A few interesting links

I have finally uploaded the articles in readable format......

Do check them out n give me a feedback............

In case of any problems please feel free to contact me on [email protected]
 
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Pratik please post the article and not the links alone.Try copying the article part by part and not all at once.
Regards,
Melroy
 
Pratik please post the article and not the links alone.Try copying the article part by part and not all at once.
Regards,
Melroy

i tried that but its not happening and my office work hardly permits me to do the changes dude......
its too time-consuming......................
 
I agree its time consuming,we all have done it.No issues,We do not want to redirect people to go to another site , but to make it easy for everyone to read all the important articles here. Regarding the images, you jus copy the entire matter along with the image.
Ctrl c - Ctrl v...

Regards,
Melroy
 
HOW TO TAKE HOME A HIGHER SALARY


"Can two individuals having the same cost to company (CTC) package, earn different take home salaries?" a friend of mine enquired over the weekend. "Interesting question," I thought. A little bit of number crunching and I came up with the answer.

Yes, the salaries of two individuals having the same CTC, can vary. It all depends on the way the salaries are structured.

Let us take an example of two friends Ram and Shyam, who work for different companies but have the same CTC package of Rs 6 lakh (Rs 600,000) per annum.

As can be seen from the table given at the end, Shyam's takehome salary per month is Rs 45,937 whereas that of Ram is Rs 40,330. A clear difference of Rs 5,606 per month or around Rs 67,200 per annum, for the same CTC package!

Now how is that possible? Well, the answer to that question is very simple: Shyam's package -- as can be seen from the table below -- is heavy on reimbursements. The money Shyam gets as reimbursement is not taxable as long as he is able to provide bills for the same.

On the other hand, in Ram's case there are no reimbursements. Given this a major portion of his salary is taxable.

Both Ram and Shyam pay a rent of Rs 10,000 per month. The house rent allowance (HRA) in case of Ram is Rs 12,500 per month, whereas in case of Shyam it is Rs 6,250. As per the Income Tax Act, the entire HRA is not tax free. The tax deduction allowed is limited to the minimum of: a) The actual HRA an individual gets; b) The actual rent paid minus 10% of salary (which includes the basic salary plus the dearness allowance); c) 50% of salary if the individual happens to live in Mumbai, Chennai, Kolkata and Delhi and 40% of the salary in other cases.

If we follow the above rule the minimum in case of Ram works out to Rs 7,500. This figure comes from the second option. The actual rent paid is Rs 10,000. 10% of salary in case of Ram works out to Rs 2,500 (10% of basic salary of Rs 25,000). The difference between the two works out to Rs 7,500.

In case of Shyam the minimum works out to Rs 6,250, which is the actual HRA he receives. These are the amounts they are allowed as a tax deduction for their HRA.

As can be seen, Shyam gets his entire HRA as a tax deduction, whereas that is not the case with Ram. He only gets Rs 7,500 of his total HRA of Rs 12,500 as a tax deduction.

Other than this, companies these days have to pay a fringe benefit tax on the reimbursements it gives to its employees. This tax in most cases works out to 6.798% of the total reimbursements paid.

In Shyam's case the company does not want to bear this tax and passes it on to Shyam. The total for the year in case of Shyam works out to Rs 17,108 for the year. Shyam pays this up happily. His logic is that paying a tax of 6.798% is any day better than paying income tax which can be 10%, 20% or 30%, of the taxable income, depending on the tax bracket.

Both Ram and Shyam make their Section 80 C investments of up to Rs 1 lakh (Rs 100,000). Other than this they also have a medical insurance policy for which they pay a premium of Rs 10,000 per annum. For this a deduction is allowed under Section 80 D of the Income Tax Act.

Due to all these reasons the yearly tax outflow for Ram works out to Rs 80,031. The same in case of Shyam (including the FBT he pays back to the company) works out to Rs 30,755.

A clear difference of around Rs 50,000. And that is why Shyam earns more than Ram.

The moral of the story is, if you are in a position to negotiate your salary structure, go in for a structure that is heavy on reimbursements. That way the tax outflow will be lesser and, hence the take home pay much higher!
 
10 WAYS TO BOOST YOUR SELF-CONFIDENCE


How many times during your growing years did your parents tell you to walk straight or sit up straight? You may have casually dismissed it, or maybe you didn't really pay attention. As an adult, though, you realise the wisdom of the advice.

Simple practices like these don't just help you physically but also psychologically. Psychologists say that there are many little ways that can instantly help boost self-confidence. Here are some easy tips on how you can do just that.


