Domination Oct 2013 by Domination, DoMS IIT Roorkee

VOLUME-III ISSUE-08

October 2013

DOMINATION

NEWSLETTER FROM DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Editorial

……………………………………………………… ……………………………………………………… Dear Readers, It's November, the month of celebration and enjoyment!!! Amidst this jubilation and excitement we present you another edition of the Domination. We hope you would find it interesting. This month‟s edition features articles from a diverse range of topics. The cover story for this edition is a very interesting topic “Being an Entrepreneur” by Ms.Shifia Mittal and Mr. Vaibhav Shrivastava. The authors perfectly articulated the pathway of an entrepreneur and what makes their work and life interesting. Any business is successful because of its idea and an entrepreneur lives this idea to make it work. We have

perspective article on "Online Voting System in India" by Mr. Abhinav Kumar Singh and Mr. Nilaya Shanker. We also have another topic which depicts the challenges faced by Indian economy and measures to strengthen it. “Measures to Strengthen Indian Economy” is aptly written article by Mr. Agam Gupta which talks about some major challenges faced by Indian Economy and how India can insulate itself from the whim of global finance crisis.

alumnus of DoMS. Additionally, we have success story column with Mrs. Prerna Gupta, renowned female entrepreneur. This edition contains three summit details conducted in the department: Abhyudaya – Operations Summit, Manthan – Finance Summit and Vihan – HR Summit. Your suggestions, reviews and comments are always welcome to improve our efforts. With this hope we wish you a very Happy Reading and Happy Diwali !!!

Domination has always welcomed creative things and this edition has another round of quiz section for quiz maniacs and also an insightful poem by Mr. Mehul Lala. It also contains interview of the Mr. Himanshu Khare, a 2009 batch

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Contents

……………………………………………………… Being an Entrepreneur

Faculty Adviser Dr. R. L. Dhar

Cover Story Perspective

Team DoMination Apurva Sood Arun George

10 Qutopia

Gaurav Mittal Mehul Lala Nilaya Shankar Chlorophyll

Rohan Krishnan

Sudeshna Naskar Vignesh B

Designing Team Success Story

DoMS da Evince

Ashish Kumar Jaiswal Dhruv Kadian Rakesh Ranjan Kumar

DEPARTMENT OF MANAGEMENT STUDIES INDIAN INSTITUTE OF TECHNOLOGY ROORKEE

20Measures to Strengthen Indian Economy 21 Spotlight

Roorkee- 247 667, India Tel: +91-1332-285014, 285617 Fax: +91-1332-285565 Email: domination.doms.iitr@gmail.com 25 Website: www.iitr.ac.in/departments/DM/Pages/ Index.html

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Cover Story ………………………………………………………

Being an Entrepreneur “A person who organizes and manages any enterprise, especially a business, usually with considerable initiative and risk.”

“Behind any manifestation is not an individual or a finite collective, but emptiness”. Do you agree? Well an entrepreneur definitely would. The dictionary meaning of an Entrepreneur says that „an Entrepreneur is an individual, who rather than working as an employee, runs a business and assumes all the risks and rewards of that venture, idea, good or service offered for sale. The entrepreneur is commonly seen as a business leader, an innovator of new ideas and business processes‟. The two most

important words that define an entrepreneur are initiative and risk. The amusing fact is that for an entrepreneur what matters is the presence of one (initiative) and the acknowledgement and attempt for the existence of the other (risk).

“Behind any manifestation is not an individual or a finite collective, but

The Beginning

The journey of an Entrepreneur starts from the need of starting a venture. The need stems from the situations. The situation can be family hardships and rejections everywhere or it can be a desire to create a change. Sometimes something makes an impact in the lives of an individual and they get a passion for entrepreneurship. Another motivation factor is the desire to be one‟s own boss.

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Being an Entrepreneur ……………………………………………………… The Idea At the heart of any successful business is a great idea. The source of that great idea can be an inspiration from any source -- puzzles, driving passions and even the subconscious mind. Ideas for start-ups often begin with the problems that need to be solved. But, idea is just 1% of the journey, 99% is the execution. “Ideas Are Abundant; Drive Isn't.” Entrepreneurs are people who live in the future and are ahead of their time. They understand and closely observe the world around them, and are able to see the unot-soobvious. They are the ones who spot and jot down „what is missing‟ in the world. This is the genesis of their idea.

cycle is prototyping, i.e. development of their idea into a workable and demonstrable object. This could be one of the longest phases too, as it is driven by sheer desire for perfection. Time and again, experts have stressed that more the efforts put in this particular phase, more are the chances for the success of the venture.

To the Prototyping Almost all the entrepreneurs possess some basic characteristics. They have the courage and the ability to act in the face of fear. An entrepreneur can be a little bit crazy but not irrational or self destructing. They are like artists who create a company to express themselves. But they have an underlined passion to add to the world. They are often autodidactic learners. They are optimistic and have the capacity to face rejections. And all of these are put to test when they are in their second phase of prototyping. One of the most crucial and manding phase of an entrepreneur‟s life

While in this phase, failure becomes a common word. But as it is said, „One fails to succeed‟ and not the other way round. Therefore, iterating over the prototype continues until it passes the test of self satisfaction for the entrepreneur. Thereafter follows the demonstration of the prototype to the relevant stakeholders. In many cases, this leads to further iteration and the final result is the product/ service design that makes the creator/designer as well as the future users and stakeholders, smile. Joining Hands Though the society wrongly perceives the entrepreneurs as money minded, isolated

people, sitting and working aloof from the rest of the world, the reality is sharply contrasting. There have been examples of the likes of Michael Dell of Dell Inc., and Mark Zuckerberg of Facebook Inc. and not to forget Bill Gates of Microsoft who have single handedly steered the ship of their organisations. Entrepreneurs always join hands with a number of others while they are on their mission to realise there dream or, in some case, even create history. The support could be in form of friends, spouse or family. The examples of Michael Dell (Family), Narayan Murthy of Infosys (Friends and Spouse) and Mark Zuckerberg (Friends) go to prove it. Finding a co-founder may not be the easiest task but is surely a much needed one. Steve Jobs from Apple and the Bansals from Flipkart can vouch for it. Funding/Seeding Though an entrepreneur, in most of the cases, is not driven by money but he certainly needs a capital to invest into dreams. The

