MDepartment of Commerce

July 2013

Volume 2 Issue 1

The Dean Speaks..

“There is no wealth like knowledge, and no poverty like ignorance”Buddha

Creation and dissemination of knowledge has always been a key component of every University’s mission. University seeks to achieve this through various academic and research endeavors. Each department through its academic and research related programme should ensure that knowledge creation and dissemination is effectively contributing towards the development of the society in a dynamic environment. The departments should, therefore, create and nurture research culture among the students by providing ample opportunities and a conducive environment.

‘Mudra’ the E-Newsletter of commerce is one such initiative by the Department of Commerce to inculcate serious academic and research culture among the students and to foster academic writing by the student and faculty. Commerce students, one of the most vibrant groups in the campus, can make use of ‘Mudra’ to showcase their research talents by contributing articles relating to core commerce areas along with other valuable information pertaining to career planning, placement, Commerce lab etc.

I, hereby congratulate the department for their conscientious effort in bringing out this newsletter and call upon the students to make use of this for their academic and research accomplishment. This definitely is a commendable step towards a proactive learning environment

My best wishes for the entire editorial team.Prof. Thomas Joseph, Associate Dean, Commerce & Management

Dear Readers,

Working on the first edition of Mudra 2013 has been a memorable experience for all of us involved in its making. After numerous meetings and discussions we decided that we wanted Mudra to be a newsletter that students enjoy reading and find informative.

We wanted every student to look forward to Mudra’s successive editions after reading this first one.

We aim to share knowledge and experience gained in Christ University in the field of commerce to enrich the lives of others and seeks to be a platform for the dissemination

of information, knowledge and experience to students across the globe. Hopefully through this issue,we have taken a step towards our goal.

We hope all our readers enjoy this first edition!

Team Mudra

From Team Mudra

Editorial Team

Prof. Thomas Joseph, Associate Dean of Commerce

Prof. Nithila Vincent, HOD of Commerce

Dr. Anuradha P.S., Coordinator of B.Com Honours

Faculty Coordinators

Dr. Veerta Tantia, Professor

Mr. Raghavendra B.C, Professor

Student Core Committee

Design Team

Harman Sethi

Jatin Sethi

Lavanya Bhatt

Editing Team Alisha Singh

Chris Saviona Jerome

Devyani Darapareddy

Sami Faizullah

Contents

Current Affairs..................................................................................................1

Commerce Lab - Footprints..............................................................................3

Rupee Depreciation – A Debilitating effect on Personal Investment.................8

From The Placement Department....................................................................10

From Nobody To Somebody.............................................................................11

“Word” Wide Web!...........................................................................................12

My Experience With CISI................................................................................13

Is Education Necessary for Success?...............................................................14

Book Review -“Who’s got your back”............................................................16

Cyprus runs into Turmoil.................................................................................18

Real Estate in India..........................................................................................19

Favorite places to eat in and around Christ University....................................20

Jashan Mahesh

3 B.Com B• • •

RBI expected to grant new bank

licences by end of FY’14

The Reserve Bank, which issued clarifications on the new bank licence guidelines, is expected to grant new licences by March next year.

On Monday, the central bank issued clarifications making it more stringent for getting new bank licence even as it allowed the aspirants to have the holding and capital structure of the bank-holding company in place within 18 months of getting the in-principle nod, i n s t e a d o f 1 2 m o n t h s prescribed earlier.

RBI also said aspirants from the NFBC/insurance spaces will have to get the go-ahead f r o m t h e i r c o n c e r n e d regulators like SEBI and IRDA and that their views on the same will prevail over the RBI’s own views on the p r o p o s e d n o n - o p e r a t i v e

financial holding company (NOFHC).

Cola war: PepsiCo India president Manu A n a n d q u i t s ; n o succession plan in place

In a sudden development, Manu Anand, region president for India and South Asia at beverage and snacks company P e p s i C o , h a s q u i t , i n circumstances described by company insiders as less than amicable.

Two company officials, who spoke on the condition of anonymity because of the sensitivity of the matter, say concern at Pepsi's Asia-Pacific headquarters over loss of market share to rival Coca-Cola as well as less-than-expected returns from Rs 160 crore spent on the sixth edition of Indian Premier League contributed to Anand's abrupt departure.

Anand's exit was announced i n t e r n a l l y o n T h u r s d a y evening. Anand said he had d e c i d e d t o s e e k e a r l y retirement. "I have decided to seek early retirement from PepsiCo. Though it's been two-and-a -ha l f yea r s a t PepsiCo India as president, I have spent 19 years with the company. I just want some time out."

The sudden exit had nothing to do with performance, Anand claimed. "My decision to move out is personal...I am evaluating options," he said.

Ye s B a n k b o a r d s p u r n s S h a g u n Gogia's application for board position

YES Bank has said that Shagun Gogia cannot be on its board of directors as the legal heir of one of the two founders, citing composition of boards of peer banks such as institutions-promoted ICICI Bank and HDFC Bank, and families-promoted Kotak Mahindra Bank.

"The board evaluated the submissions considering the past and current composition and profile of the board of the bank, the current composition of the boards of peer banks Kotak Mahindra Bank and the three largest private-sector banks," Yes Bank's company secretary wrote to Madhu Kapur, mother of Gogia and widow of co-founder Ashok Kapur.

