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August 2014
Mumbai | Volume XII | Issue 1
CAT Advice for the anxious
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This is hardly the time for felicitations, but I would like to congratulate you, my dear reader, for having come this far. Let’s be honest — the CAT does manage to frighten away many MBA aspirants because of its perceived difficulty. But there are only a couple of months left before you take the CAT, and you’re still at it. That’s the first small hurdle crossed! Now, we know that the final leg of the CAT journey is upon us. Right now, the average CAT aspirant is taking simulated tests and brushing up on study, and along with that, there are the inevitable anxious questions. “Am I spending enough time studying?” or “Can topics that appear too tough be ignored?” These questions are quite natural, but the anxiety they generate is needlessly distracting. So, this month’s cover story is all about answering those questions and putting your troubled mind to rest. Another issue I would like to raise here is the perceived difficulty of the CAT. In previous issues of Advanc’edge, we have often stressed that although the CAT isn’t a cakewalk, the perception of its level of difficulty is greatly exaggerated. Knowing your basics, smart problem solving and the right strategy is all it takes to crack the CAT. In this issue, we have covered the Quant section, and supplied you with some standard types of questions you’ll probably face, along with some tips and tricks on problem solving. In the next issue, we shall cover the Verbal portion. One of my biggest wishes is to watch you attain success in your career, dear reader. But our main journey is only till the time you’re admitted to your dream B-school. After that, the handholding stops and you’re firmly on your way, which ultimately makes up for everything else. So make sure you use those two years at your B-school well, and do keep writing in to us.
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Fear to fail is the biggest hurdle to success. The fright of drowning is only till the time you are outside water, take a plunge and you will know how to swim.
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contents August 2014
05 Cover Story CAT advice:
Your questions, our answers
08 MBA Buzz
Quant matters: How to tackle CAT’ematics
12 Student Silhouette
Sudarrsanan Murali MH-CET 2014: 99.92 percentile
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19 Must Reads
Drive: The surprising truth about what motivates us Barbarians At The Gate Talent Is Overrated: What really separates world class performers from everybody else
20 Tipping Point
5 ways to ensure you never miss a deadline
21 Corporate World
The “Super” Budget 2014-15
25 Budget 2014-15: Sectoral offering 28 Outlook: Banking and Insurance Industry 31 Study Hour 14 News in brief 16 Countdown Top companies to work for
Test Q&As
34 Word Dose: Orphans in Axona 36 Globescan 38 SuDoKu
Disclaimer : The views expressed in the articles by contributors and others are not necessarily those of the Publishers, unless specifically stated therein. While no effort is spared in ensuring the accuracy of the information published herein, readers are advised to reconfirm the current facts before acting upon any such information. The Publishers regret their inability to accept responsibility for any inadvertent errors of commission or omission in this issue. Readers are recommended to make appropriate inquiries before incurring expenses or entering into commitments in relation to any advertisement appearing in this publication. The publishers do not vouch for any claims made by the advertisers of any products or services. The Publisher, Printers or Editor shall not be held liable for any consequences in the event of such claims not being honoured by the advertisers. All rights reserved. No part of this publication may be reproduced, in any form or means, or stored in a database or retrieval system without prior permission from the publisher.
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cover story
CAT advice: Your questions, our answers As we enter the last three months to the CAT and tension mounts, there are some questions that occur to every student, both first timers and repeat takers. These questions centre around what to do in this last mile to the CAT. We answer some of these in this article. Advanc’edge Team
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he CAT is a behemoth of a test, taken every year by lakhs of students in an attempt to get into the world of management. This test is probably the biggest hurdle to joining a business school, and naturally, MBA aspirants are filled with doubts and
questions. “Am I preparing correctly?” “Am I taking enough mock tests?” “Am I spending enough time every day on my preparation?” These are just some of the anxious queries filling the already stuffed brains of CAT takers. In order to allow test takers to concentrate completely on their
preparation and not get distracted by these anxieties, we have answered some of these burning questions to take the load off the mind. 5
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How many tests should be taken in the last month? Taking about 6 to 8 tests in the last 45 days is recommended. However, far more important than just taking the tests is their analysis. If you don’t learn from each test before proceeding to the next, there is really no point in taking a large number of them one after another. Try out various strategies for each test — for instance, try dividing your time equally in each section or spending more time on the weaker sections by working quickly in the stronger sections. Then, after the test, evaluate how you fared. By working in this manner, you can come to understand which strategies are working for you, and which aren’t. It is also important
Advanc’edge MBA August 2014
cover story
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to attempt a variety of scenario, how do you IDEALLY, YOU SHOULDN’T tests. This is because maximise your score? SPEND MORE THAN FOUR you may score well in a Tough questions from test that is more suited any topic should be ignored HOURS A DAY ON STUDYING to your strengths, while in any case. For example, FOR THE CAT. it just may turn out that in one of the IMS practice the CAT may carry more tests, a student didn’t questions of the kind you are for a test like the CAT is not at all answer a question based on playing uncomfortable with. An exposure like preparing for exams in school cards because he felt it involved to a wide range of problems and the and college, in which you need to permutations and combinations. rationale behind them will ensure spend long hours memorising the When he looked at the problem that you are better prepared. material. later, it turned out to be a simple linear equations question. So, read How much time in each day Can topics that appear too tough problems properly before leaving should be spent on studying for be ignored? them — they might be sitters. the CAT? Students usually find topics such Ideally, you shouldn’t spend as Modern Math tough, but you What exactly should be done while more than four hours a day on must remember that Modern Math analysing a test? studying for the CAT. The manner questions in the CAT are not always There are two answers to this dilemma in which those four hours are tough, nor are Arithmetic questions — for questions that were attempted, utilised depends on every test always easy. Your aim is to maximise and those that weren’t. taker’s individual strengths and your score in all sections, and you For attempted questions weaknesses. Some may prefer can do that by solving all the easy • Check whether your mistakes to spend more time on the Verbal questions. The earlier CATs had a were silly, careless or conceptual portion, while others on Quant. greater number of questions, so errors. Ultimately, you must ensure that you could probably afford to leave • Check if there are better ways to your progress in each section is out certain topics. But now, with solve the questions. equal. This holds greater relevance 30 questions to a section and a • Were you able to comprehend the if you are aiming primarily further division into 1 and 2 mark problem irrespective of the level of (perhaps even exclusively) for the questions, you cannot afford to leave difficulty? IIMs, because at these institutes, any questions out. You can’t even • If the concept is new, learn the cut-offs — even sectional ones — assume that the one-mark questions matter. will be easier than the two markers. Furthermore, organise your If you leave out Modern Math day in such a way that the hours entirely, you will have narrowed your spent studying are those when selection to only the easy questions your brain is most alert. Working in Arithmetic and Algebra. professionals, for example, In such a shouldn’t study at night after a hard day’s work. On the other hand, if you’re generally more active and alert during the late hours, perhaps a night-time study routine would be best suited for you. The fact is that preparing
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cover story While taking the test, you can mentally slot the questions into those that you can • Understand and solve • Can solve but will take time • Can’t solve (whatever the reason may be) By dividing the questions in this manner, you will be able to prioritise and plan your time. Also, developing this habit in practice tests will hone your ability to pick the “right” kind of questions. One of the main reasons people don’t do well in tests like the CAT is that they get stuck with problems and can’t move on. If you find that you began a problem assuming you can solve it but can see that your attempts aren’t leading you to the answer, let it go and move on to the next. You already have an idea of what you can attempt, and there might be an easier question elsewhere.
concept and move on. you (section tests/comprehensive • If answered correctly, check the tests), the previous years’ papers; explanatory answers — was also, refer to your Basic Reference your solution the best possible Material. If you’ve done this second approach to the problem? Should you TAKING TESTS WITH FRIENDS really have attempted these when, and if, IS BENEFICIAL, BECAUSE there were easier PEOPLE TEND TO COMPLEMENT questions elsewhere in the section? Why were EACH OTHER’S STRENGTHS AND you attracted to that WEAKNESSES. particular question? For un-attempted questions • Solve each of them. • Identify which questions could potentially have increased your score. • Why did you leave out the questions? • Did you even read these questions?
What would be a good test prep strategy for the final leg of preparation? A suggested strategy is to take a test every 4 days. If you take a test on Day 1, get into the analysis mode for Days 2, 3 and 4. Make sure you get in touch with the basics of your weak areas in this time period. Before beginning a test, ensure that you have an overall target score and sectional target ones.
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Once you have done this analysis, you should have an idea of where you are faltering. Therefore, pick an area that you need to work on and spend 2 to 3 days on solving every possible question of the kind from the material given to
rectification step correctly, rest assured that in the tests ahead, you will be able to solve any question relating to the topic you picked.
Does analysing a test with a group of friends help? Taking a test with a group of friends is immensely beneficial, because people tend to complement each other’s strengths and weaknesses. With, say four friends, you will have four different approaches to solving a problem. When you analyse a test by yourself, you will probably come up with time saving approaches for around 5 to 6 problems because a single person can come up with only a limited number of perspectives. With a group, however, you can be assured of multiple approaches to a problem. For example, some sums may not require you to use calculations — someone else might see that while it may not strike you. A
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mba buzz
Quant matters: How to tackle CAT’ematics With just a few months left for the CAT, we wanted to give you some pointers on how to approach the Quant section of the test. Collated and written in collaboration with our experts, this article gives you information for a last minute preparation. In the next month, we shall provide you with a similar write up on the English section. Advanc’edge Team (with inputs from IMS Acads)
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hey say Mathematics is the language of nature, of everything around us, of the Universe itself. In the days of polymaths, who were scholars not just learned but full-fledged experts in several fields, mathematics was the subject that everyone knew and studied. The great philosophers of old, like Ptolemy, Aristotle and Plato, were all great mathematicians in their own right. Even now, almost every branch of science has mathematics at its core, in varying degrees of course. And since you’re preparing to study the science of management, you will need to know your math. In the CAT, it all boils down to the cut-off score you can get. Sometimes, clearing the cut-off can be a matter of just one question here and there. Let us look at a few things in the QA-DI section that you should watch out for, so that you can optimise your performance to clear the cut-offs.
