CC Issue No.80 Apr-May 13

Consultants’ Corner A Bi-Monthly e-Newsletter from

Issue 80 | Apr-May 2013 | Page 1– 16

Accounting and Financial Reporting Standards What’s Inside...

Understanding Management Consultancy

The importance of research in an organisation

Accounting Standards on fixed assets

Fair Valuation

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Consultants’ Corner

Consultants’ Corner is now a bi-monthly edition.

In this Issue

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Understanding Management Consultancy Management Consultancy (MC) as a profession is still emerging in India says Dr. R S Murali.

7

Accounting Standards on fixed assets

9

Fair Valuation

11

An analysis of Ind AS 16 and AS 6 and AS 10 by Bhavana R

An sneak peek into the IFRS 13 by Karthik M V

The importance of research in an organisation Rekha Murali gives an insight on why research is important for an organisation.

6

Are Accountants & CFOs Killing Innovation??

Being a creative CFO

12

Book Review

13

My experience in NCRCL

14

What’s up at NCRCL??

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India Unbound— a review by Karthik M V

Balaji G, Admin Assistant at Chennai Office, shares his experience of working with us.

All events and birthday of the month of April & May

An Exclusive Talk & Quiz Corner

Readers’ Corner If you have any comment/suggestion for the editors, please write to us at cc@ncrcl.com. Your views and comments on articles featured here are also welcome!

From the Editors The new Financial Year has brought a change in Consultants’ Corner as well. CC now has a new editorial team which takes over from the previous editorial team which had set a great launching pad for CC to scale greater heights. With this confidence, the new editorial team starts off seeking the co-operation of all the readers and the writers who have inspired the editors to improve CC with each issue. To make CC more relevant to the working environment, each issue is theme based and will contain articles, news & events and knowledge snippets relevant to the theme.

Considering the fast paced developments in the field of accounting and financial reporting across the globe, the theme for the April-May issue of CC is ‘Accounting & Financial Reporting Standards’.

Accounting and Financial Reporting Standards have been regularly drafted, revised and updated in response to changing times. These standards seek to ensure comparability and consistency in valuation, presentation and reporting of accounting numbers. In this issue, we provide an insight into two accounting standards in two separate articles.

One is the Indian Accounting Standard on Accounting, Measurement and Reporting for Fixed Assets, Ind AS 16, which combines the existing Accounting Standards on Depreciation Accounting (AS-6) and Accounting for Fixed Assets (AS-10). The factors, methodology and the components to consider while accounting fixed assets and their depreciation as per the new Ind AS are presented in this article. The transition from the existing AS to the Ind AS is explained using the 3PT model.

The second standard dealt in this issue is on the Fair Value Measurement (IFRS 13). The equivalent Ind AS has not been prescribed by the Accounting Standards Board yet but this standard would be of significant help in the valuation of assets and liabilities especially in the real estate sector. The need, objective and some important definitions of the standard have been introduced to the reader.

The different valuation techniques prescribed have been briefly discussed to sensitise the reader.

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Consultants’ Corner

Understanding Management Consultancy Management Consultants are called for identifying and investigating problems. MCs in most of the cases need to identify the key issues and causes, as the client can give only the effect or impact. So identification of the real problem is one of the major jobs of the MCs.

The Indian Situation : Management Consultancy (MC) as a profession is still emerging in India. I call it as ‗still emerging‘ as till date even the educated do not seem to understand or appreciate the role and requirement of Management Consultants (MCs). Most of the persons I have spoken to seem to understand ‗Consultants‘ being specialist doctors; for the others MCs are placement agents!

There is a huge responsibility on the part of MCs to bring to light the role and responsibilities of what MCs can do.

A popular joke about Consultants is on the definition of a Consultant: ―a Consultant is one who uses your watch to inform you the time‖ – I find this quite demeaning. I always react with ―if you are that dumb (not to understand what your watch shows) better have one (Consultant)‖. This again reveals the ignorance shrouding the profession of Consulting.

In the various government assignments that I have been involved with, the major issue is with Consulting agreements. The governments seem to be understand only one type of contract or agreement – that related to construction. Almost all the agreements focus on conditionality that are in terms of physical delivery, while most of the Consulting assignments are of intellectual delivery with a report at the given. This focus on physical delivery again arises out of ignorance about the concept and subject of Management Consultancy.

