Dec 3, 2007

Social Stock Excange (SSE) to promote Corporate Social Responsibility (CSR)

“Increase shareholders value” is one line that I have seen in all the presentations by the top management. Wealth creation for those who have invested in the company is definitely an important task to be achieved. And stock exchanges like BSE, NSE are doing a great job in linking the companies performance to the market forces.

However I feel objective of any commercial activity should result into development society and mankind.

Urgent need to have Social Stock Exchange (SSE) on which various companies to be listed on the basis of social responsibility performance. Since all the companies are using the resources from the society they must work towards giving back a part of the wealth as this will result in the welfare of the society.

Listing of various companies on the SSE to be made mandatory and points to be given on the basis of various parameters. Identifying and allocating points to these parameters should be left to an expert committee. Example :

1) Employment is getting generated due to commercial activity and this should qualify an organization earn points on the Social Stock Exchange (SSE). Say, companies will earn One point on SSE for every 500 employees on company’s payroll.
2) Likewise nature of the business should make them eligible to earn few points like Dr Reddy Lab to be allocated a 50 points for its efforts in developing the drugs for the treatment of Diabetics. At the same time organization engaged in Tobacco or liquor business get minus 50 points on SSE. …. so on

This Social Stock exchange to be aggressively promoted. And Two prong strategy will work:

Strategy 1:Government should encourage the companies to score High of the SSE by formation of Corporate Sabha (other two being Lok sabha & Rajya sabha) . Member ship to these should be on the basis rating on this social Index . Undoubtedly Ratan Tata will chair this corporate sabha they have done massive social work keeping low decimal level .

Strategy 2: A brilliant campaign to be run by all the media companies together. This campaign should create a perception ( which is a reality ) among the common man that companies high on SSE are of different class.

Such initiatives will shift the attention of corporate from wealth creation to wealth distribution

Nov 7, 2007

OLD under JOLT

The saying "OLD IS GOLD" doesn't seem to be holding true for senior citizens .

At one end the buying capacity is reducing due price rise and at the other end senior citizens have no source of extra income. Govt may claim the inflation is under control by publishing statics but reality seems different . I remember couple of year back groundnut oil which was available for less than Rs 45/ litre. Today its costing Rs 90plus . Imagine what must be happening to the retired people who have fixed income .

My study reveal that on an average the saving of the retired people is approximately between 15-20 lacs (max.) plus a BIG house in prime location . They are living on interest income generated from this saving which are mostly in Postal MIS , PPF , PF and Bank deposit /fixed maturity plans . This income has dropped significantly due to drop in interest in bank deposit from 14% to less than 9 % today ( longer tenure ). Same is with other saving instruments like PF , PPF , Postal scheme MIS etc

Few additions to the problems of senior citizens are :
- Families are becoming nuclear or settled abroad. FMC(Fast Moving Couples ) have no time for parents .No emotional support available to seniors .
- Representatives from Broking/ Investment firms misguiding the seniors .
-Insurance Companies are insuring those who are healthy ... and so on

Objective is not to scare you but to reinforce the concept of "Retirement Planning " while you are young . Must start the retirement planning today and make your retired life safe . Few actioanbles are :
1) Invest in term plan for maximum tenure
2) Go for critical illness plan upto 20lakhs with maximum tenure as this will protect you against any major expenses
3) Take a mediclaim policy for yourself and wife
4) Ensure that you have auto renewal instruction for all insurance cover .
5) Invest in direct equity and Mutual funds . Hire the services of a good experienced wealth manager. Pls ! Pls !! Pls !!! donot judge them on external appearance /gadgets they carry . Beware of advisors ( not all ) of the private banks . Remember its your hard earned MONEY . JUST GO FOR CONTENT . Even a ordinary looking old fastioned LIC agent can can give EXTRA ORDINARY inputs .
6) Invest in real estate ( 2nd home ) at the locations you are able to visit at least once in month comfortably or you have someone to take care of the property. No point investing in chennai when plan to settle down in Mumbai.
7) Avoid shifting jobs after 35 age . If you plan to settle down at Pune than take-up an assignment in the same city . You may lose on monetary front as immediate impact but in long term you will definetly benefit . As will you have lots of local contacts by the time you retire which money cannot buy.
8) Be member of local clubs or association .You can even actively participate in local event like GaneshMahothsav. This again will help you develop contact .
9) Identify local NGO’s and keep participating/helping them . Once you retire you will realise that you have a place spend your free time which is also valued
10) Regularly reading paper /books etc is a good habit to develop . This is very cost effective solution to spend quality retired life independently.

Oct 29, 2007


Switch on your TV and watch any business channel Or even turn the pages of any business magazine /newspaper. It makes you feel Wow !! Economy is doing great !!
- Stock markets booming to 19k level
- Inflation under control.
- Huge FDI inflow
- Foreign reserves at comfort levels
- Indian Companies doing overseas acquisitions
- Number of CEO taking more than crore of salary have doubled
- Number of billionaire from India are growing at rapid pace... So on.

Take a drive 30 km away from city you live in and you will see REAL INDIA. People still struggling to for basic need : ROTI, KAPDA aur MAKAN. 98% of India's population does not participate in the equity markets

The India shining appears to be poverty elimination program for higher middle class and rich class. Nothing concrete seems to be coming in for masses.