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Look beyond the formula While tackling any question, keep your eyes and ears open. Knowing the formulae to crack a question is, of course, imperative, but often, just by being aware of exactly what the question is, you needn’t even have to apply the formula. For instance, consider the problem below.
Advanc’edge MBA August 2014
Q. Two barrels A and C contain alcohol and water in the ratio 1:a and 1:c respectively. Equal quantities of the mixtures from A and C are mixed to get a mixture with alcohol and water in the ratio 1:b, where b is the arithmetic mean of a and c. What can be a possible value of a + b+ c, if a, b and c are integers? 1] 14 2] 10 3] 15 4] 8 This appears to be a straightforward problem, where you work in autopilot mode and fit the formula for mixtures into the question to arrive at the answer. However, consider this. If b is the arithmetic mean of a and c, then 2b = a + c. This means that a +b + c = a + c + b = 2b
mba buzz + b = 3b. Hence, a + b + c has to be a multiple of 3. Select the answer that is a multiple of 3 from the given options, and Bob’s your uncle! In this example, simply keeping your mind, eyes and ears open will lead you to the solution fairly easily. Consider another question. Q. A dishonest shopkeeper sells at cost price but makes a profit of 25% by using faulty weights. If he wants to make a profit of 12% how much discount should he offer? 1] 15.2% 2] 12.5% 3] 10.4% 4] 13% By now all of you should be in the habit of using 100 instead of ‘x’ as the cost price to solve most Profit and Loss problems. So if 100 is the C.P, then 125 is the S.P since he is making a profit of 25%. A profit of 12% means an S.P of 112 and a discount of 13; 13 will be just over 10% of 125 (10% is 12.5, moving one decimal to the left). The answer will be the option closest to this figure, between 10 and 11%. Work till the end to get the answer It is vital that in most questions, you follow your working towards the answer to the very end. If, midway through your calculations, you find that you can make what appears to be an “educated guess”, don’t pounce on it. Work till the end to find out what the answer is. Consider the following problem. Mark [1], if the question can be answered by one of the statements alone but not by the other. Mark [2], if the question can be answered by using either of the statements alone. Mark [3], if the question can be answered by using both statements together but not by either statement alone. Mark [4], if the question cannot be answered, even by using both statements together Q. The following data is available about a class: Mathematics Physics Statistics Liked Disliked Liked Disliked Liked Disliked Boys 54 45 30 Girls 40 50 55
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Mathematics Physics Statistics Liked Disliked Liked Disliked Liked Disliked Boys 54 b-54 45 b-45 30 Girls 6x 40 50 5x 55 Since the total number of students is the same, the total of Maths and Physics should be the same. Hence, b + 6x + 40 = b+5x + 50. Therefore, x = 10, and the question can now be answered. Many of you will probably stop midway through using the information in Statement I, and assume that using both the statements, the answer can easily be arrived at. DI is really not that tough DI questions are more or less freebies, especially the ones that do not involve any deduction (like filling up empty tables, etc.) and are based purely on understanding the set and calculating precisely. At their toughest, they involve interpreting the meaning of the data given. But even then they offer a good value for time spent, since there is a very high chance of getting them correct.
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Statement I: The ratio of the number of girls who liked Maths to number of girls who disliked Physics, is same as the ratio of the number of boys who liked Maths to the number of boys who liked Physics.
Statement II: There were 195 students in the class. How many students liked Maths? From Statement I, we can see that Maths/girls disliked Physics = 54/45 = 6/5. If the total number of boys is b, then:
Advanc’edge MBA August 2014
mba buzz For instance, in problems involving DI sets, the key to getting good at solving the sets is to understand that DI does not just mean painful number crunching. That would mean going at the problem with a hammer. You need to develop the ability to determine when to calculate and when to approximate. You also need to be able to do a fair amount of calculation without having to put pen to paper. A few things that are a must-know for fast calculation: 1. Powers of 2 till 12. 2. Squares of numbers from 2 to 30 3. Cubes of numbers from 2 to 12 These fast calculations are helpful not just for the DI portion but for the entire QA-DI section.
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read and understand the question fully before rushing to write. You are not saving any time by writing down anything before you have read the question. In fact, because you do not read properly you end up solving questions twice. Secondly, write only when required. If you can solve a question mentally, why write and make equations like kids. By writing you are under-utilizing your mental ability and spending more time than required to solve questions. Consider the following example.
Q. Kidsplay, a multinational toy manufacturing company decides to set up a plant in India. To set up a plant, the company has an initial fixed investment of Rs.10,00,000. The manufacturing cost per toy (which It’s only logical is variable and exclusive of the fixed investment) is Quite often, you will come across a problem that looks Rs.60. The company decides to fix the selling price quite tough, and appears to need a great deal of formula of each toy at Rs.80. Assume there is no other cost laying and solving. However, more often than not, it or investment incurred by the company for selling or actually is just a matter of logical reasoning! manfacturing the toys. Consider the following example. Using cost optimization measures, Kidsplay reduced the Q. N is a natural number manufacturing cost per IN THE CAT, IT ALL BOILS with a sum its digits as 3. toy by 25%. As a result 13 14 If 10 < N < 10 , then of this, on a production DOWN TO YOUR CUT-OFF how many values can N and sale of 1 lakh units SCORE. SOMETIMES, have? of toys, the profit of the If the number is a 2-digit CLEARING THE CUT-OFF CAN company increased by: number, it will be either 1] 100% 2] 120% BE A MATTER OF JUST ONE 21, 12 or 30. If it is 3-digit 3] 125% 4] 150% number, it will be 201,210, One lakh units’ selling QUESTION HERE AND THERE. 102, 120, 300 or 111. price is 80 lakhs. If cost So, the number of values N can take depends on the price per unit is `60, then total production cost is 60 number of digits. 101 has 2 digits, 102 has 3 digits and lakhs plus 10 lakhs; profit = 10 lakhs. If cost price per so on, until 1013 will have 14 digits. Hence, N will have unit falls by 25%, or 60/4 = `15, then on 1 lakh units, 14 digits. profit increases by 15 lakhs or 150%. Think about it — Now, N can either be a number this whole solution can be verbalised without putting • with three 1s: start with 1 and have the remaining pen to paper! two 1s in any of the remaining 13 places; two places Solving problems mentally and putting pen on out of 13 can be chosen in 13C2 = 13*12/2 = 78 paper only when required is a way of sharpening your numbers mind to the tip of an arrow. It is not easy to make a full • with a 2 & 1: start with 2 and have the 1 in any of turnaround from a habit that is so ingrained. But it will the 13 remaining places = 13 numbers ; start with definitely be worth the effort. 1 and have the 2 in any of the 13 remaining places = 13 numbers; Look at the problem differently • or a number starting with 3 followed by 13 zeroes. How do you know that there might be an alternative Therefore, the total number of values N can assume method? Which problems do you choose to solve by are 78 +13+13+1 = 105. the non-standard method? Typically, it is either the most standard looking or Don’t write if you don’t have to the most unconventional looking problem that can have It is an ingrained feeling in most of us that writing means a short solution. By most standards, these are the that we’re really trying to solve the problem. However, questions that have some sort of symmetrical situation
Advanc’edge MBA August 2014
mba buzz about them. Consider the problem below.
TYPICALLY, EITHER THE MOST STANDARD LOOKING OR THE MOST UNCONVENTIONAL LOOKING PROBLEM HAVE A SHORT SOLUTION.
Q. On a 120-km racing track, if P and Q start driving in the same direction from the same point and at the same time, then P wins the race by 25 minutes. If they drive towards each other from the opposite ends on the same track starting at the same time, the distances that P and Q cover when they meet are in the ratio 3 : 2. Find the speed of P’s car. It is obvious that the lesser time in the first case, is related to the extra distance in the second case. You have to understand that there has to be a short method to solve this type of question. You cannot solve the question using equations. When they are running in the opposite direction the distance covered is 3:2. Even when they are running in the same direction, the distances covered when P reaches the end will be in the ratio 3:2 (since their speeds are the same). Therefore, when P is at 120, Q is at 80 and to cover 40, Q needs 25 minutes. So, Q’s speed is 40/(25/60) and P’s speed is 3/2 of Q’s speed. This is how you squeeze every mark and every second out of a paper!
Some points to remember Let us take a detailed look at the most important testtaking strategy as far the CAT is concerned: You shall not have unread questions at the end of a section. If there has to be one golden rule that you are not supposed to break, this is the one. The CAT is not about answering tough questions, it is about selecting and answering the relatively easier questions. So how do you ensure that you do not have an
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unread question at the end? • Standalone questions first, sets later Sets, be it DI or LR, take time to solve. In case you get stuck, chances are that you will not realise how much time you have lost till you have come out of them. So in both sections start with the standalone questions and then move on to the sets. First pick, and only then solve Based on your competence, you will have a fair idea by now as to how easy or difficult a standalone question is after reading it. So while going through the standalone questions, don’t start solving straightaway. First decide whether you can solve it in two and a half minutes or less, only then proceed to solve it. Use the MARK option to navigate smartly As you navigate the standalone questions, you will definitely find questions that are solvable but might take about 3 to 4 minutes. Some of these might take time just because they are lengthy. Single out these questions to solve later. Use the MARK button to single out these questions so that you can use the REVIEW MARKED questions option to quickly reach these questions later. Do not throw good money after bad money The biggest mistake test-takers are guilty of is wasting time on questions on which they have already exceeded the average time of 2.5 minutes. If you have taken more than 2 minutes for a question, do not spend any more time on it unless you are dead sure that you will get the answer within the next minute. Every extra two minutes that you spend on a question is letting go of an easy question somewhere; MARK the question and move on. • Do SET-based questions in the middle Be it DI or LR, it is best that you do not start solving a set in the last 10 minutes of the test. The best thing to do is to take up the sets in the middle. Even so, choosing the right sets as well as the easier questions within a set is important. • You need not do all the questions in a set. Even sets that are easy overall might have a question which is a speed-breaker. Just because you spent time reading a set does not mean that you have to answer all questions; avoid the speedbreakers and move on. A
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student silhouette
‘Form a real time strategy while taking the test’ SUDARRSANAN MURALI scored a 99.92 percentile (CET score of 145) in MH-CET 2014, and hopes to join his dream business school — JBIMS. He has a Bachelors degree in Engineering with a specialisation in Electronics and Telecommunication. After his graduation in 2011, he has worked a year each in an IT company and an education company. He intends to pursue a career in marketing post his MBA. In this interview, Sudarrsanan shares his preparation strategies and experience on taking the test. Q. Many MBA aspirants target CAT, SNAP, NMAT and the CET, and you were one of them. When did you start preparing for CET, and what was your strategy? I believe that the preparation for competitive exams like CAT, SNAP, NMAT, XAT and CET is pretty similar to a certain extent, as many sections in the papers and the question types overlap for most exams. It’s the strategy for taking the exams that changes with each exam. Some exams focus more on accuracy, while some are speed tests. In that respect, my preparation had begun with the CAT during May, although I started my CET-specific preparation only after January. By January, I was well aware of my strengths and weaknesses in Quant and Verbal. So that was something I used in my mocks to choose which questions to solve and which ones to leave out. In the CET, both accuracy and speed are equally important. So being aware of the question types that you can solve correctly within 30 seconds becomes really important. Smartly choosing which questions to solve was my strategy for the CET.
