ROAD FOR LIFE.....

LAYING ROAD AHEAD

This is the rough presentation of what i interacted with my school's (Mira Model School, Janak Puri, New Delhi) 9th class students on 9th April, 2009. I met them to tell them about my experiences from 9th Std tIll completing Ll.B.. I wanted them to learn from my mistakes and lead ahead without doing same mistakes in their life's 10yrs to come.

What I found that these children were as unaware as i was; these children though born in the faster world than I but are still as confused as I was; They, like my generation, are living withcommunication gap with their parents.

I hope that my litle effort is of some use to my younger brothers ans sisters.

Here it goes (as raw as it was, coz it was only for my refernce):-

Listen or your words will make you deaf

Introduction: this meeting shall be known as INTERACTION

v Introduction of interaction

v My introduction-

ü name,

ü qualification,

ü marks (in 8^th to 12^th how they changed, consistency in marks),

ü Profession- being an advocate as per my nature.

v What I was, how I was at studies. How I decided to study.(tell about 4^th)

My 1 hour is investment. Sharing experience of my 10 yrs from your age to save you from those confusions

Return: 200 hrs right now, 5yrs* 200 students=1000yrs

Experience is the name which we give to our mistakes.

Start with the story of King Akbar.

Best friends are your parents

v Parents are always in our favour.

v There experience is much more than that of ours.

v Become Friends with them.

DECLARATION: YOU ALL ARE MATURED NOW.

v When you react as elders you are told you are kids and vice versa

v Age of transformation

v Turning point

v But am declaring that you all are MATURE now. And prove that you are grown up now.

ü Handle tasks,

ü Be more responsible… etc

MAIN TOPIC

BE CLEAR ABOUT YOUR LIFE GOALS

Start with the story of Kautilya/Chanakya, established biggest empire: Magadh Empire.

v 1% of you are aware of what you want to become 40% know that they want to become something. 20% know that they don’t know what they have to become and rest/majority of you do not care about it “WHATEVER” attitude

v So Decide now. (Charu’s story- NIMHANS)

v God sent you here with a purpose.

v Make sure that thing as your career what you like to do.

Do what you love to else you will be forced to love what you do

v Identify your interest area and try to make career out of it.

v Don’t do what world (parents, peer group etc) want you to.

v Its time to think how to pursue your goals.

v Make a broad picture in your mind and chalk out a plan to move in a direction to achieve it.

v Imagine a road… whichever you like, as a road to your career. Now you have to move on that road.

v Now have patience. Don’t change your path. There may be success or failure but don’t change your way. There may be ups and downs but don’t loose heart.

v FAILURE IS THE BEST LESSON TO SUCCESS BUT IT’S NOT MANDATORY.

v There is lot of competition, but its where there is lot of crowd. So do something Different.

v Don’t walk behind crowd make your own roads.

v Be Educated as you all are already literate(as per govt)

Successful people don’t do different things, they do things differently

Success is a journey and not destination.

How to go about your career/ goals

v Chose your career with a prospect of 7 yrs from now.

v Start gathering information about it as per your need, because you understand yourself more than anyone else.

v Ask your seniors, parents, teachers about current market scenario and what is it expected to be after a few years.

v Work hard and smart for it.

TV channels/shows to be watched

v Doesn’t watch shows like roadies it means sadak chhap, etc. they are showing you wrong path wrong world to earn money. They have nothing to do with you, your career or your family.

v Instead watch discovery channel, comedy serials. They will help you to improve yourself.

v Once I was listening to then president Hon’ble Sh. APJ Abdul Kalam, that he do not have TV at home.

v Movies like WATER, Gandhi my father, Khuda Ke liye..

ANGER IS A TYPE OF ENERGY: USE IT

v Try this: when you are angry: you take up a book and you will realize that you are reading very fast.

OVERALL DEVELOPMENT IS MOST IMP

v Studies are imp but not “only” imp

v Extra curricular activities,

v Read newspaper, books

v It will pay in life.

v It very important to be aware of current world situation.

v Be a responsible and aware citizen.

Books are your friends

v Believe in god, believe in nature. NATURE is the SUPREME: written in Shimad Bhagwat Geeta.

v Believe in yourself

v Learn to say no.

v Acceptance opens your doors to learning so never step back from accepting your fault.

v Read about Gautam Budhha (middle path)

DREAM

v Biggest problem is that people don’t dream. If they dream they don’t follow them.

v It’s not bad to dream BIG.

v Any big achievement starts with a small thing called as dream…

SO DREAM

Dreams are not those which you see when you sleep rather Dreams are those which don’t let you sleep.