1

Falling rupee may make it difficult for RBI to cut ratesThe rupee has been continuing with its downward journey since April. It has moved from bad to worse. It has fallen nearly 12 per cent since the beginning of the fiscal year in April 2013 and reached an all-time low of 61.21 as against the US dollar after better-than-expected US jobs data raised concerns that the US Federal Reserve may taper down the stimulus programme.

Factors like strengthening dollar index overseas, strong importers demand and the continuous capital outflows have put more pressure on the rupee. The depreciation has exposed India's structural problems, such as an elevated current account deficit (CAD), balance of payment, inflation and adverse fiscal deficit.

If the depreciation in the rupee continues, then it will further swell inflation, making it difficult for the RBI to cut policy rates this month also. A weak currency has historically had an adverse impact on equity markets, given their sensitivity to FII flows.

M o r e o v e r , t h e r u p e e ' s depreciation will lift input costs across many sectors a m i d s t w e a k d e m a n d

environment as reflected in low double digit top line growth expected in 2013-14. A fragile rupee will add fuel to the rising import bill of the country resulting in increase in CAD. A widening CAD is bound to pose a threat to the growth of the overall economy.

However, depreciating rupee is expected to boost earnings of t h e c o m p a n i e s i n t h e information technology & pharmaceuticals sector.

On the banking front, it is expected that the asset quality worries are likely to continue, especially in case of public s e c t o r b a n k s . A s h a r p depreciation in the rupee has negated most of the benefits of the oil companies due to decline in fuel subsidies in view of price reforms, which started in September 2012.

{The Indian Rupee continues to depreciate against most leading currencies of the world, a major cause of concern for India. Source of cartoon- indiatimes.com}

Stock Market as on 25th July 2013

SENSEX19862.31

-228.37

NIFTY5927.35

-63.15

Forex  Market[Currency selected v/s Indian Rupee (INR) as on 19th July 2013]

CURRENCY RATE

UP/DOWN

US Dollar (USD)59.74

0.02%

Euro (EUR)78.24

0.25%

Yen (JPY)0.60

-0.15%

Commodities Market as on 19th July , 2013

Gold (Rs/10 GRMS ) 26676.00

18.00

Silver (Rs/1 KGS ) 40304.00

-169.00

Crude Oil (Rs/1 BBL) 6489.00

26.00

2

NEW DELHI: Unlike the past two years, salaried persons earning up to Rs 5 lakh annually will have to file income tax returns,CBDT said today.

The Central Board of Direct Taxes (CBDT) had exempted salaried employees having total income of upto Rs 5 lakh including income from other sources upto Rs 10,000 from the requirement of filing income tax return for assessment year 2011-12 and 2012-13, respectively. "The exemption was available only for the assessment years 2011-12 and 2012-13...the exemption provided during the last two years is not being extended for assessment year 2013-14," the CBDT said in a statement.

Earlier in May, the CBDT had made E-filing of income tax return compulsory for assessment year 2013-14 for persons having total assessable income exceeding Rs 5 lakh. The CBDT said the exemption was given considering paper filing of returns and their processing through manual entry on system.

It said the exemption has been not been extended as the facility for online filing of returns has been made "user-friendly with the advantage of pre-filled return forms".

These e-filed forms also get electronically processed at the central processing centre in a speedy manner, it said. "Taxpayers are encouraged to file their returns electronically. E-filing is an easy, fast and secure method of filing of income tax return.

Moreover, digital signature is not mandatory for these taxpayers...," the Ministry added.

For filing returns, an assessee can transmit the data in the return electronically by downloading ITRs, or by online filing.

Thereafter the assessee had to submit the verification of the return from ITR-V for acknowledgement after signature to Central Processing Centre.

The tax department will set up special return receipt counters for salaried tax payers from July 25 to 31 at Pratayakshar Bhawan, New Delhi.

"As returns of income above Rs 5 lakh have to be e-filed online mandatorily, the same will not be received at any of these special counters. Only paper return of income upto Rs 5 lakhs can be filed at these counters," the Finance Ministry added.

Simplifying procedure for filing income-tax returns The deadline for filing income tax returns, July 31, is just week away. Needless to say, many individuals dread the date with I-T department, as they find the entire process very confusing. However, according to experts, if an individual is clear about the basics, the entire procedure can be completed in an hour's time. "Tax payers earning over Rs5 lakh are now required to file their tax return electronically. This will reduce paperwork to a great extent," says Vineet Agarwal, director at KPMG.

Commerce Lab Footprints

Salary earners upto Rs 5 lakh need to file I-T return

• • •

3

Choose the right form

Tax consultants are divided over the applicability of forms ITR-1 (Sahaj) and ITR-2 for salaried individuals, drawing income from salary and interest. Going strictly by the new I-T rules, an individual cannot file returns using the simpler form ITR-1 (Sahaj) if the person has any taxexempt income above Rs5,000. Since the I-T department has not issued any clarification so far, there are numerous interpretations on the matter.