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Q. What were the toughest and easiest areas for you in MH-CET? Why? Quant was my strength, and so was definitely my strongest point, but the CET had only around 25 to 30 direct Quantbased questions. Logical reasoning sets on Arrangements, Grouping and Conditionalities, and Logical Puzzles were another area of my strength. Critical Reasoning, Verbal Ability and Visual Reasoning were the tricky parts for me, mainly because there is no specific formula-based approach you can adopt here. The approach changes with each question, and you need to be a smart observer to be
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able to distinguish between similar looking options, which is what most students complain about in Critical Reasoning. The IMS faculty pointed this out to me and asked me to be more observant, and that changed my approach towards this section. I had to practise a lot of those questions to improve my accuracy and the IMS study material helped a lot in this respect. The Verbal Ability section fetches marks in minimum time if the questions are solved smartly. The comprehension passages need to be skimmed through and not necessarily read too carefully, and enough practice of the IMS study material equipped me quite well. I didn’t consciously work on vocabulary, but I used to try and build on my vocabulary by reading newspapers and books. Visual Reasoning required a lot of practice. The more patterns you are aware of, the quicker you will be able to crack the question, although in some cases, it is just better to guess and move on instead of spending too much time on a single question. Q. Many students tend to not prepare for Visual Reasoning questions. Did you adopt such a strategy? If you are targeting JBIMS, can you choose to skip certain question types? Visual Reasoning is definitely one of the more time consuming question types, especially when it involves 9 symbols or more. So choosing wisely here becomes extremely important. In CET 2014, visual reasoning questions came in sets of 2 questions or a single question intermittently between other question types. Not preparing for any particular question type is not advisable at all. I practised a lot of visual reasoning
student silhouette questions and equipped myself well to solve those questions. But my strategy in the exam was to try and solve these questions within the first 20 seconds. If I was not getting any lead within 20 seconds, I would intelligently guess an answer and move ahead. So I don’t think we can afford to predetermine skipping any question type. Even the areas we’re weak in can have a few sitters and we can get them right. In a test like the CET where there are almost 12 to 15 people scoring the same marks, each mark has a lot of value. In the end, the difference between a good score and an average score will be decided by the question types which normally aspirants tend to skip.
on speed. It has been repeated by the IMS faculty time and again – “Do not panic and you’ll get a bonus of 5 of 10 marks.” I knew if I was finding the paper lengthy, the other aspirants were too. I could attempt around 160 questions only because I stayed calm. The online mode of CET didn’t affect me much. The IMS SimCETs had made me comfortable with the online mode of the paper and I found the actual test taking environment similar to that of the SimCET. Q. How did you manage your weekly study schedule? I don’t believe that there is an ideal duration to study in a week, but it is important to study without pressure. It all depends on how quickly you pick up momentum. I targeted covering different question types during the week and one SimCET during the weekend. I spent more time analysing the SimCET than solving it. It helped me recognise the question types that I needed to work on, and I used to target such question types and tried to increase my accuracy by solving sectional tests and more similar questions.
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Q. What were your strategies to handle the difficult parts? The IMS test series helped me formulate different strategies, and all that experience was put to use in the actual paper. The SimCET test series made me realise that each paper needs a new strategy. The strategy depends on the paper and has to be formulated after solving about 10 to 15 questions in the paper. For an easy paper, speed becomes important, but accuracy becomes the deciding factor in a difficult paper. To formulate a real time strategy, it is important to know your strengths and weaknesses very well. Sometimes it is better Q. What advice would you give to MH-CET 2015 to solve a sitter in an area of your weakness and save time aspirants? instead of solving a lengthy Find out where you stand question in the area of your by taking a simulated test FOR AN EASY PAPER, SPEED strength. This makes it and ascertain the areas that important to have minimum need to be worked upon and BECOMES IMPORTANT, BUT weak areas so that you can target them. Get a head start ACCURACY BECOMES THE adapt well to any paper. So, on CET-specific question practising the weak areas types like Visual Reasoning, DECIDING FACTOR IN A and building confidence in Number-Alphabet Series, DIFFICULT PAPER. them is important. I used to etc. Test your progress practice my weak sections by taking a mock test at with the aim of not panicking and remaining confident even regular intervals and making a note of the areas that have if it was a difficult paper and did not play to my strength. improved and the ones in which you still need practice. Do not pressurise yourself during the simulated tests or Q. What was your paper solving strategy on the testing the actual exam. Do not let these mock scores discourage day? Did the online mode of the CET pose a challenge? you. Make an analysis of every mock test, noting down the On the testing day I wanted the first day first slot because positives that you can take from it and the areas that need I did not want anybody else’s opinion to influence my to be worked on. Have multiple strategies based on your judgement on any question. I had decided to go in with a strengths. Play to your strengths and practice enough to clear head and attempt questions on merit. I had a good idea cover your weaknesses. of the kind of questions I was good at and I had planned to invest my time in such questions. Q. There are also many who focus only on the CET, with CET 2014 was certainly quite lengthy, and my initial JBIMS as their target. Will anything above change in strategy backfired because I had started slow. After solving such a scenario? about 65 to 68 questions in an hour, I had to change my Such aspirants will have more time at hand to work on strategy. That is when I started solving sets from question their weak areas as they will no doubt start CET specific 200, hoping that there might be sitters at the end and not preparation earlier than the others. This time should be wanting to miss out on those. And that did help, as there utilised well to gain an edge over others and peaking at the were 10 Fill In The Blanks right at the end. Not only did I right time. Too much preparation can take a toll and slow gain confidence, but I also realised that I was catching up you down, and so it becomes necessary to be cautious. A
Advanc’edge MBA August 2014
mba buzz
News in brief 298 dead in a second Malaysian Airlines crash MH17, a scheduled international Malaysia Airlines passenger flight flying from Amsterdam to Kuala Lumpur, crashed mid-air on July 17, 2014. The airplane went down near Hrabove in Donetsk Oblast, Ukraine, about 40 km from the Ukraine-Russia border. All 283 passengers and 15 crew members on board the Boeing 777200ER airliner were killed. The crash occurred in the conflict zone of the ongoing Donbass insurgency. It is being claimed that pro-Russian rebels mistook the civilian flight for a military one and shot it with a surface-to-air missile. The incident occurs within months of the disappearance of another Malaysian Airlines flight MH370.
14
ome H e re a re s i nt e re st i n g t it bit s f ro m st o ve r t h e l a m o nt h
India ranks second in contingent workforce availability According to a Manpowergroup report, India comes just after China in terms of contingent workforce availability. (A contingent workforce is a provisional group of workers who work for an organisation on a non-permanent basis, including freelancers, independent professionals, temporary contract workers, independent contractors or consultants). The US, Thailand and Vietnam rank third, fourth and fifth respectively. The Contingent Workforce Index measures and tracks the relative ease of sourcing, hiring and retaining contingent workforce in 75 countries. With regard to cost efficiency, India took the top position; it came in at number six for contingent workforce engagement with the top five being – Hong Kong, US, China, New Zealand and Singapore.
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Nikesh Arora quits Google to join Softbank Google Inc’s chief business officer Nikesh Arora has quit his decade-long association with the tech giant to join Japan’s Softbank as vice chairman. He will also be the chief executive officer of the newly formed SoftBank Internet & Media Inc. Arora had joined Google before the company’s IPO and was instrumental in building the company’s search-ad service into the largest online ad business in the world. Omid Kordestani, who helped craft Google’s business model, will take over Arora’s role. IT industry adding fewer employees The IT industry added only 13,000 employees for the year ending March 2014, whereas in the year 2013, it had required 26,500 employees, according to data from software industry grouping Nasscom. The IT industry is embracing automation and looking for graduates with more specialised skills. This is a warning sign for graduates looking for a job in the IT industry. Engineering graduates are now facing stagnating wages and fewer jobs, as supply far outstrips demand and IT firms preferring to pick quality over quantity.
Advanc’edge MBA August 2014
countdown
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TOP Google India Pvt. Ltd.
Best Indian Companies to work for Source:ET
Information Technology - Software :Industry
1625 employees
Private
ownership
2
Information Technology - Hardware :Industry
Private
ownership
3
Intel Technology India Pvt. Ltd.
3644 employees
Hospitality - Hotel/Resort :Industry
Marriott Hotels India Pvt. Ltd.
5200 employees
Private
ownership
4
Financial Services & Insurance :Industry
Private
ownership
5
8129 employees
Information Technology :Industry
SAP Labs India Pvt. Ltd.
4635 employees
Private
ownership
7
Private
ownership
6
Adobe Systems India Pvt. Ltd.