There is no reliable statistics on the size of the Management Consultancy market in India similar to data available for several countries in terms of the volume of consultancy made. Refer box below for Canadian Institute of Management Consultants‘ 2012 Survey on ―Canada‘s 2011 Management Consulting Industry Study.

Regaining ground: Canada’s management consulting market regained momentum in 2010, as strong overall growth more than offset the sudden contraction in 2009.  Industry revenues rebounded to an estimated $9.2 billion in 2010, fractionally above 2008 levels. in real terms,

the revenue change in two years since CMC- Canada’s last industry study translates into 0.6% compound annual growth- in line with real GDP.  Regionally, the distribution of demand is similar to two years ago. Ontario remains the largest market (44%).  Eastern Canada still accounts for an estimated 23%, Quebec (19%) and Atlantic Canada (4%). Collectively, the

western provinces generate approximately one-third of industry revenues: British Columbia (12%), Alberta (14%), Saskatchewan (2%), Manitoba (3%) and the Territories (1%).  Among the major service lines, information technology continues to be the largest source of consulting revenues,

almost equalling all others combined. http://www.cmc-canada.ca/Media/documents/2011CMCIndustryStudyExecSummary.pdf) Contd on next page...

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Consultants’ Corner This type of analytical information is not available in India. Some of the newspaper and journal articles do provide some information of and on, but no structured information is available.

Defining Management Consultancy ―The service provided to business, public and other undertakings by an independent and qualified person or persons in identifying and investigating problems concerned with policy, organization, procedures and methods, recommending appropriate action and helping to implement those recommendations‖ is the definition of Management Consultancy by ICMCI (International Council of Management Consulting Institutes).

It may not be out of place to quote Rudyard Kipling, who said: ―I keep six honest serving-men (They taught me all I knew) Their names are What and Why and When And How and Where and Who‖

And how does one do this in an independent way?

Well, supported by one‘s qualification and experience!

Independence is a very important ingredient for any professional and more so for MCs. Independence enables the MCs to express unbiased opinion about the issues that have been taken up for investigation. Also a qualified professional, with his/her knowledge/training/ certification is expected to provide required solution to the problem identified. Qualification here is given a stress as the MC‘s quality needs to be at a level where the advice given can be relied upon.

The solution that is provided by the MCs not only should to be appropriate but also implementable. (Too often there is a complaint that the MC‘s reports are too theoretical and not implementable). Not only should the MCs recommend the solution and course of action, but also be able to implement the same. Implementation is the real test of the quality of Consultancy.

This possibly is one of the better models or approaches for a Management Consultant to be successful in his/her assignments. However, applying Kipling‘s principles to the definition of MC:  Why: because there is need (request from the client) irrespective of where the call comes from: business, public and other undertakings  When: services are provided to when asked for  Who: independent and qualified person(s)  What: identifying and investigating problems  Where: In the areas relating to: organization, procedures and methods

policy,

 How: Solving by providing: recommending appropriate action and helping to implement those recommendations Thus MC can be used by any organization, institution or individual, including governments. The MCs are called for identifying and investigating problems. MCs in most of the cases need to identify the key issues and causes, as the client can give only the effect or impact. So identification of the real problem is one of the major jobs of the MCs. Once the problem is identified, the MCs have to start investigating the real causes of the problem.

The real causes (for problems) may be in relation to policy or organization (structure, etc.) or in procedure and methods (process). The MCs‘ ability to identify the problems and investigate the same would decide his/her success.

Characteristics of Consultants In one of the articles on personality traits of successful Consultants, the following have been identified key characteristics of a good Consultant (http:// www.techrepublic.com/blog/project-management/10personality-traits-of-a-highly-effective-independentconsultant/212 )

#1: Confident: A confident Consultant is one who has clarity on what he/she has to do. This is in relation to both knowledge and approach towards addressing the issues in Consulting.

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You can't lead the people if you don't love the people. You can't save the people if you don't serve the people.

- Cornel West

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Consultants’ Corner

#2: Problem solver: Wherever there is an assignment for a Consultant, there is at least one problem to solve.

Consultant is called only when there is a problem or it is likely there is a problem.

