Of State Capitals And Rape Capitals – Why Many In India Have Got It Wrong

A girl was brutally raped in Delhi – India’s Capital and affectionately called by some as India’s Rape Capital.  This rape turned out to be the last straw on the raped camel’s back and people all over the country are pouring out in thousands to express their opinion on the state of affairs in India.  Well, high time.

There is much talk about stricter laws and stiff punishments for rapists.  I agree philosophically, but I feel that in demanding stricter laws and stiff punishments for rapists, we may lose a wonderful opportunity to address the real problem.

Let me explain.

The last thing India needs is a new law.  Our country is riddled with laws.  More than 1300 laws were repealed by the Ex- Law Minister Mr Ram Jethmalani sometime between 1999 and 2004 and we don’t even feel the difference of it in our lives.

There is much blame put on the Indian Politician.  I cannot understand this.

Why blame the politician?  Every country on the globe is riddled with politicians who are in politics and government for personal glory.  How many politicians sincerely work for their country?  I am sure there are some but I am pretty sure that if they had a choice, they would rather focus on how to get re-elected than on nation building.  To quote P J O’Rourke – “A little government and a little luck are necessary in life – but only a fool trusts either of them.”

An Indian citizen can effectively measure up any Indian Politician in a matter of minutes.  It is not going to take rocket science to know that the objective of government is not to govern the nation - it is to use the nation’s resources for personal advantage.

A classic way to make money is to sell goods and services to a dumb client who has no idea of how much to pay for such goods and services and as a result pays much more than the market would otherwise.  Another way to make money is to do business with a client who has much money and will never run out of it.  Another way to make money is to do business with a client who is duty bound to make payment.  The Government enterprises, companies and institutions are one such client base which has all the characteristics listed above.  It is even better if your uncle is the minister heading those very enterprises.

There is much blame put on the Indian Police.  I cannot understand this.   The police don’t function.  Any Indian should be able to see that.  This fact was obvious to Indians even before the gang rape in Delhi.  Blaming the police means one does not understand how the police function works.

A few words for the cops.  How would you feel if you had to be on the vigil protecting a politician whom you know to be a crook?  What would you do if you had to spend hours day in and out serving and observing an elected parliamentarian crook plunder the nation?  Remember, a politician can ruin the life of a cop – in minutes.  A cop is a human being too.

Now I come to the final pillar of stability in the country.  The only institution that can change India is neither the parliaments, nor the state law and order institutions.

It is the Honorable Supreme Court of India.

This is where Indians must hope for change. It is the only institution who can take decisions without fear of retribution from the politicians.

However, there are other issues that must be addressed.

The Honorable Supreme Court of India has given many wonderful decisions.  There are many Indian states and institutions who have not implemented the orders of the Supreme Court.   They are in direct contempt of the highest court in the Land for a number of judgments.  And nothing is being done about it...

This is where we Indians fail.  The Courts fail to ensure the implementation of the law.  There is much satisfaction that they derive in passing on the judgment but they are hesitant to find if their orders are being implemented.

In light of the above, what difference will one new law make? Little I presume. There is no point in a law if there is no agency which ensures that it is implemented.

Protesters must not line up at the President’s residence.  The President must act on the advice of council of ministers and as such has no real powers to do anything of consequence.

The real protest would be line up outside the Honorable Supreme Court premises and pray for justice.  The Honorable Supreme Court has suo moto powers to take cognizance of any event and pull up the concerned department.   It is the only hope for this nation.  It is the only institution with a heart and which can guarantee Indians their constitutional rights - the only change agent left in this country.

To hope for the parliament to change the nation is a gang rape in itself.

© Nitesh Kotecha

I Am A Liar But Dont Call Me A Rascal: The Sins of Parents and Teachers

An elderly person and a father was lying to his daughter.  The daughter caught him lying.  The daughter called him a rascal.  The father says “I am a liar but don’t call me a rascal.  I am your father.”

Let us now analyze this a little bit.  This little anecdote highlights the irrational demands made by the elderly, the revered and other such sacred cows.

Calling names such as rascal etc is a one time event. Lying is a perpetual habit!  Which one is worse?  The father clearly is using his position as a parent to minimize the dangers of lying as if it is a borderline virtue !

A closer look at the above text will tell you that the elderly do not only demand respect but also demand pardon – from the young!

Hello?!  Should not this be the other way round?  Are not the elders supposed to be the embodiment of experience, grace, virtue and forgiveness?   This is the only reason why we are traditionally and ritually  “programmed” to respect them.

However, this brings to light many issues... what is the cut off age for an elderly person?  How do we define such a person?  For a child of age 5, the father at age 31 is an elder – however, people of such age are still treated as young people by society.  Why not have respect for all – young and elder people? Why not give respect purely because the person deserves it or has earned it irrespective of age?

