that time, the semi-final against England was more than the anticipated final match for the cup, as England was the pioneer in the cricket and considered to be expert in England weather conditions and India was looked down upon by many in the cricketing world as the underdogs.

Even after Forty years of cricket and T20, IPL, etc., the team England is yet to come out with an International or World Cup winning match performance despite the fact that the game cricket originally belongs to them as a royal game played by gentlemen.

Moreover, Indian players were not seen eye-to eye with players from England, West Indies, Australia, etc., who were always at a higher pedestal. India was deemed third class citizen, considering the Indian team’s performance in the previous two versions in 1975 and 1979 with S Venkataraghavan, as the skipper. It was Kapil’s team that thwarted the West Indies dream run for a hat trick of World Cup in ODIs.

Inida’s unsung players and also the underrated team picked up the right thread and moved up the ladder after that match against Zimbabwe as they rose from the dismal level of 9 runs for 4 wickets, when Kapil Dev entered walking down for batting and further

deteriorated to 17 for 5 to a match winning total of 266 for 8 in the allotted 60 overs, thanks to the resuscitating and fruitful partnerships of Kapil Dev with the Wicket Keeper Syed Kirmani and a few other tail enders. The unbeaten 8th wicket partnership was 126 runs, of which the contribution of Kirmani, a valuable 24 runs, was worth more than what the figure reveals.

India, in that 1983 World Cup, was riding on a stupendous as well as unforgettable the then highest ODI individual score of 175 runs in 138 balls, taking 181 minutes with 17 fours and 6 sixes by the spirited Kapil to snatch an improbable victory from the jaws of defeat against Zimbabwe, though lowly rated, in the league phase in Turnbridge Wells, England. The fact that no TV crew reached the venue to record the match, by itself unequivocally send the message of the least importance given at that time, (due to TV crew strike) for a match featuring India, who did not fare well in the earlier two tournaments. That score of 175 not out superseded the then highest 171 runs in 201 balls, record held by Gleen Turner of New Zealand.

In the final match of 1983 World Cup, when West Indies were going great, after restricting the much underrated India to 183 in 60 overs and when Vivian Richards was on a song on Indian medium pace bowlers, the spirit and enthusiasm of Kapil Dev, who during the lunch break meeting pepped up the Indian players to play their natural but attacking game up to their full potentials and not to worry about the low score to defend, proved its potent and led by example when he took that brilliant 20 yards backward running catch behind him to hold a skier from Vivian Richards of the bowling of Madan Lal. In fact, that catch was the deemed Cup he was catching, in hind sight akin to the comment of Allan Border of Australia for the dropping of similar World Cup for the catch not taken by Jaque Kallis of South Africa in other world cup match, later in India. The turning points for the final match were two, one the wicket of the opener Gorden Greenidge, deceived and clean bowled by a beauty from Baklwinder Singh Sandhu and the other one is the super catch of Kapil to send back the in-form dangerous Vivian Richards, who was on a rampage. Kapil’s athleticism, both physically and mentally, transformed a tough task on hand into a ridiculously easy one in the end.

Mohindar Amarnath, the only player in the history of game to have got “Man of the Match” awards for both semi-final and final matches in a World Cup, played a very stellar role in the crucial last two matches. If the final belonged to Madan and Mohindar, the semi-final belonged to Sandip Patil and Mohindar. Krishnamachari

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My Mobile Payments Ltd (MMPL), one of India's leading mobile payment solutions companies, which owns the MoneyOnMobile (MOM)

brand, has announced the launch of its domestic Mobile Money Order service for customers. This service enables MOM customers instantly to transfer amounts to their friends and loved ones, in an easy, convenient manner. As per RBI regulations, money transfer from mobile wallets can currently be made only to the beneficiary's bank account. The highlight of this service is that it works 24X7, including on national holidays and Sundays. For the consumer, it costs less than half the cost of a postal money order, only much faster. MOM is an application with multi-lingual capability, and the first in India to have a multi-lingual app for a service in this category.

Shashank Joshi, Managing Director, MMPL, said, "It is our c o n t i n u o u s endeavour to add newer services onto our platform that enable our customers to make paperless money transfers, faster and with convenience. We're happy that within a few days of introduction, the MOM Mobile Money Order service has already picked up. We have seen biggest volumes among all mobile wallets in India."

Highlights: Easy 4-step process. 24x7service. Costs less than 50% of postal money order. MOM is an application with multi-lingual capability, and the first in India to have a multi-lingual app for a service in this category

My Mobile Payments Limited (MMPL) is one of India's leading mobile payment solutions company, through its 'MoneyOnMobile' brand; a service aimed at bringing quick, simple and efficient mobile payment solutions to everyone. MoneyOnMobile enables purchase of goods, making easy payment top-ups, payment of utility bills, DTH recharges and more, just with the click of a button. MoneyOnMobile is authorised by the Reserve Bank of India (RBI) to set up semi-closed payment system

in India, which enables registered users to buy good products and services from registered merchants. With MoneyOnMobile, 'Stop at Nothing. Pay for Anything'. For more information, visit www.money-on-mobile.com

MoneyOnMobile offers a vast range of services on real-time basis, irrespective of geography, time and mobile operator of the customer: Mobile Recharge and Postpaid bill payments: We are integrated with all mobile operators in India. DTH Recharge: Recharge your Tata Sky, Dish TV, Sun Direct, Airtel Direct and many others using Money-on-mobile anytime, anywhere. Electricity Bill and Piped Gas bill Payments: No need to stand in the lines any more. Walk in to any of our 200,000 outlets nationwide to pay your bills instantly. Ticket booking: Instantly and conveniently book your rail, bus, air tickets through Money-on-Mobile. Money Transfers and Mobile money order: Instant domestic remittance has never been easier. Use us to transfer money to your loved ones anywhere within India.

MONEY on MOBILEAn answer for instant fund transfer

For the consumer, it costs less than half the cost of a postal money order, only much faster. MOM is an application with multi-lingual capability, and the first in

India to have a multi-lingual app for a service in this category.

Instantly and conveniently book your rail, bus, air

tickets through Money-on-Mobile. Money

Transfers and Mobile money order: Instant domestic remittance has never been easier. Use us to transfer money to your loved ones anywhere within India.

Srikkanth, who was then playing the test as well as ODI matches on the lines of present day IPL and T20 matches, top scored with 38 runs in the low scoring final match and his square leg six at that stage was stunning.

Kapil’s natural ability and agility as well as uninhibited batting displays are unmatched even to-day in the all-rounders category of cricket. However, notwithstanding his all-round significant display of his prowess in bowling (5 for 43 against Australia), batting (175 not out against Zimbabwe) and sharp as well as agile fielding (particularly the back running catch against WI), Kapil bagged the dream cup with the team effort of all the players. Indian cricket picked up momentum as well as popularity besides players commanding premium in the advertisements only after the 1983 performance.

The 1983 World Cup changed the face of Indian Cricket – why face, one can say, the entire body of cricket, in more than one sense, as the Cricket governing body, the Board of Cricket Control of India is making money that is overflowing from the cup as it stemmed out of that World Cup. Even BCCI got due recognition at I C C level only because of that particular cup winning performance by what is known as Kapils’ Devils. Now BCCI is the richest sports body in the world.

BCCI coffers began to fill well and cricket economy in India swelled after the right thinking administrators decided to stage the World Cup matches in 1987 in India, as a follow through of the 1983 Prudential Cup victory.

Top status in I C C was triggered by the 1983 world cup winning team. It may be recalled that the British commentator David Frith in his editorial wrote suggesting India to withdraw from the future World Cups, owing to dismal performance of Indian Cricket team, more particularly in the shorter version of the game, viz. One-Day-Internationals. He had to eat his own words, both literally and figuratively. Irony of the thing is England, though played a few final world cup matches, never won a World Cup during the last 40 years, despite the fact that it is only in England, the game of cricket was initiated, rather professionally.

It is a matter of fact that the then phenomenon player Sunil Gavaskar’s contribution in the first three World Cup matches was not that much to write anything about. The confident Kapil had the full support of all-rounders like Roger Binny, Sandip Patel, Madan Lal, Kirti Azad, who were average players but well committed to the game of cricket. Fruits of Kapil Dev’s pioneering efforts are now being reaped and enjoyed by very many people, both monetarily and otherwise, in all the business related aspects of cricket.

Now Mahendra Singh Dhoni, the other World Cup skipper for India, needs to network the young players like Virat Kholi, Suresh Raina, Ravichandran Ashwin, Ravindra Jadeja, Shikar Dhawan, Rohit Sharma, Ajinkya Rahane, Ambati Rayadu, etc to defend the World Cup in the year 2015. Considering the trend as could be noticed in the Championship Cup performance in 2013, where they defeated England in England in the thrilling final, though truncated to T 20 affair, same is not a tall order, provided the ground work is done, without bothering about the ground in which the matches would be played over. It can be said that in 2013 ICC Championship Trophy, England – like West Indies and Zimbabwe in 1983 matches against India, snatched defeat from the Jaws of Victory.

After Australia, India is the only country that besides two World Cups in ODI (one 60 overs and one 50 overs) bagged both World Cup and Championship Trophy simultaneously. West Indies, another past giant did not recover from their shock defeat at the hands of India in the final of 1983 World Cup as they did not bag any international cup since then. England and South Africa are yet to find their place as a world champion, despite having reached finals a couple of times. Sri Lanka and Pakistan, the one time World Cup holders, are now a force to reckon with only when the day belongs to them in entirety. New Zealand is yet to realize its full potentials.

