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KERENG/2002/6803

VOLUME 11 ISSUE 2 FEBRUARY 2013

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EDITORIAL

Vol 12 Issue 2 February 2013

why we need a more professionally inclusive government

Managing Editor Jason D Pavoratti Editor John Antony Director (Finance) Ceena Senior Editorial Coordinator Jacob Deva Senior Correspondent Bina Menon Creative Visualizer Bijohns Varghese Photographer Anish Aloysious Correspondents Bombay: Rashmi Prakash Hyderabad: Iqbal Siddiqui Delhi: Anurag Dixit Director (Technical) John Antony Publisher Jason D

USA recently grabbed world eyeballs for coming up with a new legislative proposal. Award green cards for all those who complete a postgraduate degree in science, technology, engineering, or maths, the so-called STEM fields, from any US University.

Indian and Chinese media were suddenly abuzz with excitement, with commentators from both countries claiming that the largest beneficiaries would be students from their own countries.

Very true. But the excitement was as though India and China were going to be the beneficiaries.

Far from it. Here is what Republican Lamar Smith, the chairman of the House Judiciary Committee, and the proponent of this bipartisan proposal had to say, “Cannot afford to train these foreign graduates in the U.S. and then send them back home to work for our competitors.”

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Now, that is what is called foresight. Remember, these are the same legislators who would oppose any move to allow more H-1B or other employment visas to the Chinese or Indians.

Secondly - and this is the key point -US policymakers foresee that it is leadership in science and technology that will create long-term value addition to the economy, nation, and standards of living.

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But that is not the issue. America is awakening to the supreme realization that they need to steal young talents in STEM from the world over, and make them US citizens, if they are to sustain their global economic leadership that still now seems invincible compared with the rest of the world.

Focus on pilfering global STEM talent also reveals two other aspects. Firstly, America can take care of its own in other core developmental academic fields like economics, management, business etc. Affluent American youth is not keen to pursue academically tougher fields like science, engineering, & maths.

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Competitors. That is how US views China and India. Period.

Maybe this is an inevitable backlash to the first decade of this millennium, when economists, bankers, and businessmen emerged as the new key leaders of world society. That emergence, in turn, was natural, emerging from a decade (1990-2000) that ended with Y2K debacle and started off with the dotcom burst of 2000-01.

But are we having too much of economists, bankers, and businessmen, these days? India has so far aped US in this regard, and looks ripe for a US-like course correction. The newfound American love for STEM was accelerated by the dubious role economists, bankers, and big businesses played in the 2008 financial crisis.

The problem with economists and bankers is as the saying goes - if all

you have is a hammer everything looks like a nail.

Just look at the way even the Indian media and public mindspace have been hijacked by these economists and bankers, during the last several years.

What is our biggest problem? Anyone who reads newspapers or watches TV would blurt out - Fiscal Deficit.

Our second biggest problem? Current Account Deficit. And what can be done about them? Government should turn its fiscal levers and the central banker should turn its monetary levers.

Bullshit. When earlier in our history have we sat as a nation, eager to know whether the RBI Governor would be kind enough to turn his interest lever a notch down on a particular date? And applaud when he invents smaller and smaller increments to do it?

Bullshit really. Is that our big problem or our big solution?

Absolutely not. But our economists and bankers have conditioned us to believe this kind of crap.

What is really our big problem? Zero innovation. What is the only solution? Innovate aggressively.

When was the last time economists, bankers, lawyers, or activists invented anything?

Starting from the humble wheel, none of the human inventions that prospered the world, like - tools, printing press, fertilizers, automobiles, electricity, anaesthetics, light bulb, telephone, antibiotics, television, computer, space science, internet, and mobiles - were by any of these guys.

At best, the only thing that economists and bankers successfully invented was modern fiat currency in the 1970s, by which money lost its intrinsic value or convertibility to gold! And in a sense, that led to all the subsequent asset bubbles and crashes including the tech bubble/bust, realty bubble/bust, derivatives bubble/bust, and the ongoing gold bubble that is yet to burst.

And what has lawmakers and lawyers ever invented? Tons of jargon, and a maze of legalese that ensures that the common man will never master it enough to obtain justice, even while the ‘adjournment machinery’ ensures that it is a profitable profession for all involved.

This is not to degrade any profession - be it economists or

lawyers. But it is high time that the society realizes that economists, lawyers, or bankers alone can’t solve our problems. At best what they can do is administer professionally, and tweak the system a bit when necessary.