Our ancient texts have glorified the devotions that one must pay to parents, teachers and guests.  These are absolute statements much like the directive principles of state policy that is highlighted in our constitution.  Do these postulates account for situational variables?  I believe they are absolutes and disregard the situation or the psychological framework of the person.

I have had bad teachers in my life – teachers who don’t have an iota of knowledge, not an ounce of moral fiber nor any shade of decency.  Why does one have to pay obeisance to such rot?

We don’t have to, I guess.  The only way out is to forgive these people.  They have no idea of their shortcomings.  They too are programmed, by virtue of their conditioning, that since they are of age or they have a position as parents or teachers – this fact alone automatically qualifies them to receive unconditional respect, obeisance and devotion.

Forgive them.  This is the price we pay for being compassionate and mindful of people's faults. But it is the only way out

© Nitesh Kotecha

Brother... Where You Bound?

A simple look at the latest developments in technology will give you an idea about a new paradigm coming up in our work environment – substitute technology and remove the human interface.

Researchers and Developers are creating digital actors – yes animated characters so real that one would not believe that the person you see on the screen is a digital creation.  Let’s face it; the dinosaurs have been looking real ever since Jurassic Park (1993) – it is about time we have digital characters who look every bit human.

Major Motor car companies are now incorporating bio-metric signals in the cars so as to assist the driver.  The car would signal a light representing coffee – meaning the driver’s skin is emitting signs of exhaustion or fatigue.  There are minor sensors in the steering wheel which will detect undesirable jerks in driving.  The cars will then automatically reduce their top speed and switch on side sensors which will assist the driver in ensuring his safety.

Stock brokers developed algorithmic trading and now have software in place for such trading.  The manned operations are discarded and the staff given the pink slip.

What is happening?  The above events are just a sample of how technology will soon substitute routine jobs.  New jobs will be created in place as the demand for such technology increases.  And soon those jobs will be replaced with technology and other new jobs will be created.

The above events summarize the need for people to understand that if they are in to traditional jobs, routine jobs, jobs that represent skills that machines can replicate – they need to re-evaluate the career paths they may have chosen for themselves.   Of course, certain jobs cannot be replaced – technology cannot replace a judge or a lawyer at a court.  Politics will not allow technology to replace a cricket umpire! Or an elected representative for that matter!

The current definitions of a business degree will need to undergo a metamorphosis in the sense that future business leaders will see pressure mounting on them as they meet the challenges of such changes in their business.  Curriculum focused only on the administrative side of businesses will need to be revised to accommodate for developing ability in spotting trends.

© Nitesh Kotecha

Not The End, My Friend

Dedicated to the soft and delicate one(s)

This is not the end, my friend,

Just a turn and not a dead end.

See how life gives its twists and turns?

The Protector hurts and gives heart burns!

The past is past,

It is the future we must fix,

Take the ashes of the heart burn

And rise like the phoenix!

For this is not the end, my friend,

Just a turn and not a dead end.

They say we must pay for all our sins,

For grief and pain caused to our kith and kin,

But it is not your time to go,

You are here to stay,

Rejoice as you will live,

To die another day!

For this is not the end, my friend,

Just a turn and not a dead end.

 © Nitesh Kotecha

If

If you can keep your head when all about you

Are losing theirs and blaming it on you;

If you can trust yourself when all men doubt you,

But make allowance for their doubting too:

If you can wait and not be tired by waiting,

Or, being lied about, don't deal in lies,

Or being hated don't give way to hating,

And yet don't look too good, nor talk too wise;

If you can dream---and not make dreams your master;

If you can think---and not make thoughts your aim,

If you can meet with Triumph and Disaster

And treat those two impostors just the same:.

If you can bear to hear the truth you've spoken

Twisted by knaves to make a trap for fools,

Or watch the things you gave your life to, broken,

And stoop and build'em up with worn-out tools;

If you can make one heap of all your winnings

And risk it on one turn of pitch-and-toss,

And lose, and start again at your beginnings,

And never breathe a word about your loss:

If you can force your heart and nerve and sinew

To serve your turn long after they are gone,

And so hold on when there is nothing in you

Except the Will which says to them: "Hold on!"

If you can talk with crowds and keep your virtue,

Or walk with Kings---nor lose the common touch,

If neither foes nor loving friends can hurt you,

If all men count with you, but none too much:

If you can fill the unforgiving minute

With sixty seconds' worth of distance run,

Yours is the Earth and everything that's in it,

And---which is more---you'll be a Man, my son!

By Rudyard Kipling

Top Ten Ways To Eliminate Corruption in India

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© Nitesh Kotecha

India's Junk - Is Anyone Looking? (Part 1)

Guys, Let us look at a junk stock - Resurgere Mines and Minerals.  This shares of this company are promoted heavily by one of India’s top brokers only because they have to distribute this stock to the general public of India.