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Being an Entrepreneur ………………………………………………………

most obvious and famous choices when he tries to raise funds are friends and family. Further, the option of borrowing is available through Banks, private investors, Angel investors etc. Funding for the venture is subject to the trust that is invested into the idea before any money is invested. Therefore, in the history of many start-ups this has been one of the most enduring phases of the entrepreneur‟s life cycle. As they need to convince not themselves but others, they experience their black days and deal with it. They believe black days are important and there are many. There are mainly two types of black days: 1. The one with all despair and no hope. 2. There is some hope. In both the times they just look back at their last 24 hrs and realize that the universe is about to change. Even after a lot of rejections they ask themselves „Is there something more to it?‟. Entrepreneurs learn from their mistakes.

Even when everybody says that their idea is irrational and asks them to give it up they go all the way to the absolute point where there is no hope of being successful and then they throw it away and stay happy about giving their 100%. Entrepreneurs believe in E Joseph Crossman‟s quote “Obstructions are things a person sees when he takes his eyes off his goal.” Into Business & Make it large A ship is safe in the harbour but being in harbour was not what ships were built for. An entrepreneur believes in taking it to the shore. They do not settle even when they are into business but constantly plan for the future. The most successful entrepreneur is the one who envisions the future and takes risk at appropriate times. Why do they take risks even after they‟re in the business? Two reasons: 1. An entrepreneur believes that he/she will change the world with something totally new.

And now with continued innovation. 2. For a zest to better the already done. In fact to look for the best outcomes possible. What do they get? After all the ideas, struggle, risks, hard-work, failure what a successful entrepreneur gets? It is the life, the life of an Entrepreneur; a life which is amazing, consuming, crazy and exciting; a life in which one has had bad and good days; a life with satisfaction, of creating something out of nothing; a life where you allowed yourself to create a dream, with no limitation and a feeling that you accomplished that dream. For them, Entrepreneurship is an essential quality of life not merely of business. John Quincy Adams has very rightly said, “ If your actions inspire others to dream more, learn more, do more and become more, you are a leader” and this the life of an Entrepreneur.

ByMs. Shifia Mittal DoMS, IIT Roorkee(2013-2015) shifia.mittal09@gmail.com

Mr. Vaibhav Shrivastava DoMS, IIT Roorkee(2012-2014) vaibhav.iitroorkee@gmail.com

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Perspective ………………………………………………………

Online Voting System in India The election system is the pillar of the every democratic country. The election process provides the right to every citizen of a country to select a legitimate representative among themselves who can guide the democratic system towards the welfare of the society. The voting system has observed many effective changes over the past few decades, right from the traditional paper ballot voting to electronic voting and now towards the online voting. Internet is increasingly becoming an important medium for propagation of information and all walks through of life. India with 73.9 million internet users is the world's third largest Internet population, overtaking Japan but behind China and the US, according to research firm ComScore. Hence, an Internet application for electronic voting necessarily demands an elaborate and robust in-

frastructure that ensures efficient execution, secured processing. Online Voting System (OVS) aims to provide the voters of India with an additional means of voting, which is easier, suitable and dependable besides ensuring total obedience to the voting protocols. The election system must be safe, sound and robust against a variety of fraudulent actions so that electorate and candidates can accept the result of the election. But in the past, there had been elections which are manipulated to influence the result. A secured voting system should meet at least following four criteria‟s:  Meddle-proof: The voting system must also be meddleproof to hinder a broad array of attacks, including ballot padding by voters and erroneous totalling by insiders.



Anonymity: Anonymity of ballot should be preserved, both to promise the voters security when voting against a malicious candidate and to promise that the elector doesn‟t have any evidence that proves which candidate received his/her vote. Usability: A voting system must be comprehensible and handy by the entire voting population, regardless of age, disability. Authenticity: The voting process is very significant and undisclosed process as whole democratic administration is centralized on voting so the legitimacy of votes and voters should be maintained at the utmost priority to make the voting process fair and efficient.

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Online Voting System in India

……………………………………………………… Balloting Unit against the candidate and symbol of his choice. The controller used in EVMs has its operating program etched permanently in silicon at the time of manufacturing by the manufacturer.

Our democratic system is in the doldrums. The citizens of India are surviving from inflation, lack of employment, vacancy those are coming that are pending in High Court like UPTET 2011 and progressing scam BOFORS, 2G Spectrum, Coalgate, Railgate and etc. Whenever we go for lunch, most of the people talks about election which are upcoming in 2014, but only few of them do contribute in election because most of them have been belonging from other state. Whatever would be the voting turnout, percentage of literate is always less because they can‟t take holiday for an election. Let‟s discuss some of the prevalent voting systems. Paper ballet system is a frequently used as traditional voting system, extensively used prior to the introduction of Electronic Voting System. Paper ballet system includes casting the

vote using the paper and the stamp. Each voter uses one ballot, and ballots are not shared. In ordinary elections, a ballot may be a simple piece of paper on which each voter writes in the name of a candidate, but governmental elections uses pre-printed sheets to maintain the secrecy of the votes. The voter casts his/her ballot in a box at the polling station. An electronic voting system is a type of voting system which uses electronic ballot that would allow voters to cast their secret vote. According to „Election Commission of India‟, the Control Unit is with the Presiding Officer or a Polling Officer and the Balloting Unit is placed inside the voting compartment. Instead of issuing a ballot paper, the Polling Officer incharge of the Control Unit will press the Ballot Button. This will enable the voter to cast his vote by pressing the blue button on the

