As I like it

Untying Our Wings

2010-08-21T18:28:00.000+05:30

This excerpt from Eknath Easwaran appeared in the Spring 2006 issue of our quarterly Blue Mountain journal.

“All of us have wings, though we do not suspect it because they are so tightly tied. We are not meant to stay on the ground and peck at crumbs of personal pleasure and profit. We are meant to soar – to give our time and love freely to everyone around us. That is the essence of spiritual growth, and the whole purpose of meditation and the other skills of spiritual living is to free our wings and allow us to fly high.

“In India’s mystical literature, the ties that keep us earthbound are called “knots that strangle the heart” because they constrict our capacity to love. There are millions of these ties, but perhaps the easiest to see are what I call personal attachments: possessions and activities we cling to that claim our time and attention at the expense of those around us.

“Many of these attachments are material. Most of us have accumulated things that tie us down one way or another, often because we think they add to our status or prestige. Other attachments might be activities we enjoy that benefit no one, including ourselves. Whatever it is, we can’t imagine doing without it. That is the hallmark of an attachment.

“These ties might seem gossamer, but they add up. They can bind us so tightly that we can scarcely move beyond the limited circle of our personal likes and dislikes. Imagine if your favorite possessions were actually attached to you. How difficult it would be to drag them around even for a day! Yet the mental load we carry is no less burdensome. Shedding even a little of that load leaves us feeling as light and free as if we really did have wings.”

Read the rest of this article from the Blue Mountain journal.

Untying Our Wings

The dangers of financial illiteracy in America: newyorker.com

2010-07-27T22:15:00.001+05:30

The dangers of financial illiteracy in America: newyorker.com

There’s evidence that just improving basic calculation skills and inculcating a few key concepts could make a significant difference. One study of the few states that have mandated financial education in schools found that it had a surprisingly large impact on savings rates. And the Center for American Progress has found that, across the country, education and counselling by nonprofit organizations, like the Massachusetts Affordable Housing Alliance, have helped low-income families buy and hold onto homes, even during the housing bubble. The point isn’t to turn the average American into Warren Buffett but to help people avoid disasters and day-to-day choices that eat away at their bank accounts. The difference between knowing a little about your finances and knowing nothing can amount to hundreds of thousands of dollars over a lifetime. And, as the past ten years have shown us, the cost to society can be far greater than that.

Read more http://www.newyorker.com/talk/financial/2010/07/05/100705ta_talk_surowiecki#ixzz0utzRIOlq

Wall Street, the White House, and the weak economy: newyorker.com

2010-07-27T22:09:00.000+05:30

Wall Street, the White House, and the weak economy: newyorker.com

http://www.economist.com/node/16481295?story_id=16481295&fsrc=rss

2010-07-04T11:28:00.000+05:30

http://www.economist.com/node/16481295?story_id=16481295&fsrc=rss

Top IT cos are all shining, what ails the rest?

2006-07-29T23:55:00.000+05:30

India's rapidly burgeoning economy and the flood of new MNC companies have led to a shortage of first-rate mid-level managers and executives within the IT industry. This crisis is not only coming in the way of winning new contracts but also on their ability to maintain and mine existing contracts, says this article in Economic Times.

- Dilip.
____________________________________

Source: Economic Times, 20-07-2006

PP THIMMAYA

TIMES NEWS NETWORK [ THURSDAY, JULY 20, 2006 12:00:00 AM]

The first quarter results from the IT services biggies have started rolling in and they have all shown impressive top-line and bottom-line growth, ranging from 35% to 50%. The story with the Tier II players, in contrast is expected to be less spectacular. And that's not because of a dearth of business.

More a case of "plenty of food on the table, but unable to consume and digest it," basically due to lack of quality people in the right quantity in the mid-management.

The shortage of people in the 3-7 years bracket is acute in the industry and very pronounced with the mid-sized players. Given their size and brand pull, they find it difficult to attract and retain mid-level talent which has a direct impact on their business growth. Mainly because it is the middle management that is the connecting link between the top management and freshers, performing the dual role of executing projects and mentoring.

The Problem

However, the genesis of this issue lies in the growth momentum of the Indian IT industry which is clocking 30%-plus rates annually. Smaller Indian IT companies, locked into small deals till the other day, have grown to a larger base with bigger deals.

Plus, the MNCs (like IBM, EDS, Accenture, Capgemini) too have stepped on the gas and scaled up their Indian operations. IBM has 43,000 people on its rolls. Accenture is 20,000-plus, a good yardstick of the growth trajectory. And any MNC launching or expanding its operation in the country would typically go for the mid-level talent first. Given their brand pull, mid-level talent often makes a beeline for such companies too.

Amitabh Das, CEO, Vati Consulting, a recruitment process outsourcing and advisory firm says: "Getting an experienced candidate at the right time is a difficult task. Take any organisation, middle-level professionals form the backbone of it, without them none of the projects can succeed."

Typically for the large companies, if a certain mid-level professional quits half away through a project, it has the wherewithal to fill in this gap. But Tier II or Tier III companies cannot afford this luxury: if a professional at this level quits, it might mean an end to the project and consequent loss of business.

Mohan Sekhar, chief delivery officer, iGATE Global Solutions says: "Mid level talent (with 3 to 6 years experience) is extremely critical for growing the organisation and delivering to clients in a predictable manner. These are challenging times for recruiting mid-level managers in India considering the robust growth of the IT industry and the acute shortage in availability of quality talent."

e4e India Managing Director Dr Sridhar Mitta says the lack of adequate people at the middle level is a problem with varying degrees for both the large and mid tier companies. He adds that the pressure for a Tier II company is much higher. Points out Tarun Singh, director, Kenexa Technologies: "India's rapidly burgeoning economy and the flood of new MNC companies have led to a shortage of first-rate mid-level managers and executives within the IT industry."

However, Prashant LJ, global marketing head, Infinite Computer Solutions, feels the pressure on fresher's are much higher than at the mid-level. He says Infinite has been able to get these people and map their careers on a fast track unlike the large Tier I companies which provides limited opportunities.

Taking on board less-than-suitable candidates also acts as a double edged sword as companies will have to invest on training them, which affect their bottomlines and limiting resources that can be invested in other core activities.

Also, while the large Indian players have been active in hiring freshers and started visiting campuses a good 5/6 years ago --which now given them a beefy mid layer-- most of the mid size companies focused mainly on lateral hires, making them vulnerable in mid management.

The Fallout

This crisis is not only coming in the way of winning new contracts but also on their ability to maintain and mine existing contracts.

Das says: "Till late 90s, these professionals were loyal to their companies. Now it is difficult to retain them." Sekhar says "there are situations when lack of critical skills affects business prospects." Dr Mitta believes a combination of both internal and external measures are needed to address this problem.

Internally, IT companies need to undertake a lot of training measures whereby they could groom future mid-level professionals. Externally, companies need to look at specialised activity which can provide the edge at the marketplace and thereby attract the talent.

Prashant says creating a much larger role for the mid-level professionals and giving a higher responsibility can act as a strong incentive. Das feels that mid-tier IT organisations that are successful in training, grooming and retaining talent are able to keep afloat. "Organisations which have higher attrition levels and fail to groom the junior levels to grow to the next level suffer."

A way out for Tier II and small companies is to look at markets -- or niche domains -- that are still underserved. Industry observers say that large firms generally deal with large clients and not smaller customers.

This is a space that Tier II companies can generate business. Singh says the technology and research firm Forrester Research has predicted that "companies will now have to change to cater to the specific needs of each vertical or sub-vertical among their clients."

Charitable treatment

2006-07-24T23:58:00.000+05:30

Far from buffeting charities, the I-T Act in fact suspends the normal rules of income computation in favour of charitable trusts so as to encourage charity, says S. Murlidharan, a Delhi-based Chartered Accountant.

- Dilip.

______________________________

Source: Business Line, 15-07-2006
S. Murlidharan

The generous handout to charity by Mr Warren Buffet, the richest person in the world next only to the redoubtable Mr Bill Gates, has understandably attracted worldwide attention and admiration not only on account of the size of the largesse to noble causes but, more importantly, for turning the aphorism, charity begins at home, on its head.

A well-known writer has bemoaned lack of such noble endeavours on the part of Indians of late and blamed it on our tax laws, which he says insist on income from charities being spent forthwith in order to be eligible for exemption from income-tax. This is not true. The Income-Tax Act, 1961 permits accumulation of income by charitable trusts for five years (earlier this was 10 years). A period of five years is sufficient for a trust to identify projects and causes needing its munificence. When gestation period for massive industrial projects is being cut down, thanks to excellent project management skills, there is no reason to apprehend that charitable trusts would end up paying taxes on their accumulated income merely due to their inability in identifying worthy causes within the time allowed.

Encouraging charity

Far from buffeting charities, the I-T Act in fact suspends the normal rules of income computation in favour of charitable trusts so as to encourage charity. To wit, buying or constructing a building would be a capital expenditure for a business qualifying only for depreciation. But not for a charity. A charitable trust would be deemed to have applied its income as soon as it has invested in a building to be used as a hospital or an educational institution. Ditto for expensive diagnostic and other equipments acquired.

Moreover, a very liberal definition of the term `charitable purpose' has been given by the I-T Act and by the courts so much so that charity in India can even assume the form of promoting the game of cricket or football if you like. There are of course provisions to ensure proper utilisation of funds earmarked for charity.

Investments in shares of companies listed or unlisted is a strict no-no, lest trusts set up ostensibly for charitable purposes are used to prop up somebody or a group. Again, the funds of a charitable trust must not be utilised for the benefit of the author of the trust or his relatives. Even this rigour has been relaxed to permit reasonable acts. For example, because the child of the trustee is getting education in the institution owned by the trust would not result in the trust forfeiting income-tax exemption.

Similarly, the funds should, pending utilisation, remain invested in prescribed avenues set out in Section 11(5). An Indian can, therefore, rise to the dizzy heights achieved by Mr Warren Buffet. And like him — Mr Buffet has announced handing over of the wealth to Melinda Gates Foundation, apparently impressed by the noble work done by it over the years, thanks especially to the excellent delivery system it has designed — he need not even set up a trust himself.

The I-T Act, while frowning upon the practice of applying the income through other charitable trusts, makes an exemption in favour of voluntary contributions with a specific direction that they shall form the corpus of the trust to which it is given, by exempting such contributions from the income of the recipient trust and thus sparing it the need to apply the same forthwith or within five years, which is the maximum period for which accumulations are allowed.

Are today's managers effective?

2006-07-16T16:43:00.000+05:30

There is a crisis of managerial effectiveness. The overall business growth and abundance of opportunities may merely be covering up the financial impact of this ineffectiveness, at least for now. A look at what seems to be forcing managers to work one or two rungs below their real level of contribution. Many managers have ended up robbing their team members of the fundamental autonomy of being able to organise their work and operate at a pace they are comfortable with, says Sri Ganesh Chella, in this article in Business Line.

- Dilip.

__________________________________________

Source: Business Line, 19-06-2006

Ganesh Chella

I wish I had the time to do some of the strategic things I have always wanted to do. It is just that I have this temporary fire to put out.

I have always had to sacrifice my professional development because of work pressures. This really concerns me.

While I am busy through the day, I find it hard to tell myself what substantial work I have done at the end of each day.

These are the voices of today's managers who find themselves working one or two rungs below their real level of contribution.

Is it possible that many of today's managers are not as effective as they have the potential to be? What factors could be leading to this ineffectiveness?

Having interacted with hundreds of managers across levels and organisations over the years, I am convinced that we do have a crisis of managerial effectiveness. The overall business growth and abundance of opportunities may merely be covering up the financial impact of this ineffectiveness, at least for now. There are four important reasons that seem to be forcing managers to work below their real level of contribution:

Tenure

There is a growing body of evidence that points to the serious negative consequences of diminishing tenure on managerial effectiveness.

A reasonable amount of tenure seems necessary to understand the organisation's policies, processes, cultural dimensions and, most important, build a base level of workplace relationships.

Tenure also seems necessary to understand one's team and mobilise it towards a common purpose.

Diminishing tenure forces managers to compensate for the lack of team development through a much more directive managerial style with a high level of day-to-day involvement.

Team maturity

Every organisation today has to contend with a fair amount of attrition. Add to this the pressures of growth. The heady combination of managing growth and attrition means that the average manager often has to manage a team that is made up of a large proportion of young and inexperienced employees.

While it seems logical for the manager to invest in the development of these team members, managers are also under pressure to get things done. Many succumb to this pressure by taking on the role of an individual contributor.

Faith in people

In a lot of my discussions with managers about their role in championing the development of people, one thing strikes me as significant — the average manager is quite disillusioned with the futility of his efforts in championing the development of his team members.

Why should I, and what is in it for me? These are the questions they ask me and I honestly do not have a very smart answer, for the simple reason that I have never ever seen it this way!

Many managers believe that despite their best efforts, their team member will choose to leave and that they will only end up training for the street. I think that we have a crisis of faith in people, especially managerial faith.

This results in managers doing only what it takes to get today's work accomplished, be it through micro-managing or through close supervision.

Modern work style

There are three elements of the modern manager's work style that concern me a lot.

Misplaced dignity of work

Many modern managers have never had the experience of having a personal secretary or even a clerical assistant supporting them in their work. They have been brought up in the school of thought that having an assistant is against dignity of work, a sign of inefficiency and extravagance. I think this belief is quite flawed.

While I do not have empirical evidence to back my argument, I am convinced that many managers would be far more effective if they had the benefit of a personal assistant or secretary. I see managers spend time on such trivialities as booking their tickets, checking flight timings, setting up appointments, filing their papers and filing routine reports. A fair amount of staff work that consumes a good part of today's manager's time is best done by an assistant and the time and intellectual bandwidth saved will more than pay for the costs involved.

The myth of multi-tasking

Many managers pride themselves on their ability to multi-task. This translates into their taking calls, responding to mails and also talking to the person sitting in front of them at the same time. I have had the horrifying experience of being that person sitting in front of a few such managers and can tell you that it does not work.

Multi-tasking means not "being there" with any of the things you are doing — the mail, the call or the person in front. Multi-tasking is for machines, not for people.

The technology trap

A service technician representing a large Indian corporate recently visited my home to set right a piece of equipment I had purchased. The five-minute conversation that I was attempting to have with him was interrupted by about three phone calls, presumably from his supervisor. I ordered him to switch off the phone and pay attention to me.

Obviously, technology had given his manager the tool to micro-manage his team member and make life miserable for him and his customers. The same is the case with e-mails and other forms of electronic performance monitoring.

Many managers have ended up robbing their team members of the fundamental autonomy of being able to organise their work and operate at a pace they are comfortable with.

All things considered, many of today's achievement-oriented managers are nothing more than great individual contributors.

Can they ever become real managers? Will they be allowed to become one? I guess we will have to ask their managers these questions.

Philanthropy brings their joy back

2006-07-16T16:28:00.000+05:30

A caring industrialist lights up faces of two girls and a boy, says this news item in The Hindu. May God Bless the industrialist, prays Dilip.

________________________

Source: The Hindu, 13-07-2006

K.V. Prasad

A caring industrialist lights up faces of two girls and a boy

COIMBATORE: The smile on the face of the mothers said it all. Their children have been cured of cancer and can grow up as any others in their neighbourhood. Deep in their heart, they will remain indebted to an industrialist's philanthropy.

Two girls and a boy prepare to leave the paediatric cancer wing at the Sri Ramakrishna Institute of Oncology and Research, cured of Acute Lymphoblastic Leukaemia. Director of the institute P. Guhan credits Managing Director of Kumaran Mills D. Krishnaswamy with giving the children a fresh lease of life.

Costly treatment

"It is a curable disease but a lot of money is needed for treatment," says Dr. Guhan. Six months of stay in the hospital involves daily chemotherapy and the cost of treatment during this period is Rs.2.5 lakh even if the patients are in a general ward. A special ward will take the cost to Rs.5 lakh.

"Most of the children are from families that cannot afford this cost. So, they need help from philanthropists," he points out. Many such children keep coming but are in need of funds for a total cure.

The institute, functioning from the Sri Ramakrishna Hospital, has a free ward for poor cancer patients. And, this ward - Muthusamy Naidu Memorial Ward - is also the contribution of an industrialist's family in Udumalpet.

Doctor's fee

"Their corpus of Rs.50 lakh has helped us provide 18 free beds. Poor patients need not pay the bed charges and the doctor's fee is also waived. They need to pay only the cost of drugs and chemotherapy. And, this is where philanthropists can help," says Dr. Guhan. According to him, Mr. Krishnaswamy had come to the hospital for a relative's treatment and saw the plight of the children who had completed two out their four months hospital stay. He then offered to meet the treatment cost that ran into some lakhs. "I am very happy to be a part of this movement," says Mr. Krishnaswamy, explaining the sense of satisfaction derived from saving the lives of the children. "We (he and Dr. Guhan) will continue to help them till they are completely cured." The children need to be given oral drugs after discharge, says Dr. Guhan.

Derivative and Hedge Accounting by Banks

2006-07-16T16:20:00.000+05:30

A subject as crucial as accounting for derivatives would have been better done justice to if the professional body and the central bank had put their heads together, rather than go on separate paths of standard evolution and reinvent different wheels, says D Murali in Business Line.

- Dilip.

____________________________________

On separate paths of standard evolution

Source: Business Line, 13-07-2006

Recently, the Reserve Bank of India issued a `discussion paper' on `Derivative and Hedge Accounting by Banks'. This was based on the proposals made by an internal group formed by the RBI to formulate guidelines for the purpose.

These proposals are `largely based on the principles of IAS 39,' noted the RBI. The reference is to the International Accounting Standard (IAS) titled `Financial Instruments: Recognition and Measurement', which was issued in December 2003.

How far does the RBI's paper address the current practices? Dinesh Arora, Associate Director, PricewaterhouseCoopers, is of the view that when implemented, the proposals will place requirements on banks to document and measure the effectiveness of a hedge on a continuous basis. "This will help in dissemination of due information to all the stakeholders, and also assist the management in prudent decision-making," he says.