Grooming

The first thing that works for a confident person is his or her personal hygiene. Right from your hair, your face, your body, your fingers, and your skin -- keep them clean and well maintained. If you have a body odour problem, take remedial measures (use deodorants and bactericidal soaps).

Fighting shy? Try yoga

Check your teeth and get them fixed if there is a problem. Brush everyday twice, if you can, even after meals. You can even pop in a mint after your meals.

Take care of your skin by eating the right food and drinking lots of water. If it needs more care, take help from professionals.

Knowing you look your best is an easy and effective way to help you act your best.


Dress for success

Dressing well and appropriately can do wonders for one's self esteem. Many of us wear clothes that look nice on the clothes rack but do not necessarily suit our body type. Wear clothes that fit you well. If you are on the healthier side, wear clothes that aren't too tight yet not loose or baggy, which just adds to the bulk and does not make you look any better.

Dressing well does not mean you need to spend your entire salary investing in designer brands. Choose your clothes wisely -- it's quality not quantity that counts. Pick up a few outfits that make a statement instead of loads of outfits that do nothing for your confidence.

The other thing to do is watch the popular verdict. If most people say pink is your colour and you feel comfortable wearing pink, do it.


Good posture

Good posture has an immediate and lasting impact on your confidence. Do you recollect the time you were at the door, about to face an interview? What did you do instinctively? Didn't you take a deep breath? By doing that two things happen -- your stomach goes in and your head is held high.

Always hold your head high, throw your shoulders back, keep your back straight and walk with confident steps. Practice in the mirror a few times to make sure your doing it right, without looking too stiff.


Walk smart

Do you take small, shuffling steps? Do you fling your arms around when you walk? Stop! You may be doing something sub-consciously that does not really compliment your style.

Be aware of how you walk. Be quick and energetic with a spring in your step. Think of a nice outdoor activity that you like doing, feeling the breeze on your face and letting your heart guide your walk.

If you are still not comfortable, try this age-old trick. Place a big book on your head and try to walk without dropping it. This is a great way to improve posture and gait.


Smile often

To complete the look, make sure to smile. Smile as often as you can and, if you can manage, let a tiny smile hang around the corners of your mouth.

In all your interactions, look people in the eye, greet them and smile. You'll see the other person transform in front of you.


Be empathic

Your confidence levels rise drastically when you successfully connect with people around you. For that you need to be empathic towards your family, friends and colleagues to begin with. Once you can deal and help other people with their emotions and problems, you immediately increase your influence with your circle of friends, acquaintances and colleagues.


Learn to calm yourself

This is probably the most important factor when it comes to confidence -- being able to face every situation calmly. But this does not come naturally to everyone, which is why you need to train yourself.

Find activities that calm you -- like talking a walk, listening to music, dancing, talking to your friends, reading, writing, gardening, cooking -- any activity that makes you feel happy. Do it once or twice a week or month, depending on the time you have.

Meditation techniques help too.


Empower yourself

Knowledge almost always boosts self-confidence. Empower yourself with knowledge -- of your surroundings, of your job, of people, of the world around you. A good grasp of current events helps you strike up meaningful conversation and ensures that you're not left out.

One of the simplest things to do is read the newspaper, talk to people and be aware and observant.


Keep a soul knick-knack

A soul knick-knack can help you tide over those times when your confidence is tested. It could be your guru's photo, a gift from a loved one, your lucky charm, or even a photograph of a loved one. This soul knick-knack needs to be something that can bring a smile to your face, specially during testing times.


Find solutions to problems

Do not procrastinate or run away from your problems. The sign of a confident person is that he or she takes the problem head on and finds a solution. If you don't think you can handle it on your own, there is no shame in seeking help.



Talk about it with friends or colleagues, or write it down while listing out various solutions, pros and cons.
 
TIPS TO EXPLAIN THAT SUDDEN RESIGNATION


Everyone quits -- something sometime!

It's been breaking news -- presidents quit, ministers resign, managers' shift -- and as you come a few notches down the ladder, your prior job and the terms on which you quit acquire great significance when it comes to getting a new job.

However easy it was convincing the previous employer to let you go (and suddenly at that), it is somehow inversely proportionate to the difficulty one has in explaining the same scenario to a prospective employer.

All of us, at some point, have had to tell the prospective employer why we quit the previous job. But usually it's the suddenness that the prospective employer latches on to and like a diamond cutter he or she examines the fineness of your character (absurd as it sounds, people do form judgments based on that, and frankly if the cover story doesn't do justice, it doesn't matter what lies inside).