They can never be expected to invent or even innovate.

That is why we need a more inclusive government of scientists, engineers, and mathematicians. Just think of the enormous inspiration that was unleashed when Dr. APJ Abdul Kalam was made the Indian President. Reading his ‘India 2020’ is a refreshing change, as that is about progressing as a nation through science and technology, by using innovations like wind power and solar energy, and not about progress through tweaking interest rates.

Similar was the case when Rajiv Gandhi followed technocrat Sam Pitroda’s suggestions to unleash the telecom revolution, much earlier in the country. A more recent example is how rapidly and smoothly software technologist and Infosys co-founder Nandan Nilekani implemented the Unique Identification (Aadhar) system.

Distinguished railway engineer E Sreedharan is another glowing example, who as Metro Man, was pivotal in the success of Delhi Metro and other such projects. Sreedharan continues to be in demand, even in his senior age, having been inducted by Tatas as a Board Member in one of their Trusts, apart from his professional service in Kerala.

In a brilliant October 2012 article, titled, ‘Why We Can’t Solve Big Problems‘, Editor of MIT Technology Review, Jason Pontin compares the Apollo Program that put the first ever men on Moon with the history of innovation since then. He rightly finds that compared with the Moon Mission, nothing since then has ever come close in human achievement. Pontin attributes it to several factors like, President John F Kennedy’s ambition to defeat arch-rival USSR, huge public funding, a coming together of diverse scientific and engineering talent pool, public-private partnership, and military style administrators for the project.

Apollo is said to have achieved in 10 years what was destined to take a 100 years or more.

Feats such as that are possible by India too in more productive fields. But it needs a lot more than economists, bankers, and lawyers. Are our political leaders listening?

John Antony

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Contents 2012 has gone down in history as a shocking year in which several flamboyant businesses fell like a house of cards, while hundreds of other companies miraculously rose from ashes like the Phoenix bird. For every Kingfisher Airlines and Deccan Chronicle that fell, there were Phoenixes like Wockhardt and Kolte-Patil. There were also several players like V-Guard and Puravankara Projects who improved their performances beyond market’s expectations, and soared solely on that outperformance. Sector wise, the most impressive turnarounds were by realty, jewellery, consumption, electricals, banks, and NBFCs. Strategy wise, what market applauded this past year was companies who de-leveraged significantly. Debt finally became a bad word. Many companies which waited patiently for significant policy changes like FDI in multi-brand retail and aviation, benefited.

World Stunned by India's Gold Craze Even investment pundits like Warren Buffett is baffled by the rise of gold. Everything Buffet and his ilk of gold bears are saying is..

And You Thought There was Only One Kind of Home Loan In case you didn't know, there are at least 10 types of home loans.

"I am My Father's Daughter" Meet all-India CA topper Prema Jayakumar, whose father Jayakumar Perumal drives an auto rickshaw to make ends meet, and find out what inspired her despite all odds

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Don't Buy Any Car Now,19 New Cars Coming!

2013 will witness what is perhaps the largest number of new car launches ever in this country. These include new international brands..

15 Evergreen Rules for Stock Market Wealth Creation Morningstar's Chief Equity Strategist Paul Larson outlines the stock-investing principles that..

Top 5 Smartphones & Phablets Coming up in 2013 Many phones and phablets (phone+tablet) will be launched in the next three months, but the ones here have been anticipated for long, and they are very important phones..

Best Unknown Outbound Tourist Destinations for Indians SBT is in a Sweet Spot

Not many banks of its size gets around Rs. 95 crore daily as NRI remittances. State Bank of Travancrore has not only managed this feat during the last quarter, but is putting that money to good..

There are destinations that most outbound Indian tourists have visited, like Dubai, Singapore, UK, US, & Australia.

But world tourist map has a lot more to offer. Here are 9 relatively less popular destinations among Indians, but thronged by discerning international tourists.

Role Model Businesswomen Touching Thousands of Lives

One study of law students found that when they were feeling more optimistic, their immune system was stronger. To increase your optimism, take time to savor the..

If you’ve taken an education loan, you have reasons to cheer because you get double benefit from it. On the one hand, it gives you or your..

Meet the Boy Who Landed a Google Job with Rs. 1.16 Crore Package

Why Indian B-Schools Fare Poorly in Global Ratings?