Online Voting System is the newest electronic voting system introduced. In which the voted ballot is transmitted over the public internet through web browser. The voter can directly vote online from anywhere in the world. Security is the major issue in the Online Voting System. It is very efficient and manageable. Every voter will have to register first through web client interface. Registration will be validated from central election commission process (ECP) server. The major challenge is to identify the unique voter ID. At present Election commission of India can‟t proclaim that a single voter Id would be issued to citizens of India. We can mitigate this situation through linkage between central ADHAR server and central election commission process server. We can complete the registration through public private partnership (PPP) and Panchayatiraj system in India. After successful verification voter will received a confirmation message for their successful registration. Voter will received a voter ID as user ID and will received a date of birth as a default password.

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Online Voting System in India

……………………………………………………… When voter would login with their credential, will have an option to select either general election or state assembly elections. All parties candidate name will be shown on the screen, voter will select any one of them. Voter will received an OTP (one time password) on registered mobile number for authentication of their vote, voter will entered that password and will received a message “thanks for participating in election”. After successful voting, we will set a true to HasVotingConfirmed in the database corresponding to

login voter ID so that this can‟t be participated again. Result can be easily declared through online voting systems. After declaration of result, will have to set again false to HasVotingConfirmed in the database so that he/she could participated in the election next time. In future, we should try for OVS application because android phone users are progressively more swiftly. Indian railway has been launched an application of online

reservation and also booking through phone. We can implement the same for online voting. Day by day the population is increasing enormously which in turns demands the improvement in the voting system. The primary goal of every voting system is to increase the participation of the civic. Undoubtedly the above discussed voting techniques are exceptionally good, but there is always scope for further improvement.

By: Abhinav Kumar Singh Hi Tech- MICRON A 154B Sector 63 Noida UP Pin 201301 Mob No: +91-8447841351 abhinavkumar.singh@tcs.com Nilaya Mitash Shanker DoMS, IIT Roorkeer (2012-2014) nilayamitashshanker@gmail.com

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Chlorophyll

……………………………………………………… Its wise to learn, its GOD like to create

I am not Human… (Against Girl Child Killing) It was a fine chilling winter night... And I was in deep sleep closing my mind... I saw a dream that didn‟t want to see... But I could not avoid as I was asleep... I was standing near a beautiful lake... And beside me was a sweet girl whom I can‟t face... My mind tried hard to go away from there... But she holds me with her mysterious expression...

What I did was not at all acceptable... So she deserved at least an explanation... She would have been the best daughter in world... Who Am I to take her chance from her...? No one knows about my shameful act outside... But my soul knows that I am not human inside......

ByMehul Lala DoMS, IIT Roorkee (2013-2015) mehullala17@gmail.com

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Qutopia ………………………………………………………

It’s Exquizite, Kills your Quriosity and adds to your Quizdom. Need we say more? ‘Qutopia’ – A Utopia of the

best Biz Quiz Tidbits to wreck your brains! Rush in your answers to domination.doms.iitr@gmail.com before 21st October, 2012. The winner will have their names published in the next issue. Also, person getting the highest score in the current quarter will get a gift voucher. Answers in the next issue of DoMination.

Section A (1 Point for each correct answer)

1. One of the Nobel prize winners in Economics this year who has correctly predicted two Bubble burst in the past i.e. dot-com burst and housing bubble burst. 2. How many Companies come under the banner of TATA GROUP? 3. Current president of IMF was previously the Finance minister of which country? 4. Current MD of SBI Arundhati Bhattacharya joined SBI in which year? 5. First woman to be Managing Director in LIC.

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Qutopia ……………………………………………………… Section B (2 Point for each correct answer)

1. Name the below leader.

2. Identify the Logo.

3) Which company‟s billboard advertisement is this?

4) Identify country name from its flag.

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Qutopia ……………………………………………………… Answers for September edition

1. 2. 3. 4. 5. 6.

Mitochondria Kerala Argentina Nestle Bombay House World Bank and IMF

1. Birthday of John Wisden, creator of the "Bible of the Cricket" 2. Oxfam 3. Republic of Seychelles 4. Jimmy Wales, Founder of wikipedia

Winner of September edition Gurpreet Singh DoMS, IIT Roorkee

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

DoMS-da-Evince Himanshu Khare is a 2009 batch alumnus of DoMS and presently working as an Assitant Manager (Mid Corporate Group) at IDBI Bank

(1) Please let us know about your journey prior to joining IIT Roorkee. Ans: Before entering DoMS, IIT Roorkee, I completed my Bachelor of Engineering in Electronics and Communication from Swami Keshvanand Institute of Technology, Jaipur. Although I had a job offer through campus, I decided to get associated with this great Institute called „IIT Roorkee‟ having a rich historical heritage. I was never so much excited in my life at that moment. (2) What are your roles and responsibilities at IDBI? Ans: I am currently working as a Credit Analyst in Corporate Banking Vertical of IDBI Bank. As a credit analyst, I am required to assess the funding requirements of new as well as existing corporate clients under various fund based and non-

fund based credit facilities, viz., Working Capital and Term Loan. These corporate clients are spread across various industries like, textiles, metal, automobile, automotive components, FMCG, consumer durables, education, real estate, etc. Thus, we do a due-diligence by analyzing Industry, Business, Management and Financials of the companies in consonance with the Bank‟s corporate credit policy and making suitable recommendations to the sanctioning committees. In the process we also conduct visits to manufacturing facilities and interact with promoters of the companies. (3) How do you cope up with the various risk associated with financial analysis? Ans: As a banker, we do a thorough financial analysis of the company to look out for associated financial risks in the credit

proposals. One can see signs of risk in the financial statement of the company. We critically work out operating margins, interest cover, liquidity ratio, leverage, contingent liabilities, etc. For funding projects, we carry out analysis of future cash flows and to see the repayment capability of the companies. Besides, this we also see qualitative aspects like accounting quality, disclosure norms, changing in accounting policies. These parameters all taken together are suitably scored and aggregated to arrive at the financial risk score. This score enables the sanctioning authority to take a wise and informed decision. (4) Which of the risk you consider most important and why? Ans: From a banker perspective, I would say Management related risks are perhaps the