Madhatters quitting ads

If you work in an industry where everything is based on projects, then the question of a sudden resignation is treated differently. But take for instance the advertising industry -- an industry based on constant change, famed for its 'zing', is somehow infamous for sudden resignations. You hear of more writers on breaks than good writers writing.

Mostly, the reasons for resigning may not involve medical or travel, time, space or any other profoundly sane explanation. It might just take two words like 'thank you', and 'shalom'! Coming first-hand from a copywriter who had to explain the BIG reason why he needed to resign from a perfectly settled career, creative claustrophobia was a valid reason. However, with the exception of those on creative teams, all of us might not be so lucky to get away with.

The BPO syndrome

People working at BPO outfits are far ahead of others with respect to resignations. With competitive pay packages, here it's mostly money that plays the devil's advocate. While process may not differ, the packages and incentives are surefire motivators for any employee to come up with '100 Reasons WHY I Quit' and '110 Reasons YOU Should Employ Me'.

But honesty gets you places and lying to your prospective employer (at least not about this) is not a viable alternative. There also may be many other reasons why you quit -- the ever-changing shift timings, travel, work environment, work pressure, and the very bestseller the good ol' medical reasons.

4 expected reasons for that sudden resignation

Forget the 'Errr, I was feeling --', whatever your reason. HR departments are famed for the sleuthing and spade work they carry out. Yes, they will call your previous employer, and they will try to find out as much as they possibly can about you. So be smart. Be honest and neither you nor your employer need be surprised or shocked later.

* My family needed me: Of course leave is an option, but as most tales go, family emergencies abide to the clauses set by nature and are usually accompanied by panic and pandemonium. Mostly, this response evokes a sense of empathy from the prospective employer, unless of course, you plan to work for the Tin Man from Wizard of Oz (and even he was looking for a heart).

* The doctor said I shouldn't do that anymore (or for some time at least): Clap, clap, clap. This one's a winner! Not too many people will debate medical reasons. So you got one base covered. A reason beginning with, "My doctor says", will usually end with "Hope you feel better soon" and "Good luck", followed by a heartfelt pat on the back. just make sure your problem was a tretable one and doesn't reflect too badly on you.

* I traveled longer hours than I worked: A bad excuse and an even weaker reason. This turns up the spotlight, or wait, it's like the sun shining on the fact that you are badly planned, or did not want to take the effort to plan. So either the job wasn't worth the journey, or the work was a waste of time. Whichever, make sure, the message communicated isn't one of being lazy or uncoordinated. Although many make long journeys to work, they usually know before they take up the job what the travel involves.


* I had a fight with my boss: Get real! Everyone has had, or is still having a fight with their boss. The wise get over it; so shed your ego. The war will rage on but the victories are in the little battles. And not fighting (like primates) is the key. The Jungle Book was fun, so was the law of the jungle, but today Baloo is selling cornflakes and Mowgli is using a Blackberry. Times have changed; you simply cannot use a disagreement as a reason to quit. That's being a quitter, a kind of character sketch no individual or employer would like.

A friend, and a very hot-headed one at that, had a fight with her boss. She quit and had her laugh, but the final blow was dealt by her employer, as at her next interview, (as luck would have it), the company owners just happened to be friends. So word got around that a talented designer who ignored protocol was a waste to hire. So watch your step. If you are good at what you do, you can throw a few tantrums, but make sure they stay a few.

It doesn't take a genius to figure out you left your job because you are looking for something better. We are always looking, for perfection, be that what we wear or where we work. All you need to do is be prepared.
 
5 WAYS YOUR MONEY CAN MAKE YOU RICH


Most of us believe that income and wealth are the same; we often loosely say that somebody is rich because s/he has an income of so much per year. That isn't strictly true. 'Rich' is about wealth, and income may have nothing to do with it.

For instance, if you have a high income but spend it all, you might have a high-spending lifestyle, but clearly your wealth won't grow.

Instead, you grow rich by making your money work harder and smarter for you.

First, count your money

Do you know how much money you have? I mean, really know; not vague ideas and notions but know how much you have, more or less on your fingertip?

Hopeful entrepreneurs approaching venture capitalists for funds to fuel their business dreams are advised to get their "elevator pitch" down pat. This means that they ought to be able to "sell" their business proposition within the 2 or 3 minutes that a typical elevator ride takes. To make a convincing elevator pitch, it's obvious you must know the pitch known as well as the back of your hand.