On whether there would be difficulties when applying the proposed norms of disclosure, Arora concedes that determination of fair value of derivative contracts is a complex process. "Also, since the derivative market is evolving at a fast pace, you get to see new products every now and then. As a consequence, the accounting exercise becomes even more challenging."

Wouldn't it have been better if the accounting norms had come from the Institute of Chartered Accountants of India (ICAI)? As if to pre-empt such a poser, the RBI has a defensive explanation in the intro to the discussion paper, in Para 1.2. There, the central bank acknowledges that the Accounting Standards Board (ASB) of the ICAI is engaged in the process of considering the subject. "The proposed Accounting Standard (AS) will address accounting of derivatives, among others," states the RBI. "However, the formal introduction of the AS for recognition and measurement of financial instruments in India by the ICAI is likely to take some time."

One more instance of how the premier accounting body has not been keeping pace with the requirements of the finance world, critics may point out. But one learns that the ASB has already finalised the draft of the proposed AS on `Financial Instruments: Recognition and Measurement'.

T. N. Manoharan, President of the ICAI, informs that the draft AS is broadly based on IAS 39. The forthcoming standard aims to lay down "recognition and measurement principles for all financial instruments, including derivative instruments, in a comprehensive manner," he elaborates.

Manoharan says that the draft of the proposed AS will be circulated shortly `among the specified outside bodies and other interest groups, for comments'. After considering the comments received, the ASB will finalise the Exposure Draft of the proposed AS and issue the same for public comments. "The final AS on the subject is expected to be released by the end of this year," outlines Manoharan.

By which time, the central bank's norm should be out. In Act I, Scene I of The Taming of the Shrew, Tranio tells Lucentio, "Master, for my hand, both our inventions meet and jump in one." He gets a fast response: "Tell me thine first." Is the ICAI more like Lucentio? Perhaps, a subject as crucial as accounting for derivatives would have been better done justice to if the professional body and the central bank had put their heads together, rather than go on separate paths of standard evolution and reinvent different wheels.

While still on the derivative theme, it may help to know that the Basel Committee on Banking Supervision of the Bank for International Settlements (www.bis.org) has released a 22-page `supervisory guidance' on `the use of the fair value option for financial instruments by banks.'

http://AccountSpeak.blogspot.com

D. Murali

Disclosures about exposures

2006-07-16T16:14:00.000+05:30

Set against the total liabilities (that is, deposits, borrowings, and other liabilities and provisions) of Stanchart's Indian branches amounting to Rs 34,052 crore, the exposure towards forward and derivative contracts works out to 750 per cent. For HSBC's Indian branches, it is 823 per cent, and for ABN AMRO, a whopping 1,156 per cent. It would be insightful, therefore, to attempt a similar exercise vis-à-vis the net worth of the banks, and also for the year ended March 31, 2006, says D Murali in this article in Business Line.

- Dilip.

______________________________

Source: Business Line, 13-07-2006

Standard Chartered Bank's Indian branches account for the maximum total liability on account of outstanding forward and derivative contracts. The amount as at end-March 2005 is Rs 2,55,403 crore, as per data analysed by Global Data Services of India Ltd, Pune, culled from disclosures under contingent liabilities. Forward and derivative contracts are roughly in the ratio of 2:3. And, set against the total liabilities (that is, deposits, borrowings, and other liabilities and provisions) of the bank, amounting to Rs 34,052 crore, the exposure towards forward and derivative contracts works out to 750 per cent.

But there are larger relative exposures that the analysis reveals: For HSBC's Indian branches, it is 823 per cent, and for ABN AMRO, a whopping 1,156 per cent.

In terms of a ranking by absolute exposure, ICICI Bank comes second with a total liability towards outstanding forward and derivatives contract adding to Rs 2,34,702 crore. However, this is only 152 per cent of total liabilities of the bank. With a 288 per cent exposure, HDFC Bank leads the Indian banks, though occupying a distant fourth spot in a ranking by leverage, after the 750 per cent exposure of Standard Chartered.

IDBI and Bank of India appear to be the most conservative in the list, with a forward and derivative exposure of 69 per cent and 75 per cent of total liability respectively. At 137 per cent and 210 per cent, UTI Bank and Kotak Mahindra Bank had a larger exposure, though ranking last among the nine banks.

No wonder, therefore, that the Reserve Bank of India spoke in its recent discussion paper on `Derivative and Hedge Accounting by Banks' about the growing complexity, diversity and volume of derivative products. There is an "urgent need for adoption of uniform principles for recognition, classification, measurement and disclosure of derivatives and their inherent risks in banks' books of accounts and financial statements," the central bank had said.

It would be insightful, therefore, to attempt a similar exercise vis-à-vis the net worth of the banks, and also for the year ended March 31, 2006.

D. Murali

Real Estate Mutual Funds - Opening the gates to property

2006-07-16T16:08:00.000+05:30

The contours of the regime regulating REMFs are visible — that they would be close-ended funds to start with, that the units would be traded in the bourses like the units of all close-ended funds and that they would be allowed to invest in four avenues, namely, (a) real-estate, (b) mortgage-backed securities, (c) shares and debentures of listed and unlisted real-estate companies, and (d) other securities, says this article in Business Line.

- Dilip.

________________________________________

Source: Business Line, 13-07-2006

S. Murlidharan

Real-estate mutual funds should stick to their knitting

The Securities and Exchange Board of India (SEBI), vide its press release dated June 26, had announced that it had approved the guidelines for real estate mutual funds (REMFs) wanting to set up shop in India. But, curiously, more than a fortnight after this announcement, the guidelines do not find a place in the list of operative guidelines issued by SEBI thus far and put on its Web site. May be, it is still looking at the nitty-gritty of the issue.

From the press release, the contours of the regime regulating REMFs are visible — that they would be close-ended funds to start with, that the units would be traded in the bourses like the units of all close-ended funds and that they would be allowed to invest in four avenues, namely, (a) real-estate, (b) mortgage-backed securities, (c) shares and debentures of listed and unlisted real-estate companies, and (d) other securities.

One feels slightly uneasy about (b) and (d) given the raison d'etre of REMFs — to obviate the need for buying or constructing the second and subsequent houses. In other words, if a person wants to invest in real estate he need not go through the hard grind of finding a property, finding financiers therefor, getting it registered and nursing it till propitious time comes for its disposal. Instead, he can subscribe to the units of an REMF, which will happily suffer this drudgery. Moreover, an uninitiated investor can burn his fingers badly in the rough and tumble of the real-estate market.

An REMF, armed as it is with research capabilities, can easily side step the minefields. Given this objective, why should it be allowed to invest in mortgage-backed securities, which would only fetch measly interest. One hopes the liberty in mortgage-backed securities would be restricted to a small percentage and that, too, as a stopgap arrangement when opportunities to invest in real estate have perhaps dried up.

One also hopes that too much is not allowed to be invested in other securities, lest REMFs lose focus and stray into non-niche areas. Investors in real-estate are normally in for a long haul. It would be futile to expect phenomenal returns in, say, a year's time.

Therefore, the tenure of a scheme should be at least ten years if not more. Those itching to get out earlier will have to exit through the bourses. In the case of close-ended funds, experience shows that the market quotations are invariably at a discount to NAV. Ordaining close-ended funds to publish NAVs daily like open-ended funds is perhaps to facilitate price discovery in the market. But how will an REMF find out the NAV on a day-to-day basis?

Unlike for shares — the underlying assets of share market funds — there won't be any authentic published quotation for property, the underlying asset of REMFs.

It is hoped SEBI would bestow the attention this critical aspect deserves. The mutual fund industry would obviously want units in REMFs to make the grade as long-term capital asset if they are held for more than twelve months on a par with units of other hues. But considering the unique features of investment in real estate, a minimum period of 36 months should be insisted upon. Remember 36 months is the norm and 12 months is the huge exception made in favour of the share market with a view to wooing investment therein.

(The author is a Delhi-based chartered accountant.)

A fair definition of fair value

2006-07-16T16:05:00.000+05:30

Source: Business Line, 13-07-2006

Mohan R. Lavi

Fair value is the amount at which an asset is exchanged or a liability settled between knowledgeable parties in an arm's length transaction.

There is a joke that defines GAAP as the difference between accounting theory and practice. This may no longer be the case, with accounting regulators sparing no effort to convince companies to reflect all assets and liabilities at fair value.

Accounting Standard 28, on Impairment of Assets and largely modelled on the International Accounting Standard, ensured that companies tested assets for impairment, thereby reflecting them at fair value. And to give a similar treatment to all the other items in the balance-sheet, International Accounting Standard 39 — on Financial Instruments — urged companies to value all their financial instruments at fair value.

While this did create an uproar in the accounting fraternity worldwide, the International Accounting Standards Board (IASB) decided to issue standards in a new avatar — International Financial Reporting Standards (IFRS) — which could become the rule rather than the exception as far as global standards go.

IFRS 7 — again on Financial Instruments — will be made mandatory from January 2007. This standard has given finality to the debate, by stating that all financial assets and liabilities be valued at fair value. But the all-important question that arose was: How to define fair value?

What's fair value?

Recently, the Reserve Bank of India (RBI) brought out a discussion paper on derivative and hedge accounting for banks. This, again, draws to a large extent on IAS 39, and gives a fair definition of fair value. It defines fair value as the amount at which an asset is exchanged or a liability settled between knowledgeable parties in an arm's length transaction.

The fair value of a derivative is the equivalent of the unrealised gain or loss from marking to market the derivative using prevailing market rates or valuation technique. The fair value should be measured reliably. The discussion paper also provides examples of sources from which one can obtain the fair value:

A published price quotation in an active market;

Prices available from most recent transactions; and

Results of a valuation technique that relies more on market inputs than entity-specific inputs.

The valuation technique should be calibrated regularly and tested for validity. The Institute of Chartered Accountants of India (ICAI) has announced that the present draft on Financial Instruments will be converted into an Accounting Standard in early 2007. In keeping with international trends, one can expect a change in the draft in that the standard would call for measurement of financial instruments at fair value instead of only a disclosure, as is the position now.

Internationally, the trend is to treat effective and `not effective' hedges separately. In principle, a hedge is highly effective if the changes in fair value or cash flow of the hedged item and the hedging derivative offset each other to a significant extent. With all these changes happening at a frenetic pace, it appears to be only a matter of time before balance-sheets reflect what is mentioned in audit reports — a true and fair view of the financial position of the company.

Are women better managers?

2006-07-16T15:59:00.000+05:30

People-management and task-orientation are said to be the two axes along which the pundits judge managerial effectiveness. There is little doubt that women are potentially better than men at almost any job that demands accepting responsibility for delivering concrete results. They plan better; they chase, badger and tame colleagues into submitting to their ways and as for relentless follow-up, women are superlative at it. Intention and competence do not equal achievement - Get the job done - and in this women are better, says Sri S. Ramachander in his article in The Hindu.

Regards.

- Dilip.

Source: The Hindu, Dec 11, 2005.

S. RAMACHANDER

Women manage in a way entirely different from the way men do. But are they better at it?

NOT being an astronomer or astrologer, I cannot claim to know whether women are indeed from Venus and men from Mars. Or is it the other way round?

Anyway, having mulled over the matter for decades, it seems clear that women do manage in a way entirely different from the way men do. People-management and task-orientation are said to be the two axes along which the pundits judge managerial effectiveness. The woman's approach is different in both.

As a result, in a world consisting largely of men as employees at all levels, they are beginning to make their mark felt. Whether women get the right opportunities or not is much less of an issue than 15-20 years ago. Articles about women's experience of working life, and more specifically of being managers, were a favourite with editors then. Was there in fact a glass ceiling stopping their promotions in jobs? Were all professions really open and accessible to them, except the physically onerous ones such as fire fighting — the real kind, not the metaphorical one, at which of course women are brilliant!

Accepting responsibility

Take tasks first. To my mind, there is little doubt that women are potentially better than men at almost any job that demands accepting responsibility for delivering concrete results. If you think about it deeply, and observe the reality even in a relatively less affluent society like ours, this generalisation is true of the majority of women. In the poorer classes they manage even better because the woman has to make do with very little, and stretch her resources. After all, the economists tell us managing is all about scarce resources. Often she doubles up as a part-time wage earner too.

In the more educated class, working generally in the organised sector, one finds they plan better; they chase, badger and tame colleagues into submitting to their ways. And as for relentless follow-up, which men joke about endlessly, women are superlative at it. Surely it must come from the DNA, since all societies have had a division of labour that meant the woman stayed back to keep the household ticking over like clock work.

Consider what it must have meant in the hunter-gatherer civilisations. The baby needed attention or milk, the older children needed to be occasionally sorted out, small emergencies handled, from a cut finger to a major problem — and all the while the cooking-cleaning-mending routine went on, with no gadgetry to take the place of manual work. What better situation can you think of, to teach one to manage time, to prioritise, plan and just get on with the work? Surely, the ability to take on difficult, repetitive, even thankless tasks and do them superbly well, day after day (which is in a nutshell what all the books and courses want us to learn) must have been etched thus in the female psyche aeons ago?

Administrative skills

Today's business scene or even non-commercial organisations need superior administrative skills, particularly of managing people and systems — which require a combination of this consistent performance along with the nimbleness of mind and body to respond to minor crises. No wonder women are better equipped here as well. The strange thing is that this has not been recognised and given due credit. Take for example the much talked about total quality management approach or TQM. One of its pillars is daily routine management, according to set processes, to learn which all we need is to look around us at home. Households run only because the daily routine — such as boiling milk, packing the lunch box or setting curd with yesterday's buttermilk — all goes on with faultless precision, and on time, with fall-back choices even in times of great stress such as illness or bereavement.

Of course, no one has taken the trouble to describe this with fancy jargon such as "seamlessly managing the end-to-end value-chain 24 by 7". That is all the difference! Doubtless one day some business school professor in the U.S. will discover this with amazement and publish an article in Fortune magazine, exactly as happened with the dabbawallahs of Mumbai and their six-sigma level accuracy in logistics. Don't forget that an economist has already won the Nobel for saying that the informal household sector represents an un-measured part of the GDP. A UN report some years ago estimated it at over eleven trillion dollars a year!

The starting point in the factory floor quality management for example is the process known as 5-S, which tells us to clean the workplace first, put everything in its proper place, mark and designate places and bins correctly, get the right tools for the job, and clean up afterwards and so on. The breakthrough here is that, unlike in the past, the person doing a task is charged with keeping the machine clean and looking after quality. "Put everything back in its place" reminds me of my grandmother for whom it was a lifelong refrain. "Let your hand do what the eye tells you must do" she used to say, meaning that you should keep an eye out for "deviation from standard", and most important of all, not wait to be told! No doubt, as she was married at 13 and had not gone beyond the fifth grade in school, this sound philosophy of managing came down to her not from books but through other women managers before her, an endless line of mothers and aunts stretching back into history.

The second aspect of human relations is a women's speciality. Here women manage the age-old paradox of management much better, juggling praise and criticism expertly; and never leaving anything to chance or taking it for granted, erring on the side of making sure at any cost rather than assume others will find a way. "We trust, of course," Mikhail Gorbachov is supposed to have said of the Soviet attitude to anything, "but we verify".

Get the job done

This would be cynicism for many men, but a woman finds nothing wrong in it. She knows from experience that with the best of intentions, the men in her life repeatedly say, "Oh leave it to me" and then come up with creative excuses for not remembering to order the gift, buy an essential medicine or ring their mothers on their birthdays. Intention and competence do not equal achievement — and she knows this to be an axiom. So if asked to choose between the directive and supervisory style on the one hand and the supportive, coach-mentor style, the woman loses no sleep over the choice. The latter is for the birds; get the job done first, the punditry can come later (at seminars!) is her general attitude.

Readers will have realised that there are many men too who lead by the so-called women's style of managing described above. That is exactly my point: there is a yin and yang in management and some men adopt the one that falls far more naturally in the realm of their "better half" and they manage the better for it. It is quite possible that the strong-willed go-getting CEO's have been brought up by a very capable and active mother and learnt from them unconsciously. To me this alone can help explain the popularity of the genre of leadership that was made so popular by Jack Welch of General Electric, the U.S.

Who knows, since tough times are more common that good times, perhaps what the world needs is more `feminine' managers among men too.

Planning prevents panic

2006-07-16T15:52:00.000+05:30

16 interesting points from a book review by D Murali of Business Line of W. Neil Gallagher's "The Money Doctor's Guide to Taking Care of Yourself when No One Else Will," from Wiley (www.wiley.com)

Good habits pay off for the elderly.
A thorough annual check-up.
Run.
Eat fruits and vegetables, and low salt and fat.
Restrict calorie intake.
Drink at least 8 cups of water a day.
Read.
Walk.
Don't watch TV.
Drive defensively.
Build a desire to win.
Build strong relationships.
Get involved... stay involved.
Laugh long, loud, and often.
Give and forgive.
Stay positive.

I reviewed my performance and found that even by a process of liberal interpretation, I follow only 7 out of 16 [just passed ?]. How about you? Regards.

- Dilip.

Source: Business Line, Dec 11, 2005.

D. Murali

CHECK if you agree with the following statements: "I don't want to spend my final days in a nursing home. I don't want to be on welfare (aid). I don't want my family's health and finances ravaged because of my aging and death."

If yes, here is W. Neil Gallagher with "The Money Doctor's Guide to Taking Care of Yourself when No One Else Will," from Wiley (www.wiley.com).

First, get rid of the GSP syndrome, he urges. The abbreviation means, "Government is good. Society is bad. People are helpless." GSP is silent and systemic, contagious and fatal, warns the author. "With GSP, you give up. You see everyone else giving up. You have no control over your future (so you think). You surrender life and death, health and family to government." Shake it off, because "you can retire safe, early, and happy and healthy," exhorts Gallagher.

Chapter 1, on `nursing home abuse', can frighten you from falling sick. Common abuses include "untreated bedsores, inadequate medical care, malnutrition, dehydration, preventable accidents, and inadequate sanitation and hygiene," informs the author citing a recent Congressional report.

"Thirty per cent of nursing homes across the US cited for 9,000 instances of abuse." Wonder what our numbers are!