M S Dhoni has taken the credit for having arrested World Cup drought that eluded Indian cricket for nearly 28 years. With 2007 World Cup in T 20, to begin with, followed by World Cup in ODI in 2011 and Numero Uno status for a brief period of less than two years and 2013 ICC Championship Trophy, India’s flag flies high in the World of Cricket.

It now appears that the performance of Indian players despite the absence of cricket greats like Sachin Tendulkar, Rahul Dravid, Virendra Sewhag, V V S Laxman, yuvraj Singh, etc proved about the immense potentiality of latent talent and bench strength that India possess. If the 2011 World Cup victory was meant for the Cricket Legend Sachin Tendulkar, 2015 World Cup performance would, undoubtedly, be remembered for the India’s successful Captain Mahendra Singh Dhoni. Not for nothing, IPL has taken routes in India, thanks to the popularity of the cricket amongst Indian populace coupled with some good cricket played by Indians since 1983. What a transformation by the once underdogs, commented by the Englishmen, leaving behind them far away. Deservingly, India is poised to host World Cup of T20 in 2016, Test Championship in 2021 and ODI in 2023.

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Most of us would have been the victim of a fraud played on us at one or the other time, however minor or trivial it may be. Similarly, corporate

/ business entities and more specifically financial institutions like banks are also the target of fraudsters for the obvious reason that they deal in hot money on which establishing ownership on the face of it, may be a difficult proposition. Fraud is considered as a white-collar crime. In fact, FRAUD can be treated as the acronym of Financial Risk Around Unguarded Deal. We shall deal with the same in two chapters, one focusing on Finance in general and the other on Banking, in particular.

Part – I - FINANCE The financial

sector reforms, reflected in L i b e r a l i s a t i o n , Privatisation and G l o b a l i s a t i o n (LPG) facilitates unhindered mobility of products, services and consequently the funds. Thus, in the financial sector there is an urgent need to put in place foolproof systems and procedures, governance and professional ethics so as to ensure smooth functioning of business entities that are prone to fraud. The engine of change is the evolution of the market economy abetted by unimaginable advances in technology, communication, uncontainable flow of information, capital and commerce across the globe. Added to all these, the greed is the real culprit. Apart from the tendency to become rich overnight, living

standards practiced being beyond the disclosed & known means, indulgence in activities to raise quick money, following short-cut measures to cut-short the normal procedure to make fast buck, favourable environment and opportunities in the office set up, etc., are some of the elements which contribute to higher probability of committing fraud.

The usual method employed to engineer a fraud on an entity is that the fraudster studies the procedures and processes adopted for putting financial and funds

transactions, ascertain the loopholes in the systems and then cleverly exploits it to his or her advantage in such a way that it does not come to light immediately. However, generally it is only a question of time before it is detected and more so in the case of banks where records are created in more than one place.

Maladies in any organization are more due to non-adherence of internal control mechanism rather than the absence of it, as internal control systems play an important role. When a fraud is detected, punishment for the culprit and the reward for the detector should go hand in hand. Any sort of delay is likely to have undesirable effect. Similar to the Risk Rating, Credit Rating system in vogue in the financial market and Corporate Governance Rating for best practices and the days of developing a Vigilance Rating system are not far off. This involves monitoring

the business actions and creation of a related database so as to use it as a tool to measure the frauds to rate the company on Vigilance mechanism in place.

FINANCIAL FRAUD CASESAudit envisages to reveal the monetary value of the

fraud, within the time horizon in which the fraud was committed and the persons involved in that financial impropriety. Some of the practical cases that surfaced in the recent past and are still in public memory are touched upon in the following paragraphs.In 2006, a major scam was unearthed in the functioning

of share allotment process and in this regard, Depositories, Depository Participants and nearly two dozen market operators, who allegedly played a role in the creation and usage of large number of fictitious / hypothetically opened demat accounts with an ulterior motive of cornering share allotment in the Initial Public Offer for the retail investors. Failure of the Operational Risk management system in all these players functions led to the scam. The depositories appear to have failed to exercise the requisite oversight in adhering to the Know your Customer (KyC) norms in the functioning of depository participants. It is a clear case of quality becoming victim of quantity and large volume transactions. The undue profit gained by the allottee of shares was expunged as the gainers were asked to return the illegal profit, accrued to them, through the process of disgorgement.

In the later part of 2008, M/s Lehman Brothers, the largest Investment Banker filed for bankruptcy, the venerable Merrill Lynch was taken over by Bank of America and the American Insurance Group (AIG) the largest insurer was bailed out by the US Federal Reserve.

In 2000, Enron’s fraud was carried out through labyrinth of off-balance sheet deals, diversion to unrelated non-core activities, divisional accounting gimmicks, through creative financial accounting practices. Ironically, Enron actually uprooted the audit firm, instead of the later having a check on the former. Though its derivative related asset yields grew by good numbers, liabilities also piled up rapidly. In order to hide bad investment in derivatives, as well as its poorly performing assets in energy business, it created multiple Special Purpose Vehicles (SPVs).

The impact of non-adherence to internal controls and procedures could be disastrous, as can be noticed from the incident that had taken place in Societe Generale SA, which was the second largest bank in France, by market value, was considered as a leader

in derivatives and regarded as one having good Risk Management systems. A trader, at the futures desk, had taken massive fraudulent directional positions, beyond his limited and permitted authority. The unauthorized bets on stock –index futures by the trader caused largest trading loss in banking history.

Sub-Prime Loans are the credit facility given to the borrowers who, in the normal course, do not qualify for loan with market interest rates because of problems in their credit history and also the weak financial status. It’s risky for the lender because borrowers usually have lower incomes and a poor record for paying debt, increasing the credit default. It is also risky for borrowers for the reason that it further increases their likelihood of default.

Borrowers who have a poor credit history looking to buy a house and are prepared to pay to compensate the high risk, a mortgage rate typically 2% higher than rates charged to people with good credit, approached mortgage brokers or conversely get brokers call them. Big banks and wholesale lenders bought the debt, repackaged them and sold them to Wall Street firms, who further repackaged these loans in Mortgage Backed Securities (MBS) and Collateralized Debt Obligations (CDO), with the aide of Rating Agencies. These structured and financially engineered products very often carry high rates of return and are sold to pension funds, hedge funds and institutions.

The Sub-Prime crisis triggered financial turmoil because of the concept “Originate-Distribute - Forget” model. Sub-prime crises have ballooned into a financial crisis because it impacts the Financial Institutions that have leveraged exposures to sub-prime contracts. Hence, the focus of reform should be on Financial Institutions and also the Regulatory Architecture.

The promoter of Satyam group dropped a bombshell in January 2009, when he confessed of having committing fraud of more than Rs 7,000 cr., through falsification of sales invoices coupled with revenue, bank statements / confirmation coupled with Fixed Deposits Receipts value and bank balances, etc., in an organised manner for long period of nearly 7 years or so and gave the unsuspecting investors, employees, bankers, Regulators and Government a real shock.

The irony is that the promoter bagged Golden Peacock award for Excellence in Corporate Governance and famously wrote in his letter "It was like riding a tiger, not knowing how to get off without being eaten". That way he took the system for a jolly ride, in the wrong

FINANCIAL AUDIT and FRAUDS


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India's leading equity research company, EquityPandit, which specializes in stock market

technical research, has launched the biggest offer of 2015. With the Biggest Offer Of 2015 launched recently customers can now subscribe to any of the EquityPandit annual subscription package at just Rs.15,000, which normally costs around Rs.60,000, according to a press release of the company.

"Such an offer comes once in a year that provides opportunity to retail investors and traders to get 85-95% accurate and crisp research throughout the year at nominal prices that generate excellent returns," said Abhishek Parakh, CEO and Managing Director of EquityPandit. "EquityPandit would soon launch its mobile app in the next few months that would provide fastest news updates and market predictions based on technical analysis to Indian investors and traders," added Abhishek Parakh.

"EquityPandit is also in the process of launching 'EquityPandit Knowledge Series' for its subscribers, wherein investors and traders would be able to learn basic and advanced technical analysis with simulations that would help EquityPandit's subscribers' trade successfully in the Indian Stock Market," added Darpan Shah, Research Head at EquityPandit. EquityPandit was established in year 2005 and today it is India's leading equity research company. Today, EquityPandit has clients in 32 countries, worldwide, which enjoy huge profits in association with EquityPandit. EquityPandit was among the first few Indian entities

to bring equity research based on technical analysis to the Internet in India. EquityPandit is an ISO 9001:2008 Internationally Certified Company.

EquityPandit, India's Leading Equity Research Company, which was recently acquired by Capiflex Group, has developed a mathematical model to trade in stock market with 91%

accuracy. This mathematical model is combination of over 30 indicators and 14 parameters, which works in tandem. "EquityPandit R&D Team was working on Equity Trading Mathematical Model for over last 3 years and now it is completed. Currently, it has been back tested for last 13 years since 2001 which contains all market conditions including bull market, recession, elections, etc. It has provided 91% accurate results consistently throughout the time frame. This mathematical model is a self learning model, which would improve as it gets more data going ahead and we would strive to bring its accuracy to 97-98%." said Abhishek Parakh, Group CEO and Managing Director of Capiflex.

Abhishek Parakh told that development of such a model with around 90% accuracy would bring reform in this sector and it would be very helpful for traders and investors, who would get crisp and accurate research for their trading or investment activity. Traders and Investors would get more organized way of trading or investments recommendations.

EquityPandit would soon

launch its mobile app in the next

few months that would

provide fastest news updates

and market predictions

based on technical

analysis to Indian investors

and traders. EquityPandit

was established in year 2005

and today it is India's leading

equity research company. Today,

EquityPandit has clients in 32 countries,

worldwide, which enjoy

huge profits in association with

EquityPandit. EquityPandit

was among the first few Indian

entities to bring equity research

based on technical analysis to the Internet in

India.