"Due to the change in rules, most salaried individuals will now have to use ITR-2. After all, typically, their remuneration includes tax-exempt components like house rent allowance (HRA), transport /conveyance allowance and leave travel a l l o w a n c e ( LTA ) , w h i c h c a n e a s i l y exceedRs5,000 in a year," explains Vaibhav Sankla, director with tax consultancy firm H&R Block. However, many experts argue that ITR-1 (Sahaj) is the relevant form for this year. "Our view is that if the exempt income has been accounted for in Form 16, salaried individuals can continue to use ITR-1 (Sahaj). However, if they have earned an income of over Rs5,000 from, say, dividends, they will have to use ITR-2. Similarly, resident Indians, who may have been deputed abroad by their employers and are claiming a double tax avoidance treaty benefit, will have to use ITR-2," says Sonu Iyer, partner and national leader — human capital services, EY (formerly E&Y).Until last year, such additional, explicit disclosures were not sought by the I-T department.

Check your tax credit

Take a look at Form 26AS, which shows the amount of tax deducted from your salary that your employer has actually deposited with the I-T department, on the e-filing portal. "It is critical to ascertain whether the tax deducted from your income (as per your Form 16) matches the figures in Form 26AS. The two versions must tally. If you go ahead with filing the return without seeking clarity on the nature of the discrepancy,

you are bound to get a notice from the I-T department later," says Iyer.

Claim under 80G, other deductions

You also need to figure out whether you want to claim any extra deductions you forgot to claim earlier. For example, if you have not submitted the relevant bills while making your investment declaration in January, your Form 16 might not have accounted for the deduction of up to Rs5,000 on preventive health checkups under section 80D. You have the option of claiming this deduction while filing returns. "ITR forms do not require you to enter any details of such bills. However, it is advisable to retain copies of these bills. If there is an enquiry from the tax department in future, these bills will serve as proof," says Sankla of H&R Block. Similarly, you can also claim deductions under section 80G on donations made to charitable institutions. "Typically, employers do not consider 80G deductions in Form 16. So, the individual can claim the benefit at the time of filing return. In the ITR form, you will be required to provide details like the amount donated as well as the charity's name, PAN and address," he adds.

4

[ITR 62; 16,1]

Printed from Taxmann’s Income-tax Rules, 2007

FORM NO. 16 [See rule 31(1)(a)]

Certificate under section 203 of the Income-tax Act, 1961 for tax deducted at source

from income chargeable under the head “Salaries”

Name and address of the Employer Name and designation of the Employee

PAN No. of the Deductor TAN No. of the Deductor

PAN No. of the Employee

Acknowledgement Nos. of all quarterly statements of TDS under sub-section (3) of section 200 as provided by TIN Facilitation Centre or NSDL web-site

Period

Quarter Acknowledgement No. From To

Assessment year

DETAILS OF SALARY PAID AND ANY OTHER INCOME AND TAX DEDUCTED

1. Gross salary (a) Salary as per provisions contained in

section 17(1) Rs. (b) Value of perquisites u/s 17(2) (as per

Form No. 12BA, wherever applicable) Rs. (c) Profits in lieu of salary under section

17(3) (as per Form No. 12BA, wherever applicable) Rs.

(d) Total Rs.

2. Less : Allowance to the extent exempt

under section 10 Allowance Rs.

Rs.

Rs.

3. Balance (1 – 2)

4. Deductions : (a) Entertainment allowance Rs.

(b) Tax on Employment Rs.

5. Aggregate of 4(a) and (b) Rs. 6. Income chargeable under the head . ‘Salaries’ (3 - 5) Rs. 7. Add : Any other income reported by the

employee

5

[ITR 62; 16,1]

Printed from Taxmann’s Income-tax Rules, 2007

Rs.

8. Gross total income (6 + 7) Rs.

9. Deductions under Chapter VI-A Rs. (A) sections 80C, 80CCC and 80CCD Gross amount Deductible amount (a) section 80C (i) Rs.

(ii) Rs.

(iii) Rs.

(iv) Rs.

(v) Rs.

(vi) Rs. Rs. Rs.

(b) section 80CCC Rs. Rs.

(c) section 80CCD Rs. Rs. Notes : 1. Aggregate amount deductible under section 80C shall not exceed one lakh rupees.

2. Aggregate amount deductible under the three sections, i.e., 80C, 80CCC and 80CCD, shall not exceed one lakh rupees.

(B) other sections (e.g., 80E, 80G etc.) under Chapter VI-A

Gross amount Qualifying amount Deductible amount (a) section Rs. Rs. Rs.

(b) section Rs. Rs. Rs.

(c) section Rs. Rs. Rs.

(d) section Rs. Rs. Rs.

(e) section Rs. Rs. Rs.

10. Aggregate of deductible amount under Chapter VI-A Rs. 11. Total income (8-10) Rs. Rs. 12. Tax on total income Rs. Rs.

13. Surcharge (on tax computed at S. No. 12) Rs. Rs.

14. Education Cess @2% (on tax at S. No. 12 plus surcharge at S. No. 13)

Rs.

15. Tax payable (12+13+14) Rs.

16. Relief under section 89 (attach details) Rs. Rs.

17. Tax payable (15-16) Rs. Rs. Rs. 18. Less : (a) Tax deducted at source u/s

192(1) Rs. Rs.

(b) Tax paid by the employer on behalf of the employee u/s 192(1A) on perquisites u/s 17(2)

Rs. Rs.

6

[ITR 62; 16,1]

Printed from Taxmann’s Income-tax Rules, 2007

19. Tax payable/refundable (17-18) Rs. Rs.

DETAILS OF TAX DEDUCTED AND DEPOSITED INTO CENTRAL GOVERNMENT ACCOUNT

(The Employer is to provide payment-wise details of tax deducted and deposited)

S. No.

TDS Rs.