The only two management schools from India that made it to the global rankings have slipped down further from last year. Hyderabad-based..

Rushabh Agrawal, an alumnus of BITS Pilani was recently offered a job at Google for a package...

CHANGE OF GUARD

The decision-makers who selected SS Mundra for the top job at Bank of Baroda seems to have done an exceptional job.

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PNB has already wakened up to the realization that loans can be given much more prudently than earlier..

Education loan gives you a tax deduction for eight years

Strengthen Your Immune System

A Veteran Back at BoB, Now at the Helm

PNB’s Prudent Plan to Battle the Banking Crisis

Can Karl Slym Rev Up Tata Motors?

Winds of change are not just blowing at Tata Sons. Soon after Ratan Tata has quit the leadership role at Tata Group, with may be his deepest disappointment being the lacklustre performance of Nano..

SEASONAL MAGAZINE

T R E N D S

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WORLD STUNNED BY INDIA'S GOLD CRAZE

By Douglas French

Even investment pundits like Warren Buffett is baffled by the rise of gold. Everything Buffet and his ilk of gold bears are saying is right, except the price. For example, nobody can answer the Oracle of Omaha's continued assertion that gold is not productive. It is not. But the prices? In fact, if Buffett had invested in gold, even in 2012 begining, he would have fared better in wealth creation.

But he didn't, and lost out, as he and countless other stock and fixed-income fans don't know a thing about India's craze for gold. But inside India, even the Finance Ministry and Reserve Bank of India are having sleepless nights over the import of this one item, as it remains a formidable hurdle in reining in the country's fiscal deficit. ess than 1% of the world’s gold is mined in India. The rest comes from somewhere else. Still, India can’t get enough. It is the largest consumer of gold in the world, buying nearly a third of production in recent years. Some estimates say that 10% of all gold is held in India.

paper instruments such as gold accumulation plans, gold pensions, and gold-linked accounts, it will drop its obsession with the barbarous relic.

Indians save roughly 30% of their income, as opposed Americans, who save 5%. Plus, Indians are getting richer all the time. Once a very poor country, the rich and middle classes now outnumber the poor in this nation of 1.2 billion.

The country has the sixth-largest economy in the world. If people are left alone, high gold demand going forward is a lock.

Well, good luck with that. The people of India have cultural, historical, and traditional reasons to buy gold. They consider it the most valuable asset there is. Indians want to own gold like Americans want to own houses.

The Reserve Bank of India (RBI) has produced a report indicating “a need to moderate gold import, as the insatiable appetite for the yellow metal could jeopardize economic stability,” reports BullionStreet.com.

So the Indian government and its central bank are trying to get people to buy other financial products. “There is a need for banks to introduce new gold-backed financial products that may reduce or postpone the demand for gold imports,” the RBI report said.

The central banking wonks are thinking that if the Indian public can be made aware of financial

Ganesh Rathnam related a story that explains India’s gold obsession. When his father, a pediatric surgeon, wanted to buy land to build a new clinic, he mortgaged his wife’s jewelry to raise the purchase money. “Similarly, millions of people in India have capitalized their businesses or farms, or secured their basic necessities after severe business reversals, by pledging their gold jewelry,” he writes.

Last year, 60 Minutes ran a segment, “India’s Love Affair With Gold.” Correspondent Byron Pitts was stunned that the Indian people consider gold purchases as savings.

Indians do not believe that they are spending when they buy gold, but, instead, that they are putting their money in a savings account.

Oftentimes, a savings account that is worn around the neck or wrist.

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Yet India’s policymakers are disturbed. Yellow metal purchases have widened the country’s current account deficit to 5.4% of GDP.

A leading Indian trade body said country’s gold imports could fall to just 550 tonnes next year, little more than half of the peak of 967 tonnes in 2011.

There are 22 official languages in India, so

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there are 22 ways to say gold. And nothing says gold in India like a wedding. Half the country’s gold purchases are for wedding jewelry. It is said in India, “If there is no gold, there will be no wedding.” Gold must be widely owned, because there are 10 million weddings a year. Some are extravagant affairs that last for days on end.

Parents start accumulating gold for their daughter’s wedding day as soon as she is born. This gold represents some financial security that the bride brings to the union. It also gives the bride some economic status in the relationship. And while it provides security, gold is hardly ever sold, but instead passed on for generations. But it can be mortgaged if needed.