India doesn’t need mass production. We need production by MASS. Our population a strenght and not a weakness. All we need is generation of employment. Entrepreneurs will play a key role. Smart brains from IIT/IIM should look possible career option in driving various government initiatives. We need people like Nachiket Mor (ICICI) who dare to take up the jobs which have less glamour . Education Minister should spend less time on “ quota system”. We should make it mandatory for all the management / engineering graduate to do a one year assignment in rural India as a part of curriculum ( Similar to the medical ) .

We need to act quickly to spread the benefits of India shining to mass. The disparity in income levels will generate problems of plenty

Am I sounding like a politician??? No Blame Game . These are thoughts .

I want to be a part of of solutions and hence I have made a small beginning to support those who are fighting a losing battle.

I have set aside small kitty of Rs. 5000 ( pls don’t laugh ) this Diwali for initiating much talked about “ MICRO FINANCE “. This is to support my car cleaner, maid servant , Milk Man. I don’t expect them to payback but my KYC say they will. I plan to give this good news to them along with Oct end salary . This thought itself is giving me a great feeling .

Do join me or atleast share any such thought that I can implement to better the life of masses

Oct 18, 2007


Every organization has three categories of employees. These mixes can be a key indicator of the future growth of the organization. It’s this mix that should help you predict the future of the company.

Category 1: (Smart once): They are the sachin tendulkar’s of the world. Focused towards making good records. However, they playing good innings when the country needs them is RARE .Past experience indicate candidate create their own brand by leveraging the strengths of these companies. Seldom they do end to end delivery but they have jack of all master of none. Truly general managers.

Category 2 (Latch on type): Just two words keep them high on the career path ie “ YES SIR attitude “ . They are quick to identify the leaders and just latch on to them. They lend unconditional support to their master. This makes them the power centers and also gives the master a comfort in pushing his plans. So it’s a win-win situation That’s the way for them to make it to TOP and are always in the CORE group. But the only threat is when the organization is in the wrong hands !!!

Category 3 (Hardworking type): They are the backbone of the organization. Revenues, power of execution etc is primarily belong this category. Keep a watch on how are these employees are treated. Companies having good representation of this category are always the industry leaders. Only visionary CEO’s backed with excellent HR practice can nurture this category.
Worried about the future your company than keep a watch on top management representation!!!!

May 22, 2007

Saved from Cheated( Every Car Owner must Read)

Written by my Wife .........

We were coming from Pune to Mumbai on sunday evening. When our car was at the signal at Chembur Naka, one man came running from footpath side and told my husband that there is a spark coming from bonnet side, looks like wire is short, check it. He said this much and crossed the signal quickly. We got worried and stopped the car in sideways after crossing the signal. There was young boy, dark, thin standing there, as if he was waiting for us. He guided my husband who was driving to the car on sideways. Then he asked him to open the bonnet for checking the spark problem. The boy asked for cotton cloth to clean his hand, Vikas came to driver seat to take the cloth, while doing this the boy loosen the wire toward white cylinder. Boy asked to start the car, then the big sparks came. He recommended that wire needs to be changed & vehile needs to be taken to garage nearby .
Another boy came running to help us near the car garage, he also did something, he ask to check, and sat on back seat of our car. This time the car started vobelling. Then he said the problem seems critical and ask to take left turn to his friends garrage. After reaching Bhaki Bhavan, he said , let me show you exactly where the problem is, so my husband stopped the car. Both got down from the car, and opened bonet to see the exact problem.Then this boy said you need a spare part replacement which will cost Rs 4500 and his labour charges of 300. Vikas initially agreed that went with him to buy the spare part from nearby shop. I felt suspious hence I told Vikas over mobile that this seems to be racket, as I had read news similar this incident where the man was cheated. Hence dont trust this man, please verify.
Immediately Vikas came back towards the car and called his NISHAD (Service Advisor)of Maruti authorised(Sai Service Andheri). NISHAD was quick in extending help inspite of it being Sunday and cautioned us on this racket. He helped my husband to rectify the problem by giving instructions over the phone. Post this car started running smoothly without sparks, vobelling also stopped.While conversation was on with Nishad over phone, the boy ran away as he understood that the they cannot cheat us .

Thanks to that person who wrote article in Marathi paper, which made us aware that such a thing can happen. and NISHAD who help us over phone on sunday evening else we couldnt have understood and resolved the problem.We saved our money and time along with mental peace.

In case you are getting your car service done from the same dealer than make sure that you have good rapport with ace service advisors like Nishad, Jitendra Pawar ,Manohar and D'mello.

Mar 23, 2007

Wealth Creation

Step by step investment is process of wealth creation !!!

If you are serious towards creation of wealth than the 1st step is to locate right advisor .

All the private sector banks are focussed on increasing fee based income & have placed Relationship managers in all the branches . Most of these branches have Relationsship managers who are not well informed & they make you invest purely based on some historical data . They ONLY recommend mutual fund & insurance to meet the targets . KEEP AWAY FROM SUCH ADVISORS !! & Donot get trapped !!!

Remember first step is locate RIGHT advisor !!!

wealth will just follow