Information Technology :Industry
Godrej Consumer Products Limited
American Express India
2553 employees
Manufacturing & Production :Industry
2121 employees
Publicly quoted/held ownership
8
Intuit Technology Services Private Limited
Information Technology - Software :Industry
773
employees
Financial Services & Insurance Banking/Credit Services :Industry
Private
ownership
10
4096 employees 297
employees
Information Technology - Storage/Data Management :Industry
Private
12
Eureka Forbes Ltd.
1849 employees
Private
14
Microsoft Corporation India Pvt. Ltd.
9363 employees 1860 employees
ownership
Private
ownership
11
NetApp India
Private
ownership
13
Encore Capital Group
Information Technology :Industry
6593 employees
Hospitality - Hotel/Resort :Industry
Publicly quoted/held
9
Ujjivan Financial Services Pvt. Ltd.
Manufacturing & Production :Industry
Information Technology :Industry
ownership
ownership
Professional Services :Industry
Cactus Communications Pvt. Ltd.
ownership
Publicly quoted/held
14675 employees
Private
ownership
15
Taj Hotels Resorts and Palaces
Top 10 Best International Companies to work for Bain & Company Industry Management Consulting
Twitter Industry Social Networking
LinkedIn Industry Social Networking
Eastman Chemical Company Industry Chemical Manufacturing
Facebook Industry Social Networking
6,000 employees 3,000 employees 5,000 employees 13,500 employees 6,818 employees 1,150 employees
Guidewire Industry IT
Interactive Intelligence Industry IT/Telecommunications
1,400 employees 52,069 employees
Google Industry IT/ITes
1,400 employees
Orbitz Industry Travel
NestlĂŠ Purina Industry Pet food
11,000 employees
4.6
Company rating
(out of a possible 5.0)
4.6
Company rating
(out of a possible 5.0)
4.6
Company rating
(out of a possible 5.0)
4.5
Company rating
(out of a possible 5.0)
4.5
Company rating
(out of a possible 5.0)
4.5
Company rating
(out of a possible 5.0)
4.3
Company rating
(out of a possible 5.0)
4.3
Company rating
(out of a possible 5.0)
4.3
Company rating
(out of a possible 5.0)
4.3
Company rating
(out of a possible 5.0) Source: Forbes
must reads Since you’re planning on doing your MBA, you need to be well read, and not just on current affairs. In this section, we offer you some choices of books that will broaden your perspective, and you will find that you will never be at a loss in a discussion!
I
n his book Drive, Daniel H. Pink suggests the way we can achieve high performance and satisfaction for both organisational and individual levels by exposing the mismatch between what science knows and what business does. It turns out that external incentives can limit our ability to think critically and creatively. Today’s world requires intrinsic motivation, consisting of three key elements: autonomy, mastery and purpose. Pink attempts to answer the question of what makes some people perform better than others. In other words — what drives us? The book is a must read if you aim to be a team leader or an entrepreneur. truth Title: Drive: The surprising us tes about what motiva Author: Daniel H. Pink Publisher: Random House Price: `290 gy Genre: Non-fiction/Psycholo
O
ne of the most important business books of all time, Barbarians At The Gate shares the story of RJR Nabisco’s fall, one of the largest takeovers in Wall Street history by Kohlberg Kravis Roberts (KKR). This book, by Bryan Burrough and John Helyar, offers a behind-thescenes look at what was then the largest buyout in history and it centres around one of the kings of the private equity industry, Henry Kravis of KKR, at a major turning point in his career. The book subtly paints a portrait of greed, excess and poor management in the form of F. Ross Johnson, RJR Nabisco’s eccentric CEO and president at the time of the bidding war. This is a central theme in the book — Johnson and his merry band of laid-back executives versus the hard-charging, cost-cutting style of KKR. Read this book to learn about financial operations of the 80s at the highest levels that are valid even today. e Title: Barbarians At The Gat an Bry yar, Hel n Author: Joh Burrough Publisher: Random House Price: `439 Genre: Non-fiction
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hy are some people great and others not? The answer to this ever-debated question is provided in this book, which tells us — quite simply — that talent is overrated. World-class talent isn’t something you are born with. It must be developed over many years of unflagging dedication, education, and deliberate practice of a key skill, which requires consistent repetition and immediate feedback. Colvin points out what we do not realise: Knowing the basics of your profession will help, no matter what. Based on scientific research, Talent is Overrated shares the secrets of extraordinary performance and shows how to apply these principles. It features the stories of people who achieved world-class greatness through deliberate practice, including Benjamin Franklin, comedian Chris Rock, football star Jerry Rice, and top CEOs Jeffrey Immelt and Steven Ballmer. at Title: Talent Is Overrated: Wh ss cla rld wo tes really separa else performers from everybody Author: Geoff Colvin Publisher: Por tfolio Trade Price: `787 ent Genre: Business/Managem
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Advanc’edge MBA August 2014
tipping point
Deadlines invariably stress us out, and the ultimate result is chaos. But with a little effort, you can make sure that all your projects
are submitted on time and your faculty or bosses are impressed. Here are 5 tips to get you there. Set goals and track your progress. Use a project tracker online. The tracker literally keeps us up to date on what is due and when, and who is responsible. What we accomplish every day — and even every hour — is easily logged. When a team member is falling behind, it becomes obvious, which makes it easy for someone to jump in and lend a hand. And when a team member achieves an objective, we celebrate together, too.
Have a Plan B, and even better, a Plan C.
ways to ensure you never miss a deadline
Surprises, setbacks and roadblocks are inevitable. You may not know where they're coming from, but things will go wrong — they always do. So think about alternatives and backups before you even get started. Create options for yourself and you will have less stress. If you're embarking on a new project, there's only so much you can learn on your own. Reach out to a mentor and ask, “What should I be aware of? What could go wrong?” Their advice will save you time and money.
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Give yourself some cushion. It is important to be realistic about how quickly you can accomplish a task. Do yourself a favour and factor in a little more time than you think you need when you begin setting deadlines. You already know that things could go off track. If you don’t end up needing the extra time you factored in, you may even make a deadline early, and that’s sure to impress everyone around!
Set explicit expectations.
It is always best to establish very clear expectations with the people you work with, ideally in writing. This is especially true if you are working in a group. Does everyone know what is expected of them? Make sure. If you send an email, confirm that everyone has received it.
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Be a leader. When things go awry, keep your cool. Others will follow your lead. Playing the blame game never does any good. Collect yourself, and focus on keeping morale high. How can you get back on track? You already know that it is inevitable that you’re going to be surprised by something, so there’s no need to let it derail you. Making a mistake is human. It certainly isn’t the end of the world. The sooner you let go, the more quickly you’ll be able to move on.
Advanc’edge MBA August June 2014 2014
corporate world
The “Super” Budget 2014-15 The overall highlight of the Budget announced by the new government for 2014-15 is in reducing deficits and inflation, and encouraging growth. However, despite the slew of measures in the Budget, it is still not absolutely clear how these will be achieved. Dr Suresh Srinivasan
T
he Budget 2014-15 had generated high expectations on account of the thumping majority with which the BJP came to power and the growth and development agenda that formed the core of the party’s election campaign. A key question lingers, however — has the BJP, in fact, lived up to such expectations? Having taken charge barely two months before, one cannot expect the budget to deliver the whole nine yards, but the expectation was for a clear cut intent and direction! This article will discuss if the budget addresses the
need of the nation. Has the budget signalled moving the nation in the right direction? The economic survey released ahead of the budget highlighted the key challenges to be the following: high levels of inflation (consumer price inflation is currently at 9.5 per cent and whole sale price inflation at 6 per cent), poor domestic demand and a weak manufacturing sector. All of these have constrained the Gross Domestic Product (GDP) growth for 2013-14 at 4.7 per cent. Despite low levels of growth and investment, the financial position improved towards the end
Finance Minister Arun Jaitley
The Union Budget It is unrealistic to expect the Budget to address the vast number of issues all in one go to get the economy back on track. The government has selectively picked up big ticket items and has taken baby steps, not promising to resolve these issues outright, but providing a direction as to what is in the offing in the coming years. To that extent, it is not a “big bang” budget that promises the sky, but firmly provides the required direction and thrust towards enhancing savings, increasing investments, clearing infrastructure bottlenecks, improving agricultural productivity and controlling inflation in the short to medium term. Inflation easing measures The Budget cannot provide any short term measure to control
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T GE 5 D BU 14-1 20
of 2013-14, with a sharp reduction in current account deficit to 1.7 per cent of the GDP (compared to 4.7 per cent of the GDP in the previous year), increased foreign exchange reserves (now more than US$300 billion) and a manageable level of fiscal deficit at 4.5 per cent of the GDP.