EquityPandit Launches biggest offer of 2015

way and reported to have perpetrated the fraud, in collusion with a few employees in confidence.

Recently in 2014, United Commodities Exchange (UEX), aged less than two years, to be facing a very uncertain future owing to the reported siphoning of the Corpus Fund and quitting of most of the employees of the organization. These and surfacing of serious financial irregularities have resulted in commissioning of Forensic Audit exercise on the activities of the Exchange. After India Commodity Exchange Ltd closing its operations in January 14, UEX seems to be second wicket falling in the field of Commodities Exchange. At present, NCDWX, MCX and NMCE are the other active commodities exchanges operating in India. These are overseen and supervised by Future Market Commission (FMC). Anything in excess is not good enough for long and

may turn out to be harmful. World.com, Enron, AIG, Merrill Lynch, Lehman Bros, Demat Scam, Commodity Exchange episode, etc. are victims of excesses of a certain thing. Fraud often comes to light either by accident or through voluntary confessions when the situation goes out of control for the fraudster or tip-offs through employees, outsiders, or other haphazard means. Here only, the skill of Forensic Audit comes into play.

They have a higher rate of success because they are engaged for a specific purpose and bring along with them rich experience of dealing with similar cases. To handle such a complex situation, an accountant with specialists’ skills, knowledge and training is needed to not only smell the rat well in advance but also substantiate the unraveling of a scam before it takes immense proportion. High rate of white-collar crimes resulting from cross border financial transaction and opening up of economy through the doors of LPG coupled with the belief that the relevant law enforcement agencies do not have the requisite expertise, are to be probed to uncover various types of fraudulences. This would pave the way leading to the evolution of viewing from Forensic Lens in a big way.

The increasing number of companies and the complexities of business transactions that are mostly done in electronic form to ensure accuracy and speed putting the detection mechanism under the carpet, has necessitated in the need for Forensic Lens, thereby giving an impetus to the field of forensic accounting / audit, which is set to grow and develop further.

In business entity, fraud preventive measure is not the ultimatum and destination, for it should be a continuous and dynamic process as well as journey. Business

environment is changing at an extremely fast pace and the rate of change is continuing to accelerate. Vigilance and Fraud are perhaps made for each other partners. But, whoever walks faster makes the difference. In the case of frauds in the financial sector, there is no limit as to how bad things can get. Nevertheless, every incident of fraud is a crisis situation that provides an opportunity to find innovative ways of handling it now besides preventing it later.

In the matter of preventing fraud, internal audit has an advantage over the external audit in the sense that it has an understanding of how the system works so as to initiate quick steps. Internal audit would be privy to the dynamics of decision-making process in commercial organization. If the internal audit team is vigilant, it would be able to bring in the requisite transparency and through this, proper accountability.

In the past two decades or so, as a fall out of LPG, India has seen a number of scams relating to financial deal in general and capital market in particular as could be noticed from the alleged deals of Harshad Mehta, M S Shoes, CRB, Ketan Parikh, Jignesh Shah, Rajat Gupta, Raj Rajrathnam, etc. As everyone knows, owing to lack of proper governance, financial system has been used as a conduit pipes for the unhealthy activities. Consequently, these irregularities in securities and banking transactions speak on both financial and moral values.

AUDIT ASSURANCE Though it has been the general perception that the

detection of fraud or white collar crime or for that matter financial irregularity is part of the accounting or audit function, the fact is that auditors normally carry out their audit assignment on surface value or position on a particular date, within the framework of a company’s corporate policies. The procedure adopted by the auditor conforms to Generally Accepted Accounting Principles (GAAP) and the requirements of regulators / supervisors.

As against the expectation of auditors detecting all the financial wrong doings and misstatements, what is happening is just a compliance audit. Hence there should be an Assurance Audit. That is somebody should assure and certify that no financial wrong - doing has happened. This never happens in practice, as the scope of statutory audit is basically a compliance audit and the exercise does not normally uncover or detect frauds unless it is incidental to the audit exercises such as statutory audit, concurrent audit, internal audit, stock audit, management audit, cost audit, Computer audit, Information System audit, etc., as a by-product.

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Rising at alarming rate, the number of cyber crimes in India may touch a humungous figure of 3, 00,000 in 2015, almost double the level of last year causing

havoc in the financial space, security establishment and social fabric, an Assocham-Mahindra SSG study warned. While releasing the joint study on “Cyber and Network Security Framework” Mr. D.S Rawat, Secretary General Assocham said, “What is causing even more concern is that the origin of these crimes is widely based abroad in countries including China, Pakistan, Bangladesh and Algeria among others”.

As per the study findings, during 2011, 2012, 2013 and 2014 years, a total number of cyber crimes registered were 13,301, 22,060 71,780 and 62,189 (till May). Currently, the cyber crimes in India is nearly around 1,49,254 and may likely to cross the 3,00,000 by 2015 growing at compounded annual growth rate (CAGR) of about 107 per cent. As per the findings, every month nearly 12,456 cases registered in India. Phishing attacks of online banking accounts or cloning of ATM/Debit cards are common occurrences. The increasing use of mobile/smartphones/tablets for online banking/financial transactions has also increased the vulnerabilities to a great extent. The maximum offenders came from the 18-30 age group, adds the report.

These attacks have been observed to be originating from the cyber space of a number of countries including the US, Europe, Brazil, Turkey, china, Pakistan, Bangladesh, Algeria and the UAE highlighted the ASSOCHAM-Mahindra SSG joint study. With increasing use of information technology (IT) enabled services such as e-governance, online business and electronic transactions protection of personal and sensitive data have assumed paramount importance. “The economic growth of any nation and its security whether internal or external and competiveness depends on how well is its cyberspace secured and protected”, said Mr. Rawat.

The Assocham report further said, mobile frauds are an area of concern for companies as well as 35-40% of

financial transactions are done via mobile devices and this is expected to grow to 55-60% by 2015, adds the study. Growing internet penetration and rising popularity of online banking have made India a favourite among the cybercriminals, who target online financial transactions using malware and India ranks third after Japan and US in the tally of countries most affected by online banking malware during the year of 2014, highlighted the Assocham- Mahindra SSG study.

Increasing smartphone sales and usage in India, the number of people falling victim to such crimes is also on the rise. The number of cyber crime victims in India (2012) was 46 million people against the global average of 560 million. During the years 2011, 2012, 2013 and 2014 (till May), a total number of 21,699, 27,605, 28,481, 48,174 Indian websites were hacked by various hacker group spread across worldwide and likely to touch 85,000 by 2015, adds the study. There are many ways that sensitive information is hacked as a result of cell phone usage. The most common are due to installation of uncertified applications, said Mr. Rawat. The smartphone users rarely check for security certificates and download apps (games, music and other software) from third party or unsecured sites. Mobile banking apps store data such as PIN, account number on the phone. So, there is a risk that

if the phone is hacked or stolen, then the information is compromised, points out the study.

Credit and debit card fraud cases top the chart of cybercrimes. There has been a six fold increase in such cases over the past three years. According to the data, around 2277 complaints of online banking/credit/debit card fraud have been reported this year, followed by 191 Facebook-related complaints (morphed pictures/cyber stalking/cyber bullying). Other major cyber complaints were cheating through mobile (61), hacking of e-mail

ID (59), abusive/offensive/obscene calls and SMS (55), and others. As per the study, Andhra

Pradesh, Karnataka and Maharashtra have occupied the top 3 positions

when it comes to cyber crimes registered under the new IT

Act in India. Interestingly, these three states

together contribute more than 70 per cent to India's revenue from IT and IT related industries.

According to the National Crime Records Bureau

(NCRB), in 2013, 681 cyber crime related cases

have been registered in Maharashtra, which has

seen a 44.6 per cent rise in cyber crimes when compared to

2012. Andhra Pradesh with 635 cases registered in 2013 has also seen a 48 per

cent rise when compared to 2012. Karnataka with 513 cases registered in 2013 has seen a 24.5 per cent rise when compared to 2012. Uttar Pradesh with 372 cases registered in 2013 is in the fourth place. It has seen a huge rise of 81.5 per cent in just one year. Kerala is in the 5th place with 349 cases registered in 2013. Among the bigger states Tamil Nadu and Bihar have very few cyber crime related cases. Just 54 cases have been registered in Tamil Nadu and just 23 cases have been registered in Bihar in 2013. Gujarat and Odisha have also registered just 61 and 63 cases respectively in 2013. Among the Union

Territories, the national capital Delhi has registered 131 cyber crime related cases. It has seen a rise of 72.4 per cent when compared to 2012.

Dos and Don’ts: Avoid online banking, shopping, entering credit card details, etc if the network is not properly secured. Check your online account frequently and make sure all listed transactions are valid. Be extremely wary of e-mails asking for confidential information. Never ever click on a link given in a spam e-mail. Always delete spam e-mails immediately and empty the trash box to prevent clicking on the same link accidentally. Beware of lotteries that charge a fee prior to delivery of your prize. While using a credit card for making payments online, check if the website is secure as the CVV will also be required for the payment. Notify your bank/credit card issuer if you do not receive the monthly credit card statement on time. If a credit card is misplaced or lost, get it cancelled immediately. Do not respond to lottery messages or call on the numbers provided in the text messages. Do not provide photocopies of both sides of the credit card to anyone. The card verification value (CVV), which is required for online transactions, is printed on the reverse. Anyone can use the card for online purchases if they get that information. Do not click on links in e-mails seeking details of your account, they could be phishing e-mails from fraudsters. Most reputed companies will ask you to visit their website directly. Do not give any information to people seeking credit card details over the phone.