It’s not a matter of worry that you set your target so high that you missed it; rather it’s dangerous that you set your target low and you achieved it.

TAKE OUT TIME TO TALK TO YOURSELF

v Only you know yourself best.

v Biggest problem with today is people don’t have time to talk to themselves. They have lost touch with their inner soul.

v Self guidance and motivation are the best one.

v Ultimately it’s you who have to decide about your life.

HEALTH

v Health is most important. Keep fit. For that:

o go out and play

o eat healthy food

o exercise is must

o NO SMOKING/ DRINKING- TELL ABOUT DAD.

To end with:

What MATURED people do is:

Never compare yourself with anyone, if you do you insult yourself.

Try to solve your problems on your own with guidance of your parents and teachers.

Difference b/w success and failure is:

that in success things were done exactly done correct and in failure things were done nearly correct.

Its you who can understand yourself the BEST.

Always be ready to learn…. Now it’s a new beginning.

ROD SPARED, CHILD SPOILED.. NOW, NO EXAMINATION AND CONFIDENCE LOST!

SPARE THE ROD AND SPOILED THE CHILD!!! My maternal Grand father (Nanaji), Ltae Sh. D.D. Dhawan, who was a gold medalist teacher, scholar, author, mathematician, founder of school among others, used to say this. He was a strong believer of this school of thought. Even I am believer of this school of thought.

I would like to state that I am not in favour of teachers turning into devils and beating child like anything, but I am stating that education and rod go hand in hand. Education is a Wide term much more than literacy. Its teachers' poised duty to educate a child and make him a responsible citizens and rod has lot to do with it.

I thank my teachers to keep rod ready for me hose beating has a role in my making. I have seen in my real life what wonders can be done for child with this rod. There was a friend of mine(am not naming him) he was below average student. his father walked into our coaching institute when he was promoted to class 10Th to ask the teacher to make his child clear this 10Th class exams with at least 50% marks. He passed 9Th class with merely 40% marks. And our teacher assuming her responsibility with the help of her extra efforts, caring tone at times and being rude at other times, using scale as the rod made him clear his 10Th class examinations with 58% marks.

This is just one example.

Now Mr. Kapil Sibal a very senior advocate (so my Respected Senior too) and currently HRD minister with Govt. Of India has come up with a new plan making single board to impart secondary level education throughout India and making this examination (10Th class) optional for the students.

I support my senior's 1st plan. But with due respect for his thoughts would like to state that I don't agree to his SECOND scheme to phase out/make optional the class 10Th examination.

If I talk about me as a student who appeared for the class 10Th exam in the year 2000, I would like to mention that I didn't find this exam as a stressful exam. It was just like any other exam which we were taking in some other school for a change. Even if these exams are tagged to be full of stress exams, then this stress is necessary. This stress will lay down 1st step in preparing child for handling stress through his life. LIFE IS NOT A CAKEWALK! Life has to lived up in a very alert way. It is filled with lot of decisions taken under stressful situation. Rather life continues only if it is able to clear the stressful situations in a successful manner which is possible only because of our decisions.

Now a days everyone is after MBA, MBA is all about preparing a candidate for working under stressful situations. If a child is made to live easier life how will he sustain MBA curriculum and moreover Curriculum of life and his job/business/profession??

In the recent past class 10Th and 12Th examinations have been made very easy. 20% to 30% marks are in the hands of school teachers by way of internal assessment, submitting projects etc. and for remaining 70% to 80% 3 hrs and 15 mins are granted to child as compared to our times when there were no internal assessment etc and for 100 marks exam we were granted 3 hrs in total. All this is already reducing education quality and now above all this even exams are planned to e phased out.

So I request Hon'ble HRD minister not to make these exams optional neither phase them out. Rather they should be more efficient and of better quality which produces strong human beings who are in turn have to run this nation. Otherwise there will be weak citizens who will be young, impatient and unable to take any firm decision for themselves and for nation's too.

AUSTRALIA BEING AUSTIN.

We Indians are very mobilise people. Its our brain because of which this world is working. Its we who are the youngest nation in this world with very capable learning and decision making mind. We can be found in any part of this world, the reason behind this is that we love to share our knowledge and culture and always outshines others and not that we don't have opportunity in our home. Also we have a craze to see this world and not that we are crazy people that we want to live out of our country.

Our history is a proof of a fact that we convert our environment as per our needs and make that other place a mini India.

CURRENT SCENARIO IN AUSTRALIA!