The US Government Accountability Office (GAO) classifies under `crimes of omission' failures in feeding the patient, taking him/ her to the bathroom, changing bandages and so on.

"The GAO found that the primary causes of death in nursing homes are dehydration and malnutrition." Go for LTC or long-term-care insurance, suggests the author, because "at 65+ you have a 50/50 chance of needing LTC."

Make it to 98 and love and live every minute, with tips that fill an entire chapter. "Good habits pay off for the elderly," notes Gallagher.

On the physical side, suggested strategies are: get a thorough annual check-up; run; eat fruits and vegetables, and low salt and fat; restrict calorie intake; `be accountable for your eating habits'; choose a suitable version of fast; drink at least 8 cups of water a day; `keep that sexy smile and take great care of your teeth'; do slow and low weightlifting; read, walk, and don't watch TV; and drive defensively.

On the emotional side: "Build a desire to win. Embrace the perspective. Build strong relationships. Get involved... stay involved. Laugh long, loud, and often. Give and forgive. Stay positive. Take control. And dump the guilt." Your `intellectual' survival tactic should be to `learn and grow every day' because `your mind is a muscle'.

Gallagher lists `powerful strategies that protect profits and provide peace of mind' in a chapter called `the plan'. There are `six savage attacks on your money', he cautions. "Any one of these attacks can rip you apart: 1) public disclosure of your finances and personal business; 2) taxes at all levels; 3) lawsuits; 4) government seizure; 5) market risk; 6) inflation and the escalating cost of living." Check if you have the `bullet proof documents' to shield yourself from these attacks; remember, "Planning prevents panic."

A vicious circle that hits you on the face is `caring for momma -{gt} fatigue -{gt} resentment -{gt} guilt'. Statistics show that the caregiver dies before the care receiver, `from sheer exhaustion', wearing out `emotionally, physically, and financially'.

A practical truth, therefore, is: "You shouldn't assume your kids will take care of you," because they lack energy, assets and time.

"Another misconception people have is that their spouse will take care of them, and vice versa."

To check if you can really take care of your spouse when you are both older and weaker, Gallagher suggests a quick test that you can try right now: "Tell your spouse to lie in bed, as dead weight: a sack of cement. Lift them out of bed. Guide them to the bathroom... " What's the result? Can't do it?

The final chapter is devoted to the caregiver. "Just like child-rearing, caring for an elder adult is a full-time job." Surveys show that many caregivers are men, 80 per cent assist relatives, and almost one in five caregivers provide 40 or more hours of care per week. As caregiver, you need to pay attention to attitude, Gallagher writes.

Commitment is must. Also, realise that "what you've got and where you are is plenty good enough to build again."

Caring for the old will be one of the major challenges, forecasts the author. Even countries that enjoy a younger demographic profile have to confront the problem later. But the reality is that there is no one at home to look after an aging, infirm parent, rues Gallagher.

He cites Robert Frost's definition of home in `The Death of the Hired Man' as "the place where, when you have to go there, they have to take you in." Now, if you went there, chances are you'd find nobody home, quips the author.

Essential read as a `safety net'!

BookValue@TheHindu.co.in

Awesome simplicity - Tribute to MS

2006-07-16T15:48:00.000+05:30

M.S. Subbulakshmi has passed away but her legacy, of humility in success, continues to serve as an example for younger artistes, says Vatsala Vedantam in a moving tribute to MS.

Regards.

- Dilip.

Source: The Hindu, Dec 11, 2005.

VATSALA VEDANTAM

It is a year since M.S. Subbulakshmi passed away but her legacy, of humility in success, continues to serve as an example for younger artistes.

I MET M.S. Subbulakshmi for the first time in 1943, in a dingy, run down theatre called Olympia Talkies. It felt great to watch a "talking movie" in those days. And this was a "singing movie". There she was, dangling her legs from a tree branch and singing Anandam en sholvenen... with total abandon, while her screen paramour GNB hovered in the background. My infant mind was thrilled beyond words.

I saw a picture of the same dazzling girl hanging over a doorway when I went to interview MS for an article in 1993. She had travelled a long way during those 50 years. So had I, and those of my generation. From the days of sitting glued to the HMV gramophone and listening to her high-pitched voice singing Bharathiyar songs to her graduation into the rich cadences of Bhaavayaami and Shambo Mahadeva on long playing records. We drenched ourselves in Annamacharya kritis on audiocassettes; and, still later, melted with her immortal Kurai ondrum illai.

Transformation

Those of us who grew up with MS witnessed her transformation from a charming debutante with a voice that knew no limits to a graceful artist who took you "one step nearer to God". We were the fortunate ones who were able to experience something "that happened once in a millennium".

When I finally saw Subbulakshmi in flesh and blood in 1993, I was struck by her awesome simplicity that left you weak kneed. Her homely offering of sukku kapi — with the recipe thrown in — may have come from any housewife in Chennai and not from a superstar who took the world by storm with her music. Her naïve confession of feeling nervous before a performance spoke of humility rather than lack of confidence.

A statement supported later by her accompanists who recalled her asking them minutes before a concert: "Do you think I will sing well today?" Maybe, it was this innocence of her own eminence that set Subbulakshmi apart from others. Her multiple achievements in cinema and music, her rise to fame from small town girl in Madurai to the United Nations forum, are well known. I prefer to recall more intimate moments of graciousness shared by those who knew her personally. People like Semmangudi who was not just her guru but also a bridge crony of her husband Sadasivam. The veteran musician often recalled how she would send the car punctually at 2.00 p.m. every day to pick up the foursome who played cards with her husband while she herself acted the perfect hostess.

Or, her adopted son's teenaged friend who could not forget the delectable dosas she would make for two hungry boys. Years later, she would come all the way from Madras to Bangalore just in time for his wedding to sing Sita Kalyaanam Vaibhogame while the swing swayed to her music and the entire wedding hall listened in hushed silence. "That was MS," according to Acharya, the lucky recipient of this warm gesture.

Then, there was "Papa" Venkataraman, the sound recordist for the Hindi version of Meera. He would describe her affectionate concern for the Pandyan brothers and other technicians at Sree Sounds Studio where the film was made. And, her amazing patience with Ellis Dungan who directed the film, or her childlike glee when N.S. Krishnan and T.A. Mathuram performed Villu Paatu at Kalki Gardens.

Difficult times

"She was such an extraordinary person that I used to wonder why someone had to cover my eyes and warn, `Don't look at her!' when this 16-year-old girl entered the Music Academy in Madras for the first time in 1932." Amazingly even her close acquaintances have always been reluctant to talk of her early years. They prefer to shroud it in secrecy although it is that same "unmentionable past" that made her a Bharat Ratna. In early 20th Century Tamil Nadu, with its conservative and often hypocritical attitudes, it was not surprising that a Brahmin family would admonish a son for walking near Hanumantharayar Koil Street in Madurai where Veena Shanmughavadivu lived. My brother-in-law Narasimhan, who spent his early years in Madurai, never forgot how his mother thrashed him for stealing past the musician's house to see her and her lovely daughter, Kunjamma, practise on the veena. Finally, it took a Gandhi and a Kanchi Periyaval to recognise Subbulakshmi as a woman out of the ordinary.

Yet, unmindful of the calumny and criticism heaped on her by an uncharitable press and a still more uncharitable society, MS bravely travelled that long and difficult road from Madurai to Rashtrapathi Bhavan. We too have come a long way from the days when even a great vidwan like Ariyakudi Ramunuja Iyengar admonished All India Radio for paying him the same performing fee as "that woman". It has taken us just half a century to realise that "that woman" was one in a million with her incredible singing talent, her scholarship in music, her purity of diction, her bhakti in life and performance.

Venkatachalam would ring me whenever MS and Sadasivam visited his family in Bangalore. On one occasion, some of their old friends like Nittoor Srinivasa Rao, Veena Doraiswamy Iyengar and others were present. It was a great photo opportunity. Seated in a corner of his living room, I was taking pictures when she walked up and said: "Why don't you also sit with us for a photo?"

She asked Athma to take my camera and moved over to make place on the sofa. That picture next to MS, which she later autographed, is a prized possession. That was when I told Sadasivam that it would give me great pleasure to write a book on her. "The pleasure may be yours, but the risk is ours," he retorted. Then, more kindly, "Write whatever you want after we are both gone!"

It may take generations before we find another Subbulakshmi. One year ago today, she vanished from our midst. But she has left a priceless legacy for younger artists. The legacy of humility in success.

No expense is too small to record

2006-07-16T15:31:00.000+05:30

"Getting a loan from a family member or a friend can be a good way to ruin a great relationship. If you do ask someone you know for a loan, help protect your relationship by working out all of the terms of the loan and formalising them in writing, just like you would if you were borrowing from a bank. ..... It can be hard for many people to admit that they are having financial trouble. However, if you are having problems keeping up with your mortgage, it's important that you swallow your pride and face facts," quotes Mr D Murali of Business Line, in his review of Howard S. Dvorkin's Credit Hell: How to Dig out of Debt, from Wiley (www.wiley.com).

- Dilip.
______________________________

Source: Business Line, Dec 18, 2005.

D. Murali

CHECK if any of the following statements apply to you: "More than 15 per cent of your take-monthly home pay goes toward your debts. You can only afford to pay the minimum due on your credit cards each month... You have little or nothing in savings."

And: "Debt collectors are calling you about your debts. Some of your creditors are threatening you with lawsuits. You and your spouse (or partner) are fighting over money. You are constantly worried about money."

If yes, look for help in Howard S. Dvorkin's Credit Hell: How to Dig out of Debt, from Wiley (www.wiley.com). But the solution involves "hard work, self-discipline and some sacrifice." And Chapter 1, titled `Assessing the State of your Finances', reminds you not to be so naïve as to expect things to fall in place fast.

The author is a CPA and a certified credit counsellor. And his style is direct and down-to-earth. For instance, he writes: "It can be hard for many people to admit that they are having financial trouble. However, if you are having problems keeping up with your mortgage, it's important that you swallow your pride and face facts."

Work first on the essential money management tool — a budget. Before that, track your spending for a month, Dvorkin advises. "No expense is too small to record in your notebook because small expenses will eventually add up to big ones." The notebook should be `small enough to fit in your purse or pocket'.

A template given in the book helps classify expenses as fixed, variable and periodic. Include in the worksheet "any debt payments you should be making but may not be able to make because of lack of money." Where exact numbers are elusive, let estimations follow the maxim, `understate income, and overstate expenses'.

Share the budget worksheet with the family, says the author. "Involving your children in the process is a good way to teach them to be responsible money managers as adults."

When you can't make ends meet, the author suggests the selling off of non-essential assets such as extra vehicles, furniture and so on, to fund the repayment of the highest interest-bearing debts. "If you can't stop spending even though you know you should, you may have an emotional problem with money. Debtors Anonymous (www.debtorsanonymous.org) can help."

A pawnshop loan is an expensive source of money, cautions Dvorkin. "Not only will you have to leave the item you pawn at the pawnshop but also the pawnbroker will only lend you 50 per cent to 60 per cent, or even less, of the item's resale value." The rate of interest may work out to 120 to 240 per cent p.a.! Also, never write a cheque when you know you don't have the funds to cover it.

Among the suggestions to reduce spending is this practical one: "Get rid of your cell phone if you rarely use it or if you could get along without it. Having a cell phone is convenient, but in most cases, that's exactly what it is — a convenience, not a necessity." Another suggestion reads: "Don't shop for the fun of it or to pass the time away. Purchase only what you need. Spending money should not be a hobby!"

Try to purchase all the groceries you need for the week by making just one trip to the store, counsels Dvorkin. "The more trips you make, the more you are apt to spend." Buying in bulk is okay, but "be careful about purchasing perishable items that may go bad before you have a chance to consume them."

You don't need life insurance if you have no dependents, advises the author. Pay attention, however, to `health insurance', he urges; because it is risky, "both financially and health-wise" to be without one. Do you know that medical bills account for a big chunk of bankruptcies?

One of the money-saving ideas is the exhortation to get rid of vices. "For example, if you are a smoker or drink too much, stop. You will save money and benefit your health at the same time." There can be no two opinions on that.

Negotiate with your creditors and restructure the debt repayment, suggests Dvorkin. "Don't agree to pay more than you can afford. If you do and then you can't make your payments, your creditors may not be willing to negotiate with you again." Consolidate your debts, so that you have one large debt rather than multiple debts.

"Getting a loan from a family member or a friend can be a good way to ruin a great relationship," alerts the author. "If you do ask someone you know for a loan, help protect your relationship by working out all of the terms of the loan and formalising them in writing, just like you would if you were borrowing from a bank."

Lifeboat of a read to save yourself from sinking!

BookValue@TheHindu.co.in

Follow the golden mean

2006-07-16T15:16:00.000+05:30

Physical activity is the best way to lead a healthy life, says Aruna Chandaraju in this interesting article in The Hindu. Highlights -

Lack of physical activity (PA) is estimated to cause up to 80 per cent of premature coronary heart disease (CHD) and up to 90 per cent of Type 2 diabetes.
It is also among the major causative risk factors for hypertension, cerebrovascular strokes, osteoporosis, obesity and many other chronic diseases and conditions.
Regular PA substantially reduces risk of dying of CHD, while reducing the risk for stroke, cancers, diabetes, and high BP.
It also helps control weight avoiding dangerous obesity; contributes to healthy bones, joints and muscles; helps relieve arthritic pain; reduces falls among older adults.
Walking is the easiest and most cost-effective exercise and useful for all age groups.A half-hour brisk walk every day suffices to prevent diabetes, especially when combined with some stretching exercises, yoga or meditation.
Walk at least part of the journey to work, climb stairs whenever possible spurning the lift, do physically demanding household chores, walk down to that nearby store or friend's home or colleague's cabin.
The other operative word is Balance. Unaware of this, many people overdo or under do PA and then drop out, disappointed by the lack of results. Just Move It. Your body and mind will Just Love It.

After reading this article I realised that I am not doing anything which is good for health ! Hope you are much better than me in following the golden mean.

Best wishes & Regards.

- Dilip.

Source: The Hindu, Nov 20, 2005

ARUNA CHANDARAJU

Physical activity is the best way to lead a healthy life. Simple tips to help you move and keep moving.

IT takes 20,00,000 lives every year, worldwide, and most of us don't even know it is a killer. Probably because one doesn't have to catch a deadly virus or terrible infection or come under a vehicle to die this way. In fact, you don't have to do anything for this.

You become a victim by doing nothing. Quite literally. Sounds absurd? Then check this. Physical Inactivity contributes annually to two million deaths globally, according to the World Health Organisation. Again, in combination with improper diet, and tobacco use, the lack of physical activity (PA) is estimated to cause up to 80 per cent of premature coronary heart disease (CHD) and up to 90 per cent of Type 2 diabetes. An alarm bell is ringing loudest for India considering we are in the grip of both these epidemics.

Risk factors

Dr. B. Somaraju, Hyderabad-based cardiologist, says many factors are responsible, but lack of PA is a major culprit. Not only is it a risk factor by itself but it also increases other risk factors like obesity and diabetes. Adds Dr. V. Mohan, Chairman, Madras Diabetes Research Foundation, Chennai: "Besides increased consumption of calories, sugar and fat-rich foods, the major causative factor is decreased PA. Our Chennai Urban Rural Epidemiological Study showed that the risk of diabetes was half in those who exercise regularly. It also revealed that less than five per cent of urban population in India today exercise regularly."

Contributing to this state of affairs are increased mechanisation and computerisation; use of elevators, automobiles/public transport instead of walking; and sedentary-lifestyle-promoting household gadgets including remote controls. Desk jockeys, couch potatoes, computer addicts, machine-dependants — whatever labels a sedentary lifestyle merits, it has serious implications.

There is overwhelming evidence that lack of PA and an unhealthy diet are among the major causative risk factors for not only CHD and diabetes but also for hypertension, cerebrovascular strokes, osteoporosis, obesity and many other chronic diseases and conditions. Under stress, levels of cortisol and adrenaline increase in the blood, both responsible for general tear and wear of the body, leading to psychosomatic disorders like obesity, back pain, certain cancers, joint pains, peptic ulcers and certain types of headaches. Since PA reduces adrenaline and cortisol levels, the implications of physical inactivity are obvious.

Good news

Now for the good news. There is a way out. And that is to "Just Move It". Regular PA substantially reduces risk of dying of CHD, while reducing the risk for stroke, cancers, diabetes, and high BP. It also helps control weight avoiding dangerous obesity; contributes to healthy bones, joints and muscles; helps relieve arthritic pain; reduces falls among older adults. Dr. Purivsh M. Parikh, Prof. and Head of Medical Oncology, Tata Memorial Hospital, Mumbai reveals: "PA boosts the immune system and indirectly helps prevent cancer. Good PA is important for all cancers in general and lack of it leads to breast cancer." PA works by increasing oxygenated (oxygen-rich) blood to organs making them healthy since we inhale more than usual during physical activities.

So, just get up and go. If you want another reason, PA even improves mental and emotional health. Dr. C.R. Chandrashekar, Professor of Psychiatry, NIMHANS, Bangalore, reveals: "During PA, there is an increase of dopamine and serotonin levels in the brain. Both are associated with feelings of well being and reduction of negative emotions like anxiety, anger and sadness. In fact, after drugs, PA is a major prescription in all patients with psychosomatic disorders including depression which is the most common psychological disorder, and for anxiety disorders too."

PA also increases patients' self-esteem by increasing perceived energy levels, and positive affect. Dr. Somaraju says PA is of fundamental importance in heart disease because it is not only highly effective in itself but also reduces other risk factors like diabetes, obesity, cholesterol, and frustration and depression.

Regular exercise

The best news: PA need not be strenuous or prolonged for it to be effective. Walking is the easiest and most cost-effective exercise and useful for all age groups. Or, play a casual game of tennis and badminton a few times a week. Dr. Chandrashekar prescribes 30 to 60 minutes of regular exercise — walking, outdoor sports, or yoga.

