IIPM History: January 2013

Tuesday, January 22, 2013

SATYAM: THE REAL CULPRITS

Rather than blaming auditors, the entire regulatory system must be cleaned from top to bottom

‘Preface to Standards on Auditing’ available with the Institute of Chartered Accountants of India (ICAI), says very clearly, “It (auditing) is undertaken to enhance the degree of confidence of intended users in the financial statements.” It also adds, “In conducting an audit, the overall objective of the auditor is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement.”

Now considering the case of Satyam, some may say it was actually the responsibility of the management, but Ved Jain, President, ICAI counters that view, “It is impossible that a fraud of such magnitude would have escaped the auditor’s eyes.” This definitely raises a question mark on the prudence, competence and honesty of auditors operating in India.

Read more....

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Saturday, January 19, 2013

ONLINE GAMING INDUSTRY: TOUGH ROAD AHEAD FOR INDIAN PLAYERS

Online gaming on social networking portals has today grown into a multi-million dollar industry. But while on one hand, international players are making ‘real’ money by selling ‘virtual’ goods, the Indian players are yet to show credible competence in capturing real value from online cash cows; B&E’s Pawan Chabra reports

“The first phase of growth for social networking companies came from online chatting and networking; however the maximum growth today comes via gaming and new applications,” explains Shivanandan Pare, COO, BigAdda, a social networking website from BIG Entertainment’s stable.

However, the point worth discussing is that while gaming on social networks like Facebook, Orkut, Tagged & Bebo are getting all the more popular by the day, what’s going on in the minds of the Indian online gaming & social networking giants? Are they gearing-up to make a business out of this opportunity?

Of course, while on one hand, challenges like low penetration of broadband outreach and high establishment costs are proving a hurdle for the Indian social networking industry, on the other, the market is witnessing a wave of domestic growth, with companies like ibibo, Bigadda, Bharatstudent, Apna Circle storming the market. The sad part however is that, while these ventures have created some ripples, practically, they stand nowhere when compared to the giant leaps of global giants like Facebook & Orkut. Even the enthusiasm levels of the Indian online gaming companies fail to match the same of international entities like Zynga. “The mobile gaming in India compliments the online gaming industry, but it will still take more time for Indian companies to gain leverage from the same and take the online gaming industry to a higher level,” says Ravi Kumar, Country Head, Gameloft India, which is one of the country’s largest mobile gaming content makers. As Kumar discusses further, he states that he has no plans to move into online gaming soon. However, Bigadda’s Pare begs to differ with his intentions to dance on the online gaming floor, as he explains, “Zapak is developing a host of virtual worlds for Bigadda and as soon as they complete the process, the users will able to play the same on our social networking website.” Some hope there for the Indian online gaming industry...

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Friday, January 18, 2013

DISCOVER THE DIAMOND IN YOU!

Nurture the qualities that make up a human diamond, and you will discover the diamond in you

As I look back, over the years, I realise that I’ve ventured far away from what I started my career with... I was supposed to be this management teacher whose passion lay in the areas of leadership and motivation. However, with time, especially after I wrote ‘The Great Indian Dream’ with my father, I have given very less time to writing on management! So much so that when I look back today, ever since the start of The Sunday Indian, I have only – and only – written on economics and politics, and at times on sports and cinema, but never on management! So this time, I thought I’ll write on my first love! More so, I have a reason for it. I really have been thinking – with the way our system is functioning, the best way to feel good and change things around is by changing ourselves, and by ourselves being the change we want to see! There is hardly anything that we can’t do if we want to, because we are all diamonds in waiting – in various stages. Some of us yet to be discovered, some of us yet to be cut, some of us yet to be polished, some of us yet to dazzle... And some of us – who have lost their sheen and sparkle a bit with time – in need of a re-polish! But we are all diamonds, that’s what I’ve always believed about human beings!