Also he/she should not over or underestimate any quantitative computations that may be part of the assignment, but should present a realistic picture to the client.

#3: Motivated: The energy levels of a Consultant need

Skill-sets of Consultants

to be high; otherwise the client will not feel inclined to share data. Also, Consultant should be sure what he/she would achieve by completing the assignment successfully. The ‗achievement-motivation‘ is the key to any successful Consultancy delivery.

While the ten personal traits or characteristics a Consultant should possess are important for Consultancy engagement and delivery, a Consultant should also develop certain key skill-sets. These skill-sets would only see him/her grow higher up on the career graph.

#4:

#1:

Obsessive: While the obsession needs no exaggeration, every Consultant should feel passionate towards his/her assignment. Unless he/she is fully involved in the assignment and is able to go deep into it, the nuances of the issues under consideration will not be understood by the Consultant.

#5:

Lateral thinker: The solutions and approaches

related to an assignment cannot come only through logical thinking. In fact successful Consultants use their right brain and gut more than routine thinking.

#6: Personable: Consultant should never get into ‗ego‘ related problems at the client‘s place. This is where the focus on the deliverables is more important than considering himself/herself as the hero of the assignment. Such wrong values could land the Consultant in a lot of bottlenecks.

#7:

Flexible: Flexibility is in terms of his/her thinking, ability to understand yet another point of view including the opposing standpoints, work timings, etc. However flexibility should not affect ethics, professionalism or values associated with the engagement.

#8: Assertive: Assertiveness for a Consultant is based on his/her clarity of thought. Whether the situation is related to flow of data from the client or it is related to value judgment he/she has to make in the course of the assignment, the Consultant should be assertive in order to get data or express his/her opinion, as the case may be.

#9:

Honest: Honesty to himself/her self by assuring quality of the delivery and honesty to the client in terms of delivering what the client requires. Consultant should be able to be honest even if the findings from a study for the client may not be what the client wants to hear.

#10:

Realistic: Consultant should be able to see beyond the obvious. He/she should be able to filter the unwanted and the irrelevant information, ideas, influences, emotions that come across during the assignment and understand the reality.

Knowledge: Prof.

Prahlad called it core competency. The subject knowledge expertise is the key to successful Consulting. Qualification is only one part of it.

Whether one gets the ex p e rt i se through qualification or practical training is not the issue; unless one has the expertise he/she is not required in the field of Consulting. Consulting is true knowledge business and Consul t ant s hav e t o develop their ‗intellectual property‘ over a period of time through proper accretion to their knowledge. Consultants need to understand that this is their asset.

#2:

Application: Knowledge without application is an utter waste in the field of Consultancy. This is the reason why many knowledgeable persons have failed in Consultancy. Consultancy is related to how one is able to use his/her knowledge for the benefit of the client.

This applied knowledge is the core asset for Consultants. A good Consultant over a period of time develops one‘s own model of Consultancy approaches and methods; a better Consultant shares the same with the community. This develops into the intellectual property of the Consultant. More the application of knowledge through structured methods, its application and success, more one increases the value of one‘s intellectual property. This is extremely important in the field of Management Consultancy.

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It is never too late to be what you might have been.

- George Eliot

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Consultants’ Corner #3: Documentation: Strength of a Consultant‘s service delivery lies in the correctness and completeness of the documentation in any assignment. Documentation could be in relation to the: administrative aspects, project management aspect or technical aspects of the Consultancy assignment. Unless these are meticulously maintained, Consultants cannot ensure proper service delivery or even understand the progress. The Consultant should be able to document the lessons learnt from every assignment and if possible develop case studies based on the key issues that arise and that could be useful for the client/Consultant community.

#4:

Research: The sustainability of the Consulting profession lies with research. Research and publications have always been focus areas for development of Consultancy. Best of the Consultants researched and published. With increasing complications, right from macro-governance to micro-management, and influenced by increasing cross-border business, researching current issues has become a necessity more than priority for Consultants. Consultants should equip themselves with various approaches and keep publishing their view-points.

#5:

Training: Dissemination results in knowledge transfer. This knowledge transfer could happen at three levels: in the Consultant‘s organization, in clients‘ organizations and in other institutions. The last one could include: external seminars/training, presentation in conferences, and more important involving in academic programmes of universities or academic institutions.