Similarly, before you can set your money to make more money for you, you must first know how much you have - and in what form. Sounds like common sense, right? But, do you really know?

Most of us don't. If you do, well, you are an important step ahead.

Activate lazy money

To take just one example, how much money is lying fallow in your bank savings account, for example? Earning the lowest of interest rates going? And, why? Chances are it's a result of simple inertia.

Anything more than a few months of your monthly expenses lying in savings accounts is lazy money. Repositioning any excess money even into a no-brainer such as bank FDs will smartly perk up your returns.

Moving up the ladder of higher returns

Having activated lazy money, you are then ready to tackle the adrenalin-rush question: How to get higher returns from your money?

Instead of bank FDs, for example, you could opt for equally safe but higher return options, such as post office savings schemes, saving certificates, and government securities and or fixed maturity plans of mutual funds.

The real leap in your quest for higher returns, however, comes from a move into the world of "risky" investments: equity and property, to name two popular avenues.

Typically, such a leap to equity would at least double your returns, say from 7 per cent to 19 per cent per year. (The Indian stock market returned about 19 per cent per year in price appreciation plus dividends when smoothed over the last 12-15 years.) Not impressed?

Well consider this: Rs 10 lakh (Rs 1 million) invested at 7 per cent will grow to less than Rs 20 lakh (Rs 2 million) in 10 years.

The same modest Rs 10 lakh invested at 19 per cent morphs into an unbelievably larger Rs 55 lakh (Rs 5.5 million)-plus - almost triple the amount from "safe" investments.

Sure, equity and property investments come with some risks that bank FDs, savings scheme, etc. don't.

But there are ways to keep such risks within your comfort zone. What is important to understand is that the road to making more money with your money passes, inevitably, through investing in higher earning avenues, typically, shares and equity mutual funds and property.

Tax smarts

In squaring the circle of higher returns, you also need to grasp some simple tax-smarts.

The big-bucks tax break currently available is from investing in shares or equity mutual funds, and holding these for at least 12 months. Any gains you make after selling them after 12 months qualifies as long term capital gains and are completely tax free.

This is perfect because the big returns from equity in any case come from price appreciation over a period of 3 to 5 years. When you hold shares for such a period, you don't have to pay any tax at all, irrespective of your capital gains, whether it's a few lakh or a few crore!

While investment in property isn't quite as tax-efficient but significant tax breaks are available for buying a residential house, for example.

Review, review, review

Finally, once a year, review all the first four steps, and do so year after year. You would be pleasantly surprised by the results.

Simple enough, no? But, then, simplicity is the inherent beauty of all fundamental principles.
 
7 SECTORS YOU MAY INVEST IN NOW



First it was the yen carry trade, now the subprime crisis and the following credit crunch. The jitters in the American mortgage crisis are felt across the globe. Most indices around the world are witnessing rampant volatility because of selling pressure from speculators, and hedge funds which are selling all they can (especially liquid Asian securities) to meet margin calls.

Ergo, Indian bourses too, could not save themselves from being subprimed in this situation as the credit crunch of the west appears to be getting plugged using the profits from the east.

The Sensex has lost more than ten per cent over the past four weeks, taking a free fall from its recent peak of 15,794 on July 24. Add to this, the conditions back home have been a mixed bag on all fronts - corporate earnings, interest rates, inflation, rupee exchange rate as well as politics.

Although the growth in corporate earnings across sectors has been decent, the first quarter of FY08 for a number of companies has jolted severe blows on their profitability due to the appreciating rupee, especially for those from the information technology and export oriented sectors.

Interest rates have been high in an effort to curb inflation while in the recent past inflation has hovered below 5 per cent, putting to rest the fears of further rise in interest rates in the near future.

However, high liquidity in the domestic markets does not deny the possibility of tightening in the monetary policy, thus keeping investors on their toes.

Without doubt, it becomes increasingly difficult to find avenues to invest profitably, when markets are directionless and the prospects appear bleak. Dig a bit deeper, and one finds that there is little reason for optimism to completely fade away. And if you are a long-term investor, the current crisis is a great opportunity to accumulate stocks.

Still shining

India's economy has been growing at a phenomenal rate of over 8-9 per cent for the past couple of years, and consensus suggests that even though the growth may slow down a little, the economy is expected to grow at over 8 per cent in FY08, and between 7-8 per cent in FY09.

The slowing down of growth in the gross domestic product is being attributed to a number of factors such as high interest rates, the inflation targeting stance of the central bank and the potential end of capital spending cycle in domestic capacity expansion as well as acquisitions.