Dr. Mohan says: "Regular stints of moderate exercise will do. A half-hour brisk walk every day suffices to prevent diabetes, especially when combined with some stretching exercises, yoga or meditation." Dr. Parikh's recommendation: "Ideally exercise for about 30 minutes per session with four such sessions a week. The idea is to ensure breathing is streamlined and pulse rate increases (to level based on age, height and weight)."

Also, include exercise in your daily life. Walk at least part of the journey to work, climb stairs whenever possible spurning the lift, do physically demanding household chores, walk down to that nearby store or friend's home or colleague's cabin says Dr. Somaraju instead of taking your car or using the phone. Spurn the remote, get on the stationary cycle/treadmill when watching TV, play with the kids...

However, those who want to enrol at gyms or do structured exercise must consult their doctor. And people with ailments must do so before even simple PA. Dr. Parikh says though PA helps prevent cancer, it is not recommended once the disease is diagnosed because it diverts energy from fighting cancer. "However, once the treatment is over, going back to reasonable exercise will help prevent recurrence of the cancer by promoting general health."

Regularity is a key word. All specialists say to be effective; PA should not be an occasional indulgence, induced by sudden bouts of guilt or health-consciousness. You have got to keep at it every day. Or at least five days a week. Dr. Somaraju says these 40-45 minutes can be broken down into two or three sessions of 20 or 15 minutes each.

Balance

The other operative word is Balance. Unaware of this, many people overdo or under do PA and then drop out, disappointed by the lack of results, lament doctors. So, what is that golden balance? Dr. Chandashekar offers a useful guide: "Record your resting pulse rate — it will be about 60 to 70. The right amount and quality of exercise will increase it by 20. A mild sweat on the forehead and armpits is another indicator. Conversely, anything that increases pulse rate by 30 or 40 means you are overdoing it. It will actually be counterproductive leading to what are the other indicators — exhaustion, muscle cramps and loss of salt from the body through excess sweating."

Ignorant of this, people take to PA but do slow walking, and then give up saying it didn't produce any results. Or plunge into very vigorous exercise, straining the body, and similarly drop out complaining it was too much of a strain and not worth it. Those who follow the golden mean, benefit and greatly so. In short: Just Move It. Your body and mind will Just Love It.

ILO moots work place norms for IT, BPO sectors

2006-07-16T15:05:00.000+05:30

The ILO specialist lamented that while risks triggered by degradation of indoor environment were pronounced in the case of sectors such as mining, metals, foundries and agriculture, buildings, which may appear fancy from outside, could also fail to protect the health of employees engaged in hi-tech areas, says this news item in Business Line.

When companies target exports, normally the potential client visits the Indian company's facilities. A good working environment (non exploitary), suitable security systems, proper ventilation, lighting , hygiene etc would be very useful to Indian companies in marketing their services better. To that extent, preparing ourselves (as per international standards) and complying with the law both in letter as well as in spirit, would be useful.

- Dilip.

Source: Business Line, Nov 23, 2005.

Our Bureau

New Delhi , Nov. 22

UNDER fire from various sections on labour-related issues, the woes of the BPO industry seem far from over.

In yet another salvo, a senior International Labour Organisation official said on Monday that the organisation is mulling a set of directives for call centres and IT service companies besides other industries, to improve the "hazardous" indoor environment conditions that prevail in many "fancy" buildings.

"The sectors such as IT, call centres, electronics and construction where employment is perceived to be high, the indoor environmental conditions are indecent, hazardous and in 90 per cent of the cases create air problems, which call for fresh directives to be put in place so that the internal working atmosphere is made employee-friendly," said Ms Ingrid Christensen, Specialist, Occupational Health & Safety, ILO.

She was speaking at an Assocham (Association of Chambers of Commerce of India) seminar on `Indoor Environmental Quality Certification.'

Ms Christensen said the ILO was looking at the issues of internal environment in sectors, which provide for higher employment but fail to offer conditions that are conducive to the health of employees.

She blamed the architectural design of IT and IT-enabled facilities in South-East Asia and India, saying that they did not provide for the adequate exit of pollutants.

Industry refutes claims: Dismissing ILO's views on the work environment in call centres and IT services firms, the Vice-President of the National Association of Software and Services Companies (Nasscom), Mr Sunil Mehta, said that Indian high-tech companies provide a world class infrastructure to their employees.

"All members of Nasscom have a credible track record in HR and work place conditions. In fact, we are going a step ahead and want to raise the bar through a self-regulatory organisation. Any breach would be investigated, and if proved, the companies could face sanction ranging from payment of fine to expulsion from the self-regulatory organisation and Nasscom," he said.

Epicenter Technologies' Chief Operating Officer, Mr Navanit, said that while the indoor environment in established BPO companies is comparable to facilities in developed markets, there may be concerns in smaller establishments with a 20-50 seat capacity.

"In fact, in most cases, customers do due diligence to check that physical infrastructure, security environment and work conditions are not compromised," he said, citing an instance where a client wanted to know the measures that the company had taken to protect its employees from the bird flu outbreak.

According to the largest third-party BPO firm WNS, given the employee-driven 24X7 nature of operations, the company had taken steps to ensure proper ventilation, lighting and hygiene within its facilities.

"It is a given in the BPO industry today," said the spokesperson of WNS, which employs 8,500 people.

10 simple steps to be safe in the digital era

2006-07-16T14:57:00.000+05:30

Capt Raghu Raman gives 10 simple steps in Rediff to be safe in the digital area.

Install the latest antivirus software, a personal firewall and spyware checker.
Never download or open attachments whose source you are not certain about.
Avoid checking mail or using credit card details online in cyber cafes.
Do not give away your residence phone number or cellphone number.
Get into the habit of destroying documentation regarding credit cards, such as receipts, bills, invoices or any documents that contain personal details.
If you are using broadband or working from home, ensure that your PC is hardened professionally.
Read about information security breaches by subscribing to some newsletters. In the case of many breaches, the only defense is knowledge.
Use two different passwords. One for mail, work and other important access and the other for routine proposes such as subscribing to sites, etc. But remember to switch between them when you start doing transactions after mere browsing.
Create a difficult-to-guess password by taking the first alphabet from each word of a phrase. For instance a password like 1at*eomc is constructed using a phrase "I am the star employee of my company."
Educate your children about the dangers of cyber crime.

Regards.

- Dilip.

Source: www.rediff.com

By Captain Raghu Raman

December 16, 2005

Cyber crime is here to stay. The PC revolution and the Internet boom in India have introduced new elements to cyber crime: elements that make cyber crime one of the most dangerous issues facing the modern society.

Children and innocent netizens are now being subjected to an unprecedented barrage of innovative cyber attacks: for instance, a rising number of phishing' attacks have emerged as a new, big threat of cyber security.

According to the Anti-Phishing Working Group statistics, approximately 5 per cent users fall prey to phishing scams. Spam, viruses, worms and other malicious code account for global losses of several billion dollars.

So how do you protect yourself from these attacks?

Here are 10 simple steps to cover you against more than 80 per cent of all the causes of information security breaches:

1. Install the latest antivirus software on your computer and never ever turn it off; install a personal firewall and spyware checker (all are available for free on the Net). To find them just do a search on the Net using the keywords: antivirus & free.

2. Never download or open attachments whose source you are not certain about. Even if the source is trusted, see if the content is relevant. If not, don't open attachment. Create another email ID which you use exclusively for subscription to sites. That will prevent spam from coming to your main ID. Some mail accounts allow you to create topic-specific email IDs that you can delink.

3. Avoid checking mail or using credit card details online in cyber cafes. It is next to impossible to be sure that it is safe. Even reputed café's such as those at international airports and 5-star hotels have known to be key-logged. As a matter of fact, open an additional debit card with a limit if you do want to transact online. This way, in the worst case scenario your damages are limited.

4. Do not give away your residence phone number or cellphone number. Be especially careful when you are filling in contest forms, coupons, free gift vouchers, etc. More often than not these are gimmicks to obtain your personal details. Don't believe it when they say the data will not be given to others -- it most certainly will be. Don't print these numbers on your visiting card.

5. Get into the habit of destroying documentation regarding credit cards, such as receipts, bills, invoices or any documents that contain personal details.

6. If you are using broadband or working from home, ensure that your PC is hardened professionally. This can also be done by yourself if you follow the next step.

7. Information is a reality of modern life: just like health or transport or communications. The point is that you need to know something about it, even if it's just some basics. Read about information security breaches by subscribing to some newsletters. In the case of many breaches, the only defense is knowledge. For instance, no technology could have prevented the phishing attack (wherein victims got mails seemingly from legitimate banks asking them to confirm their passwords and IDs).

8. Use two different passwords. One for mail, work and other important access and the other for routine proposes such as subscribing to sites, etc. But remember to switch between them when you start doing transactions after mere browsing.

9. Create a difficult-to-guess password by taking the first alphabet from each word of a phrase. For instance a password like 1at*eomc is constructed using a phrase "I am the star employee of my company."

10. Educate your children about the dangers of cyber crime. Children with their unbound curiosity and unmonitored access are the single most common victims of cyber crime apart from the enterprises. Ensure that the home PC is kept in a common place so that you can monitor what is going on.

The author is the CEO of Mahindra Special Services Group. He has over 17 years of experience in security of information.

Healthy after 30

2006-07-16T14:45:00.000+05:30

Monitoring our lipid profile on a regular basis and keeping a check on our sugar levels will give us a clear indication of what's going on inside our body. Doing an annual full body check up should definitely be on our to-do list post-30. After all there's only so much abuse our body can take. Our body is like a bank and if we look after it now and invest in it, we will get rich dividends in our later years, says SAMREEDHI SHARMA in this article in The Hindu.

So, have you started investing in it?

- Dilip.

Source: The Hindu, Dec 26, 2004.

Going on 30 and worried about fitness? SAMREEDHI SHARMA tells you how to fine-tune your body.

THIRTY is young, mature, stable, and halfway there — work-wise and family-wise. It's that in-between age where life is just settling down. It is precisely the time to look at the most important investment you can make right now — your health.

The human body undergoes constant change at all ages. After 30, we start losing muscle mass and after 40, bone mass declines. Tendons (which connect muscles to bone) and ligaments (which hold joints together) become less elastic and tear more easily. Given our current inactive lifestyle, it's necessary to give your health a serious thought.

Eat smart: Dieting is about options, not restrictions. Cutting calories should not always mean limiting the choices you have.

Try to eat at least 3-5 small meals throughout the day that will keep hunger pangs at bay. Eat according to the next three hours. If you know that the next three hours are going to be very busy eat complex carbohydrates like a brown bread sandwich with vegetables so that you'll have the energy to function and do not get too hungry.

If you find your sweet-tooth acting up make yourself a sorbet using a safe, sugar derivative sugar substitute like sucralose. Often while cutting calories we forget to nourish our bodies. Make sure you have variety of fruits and vegetables in your diet and include foods from at least three food groups at each meal.

Get active: While eating right and maintaining your weight are good, do give a thought to your joints and muscles. Muscles need to be worked to stay strong, if you don't use it you lose it.

So choose an activity — walking, swimming, tennis, working out at the gym, cycling or even dancing. Stick to it or better still keep switching from one activity to another. Your body will welcome the challenge.

Moreover, working your muscles constantly will not only raise your metabolic rate but also prevent your muscle mass from age related decline.

De-stress: Stress becomes a habit with most people. We teach ourselves stressful behaviour letting ourselves believe it will change as we grow older. Ask yourself if you really see it happening?

Just as we make stress a habit, we have to also teach ourselves to de-stress. Most people function like machines through the year thinking: "I'll unwind when I take my annual vacation". That is the worst thing you could do to your body.

A recent study shows that it is necessary to unwind each day and also in the middle of a stressful time to prevent the harmful cumulative effects of stress.

So the next time you have a major presentation/meeting, calm down take deep breaths for at least one minute. Remember getting stressed will not help, it will only harm.

Health check: It is not surprising to hear of people in their twenties suffering from blood pressure or people in their thirties having heart attacks.

While your genes cannot be altered, monitoring your lipid profile on a regular basis and keeping a check on your sugar levels will give you a clear indication of what's going on inside your body. This way any unnatural changes can be recognised and maybe corrected early.

This is where your friendly sucralose sugar substitute comes in handy. A few teaspoons of sugar when substituted with sucralose can help control obesity and the sugar levels easily.

Doing an annual full body check up should definitely be on your to-do list post-30. After all there's only so much abuse your body can take.

Stay strong, get supple: Usually people working with weights ignore flexibility training and vice versa. A balance between the two will keep those joints flexible and your bones and muscles stronger so that your body is a better shock absorber. Strength training (training with weights) makes you more toned.

Toned muscles are more "compact" so you look smaller (read thinner!). It also gives you an after burn i.e. keeps your metabolism raised for 12 hours after the workout so you burn calories even at rest. Stronger muscles also mean better stamina.

So while you progress in every aspect of your life don't neglect good health. Make it a priority! Your body is like a bank and if you look after it now and invest in it, you will get rich dividends in your later years!

The writer is a nutritionist and fitness expert. E-mail her at sizewise@rediffmail.com

Living with diabetes

2006-07-16T14:36:00.000+05:30

I am 79 years old and have lived with diabetes for several years now. With early diagnosis, simple life style adjustments, taking regular medication, daily exercise, and monitoring, my quality of life has not diminished in the least over the years, says Achal Ranganathan in a first person account in The Hindu.

All these tests costs some money atleast. To that extent, this is meant for people who have money to spare for their health. For the poor, well Lord Govinda is always there [or Lord Jesus or Allah, etc whichever God you believe in] says Dilip.

________________________________________________

Source: The Hindu, Nov 14, 2004.

A first person account by ACHAL RANGANATHAN.

TODAY is World Diabetes Day. Ironically it is also my birthday and when I was diagnosed with diabetes a few years back. It started rather innocuously when I went for a routine medical check-up, which included blood and urine tests.

Strict regimen

In my case, due to early detection, my diabetologist was able to follow a holistic approach. He laid down the following regimen for me: Regular monitoring (at six/eight week intervals) of Fasting (FBS) and Post Prandial (PPBS).

In this connection, it is important to note that the range of values varies with age. What is normal for a young person may not be normal for an older person with a heart condition. A single episode of Hypoglycaemias could precipitate a stroke. Also, in the assessment of diabetic control, blood sugar values in isolation are not adequate as these vary from day to day.

Glycosylated Haemoglobin (HbA1c) test gives the average of blood sugar in the last 10 to 12 weeks from a single blood sample, and is a better indication of diabetic control over an extended period. Here again there are normal ranges, and ranges which demonstrate "good control" in a diabetic.

In a urine analysis, sugar is not the only component to be checked. Protein, acetone, albumin, bile salts are also checked once in two months to evaluate kidney functioning.

A complete blood investigation and E.C.G is recommended once every six to eight months to evaluate cholesterol, creatinine, sodium, and potassium to ensure that diabetes has not affected the heart.

An eye examination is called for once a year to ensure that diabetes has not resulted in retinopathy, which could lead to blindness.

Strictly follow the medication of oral hypoglycemic drugs prescribed. A word of caution — self-medication, or increasing the dosage of drugs after feasting on sweets could lead to hypoglycemia!

Diet and exercise

While ensuring that there is no sudden weight loss, daily calorie values prescribed by the dietician should not be exceeded. Avoid sugar, jam, honey, tinned foods, chocolates, soft drinks, beer, sapota (chikku), mangoes, grapes, white bread, cornflakes, tubers, and green bananas. [Dilip :- The writer has mercifully recommended some things atleast to eat.] The following are recommended: cucumber, onion, garlic, green vegetables, spinach, and whole wheat bread.

Walk daily for 30 to 40 minutes in pollution-free area [Dilip:- Is there an area without pollution? Might be meaning early morning walks in Marina or Kalakshetra?]

I am 79 years old and have lived with diabetes for several years now. With early diagnosis, simple life style adjustments, taking regular medication, daily exercise, and monitoring, my quality of life has not diminished in the least over the years.

IT professionals callous about mobile security: Survey

2006-07-16T14:28:00.000+05:30

Now-a-days most of us wouldn't be able to function effectively without mobiles. However, with so much information stored on them, it's essential to secure them. The advice of the experts is secure it, or don't use it!

- Dilip.

Source: Business Line, Nov 24, 2005.

[By Pratap Ravindran, Pune]

A THIRD of IT professionals using mobile devices such as PDAs and Smartphones don't use passwords or any other security protection - and yet three out of ten of these sloppy handheld happy users store their PIN numbers, passwords and other corporate information on them, according to the results of The Mobile Usage Survey 2005, conducted for the fourth year by Pointsec Mobile Technologies and SC Magazine.

Pointsec Mobile Technologies AB, founded in 1988, is a wholly-owned subsidiary of Protect Data AB, publicly traded on the Stockholm stock exchange, and the worldwide de facto standard for mobile device security.

The company is introducing in India a range of enterprise security products which ensures the integrity of intellectual property stored on laptop and desktop computers and mobile computing devices.

The survey, conducted worldwide among 73 IT managers, with 34 per cent coming from companies with over 1,000 employees, says that corporate personnel store huge amounts of corporate data on their mobile devices, such as customer contacts, e-mails, passwords and bank account details as well as personal and private information such as friend's details, personal images and even PIN numbers, without giving much consideration to security.

Consequently, a lost PDA or Smartphone with no protection makes easy pickings for thieves, hackers or competitors and could enable them to steal identities and get at corporate information. This could have a huge impact on customer confidence and cause an organisation to breach data protection legislation or a company's reputation. "Since the survey was first introduced four years ago, awareness of the risks of storing unencrypted data on a handheld is still surprisingly low and needs to be improved to prevent security breaches. Seventy eight per cent of users do not encrypt the information on their PDA or Smartphone even though sensitive personal and valuable corporate information is being stored on these devices".

According to the survey, more people than ever before are losing their mobile devices: Last year, only 16 per cent had lost their mobile devices, while this year the percentage has increased to 22.

Mr Martin Allen, Managing Director of Pointsec, has been quoted as saying: "Handheld devices are now firmly entrenched in our corporate and personal lives and most of us wouldn't be able to function without them. However, with so much information stored on them, it's essential to secure them. We believe this survey shows just the tip of the iceberg as it has been conducted among IT professionals who are far more security savvy than most other handheld device users. Our advice is secure it, or don't use it!"