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

DoMS-da-Evince ……………………………………………………… most relevant and important risk elements, especially if the promoter / management of the company is new to the bank. A lending bank should lay priority to the verification of the credentials of the promoters by checking on their track record. (5)How much importance you give to qualitative assessment in risk analysis? Ans: Risk analysis involves quantitative assessment as well as qualitative assessment. While most of the time analysts rely largely on quantitative measures, metrics such as the debt-to-equity and price-toequity ratios, supplementing the analysis with qualitative assessment increases the insight into the company. One such qualitative factor can be management as it is not quantifiable. Such qualitative factors give analysts an edge to take the holistic view on the risk assessment.. (6) What is you views on Basel III reforms and its implications on India? Ans: As we know the Basel III norms has been laid in the after math of financial crisis of 2008-

09. These norms are intended to make banks stronger and stable across various countries to withstand financial shocks. However, Indian banks still see Basel III more as a compliance function rather than a necessary pre-requisite for keeping the banks stable and profitable. The enhanced capital requirement of the banks would have to be shared by market and government both. However, in doing the so the banks would see drop in their return of assets and they may have to compensate this with a corresponding increase in the lending rates and fee income in future. (7) What is the most challenging role in your career so far? Ans: During my stint with IDBI, I was regional coordinator for the Mid Corporate Group for two years. The role involved presenting credit proposal from the branches to the regional sanctioning committee. Believe me, to sell a credit proposal to a sanctioning authority is tough nut to crack. The sanctioning committee critically analyzes the credit proposal and discusses each and every risks

and the mitigants available to averse the risk. (8) Would you like to share an interesting incident with us? Ans: There are many interesting incidents in one‟s life but it‟s too difficult to quote some specific one. (9) Any message for readers, especially for the current batch of DoMS? Ans: Our life is more or less depends on the choices we make. Therefore, one should make choices or rather take decision when the time is apt even if it is wrong. If you make a wrong choice, you will always have the time to correct it. But if you delay your decision you will not have time to correct it.

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Success Story ……………………………………………………… Prerna Gupta- one of the most influential woman in technology. She was named as one of the top 10 female entrepreneurs in 2012 by Wiles Magazine.

“After I got my first angel investment, I promised myself I would become an angel investor for others as soon as I sold my first company.” Any guess who this person could be? Well, I am talking about one of the most influential woman in technology, Prerna Gupta. Yes, Prerna Gupta, the name itself reflects multi- talented personality. She hated the idea of corporate cubicles and having a boss. She desired to carve out her own path and make a mark. Truly speaking, she was not at all satisfied with whatever she was doing. She needed a change and that was what drove her into the risky business of entrepreneurship. Kudos to her! She was named as one of the top 10 female entrepreneurs in 2012 by Wiles Magazine. It is marvellous news for all the budding entrepreneurs, who, I am sure, would be moved by her story. While on one hand she used to be the Co- Founder and CEO of Khush, leading music apps developer, on the other hand she is an author and a futurist. Her articles have been pub-

lished in New York Times, TechCrunch, Huffington Post, VentureBeat and more. She also authored “Help Entrepreneurs Make America Home”, “Dove Campaign is (obvious) Sham”, “W o m a n ! =Man ”, “Inspiration”. Later she became the Chief Product Officer and Chief Marketing Officer at Smule. Khush‟s turnaround into a profitable establishment after acquisition by Smule in 2011 was feasible only because of her efforts. She is credited with the release of viral videos for her products that have reached over 250 million views. Earlier she worked as a consultant at Monitor Group and early-stage venture capital at

Summit Partners. She used to be a member of the Phi Beta Kappa Society and received her degree in economics. After graduating from Stanford University in 2004, she initiated the Indian social networking site, Yaari but the company could not survive beyond 2008. In 2009, iPhone app LaDiDa which became the number one free music app on iTunes was released by Gupta accompanied by her husband Parag Chordia. Her potentials know no bounds. Besides being a budding angel investor, she is also a resident mentor at 500 startups. The company Khush was established in order to publicize the notion of, “intelligent mobile apps” like Songify, which has the capacity to transform speech into beautiful music. At present there are almost 50 million Khush app users internationally. She is mostly endorsed for leadership, marketing, consumer products, viral marketing, start-ups, analytics, social networking, product management, strategy and last but not the least

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Success Story ……………………………………………………… entrepreneurship. Presently she works for Smule as well as an angel investor and resides at Los Altos Hills, California. “Switching jobs had not solved my problems. The truth was that I hated working in a conventional structure. I hated having a boss, working on someone else‟s creation and sitting in an office all

day. My time was not my own, and I was miserable. I could not bear it for even one day longer. So I quit and decided to become an entrepreneur. Entrepreneurship is intoxicating. Whatever it is, I find the risk of entrepreneurship to be not only worthwhile but also necessary for fulfilment. Work is no longer work. It is life, and a good one. ”