And if a diamond were to be the metaphor for us, then there are four things which make up a diamond... The first being the diamond’s carats. You would’ve always heard questions like, “How many carat diamond is that?” That’s the most important quality of a diamond. In human beings, carats are about the depth that we have; and it is represented by two Ps: Passion and Positive Energy! These are the two most important aspects that differentiate us from being a diamond with a high carat value! All successful achievers always have these two most important characteristics within themselves. They are extremely passionate about what they do... Passion for the poor is what made Mother Teresa go on and on despite being from a foreign country and being stuck in a dirty city with abject poverty all around. Such people are also always full of positive energy. They never see negativity in anything! You talk to them about anything and they have a positive attitude. Friends of Sabeer Bhatia say that even when he was nothing, he would always dream big. That’s the attitude which led him to create Hotmail! Thus, a human being’s carat value is determined by his outlook in life, which is in turn dependent on his passion and positive energy!

Read more.....

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Wednesday, January 16, 2013

STICKY POINT: ABORTION (TO ALLOW IT... OR NOT TO)

The debate on abortion has moved away from the empowerment of women to cutting religious propaganda

An Anthology of Ethics Through Literature’ and Bernard Gert’s ‘Bioethics: A Systematic Approach’) concludes that the foetus “satisfies only one criterion: consciousness (and this, only after it becomes susceptible to pain); the foetus is not a person and abortion is therefore morally permissible.” Using a scientific angle, a former President of the British Academy and current President of the Royal Institute of Philosophy, the well known Anthony J P Kenny believes that since division of the zygote into twins through the process of monozygotic twinning can occur until the 14th day of pregnancy, abortion should not be permissible after two weeks! Again, noted American moral philosopher and metaphysician Judith J Thomson states that even if the foetus has a right to life, abortion is still morally permissible because a woman has a right to control her own body.

The concepts of pro-life versus pro-choice are in general visible across the world, leading to starkly distanced abortion laws across the world – for example, if in Canada abortion is available ‘on demand’, then in a country like Nicaragua, abortions are illegal. In history, under Roman law, abortion did occur and was allowed, though only sometimes. Under the common law in England and in the US, abortion was illegal after the movements of the foetus could first be felt by the mother to be. In the 19th century, many western countries began to use statutes to codify abortion. Under Vladimir Lenin, the Soviet Union legalised all abortions in 1920, but this was fully reversed in 1936 by Stalin in order to increase population growth. Between 1930 to 1960, several countries like Poland, Turkey, Denmark, Sweden, Iceland and Mexico legalised abortion in some special cases. This was followed by legalisation of abortion in Japan, Yugoslavia, Soviet Union, Canada, United States, France, Austria, New Zealand, Italy, the Netherlands and Belgium.

Read more......

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Tuesday, January 15, 2013

omissions than commissions

India’s Foreign Trade Policy (FTP) 2009-14 is a half step undone by more omissions than commissions, say anchal gupta and niharika patra, who argue all is not lost...

This has brought down the total oil import bill of the country and at the same time, reduced overall imports more than the exports thereby bringing the trade deficit down Sounds like the opposite side of the coin is quite shiny. Even this tiny glitter is elusive. What misses the eye in this equation is that for India, nearly 40% of imports by value directly or indirectly contribute to the export sector inputs, i.e. the reduction in the import bill is not because of reduction in oil prices alone but because the oil and other inputs go into the production of export products which in essence means that the demand reduction for India’s products overseas has created an indirect reduction in India’s exports.

Nevertheless, with the unveiling of Foreign Trade Policy 2009-14, a whole new ‘spice’ has been added to this trade saga. One much awaited move has been to simplify procedures for exporters and untangle the bureaucratic cobwebs. The transaction costs have been reduced across the spectrum through reduction in application fees and EDI connectivity across ports and companies. Though, the core issue related to uncompetitiveness of the Indian exports like lack of adequate infrastructure including pathetic power scenarios coupled with high power tariffs, agonizingly high turnaround time for ships at Indian ports and unrebated state levies remain unresolved partly because the issues come under the ambit of other ministries at the state and central government level.

Yet overall, many experts hold the view that the FTP is a move in the right direction. According to Mr. Chandrajit Banerjee, Director General, Confederation of Indian Industry (CII) “The continued thrust on procedural simplification for exports will reduce transaction costs for Indian exporters and would go a long way in enhancing the competitiveness of exporters, especially the small and medium sized ones. The proposed announcement of setting up of inter-ministerial committee to redress the complaints of exporters and the establishment of Directorate of Trade Remedy Measures is a visionary move and reflect the seriousness of India’s export-led growth as a long term strategy.”