Says Mr Rene Millman, Online and UK News Editor for SC Magazine,"I can't believe that so many people wouldn't think to secure data on their PDAs. If you have a mobile device with sensitive data, it has to be secure. We have seen too many incidents where PDAs go missing or are stolen only for hackers to use information stored on the device to break into networks or steal money."

Move to provide high-speed Net over power lines

2006-07-16T14:25:00.000+05:30

If the technology succeeds, it might provide a cheaper alternative to the consumers wanting to reap the benefits of broadband. Broadband over power line is expected to be part of NTT 2005. Once an alternative source arises, due to competition the overall cost also goes down. To that extent, let us hope broadband over power line comes through and becomes successful. Regards.

- Dilip.

Source: Business Line, Nov 24, 2005.

Thomas K. Thomas, New Delhi , Nov. 23

YOU may not have a phone or a telephone line for accessing the Internet and still get high speed Internet using the power line reaching your home. The Government is formulating a policy to promote Broadband over Power Line as part of the New Telecom Policy 2005.

The Broadband over Power Line technology allows Internet data to be transmitted over utility power lines. To make use of Broadband over Power Line, subscribers use neither a phone, a cable nor a satellite connection. Instead, a subscriber installs a modem that plugs into an ordinary wall outlet and pays a subscription fee similar to those paid for other types of Internet service.

The technology works by modulating high-frequency radio waves with the digital signals from the Internet. These radio waves are fed into the power grid at specific points. They travel along the wires and pass through the transformers to subscribers' homes and businesses. Not much modification is necessary to the utility grid to allow transmission of Broadband over Power Line.

Operators, however, point out that the technology is yet to be standardised and many issues need to be resolved before consumers can benefit from it. For instance, they are not sure if the disorganised power infrastructure in the country will be able to transmit Internet without losing any data. This mode has been deployed in the US and in a few other countries, with varying results. While some experts say Broadband over Power Line represents an ideal solution for the rural areas, others fear that the technology will interfere with fire, police and other radio systems. In the US, amateur radio operators have voiced their concerns as well.

Reports, however, suggest that global firms, including Google, IBM and Motorola, see a huge potential in the technology and are pouring money into it. It is predicted that Broadband over Power Line revenue will increase from $57 million in 2004 to $4.4 billion in 2011. If the technology succeeds, it could provide a cheaper alternative to the consumers wanting to reap the benefits of broadband.

Related Stories:
`Broadband via power lines soon'

IT firms look for bigger bite of outsourcing pie

2006-07-16T14:11:00.000+05:30

IT firms are lobbying with US software vendors, to outsource creation of entire products to them. trends indicate that over the next five years, an Indian partner developing an entire product will become the norm. The companies, which moved towards the practically non-existent product outsourcing category in the late 90s, are now reaping rich rewards says this article in Rediff.

- Dilip

_________________________________________________

Source: www.rediff.com

Sreejiraj Eluvangal in Mumbai | December 08, 2005 04:24 IST

That a major chunk of revenue for the IT industry comes from outsourcing by US companies is well known.

This is set to grow even bigger with the emerging trend that is being witnessed in the industry. This could make revenues from service-based exports look like peanuts in comparison.

Taking advantage of the positive image the Indian IT sector has built up over the years, IT firms are lobbying with US software vendors, to outsource creation of entire products to them.

"Currently, just around 5 to 10 per cent of outsourced product development involves creating an entire product here in India.

But trends indicate that over the next five years, an Indian partner developing an entire product will become the norm.

The US company can then concentrate on things such as marketing and customer feedback.

From the current three per cent of our total software exports contributed by such outsourced products, we will see this segment become an equal competitor to exports of both branded products and IT services," says Gawri Shankar Subramanian, CEO of Chennai-based Aspire Systems.

The companies, which moved towards the practically non-existent product outsourcing category in the late 90s, are now reaping rich rewards. Annual revenue growth rates for most of the top 10 companies are in the range of 50 to 150 per cent for the last two years.

Though comprising a miniscule Rs 2,000 crore out of the nearly Rs 76,000 crore expected to be earned by software exports from the country this year, the segment has been doubling its revenues for the last three years.

Bangalore-based Aztec Software, one of the biggest 'pureplay' OPD companies, has seen its quarterly revenues rising at an average of around 25 per cent quarter-on-quarter for the last two years. The company, which had a turnover of just around Rs 75 crore in 2004, is likely to post Rs 165 crore profits this year, a jump of around 120 per cent.

Says Ajay Vij, vice-president, business development, with Aditi Technologies, Aztec's competitor from Bangalore: "Though we have been in the business for almost a decade, it is in the last three years that we have seen accelerated growth. The company has grown by around 45 per cent during this time."

What is driving these firms is the huge potential for growth. They point out that out of the $40 billion (Rs 180,000 crore) that product companies in the US are supposed to have spent on software development this year, India has barely scratched the surface by attracting just around Rs 2,000 crore.

"I would be surprised if we have tapped even a fifth of our potential customers," says Denis John, MD of Cochin-based Cordinant Technologies. "There are around 2,500 companies which own various software products in the US market and the biggest challenge now is to get them to trust us with their product-codes," says John, who was on one of his proselytising missions aimed at converting the reluctant American companies.

"Though the need to cut down on time-to-market is a factor forcing software vendors to outsource at least part of their product to be developed abroad, the bigger challenge is convincing them that their intellectual property will not be misused," he said. "The change is very much on," he adds.

The 70 percent solution

2006-07-16T13:58:00.000+05:30

Different companies follow different rules for success. These are Google's rules for managing innovation.

1. Don't be evil.

2. Spend 70 percent of your time on the core business, 20 percent on related projects, and 10 percent on unrelated new businesses.

- Dilip

______________________________

Source: www.money.cnn.com

Google CEO Eric Schmidt gives us his golden rules for managing innovation.
November 28, 2005: 11:32 AM EST

NEW YORK (Business 2.0) - Before he arrived at Google in 2001 to serve as adult supervision for Larry Page and Sergey Brin, Eric Schmidt was little known outside SiliconValley.

With his Ph.D. from the University of California at Berkeley and research stints at Bell Labs and Xerox's famed Palo Alto Research Center, he had a solid reputation among geeks, cemented by his championing of the Java programming language as Sun Microsystems' chief technology officer. And he faced his first real management test as CEO of Novell, the troubled software maker that has fought a long, difficult war with Microsoft.

These days Schmidt is on a stellar winning streak. How does he do it? One rule was handed to him by Brin and Page when he walked in the door: Don't be evil.

The other one is a formula he uses to stay on track while innovating: Spend 70 percent of your time on the core business, 20 percent on related projects, and 10 percent on unrelated new businesses. Business 2.0's John Battelle talked to Schmidt to find out how he and his colleagues live by those rules.

How has "Don't be evil" helped Google?

When I showed up, I said, "You've got to be kidding." Then one day, very early on, I was in a meeting where an engineer said, "That would be evil." It was as if he'd said there was a murderer in the room. The whole conversation stopped, but then people challenged his assumptions. This had to do with how we would link our advertising system into search. We ultimately decided not to do what was proposed, because it was evil. That kind of story is repeated every hour now with thousands of people. Think of "Don't be evil" as an organizing principle about values.

You and I may disagree on the definition of what is evil, but at least it gives us a way to have a very healthy debate.

Does Google have some kind of grand strategic plan for the new products it creates?

Virtually everything new seems to come from the 20 percent of their time engineers here are expected to spend on side projects. They certainly don't come out of the management team.

What do you do with your 20 percent time?

Well, 20 percent time applies to the technical staff. It does not apply to sales or management. Here's how it works for management: We spend 70 percent of our time on core search and ads. We spend 20 percent on adjacent businesses, ones related to the core businesses in some interesting way. Examples of that would be Google News, Google Earth and Google Local. And then 10 percent of our time should be on things that are truly new. An example there would be the Wi-Fi initiative.

How do you enforce that 70/20/10 rule?

For a while we put the projects in different rooms. That way, if we were in one room too long, we knew we were not spending our time correctly. It was sort of a stupid device, but it worked quite well. Now we have people who actually manage this, so I know how I spend my time, and I do spend it 70/20/10.

Larry and Sergey are now operating under 70/20/10 too.

They might spend their 70 percent time differently. Sergey, for example, has been looking at new ways of doing search quality, a new math around that. Larry has been pushing for some very new ad models. That would count in the 70 percent.

It's been more than a year since the IPO. How do you like running a public company?

On a personal basis, I've always preferred to be a private-company CEO. I've said that since I started here. But some things in life are inevitable. "What you cannot avoid, welcome" is an old Chinese proverb. Google had to go public, it was time, and so the correct response is to do the best job you can as a public company.

Golden years start with money worries

2006-07-16T13:47:00.000+05:30

Language may be different.

Culture may be different.

Religion may be different.

Country may be different.

But money worries are common to all !!! Regards.

- Dilip.

Golden years start with money worries

The Associated Press, The Boston Globe
FRIDAY, NOVEMBER 11, 2005

Baby boomers in the United States are feeling financially ready for their golden years, despite needing larger nest eggs and worrying about the fate of state-provided benefits, a study shows.

Shifting attitudes about retirement are also changing what people do after they leave a long career.

The study, conducted by Lincoln Retirement Institute, a research division of Lincoln Financial Group of Philadelphia, found that more than half - 55 percent - of retired boomers with an income of more than $75,000 per year or total financial assets of more than $350,000 reported they were determined not to outlive what they had saved.

"People are living longer and having healthier lives," said Tom Johnson, a spokesman for the institute. "They are recognizing that their money has to last as long as they do, but are dramatically underestimating how long they need their nest egg to last."

Johnson noted that as life spans get longer, retirement funds should get larger. "Women tend to be much more optimistic," Johnson said. "About half of the women in the survey felt they would reach their 90th birthday." Only 26 percent of men felt the same way.

While medical advancements mean boomers may live longer, healthier lives, survey participants cited "outlasting their money as their greatest financial fear," said Jon Boscia, chairman and chief operating officer of Lincoln Financial, in a statement released with the survey results.

Besides living longer, aging boomers are also spending more money. Two-thirds of pre-retirees and retirees who took part in the survey reported spending up to $80,000 over the past year. For retirees, that represented little or no decrease from spending habits while they were still working full time.

One-third of those surveyed also said they were working at least part-time, even though they considered themselves retired. (Boston Globe)

Talent hunt: IT firms under pressure to hike freshers' pay

2006-07-16T13:44:00.000+05:30

And so, one more tension for smaller companies to handle....Regards.

- Dilip.

______________________________

Source: BL, 14-07-2006

Talent hunt: IT firms under pressure to hike freshers' pay

Vishwanath Kulkarni

`Infosys Rs 2.7-lakh packet may set the benchmark for the industry'

Recruitment packet
The revised pay packet is about 12 per cent higher that the current payout of Rs 2.4 lakh per annum.
The company is planning to hire about 25,000 people this financial year and about 60-65 per cent will be campus recruits.

Bangalore July 13, 2006

As the scramble to attract best talent from engineering campuses intensifies, IT firms are seen under pressure to increase the entry-level salaries.

The current salaries offered by various IT firms ranges from Rs 1.8 lakh per annum to about Rs 2.5 lakh for the campus recruits.

Infosys Technologies Ltd has taken the lead in announcing a higher pay packet for campus recruits, which industry analysts feel could become the benchmark for the industry and may force other players to follow suit.

Infosys said on Wednesday that it would pay its entry-level employees about Rs 2.7 lakh per annum effective April 2007.

This is about 12 per cent higher that the current payout of Rs 2.4 lakh per annum.

The company is planning to hire about 25,000 people this financial year and about 60-65 per cent will be campus recruits.

Increased offer

"The market is getting strained. We had to make an increased offer to attract best talent and we could afford to do it," said Mr T.V. Mohandas Pai, head of human resources at Infosys.

"Typically, we used to hike the salaries once the campus recruits joined the company. But here we are making it in advance," he said.

Others may follow

Mr Gautam Sinha, CEO of headhunting firm TVA Infotech, said the Infy's move to hike freshers' salary could become the benchmark for the industry.

"One could see the other three to four top players being forced to follow Infy's steps in pegging the entry-level salary at Rs 2.7 lakh," he said.

Mr Sinha said there is a pressure to attract good talent from the top 150-200 engineering colleges.

"With huge targets for recruitment, almost every IT firm is eyeing the same kind of talent and the pressure is similar to that one witnesses at the IIMs," he said.

"Hiring from campuses on a large scale started since 2003 and we are in the third year of such massive recruitment," Mr Sinha said adding the trend was set by Indian tech services firms.

Further, over 1,25,000 engineering graduates were likely to be picked up directly from the campuses this year, he said.

Mr Pratish Krishnan, technology analyst at Emkay Share and Stock Brokers, said the hike in freshers' salary would not have any major impact on Infosys' margins.

However, the other domestic and MNC lead players will be seen following Infosys in increasing salaries for campus recruits, he said.

The long and short of IT: Loyalty bonus

2006-07-16T13:32:00.000+05:30

"If we think a ten-year tenure in a company is employee stickiness, then here's some news. In the current talent-short scenario, IT companies not only consider two-year-olds as loyalists but even reward them. The average stay period considered for loyalty bonus is falling drastically", says this article in Business Line.

Regards.

- Dilip.

______________________________________________

Source: Business Line, 14-07-2006

The long and short of IT: Loyalty bonus

Anjali Prayag

REWARDING TECHIES

Bangalore , July 13

If you think a ten-year tenure in a company is employee stickiness, then here's some news. In the current talent-short scenario, IT companies not only consider two-year-olds as loyalists but even reward them. The average stay period considered for loyalty bonus is falling drastically, say concerned HR managers.

At Scandent Solutions, for instance, techies working on some critical projects are eligible to earn loyalty bonuses on completion of one year in the organisation. Says Dr Pallab Bandhopadhyay, Chief People Officer of the company, "Though these techies are eligible for the bonus after a year, it gets credited after 15 months of service. This is to ensure that they stay for at least that period."

Retention bonus

Loyalty or retention bonuses are generally equivalent to one year's salary. So if competition wants to poach talent, then it has to make a competitive counter offer with a huge sign-on bonus, which may be a deterrent, he feels.

This changing concept of rewarding loyalty is seen in large Indian MNCs too. Sources at TCS told Business Line that the average loyalty age has reduced and the company is now rewarding employees who have completed 2.5 years compared to five years three years ago.

Mr Gautam Sinha, CEO, TVA Infotech, however feels that companies too are negotiating well. They stagger long-stay bonuses or loyalty bonuses over a three-year period, scheduling to release the largest chunk in the last instalment. Backloading loyalty bonuses this way has worked to their advantage, as employees tend to stay on for three years at least.

Says Mr C. Mahalingam, Senior Vice-President, Symphony Services, "Some companies are even opting for quarterly or half-yearly payouts and gradually increasing the stake over the months, thus making it difficult for competition to buy him out."

In-house training, the new mantra

2006-07-16T00:09:00.000+05:30

Catch them young and make them grow with you is the new mantra, says this rediff item.

- Dilip

_________________________

Source: www.rediff.com

In-house training, the new mantra

Barkha Shah in Hyderabad

July 07, 2006 02:37 IST

Catch them young, seems a half-baked ideology today. A refurbished mantra that has caught the fancy of IT and ITeS companies -- 'Catch them young and make them grow with you'.

While recruiting the right people at entry-level positions is no easy task, with fake resumes, lack of proper training and absence of soft skills adding to the recruiters' worries, making the right choices for middle and senior management positions is a difficult proposition.

Companies in this sector are setting up academies and training centres to grow leaders within their organisation and save them the grind of recruiting from outside. The fact that it helps to cut down attrition rates, is an added bonus.

Tarun Singh, director of Kenexa, a provider of talent management solutions, said, "It is possible to find people for middle-and senior-level management positions. It is just that culture acclimatization becomes an issue."

An adapter of this concept is Satyam Computer Services, which is setting up a School of Leadership to accelerate the process of leadership development and thereby ensure a clear succession plan.

Starting with 5 per cent of the total employee strength, Satyam's school will groom leaders via both classroom sessions and web seminars. The company has also tied up with Harvard Business School Publishing and Universitas 21 Global to conduct six-month certificate programmes.

Termed as Certificate of Global Business Leadership, the programme will hone the global business strategy skills of Satyam professionals over a period of three years.

According to B Ramalinga Raju, founder-chairman of Satyam, financial benefits alone cannot retain an employee. "Our focus is on empowering people and creating conducive environment for growth. We want to build a distributed leadership and Satyam School of Leadership is working towards this end," he added.

Integreon, a company operating in the knowledge process outsourcing space, has also set up an academy working towards the same cause. Apart from training freshers on the technology front, the academy runs modules for leadership development as well.

"A person joining at the middle management level takes a long time to learn the processes and functions of a niche company like ours. Besides, when an employee undergoes a training programme that will facilitate a promotion, he/she gets an incentive to be with the organisation," said Joyce Thorne, director (training), Integreon Academy.

Attaching to detachment

2006-07-15T23:45:00.000+05:30

Easy to read. Difficult to practice. Isn't it?

- Dilip.

____________________________

Source: The Hindu, 15-07-2006

Attaching to detachment

CHENNAI : Though it is imperative that an individual has to gain insight into one's essential nature, it is a difficult and demanding process. The human form is a combination of matter and spirit, and the unravelling of the essentially divine nature in us is the road to the development of one's personality, and this is a lifetime process, said Sunanda in a discourse on the Bhagavad Gita. Lord Krishna's detailed description of the body, mind and intellect combination that constitutes a human being is an eye-opener in this regard.

It is with the mind and intellect that a human being can understand the divine nature in him. The mind is a powerful force that can feel intensely but is not able to reason. Without any rhyme or reason when the mind tends to make demands like a child, it has to be kept under supervision lest it should lead itself towards destruction. Once we understand our mind, we should learn to keep it under check.