“One of the most courageous things you can do is identify yourself, know who you are, what you believe in and where you want to go.” Sheila Murray Bethel

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Regardez I’economie ………………………………………………………

Measures to strengthen Indian Economy Till a few years back, India was a next big opportunity in the global economic market. But just a few months back, we saw Indian market in a grim situation. India is struggling in almost all the facets of the economy. Though this scenario looks sudden, but this was not completely unexpected. A loose fiscal policy leads to a high inflation, which in turn lead to tight monetary policies to fight it. The outcome was the Indian economy started to lose momentum. There are ways of looking at the numerous challenges India is facing these days, but

four distinct situations standout among them: 1. Free fall of rupee against dollar and other currencies 2. Widening current account deficit (CAD) 3. Soaring inflation 4. Dampened GDP growth India's current economic woes is marked by a rapid fall in the value of the rupee because of the persistent inflation of the past few years and the high current account deficit (CAD) of about $85 billion (4.5 per cent of GDP) which needs to be funded through uncertain capital inflows year after year. The recent measures an-

nounced by the finance minister look inadequate to strengthen Indian economy. Import duty on gold was increased by a 6% to 10%. Which was an attempt to reduce the current account deficit, but incremental import duty will not serve the purpose to strengthen the economy. The crisis literally started with the announcement by the U.S. Federal Reserve Bank in May that it would taper off its quantitative easing (QE) policy, which pumps a huge amount of capital in developing economic markets, and which can substantially alter the state of a market like India.

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Measures to strengthen Indian Economy

…………………………………………………. The main problem of Indian economy is huge runaway fiscal deficit. The finance minister surprised everyone by announcing a fiscal deficit of just 4.9% for year 2012-13, as this was quite lower than the projected one in the budget, which was rewarded by an upgrade in the outlook of credit rating agency Fitch. This situation presents an opportunity to regain the investors‟ faith and will partially undo the damage of Indian economy for last few years. The next step should be to reduce current account deficit, as India adopted LPG policy (Liberalization, Privatization and Globalization) in 1991 to avoid the precipitated of payment crisis and since that time India‟s foreign trade has increased sharply. But the major concern will remain the same as its import will always higher than its export of commodities like oil, natural gas, electronics good, gold, silver, machinery etc. India‟s import balance is always seen as a major force for its high current account deficit because of global economic volatility in the oil market. Situation demands that India should have to increase its

global trade partner with whom it can have liberal policies like free trade agreement, currency exchange program, and technology development schemes. This is required to achieve the aim of faster, inclusive and sustainable growth. The next step should be the proper implementation of agriculture related scheme, because agriculture and its allied activities are an important aspect of Indian economy but this sector is lagging far behind its real potential. As half of our population dependent on agriculture and its allied activities, so there is a need of faster growth in this sector, as only 1% of growth in agriculture sector will be at least 2 times more effective in reducing the poverty than other nonagriculture sector. There is a need of adopting modern agriculture techniques, major land reform provision to increase land holding and targeted subsidy distribution schemes. There is a huge requirement in revising subsidy scheme like fertilizer and seeds subsidy, diesel and kerosene subsidy, so that only real beneficiaries will get the entitled profit and extra burden on ex-

chequer can be reduced. The Government authorities are required to provide strong impetus to schemes like BGREI (bringing green revolution to eastern India), RKVY (Rashtriya Krishi Vikas Yojana) etc. There is a need to boost the secondary sector of the Indian economy, which includes manufacturing, real estate construction and electricity, water and gas supply. But in recent past it has almost shown negative growth pattern which is an alarming situation for the economy and the more dismal and grim fact is that it has contributed only 16% in employment part of the country. There is a requirement of effective plan in this sector like investment in renewable energy program on the priority basis. There is a need to increase the transparency of the system to reduce the level of corruption, which is one of the most pervasive problems in front of the nation which is assumed to be the major roadblock in the path of growth and development. Bureaucracy, redtapism and license raj has made its base such that corruption is assumed to be the major con-

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Measures to strengthen Indian Economy

…………………………………………………. cern. The major causes of corruption are excessive regulation, mandated programs and monopoly of the Government on distribution of certain goods and services. The Government has to implement the anti-corruption policies stringently like citizen's charter act, Right to information, Right to reject, Public service bill, e-governance, eprocurement, e-choupal etc. These measures and some others can only strengthen Indian economy. India still has time to work towards insulating itself from the vagaries of global finance causing much weakness in the currency and the current account. Here are some more suggestions to strengthen Indian economy: 1. Government can easily generate $20 billion or one per cent of GDP by allowing higher coal and iron ore pro-

duction from its large reserves. Our annual coal imports have gone up from roughly $7 billion five years ago to about $18 billion now. The increased dollar outflow was largely avoidable because India has among the largest coal reserves in Asia. India could have saved $10 billion simply by producing more domestic coal. The government must, under a specially regulated dispensation, maybe under the Supreme Court's watch, revive the export of iron ore from Karnataka and Goa where much of the mining has stopped following judicial intervention. 2. The Centre should adopt an 'expenditure switching' policy, to achieve the fiscal deficit target of 4.8 per cent by cutting back on subsidies and boosting plan capital

expenditure. 3. The latest government policies regarding FDI which underline its readiness to welcome foreign investors to bring in investments are very welcoming and should be supported by one and all without partisan differences. 4. In the long run and to avoid future crisis, India needs to strengthen its agriculture sector. As we have seen in the past, not just in India but elsewhere too, for growth revival, investment in agriculture should be increased from 3% to 5 % by the end of the five year plan (20122017). Any other growth model would just not be sustainable. So with simple ideas that do not require big bang reforms, India can weather the storm caused by global and domestic economic factors.