ASSOCHAM-MahindraSSGjointstudy

CyBER CRIMEs in India is likely to cross 3 lakh by 2015

As per the study, Andhra Pradesh, Karnataka and Maharashtra have occupied the top 3 positions when it comes to cyber crimes registered under the new IT Act in India. Interestingly, these three states together contribute more than 70 per cent to India's revenue from IT and IT related industries. These attacks have been observed to be originating from the cyber space of a number of countries including the US, Europe, Brazil, Turkey, china, Pakistan, Bangladesh, Algeria and the UAE

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Babasaheb Bhimrao Ambedkar University (BBAU), Lucknow is preparing to become the first

university in the country to go paperless by switching over to online work. "We are going to be the first university in the country to go paperless. We are switching over to online work for most of the administrative and academic purposes," according to this central university's Vice Chancellor R C Sobti. He said the work in this direction has been initiated and it would be completed within two years. Now students will not have to face hassles in getting their migration and provisional certificates and mark sheets would be made available online. Biometric attendance and administrative work would also be started online, he said. This would also bring down the use of paper for academic purposes by almost 50 per cent, he said.

About the financial aspect for the work, the VC said the university has embarked on the project with its own resources and UGC will also be helping it. "We have started work from our own resources. UGC will

also help us. Finance is not a problem once you are determined," he said. The availability of e-contents for students will help them and would also raise the standard of education, he said, adding various forms filled by students and their subsequent approval will be available online on the university's website. About classroom teaching, the VC said it would be without chalk and

blackboard. "Smart classrooms are being developed and the medium of lectures would be e-content and audio-visual teaching. Also, Wi-Fi facility would be provided on the campus," he said. The new system will also help parents to keep tab on activities of their wards as details of students will be sent to them on monthly basis. With biometric attendance for teachers, students and employees in place, their details will be available online and both teachers and employees can see their attendance through a login ID. For students having any grievance, there would be a portal on which they would be given appointment with the official or teacher concerned through e-mail, the VC added.

r C SOBtIVICE ChaNCEllOr.

now students will not have to face hassles in getting their migration and provisional certificates and mark sheets would be made available online. Biometric attendance and administrative work would also be started online, he said. This would also bring down the use of paper for academic purposes by almost 50 per cent.

Babasaheb Bhimrao Ambedkar University

First university to go paperlessInvestors are generally optimistic

on the allotment of shares for which they have applied for an

IPO. If the IPO comes out successful, the investors get their dream of getting shares fulfilled. On the otherhand if the issue is oversubscibed, the hopes of investors get shattered, because all the investors will not get the shares. It is obvious for them to feel disheartened.

Recently National Collateral Management Services limited (NCML) miserably failed to attract the investorts. Those who were expecting allotment of shares came to know that the issue was withdrawn. NCML could not get even 50% of anticipated amount. So the issue was withdrawn. During second half of January 2015 two companies namely Karnavati Finance Limited and Manjushree Technopack Ltd entered in capital market. No IPO is slated for February, it is stated.

A few investors feel that equity market is volatile and better to opt Non-Converible Debentures (NCDs) as such debentures pay regular amount as fixed interest/ dividend. But recent IFCI NCD issue could get only 14% response in first full week of subscription indicating diminishing preference for IPO post debacle of Monte Carlo IPO post listing. yet, we continue to witness entry of SME IPOs. Over the past four years, due to poor sentiment and secondary market volatility, there were very few initial public offerings (IPO). Now, although the stock markets have been hitting new highs, there is still no sign of any IPOs. In fact, during the previous calendar year only one IPO has seen light in the first five months. Analysts feel that the investors are not showing interest on IPOs

Initial Public Offer (IPO), is the first sale of shares by the privately owned company to the public. The companies going public raises funds through IPO's for working capital, debt repayment, acquisitions, and a host of other uses. Investor can apply for IPO Stocks by filling an IPO Application Form. These forms are usually available with stock brokers for free. Investor can also apply for IPO Stocks online through Online Stock

Brokers like ICICI bank, Share Khan, and Reliance Money.

In 2013 there was a mobilisation of just Rs1,619 crore through IPOs, which was termed as the lowest over the past 12 years, the previous low being in 2001 when only Rs296 crore had been raised through IPOs. The highest-ever mobilisation through IPOs was as recently as 2010 at Rs. 37,535 crore. It may be recalled that during 2013, there were just three main-board IPOs during the entire year

It is high time to recall that between 2011 to June 2014, almost 109 companies, including Ambiance, BPTP, Glenmark Generics, Lavasa Corporation, Joyalukkas, Reid & Taylor, Intas Pharma, Rashtriya Ispat Nigam and IFCI Factors have called off their IPOs. That too, when all of these companies had received approvals from market regulator SEBI. Even then

these companies could not open their IPOs within the one year validity period from the date of SEBI approval. These 109 IPOs were valued at Rs52, 000 crore. During 2013, there were just three main-board IPOs during the entire year: Just Dial: Rs919 crore, Repco Home Finance: Rs270 crore and V-Mart Retail: Rs94 crore (in 2012, there were 11 IPOs worth Rs6, 835 crore).

Investors are interested to invest in Rights issues of the companies in which they are holding shares as they know well about the performance of such companies. But such issues do not come as and when needed by the investors. Investment on gold has become unpredictable. One investor who is in high position in a PSU said that he had invested about Rs. 10 lakh on gold when the gold price was about Rs.3300 per gram. He claims that gold rate never touched again and he faced a loss of about Rs. 1000 per gram.

The risk is haunting the investment scenario. An investor is to be more cautious before investing rather that burning his fingers later.

S.S.N.SAStRy

Are IPOs losing ground?It is high time to recall that between 2011 to June 2014, almost 109 companies, including

Ambiance, BPTP, Glenmark Generics, Lavasa Corporation, Joyalukkas, reid &

Taylor, Intas Pharma, rashtriya Ispat nigam and IFCI Factors have called off their IPOs.

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The government is looking at taking the legislative route as early as next month to finalise the creation of proposed Postal Bank of India (PBI).

It will move the Reserve Bank of India (RBI) seeking to re-consider its original application for a universal bank, according to first post. The creation of a Post Bank would be indeed much bigger a contribution from the Narendra Modi government to India’s poor than the hurried bank accounts opening drive that is the Jan Dhan yojana. That is because India Post has been a trusted name in every Indian household for decades and no entity can claim the kind of reach and local knowledge the department enjoys in far-flung areas of the country where financial inclusion initiatives are actually needed. But, one point remains unclear. India Post has so far stuck to its demand for universal banking licence, which contradicts its stated focus of financial inclusion. Universal banking, by definition, is the permission for a bank to participate in all kinds of banking activities including corporate, retail

and even investment banking activities.If indeed PBI wants to become a full service bank and

engage in corporate lending, that would, somewhat, be the creation of yet another public sector bank -- a puppet of the government to roll out its populist measures and feed corporate greed. Such a move would also contradict the spirit of recommendations by the task force headed by TSR Subramanian, which proposed that PBI should be entirely focused on promoting financial inclusion, by extending small loans and deposit services to the poor and unbanked segments of the country. "The new bank would be unlike other public and private sector banks insofar as it is primarily oriented towards achieving the national and social objective of providing financial inclusion...it will be venturing into largely unbanked and under-banked areas and making a large number of loans to poor," the report said.

Further, the Subramanian panel laid down strict rules to prevent any risks to the proposed bank arising out of offering high value loans.

"Robust system protocols and standard operating procedures would have to be put in place to manage these risks effectively. For example, an upper limit of say Rs 1 lakh could be placed on the credit, which would be extended by the PBI to a particular individual or even family, and a second loan would not be sanctioned unless the first loan has been repaid," the report says.

What this would effectively mean is that the PBI will have to operate purely as a pan-India rural bank offering small-ticket loans to the yet-to-be-banked segments, which is somewhat the idea of the proposed small finance bank, being planned to set up by the central bank.

For this, it doesn’t need a universal banking license. The government can set up a Post bank for financial inclusion through appropriate legislation like it did in the case of Mahila Bank. As First Post noted earlier, India Post's entry into banking can be a game changer in rural banking given its massive reach in the far-flung areas of the country and local knowledge. The department has already commenced the process to link all its branches through technology, besides setting up ATMs across the country.

Of its total network of 1, 55,000, about 1, 39,040 are in rural areas. Going by a 2011 estimate of the postal department, about 6,000 people are covered on average by post-offices in rural areas and about 24,000 in urban

areas. Through its various saving schemes, the postal department handles deposits to the tune of Rs 6, 00,000 crore. The ideal strategy for the proposed PBI would be for it to operate on the lines of proposed small finance banks as envisaged by the RBI and strictly stick to catering to small customers. Being a universal bank and engaging in multiple businesses is unlikely to serve any greater good to the targeted customer segment.

India Post shouldn't venture into corporate loans as this will only help the creation of yet another state-run bank vulnerable to political influence and victim to wily promoters. Already, over 90 percent of the total bad loans in the banking industry, about Rs 2.7 lakh

crore, is on the books of state-run banks. So is a good chunk of the estimated Rs 6 lakh crore restructured loans in the banking system.

We have enough evidence in the past to prove that public banks can easily be targeted for misuse and corruption by the corporate-banker-politician nexus and thus be burdened with huge additions of stressed assets. The creation of one more such entity wouldn't do any good for the banking system, where about 14 percent of loans are already under the stressed asset category. Giving large value corporate loans shouldn't be the focus of PBI for greater good of India’s millions of unbanked citizens.