What all is going on in Australia it shows that Indians are unwanted there. But they are not giving it a thought that its their universities who invite Indian students, we are paying a Lakhs Crores of Rupees to them as fees, providing them with skilled manpower among other relevant factors. They are developed economy but do not have much skilled manpower. Their children are not into studies so much then how they expect to get a good job?? Its because of our labour in that country that they are able to get unemployment pension.

RACIAL OR JEALOUSY?

I don't think that the attacks on Indian students in Australia are the reason of racial abuse rather they are the result of jealousy. YES its a jealousy in the minds of Australians which is prompting them to take such actions. They are not ready to accept outsiders superior to them.

ROLE OF AUSTRALIAN GOVT.

Role of Australian Govt has been very unacceptable up till now. it seems that either they are helpless or they want to promote all this. They are not proving to be responsible welfare govt machinery. They are not in a position to safe guard their guests whom they themselves have invited.

ROLE OF INDIAN GOVT.

Surprisingly Role of Indian Govt is very awkward. Either they don't have courage to take a stand or they do not have this much prudence to understand all this or they do not want its subjects residing in Australia to live with dignity.

Our Hon'ble External Affairs Minister Sh. S.M. Krishna in one of his interviews asked Indian students living in Australia to keep themselves calm, instead of taking some serious action.

DESIRED FROM INDIAN GOVT.

As per my opinion, our Govt should have sent some senior politician or senior officer to Australia as a guardian of all the Indian Students living in Australia to sort out the matter and to ensure safety for its subjects. And should have taken a strong stand on this issue instead of just a few statements. They should have said to Indian students not to worry about their studies and should have made some arrangement in our country itself to help them complete their remaining parts of their studies.

Though I have lot of matter on this issue to write but, I would like to end my article here with a hope and prayer that my friends studying in Australia remain safe and live with dignity. And hope that Govts. of both the countries take some Strong steps to ensure proper living standards for Indian Students THERE.

INDIA: A LOW COST COUNTRY!

INDIA: A LOW COST COUNTRY!

India, a very big country with biggg population which distinct in many things like colour, language, food among many others. But there is a habit which is very common and can be found at any part of it. This habit however, can be termed as unknowing and unaware linking force among such a vast distinct people(s).

The habit can be recognised by three words:

sasta(cheap)

sundar(beautiful)

tikau(durable)

In short SST. Emergence of SST can be trapped from its ancient history. now it has become the custom and it originates from custom and a custom has its roots deep inside the society and its history.

Many examples can be quoted to show the relevance of SST in Indian context. Here people wants to get all there work done and for that nobody wants to spend even a single Rupee (Penny). Savings is the integral part of Indian preachings. But people misinterpret this savings. This Saving is all about saving from your income or by cutting down on wasteful expenditure. But here people interpret it as saving from any means even by cutting down on necessary expenditure, even at the cost of own health or at the cost of public health and interest.

Lets take a few acts of Govt as an example:

1. Providing poor with enough wheat to eat. Here emphasis is on quantity and not the quality of food.

2. Providing its subjects with low cost and cheap mode of transport, even if it is uncomfortable, without thinking about its increased cost in terms of:

a) increased wastage of time and hence delay in every work,

b) increased cost of state due to poor health standards caused due to bad travelling.

3. Still not making its offices Fully air conditioned and providing proper sitting arrangements. This leads to lethargic behaviour of its employees. They keep out of offices for the want of cool air and proper sitting, again leading to pendancy of work.

Now let me point out a few habits of Citizens:

1. Transporting goods through there scooters or cars by opening the back door to save a few bucks, even at the cost of public interest and health. It may lead to serious accidents (i suffered one) but it definitely save a few ignorable amount of money.

2. Again using three wheelers (eg Vikram auto) to transport goods, they ply at the speed of 20 km/hr even on the expressways. Leading to bad accidents.

3. Driving on wrong side of the road to save some petrol, which if leads to any accident will cost dear.

4. Here people will eat 2 days old food also since it costed them a few bucks, without even considering the aftereffects i.e. if by eating it they fall ill, they'll have to visit a doctor whose fees and medicines will be many folds the cost of that food.

5. People are preferring diesel cars over petrol ones to save on running cost. They do not take into consideration the high capital value of diesel version, its less resale value, its high maintenance, the amount pollution a diesel vehicle emits is more than petrol version hence effecting environment and society as a whole.

6. A very recent example in this regard is an explosion which occurred when a person was filling its auto LPG cylinder with the help of piped nozzle from LPG cylinder used for domestic consumption. Since this cylinder is supplied at subsidised rates so this could have saved him a few bucks but unfortunately it lead to explosion while performing this act.