These training/teaching initiatives help the Consultant test his/her ideas in the field apart from making academicians realize industry realities. After all, quality Consultants are created incidentally.

Dr. R S Murali Can be reached at muralirs@ncrcl.com

Are Accountants & CFOs Killing Innovation??

The April edition of the Indian Management had an interesting article. It sought to answer the question whether the accountants and CFOs do kill innovation in the name of Accounting Conservatism. INSEAD professor Gilles Hilary had made a case in his research paper which said an organisation with high degree of accounting conservatism killed innovation because one of the principles of accounting conservatism recognises loss as soon as it is incurred. The negative effects on innovation activities are more pronounced when the pressure from the short term investors are greater.

What should the CFO or the Finance Executive do?? Is the CFO a killer of innovation? Hal Gregersen, Senior Affiliate Professor at INSEAD quotes an example of Mike Collins, founder of venture capital firm Big Idea Group (BIG). Mike Collins asked his CFO to ensure that he makes wise financial choices for the company. To improve the CFO creative skills he was put in midst of people who think differently and within the next twelve months his creative skills had gone up by 35% and when he presented the numbers he presented it strategically and helped the company go in a different direction. In case of organisations which did not have a diverse creative group like that of BIG,

Gregersen says that the CFO should spend five minutes on writing down four-five questions about the problem and ask three- four people outside the industry, in different geographies if possible and talk to them about their perspective on the problem. This would give them a different and better perspective about the problem than they had initially thought of.

The CFO and Accountants with their proficiency on numbers and accounting can significantly add value to innovation by having a strategic view about the Innovation expenditure numbers and interpreting the expenditure in a way that helps continuous innovation of the organisation.

If you have not often felt the joy of doing a kind act, you have neglected much, and most of all yourself.

- A. Neilen

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Consultants’ Corner

Accounting Standards on fixed assets This article focuses on the differences between the existing Accounting Standards and the converged Ind AS and the key issues in convergence.

Introduction:

Revaluation Model:

India has already started treading on the path towards converging to IFRS. The Ministry of Company Affairs has come out with 39 IND AS which are aligned with IFRS principles.

Ind AS 16 recognizes two separate models – Cost model and Revaluation model. An entity shall choose either of these as its accounting policy.

Ind AS 16 on Property, Plant and Equipment which is the Indian counterpart of IAS 16 deals with accounting, measurement and reporting for fixed assets. The existing standards AS-6 – Depreciation Accounting, AS-10 Accounting for Fixed Assets provide governing provisions on this subject. This article focuses on the differences between the existing Accounting Standards and the converged Ind AS and the key issues in convergence.

Is Ind AS 16 is AS 10+6 or is there another formula? Let us explore!!

New Concepts in Ind AS 16: Component approach: Ind AS 16 requires accounting based on component approach. Under this approach, each major part of an item of property plant and equipment with a cost that is significant in relation to the total cost of the item shall be depreciated separately.

Factors to identify a component:  Shut down or major repairs and maintenance cost: Items that require shut down or replacement can be identified as a separate component  Useful life of major component: If the useful life of the component is significantly different from that of main asset, it may be appropriate to classify it as a separate component

Cost model requires that after recognition as an asset, an item of property, plant and equipment shall be carried at its cost less any accumulated depreciation and any accumulated impairment losses.

Revaluation model requires that after recognition as an asset, an item of property, plant and equipment whose fair value can be measured reliably shall be carried at a revalued amount, being its fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations shall be made with sufficient regularity to ensure that the carrying amount does not differ materially from that which would be determined using fair value at the end of the reporting period. It also provides that if an item of property, plant and equipment is revalued, the entire class of property, plant and equipment to which that asset belongs shall be revalued.

Roadmap to convergence: ―A decade of almost continuous change in financial reporting should be followed by a period of relative calm‖.

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Dreams are the touchstones of our character.

- Henry David Thoreau

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Consultants’ Corner The roadmap to convergence, which is dotted with many milestones, should be smooth and clear. These milestones are explained using the 3PT Model – Policies, Process, People and Technology.