The consensus of 7-8 per cent growth in GDP holds good in spite of high interest rates, concerns over inflation and an appreciating rupee.

Says Abheek Barua, chief economist, HDFC Bank [Get Quote], "I do not see any problem with the GDP growth at 8.3 per cent in 2007-08 and between 8-9 per cent over 2008-09, even though there are some signs of a mild moderation in growth as a response to the high interest rate regime we have been following for the past 12-18 months."

This is largely because of the widely held belief that interest rates have nearly peaked out, and inflation is more or less under control.

Andrew Holland, executive vice president and head - strategic risk group, DSP Merrill Lynch says, "Interest rates are likely to remain steady until the end of the year," adding that "there would not be any significant impact on GDP growth."

"In the short term, there could be a possible upside in the interest rates if the global credit crunch becomes acute, otherwise there is no significant upward pressure on interest rates," says Abheek Barua.

"Further, the slowdown in growth of GDP could be attributed to a slowdown in export growth, rather than interest rates and inflation," he adds. Of late, the contribution to incremental export growth has been increasing to the growth in GDP, even though the absolute contribution of exports to GDP is fairly low (at about 12-15 per cent).


Talking business

So far, the corporate earnings growth has not shown any significant downtrend, barring some sectors like information technology and export oriented companies.

"However, high interest rates and commodity prices have left some negative impact on consumption, manufacturing and investment oriented sectors," says Barua.

Going forward, although the growth in earnings may slow down a little in the short term, it is expected to remain secular over a longer time horizon.

"Even though there appears no risk to earnings growth, one may wait for some clarity whether there is a slowdown in the US or not, which would further dictate the trend of earnings, and hence, the markets," says Shriram Iyer, head of research, Edelweiss Capital.

What does this mean for the stock markets and valuations? Globally, the appetite for risk has receded in the past few months. This has led to a contraction in price-earnings ratios across all sectors. Therefore, valuations may still continue to be battered depending upon what route the global markets take.

Homeward bound

A fairly stable macroeconomic outlook, in spite of a global turmoil suggests that the domestic growth is not at risk. An 8-9 per cent GDP growth over the coming couple of years paints a decent picture of domestic consumption growth and makes a compelling case to look at sectors which rely less on exports and more on domestic consumption.

Sectors like automobiles and consumer goods have underperformed over the recent past owing a slowdown in consumption growth.

On the other hand, rising infrastructure spending has triggered a boom. Sectors which are likely to benefit more from the domestic consumption growth are likely to be winners in the long run.

The only risk with these stocks is that they have been the darlings on the bourses for quite some time now and most global investors have substantial holdings in these stocks. Thus, if global funds continue to face liquidity crunch, there could be further selling in these stocks.

But this would precisely be the opportunity to make purchases.

Pockets of strength

The past few months have stripped the sheen off a number of hot favourite sectors on the bourses like automobiles, capital goods, cement, commodities, information technology and the likes, which have a relatively higher sensitivity to changes in interest and exchange rates compared to other sectors.

On the other hand, sectors like banking and financial services, construction, consumer goods, media, power, real estate and telecommunications are largely driven by surging domestic demand, rising disposable incomes, low penetration and scarcity of supply within the country.

Banking and financial services

Although the US subprime crisis has taken a toll on the sector over the past one month (the BSE Bankex lost about 13 per cent over the past one month), thanks to high interest rates and large public offerings, the sector has been plush with liquidity.

On the one hand, growth in loans slowed down to 22 per cent y-o-y versus 27 per cent in the previous fiscal, deposits grew by 26 per cent, highest in ten years owing to high interest rates.

The central bank reacted with a hike in cash reserve ratio to 7 per cent and tightening of norms for fresh external commercial borrowings by corporates for their rupee spends as a measure to keep the dollar inflow under check.

Strong demand for credit, peaking out of interest rates, rising revenues and better operating efficiencies for banks are likely to keep the going good for this sector.

For other financial plays, such as asset management companies and financial services firms, a growing asset base and a surge in demand for financial services indicate the imminent growth.

Construction and engineering

Dire need for developing quality infrastructure across the country and the continuing infrastructure spending will mean strong business flow for this sector for the next few years.

Most infrastructure companies are sitting on significant order books, which grant the sector an assured stream of earnings.

However, the effect of high interest rates may show in the form of higher cost of funding after a certain lag, as the funds, which firms have already raised at lower interest rates get exhausted.