This has not saved him as much in years as it has destroyed in a matter of few seconds. His car gutted, he himself was into flames. His more than six family members were injured. His neighbour's home was completely gutted, many of his neighbours also got hurt. A motorcycle standing nearby also got into flames. Besides this there was loss of public property like roads.

CONCLUSION

I would like to conclude here by pleading govt and citizens to do cost analysis before thinking of saving cost by any means b'coz saving cost by any means may put them even behind the bars.

So please think before you think to save and live by spending that much which is necessary to for a safe society.

MIS- ROUTING through DIS-INVESTMENT_____!!

First of all I would like to define what is Dis-Investment!

In simple words, It is negative investment, in other words, it means to sell ones investments in shares, properties, or any other tangible or intangible asset or right.

Now i come to Need for Dis-Investment!

There can be many reasons, a few major of them are:-

1. good opportunity i.e. the owner is earning a good amount of profit on these investment;

2. availability of other good investment areas;

3. as part of some settlement, like family settlement and

4. major issue which gives rise to it is:

to pay off debts.

Now linking this definition and need to Indian context we find that:

Newly formed government is about to take the route ofDIS-INVESTMENT. As already defined, govt is planning to sell its shares or bring an IPO in state owned entities, also known as PSUs(public Sector Undertakings). Now somes the issue of NEED, now we see that what is the reason behind this decision for this GOVT who runs trillion $ economy. On analysing the above mentioned reasons we ge to know that our govt is under huge debt, which is Fiscal Deficit.

This fiscal deficit (as per govt. estimates ) is approx. 6% of Indian Trillion $ (10 lakh crore Rupees) economy i.e. Rs. 3.3 Trillion or Rs. 3 lakh 30 thousand crores. This high fiscal deficit has been finalced by loan at higher rate of interest which is around 10% pa. So Interest amounting to be on this huge amount would be:

Rs.33000/- (Rs. Thirty three thousand crores) pa.

What is Fiscal Deficit?: It is the difference between the Revenue Receipts and Total Expenditure especially used in context of Govt.

Presently Fiscal deficit can be dealt with by 3 methods:

a. printing of new currency,

b. increasing Taxes, and

c. Dis-investment.

Printing of new currency: as i have written earlier that there excess currency has already been printed and is already generating problems for the Economy.

Increasing Taxes: now govt is not in a position to increase revenue by way of taxes as there is already severe recession is going on and our industries are seeking for stimulus packages and bailout.

Dis-investment: So the only way left is Dis-investment. Govt is Planning to disinvest 8-10% of its holdings in PSUs and making it sure that total of govt's share shall not fall below 51% in total in any PSU.

METHODS WHICH CAN BE USED FOR DIS-INVESTMENT:

(i) Selling its shares in open market,

(ii) Asking PSUs to crop money through IPO.

Selling its shares in open market

This is the Dis-investment in real sense. As in this method govt will directly sell its holding into the markets and shall reduce its holding in PSUs and reducing got's voting rights. Under this method govt will be getting money directly from the buyers.

Asking PSUs to crop money through IPO

In this method govt will not sell its shares directly but will ask the PSUs to issue its shares by way of IPO(Initial Public Offering). However this will also decrease govt share hoding by increasing public's share holding i.e. this will also dissolve govt's voting rights.

However in this method money will flow to PSUs and not the govt. directly. this problem can also be dealt with by the govt. by issuing bonds to these PSUs i.e. by borrowing from these PSUs. That is these companies will act as govt's agent in arranging funds and will not left with enough funds for there developments.

These PSUs will crop money in the name of using this money for there expansion and development and this purpose will be defeated by the above mentioned loan arrangement

OR

These PSUs acting as govt agents will misrepresent and will misstate the facts to investors to extract mony from them.

The biggest Telcom Giant BSNL which is also an unlisted PSU is also in a pipeline to for disinvestment. While looking at the Balance Sheet of this Giant company it can be seen that it is sitting on a large pool of unutilised cash which is nearly Rs.60,000/- CRORES.

Now you yourself see that whether this company needs any further capital for its expansion or development which the govt is planning to raise by way of IPO???

GOVT is planning to raise Rs.70,000/- Crores to Rs.85,000/- Crores in the next two financial years.

Focusing back on to the Fiscal Deficit, the method to be followed to deal with it and the amount so raised we can clearly see that govt will be able to raise approx Rs.40,000/- Crores in each financial year out of which Rs.33,000/- Crores will be utilised in paying back only the interest on the actual Fiscal Deficit leaving behing less amount for anything.