Policy:

 Hiring of consultants to enable smooth transition and correct accounting – Even after convergence, there may be a few areas where expert opinions/ consultancy would be required. In such a situation, hiring of consultants specializing in these areas will make the transition smooth and effective.

 Choice of Cost Model or Revaluation Model – Every organization must decide on this as this is an accounting policy decision to be made and sh a l l be adopted consistently.  Determination of com ponents and estimation of their useful lives – Identification of com ponents and estimation of their useful lives is a decision to be made by Management, taking into account various other factors and some amount of judgment.

3 PT Model

Process:  Updation of Fixed Asset Register with component details – Once components are identified, a change in existing process would be required wherein the Fixed Asset Register will need updation on component details as well.  Synchronizing with changes to be introduced in DTC, SEBI Guidelines and various other regulations – Even after converging with Ind AS 16, organizations should keep a watch on changes made in other regulations and should align the accounting treatment accordingly.

Technology:  Accounting software to distinguish fixed assets based on main category and components. Main codes and sub codes to be designed and incorporated into the accounting software – Changes need to be made in the accounting software to include codes of components. Chart of Accounts will need modifications accordingly. For instance, building will require break-up into components such as ceiling, interiors, elevators etc.

People:  Sensitization of people on new concepts in Ind AS 16 – Training the staff through workshops must be arranged wherein the people will be sensitized to the need and technicalities of the new issues.

Ms. R Bhavana Can be reached at bhavana@ncrcl.com

When you listen, it's amazing what you can learn. When you act on what you've learned, it's amazing what you can change.

- Audrey McLaughlin

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Consultants’ Corner

Fair Valuation — IFRS 13

The objective of Fair Value Measurement standard is to enable fair valuation of both assets and liabilities and to ensure better transparency by giving out disclosures.

I

nternational Financial Reporting Standards 13 (IFRS 13) is one of the recent additions to the IFRS standards. It was released on 12th May 2011 by the International Accounting Standards Board. This standard was drafted as there was no other standard which exclusively dealt with the measurement of assets and liabilities at Fair Value. Though IFRS 13 has been accepted in many countries, the Indian Accounting Standards Board is still considering the relevance and the extent of its applicability in Indian scenario.

Before we get into the details of the calculation and valuation techniques let‘s see the reasons for having a separate IFRS for valuation alone.  Other IFRS did not articulate ‗how to calculate Fair Value‘  Reduce complexity and inconsistency on measuring Fair Value

Applicability of IFRS 13 1.

Where other IFRS permit Fair Value Measurement

2. Where disclosure requirements of other IFRS requires Fair Value measurement

What is Fair Value?

IFRS 13 defines Fair Value thus: ―The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”

Explanation of the terms of the definition: 1. Price: Value to be received on sale of asset or paid on transfer of liability 2. Transaction: for determining the fair value the transaction should take place either at -

 Provide better disclosures on valuation techniques  Convergence with US GAAP The makers of IFRS 13 after analysing the need for a separate standard for Fair Valuation set the following objectives that the standard would serve.

OR

1. Estimation of Fair Value of Assets as well as Liabilities 2. A single framework for measuring Fair Value – so that it could avoid inconsistencies in valuation 3. Disclosures about Fair Value measurement – to ensure transparency and comparability in valuation

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To think creatively, we must be able to look afresh at what we normally take for granted.

- George Kneller

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Consultants’ Corner 3. Market participants: the participants have the following characteristics – a. they are independent of each other b. they are knowledgeable c. they have the ability to enter into transaction d. they are motivated to enter into a transaction and not forced Techniques for calculating Fair Value IFRS 13 prescribed three classes of valuation techniques viz.,

Practical issues in implementing IFRS 13

2. Additional disclosure requirements to show the fair value calculation could be a deterrent in using this standard.

Though the above factors could limit the usage and applicability of fair valuation of assets and liabilities, the standard‘s use with respect to real estate assets is of immense value and Indian Accounting Standards Board which has not adopted this standard as on date, in the coming months should consider the potential of this standard in valuation of land and other real estate assets as real estate valuation currently made are quite opaque and sometimes even illicit*. (*http://in.reuters.com/article/2012/11/20/indiablackmoney-realestate-idINDEE8AJ0GB20121120)

1. Judging the value of asset based on highest and best use would not be correct always. Eg: Value of land could be different for a manufacturing company and to a real estate company but IFRS 13 prescribes valuation of land based on the highest and best use for all. Hence the value of the land would not change if it was held by the manufacturer or the Real Estate company.