Gold is a symbol of purity and is considered sacred, but also signals prosperity. Jewelry does the talking and gold speaks loud and clear. Not for vanity’s sake, however, as gold is considered honorable. You can’t have a family without gold. The yellow metal is a way of life.

A gold analyst told Pitts that it’s impossible to explain to an Indian that gold might go down in price. Indian society has been around a few thousand years. People learn a thing or two in that time. First, save money for the unexpected. Second, don’t trust banks.

And third, don’t trust the government’s paper money. They’re not interested in mutual funds and other financial products. Even the poorest people in India buy gold, saving a little each week to buy a gram at a time.

SEASONAL MAGAZINE

“Gold has a rich tradition in the Hindu epics, the Ramayana and the Mahabharata,” writes Rathnam. “It was associated with the pomp and splendor of the gods and kings who appear in these mythological stories.”

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He explains that silver coins were widely used in India during the reign of the Mauryas circa 250 B.C., and the first gold coins were issued widely during the Gupta dynasty around A.D. 250.

India has been a collection of kingdoms and fiefdoms often at odds. Gold was easily hidden, “enabling ordinary

An Indian gold expert recently told, “If India sneezes, the global gold industry will catch a cold.”

MONEY O

citizens to avoid being looted by marauding armies,” Rathnam writes.

The kings changed, as did the coins, and thus gold became the preferred medium of exchange and store of wealth.

After India’s foreign reserves were decimated by its war with China, the government instituted the Gold Control Act of 1962, which forbade private ownership of gold bullion and forced all bullion to be turned into jewelry.

In the 1970s, tax rates reached 95%, and the Indian currency, the rupee, plunged in value. Indians took to not only hiding assets from the taxman, but also trying to survive inflation. Gold and real estate were the chosen vehicles. Rathnam also points out that bank deposit insurance in India is the equivalent of just over $2,000, making bank deposits a risky asset.

Barrick Gold

But finance minister Chidambaram Palaniappan doesn’t care about tradition or prudence. He sees gold purchases as consumption that has contributed $64 billion to the country’s widening current account deficit.

Goldcorp

While the average Indian loves gold, the country’s bureaucrats do not. The numbers tell the story. The Indian government owns only 360 metric tons, while private gold holdings are estimated to be 15,000 metric tons. It is, indeed, the people’s money.

An Indian gold expert told 60 Minutes’ Pitts, “If India sneezes, the gold industry will catch a cold.”

The government is trying to make it sneeze, but the people are wise.

Thousands of years of tradition will likely keep the gold market healthy, no matter how much the politicians hate it.

(The author Douglas French is a Senior Editor for Agora Financial.)

Country: Canada Revenue in 2012: $14.3 billion Profit in 2012: $4.5 billion Assets in 2012: $48.9 billion Overall rank: 1

Country: Canada Revenue in 2012: $5.4 billion Profit in 2012: $1.9 billion Assets in 2012: $29.4 billion Overall rank: 3

Newmont Mining Country: The United States Revenue in 2012: $10.4 billion Profit in 2012: $400 million Assets in 2012: $27.5 billion Overall rank: 4

Newcrest Mining Country: Australia Revenue in 2012: $4.4 billion Profit in 2012: $1 billion Assets in 2012: $18.3 billion Overall rank: 5

WHO MAKES MOST OUT OF INDIA'S GOLD CRAZE? Of course, no Indian company fares in this list - of World's Largest Gold Companies - as India has no large scale gold mining company. Even Bangalore based Rajesh Exports which is the world's largest producer of gold jewellery, and India's largest exporter of the same, is smaller than the smallest in this list, by turnover. And Rajesh Exports is not a small company by any means, clocking a revenue of Rs. 25,700 crores in FY'12.

The list is dominated by Canadian companies, followed by American firms, and then by South African firms. Even China has a member in this elite club of producers. Their profit margin too is surprisingly strong at over 30%, whereas Rajesh which prides itself as the world's lowest cost jewellery producer clocks only less than 2% profit. Here are the companies thriving due to India's insatiable gold demand.