By: Agam Gupta DoMS, IIT Roorkee (2013-15) agamvarshney@gmail.com

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Spotlight ………………………………………………….

Manthaan Risk assessment and management is one of the core considerations in the field of finance, be it lending or investment decision. The topic has acquired greater relevance in the current financially turbulent times when every institution has to carefully gauge the various factors contributing to risk. For management student and future leaders, it is vital to have a sound understanding of the subject. Fortunately students at DoMS, IIT Roorkee got such an opportunity to learn about the same. The event was Manthan, the finance summit conducted at DoMS, IIT Roorkee, on the topic of “Rethinking Risk in Financial Institutions: Making the CFO-CRO Partnership work” which was scheduled on 29th Sep

2013. It was organized by Vittarth, he finance club of the DoMS, IIT Roorkee in association with ISTD Dehradun Chapter. The sponsors include some of the key brands such as Union Bank of India, Punjab National Bank, Oriental Bank of Commerce and Bank of Baroda. The student was very enthusiastic about the event as eagerly waiting for the same. The event saw participation of several well known industry leaders as well as distinguished academicians from the department. The list of guest speakers includes: 



(HR), BHEL Mr. Gaurav H Talwar – VP & Head-Delivery and Operations, DCB Bank Mr. Rajiv Saksena – Associate Director & Dy. Head Corporate Group, North BNP Paribas Mr. Jiwan Jyoti Nayar – Asstt. Regional Manager, Oriental Bank of Commerce

The event took off with a welcome note from the students. Then

Mr. Diwakar Pundir – Chief Credit Officer, Bajaj FinservLending Mr. Anil Kapoor – AGM

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Manthan …………………………………………………. He welcomed all the guests and explained the vision of the department to the guests and emphasized on the fact that Return on Investment (RoI) is the key consideration in any management program. Then Dr. P. K. Ghosh (Dean Finance, IIT Roorkee)

cialization include credit analysis, banking, risk management and lending. He was also accompanied with his spouse Mrs. Himani Pundir. Mrs. Pundir is an alumnus of the very first batch of DoMS. She offered her gratitude for providing opportunity to visit her alma mater. Mr. Diwakar started delivered the keynote address where he explained that mobility of money is related to market growth which in turn is affected by national and international policies. This describes some of the risks associated with financial institutions. He also touched on product development and stated that it require a thinking about the society. He further explained how research and innovation can make the difference and provide competitive edge. He cited examples of several nations such as Korea, Vietnam and China how their research efforts are driving their growth. His thoughts were well received. It was now the turn of batch presentation where guests were introduced to the strengths and achievements of the departments. It was now the turn of the guests to share their understanding and first one was Mr. Diwakar Pundir. Mr. Pundir 1997 batch alumnus of IIT Roorkee and also has an MBA degree from IIM Banglore. His areas of spe-

by saying that risk and return are the most important aspects from bank‟s perspective and a manager has to make the balance between these two. On the subject he observed that it is not CFO-CRO relation but it‟s actually CFO-CRO-Management relations as the ultimate decision is taken by business managers. He then deliberated upon the emerging trends in financial service industry and how product complexity is increasing day by day. He focused on regulatory compliances such as priority sector lending becomes important in context of RoI. The guest also talked briefly about the global financial crisis and its impact on financial markets. Over-

all he made us aware that how complexity of business is increasing. Then the guest spoke about the risk management and explained various types of risk viz. credit risk, interest rate risk, currency risk and liquidity risk. In addition to these, he also mentioned broader economy risk by taking India as an example. Since Indian economic growth has been reduced by approx. 50%, this poses extra challenges for institutions. Then regulatory risk also poses a challenge. After a thoughtful lecture on risk, the speaker moved to the CFO-CRO relationship. He mentioned that both CFO and CRO have areas of convergence as shareholders, regulators and management are the common feature. As for responsibility, CRO responsibility basically lies with risk management and mitigation where CFO‟s scope of work is broader including strategic planning. He shared an interesting fact that CROs also have to respond to queries for growing business without taking additional risk. Finally he introduced us to stress testing and scenario planning by demonstration how changes in an actionable event affect drivers of business. After the fascinating discussion, the next speaker was Mr. Anil Kapoor. Mr. Kapoor is also a 1982 batch alumnus of IIT Roorkee (then University of Roorkee). Mr. Kapoor walked us through the timeline of BHEL. He shared the information that today BHEL has 17 manufacturing divisions, 4 power sector regional centres, 8 service centres and 4 overseas offices. It also has 48000 strong workforces building the nation. Fi-

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Manthan ………………………………………………….

nancial performance of BHEL is also presented. The speaker then deliberated on the key challenges faced by the organization as listed below:



Slowing global and Indian economy



Indian power sector is in stagnation

  

Rising competition

 

Major retirement in next 5 years

Talwar. Meanwhile Dr. J. L. Gaindhar, President of Alumni Association of IIT Roorkee also joined. Mr. Talwar showed the gap between Indian economy and USA economy. He stated that USA is 3 times bigger than India but has only one third of the population. USA is also the biggest importer as well as exporter of the world. Even 2/3 of entire world cur-