On the flipside, the slowdown in growth may not show as much, since the industry will be growing from a higher base this year, compared to the previous fiscal. Political uncertainty is a risk for this sector as projects could get delayed. But a fall in prices could provide a good opportunity to log on to these stocks for the long term.

Consumer goods

Consumer goods have been beaten for long, and the sector's valuations are almost at their historic lows, owing to a slowdown in growth, high competitive pressures and price wars among the players.

However, with consumer spending on the rise and easing pressures on the cost front for consumer goods companies, most players have reported decent growth in earnings in the last quarter.

The first quarter of FY08 witnessed the highest rise in operating profits and net profits of consumer goods companies in the past couple of years.

Further, with raw material prices softening, margins are likely to improve. Hence, with low valuations and an optimistic outlook for the sector, it is the time to buy.

Media and entertainment

Figuring among the high growth sunrise industries, media and entertainment sector has been delivering phenomenal growth on the back of factors such as solid growth in advertising revenues, advertising rate hikes, increased revenues from pay television for television broadcast companies, declining newsprint costs for print media firms as well as high operating and net margins.

Multiplex companies too, are riding high on expansion plans, rising average spend per consumer and higher footfalls. Improving quality of content, increase in programming hours, robust advertising revenues and better operating efficiencies pave the path for the sector continuing to remain an outperformer.

Power

Phenomenal demand and lagging supply means a huge shortage of power across the country.

In India, the peak power shortage amounts to about 13 per cent, while the total energy shortage is about 8 per cent. The Central Electricity Authority has assessed that a capacity of around 100,000 MW is required during the 10th and the 11th plan periods, while the actual capacity addition during the 10th and 11th plans is only to the tune of 21,180 MW and 78,000 MW.

As a result, the sector is looking at a grand opportunity of volume growth domestically for years to come. High volumes, coupled with better realisations are likely to drive growth for the entire sector.

Real estate

Again, with a huge demand-supply gap, the Indian real estate is expected to grow at a compounded annual rate of 20-22 per cent - commercial and retail real estate being the drivers of growth. The residential front is not dull either - the country is facing an estimated shortage of 22 million homes by FY10.

In the recent past, the sector has seen prices bolstering to unrealistic levels across the board and there appears to be a correction in the prices of underlying real estate prices in tier-II and tier-III cities.

Therefore, the sector would largely rely on volumes, and developers will be compelled to improve operating efficiencies. However, rising income levels, greater penetration of housing finance and growth in services - mainly IT/ITES industries in tier-II and tier-III cities will continue to be the key drivers.

Telecommunications

Robust volume growth in terms of number of subscribers which drive revenues, and expanding margins have kept the sector buoyant for a long time now.

Although price competition among players is leading to lower average realisations per user, companies have been able to maintain or improve profitability.

Further, the additions in the number of subscribers have been strong, and are likely to remain strong due to low penetration. Macquarie Research predicts the wireless subscriber base to grow at a compounded rate of 37 per cent annually between FY07 and FY10.

The recent hikes in tariffs by large operators like Bharti Airtel and Vodafone Essar may trigger a rising trend in ARPUs, and in turn help companies improve profitability.

Add to this, a huge value unlocking potential is imminent in the form of telecommunication towers in case of large established operators like Bharti Airtel and Reliance Communications.


A word of caution in conclusion - given the current volatility, it would not be advisable to make your purchases at one go. But keep a buffer to make purchases in case prices go down further making quality stocks more attractive from a long term perspective.
 
THE FOUR GAPS IN B-SCHOOL TEACHING


There are many good things that business schools teach and develop in future managers. They are certainly important for the development of any economy. However, there are things that B-schools do not teach.

They can be explained as the Four 'R's:

Risk taking: Risk-taking is not taught. It can be inculcated, cultivated and accentuated. It is important that when you come out of a B-school you do not only look at becoming a manager; you should also be encouraged to look at becoming an entrepreneur. Risk-taking ability is some-thing that helps create path-breaking ideas come to life.

B-schools must not only develop managers but also develop entrepreneurs.

Ridicule facing: Many a times when you start something afresh or come up with a new concept in your company, as a manager or as an entrepreneur, many people may laugh at you. They may ridicule you. However, you need to believe in yourself and follow your passion and creativity with tremendous resilience. It is not important who laughs first.

According to me, what is important is who has the last laugh, who laughs all the way to the bank.

Revolutionary thought leadership: This is important in any business venture, whether as a manager or an entrepreneur: you need to understand the needs of the consumers, meet those needs and improve the quality of life of the consumers.