Below is an extract of the Management discussion and analysis (MDA) from the audited balance sheet. The MDA is supposed to be the director’s discussion with shareholders.

The company has written the MDA by telling you how the world and India is doing in terms of growth.

The company has not offered a single explanation of its financial condition to the shareholders.  Nor has it discussed any aspect of its operations

I am pasting the text below in small font so as to conserve space.  If you wish to read it, copy it and paste it to a word processor and then enlarge the font size.  

This is one more example of the kind of nonsense that exists in India.  We have SEBI pulling up the Sahara Group as the group is visible and a political target.  SEBI  turns a blind eye to hundreds of companies like Resurgere which take investors for a ride.

Can we expect SEBI to be strict with companies like these just like it was firm with the Sahara Group? I don’t know. Can you expect donkeys to fly?

Note the question mark.

© Nitesh Kotecha

Resurgere Mines and Minerals -Management Discussion and Analysis

World Economic Environment

IMF, in its April 2012 update, has projected a World output growth of 3.5% for 2012 against a growth of 3.9% during 2011.

However, projected growth of 3.9% for 2013 indicates a mild recovery. Slight recovery in the major advanced economies, coupled with the solid growth in most emerging and developing economies presents a positive outlook for the Global economy on the whole.

While US economy appears to be on recovery path with a growth of 1.7% in 2011 and projected growth rates of 2% and 2.3% for 2012 and 2013 respectively, the Euro Zone continues to be an area of concern. Its projected growth for 2012 is -0.3% against a growth of 1.5% during 2011. The projection for 2013 is also for a flat growth at 0.7%. In the Euro Zone, Greece which had contracted by 6.9% in 2011, is projected to contract by another 4.7% in 2012, before starting recovery in 2013 along with Portugal and Spain.

Growth in the advanced economies will be slow, projected at 1.4% for 2012 and 1.9% for 2013, primarily because of the ongoing problems in Europe.

As per IMF, the emerging and developing economies would also experience a lower growth of 5.6% into 2012 against a growth of 6.2% in 2011. In developing Asia, China which had grown at 9.2% in 2011 is expected to slow down to 8% in 2012 before recovering to 8.5% in 2013.

Given the overall dampening in economic activity, the trade growth is expected to slow down for both developed as well as developing world. Risk in 2012 is in the form of continued hardening of oil prices. China and India, which together account for around 80% of the incremental oil demand, would continue to push the demand given the pace of their economic expansion. Further, any geo-political uncertainty could trigger a sharp increase in oil prices.

Indian Economic Scenario

 The GDP growth of the Indian economy was estimated at 6.5% for the Fiscal 2011-12. Reduction in gross fixed capital formation and slow down in industrial production have been the cause of concern. No change in the growth rate is expected in the coming fiscal, with RBI projecting a growth of 6.5% for 2012-13. The Union Budget has announced a number of measures to boost the investment climate, with special focus on infrastructure and manufacturing sectors. For the Steel Industry, the key measures are in the form of increasing custom duty on flat carbon steel products from the level of 5% to 7.5%. This along with measures to bring back industrial growth should allow for accommodation of additional supply on capacities likely to be commissioned in 2012-13.

The announcements with regard to reduction in customs duty on machinery imports for mining and mineral sector, specially for iron ore beneficiation and pelletisation, will lead to reduction of overall capital cost.

Forward-looking Statement:

This report contains “forward-looking statements” – that is, statements related to future, not past, events and may be interpreted as ‘forward looking statements’ within the meaning of applicable laws and regulations. In this context, forwardlooking statements often address our expected future business and financial performance, and often contain words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “should” or “will.”

Forward–looking statements by their nature address matters that are, to different degrees, uncertain. Actual results might differ substantially or materially from those expressed or implied. Important developments that could affect the company’s operations include a downtrend in the iron ore, bauxite, steel, pig iron, soapstone, & met coke industry – global or domestic or both, significant changes in political, economic, business, competitive or regulatory environment in India or key  markets abroad and from numerous other matters of national, regional & global scale including but not limited to natural calamity, tax

laws, litigations, Government policies & regulations, fluctuations in interest and/or exchange rates of Indian Rupee, etc.

Any forward-looking information in this report has been prepared on the basis of a number of assumptions, which may prove to be incorrect.

This report should not be relied upon as a recommendation or forecast by Resurgere Mines & Minerals India Limited. The views expressed herein may contain information derived from publicly available sources that have not been independently verified; no representation or warranty is made as to the accuracy, completeness or reliability of this information. We do not undertake to update our forward-looking statements.

Global iron ore industry:

Iron, the fourth most abundant rock and constituting about 5% of the earth’s crust, is the world’s most commonly used metal. Global iron ore deposits are estimated at 800 billion tonnes, containing more than 230 billion tons of iron. Iron ore is mined in more than 50 countries and the world’s largest iron ore producing nations are Russia, Brazil, China, Australia, India and the US.