2. The valuation may not be same for assets which do not have readily available markets, since the valuation is based on a lot of assumptions which could change from person to person.

Mr. Karthik M V Can be reached at karthikmv@ncrcl.com

We must begin thinking like a river if we are to leave a legacy of beauty and life for future generations.

- David Brower

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Consultants’ Corner

The importance of research in an Organisation A good approach, right attitude and behaviour of the manager with proper systems in place would require sound research to understand and improve the system.

I

t is tempting to believe that if an organisation is running smoothly with good profits and an excellent team of professionals, it will continue to function in the same capacity. But sadly that is not the case. Constant enhancement and development of the business and the team are essential to surpass others in the market and have a competitive edge. This is largely possible through research.

Research is not restricted only to medical and science fields but is an important aspect of any organisation – big or small. A company consists of people and it is this team that steers the course of the business. Businesses succeed or fail based on the decisions taken by these people in the organisation. At the same time, most managers also need access to facts and figures about the organisation‘s performance, markets, financial aspects to continually enhance the business and the quality of their products.

All the above mentioned research areas would involve the people directly as they are the ones who initiate all processes. Research in each of these areas can bring about meaningful and relevant implementation of policies and procedures for positive change within the organisation. Performance management would require the managers to play a crucial role as facilitator and mentor to achieve excellent results. Besides motivating and encouraging the team, a manager needs to lead from the front.

Many organisations in industries like pharmaceuticals have a full fledged research and development division with quality control to ensure quality of product and invention of new products.

A proper understanding of the employees and healthy interaction would be crucial factors for a manager to enhance performance of the individuals in the team. A good approach, right attitude and behaviour of the manager with proper systems in place would require sound research to understand and improve the system.

But what happens in SMEs and other service sectors like NGOs and business consultancy? In such a scenario, research is an all time must for continuous upgrading of skills and knowledge of employees for quality deliverables.

Besides this, the deliverables by itself would need a vast amount of research to satisfy the requirements of clients.

In-house research is needed in areas of professional and self development of the employees through training and mentoring. Organisational research and analysis would also be required for assessment of performance management, process reengineering, departmental assessment and well-being of employees.

Process reengineering involves a detailed study of the existing processes and systems of the departments, inter departments and also between units.

A careful study would reveal the gaps existing in the system and suitable remedial or innovative solutions can be arrived at through analysis. It would eliminate repetitive and waste activities with introduction of better and enhanced processes.

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Forgiveness does not change the past, but it does enlarge the future.

- Paul Boese

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Consultants’ Corner Departmental assessment would involve understanding the purpose and processes of the department. If done by the department team, it provides a feeling of ownership and brings about a sense of responsibility.

The team would be able to identify what works well for them and what are the exercises that can be eliminated.

With regard to the staff, a properly conducted research can reveal crucial information on their satisfaction quotient, the difficulties encountered by them and how the issues pertaining to relationships at the workplace can be tackled.

An analysis of the results would enable the management to bring about changes for the overall effective functioning of the organisation and its employees. The employees can be mentored and trained based on the needs. This would facilitate personal as well as professional development enhancing overall organisational performance.

The facts and figures of operations through proper accounting and financial systems would help in taking decisions on the feasibility and growth of the organisation.

Ultimately, it is research that helps sustain a company. It would enable the management in decision making through careful analysis of the research output for the benefit of the organisation.

Many organisations have been unable to sustain themselves and have fallen simply because of neglecting research and not keeping abreast of market trends and innovations. Research is important to survive in business.

Ms. Rekha Murali Can be reached at rekha@ncrcl.com

Besides research on the systems, an organisation requires research to improve their marketing and sales performance.

Book Review

India Unbound Author: Gurcharan Das This book is a journey. A journey in a steam driven train.