Decreasing margins Critical raw material BoP vendor skill deficit

Technology shift in major production unit From there, he took us to BHEL Haridwar and also spoke about certain issues having financial implications. The main reason is backing out of the customers. In some other situation, BHEL itself halts the work due to non -payment from client. Additionally, as the competition is growing, BHEL has concentrated on new products which demands intensive research. According to the speaker, the situation of R&D in India is insufficient and we still depend upon other countries. He explained that even with borrowing, some amount of customization is needed which calls for research. The third speaker was Mr. Gaurav H

rency and around 60-70% of trade is in dollars. USA is also the 3rd largest producer and largest importer of oil. USA is also way ahead in terms on innovation and research. All these factors give it an unparalleled weight and make it a world leader. Hence, if USA sneezes the world gets a cold. The speaker then went on to compare USD and INR. He stated that in 1947 the dollar and rupee were equivalent. At that time there was no debt on India which now is in tune of $300 billion. He also touched about the situation in 1991 when India has to pledge its gold. After the comparison, he touched on the topic of why the dollar -rupee gap is increasing. As per his view, it is related to demand supply mismatch. India has traditionally been having lesser export than import. So far the gap has been managed through FII but now the decreasing foreign investment is mak-

ing situation worse. Oil and gold are the two main imports of India and that is why there are calls to reduce consumption of them. The speaker shared his apprehension that India‟s credit rating may be downgraded and this again puts additional pressure. The speaker was concerned about current situation and wished a speedy recovery. The fourth speaker was Mr. Rajeev Saksena. He is also an alumnus of IIT Roorkee and then completed his MBA from FMS, Delhi. He appreciated the contribution of IIT Roorkee in education and nation building. He started with defining risk as probability of something undesirable. Then he touched risk management process which involves pre due-diligence, due -diligence, post due-diligence and periodic audits. As for the topic, he suggested that there is a need to rethink over the relationship between the CFO and CRO. He advised the future managers to always be alert and never let the guard down. He gave an example of an otherwise normal trade but using an Iranian vessel for transportation. He then explained how Iran sanction can play havoc. Another example was given for a $6 billion out of the court settlement for

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Manthan ……………………………………………………… irregularities in dollar payments. Therefore one must be continually thinking. There is no harm in raising a doubt and seek clarification if something is not clear. Adherences to system, compliances and procedures are essential for everyone. A bonus of few lakhs is insignificant when compared to 40 odd years of career and loss of reputation. He also explained his personal experience of one case in which a party was found in malpractices. The last speaker of the day was Mr. Jiwan Jyoti Nayar. Mr. Nayar specifically talked about risk management in

commercial banks. He observed that banks, as opposed to sophisticated financial institutions, have to cater to general masses which need different risk management processes. In case of a crisis (like Uttarakhand Disaster) banks have to suffer losses. Another aspect is that banks have to lend to financially illiterate clients and hence the risk assessment becomes more qualitative. In such a situation, even credit rating could not be taken as baseline and there is a need to look beyond established methods of financial analysis.

This marked the end of the summit. A note of thanks was delivered and the guests were presented mementos for their valuable time. The summit saw an interactive audience and intelligent questions. It proved to be extremely useful for budding managers.

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

SpotLight ………………………………………………………

ABHYUDAYA Operations are called back-bone of organization as it deals with the end product or service. In today‟s organization it needs to be efficient as well as effective. DoMS, IIT Roorkee got wonderful chance to share ideas and views on operations as the Operations summit “Abhudaya” was organised on 27th September at Department of Management Studies, IIT Roorkee. The summit was organized by Operazione (Operations club of Department of Management Studies, IIT Roorkee) and it was sponsored by PMS Flashmatics and Drona IAS. The event began by lamp lighting ceremony where Head of Depart-

ment Dr. Santosh Rangnekar, Deputy Director of IIT Roorkee Mr. S. P. Gupta, Faculty Advisor Dr. Rajat Agarwal and other distinguished faculty members were present along with eminent industry speakers which include:  Chief Guest Mr. Pradeep Kapse (Technical Advisor, Volvo & Eicher Commercial Vehicle)  Mr. Nishant Arya (Executive Director, JBM Group) – Special Guest of Honour  Mr. Rajeev Saxena( COO, Agility Logistics)  Mr. Mohit Khandelwal (Engagement Manager, A.T Kearney)

The session began with Mr. Rajeev Saxena sharing his opinions and knowledge about Supply Chain Management. Mr. Saxena mentioned Supply Chain not only focuses on reducing manufactur-

ing cost but at the same time also focuses on reducing distribution and supply chain cost. Going ahead with his speech he talked and discussed about what are the

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

ABHYUDAYA ……………………………………………………… factors that influences supply chain and hence put pressure on Supply Chain Management task. He mentioned for any company waiting time and seepage as one of the causes of concern. He also shared his knowledge on challenges for SCM and the need to balance the customer satisfaction against cost of supply chain. He also mentioned the existing problems in today‟s industry perspective. 1. Taxation Problem: Indian State Tax system and also discussed about Goods and Service Tax. 2. Demand Forecasting: Instead of company following demand forecasting, company start practising sales forecasting. 3. Lack of Trust: Trust does not exist between various channels of SCM which includes distributor, Partners, customers. 4. Lack of Information 5. Lack of Infrastructure 6. Lack of Trained and Skilled Resources At last he mentioned about the collaboration among various industries as important tool to leverage benefits like cost cutting. The second speaker and chief guest of event Mr. P.K. Kapse, also Alumnus of IIT Roorkee, shared his views on what is re-

with a quotation “Technology & Operation have their own importance but Mindset is the Key Aspect”. He discussed about the need for the company to focus towards excellence and considering Bench-

quired to be differentiator and successful in Industry. He emphasized on the young MBA students to start their work from ground level and maximize their learning as time goes on. He also pointed to the requirement of carefully understanding problem statement and hence understanding the need of people and what motivates them. He mentioned about five fundamental rules that one must follow to be successful in industry. 1. Vision: To have clarity of one‟s vision 2. Strategic Planning 3. Selection of Right Team 4. System & Control 5. Discipline Ending his speech Mr. Kapse emphasized the need of hour is to follow these 5 basic rules and keep on improving your learning. The third speaker of the day was Mr. Nishant Arya who was the special guest of honour. He started

marking as the important parameter to monitor growth for manufacturing process. He mentioned about 80% -20% approaches as 80% of the problems lie in 20% of process, so identifying those 20% and working on them will improve company‟s operation capability. He also discussed about the today‟s need for any company to become lean, Frugal and adaptive so as to catch up with good times when slowdown occurs. Post Lunch Session began with very enthusiastic speaker Mr. Mohit Khandelwal. Mr. Khandelwal started his discussion with Analytics and how analytics plays vital role in utilizing unstructured data and thus explaining the significance of the Analytics in today‟s Market. He mentioned about the challenges of BigData and set