This situation can be explained in a following manner:-

Extracting total water available in a well to revive completely dried up sea.

People may talk in favour of Dis-investment by saying "Dis-investment will lead to privatistion and hence will improve the efficiency", on this matter i would like to state that by Dis-investing or diluting 8-10% of its share holding will not decrease govt's share in these PSUs below 51% and untill govt's holding dont fall below 51% it will not change the status of these PSUs from Govt undertaking to private undertaking and therefore not effecting its management and hence will not improve its efficiency.

CONCLUSION:

I would like to conclude by stating that this decision to Dis-invest will be prove to be the biggest mistake in the long run and this will not release the govt of its debt rather it'll not only increase its debts but it'll reduce its assets too.

DOES ECONOMICS DO NOT HOLD GOOD IN INDIA??

I am Ranjan Sardana from Delhi. I have done B.com(h), LL.B. and i am persuing C.A. Final.

Since past few weeks a very big question hits my mind badly, that DOES ECONOMICS DO NOT HOLD GOOD IN INDIA??

I am confused regarding this situation because things are talked about as if everything is at ease. But by talking to people working in industry it reveals as if situations are very tight and contingent in the market.

I shall make myself more clear in this regard.

1.I agree that this time politically our economy is in sound situation. Its a very honoured, respected and very intelligent PM is in the chair. But anyone can controll only those situations which are under their control.

Lets take up BPO sector for example. if parent country somehow force its companies to retain this work in the country itself then what can be the situation in India, we cannot even imagine.

2. Today the situation of our trilion dollar economy is that we are into big fiscal deficit in real terms. which means either:-

a. more currency printing, or

b. more debt trap for govt.

Our previous govt has already done part "a" in the last tenure and now only option left is part "b".

Applying part "b" means more charge over our income. That is less income is available for disposal of both planned and unplanned expenditure. In oher words declining our real income.

3. Exports consisted of approximately 35% of our economy, the major demand was from USA, which now is in no state/ position of creating further demand. So it will definately effect the Exports and hence our Real Economy.

But Import bills are not likely to reduce that much, ultimately leading to huge unbalance in balance of trade. ain leading to adversely effecting Real money supply for disposal. effecting in two ways by:

(i) reduced exports, and

(ii) increased unbalanced balance of trade.

4. Many stimulous packages like tax rate cuts were offered again reducing Income.

5. reffering to points 2,3 and 4 above it can be said that real Trillion Dollar economy will bereduced to half. hence dragging India 5 years back.

6. The increase in prices in the last 2 years were due to "upward shift in Demand curve" so that inflation was about to happen, in order to control that unavoidable inflation our govt took many measures which made many projects in pipeline unviable to to be grounded. it hurted the economy in a serious way.

Is it that easy to re-start such projects, again incurring pre start up costs like feasibility reports etc..?

Is it that easy to revive the sentiments?

If its at all, then can all it be done in a matter of a few weeks or months?

Can everything in the economy be revived by way of giving stimulous?

How can NPAs be reduce in a economic scenario where people are loosing their jobs or thr incomes are decreasing?

7. (a) Today itself(25/05/2009) i was listening to a programme on CNBC Awaz, relating to is it being right time to buy a home..!!

By listening to it picture seems to be so rosy that as if nothing has happend.

There wer experts from industry, analysts etc. Their views were like property market is going to get stable for next 6 months and then again it'll experience a bull run.

(b)I am looking at the surprise move in the stock markets. Till two months back BSE was at 8000 mark and every analyst was saying that there is still downside.

Now only with "hopes" markets have recovered so much and things look as if its a new Bull run.

What i knew from study of economics is that share markets have a cycle of 3-5 years and property markets have this cycle of 8-10 years.. so obviously a time comes when both property and share markets see a Bull run togethet, and 2005-2008 was that period only.

Everything was very hot but now this engine needs to get cool down. Biggest economy (USA) gots Eits hands burn in it.

So is it a real situation that things will run again or its just as eyewash???

I would like to qouoe one more important thing, that i am a small investor, who entered markets in the Jan 2008 after the Big fall. I have burnt my hands in this markets since then twice. But i will not take it as my defeat. I'll again come back to these markets but this time to earn. But for that i need to know that should i go for rumours and unexpected things or should i go theories of Economics which talks of Cycle of economy, consumption, savings and investments, trades, fiscal deficits, effects of note printing, gestation periods, heavy sunk costs leading to eroding of capital etc.

I have many more questions, but the above mentioned are a few of them.

Till u read this i'll write other articles...!!!