Iamgold

Country: South Africa Revenue in 2012: $5.9 billion Profit in 2012: $1.3 billion Assets in 2012: $10.7 billion Overall rank: 6

Gold Fields Country: South Africa Revenue in 2012: $5.2 billion Profit in 2012: $900 million Assets in 2012: $10.3 billion Overall rank: 7

Yamana Gold Country: Canada Revenue in 2012: $2.2 billion Profit in 2012: $500 million Assets in 2012: $10.8 billion Overall rank: 8

Kinross Gold Country: Canada Revenue in 2012: $3.9 billion Profit in 2012: N/A Assets in 2012: $16.5 billion Overall rank: 10

Freeport-McMoRan Country: The United States Revenue in 2012: $20.9 billion Profit in 2012: $4.6 billion Assets in 2012: $32.1 billion Overall rank: 2

Buenaventura Country: Peru Revenue in 2012: $1.5 billion Profit in 2012: $900 million Assets in 2012: $3.8 billion Overall rank: 9

Country: Canada Revenue in 2012: $1.7 billion Profit in 2012: $800 million Assets in 2012: $4.4 billion Overall rank: 11

Eldorado Gold Country: Canada Revenue in 2012: $1.1 billion Profit in 2012: $300 million Assets in 2012: $4.4 billion Overall rank: 12

Polyus Gold Country: Russia Revenue in 2012: $1.7 billion Profit in 2012: $300 million Assets in 2012: $4.0 billion Overall rank: 13

Shandong Gold-Mining

Photo: A Barrick Gold Mine

Country: China Revenue in 2012: $4.8 billion Profit in 2012: $200 million Assets in 2012: $1.4 billion Overall rank: 14

SEASONAL MAGAZINE

Anglogold Ashanti

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COVER STORY

SEASONAL MAGAZINE

Wealth Creator 2012, Who Remain Momentum in 2

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in 2013

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rs of

2012 has gone down in history as a shocking year in which several flamboyant businesses fell like a house of cards, while hundreds of other companies miraculously rose from ashes like the Phoenix bird. For every Kingfisher Airlines and Deccan Chronicle that fell, there were Phoenixes like Wockhardt and Kolte-Patil. There were also several players like V-Guard and Puravankara Projects who improved their performances beyond market’s expectations, and soared solely on that outperformance. Sector wise, the most impressive turnarounds were by realty, jewellery, consumption, electricals, banks, and NBFCs. Strategy wise, what market applauded this past year was companies who de-leveraged significantly. Debt finally became a bad word. Many companies which waited patiently for significant policy changes like FDI in multi-brand retail and aviation, benefited. Of course, all other cardinal principles of the market like above-average corporate governance and respect for small equity, still played the most crucial role in picking the winners. Seasonal Magazine brings you a unique list of wealth creators of 2012 who are still in momentum in 2013. To fine tune such a list what we have used is year-to-date price performance (from January 31st 2012 - January 31st 2013, which is also the latest Nifty expiry date), so that we deliver only wealth creators whose momentum is intact. We have also included more players from banking, realty, housing finance etc so that the direct beneficiaries of recent policy changes like interest rate cut are represented more. Of course, only a few in this list are trading at all-time highs. Most are still way off their all-time highs, which means many longer-term investors are still in losses here, but which also means these companies have only started their recoveries and that there might be room for significant improvement. Though this is a list rooted in the recent past to today, this is really a list for the future, and as such, we also feature some young scions of these corporations who have inherited this wealth creation legacy.

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Wockhardt

Yearly Wealth Creation: 369.34%

SEASONAL MAGAZINE

Was it just the successful execution of the CDR process? Of course not, as Wockhardt’s fundamental performance has improved, with quarterly net profit doubling within the last four quarters. Market re-rated the pharma scrip continually through the year-to-date, making Wockhardt soar from Rs. 372 to Rs. 1746 now. Even a change to T Group that limited short-term trading in the scrip was not enough to contain the Wockhardt rally. Founder and Chairman Habil Khotakiwala’s wealth creation legacy should be inherited by sons Dr. Murtaza Khorakiwala who is MD of Wockhardt, and Dr. Huzaifa Khorakiwala who is ED. Daughter Zahabiya Khorakiwala heads unlisted Wockhardt Hospitals.

Habil Khorakiwala, Chairman

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Dr. Murtaza Khorakiwala, MD

Dr. Huzaifa Khorakiwala, ED

Zahabiya Khorakiwala

Brigade Enterprises Yearly Wealth Creation: 30.67%

Rakesh Jhunjhunwala didn’t just invest in DB Realty. After years of being a famous realty bear, RJ changed stance overnight to capitalize on the low valuations of realtors, thereby spiking not only DB but the whole lot of real estate development stocks. But why did the Big Bull specifically go for DB? That in itself was enough to rally DB Realty stock from Rs. 57 a year back, to Rs. 136 now. DB’s performance too has improved during the last four quarters, with quarterly net profit going up by 3.6 times once. But only one-year old investors are satisfied now, as the scrip is still nowhere near to its alltime high of Rs. 540 soon after its IPO. Will Founders Vinod Goenka and Shahid Balwa’s strategies create wealth for long-term investors too?