Surcharge Rs.

Education Cess Rs.

Total tax deposited

Rs.

Cheque/DD No. (if any)

BSR Code of Bank branch

Date on which tax deposited (dd/mm/yy)

Transfer voucher/Challan

Identification No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. I, , son/daughter of working in the capacity of (designation) do hereby certify that a sum of Rs. [Rupees (in words)] has been deducted at source and paid to the credit of the Central Government. I further certify that the information given above is true and correct based on the books of account, documents and other available records. Place . Date Signature of the person responsible for deduction of tax

Full Name ___________

Designation __________

7

What is Rupee Depreciation?

Before we understand how Rupee Depreciation effects personal investment, it is important that we know what Depreciation of Rupee is. Depreciation of Rupee means that the rupee has become less valuable with respect to dollar. For example, if the rupee moves upward from Rs.30 per dollar to Rs.40 per dollar, then the rupee is said to depreciate.

Depreciation of Rupee is effected due to many factors. One of the main factors is that the Dollar is on a horse ride i.e. it is doing well in the market and it has high demand. The ongoing recession in the Euro Zone which has impacted our country has also lead to currency depreciation. Another factor for depreciation is the bleak fundamental outlook of policies i.e. lack of stringent and clear economic policies. Finally, the fact that the investors in India are moving their funds out of India and investing in other countries has made Rupee less valuable.

Impact on Personal Investment and your strategy to invest:

Now let us look at how the Depreciation of Rupee impacts personal investment

1.Equity: The depreciation of rupee has great impact on the equity market. It may result in the Foreign Institutional Investors (FII) to migrate their funds from India to abroad. It could increase inflation and the RBI may not cut rates. A depreciation of Rs 1 against the USD increases oil under recoveries by Rs 9,000 crore. It's unfavorable for oil marketing companies (OMCs)

and worsens the fiscal deficit. While the exporters benefit, importers suffer because of high cost of import. The companies with foreign debt may find it difficult to service it.

What we suggest:

Stay with defensive sectors like IT, pharmacy and FMCG for now. Since the RBI is not expected to cut rates soon, avoid high-beta (Risk), rate-sensitive sectors like real estate and infrastructure for now. The rupee depreciation will compound asset quality issues, it is better to concentrate on private-sector banks or some PSU banks with high asset quality. The companies with high foreign debt are in a precarious situation, so steer clear of t h e s e f o r t h e t i m e b e i n g . A l s o , t o reduce gold consumption, the government is trying to create bottlenecks for jewelers and gold loan companies. So, this is another segment worth avoiding now.

2. Debt: The FII outflow from the debt market due to depreciation fears can raise yields; the 10-year yield has gone up in the past few days. There is a bound to be a delay in the expected interest rate cuts by the RBI.

What we suggest:

Do not resort to a knee-jerk strategy shift. Since the interest rates are expected to come down in the medium to long term, continue to hold on to long-term debt papers and debt/gilt funds.

Rupee Depreciation – A Debilitating effect on Personal Investment

Christopher Devakumar

Faculty, Department of Commerce

• • •

8

3.Gold:Dollar appreciation brings down the international gold price. Currently, it is below $1,200/troy ounce, a 34-month low. As Gold accounts for a big part of the current account deficit, the government may take further measures to stem its import, cushioning the domestic price.

What we suggest:

Investors with only a small strategic exposure to gold can continue to hold on to it. Those with a high exposure to the yellow metal should use any rally as an opportunity to book profit.

4. Real Estate: The biggest casualty of rupee volatility is the expected rate cuts by the RBI. This may reduce the demand and holding power of builders. So, it's a negative as far as the real estate prices are concerned. NRI’s are the major consumers of Indian real estate and rupee depreciation makes it more affordable for them. This may raise realty demand. Since the material costs go up, along with the inflation, it may put an upward pressure on real estate prices as well.

What we suggest:

Real estate is already overvalued and, therefore, it makes sense to book profit on your investment (other than your primary residence).

It is advisable to invest wisely in such investment alternatives after careful analysis of Pros and Cons of each avenue so that even during economic setbacks like the depreciation of currency, it is possible to find opportunities for profitable and safe investments.

References: The Economic Times.(2013). Electronic references. Retrieved from http://economictimes.indiatimes.com/personal-finance/et-wealth/

9

Christ University is known for placing its students in well known organizations.The year 2012-2013 was no exception. One ninety eight students from B.Com and B.Com Honors final year were placed in the leading companies of the world.

The Placements Statistics for the year 2012-2013 are as follows:

COMPANY OFFERS PROFILE

Goldman Sachs 12 Compliance  &  Finance  Analysts

Deloitte 13 Audit Assistant

UBS Verity 1 Analyst:

Google 1 Sales Associate

D E Shaw: Finance Operations 2 Finance Operations

KPMG 27

Compliance & Risk Services, IT Advisory, Research Analytics &

Knowledge, Audit Analyst & Tax Analyst

Ernst & Young 33 Assurance & Tax Analyst

ANZ India 7 Analyst

Wells Fargo 54 Financial Analyst

Zomato 1 Sales Manager

Target 7 Finance Operations

Godot Media 1 Writer

Protiviti Consulting 3 Consultant

TCS BPO 8 Trainee Financial Services

Societe Generale 3 Finance Operations

JP Morgan 3 Junior Researcher

PwC 7 Tax Analyst

Asian Paints 1 Sales Officer

Decathlon 1 Sales Manager

Grant Thornton 7 Tax Analyst:

Amazon 2 Consultant

South Indian Bank 2 Probationary Clerk

Federal Bank 1 Probationary Clerk

Teach for India 2 Fellow,

Northern Trust 1 Analyst

From the Placements Department

10

From Nobody to Somebody..