This will help both the topline and bottomline. Unfortunately, B-schools propogate an evolutionary approach when they should be encouraging revolutionary thought leadership.

Relationship building: Hardly any attention is paid to this 'R'. Ethical, honest and sustainable relationships with customers are critical in today's competitive world. My brand mantra for relationship building is Sambandh nahin toh sab-bandh.

If these four gaps - the Four 'R's - are taught, developed, encouraged, inculcated, cultivated or guided, the boom would be faster not only in the economy, but also in the self-confidence and progressive development of every management graduate.
 
WHY SHOULD YOU CONSIDER AN EDUCATION OVERSEAS


Gone are the days when one has to go through a limited number of options in India -- today there are engineering colleges all over the country, more medical colleges and numerous vocational schools.

Still the influx of Indian students to foreign universities and colleges is on the rise.

So what propels students to study overseas? Is it because of too much of competition in India? Or is it because of better quality of education? Or is it a global exposure?

It would be difficult to point out a specific reason for why the girl next door is packing her bags and leaving for the UK tomorrow.

It might be the frustrating education system in India; it might be freedom from home; she might even be desire to add value to her CV.

If the issue has you conflicted and confused, you're not alone. So let's explore it in a little more depth.

Overview

Foreign universities provide internationally recognised qualifications of the highest standards.

As for the British education system, they combine the elements of tradition and modernity. Some British universities are among the oldest in the world and some are most recent.

As for the American universities -- community colleges are an increasingly popular choice for international students who seek higher education in the United States. These institutions provide an affordable education and an opportunity to transfer several high quality four-year programmes throughout the United States.

Another alternative destination is Australia, where more and more students are turning to build a future. The speciality of Australia is its unique kind of education -- a learning style that encourages innovative, creative and independent thinking. This style encourages you to develop distinct skills, such as flexibility and lateral thinking, which will assist you both academically and professionally.

A recent trend shows students flying to destinations like Singapore and New Zealand. Switzerland and Germany are other new hot spots. Switzerland has earned a reputation for Hospitality teaching, which leaves the door open for lucrative career options. It would be quite unfair not to mention about China -- a lot of aspiring doctors have chosen this neighbouring country to fulfil their aspirations.

Let us look at a few reasons that drive students to seek foreign Universities:

Academic excellence


The quality and standard of foreign education are guaranteed through the work of several official bodies. The quality of a university's teaching and its general facilities are assessed by the Quality Assurance Agency (QAA). Research standards are examined by the Research Assessment Exercise (RAE) which publishes its findings every five years.

Value for money

The quality of a foreign degree is one of the major reasons why so many people go overseas to study. A Master's programme in the UK can be completed in one year thus saving a vital year in terms of career enhancement. A Master's from Scotland offers a two-year work permit after completion of the course. Courses from US or Australia lead to international job offers.

Benefits:

* The international exposure enables you to become a global player
* Opens up opportunities in international job market
* Adds value to your CV
* Provides environment to acquire skills that you might not learn in domestic environment
* Broadens your horizon

English: the language of business

Another major advantage of studying overseas is the opportunity to improve one's written and spoken English language skills -- considered the most important commodity in the international business world.

Conclusion:

Overseas education has instigated a public debate in the past ten to fifteen years. Be it among academicians, students, academic experts or the media, the issue has been thrust in the limelight.

Should students stay or should they go? This article has portrayed the opportunities of a Western education, but there are strong advocates on both sides of the debate.

Ultimately, you must remember that be it in India or abroad: education is not received, it's achieved.
 
CAT 2007: A ten-week study strategy


Attention, CAT aspirants:

You have less than three months to prepare and 2,00,000 strong competitors staring you in the face!

Do you have jitters yet? If not, you should.

By now, most CAT aspirants have completed their basic preparation. In this phase, students' scores in the half-length tests behave like the volatile Sensex -- unpredictably. So, if you think group meetings and loads of testing is all you need to continue improving your scores -- sorry, you're wrong. For the final few months, you should revise and review your study plan.

At this point, the strategic approach of a general is what you need, not merely a soldier's aggression. You must plan, execute, evaluate and revise. If you don't prepare properly, your percentile will decrease markedly by C-day.

Here's a plan of action for the final, a strategy for the final ten weeks of CAT 2007 preparation.

A factual, exhaustive and balanced study plan must have both micro as well as macro facets to it.

The micro aspect involves the day-to-day planning and subsequent execution of these points. This allows you to keep a consistent, steady tempo and pace to your preparation.