Opinions differ on POst bank

Being a universal bank and engaging in multiple businesses is unlikely to serve any greater good to the targeted customer segment. India Post shouldn't venture into corporate loans as this will only help the creation of yet another state-run bank vulnerable to political influence and victim to wily promotersThe creation of a Post Bank would be indeed much bigger a contribution from the Narendra Modi government to India’s poor than the hurried bank accounts opening drive that is the Jan Dhan Yojana.

For long, we are accustomed to a pay package of Basic Pay, D.A. And H.R.A. With the emergence of Information

Technology and it's all-pervading presence( like God),these terms have become redundant. Employee retention rather than recruitment has become a more critical issue due to high attrition level in most of the IT Companies.

New concepts like Variable Pay,Performance linked compensation,Cost to Company have emerged. Employees who can 'deliver' are always in great demand. Besides,there is a threat of 'poaching' the best talent from the competitor's den. All these have led the employers to devising new methods of appeasing the best talent to retain them. Here are the few innovative methods and practices.A. Paying salary in a foreign currency: some .Companies pay in US$ which

gives the employees the benefit of currency appreciation and also to use it when abroad.

B. Flexible Working Hours: 'work when you can' and 'work from home' are catching up. This is a win-win situation where the work gets done and the employees save on commuting time and expenses on fuel.

C. Sponsoring Club Membership in Reputed Clubs. Ordinarily such membership is hard to get. In one of the famous Clubs in Bengaluru, the waiting period is 15 years! Companies get Corporate Membership which is used by the Employees with their family and friends. While this adds to the status the bill is also lighter.

D. Sponsoring foreign travels with family to see places.E. Sponsoring for professional courses in Foreign Universities like

Stanford,Harvard to update the knowledge.F. Allotting Stock Options by granting the equity of the Company at a

discount but with a lock-in-period which ultimately gives handsome returns due to appreciation.

G. Profit Sharing without being a promoter. If the employee can contribute to the profits of the Company, he gets a share of profit(sometimes called a commission).

H. Reimbursement of Health Insurance Premia and also Treatment charges at Hospitals for self and dependants.

I. Reimbursing Educational expenses of children.J. Including the Employee in 'Chairman's Club' and to participate in crucial

meetings with the Top Management which enhances the Self-esteem of the employee.

K. Subscription to Magazines ,Peridicals and News Papers.The list is growing through innovative approaches by the Managements

in order to retain the best talent. In the present scenario where a Crore of Rupees compensation has become common place, these methods not only assume relevance but also become inevitable.

NOt By RUPEE ALONE ChangingapproachesinEmployeeCompensation

M.b. bALASUMbRAMANYAM-DGM (Rtd.) State bank of Mysore

-Visiting Faculty in [email protected]

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There is a growing demand from

the industry, especially the

sME segment for crude mini contracts, which

would help them hedge

their energy price exposures. The crude

oil mini contracts will facilitate price

discovery and price risk management for the sMEs, small

traders, manufacturers and physical market participants especially those from industries such as petro chemical, glass manufacturing, textile, heat treatment, plastic processing, etc., which have a fairly large consumption of crude oil by-products. Mini contract in crude oil will suit the hedging needs of small market players, who find it difficult to meet the high margin requirements of contracts with larger lot sizes. MCX’s existing mini contracts in Gold, silver, Aluminum, Copper, nickel, Lead and Zinc are very popular with the hedgers, especially the sMEs.

contracts will facilitate price discovery and price risk management for the SMEs, small traders, manufacturers and physical market participants especially those from industries such as petro chemical, glass manufacturing, textile, heat treatment, plastic processing, etc., which have a fairly large consumption of crude oil by-products.

On the launch of crude oil mini futures, Mr. P. K. Singhal, Jt. Managing Director MCX said, “MCX’s mini contract in crude oil has been launched to cater to the felt needs of the physical market participants, especially the SMEs. With the launch of this contract, they will be able to size their positions better and control their price risks efficiently. Moreover, given the very large number of crude oil derivatives such as Bitumen, Furnace Oil, Asphalt, Naphtha etc., which are completely de-regulated, have their prices in sync with the crude oil prices. These industries can also use this contract to hedge their risks effectively.”

Increasing volatility in the crude oil prices has made it imperative for the SMEs to look at price risk management options. They prefer small contract of 10 barrel viś-a-viś the existing 100 barrel contract as its sheer size necessitates higher leverage (1 barrel approximately equals 159 litres). On this development, Mr. Suresh Kumar

Jain, General Secretary, Mysore Industries Association said, “We welcome the launch of crude mini futures contract by MCX. The SMEs and the physical market participants will highly benefit from this contract, as it will be both beneficial and fruitful for them to hedge as per their

requirements.” Mr. Jayant Manglik, President, Religare Securities, said, “Mini contract in crude oil will suit the hedging needs of small market players, who find it difficult to meet the high margin requirements of contracts with larger lot sizes.” MCX’s existing mini contracts in Gold, Silver, Aluminum, Copper, Nickel, Lead and Zinc are very popular with the hedgers, especially the SMEs.

Having commenced operations on November 10, 2003, Multi Commodity Exchange of India Limited (MCX) is India’s first listed, national-level, electronic, commodity futures exchange with permanent recognition from the Government of India. MCX offers the benefits of fair price discovery and price risk management to the Indian commodity market ecosystem. Various commodities across segments are traded on MCX. These include bullion, energy, metals and agri commodities. The exchange has forged strategic alliances with various Indian and International commodity exchanges and business associations.

Multi Commodity Exchange of India Ltd (MCX), commenced futures trading in crude oil mini.

The commodity markets regulator, Forward Markets Commission (FMC), has given the Exchange approval to offer trading in crude oil mini January 2015, February 2015, March 2015, April 2015, May 2015 and June 2015 contracts. The contract specification of crude oil mini is similar to the existing crude oil contract on MCX. The lot size of Crude oil mini is 10 barrels, quotes MCX in a note.

With crude oil consumption as well as its price volatility rising, lack of effective risk management such as crude oil futures can hurt the earnings of entities linked directly or indirectly with the commodity. Moreover, MCX crude oil futures are traded in Indian Rupee; thus, mitigating the currency risk of the trade circuit. Therefore, by hedging on the MCX platform, the crude oil value chain participants can avoid risks encountered while hedging on international exchanges platforms.

There is a growing demand from the industry, especially the SME segment for crude mini contracts, which would help them hedge their energy price exposures. The crude oil mini

MCX Commences Futures Trading in Crude Mini

FUTU

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1. Thinking Globally .

2. Anticipating Opportunity.

3. CreatingasharedVision.

4. DevelopingandEmpoweringPeople.

5. Appreciating Culture Diversity.

6. BuildingTeam-workandPartnerships.

7. WelcomingandEmbracingChanges.

8. InvitingandShowingTechnologicalSavvy.

9. EncouragingconstructiveIdeas,Irrespectiveofits source.

10. Demonstrating Personal commitment and Mastery.

11. EnsureCustomerSatisfaction.

12. Achieving Competitive Advantage.

13. AddValue,GivevalueandGetvalue.

14. Sharingleadershipresponsibilities.

15. Think Positively.

Essential Ingredients Of Able Leadership


Ever since the publication of Daniel Goleman’s first book on the topic

in 1995, Emotional Intelligence has become one of the hottest buzzwords in the corporate world. For instance, when the Harvard Business Review published an article on Emotional Intelligence, it attracted a higher percentage of readers than any other article published in that periodical in the last 40 years. When the CEO of Johnson & Johnson read that article, he was so impressed that he had copies sent out to the 400 top executives in the company worldwide.

Emotional Intelligence Quotient is defined as a set of competencies demonstrating the ability one has to recognize his or her behaviors, moods, and impulses, and to manage them best according to the situation. Typically, "emotional intelligence" is considered to involve emotional empathy; attention to, and discrimination of one's emotions; accurate recognition of one's own and others' moods; mood management or control over emotions; response with appropriate emotions and behaviors in various life situations (especially to stress and difficult situations); and balancing of honest expression of emotions against courtesy, consideration and respect (i.e., possession of good social skills and communication skills). The meaning of self-efficacy is “the belief in one’s capabilities to organize and execute the courses of action required to manage prospective situations”. In other words, self-efficacy is a person’s belief in his or her ability to succeed in a particular situation.

Thus, use of Emotional Intelligence has become imperative to both productivity and psychological well being in the workplace of various industries. Moreover self-efficacy is a person’s belief in his or her ability to succeed in a particular situation. So Emotional Intelligence and Occupational Self Efficacy are inter-related and should be treated as an important aspect.. This article examines how emotional intelligence is associated with job performance. Our intention was to

study the relationship between Emotional Intelligence and work performance.

The term emotional intelligence, rendered popular by Goleman (1995), was first used by Salovey and Mayer (1990) to describe the capacity individuals have for monitoring their feelings and those of others, discriminating between various types of emotions and using this information to

channel thoughts and actions. According to the theoretical model of Bar-On (1997,

2000), emotional intelligence is defined as a sum of emotional and social competencies that determine the modalities with which a persona relates to both him/herself and to others in order to cope with environmental pressure and requests. Emotional intelligence is thus, in this model, an important factor in determining success in life and, more generically, influences the well-being of individuals. Emotional intelligence develops over time, changes in the course of life, and can be increased by means of training programs.