World Steel Scenario

The Global Steel Industry is going through a rough phase with demand declining and the major steel economies like USA and Europe running into oversupply. The World crude steel production in 2011 stood at 1518 million tonnes, growing at 6.2% over 2010, with China contributing as high as 52% to the incremental production. The growth rate however, was considerably lower as compared to 16% in 2010.

The Global steel demand during 2012 is expected to grow by 3.6% to 1422 Million Tonnes, moderating slightly as compared to a 5.6% growth in 2011. It is expected to grow further by 4.5% to around 1486 million tonnes in 2013, as per WSA forecasts. Demand in major steel producing nations, viz. Japan and Europe is projected to increase in 2012 as compared to the demand in 2011. In the US, demand is forecast to grow by 5.7% in 2012 and 5.6% in 2013. China’s growth in steel demand

in 2012 and 2013 is expected to moderate to 4.0% following 6.2% growth in 2011. The continuing slowdown of Chinese steel demand is mainly driven by the Chinese Government’s efforts to restructure the economy. However, part of China’s projected slower growth is offset by improvement in other emerging markets and the recovery in US.

India is expected to resume its high growth trend after a sluggish performance in 2011. In 2012, India’s steel use is forecast to grow by 6.9% to reach 72.5 MT and is projected to grow further by 9.4% in 2013, driven by increased infrastructure investment and higher pace of urbanisation.

WSA forecast suggests that in 2013, the emerging and developing economy will account for 73% of World steel demand.

Indian Steel Scenario

India maintained its ranking as the 4th largest steel producer in the World with a production of 71.3 million tonnes in 2011, registering a growth rate of 4.4% over 2010, as per WSA. According to JPC estimates, domestic finished steel consumption posted a growth of 6.8% during 2011-12 to 70.92 Million Tonnes. The World Steel Association has projected a growth of 6.9% for steel consumption for India during 2012, which is higher than the growth in steel consumption projected for China (4%). In 2013, the growth rate is forecast to accelerate to 9.4%.

Financial performance – operational performance

With the Indian Economy reeling under the collateral impact of a sovereign debt crisis in Europe and frequent increases in domestic interest rates to rein in inflation this Fiscal, the growth rate of real consumption of domestic steel in the currentFiscal also witnessed a slow down as compared to last year.

The summary of financial performance of the Company is presented below:

(Rs. in Lacs)

Particulars FY 2011-12 FY 2010-11

Total Income 7,670.57 65,171.68

Profit / (Loss) before Depreciation & Amortization (1,531.34) 3,331.38

Less: Depreciation 2,274.08 1,928.25

Less: Amortization (Including Goodwill) 3,912.49 2,682.58

Profit / (Loss) before tax (7,717.91) (1,279.45)

Less: Provision for taxation 3.31 317.94

Profit / (Loss) after tax (7,721.21) (1,597.40)

During the year under review, the company’s total income is decrease by 88.23% compared to the total income from the last year and company has incurred a loss of Rs. 7721.21 lakh during the year under review.

Mining overview:

India’s GDP growth was catalysed by the mining industry; every rupee invested in the mining industry generated Rs. 2.4 of output (directly or indirectly) in the country’s economy. Mining contributed about 2 per cent to the country’s GDP (source: Central Statistical Organisation).

The Prevention Of Politics As A Career Act

I dream of a world where every country has its own act that briefly conforms to the above utopian law.

Why does a person want to be at the service of others?  I have always believed that there are personal motivations involved ESPECIALLY when a person wants to work for others!

Let us look at all the social service organizations that have brand names that span across countries.  The people involved in the committees fight bitter battles and speak with a fisherwoman’s tongue.  The other activities include over-invoicing costs and pocketing the difference in cash, hosting dinners and personal grandiosity as displayed in photographs of local and regional newspapers.

Let us look at this a bit more honestly and a little less cynically.  Let us assume that President Obama had announced in 2008 that he would be President for four years only and that he would not contest elections in 2012.  What are the odds that President Obama would have done a much better job than what he has done?  I believe that he would have excelled.  The thought of contesting elections in 2012 would have never entered his mind and he would have been more concerned about leaving a legacy.

The Indian politicians are a powerful lot.  Many Indians pride themselves when they know a politician to be a friend.  Many Indians want to be that – a politician and supposedly spend a life worrying about the people of the country.  What rubbish!

To have a majority of the people wanting to be politicians is an insult to a country and its politics.

A politician must spend no more than 10 years of his life in politics.  He/ She must then retire and try to earn a living like the rest of the country does.  I think a decade of self less service is good enough.  Why would one give more time to this?

Countries stink because the same politicians have been stinking the country for too long.