The body brings the world into it through the senses and the mind reacts to the experience. The body in turn receives the mind's instructions. But if one were to go through the experiences at the level of the intellect, then one would realise that attachment leads to sorrow and detachment leads to happiness. Our preoccupation with the world is such that when one is subjected to various experiences while driven to fulfil desires of different kinds, when every set of desires that is fulfilled leads to a fresh set waiting to be fulfilled, one is repeatedly cast into the endless cycle of birth and death.

Lord Krishna drives home the truth of the ephemeral nature of the world that can cause unstable joy and deep sorrow. The only way by which a soul can be relieved from this bondage is when one realises that attachment with the worldly objects is the cause of misery and then learns to detach himself from them.

Mind is the child and the adult the intellect. The yoga of knowledge insists on concentration and demands that the intellect has to be conscious of the focus of the mind. It is selfish desires that cause misery. Desireless action leads to self-realisation. A person with genuine love does not suffer. Vedanta helps us to develop our personality by cultivation of love and compassion and negation of selfish desires.

Digital lessons captivate students

2006-07-12T17:42:00.000+05:30

English, mathematics, science and social science come packaged in bytes Students initiated into the world of lessons with a click of the mouse The burden on teachers is lessened to a great deal. In short learning made fun, says this news item in The Hindu.

- Dilip.

________________________________________

Source: The Hindu, 23-06-2006

Digital lessons captivate students

Anasuya Menon

15 schools in Coimbatore have introduced the concept

English, mathematics, science and social science come packaged in bytes Students initiated into the world of lessons with a click of the mouse The burden on teachers is lessened to a great deal

LEARNING MADE FUN: Students browse through an animated lesson at a digital classroom session at G. Ramasamy Naidu Matriculation Higher Secondary School in the city. - Photo: K. Ananthan

COIMBATORE: Nouns and verbs take on the form of friendly cartoon characters. Numbers and geometrical figures sprout hands and feet as students watch them on screen. In short, study hours are transformed into pure fun.

With a few schools welcoming the concept of digital classrooms, subjects are now taught through computers. English, mathematics, science and social science come packaged in bytes and students are initiated into the world of lessons with a click of the mouse.

Nearly 15 schools in Coimbatore have introduced the concept of digital classrooms. However, the system does not do away with textbooks, blackboard and chalk. Says Seetha Poovaiah, Principal of G. Ramaswamy Naidu Matriculation Higher Secondary School, "it merely supplements the chalk and talk system." Students attend one hour of digital classes in each subject except Hindi and Tamil. Converting the entire system to digital mode involves a lot of investment in terms of infrastructure, she says.

By putting across an idea visually, students are able to retain it better than when it is read out to them from textbooks, says Prakash Kumar, Lead Facilitator of Future Schools, an organisation that lends technical support to schools for implementing the concept of digital classrooms. Also, a classroom has students who have different learning capacities. "Some may be good auditory learners while some others may be better with visual representations. Introducing the system to children right from kindergarten level would improve their grasping power by the time they enter high school," he says.

The burden on teachers is also lessened to a great deal as they can explain the concepts better through the computer animated version of the lessons. "Teachers feel that the time required to teach a subject is reduced considerably through this new method," Ms. Poovaiah says. However, the investment that goes into the implementation of the system remains a hurdle for most schools. Though having an audio-visual facility in each classroom would be ideal, schools could also do with one classroom converted to an audio-visual room with one TV or a 29-inch projector, says Mr. Prakash. Schools that have computer laboratories with ten to 15 systems could also utilise the systems for this purpose, he suggests.

My Lost World

2006-07-12T17:40:00.000+05:30

I think most of us would feel similarly when we visit our home towns (outside of the metros).
- Dilip
________________________________________________

Source: www.time.com

My Lost World

On a return to his provincial hometown, the author discovers how wealth is uprooting tradition and transforming India's way of life

By ARAVIND ADIGA / MANGALORE

The man had been watching me from his balcony for several minutes. He was curious, perhaps even a little worried. Finally, he came to his door and shouted, "What do you want?" I smiled apologetically. "I'm looking for my home," I said. "I think you're living in it."

With a frown, he listened. My family, I explained, had built a home here in the neighborhood of Kodialguttu just before I left Mangalore in 1991. This was the first time I had come back, and I wanted to see that house again. I had been searching Kodialguttu for half an hour, but I hadn't found it. In fact, I didn't recognize the neighborhood at all. Our house had been built on a paddy field, and you could see it from a couple of miles around. Instead of that paddy field, I now saw shopping malls, colleges, apartment blocks and a giant convention center sheathed in glass. The man's house was the only thing that looked anything like my old home. Had he bought it from my father? "I'm sorry," he said. "I built it myself eight years ago."

He put on a shirt, and together we went looking--in vain--for my house. I told him how bewildered I was by the way Mangalore had changed. It happened so fast, he said. In the beginning he had been proud that Mangalore was becoming a city, but now he gets confused. "Even we wonder sometimes what city this is that we're now living in," he said.

The pulse of India beats fastest in megacities like Bombay. But to understand how quickly the economic boom is creating a new country, you have to visit places that few foreigners have heard of--places like Mangalore. Back in 1991, when I left, about 300,000 people lived there. Since then its population has doubled. But that doesn't begin to describe its transformation. A decade of rapid growth has produced shopping centers and high-rise apartments--and most of the construction has taken place in the past five years. Old houses have been uprooted, replaced by bars and restaurants. The city's first multiplex cinema is about to open. A giant Smirnoff poster in the center of town announces, LIFE IS CALLING. In Indian cities like Mangalore, answering that call has brought consequences no one could have foreseen.

Located on India's southwest coast, Mangalore is hot, hilly and carpeted in coconut palms. When I was growing up, young men of all religions were united by shared values of hard work, enterprise and a desire to get out of Mangalore as quickly as possible. My brother left when he was 18. I left when I was 16. Many of those who got out never returned. There was no need to go back because the place never seemed to change.

But the past decade has seen extraordinary change--and extraordinary excess--in Mangalore. The fastest-growing industry is education. During the 1980s, higher education became the only way out of a broken system for many frustrated young Indians. The best doctors and computer engineers had a fighting chance of nabbing a lucrative job offer from Silicon Valley or Manhattan. So boys and girls throughout India streamed into colleges and institutes, where they studied calculus and organic chemistry with a passion that was probably unrivaled anywhere in the world. In recent years, the trend has accelerated. Mangalore had one medical college when I left; it now has five as well as at least four dental schools and 14 physiotherapy colleges. Some 350 schools, colleges and polytechnics are listed in its yellow pages.

A lot of the new colleges, predictably, focus on computer education. They tempt young recruits with the prospect of rewards that would have been inconceivable before the outsourcing boom. A few outsourcing companies, including tech giant Infosys, have opened shop in town. A flood of new money has arrived, thanks to outsourcing jobs, surging real estate prices and expatriate remittances. As a result, many locals have become middle-class, upper-middle-class or even rich. One ad for "premium luxury apartments" promises, IF YOU'RE IN LIMELIGHT, THIS SUITS YOU THE BEST. AND IF YOU'RE NOT, THIS PUTS YOU IN LIMELIGHT.

The city's new affluence manifests itself in subtle ways as well. Leo Fernandes, one of my old teachers, told me, "All the other teachers have bikes. Some even have cars. Only I still walk." Others spoke in a similar manner of a simpler life that was disappearing. I met neighbors, relatives and classmates, and each had done well in some way--one had his own house, another a car. But each also had some sorrow we could hardly have imagined. A Catholic friend's daughter had married a Hindu, and her family no longer spoke to her. A Hindu friend's daughter had been divorced by her husband. Divorce, extramarital affairs, interreligious marriages, homosexual flings--the doors of experience had swung open in Mangalore. The small city had grown up.

At the Nehru Maidan, an open space in the center of town, I watched kids playing cricket. Among the spectators was a group of drifters and homeless men, some carrying rolled-up mattresses. Most Mangaloreans I spoke with shrugged off the arrival of so many poor people and said they were itinerant immigrant workers, drawn by the construction boom. Nobody, it seemed, was ready to acknowledge that the city might have a permanent underclass that the boom had left behind.

For better or worse, Mangalore's fate is in the hands of outsiders. "Tier 2 cities" like Mangalore are believed to hold the key to the future of the Indian outsourcing industry. With wages rising in big cities like Bangalore and Bombay, tech companies must expand fast in lower-cost cities. But Mangalore shares the problem of other small cities with big aspirations: it's not an exciting place to live. "Lifestyle is a challenge when you're trying to get people from outside to stay here," Sudhir Albuquerque told me. Albuquerque, an Infosys executive, was taking me around the company's Mangalore campus, the most significant tech presence in the city. "There are things you can do here that you can't dream of doing in a big city like Bangalore. For instance, you can still go home for lunch, which I do on most days." But even that may become a thing of the past. Infosys is planning to move to a new, larger campus soon. From there, Albuquerque said sadly, he wouldn't be able to pop home at lunchtime.

Before leaving Mangalore, I decided to visit Court Road once more. For me, that small, steep, winding road--which connects my old primary school, St. Aloysius, to the high school up the hill--is the physical embodiment of a rite of passage. I had gone up this road as a 13-year-old on my first day at high school. From the top of the hill, I had a fine view of the city. Two decades ago, when you stood at a high point like that and looked down on Mangalore, the city's puny buildings all vanished, submerged beneath a canopy of coconut palms. That was when you felt a sense of contempt for Mangalore and dreamed of going somewhere big. But now you see concrete towers with dozens of metal rods sticking out of their sides, as if they were ripping a path for themselves through the trees. You cannot feel contempt for Mangalore now. You feel a sense of awe at how profoundly it has changed. But if you look a bit longer at the scene, you cannot avoid a faint inkling of something like fear.

Hello? May I know who's calling?

2006-07-12T17:38:00.000+05:30

Might be of use to those in the BPO sector.

Regards.

- Dilip.

________________________________________

Source: The Hindu, 19-06-2006

Hello? May I know who's calling?
S. Hariharan

JOB OPPORTUNITIES at a call centre are growing by the day, and undoubtedly, communication skill is the key factor in the job. One of the main objectives of call centres is customer satisfaction.

A customer care executive should possess soft skills such as interpersonal skills, social grace, team spirit, business etiquette, negotiation skills, presentation skills and behavioural traits such as positive attitude, intrinsic motivation and time management.

He has to be patient with aggressive customers, and amicable to amiable customer. This calls for social competence that comprises compassion, empathy, active listening, and appreciation of diversity, adaptability and flexibility and people skills with leadership qualities. Customers expect the executive to be proactive, professional and greet first.

A call centre executive has to be trained in stress, rhythm and intonation to be intelligible to the native speakers of English and understand their speech.

He has to remember that unlike Indian languages, English is stress-timed. Depending on the use, the stress shifts from one syllable to another syllable in words such as conduct (noun) and conduct (verb).

Tips to improve speech

While watching the television look at the lip movement of the speakers

Repeat what they say, with the same intonation and rhythm

Listen to the `music' of English

Make a list of frequently used words difficult to pronounce

Record these words and practice

Pay special attention to `s' and `ed' endings

Record your own voice and listen for pronunciation mistakes

You can change the way you sound if you are willing to put some effort into it.

To sum up, an executive at a call centre should have the physical skill of working in different time zones, mental skills of quick grasping and phonetic skills to understand and to be understood

(The author is Professor of English, Directorate of Student Welfare, TNAU, Coimbatore)

`Spot the shirt sleeves at work and learn from them'

2006-07-12T17:36:00.000+05:30

There are `doers' and `talkers' in every organisation and an intelligent new recruit can soon learn to distinguish between them.
While office meetings may be important in an organisation, very little useful information is actually shared.
A newcomer can listen carefully and spot who are the people who express practical ideas, based on facts and the realities of the market and who just spout high-sounding jargon.
Many seniors will only be too happy to share their knowledge and experience if you ask them.
Some senior managers are always interacting with subordinates, rolled up sleeves, and all while others rarely come out of their rooms.
The most competent person in any team will be valued, and perhaps, be the first to reap the rewards, says this interesting article in The Hindu.

- Dilip

____________________________________

Source: The Hindu, 03-07-2006

`Spot the shirt sleeves at work and learn from them'

Special Correspondent

`In an office where there is free interaction across the hierarchy, a newcomer can quickly learn the competencies required'

Bangalore: Spot the "shirt sleeves at work" and learn from them how things really happen in your organisation, says management expert and writer Susan Marshall in one of her books.

"There are `doers' and `talkers' in every organisation and an intelligent new recruit can soon learn to distinguish between them,'' says G. Chandrasekhar, former faculty of a management school. This becomes important because new recruits have already learnt the management theory or technical knowledge they can acquire while at college. What is now required is to see how systems actually work in real life.

While office meetings may be important in an organisation, very little useful information is actually shared. Most employees with really worthwhile suggestions want them to reach the top management directly and take credit for them.

But a newcomer can listen carefully and spot who are the people who express practical ideas, based on facts and the realities of the market and who just spout high-sounding jargon.

Corporate coaches suggest that the new recruit should try to cultivate the first sort while not exactly avoiding the second. Whether your company has a formal "mentoring" system or not, many seniors will only be too happy to share their knowledge and experience if you ask them.

"Too often many young management graduates think they have little to learn from a senior with less academic qualifications... they are making a serious mistake,'' says Prof. Chandrasekhar.

While the way companies function may sound uniform and similar in textbooks, in reality there are always significant differences, based on the kind of leadership an organisation has. Some senior managers are always interacting with subordinates, rolled up sleeves, and all while others rarely come out of their rooms.

In an office where there is free interaction across the hierarchy, a newcomer can quickly learn the competencies required, he says.

This comes out of a thorough understanding of what his or her specific role is, what is expected of them and how they can enhance the quality of their output. A fresher can learn the basics of such essential competencies in a few weeks and then build up on them.

The most competent person in any team will be valued, and perhaps, be the first to reap the rewards.

Beware of malicious attacks via hoax SMS

2006-07-12T17:35:00.000+05:30

The next time you get an unusual text message on your mobile confirming membership for a service that you never subscribed to, remember, rushing to unsubscribe it on a specified Web site could trigger off a malicious code, says this news item in Business Line.

Regards.

- Dilip

___________________________________

Source: Business Line, 29-06-2006

Beware of malicious attacks via hoax SMS

Our Bureau

Security risks associated with mobiles now a reality: Websense

New Delhi , June 28

The next time you get an unusual text message on your mobile confirming membership for a service that you never subscribed to, remember, rushing to unsubscribe it on a specified Web site could trigger off a malicious code. Websense Security Labs, which investigates advanced Internet threats, today warned of reports of users being lured to install malicious code via hoax short message service (SMS) messages.

"Victims receive a hoax SMS message on their mobile phones, thanking them for subscribing to a fictitious dating service. The hoax message states that the subscription fee of $2 per day will be automatically charged to their cell phone bill until their subscription is cancelled at the online site. Users who visit the site to unsubscribe from the service are prompted to download a Trojan bot," Websense said in a statement.

A bot allows the originator to control the targeted PCs remotely, for nefarious purposes including launching virus attacks. A computer that has `bot' software installed on it, through a malicious Web site or Trojan horse, is called a zombie. Such zombies are controlled remotely by the attacker using commands to which the machine's owner is oblivious.

"We are seeing the next evolution of blended threats exploiting a new attack vector - SMS over a mobile phone. There has been much talk of security risks associated with mobiles for years and they are now becoming a reality. As mobiles have become an essential part of our everyday lives, they are an extremely attractive lure for criminals who want to exploit their huge user base," Mr Surendra Singh, Head South East Asia and India, Websense said.

"Using a Web security solution is the first line of defence for any PC user so they do not access the infected Web site, but this particular incident shows just how difficult it is to prevent such a sophisticated social engineered attack using both mobile and Web," he added.

Taming The Dragon: SFL's China Foray

2006-07-12T17:32:00.000+05:30

Sundram Fasteners's successful China foray will give confidence to other companies.

Regards.

- Dilip.

______________________________

Source: Economic Times, Chennai, July 7, 2006

Taming The Dragon: SFL's China Foray

V. Balasubramanian

"My job is to go where there is a growth opportunity. Whether I succeed or not is a different thing altogether. I hope I will succeed and I will do everything to see that I succeed."

These were the words of Suresh Krishna, Chairman and MD, Sundram Fasteners, when his company moved into that most-challenging market, China. He was being closely watched by other industry captains whose anxiety stemmed from the fact that it was the first project by the Indian engineering industry in China.

It was also the first venture for the TVS Group in China. Well, SFL and Krishna have not disappointed themselves and the industry barons. The project was executed as per schedule and it's working over the last two years is in tune with expectations. And SFL's move germinated at a time when the industry was hotly debating the manufacturing power of – and in – Dragon Land. Krishna , an out-of-the-box thinker, quietly studied the market for two years. Plus, with an office in Shanghai , his company also tested the highly competitive market with exports.

Finally, in March 2003, he decided to 'crack' the market and the company's fully-owned Chinese subsidiary signed an MoU for settling up the project in Haiyan Economic Development Zone located 100 km off Shanghai. The initial pump-in was $ 5 million and they expect to step that up to $ 12.5 million. Krishna is known for his passion for quality and business excellence. He decided to go global only after SFL managed to stepped up its exports and emerged as the most cost-competitive fastener manufacturer globally.

Despite the bhoomi puja being done in July 2003, it did not have a smooth take-off. SFL lost precious four months due to the outbreak of the deadly Sars disease and was forced to delay the deputation of officials and construction of the plant. SFL also faced difficult times operating in a totally non-English speaking market with sharp differences in religion, custom, culture and food habits. "But, we took them as a challenge and the project went on stream within eight months in May 2004," recalls a senior official.

Initially, it did sales of Rs.1 crore a month which soon moved up to Rs.1.5 crore per month. Officials said it began with exports to the US and European markets followed by supplies to MNCs operating in China. It is now ready to supply to the Chinese companies.

Even while it was probing the Chinese market, SFL in December 2003 acquired the precision forgings business of Dana Spicer Europe and gained a major foothold in Europe. This year, SFL acquired German's leading fastener manufacturer, Peiner, a subsidiary of Textron. Says Krishna: "The acquisitions and investments are part of the company's globilisation strategy and to gain access to new customers and markets. We want to have beachheads in different markets to move forward."