It‘s slow yet meaningful. It‘s noisy yet thoughtful. It‘s old yet relevant. India Unbound is a recall of economic environment from the Independent India to the Liberalised India. It recalls various junctions like the Socialism as imagined by Nehru in the 50s and 60s, followed up by aggressive perusal of the same by Indira Gandhi during the 70s and 80s and the doomsday during the late 80s and the year of new Independence, as the author calls it,1991. The rise of middle class, capitalism and the near death of socialism is presented beautifully in this book. Little wonder it was a best seller.

First things first, it is a non- fiction book and hence the reader needs patience to get into the groove. It took a long time for me to read!!! The pace sometimes dips but nevertheless is kept interesting. The level of detail and reasoning is just exceptional and one can feel that the conclusions drawn by him seems quite right. Personally, I would love to hear or see the contradictory arguments on the conclusions drawn by the author!

Gurcharanis an eternal capitalist and argues, and rightly too it seems, that capitalism and entrepreneurship can actually alleviate India from hunger and poverty and achieve the inclusive development that all of us are in search of; a fact that politicians and socialists staunchly disagree with.

Socialism and state control, he says, has robbed the country of an opportunity to develop and grow. He quotes numerous policies of the failed License Raj system set up by the Government to drive this point. He then describes the rise of some of the best entrepreneurs in India like Dhirubhai Ambani, Subhash Chandra and gives us insights on how Indians had the entrepreneurial hunger and vision to grow and expand even during the License Raj days. The later stages of the book pictures the scene after the 1991 reforms, its associated political drama, the rising middle class and their power & zeal to rise from the bureaucratic, mundane, cosy salaried jobs to the business class.

The author has given his opinion, with reasoning, on various issues like socialism, capitalism, competition, liberalisation, foreign capital etc., peppered it with facts and sometimes with sarcasm and humour.

It is a voluminous book with no story but FACTS, no hero but REASONING and in the end no climax but HOPE.A hope that India could soon reach the position it deserves in the World Economy.

Mr. Karthik M V Can be reached at karthikmv@ncrcl.com

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Consultants’ Corner

My experience in NCRCL— Balaji G As some of you might be aware, I have completed

I have also had the privilege of travelling to the

ten years of service at NCRCL. At this juncture, I

Bangalore office. I enjoy myself during the festi-

thought of sharing some of my experiences here

val seasons arranging for poojas, especially

during this long tenure.

Saraswathi Pooja and Deepavali. I have good friends in NCR who help me a great deal in dis-

I joined NCRCL on 16

th

April 2003 even when the

charging my duties.

company was quite new to the industry. Ten years have gone by and I feel proud having

With respect to my personal life, I got married

achieved this milestone. In times when it is fash-

after joining NCRCL and I have a wonderful girl

ionable to hop jobs for various reasons, it feels

child. This company has been a part in my per-

good to stick on to one company for many years.

sonal growth as well.

Though I had very little experience when I joined here, all these years have been a great

I have so many things to share. But I am cutting

learning experience to me. I have learnt all the

short with this and I am really grateful to

nuances involved in the office administration.

Dr.R.S. Murali, Mr.C.S. Suresh, Mr.Ashok Rao and

From being a mere assistant who goes to bank

all the staff of NCRCL and NCR for providing all

and other government offices,

I have learnt

the support to discharge my duties effectively. My

many things inside the office with respect to dis-

special thanks to Dr.R.S. Murali who has been my

cipline, punctuality, administrative works like

mentor both in my career and my personal life.

printing,

scanning,

preparing

project

docu-

ments, binding them, submitting them to the

Thank you all for all the support and I would

clients, co-coordinating with some of the clients

like to extend this for many more years to come.

and various related activities.

I was also involved in maintaining the accounts of some of the trusts associated with NCRCL. I

Mr. Balaji G Can be reached at balaji@ncrcl.com

would like to thank all of them for helping me in this regard. I have also assisted the accounts department during the audit period and during the various meetings like Board Meetings, AGM etc. With respect to administrative work, I continue to be involved in ticket booking and room bookings for personnel travelling from Bangalore.

The education of attention would be an education par excellence.

- William James

14

Consultants’ Corner

What’s up at NCRCL?

Krithiga Priyadarshini and R Bhavana at Ethiraj College on 13th of March 2013 on the occasion of Inter-college Debate competition as a part of Consumer Day

Dr. R S Murali has been elected as the Vice President of Institute of Management Consultants of India!!