© Nitesh Kotecha

To Wonder

To crush and to ridicule one, people may try

But it does not make sense to wonder

All the what which where when and why?

Some scheme and connive, some may even lie

But it does not make sense to wonder

Why lesser mortals don’t change till they die?

To improve or to destroy? Even God gives a sigh

But it does not make sense to wonder

In which manner did God cut the pie?

'm scribbling these lines to you my children

Just keep smiling and don’t you ever cry

In this world it is no wonder

We go forward only if we try try and try

© Nitesh Kotecha

No One Killed the Indian Mutual Fund Industry

The Indian Mutual Fund Industry is in bad shape.  Is it really in trouble?  I would like to disagree.  This is one opportunistic industry which has always benefited from outsmarting investors by selling dreams instead of genuine products.  Here are some facts

The Association of the Indian Mutual Fund Industry has released data last week that the top 250+ distributors of this Industry have earned a total Rs 18600 million in the financial year 2011-2012 up from Rs 1770 million in the previous year.  The increase in profit has come despite the fund houses increasing their pay out commissions by 5%.

This is not an industry which is in trouble.  However, the MF industry is a cry baby and has Godfathers in the Government who have a vested interest in this industry.  Most Politicians route their illegal holdings through Mauritius and this money enters the MF Industry via the Foreign Institutional Investors route.

Readers of this blog are advised to look at expense ratios of each fund they opt for.  The MF industry has just received a go ahead from its regulator to increase its charges by 0.25%.  This is a net increase of 11%.

Stick to funds that charge minimum amounts as expense ratio.  Stay away from brokers who try to sell you the funds.  Be careful of every IPO that the fund house brings in.  A new IPO is allowed an expense of 6% as its initial costs.  These are nothing but the salary hikes that they need to pay their fund managers.   As an existing fund cannot charge in excess of 2.25% as expenses, the fund houses come out with IPOs to pay this money to their expensive fund managers.  The period between 2003 and 2007 saw this string of IPOs that were just rubbish.

Remember, any fund charging anything in excess of 1% as expenses, is expensive and you need no pay that kind of money for a mutual fund.  Stay away. Stick to funds with lower expense ratio.  If your broker is selling you this kind of junk, don’t buy and close your account with him.  You don’t need an expensive fund and neither do you need a greedy broker.

Happy Investing!

© Nitesh Kotecha

On Death And Dying

Death is inevitable, something that will touch every one of us at some time – no matter how hard we try to avoid the thought or pretend it’s not there.  It is something that people don’t wish to talk or think about and yet it is as certain as our birth.

The greatest fear in human beings is the fear of the unknown.  What happens to me at death?  The cause of this fear and confusion stems in not knowing who or what “I” am.  We feel “I” am dying thinking “I” to be the body.

When I realize “I” am not this body, then I free myself from death altogether.  I am immortal, eternal and I leave this body when the part I have been playing is over.  Remember, the senses (smell, touch, taste etc) are the instruments of consciousness, but not consciousness itself.  Whatever we can experience from sense objects will not give experience of immortality.

We experience sorrow when something is taken away from us and yet we know that everything in the world is perishable.  It is not that we should not enjoy the things and the people around us.  We are actors on a stage.  The world is a drama and we souls are acting through our bodies, playing our part with other actors, using the props, and choosing scenes of our choice.

We must learn to live in the present enjoying each moment realizing the overall plan of this drama.  We wonder at the intricacy and precision at which each action brings an equal and opposite reaction.  This theory of cause and effect, action and reaction, is the basic law of life, both on physical and metaphysical planes.

This understanding also helps us to face the loss of a loved one.  We must realize that we were playing a part together with someone and now, that scene is over.  It is the possessiveness of things and people that causes sorrow.  This is also called “Maya” or illusion of life.  It is because of Maya that we experience grief, sorrow, emptiness and loneliness.

When somebody’s part is over, we fell that we have lost that person’s love and comfort.  But, it was never yours.  You are fortunate to experience that person’s love or comfort just as you are fortunate to experience the warmth of the sun’s rays or the coolness of the water.  We cannot control the coming and the going of a person more that the rising and the setting of the sun.

Neither money nor power nor prayer can stop the eternal flow of Life and so we must learn to flow with it.

© Nitesh Kotecha

Don’t Let Yourself Be Hurt This Time

The gazelle slowly walked 

As her mother patiently talked

"We are the lion's meat

Everyday is not so neat

Calm your senses as you eat

For the bell will ring

And loud will be the chime

Don’t let yourself be hurt this time"

Don’t let yourself be hurt this time

Don’t let yourself be hurt this time

The boy quickly shook

As his father gave a last look

"I know I have been rude

'm sick 'n can’t have any food

Gimme a hug 'n make me feel good

For the bell will ring

And loud will be the chime

Don’t let yourself be hurt this time"

Don’t let yourself be hurt this time

Don’t let yourself be hurt this time

© Nitesh Kotecha

Old Wine - Computer Education in India

The world is different place now then at the time when I attended school.  Today, social networks and mainstream media are an integral part of all communication that takes place – whether it is Business, Politics, or Social Life.  However, the state department of education has participated just a little.