Advanc’edge MBA August 2014
corporate world inflation. Through its monetary policy stance, the Reserve Bank of India (RBI) controls market liquidity and thereby keeps inflation in check. But there are certain directional steps to ease the supply side constraints of food items that have largely been contributing to higher level of inflation. The problem has been that food grains produced by the farmers are not effectively reaching markets; with more demand, the price of food items have been increasing. Weeks before the budget, the finance minister (FM) asked the state governments to remove fruits and vegetables from the Agricultural Produce Market Committees (APMC) Act. This in effect means that the farmers would be able to sell these produce directly to retailers and consumers, circumventing the middle men and agents who have been responsible for creating a cartel and paying low price to the farmers for their produce. Middlemen have also been reported to be responsible for hoarding and artificially pushing up the prices and inflation. A strong message from the FM to all the states asks for serious actions to be taken against hoarders. In addition to these measures, the Budget has also paved the way for increasing the warehousing capacity — the introduction of scientific warehousing will go a long way in improving the shelf life of the produce. The FM has also mentioned in the budget document that the Food Corporation of India (FCI) will be restructured to improve efficiency of public distribution systems, reduce losses in transportation and warehousing. www.advancedge.com
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Savings, investment and subsidies Domestic savings had steeply reduced from 33.1 per cent of the GDP in 2009-10 to around 31 per cent; there is an urgent need to
Advanc’edge MBA August 2014
INDIA INC: AT A GLANCE RIL takes control of Network 18, TV18 Reliance Industries Ltd (RIL) has recently taken control of the Network 18 Media and Investments Ltd and its subsidiary company TV18 Broadcast Ltd for a consideration of `4,000 crore. NW18 is in the media business and operates digital television, e-commerce and internet businesses including In.com, IBNLive.com, Moneycontrol.com, Firstpost.com, Cricketnext.in, Homeshop18.com and Bookmyshow.com. Its broadcast channels include Colors, CNNIBN, CNBC TV18, IBN7, CNBC Awaaz. IIP Growth encouraging The Index of Industrial Production, that reflects the robustness of the manufacturing sector, grew at slightly less than 5 per cent during May 2014 bringing back the vibrancy in the manufacturing sector. A strong growth of 4.5 per cent was also recorded in the capital goods sector and a 3.7 per cent growth in the consumer goods sector. The IIP growth for April was a mere 3.4 per cent. Electricity generation also grew by 6.3 per cent. IIP’s potential for growth over the next few months is quite high given the slew of announcements made in the Budget 2014-15 that are intended to kick start the manufacturing and capital goods sector. ICICI looking for takeover targets Chanda Kochhar, CMD of ICICI bank, is planning to scale up to the next level and is looking for takeover targets. In the past ICICI had taken over several banks including Bank of Rajasthan, Sangli Bank and Madura Bank in order to achieve its current size and scale. ICICI has created history over the last decade in establishing a commercial bank from scratch and has grown in scale to become one of the largest players in the Indian financial services sector. Its management depth and diversification into related businesses like insurance has become legendary and is being taught as a case study in business schools. Massive Job cuts in Microsoft Microsoft recently announced that it will axe 18,000 staff over the next few months as it trims its newly-acquired Nokia phone business. However, Microsoft has confirmed that terminations will be done in a transparent manner and the terminated employees would be supported in a number of ways during the transition including payment of severance packages and support for finding alternative employment. The move is intended to help Microsoft shift from being a primarily software-focused company to one that sells online services, apps and devices in line with its competitors Google and Apple. RBI Niche Banking Licenses The Reserve Bank of India (RBI) has issued draft guidelines for creating niche banks focused towards payment services or focused towards smaller customer group, geography or focused businesses. This has been on the cards for some time now; the objective is to speed up banking penetration in the country.
corporate world Table 1: The Budget Math Figures in lakh crores Where does the money come from?
Where will the money be spent?
Tax from Companies
4.5
Interest payments
4.3
Personal Tax
2.8
Subsidies
2.6
Serviec Tax
2.2
Pensions
0.8
Excise Duties
2.1
Administrative & Social
8.0
Customs Duty
2.0
Less: State Govt. share & others
-3.8
9.8 Capital Expenditure
Capital Receipts (incl. loans and PSU divestments)
5.9
Non Tax Revenue (interest, profits from PSUs, others)
2.3
2.3
reaching `2.5 lakh crore, there is a clear message that over a period, the subsidy will be sharply cut, but become more focused to reach the targeted groups who are in desperate need of such subsidisation. The subsidies are currently a major portion of the governmentâ&#x20AC;&#x2122;s expenditure plan (see Table 1).
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Clearing infrastructure bottlenecks Banks are being allowed Total Receipts 17.9 17.9 to raise long term funds * Fiscal defict of `5.31 lakh crore included above, is financed through loans and divestments to specifically finance infrastructure projects. Real boost this further. The Budget has the way forward could ease more Estate Investment Trust brought in a number of steps that foreign investments that were held (REITS), a globally popular means will increase domestic savings, up to now come through. On the of funding real estate projects, has including increasing the limit of taxation front, reductions made in also been announced. More than public provident fund contribution excise and customs duty will make `37,000 crore has been announced to `1.5 lakh (deduction under the manufacturing sector more to improve the road network, with 80C has also been increased), attractive. a target of 8,500 km of roads to reintroducing Kisan Vikas Although the subsidies be completed during 2014-15. Patra, which could bring small (government taking on the burden Other initiatives have also been savings currently channelled into of the common man) in the areas announced to boost shipping unproductive assets like gold and of food, fertilizer and petroleum and energy sectors, including silver into mainstream savings products has marginally increased, rationalising coal linkages that that can be used to improve investments in the economy. Increasing the IT exemption limit by `50,000 to `2.5 lakh (`3 lakh for senior citizens above 60 years) should also leave more cash in the hands of taxpayers, which can then be channelled into investments. In addition to providing the means to improve savings that can be channelled into more investments, a slew of other measures that will kick start domestic investment has also been announced as part of the budget. Increasing Foreign Direct Investment (FDI) in defence and insurance sectors to 49 per cent will see more investments flowing through. A clear message that Banks to be allowed to raise long term funds to finance retrospective taxation will not be infrastructure projects.
Advancâ&#x20AC;&#x2122;edge MBA August 2014
corporate world Railway Budget The year 2013-14 saw the Railways underperforming on all counts, from passengers carried, freight carried and revenue generation. The operating ratio, which measures the efficiency of the Railways also deteriorated to 93.5 per cent — this means that out of every 100 rupees earned, 93.5 rupees was spent during 2013-14 on operational expenses, leaving only 6.5 rupees for meeting investments in safety, amenities and modernisation. This is concerning, especially when compared with the same measure in 1983-84, at 74.7 per cent, demonstrating the extent to which finance of the Railways have deteriorated over the years. A number of measures have been mentioned in the Railway Budget to improve efficiency during 2014-15. A marginal improvement in the operating ratio to 92.5 per cent, recent increase of nearly 14 per cent in passenger tickets ahead of the budget, a 6.5 per cent increase in freight rates, and a host of passenger convenience initiatives, including Wi-Fi services on trains, e-ticketing through mobile phones, escalators in stations, strengthening railway police system for better passenger safety, improved cleaning services and launch of high speed bullet trains. Improvement in governance is also being targeted through restructuring the Railway Board. will boost power production in the country. Indication that manufacturing will be strengthened has strongly come through. The setting up of a national industrial corridor authority, export promotion mission, enhanced skills development through the Apprenticeship Act and a large number of initiatives including equity venture capital funds is expected to boost entrepreneurship and encourage start-ups.
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Fiscal Consolidation The acid test on the budget proposals will lie in what the reality is in the budget expenditure and receipt numbers (see Table 1). Overall expenditure is increasing by more than 10 per cent to `17.9 lakh crore, which the government is expecting to fund through additional loans, higher level of disinvestment of shares in public sector units and targeting an enhanced tax revenue of close to 17 per cent more than the previous year. The fiscal deficit
China’s GDP grows at 7.5 per cent It is a relief for the global economy that China’s economic growth rate has inched up to 7.5 per cent in the second quarter of 2014. China’s growth has been achieved through robust industrial production and enhanced domestic consumption. The improvement in the developed economies is also fuelling this growth. This is a marginally better growth rate than the first quarter of the year after which the Chinese central banks injected liquidity to boost the economy.
Advanc’edge MBA August 2014
has been targeted at 4.1 per cent of the GDP for the budget year 2014-15 a 0.4 per cent lower than last year. Overall, the targets seem to be quite optimistic and will be challenging to achieve. Containing the fiscal deficit at 4.1 per cent and achieving disinvestment of `63,000 crore in the span of the next seven to eight months will be a challenge, especially when not more than `25,000 crore was achieved in the whole of last year. More importantly, it is not very clear if the Iraq crisis and the potential increase in global crude prices as well as the failing monsoon during the current year have been factored into the expenditure and inflation levels. These may very well adversely impact the Budget numbers. The Budget did receive mixed response from corporates, foreign investors and the retail stock market players, with the stock markets reacting negatively on Budget day. Although the intent has been in the right direction — signalling major reform initiatives in key areas — the budget did lack specifics, especially in containing the fiscal deficit. The hope is that this will be addressed more effectively, and there will be more clarity going forward. A
US Economic recovery Janet Yellen, the US Federal Reserve Chair person, has indicated that there is still scope for the US economy to recover further. Although the unemployment rate has fallen down to 6.1 per cent, Yellen mentioned that this is still a high number that needs to go down. The takeaway from Yellen’s statement is that the US economic recovery is still incomplete and that there is still more time for the interest rates to increase as the Federal government will continue to hold the rates low as long as there is scope for the economy to increase further.
A T A G L A N C E
corporate world
Budget 2014-15: Sectoral offering There is good news for a lot of key sectors in the Budget 2014-15 announced by the new government. The measures included in the Budget all point to an effort to revitalise these ailing sectors, and help boost the growth of the Indian economy. Dr Suresh Srinivasan
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hen the budget proposal is analysed for the impact it will have on different industry segments, its potential to spur growth comes across as promising. Key sectors in the economy, including banking and financial services, manufacturing and capital goods and real estate have, in fact, been given a solid thrust to kick start economic growth in the country. The sector-wise impact of the Budget 2014-15 is analysed in this article.
Manufacturing and capital goods Increase in the ceiling of FDI from 26 per cent to 49 per cent in the defence sector manufacturing is a key initiative that previous
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Banking and financial services The health of the banking sector is of paramount importance for a vibrant economy. The Indian banking sector needs to be strengthened on many counts to improve its well being, and this budget addresses many such issues. As per Basel III norms, Indian banks will need an additional capital of around `2.4 lakh crore by the year 2018 in order to adequately manage their risk levels. Although a small part of this capital requirement has been provided in this budget, the government intends to fund such capital increases through diluting its share in the public sector banks by allotting shares to retail investors in a phased manner, with the government still holding majority ownership.
This is a sensible proposition, as the government wonâ&#x20AC;&#x2122;t be in a position to fund this mammoth requirement, but at the same time, raising the funds from retail investors would also given them fragmented ownership of priced banking assets of the country. Permitting banks to raise long term funds for lending exclusively for infrastructure will be a boon for infrastructure companies. Additional allocations for National Housing Bank will extend credit, and spur activity in rural and low cost affordable housing. Increasing deduction limit on interest on housing loans will initiate more loan business for banks. Proposals to increase the tax rate on long term capital gains provides incentives for depositors to switch debt mutual funds to bank deposits. This will also ease the banksâ&#x20AC;&#x2122; fund raising initiatives. The cap on Foreign Direct Investment (FDI) in the insurance sector has been proposed to be increased to 49 per cent (from the current 26 per cent), which will allow more foreign specialist insurance players to enter the Indian market in joint venture with Indian companies. The management control of such insurance companies will still remain with the Indian companies.