One more article on Emotional Intelligence and self efficacy in a sample of Italian High School teachers which was published in “Social Behaviour and Personality”: An International Magazine dated 1st April 2008, written by Di Fabio, Annamaria, Palazzeschi, Letizia. The aim in this study was to further analyze the construct of emotional intelligence and its relation to occupational self-efficacy in a sample of Italian teachers. Teacher self-efficacy was best explained by the intrapersonal dimension. The study indicates both a need for further analysis of the emotional intelligence of teachers and new areas of possible research.

In today’s rapidly changing work environment, it is very important that one not only gets a job, but also knows how to retain it. It has been proved time and again that persons with higher emotional quotients have always topped in their careers while persons scoring low, are more likely to be replaced. This is more so important

in the Hotel industry where the constant pressure to maintain the standards of the hotel as well as cater to the guests needs, often leads to high tempers flying between the staff. This often leads to poor work performance, bad working environment and higher attrition levels. Going by this trend, the need for this study was to emphasize the importance of handling stress the right way & to analyze how much emotions contribute to a person’s reactions in a situation & ways of controlling the various emotions to bring out the best in the employees. This study on Emotional Intelligence is restricted to 5 Hotels in Bangalore.

When psychologists began to write and think about intelligence, they focused on cognitive aspects, such as memory and problem-solving. However, there were researchers who recognized early on that the non-cognitive aspects were also important. For instance, David Wechsler defined intelligence as “the aggregate or global capacity of the individual to act purposefully, to think rationally, and to deal effectively with his environment”. As early as 1940 he referred to “non-intellective” as well as “intellective” elements, by which he meant affective, personal, and social factors. Furthermore, as early as 1943 Wechsler was proposing that the non-intellective abilities are essential for predicting one’s ability to succeed in life.

DOMAINS OF EMOTIONAL INTELLIGENCEGoleman is credited with popularizing EI in the

business world. Goleman’s EI construct delineates it into four domains or dimensions. These are self-awareness, self-management, social awareness, and relationship management. A large segment of research refers to the components of EI by these labels and therefore will be used initially to differentiate traits associated with it.

SELF-AWARENESSSELF-MANAGEMENTSOCIAL AWARENESSRELATIONShIP MANAGEMENT

SELF-AWARENESSSelf-awareness is recognizing and understanding

one’s own emotions; using them to guide behaviour; accepting one’s strengths, weaknesses, and competencies; and possessing the self-confidence to succeed. The dimension of self-awareness is further divided into three categories: emotional self-awareness, accurate self-assessment, and self-confidence. Leaders who are aware of why they are experiencing emotional responses and what is causing the emotions are better able to self-manage these emotions because they can identify them. In addition, because they understand their reactions,

they are better able to prevent miscommunications with others. Hamacheck asserted: People seldom fail as bosses, workers, parents, teachers, or in relationships generally because they know too little about the world outside the self. More often they stumble because of what they do not know or fail to understand about their intrapersonal feelings and motives, the world inside the self. At Johnson & Johnson, Inc., high-performing managers were found to have significantly higher levels of self-awareness In two other studies, Dulewicz et al. evaluated retail managers while Langhorn evaluated restaurant general managers in the U.K. Self-awareness was found to be significantly related to job performance of service industry managers in both of these studies.

SELF-MANAGEMENTGuests and employees expect successful managers

to adjust to the needs of the individuals involved in the situation at hand. While dealing with disgruntled employees or guests, a manager must accurately assess the situation without internalizing negative comments. A manager is also required to maintain emotional control while defusing the situation. Determining the best course of action without allowing setbacks to alter their course is essential. The ability to exercise this appropriate control is the self management component of EI. The subcategories of self-management are self-control, trustworthiness, conscientiousness, adaptability, achievement orientation, and initiative. Many of these subcategories can affect the individual’s satisfaction, desire to continue employment, and organizational commitment, as well as have a strong influence on the actions of one’s subordinates.

Self-management of emotions is important in conveying ideas and creating team spirit and team effectiveness. Being emotionally stable promotes free-flowing ideas and keeps the lines of communication open. In addition, leaders with good self-management skills are able to be better change agents and create buy-in to change by subordinates. Leaders relate emotionally with their employees; relating to them appropriately will allow the employees to better complete their job responsibilities. Dasborough and Ashkanasy found that leaders who have high EI are better able to manage the impressions they give others, and to use those impressions to guide their subordinates to achieve the desired goals. When their leaders possess high levels of EI, employees have higher levels of satisfaction, and leaders are able to replicate in employees their own feelings of excitement, energy, and enthusiasm.

To be continued....

DR. AkhILA R UDUPAThe author is a Associate Professor

in Seshadripuram Institute of Management Studies Bangalore

Role of Emotional Intelligence at Work - place

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Union Agriculture Minister, Mr. Radha Mohan Singh said at the ‘7th Agricultural Summit’ held in New Delhi recently that to expand water and

land resources for agriculture in the country, over 14 crore farmers will be having their own soil health cards at a cost of Rs 568 srores in the next three years. He urged students and scientist fraternity from agriculture to create awareness among farmers of at least one village of their hometown about various initiatives in agriculture with the theme of “Mera Gaon, Mera Gaurav”. He also mentioned that there are approximately 20,000 scientist and 50,000 students from agriculture, who are graduates or PhD’s of agriculture. He underlined the importance of fundamentals of agricultural growth for the development of country as he mentioned improved soil health, high productive seeds, and modern agriculture practices, effective irrigation facilities, water to every agricultural land, apt marketing facility for agricultural produce as essential points for development of agriculture as a whole.

Mentioning about Pradhan Mantri Krishi Sinchai yojana, Mr. Singh said that the programme will play a vital role in bringing water to every agricultural land in the country. He added that Soil Health Card (SHC) provided to farmers will be a tool to identify the nutritional

requirement of the soil and apt laboratory analysis for increasing the agriculture production and productivity. He emphasized about organic fertilizer and traditional farming practices during his discussion.

He further said, the next Green Revolution is possible in 7 North states. For north and east states, the traditional farming will be encouraged and the government has already released Rs. 100 crores to boost it. This year, the government and the agriculture sector have faced many challenges like rainfall which was almost 13% less this time and many more, said Mr. Singh. He said that with the setting up of the price stabilization fund, farmers will be able to get remunerative prices for their agriculture products. Mr. Singh pointed about e-Marketing of agriculture products especially horticulture produce like lichi, mango, gauva and emphasised that horticulture, dairy and fishery has potential to generate huge employment for farmers, especially youth. He also mentioned that government has made initiatives for development of Animal Husbandry, Dairy and Fisheries sector. He said the indigenous cows have a high tolerance towards the climate change and breeding of indigenous cows is essential for long term

perspective of growth and productivity in agriculture output. He also mentioned that there is a need for adopting scientific attitude towards agriculture production to achieve the goal of higher growth in agriculture as a whole.

Mr. Mohanbhai Kalyanjibhai Kundariya, Minister of State, Ministry of Agriculture also said, agriculture has always been the backbone of the Indian economy. Even though the share of agriculture and allied sector in gross domestic

product (GDP) has declined to 15.2% during the eleventh plan and further to 13.9% in 2013-14, it still accounts for about 54.6% of total employment. The development in agriculture is an essential condition for the development of national economy. Mr. Anil B. Jain, Chairman, Agriculture & Food Security Council said, about 8 percent growth in agriculture is needed and feasible and if achieved will result in prosperous rural India and a much stronger India. There is need to ensure progress on following initiatives like soil conditioning, right fertilizers, nutrients irrigation, water use efficiency irrigation, waste water treatment, biotechnology, better seeds and planting materials, precision agriculture etc.

MEDIA WORLD

Soil Health Cards for farmers

The minister added that Soil Health Card (SHC) provided to farmers will be a tool to identify the nutritional requirement of the

soil and apt laboratory analysis for increasing the agriculture production and productivity. He emphasized about organic fertilizer and

traditional farming practices during his discussion.

He underlined the importance of fundamentals of agricultural growth for the development of

country as he mentioned improved soil health, high productive seeds, and modern agriculture practices, effective irrigation facilities, water to

every agricultural land, apt marketing facility for agricultural produce are essential points for

development of agriculture as a whole.

Agriculture has always been the backbone of the Indian economy. Even though the share of agriculture and allied sector in gross domestic

product (GDP) has declined to 15.2% during the eleventh plan and further to 13.9% in 2013-14, it still accounts for about 54.6% of total

employment.

radha MOhan SInGh

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Women are finding it more difficult than ever before in balancing Work and personal life, thanks to the nuclear families. There are some

who are actually successful and many who do not get a job of their choice. Industries and organizations have not woken up to the thought of employing women and give them the flexibility of taking care of their family. While some fields like IT do have the work-from home model, such opportunities are not available in many other fields. The huge potential of women seeking career and not getting the same is in fact a huge drain for the Indian Economy.

While a few women do have utilized their potential and started off as Entrepreneurs, there are many who consider it as scary or impossible. While starting something on our own can be prohibitive to both men and women alike, it is predominantly women who give it up soon.

Entrepreneurship does not always involve money at least not big money. Women aspiring to become entrepreneurs require the grit and determination. Family too needs to be taken into confidence. Entrepreneurship has always been regarded as very risky especially for women. Then comes the usual hiccup of raising funds. Most women lose their confidence at this level and take a backward step.

That brings us to the big question – Why focus on women Entrepreneurs? Women entrepreneurs see the world through a different lens and, in turn, do things differently. Government and couple of NGOs have schemes to help women entrepreneurs succeed and add to the economy. Studies reveal that women tend to have a longer innings into the entrepreneurship than men, once they get into it. Studies have also shown that women entrepreneurs bring out innovative ideas and bring out novel products.