Teachers, Educators, Parents and Students do understand how learning is changing.   However, I am of the opinion that the involvement is just not so large enough, for our schools in India.

Many students are immersed in social networks and cellular technology outside of school life, and there are not enough adults in their lives who can guide them as to how they can use those connections to learn.  Our access to information, people and ideas is exploding on the net.  However, the education system in India has had this inability to recognize the paradigm shift.  The Education Boards do not fully understand the learning process that are needed for learners who want to share their knowledge and interests. 

The syllabus and course material does attempt to integrate the net and media with the way we learn, BUT, the examinations and their formats, together with state education board politics ensure that such 21st century skills do not amount to much.

My stay in USA had me interacting on the UNiX software by AT&T.  There was no graphic user interface.  Communicating was cumbersome (If you wanted to chat with somebody at a site - say school.com, you had to use for a command a word that was rather inappropriate - “finger xyz@school.com”!!!)

The net is now easy.  However, this ease does not necessarily guarantee education and growth.    The content on the net is much, but essentially that work reflects what we were doing with pen and paper.  The medium of publication has changed and nothing else.

21-century skills are just not possible for schools that are run by archaic school education boards which in turn are controlled by politicians and antediluvian academic dinosaurs.

Here are some thoughts:

- Mathematics is taught beautifully on the internet, free of charge, by the Khan academy (www.khanacademy.org).  I wish I had learnt to tame this monster this way.  Why cannot school children “officially” learn their material from websites such as these?

- I have downloaded dance numbers and videos that explain economic theories!  It is fun!

- School going children and schools must publish their own teaching skills at their own websites.  All school going children must have their own blogs at the school website where they are encouraged not only to share know but to also develop their own content.  The school webmaster can surely monitor the content.

Our ability to easily publish content online will force us to rethink the way we communicate with students, the way we deliver our curriculum and the expectations from the next generation.  Likewise, Teachers and Professors must publish their own content on blogs and encourage participation from students.

- Blogging on school websites allow children to have an audience and thus the children may grow to be more confident.

- Publishing self-content will force the children to have better critical, writing and analytical skills.

It is understood that the above model suggests a school which has funds and has children whose parents can afford the higher expenditure.  This is ok.

© Nitesh Kotecha

Goodbye Mr. Finance Minister, Thank You For Nothing: Lessons From A Bad Leader

The past week saw a resignation from India’s Finance Minister.  In all honesty, let us begin with the positives concerning this man:

He is a highly learned man with a complete knowledge over law and governance.

He adorns an amiable nature and can reach out to any person including members of the opposition.

Let us now focus on the number one reason for his survival and dominance in politics – He was Mrs. Indira Gandhi’s most ardent devotee.  Pure and Simple.

India’s economic deterioration over the past three years can be solely attributed to him.  He was a complete failure and has left the country in a deep crisis.  Most of our economic indicators are worse than 1991 – corruption, inflation, current account deficit, fiscal deficit etc.  Every sector of the country is in crises – Agriculture, Industry and Services.

This is a blog about purity and prosperity.  Politics and Politicians have no permission to stink up this blog.  However, we will discuss this person without getting political.

He was never the leader.  This is because people know who the real leader is.  No, it is not the Prime Minister, which it should be - logically speaking.  It is the Chairperson of the Coalition Government.  The Chairperson does not understand finance or economics.  The primary task of the chairperson is to stabilize government and ensure the return to power.


Herein lays the conflict – good economics v/s the desire to remain in power.  (Have you  noticed that politicians want to come to power – they never want to come and govern!)

The leader is never concerned about hierarchical position – the only concern is about being effective.  The current prime minister was working under the finance minister in the 1980s as the Governor of The Reserve Bank.  The situation reversed in 2009 wherein the Governor became the Prime Minister and the Finance Minister was still the Finance Minister!  This fact created a communication logjam between the two people and so we had a finance minister working independent of the Prime Minister and India suffered as a result.  The FM must now surpass the PM and so the nomination for the President’s post.

The Finance Minister was a sour-puss and a bad loser.   Leaders cannot afford to have that kind of a reputation -they need to earn their respect.  The Government of India lost a prestigious taxation case against a telecom company.  The Supreme Court verdict was very clear.  The FM amended the law with retrospective effect from 1962 so that he could win the case.  What kind of a leader does that?  The PM had given an assurance to his counterpart in the United Kingdom that India would not collect any retrospective tax but here was his FM doing exactly that!

The President of India is a titular head with little powers.  No great leadership is required for this post.  I guess it suits fine for the FM.