CONGRATULATIONS Sir, it is indeed a proud moment for all of us !!!

Professional Achievements for the year 2013 R Bhavana is now a qualified Company Secretary having cleared all the groups in the first attempt within a span of two years.

Vishnu Prasaad has cleared his cost accountancy and is now a qualified Cost Accountant.

Sandya Manohar and Vinod Murali cleared one group of CA Final R S Murali and Kishore completed a certificate course in Forensic Accounting and Fraud.

Namith & Lakshmi Narayanan cleared one group of Costing (Inter) in June 2012 exams.

Congratulations and wish you more success in all your professional achievements.

Birthday wishes

Sandya Manohar - 15th Apr

Lakshminarayanan M N - 21st April

Happy Married Life!!!

Roopa Kamath exchanged marital vows with Venkatesh on 29th Apr 2013 Team NCRCL wishes the couple a blissful married life forever

Kishore D - 28th April Praveena K R - 4th May Balaji.G - 25th May

15

Consultants’ Corner

An Exclusive Talk M V Ananthakrishna BE (ECE), MBA Univ. of Michigan, Ann Arbor, USA, CMC, FIMC. CMC (Certified Management Consultant) & FIMC (Fellow of Institute of Management Consultants of India) are international credentials of a professional management consultant, awarded in accordance with global standards of the International Council of Management Consulting Institutes (ICMCI).

Working as Principal Consultant Born on 15th February Email: ananth.mvak@ncrcl.com Phone No: +91 9840096486 CC. The meaning of your name.

Ananth: endless CC. Nickname.

Ananth: Ananth CC. Your dream job.

Ananth: Job involving Consulting, Research and Teaching CC Your first impression of NCRCL. Ananth: I want to work inNCRCL. CC. What personal/emotional characteristic of yours do you want to change?

Ananth: I need to be more circumspect rather than tell it as it is.

CC. Money or job satisfaction?

Ananth:Job satisfaction.

CC. Your Stress buster.

Ananth: Classical Music, Meditation CC. Do you have a small circle of close friends, rather than a large number of friends?

Ananth: Small circle of close friends and wide circle of acquaintances

CC. What do you most like about a person?

Ananth: Transparency in thought, word and deed.

CC. What do you most hate in a person?

Ananth: The Opacity in thought word and deed.

CC. Team work vs Individual work – your comments.

Ananth: A team cannot exist without individuals but an individual can accomplish a lot more in a team. So team work with committed individual contributors is the best of both worlds.

CC. Do you make efforts to get others to laugh and smile?

Ananth: Yes CC. Your heart rules your head or your head rules your heart?

Ananth:My heart is tempered by my head. Both play an equal role in my decisions.

CC. What kind of special talent do you have?

Ananth: Ability to absorb new subjects very quickly and study subjects in great depth.

CC. What are your hobbies?

Ananth: Listening to classical music, reading about latest technology, Playing Veena which I used to do and plan to take up again.

1. What factor does the ‗glass-ceiling index‘ computed by the Economist magazine measure? Which country ranks no 1 in it?

2. Huawei has decided to offer ‗phantom shares‘ to its employees in India. What are ‗phantom shares‘?

3. FM has announced a Women‘s bank in India. Which country created First Women Bank Ltd, way back in 1989?

4. Name this Indian educationist who has received the first TED Prize of 1 Mn $ for his ‗Hole in the wall‘ experiment in Delhi slums.

5. Who has launched a music label to promote quality music under the name of LM Music?

Send in your answers to the editor at cc@ncrcl.com Participants with the correct entry will be awarded with a Recognition Certificate by NCRCL. Last issue answers. 1) Mexico, Indonesia, Nigeria, Turkey , 2) Because the Kids were learning Hindi and not Bangla , 3)Shemaroo entertainment , 4) Parle G , 5) Ten Wickets Kumble took in Delhi test against Pakistan

Our Mission is to apply our professional capabilities with a holistic approach for the happiness of clients, through values and social commitment.

Editorial Board

Contact

Mr. C S Suresh, Executive Director Mr. Ashok Rao, Executive Director

Editors Mr. Kishore D, Consultant Mr. Karthik M V, Consultant

Published by NCR Consultants Limited, Chennai & Bangalore

Email to cc@ncrcl.com

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