Read more.....

Monday, January 14, 2013

“E&P still is a challenge”

B&E: A few years back, ONGC announced a much publicised strategic plan. Has that helped you handle the economic turmoil any better?

RS Sharma (RS): In 2001, we identified three strategic priorities, i.e., a) Improving our hydrocarbon reserve base; b) Enhancing recovery factor from existing fields; and c) Accessing equity oil from overseas... Time-bound action plans have been rolled out which are at various stages of implementation.

B&E: ONGC is currently contributing 77% of India’s crude oil production and 81% of India’s natural gas production. Do you expect this to continue in the longer term given the fact that ONGC is not integrated completely in the value chain?

RS: ONGC’s long-term strategy (Vision 2020) focuses on strengthening the core activities i.e., Exploration and production of oil & gas. As such, the strategic vision for improving reserve replacement ratio through new exploration finds remains the first priority. As I mentioned earlier, production enhancement, arresting decline in matured fields and expeditious development of discovered fields are the other priorities... Our endeavour would be to complete these projects on schedule and consolidate our efforts towards value-chain integration.

B&E: What will be ONGC’s most critical challenges in the coming years?

RS: Exploration and production of oil & gas remains as one of the most challenging businesses where inputs are deterministic and outputs are probabilistic. As far as ONGC is concerned, critical challenges remain to be to make major new discoveries and sustaining production level from the existing ageing fields. For effectively meeting these challenges, we have structured a framework to develop a suitable solution matrix for these identified blocks, if any.

Read more.....

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall
Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
IIPM B-School Detail
IIPM Links
IIPM : The B-School with a Human Face
IIPM – FLP (Flexi Learning Program)

Friday, January 11, 2013

How safe are you dear Mr. CEO?

It’s a business deal. They have your asset (son) and you have the consideration (Rs.60 lakh)…

His life was on a roll – both personally and professionally. A great job as the CEO of Adobe India, a loving wife Nidhi and a three year-old son on whom they lavished all their love and spare time. Life was perfectly normal for the Guptas when Naresh boarded the flight to Hong Kong in November, 2007 for a series of business meetings. In the morning of November 12, the 3 year-old Anant stepped out of his house to attend his pre-nursery classes at Lotus Valley International School in Noida. Anant never reached school that day. At about 8.45 A.M, he was kidnapped almost right in front of his house by two men on a motorcycle. All hell broke loose as the security guard of the Guptas – Kameshwar got 4 consecutive phone calls asking about the presence of cops. Of course, the media frenzy had started by then and a shattered Nidhi had to cope alone with intrusive, persistent and demanding reporters from 24-hour news channels laying siege to her house. “I had to immediately fly back from Hong Kong,” recalls Naresh even as he plays around with Anant, now a peppy and talkative 5 year-old. The ransom demand was Rs.6 million and he of course paid it to save his son (details later). Today, Naresh and Nidhi thank God and professional help for getting Anant back, safe!

But not every CEO or entrepreneur who gets a ransom demand of Rs.6 million for a kidnapped child is as lucky. Software entrepreneur, venture capitalist and MD of Golozan Technologies, Sanjay Chawla, is one such shattered man. His 17 year-old son Ribhu was on his way back home on July 28, 2009 from K.R. Mangalam School on his two-wheeler, when he was stopped and abducted by a gang of men in a WagonR. Sanjay and his family soon heard from the kidnappers who used Ribhu’s mobile phone to demand Rs.6 million as ransom. They even spoke to Ribhu who assured them that he was safe. The family paid an ‘advance ransom’ of Rs.1.5 million within the next 24 hours. The end to the tale: Ribhu’s dead body was found the next day in Vasant Kunj. A pall of gloom and despair now hangs over the Chawla residence in Delhi and there is a lot of bitterness.

Read more......