It is rumored that when the chairperson of the coalition government announced the FM’s candidature, the person who clapped the loudest was the PM.

Let us celebrate to that!

©Nitesh Kotecha

Alone

My dear children

Whichever road you may choose

You could win or you could loose

Either way

You must learn to walk alone

This world is your playground

You could play or just go round n’ round

Either way

You must lean to run alone

You may have no room at all

You may have your back against the wall

Anyway

You must learn to crawl alone

I could go on and on

But its time that I move on

I will always be there for you

But, you must learn to think alone.

© Nitesh Kotecha

Mathematics By Rote

Believe me, I knew my algebra, the rational (and the irrational) numbers and how to find the hypotenuse!

Nevertheless, herein lays the problem for me at school.  Why on earth was I working so hard at my algebra?  I could never understand for the life of me the purpose of learning the algebraic identities, the rational number sequences etc.  Why does one need to know by rote the properties of rational numbers?

My issue was that Students need the Teacher to explain to them the use of such techniques and bridge the gap between the textbook and the real life.  (AC)^2 = (AB)^2 + (BC)^2  by itself just did not work then, at least not for me.

Our Mathematical questions did have some practical connotation "If a rope of length so and so is laid alongside a wall of length...etc" but believe me; these problems were taught in a mechanical fashion like "If the word problem contains length of a rope or a shadow, use the Pythagoras formula to solve the problem..."

Here is some more.  CBSE pedagogy prescribed the deduction of a "half a mark" for not writing the abbreviation "Ans" at the last line. Likewise for the letters "QED" at the end of the theorems. My teacher would warn us that the Board would deduct such marks and we should be careful about it.

I am sure all here will reflect on this ludicrous emphasis that the Board put, in order to ensure that we have this clerical mentality and penchant for the silliest and the most insignificant details on earth.  It is this attitude that reduced Mathematics to a rote.

A word now, for my Math teachers.  I perfectly understood, later, that it was impossible for them to do what I thought they should be doing.  The number of students, course syllabus, CBSE rules and rituals, etc., binds the teachers.

So, as much as I would like to absolve my teachers, Mathematics and the CBSE still deserve every invective for the way the subject was designed in the 1970s!

Yes, Mathematics still needs to grow up and solve its own problems.  If it needs our assistance, then it better make efforts to convince us that it shares a symbiotic relationship with us students! (He He)

I have a copy of a text book on mathematics for Grade 8 by Orient Blackswan.  I will write for here, word for word, the manner in which it introduces the topic on rational numbers

"There is a need to extend the number system to find answers to problems like 1/3 - 1/2 or 5 divided by 3.  Just as we extended the whole number system to the left of 0 to get negative integers, we now extend the number system to so as to include all fractions.  In this number system, corresponding to every positive fraction to the right of Zero, there is a corresponding negative fraction to the left of Zero.  Thus:

-1/3 corresponds to + 1/3 and so on.  We call this the rational number system."

There is nothing wrong with what is written above except that it is as boring as steamed rice.

The text mentions, "there is a need to extend the number system..." This is an assertion, which can sound unconvincing to Grade 8 students. I am sure somebody can do a better job of making the use of this subject matter more interesting for students.

Now, for a little bit of my experience with mathematics in USA.  My Professor was from Russia.  When he taught us mathematics, he made it clear that he is not interested in "Mathematical Regurgitation" (He actually had another word for "regurgitation" but it would be inappropriate for me to use it on this forum).  He was of the opinion that "Mathematical Regurgitation" is something Asian students love to do.

He insisted that all problems are to be solved to a simple level and not to its simplest level.  This meant that once we had reached an answer (say) 3 + 2, we were advised to stop working on this problem and move ahead to another problem as the answer 3 + 2 is simple enough. There is no need to total it to 5.  And here is the best part - He said that he would deduct a mark for writing 5 as the answer as we would be wasting time and not adding any meaning to what was already simplified as 3 + 2.

This system is markedly different from our Indian counterpart.  In my opinion, the Indian draconian system of marks allocation, for every significant and insignificant step of the mathematical problem, is more an extension of the latent desire for power and domination that many in the education department and government harbor (apart from imparting a petty and clerical mentality on students).

The math class in USA eventually prepared us for a level where we understood the implications of calculus on financial statements, how algebra is a must for a newspaper layout editor etc.

Therefore, the point is that the system in USA put a great deal of emphasis on "knowing the subject at hand and enhancing one's ability to solve one's problems by using mathematics".

I consistently use Calculus for my management accounting and financial reporting work.  However, one can argue that this is all at graduate school level.  However, I am sure, similar simple practical uses can be demonstrated to students in primary and secondary schools so that students clearly understand their own need to study mathematics.

© Nitesh Kotecha

Lessons From Nokia – The Customer Cannot Be Damned!