A micro view of CAT preparation

Your plan should be prepared and executed on daily basis. An example can be -- two hours on number theory, one hour on reading comprehension and one hour on logical reasoning questions per day.

Give simple, straight-forward descriptions of your daily tasks. Complicated or confusing directions will just leave you lost and discouraged.

Unlike your old and memorable Class X board exam preparation, you need to follow many books rather than concentrating on one or two. CAT has more and more questions from fewer and fewer topics. Hence the key is to exercise your skills on those VITAL topics from as many sources as possible.

All three sections -- quantitative, data interpretation and verbal -- must be touched every day. This will help you exercise discipline and will ensure that you devote equal time to each of them. Moreover, such a study plan gives a sense of completeness to your preparation on a daily basis and keeps your confidence and achievement levels up.

Every set of sectional preparation must be followed by an assessment (testing) of the same. So always keep one series of tests for the evaluation of each step of your micro preparation. An additional weekly combined test would be even better.

In the end comes another very important step: evaluation and analysis. All the tests taken must be evaluated properly and analysed. If possible, have a record on a spreadsheet of all the tests that you take.

In order to learn how to critically analyse your tests, register at www.tcyonline.com to attempt online MBA tests and see the analysis page at the end of each test. Such analysis will shed light on your strengths and weaknesses, helping you concentrate on where you need to improve.

But sticking to such a frequently updating plan may cause your overall preparation to move slowly. This may subsequently result in missing certain topics all together, or losing sight of the 'big picture.' Hence, a micro plan must stick to an overall macro plan.


A macro view of CAT preparation

Your macro plan should be consolidated and divided into weekly or fortnightly segments. An example:

In the next two weeks: Complete number theory, algebra and geometry from quantitative; practice at least 35 to 40 reading comprehension questions, 200 gap fills and 200 English usage exercises from the verbal section; practice approximately 400 data interpretation questions.

Use weekends to manoeuvre the pace of your micro preparation to match the macro milestones. Macro planning must be done by working backwards from November 15, 2007; this leaves you the last two days to conquer anxiety and establish self-control.

The milestones in the macro plan must be planned on the lines of mock CATs (specifically National level CATs). It is a good idea to appear in at least (if not all because of time constraint) two mock CATs conducted by institutes other than yours. This helps a test-taker in developing a more objective understanding of his performance vis-�-vis others.


Which areas deserve the most focus?

If you look at and analyse the actual CATs from 2004, 2005 and 2006, you can prepare a factual and accurate list of topics to be covered.

21chart1.gif


21chart2.gif


++ Data: Previous year CATs
** Analysis: Top Careers & You

As the above two charts show, the share of number theory in quantitative and that of reading comprehension in verbal is increasing. Your study plan must be structured around exercising the most frequently asked topics in the CAT -- hence, you should focus on these two areas. This will help you cover the most important topics first, moving down the areas in the decreasing order of their probability to appear on the exam.

Here's another informative chart, where we have summarised the contribution of the various sub-sections of quantitative and verbal sections in the total CAT:

21chart3.gif


21chart4.gif


++ Data: Previous year CATs
** Analysis: Top Careers & You

It is quite obvious from the above two pie-charts that reading comprehension in verbal and geometry and number theory in quantitative have clean pre-eminence over the other sub-section in previous. On the other hand, vocabulary and paragraph jumbles in verbal and time and work, ratio and proportion, and profit-loss sections made negligible contributions to the previous CATs.

Use this information to thoroughly cover the most important topics while spending less time on the least important -- this will help you increase your overall score.

Accuracy and speed: the perfect mixture

Remember that the CAT is not about solving 75 questions in 150 minutes. It is about solving 45 to 55 questions with 85 to 90 percent accuracy. Hence, attempting all the questions is not the mark of your achievement in CAT.

Accuracy is a distinguishing factor among the test-takers. But focusing on accuracy alone may lead to spending more than average time on the questions, which could cause panic towards the end of the exam. Therefore, an optimum mix of both accuracy and speed is desired.

Here are a few ways you can achieve an optimum combination of accuracy and speed before November 18:

*Strictly follow a preparation schedule in order to eliminate the possibility of stress and pressure near November 10 and 15 that otherwise arises because of pending examination.
*Keep a track record of your performance in terms of your total attempt together with percentage accuracy.
*Rank yourself on the above two parameters compared to classmates and other peers.



In the end, always keep in mind that clarity of your strategy and clarity of your goals will help you stay focused during these final months of CAT preparation.
 
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