Advancâ&#x20AC;&#x2122;edge MBA August 2014
corporate world governments had been debating but had failed to implement, given the sensitivity of this sector. The new governmentâ&#x20AC;&#x2122;s bold initiative to open this sector up to foreign investors, who will bring in valuable technology and make investments jointly with Indian players but with management control resting with the Indian partner, is a master stroke. This will be very attractive for foreign players as India is not only a huge defence market but also a low cost destination from where exports are a good possibility. This will also save substantial foreign exchange for the country, as a large part of our defence equipment is imported, but at the same time, setting up local manufacturing units will enhance job creation and skill development. The government has provided incentives for the manufacturing sector by allowing investment allowance for investments ranging from `25 crore or more, decreasing the limit from the earlier `100 crore. Investment allowance allows manufacturers to reduce their taxable profits and pay lesser taxes on purchase of capital equipment. This is likely to give the much required boost to the manufacturing sector, which is currently quite weak. A slew of measures to boost local manufacture of solar panels and wind turbine components has also been proposed. Customs duty on picture tubes and LCD television panels that cater to the low income group has been eliminated.
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Infrastructure and real estate Over the years, Indiaâ&#x20AC;&#x2122;s infrastructure investments have predominantly been structured under the Public Private Partnership (PPP) scheme. However, it has been ridden with problems faced by the private partners as a result of a lack of clarity in the responsibilities of the parties and inappropriate risk-
Advancâ&#x20AC;&#x2122;edge MBA August 2014
BRICS Bank One of the biggest problems for the emerging economies has been the inability to access development finance from western banks like International Monetary Fund (IMF) which are dominated by the super powers. In order to mitigate the dominance of IMF and world bank, emerging market leaders launched BRICS bank, expected to be capitalized with US$100 billion, $50 billion of which would be contributed equally by the five partners who will have equal voting rights. The bank would be primarily focused on development activity in the BRICS and other emerging markets. The focus of the BRICS bank would be to fund capital intensive, long gestation infrastructure projects in developing nations as well as ease liquidity as and when required. It has been agreed to base the bank in Shanghai and the head of the bank would be from India for the first six years followed by Brazil and Russia. Carrefour to exit India Carrefour, the second largest retail player in the world, headquartered in France, has decided to pull out of India after two years of operations in the wholesale segment. This is not good news for Indian regulators as it runs five wholesale outlets and had entered this business with an objective to understand the Indian market and establish itself well ahead of the multibrand FDI in retail being opened up. However, although the Indian government opened up FDI in multi-brand retail in 2012, various restrictive clauses like mandatory local sourcing requirements have discouraged many global retail players to enter the Indian market. Wal-Mart also sold off its stake in wholesale retail and exited India a few months ago. Google innovation These are days of alliances; companies pool in their expertise and core strengths to create altogether new products that will delight the customer. After Apple and IBM, two global giants, Google and pharmaceutical major Novartis have teamed up to create the smart contact lens. Both the partners expect it to be used in the main stream over the medium to long term. The contact lens is expected to sense glucose from tears through a small chip that will be transplanted inside a wafer thin plastic contact lens which will continuously monitor the level of glucose. This is another major step in the emerging trend of wearable devices in the communication industry with players like Samsung, Intel and Apple spending billions of dollars in developing new wearable devices that can allow one to seamlessly access the internet.
A T A G L A N C E
corporate world reward sharing mechanisms. This has significantly slowed down many PPP projects, especially roads and expressway projects, which have virtually come to a standstill over the last year. The budget proposes setting up a body that will resolve the pending issues between the private players and government, and will ensure effective implementation of both pending and new PPP projects; an allocation of `500 crore has been made towards this end. A number of proposals to develop new airports in smaller cities to improve connectivity of passengers and freight as well as measures to create 16 new sea ports are likely to enhance infrastructure, aid growth and improve employment in the economy. Proposing the Real Estate Investment Trusts through a tax efficient structure has provided an alternative funding option for the Indian real estate market, and this could attract a number of foreign players. A number of other measures reducing the minimum size of real estate development will allow foreign investment to flow through to smaller Indian developers.
Energy and mining Major initiatives have been announced in the oil and gas sector. The proposal to lay down a 15,000 kilometer pipeline to transpor t gas across the country with public private par ticipation is a major step forward to encourage gas usage by power and fer tilizer plants due to the less polluting nature of gas over coal. This is also likely to spur more investments towards gas exploration and production, thereby decreasing our dependence on crude oil.
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Automobiles This is a sector that has a high impact on domestic job creation as well as on consumption. In a developing economy like India, where the automotive penetration per capita is extremely low as compared to global benchmarks, a vibrant auto sector is a must for sound economic growth. Over the last few months, this sector had been severely hit, by sluggish vehicle sales. The budget proposal has provided for the extension of excise duty rebate till the end of 2014. This will reduce the on-road cost of vehicles, enhance demand and increase manufacturing sector
and GDP growth. The level of agriculture credit has also been sharply enhanced, with a target of 4 per cent for agricultural growth; this should steeply push up tractor and farm equipment sales. When the supply side effor ts to control food inflation included in this budget star ts taking effect, interest rates should come down, which can give a fur ther boost to the growth of this sector, as it is highly interest rate sensitive.
Piped natural gas usage has also been signalled to be increased by providing more lines in large cities, which will reduce the usage of gas cylinders. Excise duty has also been cut on branded petrol, which will spur the sale of cleaner gasoline in retail outlets, matching the sophisticated passenger vehicles that are being introduced in the country. The overall fuel subsidy is being steadily decreased, as petrol is now more or less sold on an arms length basis, and the diesel subsidy will continue to be reduced in a phased manner, easing pressure on fiscal deficits. Various initiatives have been proposed to make Coal India more efficient, thereby making more, cleaner coal available to power plants to increase electricity generation â&#x20AC;&#x201D; a key requirement to avoid power cuts and increase growth. Income tax holidays on several power projects have also been extended, and banks will be suppor ted to extend long term funds to power projects. In the mining sector, expor t duty on bauxite has been steeply increased to 20 per cent, which means more bauxite will now become available to aluminium manufacturers, an industry that is expected to grow steeply on the back of infrastructure and construction. A number of other favourable policies in the steel and iron sector are likely to positively impact demand for metals, especially given the thrust on infrastructure and real estate including rural and affordable housing and the announcement of smar t cities. Overall, the impact of the Budget on key sectors is likely to be positive, and they will be very impor tant to kick star t the countryâ&#x20AC;&#x2122;s economic growth and move towards double digits in the next two to three years. A
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Outlook: Banking and Insurance Industry The banking industry being a crucial sector indicative of the growth of the economy, it is vital that the banks start recovering from their present weak condition. Increasing the reach to customers and raising of FDI to 49 per cent will help. Dr Suresh Srinivasan
I
t has been proposed that the banking and insurance industries will be reviewed, in order to understand current trends and future outlook. There are a number of similarities between these two industries, as both are yet to reach a significant proportion of the Indian population who remain under served. Again, it is important for a large part of the Indian population to have access to banking as well as insurance products, as we move from a “developing” economy to a “developed” economy. In fact, opening up of these two sectors and bringing in vibrancy is at the top of the government’s agenda, which has also been demonstrated in the recent budget.
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Banking Banking is a crucial sector that is vital for a robust economy. Banking in India is still at its nascent stages in terms of penetration — only 50 to 55 per cent of the Indian population is currently served by banks. This poses a huge opportunity for banking, not only from the business point of view, but also from the perspective that poor banking penetration is not a good sign for an economy that has been liberalising and opening up for the last two and a half decades!
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The bulk of commercial banking activity in India is performed through a combination of public sector banks, which includes the nationalised banks, State Bank of India and its associates, private sector banks and foreign banks. There are more than 150 commercial banks with around one lakh branches across the country. In terms of population handled per branch, the national average works out to around 12,000, which ranges from 3,000 in well-banked cities like Chandigarh and an average of around 24,000 for “under banked” states like Bihar. At a global level, this equates to around 2,500 to 3,000 for countries like United States, Australia and Brazil, which are considered well-banked. There are also a number of regional rural banks. In addition, there are cooperative banks,
which include urban cooperative banks and state cooperative banks. Banking assets Over the last four years, the quality of banking assets has steeply deteriorated. This means that the profile of the banking clientele is not strong enough for the banks to ensure collection of outstanding dues. This is due to a combination of factors — funds have been disbursed to borrowers who have no intention to pay back; dilution has happened due to poor due diligence and in the interest of the bank to disburse more loans in weak economic conditions. Contrarily, it is also a fact that some good clients have become financially weak and are unable to pay despite having the intention to do so, due to the poor economic conditions and reducing demand in their
corporate world business. Banks are struggling to reduce such non-performing assets (NPA). Raising capital to cover the potential risks the banking business poses is a major challenge, especially with Basel III regulations prescribing capital adequacy norms that translated to more than `2 lakh crore for the Indian banking industry that needs to be raised by 2018 in a phased manner. In order to achieve financial inclusion and reduce the urban-rural divide, penetration and reaching out to the “unbanked” population is a major challenge that the government and the Reserve Bank of India (RBI) are striving to achieve. Lack of skill sets is another major concern. With more banking penetration, substantial middle level and senior managers will be required, but their numbers are currently quite scarce. Agriculture The agricultural sector in the country is highly unorganised and least productive due to low mechanisation levels. Tractor and farm equipment is the need of the hour, which will require focused financing and addressing of affordability and mortgage issues. The banking industry could play a major role here, but unfortunately, banks are unable to get down to such a micro-level of financing.