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

ABHYUDAYA ………………………………………………………

out the problems faced in operations of company and how supply chain suffers loss in terms of suppliers and distributors, availability followed by A.T Kearney‟s DDM (Dynamic Decision Model) and

how DDM enables faster and better cross functional decision making in terms of operations. Concluding his session he mentioned about the problems faced in operations. 1. Global Supply Chain 2. Environmental and Trade Regulations 3. Economic growth & Exchange Ratio 4. Price Fluctuations 5. Demand Variations 6. Supplier Compliance The Summit concluded by thanks-

giving Speech by students of Department Of Management Studies, IIT Roorkee for the respective faculties, participating dignitaries and students from both years. The summit was highly successful with lots of participation and interaction of students with prominent industry speakers.

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

SpotLight ………………………………………………………

VIHAAN Human resources are always an important as well as an integral part of any organization, be it services or manufacturing. In modern times it is considered most crucial asset of the organization. Needless to say, it is imperative for budding managers, leaders and entrepreneurs to learn about the development in HR world. DoMS, IIT Roorkee also got such an opportunity to discuss the subject and learn about the same. The event was Vihaan, the HR Summit which was hosted on 28th Sep 2013 organized in DoMS, IIT Roorkee. It was sponsored by some of the well known brands such as Everest, Godrej & Ambuja Cement and conducted by VyavaHR, the hu-

man resource club of DoMS, IIT Roorkee. The topics of discussion were diverse in nature and relevant as listed below: 1. The role of HR in Organizational Transformation 2. Strategic HRM and its importance today 3. Workforce Motivation 4. Talent Acquisition and Retention There was an aura of excitement in the department and students were enthusiastic about listening to these eminent personalities. The summit saw the participation of industry stalwarts and distinguished faculty members of the department. The guest speakers

included: 1. Brig. Digvijay Setia 2. Dr. Santosh Bagwe – COO, Dr. Batra‟s B Perfect Pvt. Ltd. and Head HR, Dr. Batra‟s Group of Companies 3. Ms. Bhairavi Bhatt – Sr. HRManager, Dr. Batra‟s Group of Companies 4. Mr. Baliram Mutagekar – Sr. Manager-HR, Persistent Systems Ltd. 5. Mr. Rajesh Kumar – Sr. DGM -HR, BHEL 6. Mr. Alok Sheopurkar – Sr. VP and HR-Head, HDFC AMC 7. Mr. Indrajit Singh – HR Director, THALES India 8. Ms. Navdeep Lamba – Talent Acquisition Manager, THALES

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Vihaan …………………………………………………. India In addition to these renowned guests, the event was also graced by Dr. Santosh Rangnekar, Head of the Department, Dr, Usha Lenka, Dr. R. L. Dhar and Dr. M. K. Barua. The event started with the introduction of the department. The guests were explained the various strengths of the department. Then a lighting ceremony took place. This marked the formal initiation of the event. It was now the turn for industry leaders to share their experiences and understanding about various facets of human resource management. The industry leaders spoke about a varied range of topic such as leadership, workforce motivation, HR in changing times, talent management, employee satisfaction and HR in an organizational context.

The speeches were enriching and well received by the audiences. It was also followed by a questionanswer session where student‟s queries were responded by the guest aptly. The first address was from Brig.

Digvijay Setia who began his session on motivation among employees and how to achieve goals

ployee. He also shared his views on talent acquisition and retention. Our next speaker Mr. Baliram Mutagekar, as having experience in IT industry introduced students about HR‟s role in an IT organization. He briefed about challenges faced by HR and talent acquisition and retention in IT firms. His views on design and implementa-

through it. His comparison between Military vs. Corporate Leadership gave insight of need for motivation and good leadership. He emphasised on the points like role and goal clarity, righteousness, team building etc.

Next speaker Dr. Santosh Bagwe started his session with transition of business and HR role in last 2525 years. He elaborated this transition in context of Business, Tech-

nology, Aspiration changes and transition of HR role. He shared his experience in different types of industry and how HR role has transformed from personnel department to facilitator to em-

tion of HR policies and processes, employee engagement etc were quite enriching for students.

Last speaker of the day Mr. Rajesh Kumar, gave a brief introduction to BHEL and how it is leading the way in heavy electrical segment. During his session, he repeatedly emphasized on „being happy and enjoying life‟. As we know BHEL has been identified as the 6th best employer to work for among top organizations of country by Business Today in 2013. He attributed this to BHEL‟s work-life balance and talent nourishment.

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

Vihaan ………………………………………………. After the series of addresses, a panel discussion was also held in which Mr. Indrajit Singh, Mr. Atul Sheopurkar, Mr. Baliram Mutagekar, Ms. Bhairavi Bhatt, Mr. Rajesh Kumar and Dr. San-

tosh Bagwe shared their views on the matter of workforce motivation and trust in the people. They also deliberated upon the role of HR in organizational transformation. The discussion became inter-

esting due to students interaction with dignitaries and curiosity for their perspective on the topic. The discussion proved to be extremely fruitful for the students.

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DEPARTMENT OF MANAGEMENT STUDIES, IIT ROORKEE

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