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Thursday, January 10, 2013

ABN AMRO Bank a familiar name among the über-rich in India

A clear focus on select and premium clients has made ABN AMRO Bank a familiar name among the über-rich in India

Moreover, the bank has used technology as the key differentiator to gain competitive advantage and create a unique customer value proposition. In fact, the implementation of a robust core banking solution back in 2001 enabled it to offer 24/7 integrated multi-channel banking and to be the first bank in India to realise the potential of the mobile channel. Further, the introduction of Van Gogh Preferred Banking (VGPB), a dedicated relationship approach to anticipate and provide for a HNI customer’s needs in 2002 gave it an edge with respect to its foreign competition and provided its banking business in India with a big boost. In this format, company representatives maintain one on one relationships with the demanding HNIs and help them with their portfolio needs.

But that does not mean that the bank has completely closed its eyes on the other segments of the society, which make over 90% of India’s total population. As a part of its microfinance program, the largest amongst foreign banks in India, ABN AMRO, with micro-finance institutions (MFIs) as intermediaries, is aiming at delivering credit to rural poor women. In fact, today, the bank services 26 MFIs across 16 states in India with over 3,90,000 customers, receiving small loans of $200 or less. “It’s our belief that business can succeed only in a society that is inclusive. Thus, in a developing economy like India, where agriculture is the source of occupation for over 70% of the population, priority sector lending plays a key role in the growth of the nation and the development of its people,” avers Meera Sanyal, Country Executive – India, ABN AMRO Bank.

Read more......

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Monday, January 7, 2013

WEALTH:ELECTION WIN

...us, promises for the people!

The Indian National Congress, being at the helm of affairs for the most part of the post Independence era, quite naturally, has the maximum number of crorepati Member of Parliaments (, 141 out of 306). Bharatiya Janata Party is a distant second with 58. Samajwadi Party and BSP follow them in the ranks with 14 and 13 crorepati MPs respectively. Surprisingly, the Left is a laggard here with only one.

America’s second President John Adams once said, “Remember, democracy never lasts long. It soon wastes, exhausts, and murders itself. There is never a democracy that did not commit suicide.” The manner in which money and power continue to be in the hands of a few, one wonders how soon Indian democracy could be headed the same way!

Read more....

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Friday, January 4, 2013

POLIY SUPPORT: EXPORT

Export driven industries need some basic changes to make the incentives work for them

In the short term, the first and foremost step should be the gradual but continuous removal of the high tariff and excise duty rates especially on the non-oil intermediary inputs for Indian industry.

Currently, India’s top 100 import items constitute 84% of total trade of which non-oil imports form 47% facing an average import tariff of 7.5 % while the gems and jewellery sector faces a 10% import duty on raw materials far higher than the sub 5 % rates existing in other emerging economies. Secondly, the Drawback and Duty Entitlement Passbook (DEPB) rates must be raised by 5 % to negate the fiscal stimulus efforts for exports in countries like China and Vietnam. Thirdly, for the current fiscal year, for export labour intensive, a service tax exemption must be put in place. Says A Shaktivel, FIEO, “Labour reforms are also needed urgently.”

In the long term, there is a critical need to have a uniform VAT structure.Secondly, the SEZ policy must be up and running as provisions like raising money from the foreign markets must be allowed.In essence, the transition from an export led economy to a consumer led economy can only take place if the people living in the lower strata of the society are given the opportunities to work and earn in the long run and hence, a constant rise in disposable incomes can take place which can only happen if our exports continue their upward trajectory. Hope the government is listening.

Read more....

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.

Thursday, January 3, 2013

Have they lost it now?

Restrictive tax policy will affect China’s foreign investment flows

China loves shells, especially when it is inside them! In the wake of the global slowdown, China is planning to aggressively scrutinise the tax standings of foreign registered companies operating in the Mainland. Such protectionist moves put a big question mark on the prospective future foreign investment that is going to flow into one of the fastest growing economies in the world.

The Chinese government, with the aim to adopt international standards to help boost its revenue, is planning to get all foreign-registered businesses to come under unprecedented scrutiny. This would force foreign private equity firms and hedge funds to pay inflated Chinese tax bills. The current tax policy is a follow up of China’s State Administration of Taxation ruling that a 10% dividend withholding tax would be levied on all the foreign listed companies that have their key business operations concentrated in China, which came last month.

Read more.....

Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri

and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.