Nitesh Dhull

• • •

“Have I made the right choice? Will I benefit from this college? Will the teachers be nice?Will I get good friends?...” with all these questions conflicting in my mind I stepped into the melting pot of cultures called Christ University. Little did I know three years back when I entered the new world that it had so much in stock for me. The wonderful journey began when I was nobody in that huge auditorium where about 1000 students were attending the orientation program.

Christ University, especially the Commerce Department, is such a vibrant place that one needs to always keep the eyes and ears open to get the maximum out of it and that is what I exactly did by participating in as many events as I could but at the same time never neglected the studies.

C U C A ( C h r i s t U n i v e r s i t y C o m m e r c e Association) is one of the best platforms for the students to showcase their talents and tap their skills in the most creative manner. Various competitions are organized from time to time to blend the theory and practical. The initiatives like the corporate interaction cell and the commerce lab are truly incredible attempts to expose the students to the rat race of the corporate world. Well qualified and aptly trained faculty continuously put in great efforts for widening the knowledge horizon of the students. They are assets not only to the department but to the whole society at large.

Active participation in social activities and the village visits in collaboration with CSA (Centre for Social Action) make the students see the other side of life and help them to become socially

responsible citizens. To seek the blessings of the almighty the regular holy masses are organized.

The commerce fest ‘PRAYAS’ which is for the students, by the students and of the students is yet another milestone that helps us to get recognized at National level. The department always encouraged and supported us to take part in outstation fests and we returned the favor by bringing in the trophies and victory in various other forms. It would be unfair if I forget to mention the Holistic Education sessions that mould us as individuals for all walks of life.

To sum up I can say that the three years at Christ University Commerce Department had been a life changing experience for me. It was a perfect mix of fun, learning and relationships. I would always carry the Christite spirit in my heart. Commerce Department in true sense holds up the core values of Christ University and works to achieve the mission “Excellence and Service”.

After amazing three years the journey ended in the same auditorium (where I had entered as nobody) with the graduation ceremony. This time I proudly walked out with a gold medal on my chest and the best outgoing student of the batch certificate in my hand. All thanks to the commerce department and the faculty for making me from “NOBODY TO SOMEBODY”.

11

“Word” Wide Web !

Varsha Rajshekhar3 B.Com K

• • •

The finance field is a vast one and there are so many new concepts and terminologies which we have not come across. Of course all of us know what stocks, insurance, bonds etc. mean. But do we know what ‘Haircut’ means in finance? Here are some of the interesting concepts of the finance world:

1. Junk Bond:We all know what bonds are. They are debt instruments of indebtedness of the bond issuer to the holders. On maturity of the bond, the holders get back cash with interest. Junk Bonds are those which are issued by companies that have a low credit rating. Just like how junk food is risky but tasty, such bonds have high risk of default but have high rate of return for the investor.

2. Market Maker: The market maker is a firm that holds securities to facilitate trade. The market maker quotes the price at which he is willing to buy a particular share from someone else and the price at which he is willing to sell the securities that he possesses. When the bid matches, he buys or sells and makes market.

3.Haircut: Haircut in finance has two meanings: a) It is the difference between the prices at

which the market maker buys or sells a security. – called haircut because trader trades at such a thin spread.

b) It is also the percentage by which an asset's market value is reduced for the p u r p o s e o f c a l c u l a t i n g c a p i t a l requirement, margin and collateral levels. – This is

because the company needs some amount of cushion if the market falls later.

4. Harry Potter Stock Index: We all know Harry Potter. But having a stock index named after it? That’s interesting. Harry Potter Stock Index was created by StockPickr which captures securities of all companies associated with the movie. For example, Scholastic – publisher of HP books, Amazon – best seller, Motorola and Coca cola are related companies for Harry Potter series.Every time a new movie released, investors invested in companies related to Harry Potter.

5. Santa Claus Rally: This refers to a sudden rush in the prices of stocks that occur between the Christmas and New Year’s Day. There are various causes for this surge in prices. Tax considerations and the happiness among Wall Street are one of the main causes. Other reason can be the fact that a lot of people invest in their Christmas bonuses to earn more. However, one of the main reasons why prices increase is because pessimists are on vacation during this period11

12

I could begin to talk about how the Chartered Institute for Securities and Investment is the largest and most widely respected professional body for those who work in the securities and investment industry in the UK and worldwide as well, but that’s something one can find, quite nearly, verbatim, on Google. I could gush about how the opportunity to take the Institute’s Investment Operation Certificate Course, that has presented itself in front of us via our University, is one that undoubtedly must be grabbed with open arms, but that is rather obvious. This leaves me recounting my own 3 week long (so far) experience of the course. Having a most distinguished, learned individual as Mr. Ravi Raman, COO of Infrahedge Ltd, teaching us the course, is just the tip of the iceberg. When a student like me, has spent 4 years in classrooms learning about stock exchanges and financial instruments, one gets a little hazy. Which is where it has been most amazingly useful, having someone who is so closely involved in the industry to speak its language with us. In these 3 short weeks, we have been working on the most rudimentary concepts of finance and stripping each one down to the most basal level. Having said that, we have also gotten the tiniest glimpse into what a career in finance could look like in terms of aspects that are very rarely touched upon in a classroom, like bond yield calculations and dividend decisions. And I’m certainly looking forward to the next class, which is about derivatives!