What was the most successful European company of the 1990s?

Easy. The Finnish mobile phone manufacturer Nokia Oyj.

And the most disappointing one of the 2000s?

Easy again. Nokia.

Nokia is in the news lately.  It is probably up for sale.  Samsung has given it the thumbs down and Microsoft is discreet about it.  However, this blog is a part of a series of articles on what we may learn from Nokia and how they brought about their downfall.

Nokia did not respond to the Market and the Customer.  This is a violation of everything we learnt in Marketing 101.

Nokia was so focused on sameness that it assumed that a Nokia user either calls people or sends a text message.  There is not much variation between the Nokia 6600 (2003-2004) and Nokia N8 (2010).  By variation, I mean not in terms of how the camera graduated or the processor evolved.  Look at the basic layout of the Symbian Operating System in both the cases.  There is nothing exciting about it.

Nokia cell phones did not have the ability to block a call or a text message.  One had to resort to expensive apps.  How could Nokia not have figured this out?

Well only one way – “The Customer be damned.  We are Nokia”.

Nokia had this huge range of cell phones that essentially did the same thing.  This is a con, on the consumer, who is now under the illusion that there is a wide range of the Nokia cell phones available as a choice.  Have we not heard before that “Less is More”.  Look how Apple is handling its range.  It is focused and concise.  Samsung is doing what Nokia did – throwing out this huge mindless range of cell phones where there is not much of a difference in what the cell phone does.

Nokia cell phones were expensive.  People paid top dollar for it.  Should the company not have focused on delivering value to the customer?

© Nitesh Kotecha

Your Broker As A Cheat (Part 13)

I have frequently reiterated to the readers of the blog the possible collusion between merchant bankers, brokers and sub-brokers and stiff the public with high priced stock or junk stock.

Let us talk today about the Indian IPO market.  Reliance Power Limited, in my opinion, was the reason for the beginning of 2008 stock market crises in India. Most of India’s merchant bankers and who’s who in the IPO business, created this hype and glory about how this stock would change your fortunes.  Many brokers and sub-brokers assured their customers that the stock would list at four-digit figures despite an initial high price of Rs 450/- per share.

Here are some more details, mostly from gossip and grapevine.  The people associated with this fraud decided to spread the message by spending millions on a campaign.  The campaign included the grey market operators who initially bought the shares for a premium of Rs 3000/- per share application. This amount got many investors curious.  The operators then decided to move the premium up to Rs 5000/- per share application.  The Indian public got crazy about the stock and began fantasizing about the price at which the stock would list.  The operators then decided to move the price up to Rs 7500/- per share application.  This was done near about the application date.  The people of India soon decided that they were about to hold the bluest of the blue chip stocks.

The Draft Red Herring Prospectus clearly listed the fact that it would be eight years before the company would go operational.  However, Indians lapped up the issued.  The share listed poorly and is quoting today at 25% of that value.

Further attention is drawn towards SKS Microfinance, DLF, etc.

Did your broker sing you a song about these stocks?  If so, you may want to rethink about the quality of information he/she may dish out to you.

© Nitesh Kotecha

The Amorphous House

Our past, in some way, gives a certain direction to the future.  We all must bear the burden of our past, for all those who do not remember the past are condemned to repeat it.

It is this idea that has fomented a series of linear, non linear, and tangential  thoughts in my mind which I would like to share.

We all live in houses with four pillars defining the area covered.  This rather amorphous house (the subject of this short story) is short one pillar.  Why do I call it amorphous?

It is necessary in the house that the pillars remain equidistant from each other, in order to maintain symmetry and balance.  It is not so and therefore the house is amorphous.

The house tilts as a result, precipitating a need for external support.

A single bamboo shoot supports the house today.

Bamboo shoots support houses made of bamboo and not of cement and brick.

Bamboo shoots cannot guard against cyclones.

Common sense says a house of cement and brick is much stronger than a house made of bamboo.

Worms gradually eat into the bamboo making it weaker and hollow.  We cannot blame the worms.  Bamboo is of use to them.

Bamboo shoots break when a concrete house leans on it.

It is not the function of the bamboo to support the house of cement and brick.

The residents of the house cannot see the house tilt.

They cannot see because it is dark.

It is dark because there is no light in the house.  Worms thrive in the dark.

There is no light because the electricity has been turned off.  In addition, the shutters have been pulled down on the windows.

The residents pride in their ability to see in the dark (like bats).  Unlike bats, they stumble and fall in the dark.  Scars, bumps and abrasions prove this.

The light is barred from the house because it blinds the residents.

Reality surfaces when there is light.

Reality exposes all illusions and breaks all dreams.

It is essential to differentiate between vision and a dream.  Vision is a flower on the stem of reality, which in turn, is rooted in life.

© Nitesh Kotecha