Muthoot FinCorp Yearly Wealth Creation: 49.52% Muthoot Pappachan Group’s only listed firm outperformed many peer group and even larger NBFCs during the year-to-date, soaring from a low of Rs. 58 to a Rs. 125 now, with the momentum gathering towards the end of this year. Fundamental out performance, after Muthoot Capital sharpened its focus on 2/3-wheeler loans was the reason, as quarterly net profit growth at nearly 50% outpaced topline expansion at around 46%, during this period. The firm’s top management is noted for the relatively young age of its directors’ - Thomas John Muthoot, Thomas George Muthoot, & Thomas Muthoot - which makes it a dynamic team to watch out for, especially as there are larger NBFCs in their stable like Muthoot FinCorp which might go for eventual listing.

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DB Realty Yearly Wealth Creation: 123.61%

Bangalore headquartered Brigade is noted for its steady growth in the realty industry, as well as for its unique projects, both of which have garnered it various industry awards.

Brigade’s stock performance in the year-to-date was largely a reflection of its fundamental growth, reflected in its 49% surge in quarterly sales and 42% surge in net profit during the last four quarters. The market appreciated such steadiness by soaring the scrip from its year-todate low of Rs. 45 to Rs. 79 now.

The duo of MR Jaishankar and Githa Shankar are leading Brigade to new heights, but in their own signature style, reflecting their connoisseur tastes and social responsibility models. It will take time to scale back post-IPO all-time high of Rs. 428, but it doesn’t look impossible.

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V-Guard Industries Yearly Wealth Creation: 169.69%

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Even a stake sale by a promoter group entity was not enough to break the rally in V-Guard Industries.

Market couldn’t resist re-rating the scrip as quarterly net profit tripled within last four quarters. V-Guard stock soared from a year-to-date low of Rs. 168 to Rs. 485 now.

Above average corporate governance practices also helped.

But Founder Kochouseph Chittilappilly is not just an industrialist, but a humanist who made waves for kickstarting a kidney donation program in Kerala by donating his own kidney. His wealth creation legacy should be inherited by son Mithun K Chittilappilly who is MD of V-Guard.

Kochouseph Chittilappilly, V Guard Industries Ltd

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Mithun K. Chittilappilly V Guard Industries Ltd

Jubilant Foodworks Yearly Wealth Creation: 32.72% Dominos Pizza is hot, but is it really that hot? Anyone who has watched Jubilant Foodworks would have that doubt. The stock soared from one obnoxious valuation to the next, much to the chagrin of valueinvesting crowd, on ideas like zero debt, good governance, and an impressive growth model. Add to that Dunkin Donuts - even if it will take years to fructify - and market kept Jubilant at well, obnoxious valuations, itself.

Oriental Bank of Commerce Yearly Wealth Creation: 33.69% Oriental Bank maintained a reasonable level of performance in revenue and profit, both with a positive bias, during the year-to-date.

Then came the surge in banking stocks, and investors took Oriental Bank stock to impressive highs.

The year was not perfect for Indiabulls Group, rattled with a hostile report from Veritas. And Indiabulls Financial stock was projected as one of the severe casualties due to the better valuations it enjoyed. But it goes to the credit of Sameer Gehlaut and Gagan Banga that it has not only rebounded powerfully, but has become one of the largest housing finance companies in India.

Kolte-Patil Developers Yearly Wealth Creation: 216.01% The year saw Rajesh Patil and Milind Kolte starting to deliver more impressive projects across their twin home-turfs of Pune and Bengaluru. It also helped that they are in all three happening sectors of realty -residential, commercial, and IT office space.

Bhartiya International Yearly Wealth Creation: 212.61% India’s leading leather apparel exporter, who supplies to brands like Hugo Boss and Zara, fulfilled their long cherished dream of diversifying into realty, in 2012. And Snehdeep Aggarwal did that in style by achieving financial closure for Bhartiya City at Bengaluru, which at 126 acres - is the largest mixeduse township development in any Indian metro.