I have every desire to see this course to finality, not just for the satisfaction of having completed

a decorated programme such as the IOC, but also for the very basic reason that on Monday and Thursday mornings at a time when most are peacefully REMing away, I am learning something new. And let’s face it, there’s smugness on your face that can’t be matched when sometimes, you’re one step ahead of the class!

13

The Chartered Institute for Securities & Investment (CISI) is the largest and most widely respected professional body for those who work in the securities and investment industry in the UK and in a growing number of financial centres globally.

Evolved from the London Stock Exchange, They now have more than 40,000 members in 89 countries. In the past year, they set almost 39,000 examinations in 68 countries, covering a range of vocational qualifications.

CISI courses are now offered in Christ University.

My Experience with CISINamrata Sastry

3 B.Com J• • •

Is Education Necessary for Success?Ashok Selvaraj

3 B.Com B• • •

Education in its general sense is a form of learning in which knowledge, skills and habits of a group of people are transferred from one generation to the next through teaching, training, research. It is a tool that is supposed to help us through our endeavors. Education is a paradoxical subject as we are ‘taught to think for ourselves’. It is a figure of authority where people are forced to think in a particular way.

I don’t believe that education is necessary for success. As we learn through the pages of history that most of the prominent personalities were thinkers with no type of formal education. They marveled the world with something out of just a fragment of their ideas. They learn to grow their own minds. They question every feature and component on the planet and try to solve it by themselves, armed with nothing but

experience.

Autodidacticism is self-directed learning that is related to but different from informal learning. It is "learning on your own", and an autodidact is a self teacher. It is a contemplative, absorptive procession, where some spend a great deal of time reviewing the resources of libraries and educational websites. One may become an autodidact at nearly any point in one's life. Autodidactism is only one component of learning, and is usually, but not necessarily, complemented by learning in formal and informal spaces. One of the most influential and eminent autodidacts was Leonardo Da Vinci . He was a painter, sculptor, architect, musician, scientist, mathematician, engineer, inventor and writer. He epitomized the Renaissance humanist ideal. Leonardo has often been described as the archetype of the Renaissance Man, a man of "unquenchable curiosity"

Many autodidacts seek guidance from experts, friends, teachers, parents, siblings, and community. Autodidacts are more successful as it is their own curiosity and thirst for answers that drives every cell in their body to achieve and are not just asked to find them by an external figure. This is the ideal form of education where you become “you” with your own prevailing thoughts and ideas, but education we receive today has an whole new agenda.

Education has now turned into a system for training humans into callous and emotionless beings to fit into society, irrespective of their motives and thoughts. In the novel “Anthem” by Ayn Rand, she describes of a dystopian society where everyone’s lives are controlled by the system. It showcases a setting of irrationality, collectivism and socialistic way of thinking. No one is allowed to show characteristics of individuality and the term “I” is non-existant. Any source which changes anything or highlights individuality is immediately eliminated without a question. The form of Education that we are now receiving is no different. It caters blindly to the masses, irrespective of the individual’s intellectual level and potential.

Education makes your thoughts and ideas rigid and restricted. It is now aimed at only making money, to ultimately buy things that make us ‘happy’. Things that are not needed but rather wanted; things that make our lives easier and make a healthy man sick with laziness. Schools are now a form of corporate

Poll ResultsAccording to students in

Christ University..

Yes 38%

No 28%

Not Always 27%

Don’t know/Can’t Say 7%

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venture, killing the meager essence of aestheticism and contemplativeness. The current education system led curiosity and self satisfaction to annihilation and is substituted with unfounded knowledge to make money and nothing else, whether you like it or not. sense.

It has changed the way people think, the entire paradigm of the society’s view has entirely shifted to a whole new level; people with the most money are considered the happiest among all. The notion of “success” is now based entirely on how well we fare in the society, i.e , by making money.

Mere paper controlling lives, it doesn’t seem to make even a meager amount of sense. The one’s with the most amount of money are looked up to, and the one’s with less money are frowned upon, regardless of who is more satisfied.

If the term “success” is determined by possession and power, then I think the educat ion we rece ive today i s necessary; if it is determined by the satisfaction, happiness, and joy of discovery, then I believe we are far a w a y f r o m t h e t r u t h .

STUDENTS SAY..

“Achieving success without good education is like playing football without shoes, You can score a goal, but it is that much harder.”

-Siddharth Kamath

Sound education provides critical thinking skills that are required to excel in life. It gives structure and teaches us valuable work and time management habits. The absence of all these would make our lives chaotic. Hence education is indispensable element for attaining success.- Alisha Singh

No, It is not necessary. We know so many personalities like Bill Gates and Mark Zuckerberg who don’t have college degrees and yet are extremely successful.- Pushyank Nahar

Is education necessary for success?