A T A G L A N C E
Apple IBM Alliances Apple Inc. and International Business Machines (IBM) recently announced an alliance that will use Apple mobile products including iPhones and iPads, for the companies and their staff to access IBM software in the workplace. IBM is a major player in enterprise software that provides IT solutions to most of the top global companies. Currently, the IBM software programs are accessed by employees through their desktop or laptop computers. With the penetration of mobile phones increasing the two companies have envisaged that the alliance between IBM and Apple will allow employees to access data through their mobile devises which would be a win-win situation for the employees, IBM and Apple.
technology, cloud computing and data mining are no more a luxury, but would be basic essentials to precisely understand customer requirements and preferences and develop products to meet their precise expectations so that product development costs are optimised. Cross selling products and moving back offices to low cost destinations are also becoming inevitable for banks to remain profitable. Public sector banks are finding it extremely difficult to compete with private sector banks in a dynamic environment.
Insurance sector The Indian insurance industry is close to US$80 billion in size, and India is ranked as one of the largest insurance markets in the world. However, insurance penetration in India is still not more than 4 per cent, much lower than the Asian and global counterparts, demonstrating the growth potential over the short to medium term. The penetration levels in medical insurance are still ridiculously low, at less than 1 per cent. Although the sector comprises life and general insurance, life
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Consumer banking With the growing middle class, increasing income levels and penetration of technology and handheld devices, consumer banking both in urban and rural areas is a major opportunity. Consumer banking needs to become extremely sophisticated, as the customers are dictating how they want to bank — over the counter, over the Internet, via call centres or through their mobile phones. Banks need to provide a seamless experience across all these channels. Substantial investments in
BRICS Summit PM Narendra Modi and the Indian diplomatic delegation have attempted to further India’s position in the emerging market forum comprising Brazil, Russia, India, China and South Africa (BRICS summit). A number of MOU’s signed by member countries to further trade is a positive development. He stressed the importance of engagement and cooperation between the BRIC nations at a state and city level. PM Modi also highlighted the importance of sustainable use of energy sources. The Indo-Russia relationship was given a boost with the friendly meeting between Modi and Putin. PM iterated that BRICS must provide a united and clear voice in shaping a peaceful, balanced and stable world. Cooperation in confronting challenges like terrorism, cyber security and climate change was also reiterated.
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insurance still constitutes a major and skills training to nurture a 12 twelve years, the players have part of the Indiaâ&#x20AC;&#x2122;s overall insurance productive talent pool. The public been struggling to balance their cost business. The growing middle class sector insurance companies need structure with the size growth and and the growing per capita income to match up in building firm level revenue model, resulting in losses. and saving levels, increasing competencies to compete head on In order to achieve profitable growth literacy levels, exploding internet with these large private sector players for long term sustainability, insurers penetration and better awareness in order to remain successful. Bank- have two key imperatives. Insurance are all fuelling insurance growth promoted insurance companies companies need to innovate, find exponentially. like ICICI and HDFC have been the right business model, reach the The year 2000 saw a number of gaining enhanced penetration targeted customer in a more focused global insurance players enter India far superior to other insurers, given manner and precisely convey the when the government opened up the their customer relationships and value proposition they offer. The insurance sector by allowing 26 per aggressive marketing strategies. operations and the business model cent foreign direct investment. India Moreover, the profitability of also need to be streamlined to now has more than 20 players, a these insurers is superior address such exponential growth. combination of public sector and to standalone insurance companies, Players need to evaluate options to private players companies, target focused customer all aggressively competing groups or acquire THE INDIAN INSURANCE with each other. Public competitors to establish INDUSTRY IS CLOSE TO US$80 scale as well as acquire sector units like Life Insurance Corporation BILLION IN SIZE, HOWEVER, THE talent and customer base. of India (LIC) still has Growing mid-sized INSURANCE PENETRATION IS companies are seeing a substantial edge over private insurers on the need to carefully STILL NOT MORE THAN 4%. account of 100 per cent choose a niche segment government ownership to grow faster, rather backed by sovereign guarantee on as they share a substantial part of than being present in all segments the insurance policies issued by it. their infrastructure and sales force and a wide geography. Such To that extent, the industry is still costs, resulting in competitive focused strategies will help these not a level playing field. advantage. companies to build capabilities However, large private sector superior to the competition that is players are posing a significant Losses incurred present in all segments. Technology threat to public sector insurers, as One of the major concerns in the is also playing a major role. they bring to the table the best global sector is the losses â&#x20AC;&#x201D; with a Internet penetration and mobile practices, systems and processes, cumulative average growth rate of devices being widely percolated, technology, management depth close to 18 per cent over the last private sector insurers are gaining significant competitive advantage by smartly deploying technologies like renewing the policy in a few clicks. To sum up, the sector is and will continue to be very attractive and will offer an opportunity for all players. The opening up of Foreign Direct Investment (FDI) from 26 per cent to 49 per cent in the recent budget will drive more entry and also a higher level of participation from the global insurance majors. With miniscule penetration, foreign and local players will for sure enhance their stakes in the short to medium term. A
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Are you a Brainiac? In this section, we shall explore several different types of questions from the various areas of entrance exams like the CAT, CET, GMAT, etc, and how to best solve them.
Quant DIRECTIONS for questions 1: Choose the correct alternative. 1. If y =
then, for how many integer values of x is y > 0?
1] 0
y=
Let x = p4, then the equation becomes
y = p3 + p2 – 20p > 0
2] 255
3] 624
4] Infinite
–5 < p < 0 or p > 4. 31
Since, p takes infinite values x takes infinite integer values. Hence, [4].
2. In
PQR, PD
QR and QR = 2RD. The length of all the sides of
one side measuring 26 units. If the area of
1] 35 units
In
PQR, PD
2] 32 units
PQR have integral values, with at least
PQR is 240 sq. units, then semiperimeter of
3] 31 units
PQR can be:
4] 36 units
QR and QR = 2RD.
PQR is an isosceles triangle.
Then either PR = QR = 26 or QR = 26
If QR = 26
But the length of PR =
PD = will not be an integer number.
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PR = PQ = 26
(PD)2 + (DR)2 = (26)2 = 676
and PD x DR = 240
PD + DR = 34
PD = 10 and DR = 24 or
semiperimeter =
(a + b + c)
=
(26 + 26 + 20) = 36 or
(26 + 26 + 48) = 50.
PD = 24 and DR = 10.
Hence, [4].
Alternatively,
After (i), consider the options.
From each option, we get the semiperimeter(s) and third side of the triangle and using the formula ;
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where a, b, c are the sides of the triangle, we can check whether the area is 240 or not.
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3. Sk = {(x, fk(x)); where x is a real number}; k = 1, 2, ..., n.
The function fk(x) is defined as fk(x) = xk+2 + 2yxk + xk+1(y + 2). How many pairs of the form (x, fk(x)) are
present in every Sk; where k = 1, 2, ..., n and y is some constant?
1] None 2] 1 or 2
If (x, fk(x)) is in both Sm and Sn (let m > n), then
(x, fk(x)) = (x, fm(x)) = (x, fn(x))
i.e., fm(x) = fn(x).
Also, m = n + p; for some p > 0
xm+2 + 2yxm + xm+1(y + 2)
= xn+2 + 2yxn + xn+1(y + 2)
xp[xn+2 + 2yxn + xn+1(y + 2)]
= xn+2 + 2yxn + xn+1(y + 2)
3]
2 or 3
4]
xpfn(x) = fn(x)
If fn(x) = 0, then xn+2 + 2yxn + xn+1(y + 2) = 0
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3 or 4
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xn[x2 + 2y + x(y + 2)] = 0
x = 0 or (x +2) (x + y) = 0
x = 0 or x = –2 or x = –y
... (i)
If fn(x) 0, then xp = 1 x = 1
... (ii)
Now, if y = 0 or 2 or –1, then
(0, 0), (–2, 0), (1, fk(1)) are the only pairs that are in every Sk.
But if y 0, 2, –1 then one more pair
Hence, [4].
Note: fk(1) = 1 + 2y + (y + 2) = 3y + 3 constant
(–y, fk(–y)) is in every Sk.
fk(–y) = (–y)k+2 + 2y(–y)k + (–y)k+1(y + 2)
= (–y)k+2 – 2(–y)k+1 – (–y)k+2 + 2(–y)k+1 = 0
Verbal DIRECTIONS for question 1: The following question has a paragraph with one italicized word that does not make sense. Choose the most appropriate replacement for that word. 33
1. The late planetary scientist and author Carl Sagan loved to describe humanity as ‘starstuff pondering the stars’, but he didn’t factor in hatred and disgust as possible conclusions. The Sun was glaring today; I found myself glaring back. Amanifally, of course; otherwise it would have blinded me just for looking at it. (1) Metaphorically (2) Euphemistically (3) Paradoxically (4) Ironically
From the second part of the last sentence, we can infer that the author was not actually glaring at the sun, i.e., he was doing so only in the figurative sense. Only ‘metaphorically’ conveys this meaning. Euphemistically’ (meaning ‘inoffensively’), ‘paradoxically’ (meaning ‘seemingly contradictorily’) and ‘ironically’ (meaning ‘incongruously’ or ‘sarcastically’) don’t fit at all in this context. Hence, [1]. DIRECTIONS for question 2: The word at the top of the four options is used in four different ways. Choose the option in which the usage of the word is INCORRECT or INAPPROPRIATE.
‘Principle’ means an accepted rule. This fits the first three usages. The correct term in [4] should be ‘principal’ which means ‘main or important’. Hence, [4].
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2. PRINCIPLE (1) The principle behind the machine’s operation is quite simple. (2) They have agreed to our offer in principle, but the details still need to be worked out. (3) As a matter of principle, she always makes it a point to arrive for all her appointments on time. (4) The principle cities of the country need to be well connected by road and rail.