So why entrepreneurship as a career? Should it be taken up as first career or second career? While there is no rule that entrepreneurship has to be taken as a first or second career, it suits as a second career more because of the maturity, endurance, experience and expertise that one carries during stage-II. Success rate among women entrepreneurs who take it as second career is higher than those who take it as first career.

It is a win-win situation for women as well. They get flexibility of time and an opportunity to listen to their

hearts and be their own boss. They too add to the economy – be it the family or the country. Nothing can be more satisfying than the thought of contributing to the economy.

I have come across many women who started off entrepreneurship just to kill time, when they are not needed to take care of their children. They are today running full- fledged business and some of them have provided employment to many needy women. They are a satisfied lot – contented with the income and happy to have been providing income to some families. Most of them started off with little or negligible investment.

A very close friend of mine had to quit job after marriage. After their first child, she felt the need of additional income but could not work full time. She took up as investment adviser after taking up a short term course. Today she earns more than her spouse, has visited many destinations abroad, apart from awards and accolades she got for her performance. She was from a small town and hardly could speak English when she took this up.

There have been very many success stories – a small start-up of making designer foot-rugs out of used clothes, making earrings and bracelets at home, providing decorative items for puja and weddings, setting up a boutique, home-made pickles and masala powders etc., the list has no end. Every small requirement of day-to-day life can become an entrepreneurial idea. Any new innovative idea can result in an entrepreneurship. All that it requires is a strong determination and a bit of endurance.

Women need entrepreneurial education. Training can equip women with the confidence to see bold ideas through. There are many organizations which are offering specialized training and courses.

Women business leaders inspire other women to pursue their dreams. They also find it easier to balance work and family outside the traditional corporate world. The world needs women entrepreneurs, and women entrepreneurs need all of us.

It is time to provide the support and tools to ensure that, in 2015 and beyond, women-led businesses flourish. Women’s empowerment will be front and centre in 2015. With that Women’s entrepreneurship too will pick up as it is recognized that women are crucial to economic growth.

Let’s understand how Financial Instruments came into existence. It starts with the need of capital

to start any business. On one hand there are industries/companies and individuals with good Business Ideas, who need money to start and run the business, need money or Capital. On the other hand there are investors who have money to invest and are looking out for an appropriate investment, which suits the investor. The Business person or Business house explains the business idea to the investor. If the investor finds it to be a good idea which will do well as business, and yield profits in future, the investor will decide to invest into the business.

Thus the Business becomes the issuer and the Investor becomes the subscriber. So what does the Issuer issue? Issuer issues a Paper.

The “Paper” contains various promises made by the business person to the investor:

1. All explanations of the idea are written down2. All the possible benefits of the investment idea are

mentioned3. All the risks are mentioned4. AND most important, depending on the kind of

investment made, there are promises to either:a) Share profits of the business ORb) Pay interest on the amount invested and to return

the amount as well.5. The Rights of the Investor are clearly mentioned.The Investor reads the paper very carefully. Once the

investor is convinced with everything in the paper, the investor ‘Subscribes’ to it. This means the Subscriber is investing money into the business. The Investor pays money and in return he get the Paper issued by the Issuer.This ‘Paper’ is the financial instrument. These

Financial Instruments are issued in a market – the market for Money and the market is called Financial Market.

This market in which the paper is first issued (when it is created by the issuer) is referred to as the “Primary Market”. The paper issued is also referred as “Security”. It may also be referred as a “Financial Instrument.” Hence, ‘Paper’ = ‘Security’ = ‘Financial Instrument’. (All are used synonymously, though there are different types of paper in financial markets).

So what is the benefit of the security to the Subscriber? The advantage of issuing Paper to the Investor is that it allows the Investor to sell the investment and raise cash if needed. This market, in which a paper that was previously issued can be sold and cash realized, is called the “Secondary Market”. This ability to encash the investment when needed is an attraction to the investor.

The Investor may also choose to hold the Paper and not sell it. How does he benefit by holding the Paper? The business into which he invested in and bought the paper, makes profit. On stipulated dates, the Investor gets dividends ( part of profits) or interest as promised in the Paper.

An investor can choose to hold the security, and continuously reap benefits or may choose to encash it in the Secondary Market. Once he sells the security in the Secondary market, he ceases to be the owner of the paper and hence will not be eligible to any benefits from the security. The buyer who bought the security from the secondary market will become the new owner of the security and reap all the benefits till he sells it to someone else. This chain continues, and forms huge volumes in the Secondary Market every day. This buying & selling of securities is also called Trading.

The Business or the company however is not concerned as to who the holder of the security is. It will only be concerned about the benefits to be paid to the holder on promised dates. The price at which that parties buy and sell in the Market is called as ‘Market Price’. Market prices of various securities keeps rising and falling several times in a day.

One may actually imagine and equate a Vegetable market to Financial Market. Just as in a Vegetable market, you can buy or sell variety of Vegetables, in a Financial Market, one can buy or sell securities of various Companies/Businesses. Just as you can get the same vegetable at different prices in the same market, you can buy the same security at different prices.

At the end of each trading day, the market discovers the right or optimum price of a security which is quoted for the public to know. This also becomes the opening price for the following trading day. Thus Market Prices change during the day and also between the days.

Understanding Mutual Funds

k.S. [email protected]

"More College girls prefer entrepreneurship to jobs"RV College of engineering, Bangalore has built an entrepreneurship cell with Central aid. Of the 40 students

involved in various ventures, three are girls. Similar entrepreneurship cells have been set up at other colleges as well namely, BMS College, Dayanand Sagar college, Mount Carmel College Etc.

(Source: Times Of India, bangalore Edition 19.01.2015)

Entrepreneurship as a Career for Women

k.S. ChhAYAA

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Indian corporate frauds arising out of corruption, money laundering, tax evasion, window dressing, financial reporting fraud and bribery have increased

by over 45% in the last two years due to weakness in internal controls, scarcity of resources at disposal and over-riding powers of the senior management, according to an ASSOCHAM-Grant Thorton study. The joint survey by Assocham and Grant Thornton revealed that the companies related to real estate and infrastructure sector (52%) are considered to be the most vulnerable to fraud related incidences followed by financial services (34%), telecom (5%), manufacturing (3%), electronics and IT/ ITeS (2%), Hospitality and tourism (2%).

Over 65% of our survey respondents agreed to witness a rising trend of willful defaults and frauds. The survey observed that the lurking risk of frauds has been dissuading global companies from investing in India, points out the survey. Procurement frauds, payrolls frauds, asset misappropriation, financial misstatement, corruption, bribery, tax evasion, piracy, intellectual Property (IP) fraud, kickbacks, accounting frauds, counterfeiting, white-collar crimes etc are swiftly threatening business in both the private and public sectors, adds the report.

While releasing the Assocham paper Mr. D S Rawat, Secretary General Assocham said, besides the financial losses, businesses that are victims of fraud also suffer long term negative impact on their brand and reputation. Corporate wrongdoing inevitably ends up creating a vicious cycle that hurts shareholders value,

damages investor’s trust, leads to locking-up of capital in litigation, and ultimately causes wider financial market instability; eventually becoming part of much larger

problems. Over 66% of the respondents highlighted their concerns about the impact of frauds on their brand and market reputation. Further, 26% of respondents were concerned about the financial losses that businesses suffer as a result of frauds. Intentional fraudulent financial reporting, information manipulation, theft of inventory etc are among the common types of misconducts that can result in financial losses for companies, adds the joint report.

Around 71% of survey respondents believed that incidents of fraud would continue to rise over the next five years, and highlighted bribery and corruption, and regulatory noncompliance as the top frauds they had experienced in the past two years, highlighted the paper. A majority of the respondents (69%) consider strong internal controls as the most effective mitigation strategy for managing operational and financial risks related to frauds. Others like setting policies and procedures for reporting fraud- whistle blowing and independent and /or external audits.

A staggering 40% of our survey respondents have pointed to the lack of penetration of employee awareness programs in their organizations. Besides, over 15% respondents are unaware of such a training that could help detect warning signs. Maintaining vigilance against corruption, money laundering and/ or bribery needs to be a key focus for Indian corporate, added Mr. Rawat. More than 68% of the respondents to the survey stated that damage to their organizations’ brand and market reputation was the biggest impact of fraudulent activities. The exchequer suffers massive losses each year, usually running into several crores of rupees because of an array of frauds. As per the reports from the RBI, during the period 2012-13, 29,653 cases of fraud were detected in India’s nationalized banks, totaling Rs. 24, 828 crores, points out the paper.

The joint survey by AssOChAM and Grant Thornton revealed that the companies related to real estate and infrastructure sector (52%) are

considered to be the most vulnerable to fraud related incidences followed by financial services (34%), telecom (5%), manufacturing (3%), electronics

and IT/ ITes (2%), hospitality and tourism (2%). Procurement frauds, payrolls frauds, asset misappropriation, financial misstatement, corruption, bribery, tax evasion, piracy, intellectual Property (IP) fraud, kickbacks, accounting

frauds, counterfeiting, white-collar crimes etc are swiftly threatening business in both the private and public sectors, adds the report.

ASSOCHAM-GrantThortonStudy

Corporate fraud reports 45% increase

D S RAWAT

The proposed roll out of Price Stabilization Fund towards

addressing seasonal price fluctuation of key perishable and non-perishable commodities is a welcome gesture and industry bodies are said to have expressed their happiness on the new scheme. The Assocham feels that this will be another concrete move in a series of measures undertaken by the Government to tackle stubborn food inflation, d i s t r i b u t i o n issues of food articles and also protect both farmers and consumers from abnormal price volatility. The fund, being proposed as a bridge support, will meet the difference between purchase costs and selling prices coupled with distribution support and sale of sensitive commodities by State Governments. The fund is expected to be operational between Jul 15 to Nov 15, when prices of vegetables and pulses show huge volatility.