Yes, Definitely! In a world as competitive as ours,education is a must for success! The rate of success depends upon the level of education.-Shivalika Sharma

Education is a must for success.It is only through education that one widens his area of thinking and progresses in life.-Kirti Agarwal

Yes, I feel education is necessary, but getting a degree doesn’t fix anything. A holistic education is what is required to make better humans.This will take humanity as a whole to success.-Kankana Das

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Book Review

“Who’s got your back”Mohammed Sinan

3 B.Com K• • •

Glancing at the title of the book one may think that this is a book written by a new York street gangster talking about how to defend yourself in the gang war and who do you have for back up, however that is of course far from what the book is actually about rather the book is more about a long forgotten system that was the secret behind many of the most successful people in the world throughout history. This system was called the Guru-shishya system in India, the sheikh – talib system in Arabia and at present the mentor- student relation.

A self made man is almost always a farce that has been promoted by the individualistic society that we live in. Malcolm Gladwell writes in his book:”Outliers: the story of success” about the factors that helped shape successful people s lives to where they reached. Among most factors is the presence of one or multiple mentors who had been there throughout the person’s life to advice, to guide, and to correct whenever the person went wrong. Apart from the sheer magnitude of benefit that a person can gain by having a mentor in his life, there is another aspect to this whole mentorship system, the presence of a person who cares for you and your progress truly and sincerely. This may look extremely deal in the present world where the rat race and the finish line is what matters the most. However the writer points out how it is actually possible to have such a system in place and more importantly success becomes an easy to achieve goal.

How exactly do we go about finding our mentors? And what do we look for in them? And how are we supposed to learn from them. This can be answered by the 4 mindsets that is provided in the book. These are:

1. Generosity: At present what we have all forgotten is that everyone we normally deal with are humans and they have feelings, goals and aspirations just like us and thus to try to be better than others and not caring about the progress of someone else contrary to what is generally known will not help benefit us in the long run. To be sincere in wanting a person to become better and improve is what will help us. That said a lot of us also are very cautious about receiving help from others thinking that we will be in debt and that people are not very eager to help, the good news is that it we got that totally wrong , no we wont be called to account for what we help a person with and people definitely like helping others.

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2. Vulnerability : The feeling of not admitting our mistakes has unfortunately been deeply ingrained in our psyche due to the education system that all of us are a part of and this has led us to view everyone with deep mistrust and suspicion. Getting rid of those negative feelings to an extent is what will help a person realise that we are human and have mistakes which they can help us to fix. Of course that doesn’t mean we pour out all our innermost secrets but definitely does ask for us to be truthful with what problems we face.

3. Candour: A person who does not tell us what exactly is wrong cannot help us overcome those same problems. Think about a doctor – patient relationship, In a case of malaria, if the doctor does not tell us what is the issue with our body , we most definitely will not be able to to help cure ourselves. Thus a mentor will point out whatever we do that stops us from developing and thus make us rise above to better levels. Candour thus is the important quality of hitting us right in the face when we need it and tell us to get going and rectify what we were doing wrong in the first place.

Accountability: A mentor’s most important job is to help us to chart out our goals and then making sure that we are held responsible for finishing or not completing that goal. This is how we make sure that we reach where we want to, and with someone constantly nagging and pushing us to do better there are much better chances we will achieve our vision. Think about it , how many times have we joined the gym or resolved to finish a book and never got around to do it because of low motivation? A mentor is that exact person who will stay with us to motivate or discipline us to reach our targets.

This book talks about a lot more, however apart from the 4 major mindsets; I would like to touch upon one other aspect of it. Where exactly do we find these mentors? One thought to it and we realize that they are present around everywhere, Our lecturers, parents, neighbours even librarians can be our mentors if only we are ready to admit that which is true , That we are weak and need their help and expertise to skyrocket us to reach the stars.

For those of us who are crazy about improvement and reaching heights (which I’m sure all of us are) , I would strongly recommend this book by Keith ferrazi , CEO of ferrazi Green lights.

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by Vaibhav Rajshekhar

3 B.Com J• • •

Who imagined that even a country like Cyprus would be trapped in a financial crunch. Not denying the possibility of this occurring, but the fact is what it is. To give a brief of what exactly is the Cypriot crisis, it is a major economic crisis in the Republic of Cyprus that involves the exposure of Cypriot banks to over-leveraged local property companies , the Greek Debt Cris is , the downgrading of the Cypriot government to junk status by international rating agencies, the consequential inability to refund its state expenses from the international markets and the reluctance of the government to restructure the troubled Cypriot financial sector. It started in the year 2009, when the Cypriot economy went into recession, and there was huge unemployment in the nation due to falling growth rate in tourism and shipping activity. This was just the beginning. Gradually, conditions became worse and banks were under humongous pressure as bad debts ratio kept increasing throughout this period. On the other hand, the credit rating in Cyprus showed a “junk” status, which meant the Cyprus government have to inject more fresh capital in order to mitigate the losses. Fiscal and structural reforms failed miserably, the big question is, where does Cyprus head to from here?