During the year to March 31, 2006, SFL reported a turnover of Rs.1,063 crore. Export sales at Rs.323 crore constituted 30% of total sales. If you didn't know, SFL is the second largest exporter of auto components after Bharat Forge. Moreover, Suresh Krishna is of the firm view that like IT, India is sitting on a goldmine of outsourcing opportunity in auto components with automobile manufacturers in the US and Europe facing cost pressure.

"They have started sourcing components and suppliers from India and China. The next step will be contract manufacturing in the two countries. SFL wants to take advantage of this snowballing effect of outsourcing," he has pointed out.

RBI norms force banks to keep off venture funds

2006-07-12T17:23:00.000+05:30

Banks are excellent collectors of surplus money in the economy. While debt funding is what they do, they become exceptionally risk averse, when they have to do equity funding, mainly due to possible losses (high mortality rates) and their repurcussions especially CVC related issues. Bankers are used to security based lending and funding based on zero security, NIL promoters' contribution etc and then facing the music if the venture fails are avoidable hassles. In that context, VC funds serve a good purpose of being wonderful vehicles to channelise the funds available with the banks and use it for boosting the entreprenuerial activity by funding start-ups/early stage/growth stage investments, without the banks (and bankers) themselves getting involved in the investment/day-to-day monitoring/exit. RBI's decision would make fund raising difficult in future. Will it be reviewed?

Regards.

- Dilip.

_____________________________________________

Source: Business Line, 12-06-2006

RBI norms force banks to keep off venture funds

Priya Nair

No VCs please
The RBI has also asked banks to include investment in venture funds as part of their parabanking activities' exposure limit.
Investment in venture funds forms a negligible part of assets for most banks.

Mumbai , June 11

The high-return venture capital fund investment business is now virtually off limits for banks following the Reserve Bank of India's recent guidelines.

In the annual monetary policy in April 2006, the RBI included banks' investment in such funds as part of their total capital market exposure and assigned a higher risk weight of 150 per cent to such exposures.

The banks' aggregate exposure to capital market, including investment in equities and advances to brokers is already capped at 40 per cent of their net worth.

Now that venture funds are part of this 40 per cent, there is reduced scope for banks to invest in them. Mr Luis Miranda, President and CEO of IDFC Private Equity, said that the RBI guidelines have dampened banks' enthusiasm for venture funds.

"In our first fund in 2003, the banks' share was 70 per cent. In our second fund in 2006, it dropped to 10 per cent. LIC and banks are two of the big group of investors. Of these, one has been effectively killed. So, now we have to depend more on overseas investors."

The RBI has also asked banks to include investment in venture funds as part of their parabanking activities' exposure limit.

These investments would now be included as part of banks' investments in other banks and their own subsidiaries.

This makes it difficult for large banks with overseas subsidiaries, like Bank of Baroda and SBI, to invest in them.

A senior official with a public sector bank said, "Banks would prefer to invest in their own subsidiaries because it is a growth path and a means to establish presence. As against this, investment in a venture fund is merely a commercial return. So, banks will now definitely think twice before investing in a fund."

Investment in venture funds forms a negligible part of assets for most banks, according to official with a leading venture fund.

Domestic funds account for only about 15-20 per cent of the total venture funding in the country. The share of all banks put together may be in the region of 40-50 per cent of domestic funds, he added.

"I would estimate that investment by all banks together form just about $300-400 million."

However, he added: "We already felt the pinch in our fund raising. But we realised there was no point in trying to convince banks. While investment in venture funds may not make much sense for banks from the point of view of short-term returns, they could look at it in a more strategic way. There are linkages such as corporate finance, credit relationship with the company, and so on."

Mr N. Balasubramanian, Chairman and Managing Director of SIDBI, said that he that hoped the institution would be given some freedom, as it is a developmental institution.

"Regarding venture funds, now we are cautious and will invest only if it will definitely help developmental activities. Unlike a private equity fund, our purpose is not to make money. Therefore, we should be given some freedom and plan to take up the issue with the RBI."

SIDBI has been active in private equity funds like IDFC and ILFS, State funds, and its own SIDBI Growth Fund.

SIDBI Venture picks up stake in Indo Shell Mould

2006-07-12T16:47:00.000+05:30

SIDBI Ventures recently invested in Indo Shell Mould, Coimbatore. A news item on the same is appended below. Regards.

- Dilip.

_____________________________________________

Source: BL, 30-05-2006

SIDBI Venture picks up stake in Indo Shell Mould
M. Ramesh

Invests Rs 15.72 crore in auto component company

Chennai , May 29

SIDBI Venture Capital, the venture capital arm of Small Industries Development Bank of India, has invested Rs 15.72 crore in the equity capital of the Coimbatore-based Indo Shell Mould Ltd.

The Rs 158-crore company manufactures ferrous and non-ferrous shell moulded casting components for two-wheeler automobile industry, hydraulic industry and home appliances.

The company produces a wide range of auto components — its Web site lists 40 items.

Neither SIDBI Venture Capital nor Indo Shell Mould was willing to disclose the stake picked up by former, fearing that such disclosure would reveal the valuations of the company.

Mr Balaji Jagadeesan, Deputy Managing Director, Indo Shell Mould, told Business Line today that the company's exports were increasing. It wanted funds for expansion and SIDBI Venture Capital chipped in.

Mr Jagadeesan said Indo Shell Mould expected a 30 per cent increase in turnover for the current year.

Mr Ajay Kapur, Chief Executive Officer, SIDBI Venture Capital, said there was practically no venture fund in the country "in the under Rs 20-crore" category.

The investment in Indo Shell Mould has been made out of SIDBI Venture Capital's SME Growth Fund, a fund with a corpus of Rs 500 crore contributed by eight banks. The fund is one of the three under the venture capital company, the other two being National Venture Fund for Software and IT industry and SIDBI's Venture Fund.

Mr Kapur said the SME Growth Fund has so far invested in nine companies (involving commitment of Rs 120 crore), Indo Shell Mould being the latest one. Some of the other investments are Bravo Healthcare Ltd of Mumbai, a pharma company, and Carzonrent Pvt Ltd, a car rental company and a licensee of Hertz for India.

The National Venture Fund for Software and IT industry has so far invested Rs 100 crore in 30 IT companies.

Mr Kapur said the fund had completely or partially exited 11 of them and had got revenues 1.8 times the investment.

Carlyle Group raises $668 m for Asia fund

2006-07-12T16:45:00.000+05:30

"...The fund invests in promising private companies at an expansionary stage with solid growth track records across industry sectors in China, India, Japan and Korea....."

FYI. Regards.

- Dilip.
________________________________________________

Source: Business Line, 15-06-2006

Carlyle Group raises $668 m for Asia fund

Our Bureau

The fund invests in promising private companies across industry sectors in China, India, Japan and Korea.

Mumbai , June 14

Global private equity firm the Carlyle Group on Wednesday said it raised $668 million for Carlyle Asia Growth Partners III (CAGP).

The fund invests in promising private companies at an expansionary stage with solid growth track records across industry sectors in China, India, Japan and Korea.

Carlyle Asia Growth Partners is the third fund managed by the Carlyle Asia Growth Capital group, which has an aggregate committed capital of approximately $1 billion.

Three investments have already been made out of the new fund, including $20 million in Claris Lifesciences (a pharmaceutical company in India), $25 million in Credit Orienwise (the largest private credit guarantee company in China) and $27.5 million in Anxin Flooring (the number one manufacturer and distributor of solid wood flooring in China), a press release by Carlyle Group said here.

In addition to CAGP, the group also manages Carlyle Asia Venture Partners I ($159 million) and II ($164 million), which were launched in 2000 and 2002, respectively. Together, the two earlier funds have invested in 37 companies and realised 12 investments.

"We look for companies with outstanding management and track record, differentiating and proven business models, as well as large potential markets. When contrasted with traditional venture capital investing, our growth capital investment strategy provides our investors better assurance of returns and lower risk exposure," said Managing Director of CAGP, Mr Wayne Wen-Tsui Tsou.

India primary focus

The group said India, as an important growth engine for the region, is a primary focus of Carlyle Asia Growth Capital group, which has investments in diverse sectors represented by current portfolio companies including Financial Software & Systems, Newgen Imaging Systems, LearningMate Solutions, QuEST, and Claris Lifesciences.

"The opportunity for private equity in India is tremendous. An increasing number of Indian companies are looking for value-adding investors that can bring strategic benefits along with capital. Through active partnership with management and making use of the wealth of Carlyle global resources, we support fast-growing Indian companies to expand in both domestic and international markets.

"For instance, our US healthcare group is helping Claris Lifesciences acquire the necessary technical expertise that is critical to winning the USFDA approval for Claris' generic medicine to be marketed in the USA. Meanwhile, the growth capital team in Japan is actively exploring raw material supply for Claris," said Mr M Shankar Narayanan, Managing Director and Head of Carlyle's Asia Growth Capital team for India.

Venture capitalists keen on investing in India now'

2006-07-12T16:42:00.000+05:30

".....there would be at least five different seed funds which would have about $30 million each, thus helping the start-ups, within the next 12 months....", quotes this news item in Business Line.

Regards.

- Dilip.
________________________________________

Source: Business Line, 15-04-2006

Venture capitalists keen on investing in India now'

Our Bureau

Pune, June 14

Venture capitalists are now looking at India as a destination which cannot be kept on the sideline any longer, be it for reasons of cost arbitrage or even the human resources. Of this, about 16 per cent is likely go into the information technology segment. And according to venture capitalists "there can never be a better time for Indian entrepreneurs". This is the thought for food with which the Nasscom concluded its Product Summit in Pune.

Mr Sridar Iyengar, President TiE, commenting on the global scenario, said that the Indian market was just waiting to be tapped. He said that initially there was a dip in the funding efforts as people were more interested in finding out what was the Indian scenario before pooling in their resources. Now the situation is such that the entrepreneurs know about their traditional market opportunities as also the requirements of the global market for which they are gearing up. Intel Capital, the Intel Technology's VC arm, has already announced a $250-million fund for India during last December. Mr Kumar Shiralagi, Director, Intel Capital, commenting on the investments, said that it has already invested in five companies in India — Persistent Systems, Mobi Apps, Maya Entertainment, Real Image and Mauj.com.

Mr Sandeep Murthy, Partner, Sherpalo Ventures, Indian representative for Kliener Perkins Caufield and Byers, said that there would be at least five different seed funds which would have about $30 million each, thus helping the start-ups, within the next 12 months.

People do remember

2006-07-12T16:39:00.000+05:30

If not all, atleast some people do remember the good work done.... An interesting news item appended below. Regards.

- Dilip.

____________________________________________________________

Source: The Hindu, 16-05-2006

Ritual honours for Father of Irrigation

Staff Reporter

Sir Arthur Cotton

Dulla (East Godavari): This tiny village on the banks of the mighty Godavari has paid homage to the Father of Irrigation Sir Arthur Cotton on his 203rd birth anniversary on Monday. This village along with hundreds of other villages has a tradition of celebrating Cotton's birth anniversary.

On Monday, hundreds of farmers woke up early in the morning and gathered about 500 litres of milk and handed it over to a big farmer Satti Bhaskar Reddy, who installed a bronze statue last year in front of his house. Mr. Reddy also invited Vedic scholars to the village and they performed puja to the 20-foot Cotton statue. The farmers of the village also presented clothes to the scholars.

After the puja, the villagers purified Cotton's statue with the milk they had gathered. All the villagers including women and children had sweets and snacks along with a cup of tea by way of celebration.

"Cotton, the unmatched and towering personality in the world of engineering had played a crucial role to provide assured irrigation to thousands of farmers who were haunted by famine and floods in Krishna-Godavari delta areas by constructing barrages across the two rivers. He gave us our bread and butter. So, it is the bounden duty of every farmer in this delta to pay homage on his birth anniversary," said Bhaskar Reddy.

An 80-year-old farmer K. Venkaiah expressed his anguish over the attitude of political leaders and engineers in Dowleshwaram, who failed to pay homage to the person who sacrificed his life for the welfare of farmers.

Enthusiasm can enliven workplace atmosphere

2006-07-12T16:37:00.000+05:30

Source: The Hindu, 16-05-2006

Enthusiasm can enliven workplace atmosphere

Special Correspondent

Communication helps in creating enthusiasm

 Team meetings should be used only for suggestions, not complaints.

 The leader should not allow anyone to sidetrack the agenda.

 All negative points of an idea should be discussed openly.

Bangalore: Enthusiasm at the workplace means better productivity. Simple but transforming a usually dull office into a scene of lively activity can be difficult for many team leaders.

"Keeping communication channels open, holding team meetings where ideas can be freely expressed and recognising outstanding achievements, go a long way to build up enthusiasm for work," says former Human Resources head and now consultant M.K. Rao. Even the employee at the entry level should be able to communicate suggestions to the top management through his or her immediate supervisor.

When it comes to making decisions for the team, the leader should be able to sit down with them and gather all views, including the minus points. If this is mentioned in reporting to the top management, the pros and cons of a decision will carry more weight, says Mr. Rao.

What often happens at team meetings is that some persons are tongue-tied while some air complaints about colleagues or to ask for special favours. The leader should be in a position to make it clear that it is not an occasion to air complaints and it is not on the agenda for the meeting. At any cost, prevent team members from sniping at one another.

Suggestions, even from newcomers, need to be taken seriously and if they are not practical, the fact should be explained patiently. What matters is that everyone feels confident enough to do some loud thinking. The minus points of a new proposal should be given enough time for open discussion.

Often suggestions for change emerge. "Rewards always don't mean a raise in salary or a special bonus," says Mr. Rao. Even putting up a picture of an outstanding team member, with a description of what he or she has done, can be the best compliment possible. It encourages others to excel and that ultimately is the goal of every organisation," says Mr. Rao.

Team games and promoting sports activities among the staff are things many HR managers take seriously, as also picnics in which the families are involved.

How to get over those mood swings

2006-07-12T16:35:00.000+05:30

Source: The Hindu, 17-05-2006

How to get over those mood swings

Special Correspondent

Spending just half an hour during a sunny spell in a park can elevate one's mood

Bangalore: From yoga to different schools of meditation and deep breathing, a number of methods to reduce work-related stress are talked about today. Some perhaps work better than others.

One that has been found to work for many is aromatherapy. You need not go to a spa or health club for the experience.

A few drops of essential oil of lavender in your hanky may do the trick.

Also bathing with a few drop of the oil after returning from work or even a shower jell containing it. Other aroma such as citrus and rose work better for some persons.

"While those with clinical depression do need medication, many others can beat the blues otherwise with a bit of timely counselling,'' says psycho therapist Sunanda Murthy.

The lack of the mineral zinc in the daily diet can lead to depressive thoughts and multi-vitamin supplements with zinc do help over a course of weeks, she has found.

Thyroid malfunctioning can lead to irritability, weight loss, poor eating and sleeping habits and depression. When the thyroid, located just under the skin of your neck, is working well, it releases certain hormones that among other functions, speed up your metabolism and keep your weight just right.

A thyroid malfunction can lead to symptoms similar to depression. There can also be unexplained fatigue.

"Rainy and cold weather as in Bangalore when one hardly sees the sun for hours together on many days can affect moods. It is more common in the northern hemisphere with its long winters but can happen during the monsoon and winter months here too,'' says Dr Murthy.

Spending just half an hour during a sunny spell in a park can elevate one's mood. Often overlooked is the fact that good posture can make you feel better, she says.

A person with low self esteem and a poor outlook on life tends to slouch or lean down with head down. Just correcting the posture can help in improving the mood.

Screensavers help

While sitting at that work station in the office, straighten your back and make a conscious effort to look away now and then from that computer monitor, you will start feeling more cheerful. Having "screensavers" with photographs of people and places you like can be one way of getting over stress at the workplace.

He lost a chunk of his savings

2006-07-12T16:33:00.000+05:30

Markets crashed - changing the lives of some... Regards.

- Dilip.

_________________________________

Source: Business Line, 24-05-2006 [Edited]

He lost a chunk of his savings

Rasheeda Bhagat

Advice to investors: Don't leverage, don't trade, don't punt

Chennai , May 23

While there were smiles and sighs of relief on Tuesday as the equity indices recovered, they did not reflect the deep wounds this meltdown has inflicted on many investors/traders. Take the case of a retired general manager of a PSU bank in Mumbai. He had taken loans against his FDs worth Rs 22-23 lakh, and in two trading sessions - Friday and Monday - he lost Rs 7 lakh of that money.

"Earlier I used to advise him, taking into consideration his age and risk profile. But as the markets rose to dizzy heights, he thought I was too conservative and stopping him from making big money, so he went to somebody else," said Mr Sandeep Shenoy, Strategist at Pioneer Intermediaries, Mumbai.

"He is 68-year-old and yesterday he came to me weeping. It was painful for me to watch a man of his age crying like that. He started blaming his broker, but I had to tell him he had only himself to blame."

He added that what was amazing is that an ex-banker like him — "and there are more like him" — could speculate with their money in this reckless manner.

"I had always thought that bankers are conservative people, but more people like him have lost a chunk of their lifetime's savings in this crash."

Mr Shenoy said that once the Sensex had crossed 10,500, he had counselled his clients to book profits and keep at least 30 per cent of their investment in cash. "But people just don't listen. I know a few cases where the investors had made a profit of Rs 1-2 crore as the market went up. But the majority of them have lost 90 per cent of that money in this crash. "

He finds it a matter of concern that the heady rise in the equity market has brought new classes of investors "who don't invest; they just speculate and punt. In cities like Nagpur, Chennai and Vijayawada, there are many women — housewives, school teachers, college professors, beauty saloon owners, etc - who are playing the markets.

They bring in Rs 2 to 3 lakh and indulge in trading and punting and when sudden and sharp corrections happen as during the last few trading sessions, they get scalded."

Mr Shenoy's advice to investors: "... don't leverage, don't trade and don't punt... if you do, you'll get your back broken."