This will complement the amendment to the Essential Commodities Act as well as the measures to create a unified national market to deal with persistent food inflation. Assocham is confident about the following multiple positive externalities arising from the move.

The fund will make market interventions, when

prices of some commodities rise above the defined price threshold, thereby reducing hardship for consumers who are impacted the most by price spikes in food articles like vegetables and pulses. The move will enable farmers to plan production as per demand in a more sustainable manner and make the agri-market more resilient. Market interventions by the Govt., especially in perishable goods, will provide a fillip to distribution and storage infrastructure.

Assocham believes that the complementary measures, if implemented in the right spirit by Centre and State Governments, will enable the country to

successfully limit food inflation, leading to lowering credit costs

in the medium term. A robust institutional mechanism

for coordinated policy implementation will further boost the agricultural sector in India.

Decline in International and

Domestic Prices of Tea, Coffee, Rubber and

Tobacco during past few years causing distress to the

primary growers. Commissioned by the Department of Commerce,

NCAER submits report in September 2001and suggests various policy options. Department of Commerce decides to set up a Price Stabilisation Fund. CCEA gives in-principle approval in June 2002. Committee constituted to workout modalities of implementation of the Price Stabilisation Fund Scheme. CCEA accords approval to the PSF Scheme in February 2003. PSF Scheme launched in April 2003.

Objective: To provide financial relief to the growers when prices of these commodities fall below a specified level. Sustained, long-term support to growers in place of adhoc interventions during crisis. To alleviate the hardship faced by the growers due to low prices and to safeguard their interests.

Price Stabilization Fund adefinitivestridetowardstacklingfoodinflation

The fund will make market

interventions, when prices of

some commodities rise above the defined price

threshold, thereby reducing hardship

for consumers who are impacted

the most by price spikes in

food articles like vegetables

and pulses. The move will enable

farmers to plan production as

per demand in a more sustainable

manner and make the agri-market more resilient.

The fund is expected to

be operational between Jul

15 to Nov 15, when prices of vegetables and

pulses show huge volatility. This

will complement the amendment to the Essential

Commodities Act as well as the

measures to create a unified national

market to deal with persistent food inflation.

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getting affection at premium from the other, though things are not to be taken at face value, always.

The road that leads to happiness in love is so narrow that two cannot pass through unless they become one as all know that Love can knock down every wall that hate can build.

There need not be any door to one's heart as it will have to remain open for twenty four hours to transact business even during the non-business hours and holidays. Common interest makes the relationship quite enjoyable, but little differences may make it interesting and when things don't tally, let rectification entries be passed at once, so as to avoid opening any suspense a/c.

Understanding intangible asset of love is more important than appreciating tangible assets revealed by vital statistics as, at times, the latter may conceal the former. The figures of mutual interest may, however, be 1 4 3, indicating I LOVE yOU.

Extent of thrift shown in financial matters needs lot of relaxations when it comes to matter of love and affection. If one wants to advance in life, then the wants should not advance quickly to avoid liquidity crunch developing. Life consists 80 % of what your response is to the balance 20 % happening to you and hence don’t just go through the life, but grow throughout the life.

Understand love and take the first flight in which there are reservations only for a beautiful wife and dutiful husband. Let the life Balance Sheet reveal huge love capital on one side as the only source of funds, represented by

primarily Goodwill on other side. If marriage is a gamble, let one be the jackpot for and of the other.

Marriage is not a barrel of promises, but a shelter of compromises. But no matter how much the world changes, certain values remain the same. On has to accommodate in-laws, as confronting them may pave way for misunderstanding that may result in net loss to both the partners.

Stand together, yet not too near together, for pillars of temples stand a part and oak tree as well as cypress grow not in each other’s shadow. A relationship built on mutual respect, basic courtesy, acceptance, compromise, companionship, etc. is an effective way to make good on “Till death do us part” concept.

A good woman is known by what she does and a good man what he doesn't. May both live as long as both want to & may both of you want so as long as you live, as Life is always bigger than its problems. Sharing all interests throughout the life journey may not allow each individual to realize his or her full potential and dreams, but would only end up sacrificing one’s interest for others’ interest.

Coming together is a beginning, keeping together is progress and living together is success. Happily married is the one who knows how to make the best of the other, rather than the one who tries to have the better of the other.

BEST of the BLESSINGS and WISHES TO ALL THE VALENTINE COUPLE.On Saturday, 14TH FEBRUARy 2015, THE

VALENTINE DAy, Affection a/c of Sow RANI, is getting credited with corresponding

debit to the Love account of Sri RAJA, establishing the relationship in the books of “M/S RAJANI” on double entry basis. Only in the Business of Love, people want the expected Return on their Investment, without taking any risk.

Marriage, whereby RAJA loses his bachelorhood while RANI gets her master, is not only just a word but also a long sentence of one's liking. It is a relationship in which dependence is mutual, obligations are reciprocal and independence is equal.

The Joint Venture would be successful as the promoters are two matured adults of different gender as the partners in the family partnership with provision to admit minor partner, preferably one or two at a later date, for certain selected benefits.

If beauty and elegance are the seed Capital, then let Love and Affection be the fully Paid Up Capital of the association, transacting real tangible business. She can debit what comes in and he can take credit for what goes

out. Let love capital be built up with capitalisation through

bonus declared in the form of gifts and presentation to plough back. Love is really photogenic as it develops well during darkness.

In the emotional bank a/c let Deposits or Credits be made in the form of praise, courtesy, respect, kindness, honesty etc., whereas withdrawals or debits are recorded when there is overaction, egoism, absence of apology for the misdeeds, negligence etc. But, let the partnership Current Account run always in credit balance, without there being an occasion for overdrawing, even temporarily.

Try to insert at least two credit entries of praise between two debits of criticism as inability to pay attention for this may lead to love bankruptcy. Love is the difference between existing and living of human beings. Let there be daily General Meetings to pass many resolutions to transact physical and mental business.

Love is the feeling that you feel you are going to feel a feeling that you never felt before and Love is the only language that every heart can understand. If anyone extends love at a discount, then there is no chance of

money I love you GREETING MESSAGE


CII is organizing the 9th edition of BANKing

TECH Summit under the Chairmanship of Mr. Arun Jain, Executive Chairman, Polaris Financial Technology Ltd. on Tuesday, 3 February 2015 at Regal Room, Hotel Trident, Nariman Point Mumbai.

BANKing TECH Summit 2015 is expected to attract over 200 top professionals comprising of

Chairmen, CEOs, MDs and other Senior Managers from the Indian banking, financial services & IT industry and key officials from nodal government agencies who will present their perspectives on the future of the Industry.

The Summit aims to build a common platform for financial solution providers and the Indian financial community.

CII hosts Banking tech Summit

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ICICI Bank Coral Contactless Credit Card has a chip and a radio frequency antenna embedded. When you touch your Contactless Credit Card or device against a Contactless terminal, your card transmits payment details wirelessly, eliminating the need to insert a card.

India’s largest private sector bank, ICICI Bank, recently announced the launch of the country’s first ‘contactless’ debit

and credit cards, enabling its customers to make electronic payments by just waving the cards near the merchant terminal in lieu of dipping or swiping them. These cards are based on the Near Field Communication (NFC) technology, which provides customers the improved convenience of speed as these cards require significantly less time than traditional cards to complete a transaction along with enhanced security as they remain in control of the customer, according to a note from ICICI Bank. The bank provides information about the mode of use of the card.

ICICI Bank Coral Contactless Credit Card is a 'Contactless' way to pay for purchases at retail outlets. It is like having exact change wherever you go. A simple tap of your card is all it takes to pay at the merchant outlet. ICICI Bank Coral Contactless Credit Card has a chip and a radio frequency antenna embedded. When you touch your Contactless Credit Card or device against a Contactless terminal, your card transmits payment details wirelessly, eliminating the need to insert a card. Account details are communicated to the reader and then processed through the secure MasterCard acceptance network in the usual way.

With MasterCard Contactless you do not have to worry about carrying around a lot of cash or fishing for coins. you are in control because your Contactless card never leaves your hand at the time of payment. With Contactless you get better at keeping a record of

all your purchases than using cash for small everyday items. It is fast and ideal at places where you are in a hurry, like at fast food restaurants, petrol stations and more. Anywhere you see the Contactless symbol at the merchant outlet;

you can tap to pay with your Contactless card. If you do not see

the symbol, your Contactless card can still be used for swipe or dip transactions.

To make a purchase, simply tap your Contactless card on the 'Contactless' payment terminal at the participating retail locations. you need to touch the reader with your card or the wallet your card is in. Please note that if you have more than one Contactless card in your wallet, you should remove the specific card you wish to use to pay. Purchases made with Contactless will be displayed on your statement just like any other purchase you make with a regular card. Treat your Contactless card as you would any Credit, Debit and Prepaid cards. Always know where your Contactless card is and keep it in a safe place. Check often to make sure none of your cards/ devices is missing. Be sure to keep a record of all your card numbers, expiration dates and emergency phone numbers in a safe place. you may use your ICICI Bank Coral Contactless Credit Card at any terminal enabled with MasterCard contactless throughout the world.

ICICI Bank launches contactless credit cardNE

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Money Wise February 2015www.money-wise.in 52

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13IndIA's growth rate to surpass ChInA in 2016 role of ...money-wise.in/wp-content/uploads/2015/06/Issue-2_Vol-3_color-2.pdfModi's MAKE IN INDIA push is a master stroke. It is a revolutionary