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Orphans in Axona Orphans in Axona are like mongrels among pedigree hounds. We were near-pariah from the moment my father passed on, and our natures exacerbated our plight. Bird-Dog had always been a free spirit. I say this with some envy, for I never was, nor am. Conventions did not touch her, artifice never seized her. As a child she was drawn to the bow and arrow and loathed the stove and cauldron, much to the dismay of the Old. This was a stroke of luck for me. It meant she could forage food for us. It meant she was as good in the fields as most young men. Bird-Dog was a born provider. As I grew, the disapproval became more and more overt. Conversation would stop at the water well when I
WORD DOSE
approached. Shoulders grew cold when Bird-Dog passed. Noses tilted into the air, the Axona ostracized us as far
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as they could. They could not expel us; we had committed no crime. But they didn’t have to like us, so they didn’t. An excerpt from GRIMUS by Salman Rushdie
MAT CH T HE W O R D S W IT H T H E IR M EA NING S 1. mongrel - (mong-gruhl) (n) 2. pedigree - (ped-i-gree) (adj) 3. pariah - (puh-rahy-uh) (n) 4. exacerbated (ek-sas-er-beyt-ed) (v)
7. artifice - (ahr-tih-fis) (n)
9. loathed - (lowth-ed) (v)
14. expel - (ek-spel) (v)
a. – An outcast
f.
d. – felt intense dislike or disgust for. e. – Force (someone) to leave a place.
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12. overt - (oh-vurt) (adj)
8. seized - (seez-ed) (v)
10. cauldron - (kawl-druhn) (n)
c. – a clever or cunning device or expedient, especially as used to trick or deceive others.
11. forage - (for-ij) (v)
13. ostracized (os-truh-sahyz-ed) (v)
5. plight - (plahyt) (n)
b. – A dangerous, difficult, or otherwise unfortunate situation
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6. conventions (kuhn-ven-shuhns) (n)
– A wide search over an area in order to obtain something, especially food or provisions.
g. – A dog of no definable type or breed, can be a derogatory name for those of mixed heritage. h. – a way in which something is usually done. i.
– excluded from a society or group.
j.
– A pure-bred animal; the
recorded ancestry or lineage of a person or family. k. – done or shown openly; plainly apparent. l.
– a large metal pot with a lid and handle, used for cooking over an open fire.
m. – took hold of suddenly and forcibly. n. – Made (a problem, bad situation, or negative feeling) worse; aggravated.
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35 Communication Skills Builder + Quantitative Skills Builder + Enhance Your English Proficiency
Communication Skills Builder + Quantitative Skills Builder + Enhance Your English Proficiency
A+MBA August 2014
Valid till 31st August 2014
August 2014
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Fill in the form send it along with your DD to : IMS Publications, a division of IMS Learning Resources Pvt. Ltd., E Block, 6th Floor, NCL Bandra Premises, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. Tel. No. : 022-66680005 / 66170000
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A quiz to boost your General Knowledge 1. Union railway budget 2014-15 presented in Lok Sabha on 8 July 2014 by railway minister? a. Nitin Gadkari b. Venkaiah Naidu c. Sadananda Gowda d. Harsh Vardhan 2. Name Google’s first social networking site, which it has decided to shut down from September 30, 2014 as announced on 1 July 2014? a. Blogger b. Google+ c. Orkut d. Google Play 36
3. State Bank of India on 1 July 2014 launched six digital branches across the country as part of its programme to offer next generation banking solutions. What is the name given to these digital branches? a. SBI Digital b. sbi INTOUCH c. SBI tech d. Digi sbi
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4. Which country has recently decided to “Honour ‘Mahatma Gandhi’s memory with Statue’ in front of its Parliament? a. Canada b. UK c. South Africa d. Brazil 5. Novak Djokovic defeated who among the following to lift Wimbledon title 2014? a. Roger Federer b. Andy Murray
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c. Rafael Nadal d. Stanislas Wawrinka
6. As per the recent report by an expert panel headed by former RBI governor C Rangarajan those spending over ` __ a day in rural areas should not be considered poor? a. 47 b. 50 c. 27 d. 32 7. There were three new Supreme Court Judges sworn in on 7 July 2014. What is the total sanctioned strength of judges in Supreme Court? a. 27 b. 49 c. 31 d. 35 8. Which team recently became the first team to reach four semi-finals in a row in the history of FIFA World Cup? a. Netherlands b. Germany c. Brazil d. Argentina 9. The Indian Air Force on Jul 3, 2014 has launched the nation’s first 3D mobile game to encourage the youth to join the Air Force. What is the game called? a. Guardians of the sky b. Sky security c. The Protectors d. Bravo Indians 10. Michelle
Howard
recently
became the first female fourstar admiral in the Navy of which country? a. Germany b. UK c. Canada d. USA
11. Which country has recently decided to issue multiple entry visas for short term stay to Indians? a. Bhutan b. China c. Japan d. Russia 12. Amit Shah was recently selected as the new president of the Bharatiya Janata Party. Who did he succeed? a. Harsh Vardhan b. Rajnath Singh c. Smriti Irani d. Sadananda Gowda 13. The recently released economic survey for 201314 has placed the economic growth in the range of _________ per cent in 201415. a. 5.1 – 5.5 b. 5.5 – 6.0 c. 5.3 – 5.8 d. 5.4 – 5.9 14. Cricketer Lou Vincent who gets a Life Ban for MatchFixing on 1 July 2014 is from which country? a. South Africa b. New Zealand c. Australia d. England
study hour 15. Kamla Beniwal who was transferred to Mizoram on 06 July 2014 was earlier the governor of which state? a. Kerala b. Maharashtra c. Gujarat d. Goa 16. Who won the recently concluded British Grand Prix? a. Lewis Hamilton b. Nico Rosberg c. Sebastian Vettel d. Fernando Alonso 17. Telecom Regulatory Authority of India (TRAI) has recently notified that the minimum broadband speed in the country has been raised to _____ kilo bytes per second (kbps)? a. 500 b. 256 c. 150 d. 512 18. Vishal Sikka, the highest paid IT professional in India, is the newly appointed CEO of which company? a. TCS b. Cognizant c. Infosys d. HCL 19. Which European country has recently passed a law legalising child labour for children above the age of 10? a. Romani b. Bolivia c. Italy d. Portugal
a. Russia b. India c. China d. South Africa
21. _________who recently became the all-time leading scorer in the history of the FIFA World Cup with 16 goals is from which country? a. Lionel Messi b. Cristiano Ronaldo c. Robin van Persie d. Miroslav Klose 22. Which Sri Lankan cricketer has recently announced his retirement from test cricket? a. Mahela Jayawardene b. Dilhara Fernando c. Tillakaratne Dilshan d. Kumar Sangakkara 23. Wroclaw city which has been named 2016 World Book Capital by UNESCO is in which country? a. Japan b. Chile c. Poland d. Malaysia 24. Ashraf Ghani Ahmadzai is all set to be the next president of which country after winning the elections? a. Spain b. Afghanistan c. Serbia d. Egypt 25. Sim Bhullar became first Indianorigin player to join which sport? a. Baseball b. American Football c. Basketball d. Soccer 26. The Bor Wildlife Sanctuary which has become the country’s 47th Tiger Reserve is in which state? a. Maharashtra b. Rajasthan
c. West Bengal d. Gujarat
27. Who won the 2014 Liberty Medal on 30 June 2014? a. Stephen Hawkings b. Malala Yousafzai c. V. S. Naipaul d. Salman Rushdie 28. Currently, with over 3 lakh employees, which company is very close to becoming the world’s second largest tech employer? a. HP b. IBM c. Lenovo d. TCS 29. Who amongst the following is the author of the book ‘Economic Nightmare of India’? a. Morarji Desai b. K. Rajeshwar Rao c. Charan Singh d. Jyoti Basu
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30. Who was formally appointed the first Chairman of the International Cricket Council (ICC) in its Annual Conference held at Melbourne, Australia on 26 June 2014? a. Haroon Lorgat b. Alan Isaac c. N. Srnivasan d. Mustafa Kamal 31. Which is the first company in the private sector in India to post $ 1 billion net profit in a quarter? a. Reliance Industries b. ICICI bank c. Tata Group d. Infosys 32. Nikesh Arora has resigned as the chief business officer of which tech giant to join Japan’s Softbank?
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20. The recently concluded BRICS Summit 2014 has agreed to the formation of the New Development Bank whose primary focus will be development activity in emerging markets. The bank is to be situated in which country?
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a. IBM b. Google Inc. c. Microsoft d. HP
order to trim its newly acquired mobile company? a. Lenovo
b. IBM c. Microsoft d. Google
33. The recent Malaysian Airlines MH17 crash in which 298 were killed, occurred over which country? a. Russia b. China c. Kazakhistan d. Ukraine 34. Which two tech giants have struck a landmark deal to develop more than 100 business apps? a. Apple and Lenovo b. IBM and Google c. Apple and IBM d. Microsoft and Google 35. When is Nelson Mandela International Day celebrated? a. 18th July b. 17th July c. 19th July d. 20th July
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36. India has recently signed an agreement on environmental cooperation with which country? a. China b. Russia c. Japan d. Brazil 37. The New Development Bank, which is to be launched by the BRICS nations, will be based in Shanghai. It will have India at its head for the first six years followed by Brazil and Russia each for ____ years. a. Four b. Five c. Six d. Three 38. Which tech giant has recently announced massive job cuts in
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How to Play Fill in the grid so that every horizontal row, every vertical column and every 3x3 box contains the digits 1-9, without repeating the numbers in the same row, column or box. You can’t change the digits already given in the grid. Every puzzle has one solution. Hint: Don’t fill in numbers at random. While filling a particular square, write numbers 1-9 on a pad and start eliminating those numbers that already appear in the same row, column or 3x3 box.
ANSWERS SuDoKu
GLOBESCAN 1.c 2.c 3.b 4.b 5.a 6.d 7.c 8.b 9.a 10.d 11.c 12.b 13.d 14.b 15.c 16.a 17.d 18.c 19.b 20.c 21.d 22.a 23.c 24.b 25.c 26.a 27.b 28.d 29.c 30.c 31.a 32.b 33.d 34.c 35.a 36.d 37.b 38.c
WORD DOSE
Solution, tips and computer programme at www.sudoku.com
1.g
2.j
3.a
4.n
6.h
7.c 8.m 9.d 10.l
11.f 12.k 13.i 14.e
5.b
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