The Top Ten Lies of Venture Capitalists

2006-07-12T16:29:00.000+05:30

I used to mention that the VC world appears to me as if its a liar's paradise. I was reminded of that when I [accidentally] stumbled upon the top 10 lies of VCs in the web (I think this is from Guy Kawasaki's blog). Humorous write-up about VCs.

Regards.

- Dilip.

----------------------------------------------------------------------

The Top Ten Lies of Venture Capitalists

There is no such thing as "No" in the VC business, just indefinite "Maybe's". While somewhat tongue and cheek, these should help shed some light on interpreting VC talk.

Venture capitalists are simple people: we've either decided to invest, and we are convincing ourselves that our gut is right (aka, "due diligence") or there's not a chance in hell. While we may be simple, we're not necessarily forthcoming, so if you think it's hard to get a "yes" out of venture capitalist, you should try to get a conclusive "no."

This is because there's no upside to communicating a negative decision. Entrepreneurs will simply hate us sooner--instead the game is to string along entrepreneurs in case something miraculous happens to make them look better. (An example of a miracle would be Boeing approving a $5 million purchase order.)

Alas, entrepreneurs are also simple people: If they don't hear a conclusive "no," they assume the answer is yes. This is an example of the kind of breakdown of communication between venture capitalists and entrepreneurs that causes much pain and frustration for entrepreneurs.

To foster greater understanding among the two groups, here is an exposé of the top ten lies of venture capitalists.

"I liked your company, but my partners didn't." In other words, "no." What the sponsor is trying to get the entrepreneur to believe is that he's the good guy, the smart guy, the guy who gets it; the "others" didn't, so don't blame him. This is a cop out; it's not the other partners didn't like the deal as much as the sponsor wasn't a true believer. A true believer would get it done.
"If you get a lead, we will follow." In other words, "no." As the old Japanese say, "If your aunt had balls, she'd be your uncle." Well, she doesn't have balls, so it doesn't matter. The venture capitalist is saying, " We don't really believe, but if you can get Sequoia to lead, we'll jump on the pile." In other words, once the entrepreneur doesn't need the money, the venture capitalist would be happy to give him some more--this is like saying, "Once you've stopped Larry Csonka cold, we'll help you tackle him." What entrepreneurs want to hear is, "If you can't get a lead, we will." That's a believer.
"Show us some traction, and we'll invest." In other words, "no." This lie translates to "I don't believe your story, but if you can prove it by achieving significant revenue, then you might convince me. However, I don't want to tell you 'no' because I might be wrong and by golly you may sign up a Fortune 500 customer and then I'd look like a total orifice."
"We love to co-invest with other venture capitalists." Like the sun rising and Canadians playing hockey, you can depend on the greed of venture capitalists. Greed in this business translates to "If this is a good deal, I want it all." What entrepreneurs want to hear is, "We want the whole round. We don't want any other investors." Then it's the entrepreneur's job to convince then why other investors can make the pie bigger as opposed to re-configuring the slices.
"We're investing in your team." This is an incomplete statement. While it's true that they are investing in the team, entrepreneurs are hearing, "We won't fire you--why would we fire you if we invested because of you?" That's not what the venture capitalist is saying at all. What she is saying is, "We're investing in your team as long as things are going well, but if they go bad we will fire your ass because no one is indispensable."
"I have lots of bandwidth to dedicate to your company." Maybe the venture capitalist is talking about the T3 line into his office, but he's not talking about his personal calendar because he's already on ten boards. Counting board meetings, an entrepreneur should assume that a venture capitalist will spend between five to ten hours a month on a company. That's it. Deal with it. And make board meetings short!
"This is a vanilla term sheet." There is no such thing as a vanilla term sheet. Do you think corporate finance attorneys are paid $400/hour to push out vanilla term sheets? If entrepreneurs insist on using a flavor of ice cream to describe term sheets, the only flavor that works is Rocky Road. This is why they need their own $400/hour attorney too--as opposed to Uncle Joe the divorce lawyer.
"We can open up doors for you at our client companies." This is a double whammy of lie. First, a venture capitalist can't always open up doors at client companies. Frankly, he might be hated by the client company. The worst thing in the world may be a referral from him. Second, even if the venture capitalist can open the door, entrepreneurs can't seriously expect the company to commit to your product--that is, something that isn't much more than a slick (10/20/30) PowerPoint presentation.
"We like early-stage investing." Venture capitalists fantasize about putting $1 million into a $2 million pre-money company and end up owning 33% of the next Google. That's early stage investing. Do you know why we all know about Google's amazing return on investment? The same reason we all know about Michael Jordan: Googles and Michael Jordans hardly ever happen. If they were common, no one would write about them. If you scratch beneath the surface, venture capitalists want to invest in proven teams (eg., the founders of Cisco) with proven technology (eg., the basis of a Nobel Prize) in a proven market (eg., ecommerce). We are remarkably risk averse considering it's not even our money.
I'm at a Starbucks in Hawaii writing this blog. I've been at it for ninety minutes. I don't have my charger with me. My PowerBook is out of gas. You're going to have to be happy with the top nine lies of venture capitalists until "Dear God" ships the PowerBook Vaio.

BPO blues: Indians have 'yes' problem

2006-07-12T16:26:00.000+05:30

"Never expect that a secret agreement you share with one employee will stay a secret - he or she will tell the first person in the hall after leaving your office.", says this rediff news item.

Regards.

- Dilip.

________________________________________________

Source: www.rediff.com

BPO blues: Indians have 'yes' problem
Siddharth Zarabi in Hannover | April 27, 2006 10:22 IST
Last Updated: April 27, 2006 13:45 IST

In a study on European small and medium IT companies in India by Value Leadership Group Inc, all the companies surveyed specifically mentioned the tendency of Indian workers to "over commit" (say yes to every request) as a significant cultural issue.

"We saw several examples of missed deadlines and project failures that the companies attributed to this trait," it states.

The study has been authored by Peter Schumacher and Eric Olsson. It says the cultural differences work both ways, with many Indians uncomfortable with the bluntness of the Germans.

Speaking to Business Standard at the ongoing Hannover Fair, Peter Schumacher, president & CEO, Value Leadership Group Inc, said India's proposition of value for money, top talent and tremendous flexibility was not going unnoticed by small and medium European enterprises that had exhausted their options in Europe.

While the study mentions a number of factors that contribute to the India advantage, it also lists some other challenges faced during companies' off-shoring work in India. One of these is that unlike in most Western countries, salaries and incomes tend to be public information in India.

This fact alone can create salary pressures for companies operating in India. The study quotes Jens Borchers of Case Consult as saying: "Never expect that a secret agreement you share with one employee will stay a secret - he or she will tell the first person in the hall after leaving your office."

However, on one issue Indians in the IT industry score over others. This is because many of them deal only with foreign customers and tend to have substantially more experience dealing with a wide variety of people and cultures than many Europeans do.

Indian IT also has an advantage because most of the companies have always worked on a "global delivery model", while many European companies face an uphill struggle switching to this model from their current "proximity to customer based" model.

He said, she said, and their argument becomes fodder for the Internet

2006-07-12T16:24:00.000+05:30

This is one of my all time favourite articles. I would have liked it even more if the title had been more rhythmic, something like -- "He said, she said, and what they said became fodder for the Internet".

The next time you're tempted to send a nasty, exasperated, or snippy e-mail, pause, take a deep breath, and think again. Then consider the tale of lawyers William Korman and Dianna Abdala, says this interesting article. In other words, if you want to fire me, do it over phone, but not by way of e-mail !!

Regards.

- Dilip.

Source: International Herald Tribune

He said, she said, and their argument becomes fodder for the Internet

By Sacha Pfeiffer The Boston Globe

THURSDAY, FEBRUARY 16, 2006

BOSTON

Once again, a friendly reminder: The next time you're tempted to send a nasty, exasperated, or snippy e-mail, pause, take a deep breath, and think again. Then consider the tale of lawyers William Korman and Dianna Abdala.

Korman was miffed that Abdala notified him by e-mail this month that, after tentatively agreeing to work at his law firm, she changed her mind. Her reason: "The pay you are offering would neither fulfill me nor support the lifestyle I am living."

In his e-mail reply, Korman told Abdala that her decision not to have told him in person "smacks of immaturity and is quite unprofessional," and noted that in anticipation of her arrival, he had ordered stationery and business cards for her, reformatted a computer, and set up an e-mail account. Nevertheless, he wrote, "I sincerely wish you the best of luck in your future endeavors."

Her curt retort: "A real lawyer would have put the contract into writing and not exercised any such reliance until he did so."

His: "Thank you for the refresher course on contracts. This is not a bar exam question. You need to realize that this is a very small legal community, especially the criminal defense bar."

Abdala's final three-word response: "Bla bla bla."

That's when the exchange, confirmed as authentic by Korman and Abdala, began whipping through cyberspace, landing in e-mail in-boxes around the city and country, and, eventually, across the Atlantic.

In short order, it has become yet another cautionary tale that you should definitely not put in an e-mail anything you wouldn't want the rest of the world to read.

Think former FEMA chief Michael Brown ("Can I quit now?"), indicted Washington lobbyist Jack Abramoff ("we need to get some $ from those monkeys!!!!"), and assorted Enron employees ("This week is not good. I have too large a pile of documents to shred").

"It almost sounds too obvious, but I'll say it: You should never write an e-mail that you are not willing to see preserved forever in history," said the Boston Bar Association's president-elect, Jack Cinquegrana, who frequently handles cases that use e-mail as evidence. "The dangers created by this new world we live in, where everything is recorded for history, are not only that you could be second-guessed at every stage in the context of a civil dispute or government investigation, but that your reputation can be affected by words you don't think you're preserving for posterity - but really are."

The e-mail exchange between Korman, a former prosecutor in Suffolk County, and Abdala, a 2004 graduate of Suffolk University Law School, has circulated so widely that they both said they have received several hundred inquiries about it from as far away as Europe. Among questions Korman has fielded are whether the back-and-forth is real (it is) and whether the job is still available (it is not). He got an e-mail from a young lawyer in Kansas apologizing on behalf of young lawyers nationwide.

The exchange became public when Korman sent it to a colleague, who asked if he could forward it elsewhere. "You can e-mail this to whomever you want," Korman responded. From there, it took flight.

Korman, reached Wednesday at his downtown Boston law office, and Abdala, reached at her home in Watertown, Massachusetts, agree on the basic facts of their short-lived association. Both said Abdala responded to a job advertisement that Korman posted on the online service Craig's List for a criminal defense associate at his year-old firm, Korman & Associates, which consisted of two lawyers. Both said that after a first interview, Abdala said she would accept the job if it were offered to her. Both said that during a second interview, Korman told Abdala he would not be able to pay her as much as he had told her in the first interview; neither would disclose amounts.

They differ on whether, at the end of the second meeting, Abdala accepted the job. Korman said he believes Abdala did, and that they even set a start date, which would have been Wednesday. Abdala said there was "no clear contract or agreement" and she still wanted to ponder the offer. She said she decided not to take the job because the reduced salary "might have been realistic for other people to survive on, but I like nicer things. I like the finer things in life."

"I take no issue with why she chose not to work here," said Korman, a 1995 Boston University School of Law graduate. "But to then insult me by saying I'm not a real lawyer - that's offensive."

"Here's a woman who's just starting her career," he said, "and that she had the unmitigated gall to send an e-mail like that blew me away."

Abdala, who described herself as a "trust fund baby," was admitted to the Massachusetts bar last year and said that since then she has "just been taking it easy" because "I worked hard in school." She responded to Korman's job posting because "I wanted to establish somewhat of a career for myself," she said. "No one wants to be living off daddy." Abdala's father, George Abdala, is a lawyer in Springfield, Massachusetts.

Abdala said she is now working for herself in Boston, where she will take court-appointed cases and do private criminal defense work.

Abdala said she had no regrets about the e-mail exchange, adding that she had reported Korman to the Board of Bar Overseers for "unprofessional and unethical" conduct for forwarding her e-mail to an outside party. She also said she believed that Korman's remark about Boston's "small legal community" was tantamount to "threatening my legal career" and that he had circulated the e-mails as a "cheap ploy to bring more business to his firm."

Threatening Abdala "certainly wasn't my intention," Korman said.

Human assets

2006-07-12T16:16:00.000+05:30

Our HR strategy should not only attract talented people, but also retain (as many) talented people (as we can). People are our assets. If they go, they take the experience also with them, besides creating temporary problems at the individual desk level.

Nothing short of a comprehensive, all-encompassing total care of human assets will work in today's conditions, more so, when employees spend most of their waking hours in offices and factories, giving it their best, says this article in Business Line.

Regards.

- Dilip.

______________________________

Source: Business Line, 02-05-2006

Human assets

Humans beings have feelings, emotions, values and beliefs.

Essentially, each of these differs from person to person, based on his/her background, environment, upbringing and experiences.

When one joins an organisation, he/she has high expectations and wants an environment where these variables are well taken care of, and nurtured, for what is the most desired ideal — self-actualisation.

Of course, this is easier said than done. More often than not, the organisation has a totally different set of priorities that clash with those of the employees.

When the mismatch becomes too big or seemingly unmanageable, employees quit the organisation. This brings into focus the need for total care of human assets.

Managements that take an individualised view of human needs and develop a `personal touch' score far better than others which manage `just like that'.

For instance, with the increasingly sophisticated information and communication technologies available, many employers are encouraging, even facilitating, employees to work from home.

Many organisations sponsor their employees for part-time/correspondence courses linked to their core field of specialisation, that will give them a chance to grow.

Similarly, to assume that only money makes all the difference is to miss the wood for the trees. The feeling of togetherness, of belonging to a large family where employees enjoy mutually beneficial and supportive relationships, has also been seen as a decisive factor in job satisfaction.

Managerial styles are also important. Youngsters are often put off by the behaviour of bosses, who are mostly tough taskmasters without even the semblance of caring for their people.

It is essential that such managers be exposed to experiential learning programmes on team-building, communication skills, and so on.

In short, nothing short of a comprehensive, all-encompassing total care of human assets will work in today's conditions, more so, when employees spend most of their waking hours in offices and factories, giving it their best. This is one sure-fire way to keep employees aligned with their organisation's goals and objectives.

A. B. Sivakumar

Summer is here, protect your skin from rashes

2006-07-12T16:13:00.000+05:30

"The best thing to do to protect your skin is to keep yourself well hydrated. Maintain a fluid balance in the body by drinking lots of water and juices and eating coolants such as juicy fruits, cucumber and so on. Avoid food that produces heat such as gingili, excessive non-vegetarian food and heavy proteins." says this article in The Hindu.

- Dilip.

Source: The Hindu, 01-04-2006

Summer is here, protect your skin from rashes

Sahana Charan

Excessive heat and pollution can wreak havoc on your skin

· Drink lots of water and fluids; Avoid food that produces heat

· Use a good waterproof sun block cream

· Apply calamine lotion, cucumber water and Fuller's Earth on face

Bangalore : Do you dread going outdoors in the afternoons? Or have rashes on your body that get worse by the day? Blame it on summer.

The summer heat brings with it a plethora of problems. Come summer and the first part of the body that protests is the skin. The sunrays can cause enough damage to the skin that may sometimes lead to a permanent blemish.

According to experts, weather, humidity and sunlight are the main factors that affect the skin. The high temperature coupled with pollution can play havoc on the skin in summer.

"The excessive heat causes dehydration as the body loses water owing to sweating. This makes the skin oily and dull making one look pale. There may be itching because of dryness. Fungal and bacterial infections cause body odour and other problems. The skin becomes prone to rashes and acne as the open pores attract dust and pollutants," says Rashmi Shetty, consultant cosmetologist. According to Dr. Shetty, some people may suffer from a condition called "Acne Rosecia", in which the acne gets aggravated and the face turns pink all over.

There may be itching owing to infections, mostly in the armpits, thighs and parts of the skin that have folds. Prickly heat and photo dermatitis are some of the problems that one may have to face during summer. Prickly heat results because of the body's reaction to sweat that accumulates in some part of the body.

There may be severe itching, rash and tiny boils in the affected region.

Photo dermatitis is a condition triggered by exposure to direct sunlight in some people who may be allergic to it and may cause itchy rashes, redness and boils. The ultraviolet rays of the sun may cause sunburn.

Women need more nutritional supplements than men

2006-07-12T16:12:00.000+05:30

Source: The Hindu, 03-05-2006

Women need more nutritional supplements than men

Special Correspondent

`It is because their physiology is different from that of men'

· Garlic can cure most infections, including cold

· For a healthy heart, red wine or grape juice in moderation helps

Bangalore: "Many ask me why women need a different set of nutritional supplements than men. The answer is simple — different physiology,'' says nutritionist Uma Vasudeva. For example, compared to men, elderly women than men tend to suffer from brittle bones and the consequent weakening of joins. Hence they need calcium supplements, she says.

Instead of taking tablets, they can get most of the calcium they need from milk and milk products.

There are many common spices and condiments that can cure ailments and act as nutritional supplement. Garlic can cure most infections, including cold. Around 250 to 300 grams a day would do. Turmeric, a staple ingredient in Indian cooking, has the ability to speed the processing of cholesterol, and if applied on the skin, can act as a disinfectant and reduce the effects of insect bites. Red and green chillies in moderation help to reduce bad cholesterol too, Ms. Vasudeva.

"While garlic alone may not cure a cold, use it along with the juice of citrus fruits that contains plenty of Vitamin C, and with masala tea, which should include ginger powder,'' says Ms. Vasudeva. Ginger is of course known to cure many digestive problems too. The bacteria found in curd and buttermilk help cure indigestion, she says.

Omega 3 oils found in seafood are known to reduce heart problems. Some kinds of fish oil may also help in reducing the pain and stiffness of arthritis. Hypertension is a problem that affects women as much as men, and the natural remedies for this include food rich in potassium such as banana, beans, orange juice and raisins.

For a healthy heart, red wine or grape juice in moderation helps. "One reason why women need more nutrients is because in many homes, they tend to finish what is left after others eat. and this just may leave their bodies short of certain nutrients they need during their reproductive years and after menopause," says Ms. Vasudeva.