Cyprus has been heavily relying on Russia for an emergency loan of around 2.5 billion euros to cover its budget deficit. The loan has an interest rate of 4.5%, with no amortization/repayment until its maturity ends after 4.5 years, and no penalty if repayment at that point of time will be delayed. The Cyprus government also requested a bailout from European Financial Stability Facility due to persisting fallacies in the banking sector of Cyprus. Later in March 2013, the European commission, The European Central Bank and the International Monetary Fund entered into an agreement with Cyprus which was for an amount of 10 billion Euros. Measures were put in place to prevent withdrawal or transfer of moneys

representing the prescribed levy. A final bailout package which was set out on March 25, 2013 included some schemes such as:

1.Recapitalization of the entire financial sector while accepting a closure of the Laiki bank

2.Implementation of the anti-money laundering framework in Cypriot financial institutions

3.Fiscal consolidation to help bring down the Cypriot governmental budget deficit

4.Structural reforms to restore competitiveness and macroeconomic imbalances

5.Privatization program

The future of Cyprus economy is something which will be vital to be determined. It has been estimated that Cyprus must hang on to a “life support” measure in the form of Free Flow Capital from the Eurozone. While the short term collapses have more or less been avoided, the long term is entirely a different arena. Experts estimate that after such a severe blow, the GDP may fall by 10% and Cyprus may move into a harsh recession. Perhaps the biggest question is once the banks have been cleaned up and shrunk, where will Cyprus find its economic growth? Offshore gas deposits seem an uncertain option, and there is a constant threat to tourism if the Russians find that their money is being treated in a less hospitable way. The only surety is there will certainly be a few months or years of austerity and recession awaiting Cyprus. They can take solace however in the fact that their entire economy did not collapse and their recovery can speed up if the natural gas development pans out.

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Cyprus runs into Turmoil..

Real Estate in India Harsh Vardhan Singh

3 B.Com K•••

According to a common saying, to know “stress” one should organize a person’s marriage or endeavor to build a house. Consider the various factors which affect the decision of the purchase or construction of a house- from vastu, legal documentation, anticipated appreciation in value and maybe even the whims and fancies of the relatives. These inter related, complicated factors often give purchasers many a sleepless night.

Real Estate is often called as real property, sometimes called realty. With the development of private property ownership, real estate has become a major area of business. Purchasing real estate requires a significant investment and each parcel of land has unique characteristics-thus the real estate industry has evolved into several distinct fields.Real estate is broken down into a variety of different areas of businesses such as Appraisal, Brokerages, Property management, Real estate marketing, Real estate investing, Corporate Real Estate, Residential Real Estate and Commercial Real Estate.

The real estate sector is witnessing a tremendous boom under the liberalized economy of India. Overall the $14 billion Indian real estate market is inching towards $54 billion mark by the end of the year.This tremendous growth in Indian real estate market is due to technological innovations, new norms, policies and world class facilities, in the hospitality and entertainment sector. Real estate in India is emerging as one of the best investment areas for both domestic as well as foreign investors.

Real estate mentors define that the trend of real estate will continue its upward drive due to the booming  IT  sector  in  India.  The  interest  rates  are  might decrease in the coming financial year. The factors such as favorable interest rates, economic prosperity, change of attitude among the youth and liberalized FDI regime are

contributing to set a special trend in Indian real estate market.

The golden rule for buying or selling a property is to get an appraisal. It is essential that both first time sellers and experienced ones in real estate investment, get the real estate appraisal before putting it on the market.

There are three ways for valuating a property:

Cost approach:

Cost Approach is also formerly called as summation approach. Value of a property estimated by summing the land value and depreciated value of any improvements.A cost approach should be done by comparing the analysis of labor, material and other expenditure with the land value.

The cost approach is considered reliable when used on newer properties but it is not very reliable for older properties.

Sales comparison approach:

To examine the price of similar real estate properties in an area, Sales comparison approach is very reliable (if adequate comparable sales exist). This approach develops value from a purely pricing scheme.

Capitalization approach is used to evaluate commercial real estate properties. This approach is considered as the most applicable valuation technique where sufficient market data exists to supply necessary inputs and parameters to implement this approach.

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20

Food Review on Ice and Spice

Mohammed Sinan3 B.Com

•••

I was very excited to come to Bangalore in my first year in anticipation of living independently and making new friends. Being a big foodie, I would have liked to have some memorable experiences in good restaurants around Bangalore. Luckily my first experience was in a restaurant called Ice and Spice, which is 5 minutes from Forum Mall.

Even though I’m a strict non-vegetarian by choice, the first item on list was -an All American Vegetable Cheeseburger completely blew me away!” As I took my first big bite into it, I realized that there was one vegetable patty and one (wait for it) Cheese patty!!! Yes, I’m a big fan of that sticky-chewy-gooey item and one whole patty of it took me to Foodie Cloud 9. Another classic dish that was suggested to me was Baked Chicken Bavarian Pasta. It was a mix of pasta with either white or red sauce, served with garlic bread on the side. During the next few visits, I tried different types of dishes (non vegetarian this time). Having a cheese burst lamb burger is again an obvious choice for those who love burgers.

Also don’t forget to have the Green Apple Juice and the Mississippi Mud Pie, a delicious cake with lot of chocolate sauce.

Favorite places to eat in and around Christ University

1. Ice and Spice

2. Meghana Biryani

3. The Kiosk

4. Gourmet Hall

5. Food Court

6. Freshetaria

7. Dominoes Pizza

8. Taste of India

9. Bangalore Empire Rest.

10. Punjabi Dhaba

FROM TEAM MUDRAThe Department of Commerce is delighted to present the first edition of MUDRA for the year 2013.Working together as a team towards the common goal of publishing this edition has been an enriching experience.Valuable contribution poured in from the teachers and students from all classes.Thanks to all those who have made this publication possible.Eagerly looking forward to more creative work in the coming months!