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Indiabulls Financial Services Yearly Wealth Creation: 81.06%

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SEASONAL MAGAZINE

VP Nandakumar, Managing Director & CEO.

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MANAPPURAM FINANCE:

iscerning investors are once again warming up to Manappuram Finance stock. The stock has already run up 43% during the past 9 months, prompting investors to start watching out whether it will continue the recovery by taking back each of former peaks. The year-to-date high is still 43% away, giving sufficient room or opportunity for investors to enter or accumulate. But that is not the only reason behind the focus on this first listed gold loan provider. The real reason is that Manappuram has a unique track-record in blistering fast wealth creation. Not so long back, Manappuram had given almost 19X returns within less than 2 years. No, that is not a typo, but real 1900% returns within 22 months. Rising from a mere Rs. 4.85 in January of 2009 to Rs. 94.95 in November 2010, registering a 1858% rise to be precise.

Even that record is not the only reason why investors always fancy this scrip.

Just take a look again at the years when this leading NBFC achieved this feat.

Manappuram’s performance was during a period when Indian economy was still in woods after the shock treatment of 2008 global financial crisis. Of course, much have changed since then with their core gold loan business. In a series of steps, RBI strictly regulated various aspects of the gold loan business, thereby affecting industry margins and growth

Forget NBFCs, there are not many listed players in any segment whose stock has appreciated by 1900% within 2 years flat. momentum. But last month, things again started looking up for gold loan business, when a RBI appointed panel suggested that enough is enough in gold loan sector regulations, and that the LTV ratio be scaled back to 75% from the current 60%. Manappuram also went through a leadership restructuring by which the listed company’s founder and main promoter, VP Nandakumar is back at the helm of execution, as the Managing Director & CEO. The firm, long known for its above average corporate governance standards, was a bit disturbed a couple of years back when RBI directed it to strictly demarcate premises of listed and unlisted operations. Though legacy business issues were behind the affair, Manappuram promoters admirably

complied with the order, including paying back several investors in an unlisted business. Going even one step forward, they decided to strengthen corporate governance even more, by entrusting Chairmanship to industry veteran and former HDFC Bank Chairman Jagdish Capoor. Key executors like noted NBFC expert and veteran Chartered Accountant I Unnikrishnan continues to be in the pivotal role of Executive Director & Deputy CEO. And due to all such measuures, Manappuram stock continues to be a favourite among discerning FIIs with their list of investors reading like a who-is-who of global institutional investors - Morgan Stanley, HSBC Bank, Bric II Mauritius Tradings, Baring India, Sloane Robinson, Swiss Finance Corporation, Wellington Management Company, Smallcap World Fund, Beaver Investment Holdings, AA Development Capital, and Hudson Equity Holdings, all hold sizeable chunks of this top-rated NBFC. In fact institutional holding at 39.31% (dominated by FIIs) is even higher than promoter holding of 31.55%. Though there are other listed NBFCs doing gold loans, what differentiates Manappuram is their proven trackrecord in wealth sharing with retail and institutional investors. And that is no simple affair indeed. Forget NBFCs, there are not many listed players in any segment whose stock has appreciated by 1900% within 2 years flat.

SEASONAL MAGAZINE

Rapid Wealth Creator On the Rebound

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Puravankara Projects Yearly Wealth Creation: 62.87%

SEASONAL MAGAZINE

After spending the first quarter of this past year-to-date in a lull, Puravankara Projects stock started soaring, when it became clear that their pioneering efforts in combating the realty sluggishness, like their initiative into affordable housing through subsidiary Provident, was going to bear rich fruits. Quarterly net profit growth at 56% clearly outpaced a decent topline growth of 38%, showing pricing power and competitive strength of brands Purva and Provident, and making the market take the scrip from Rs. 55 to Rs. 105 now. Realty pioneer Ravi Puravankara’s wealth creation legacy should be intact in the hands of son Ashish Puravankara who is now Joint Managing Director. All eyes will be on the strategies of Ashish now, specifically on his strategies to scale back the scrip to post-IPO all-time high of Rs. 535.

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Ashish Puravankara

Ravi Puravankara

Relaxo Footwear 187.55%

Thangamayil Jewellery 84.78%

Relaxo’s growth in the stylish yet mass-market footwear segment gathered momentum, aided also by brand ambassadors like Salman Khan, Katrina Kaif, and Akshay Kumar. Managing Director Ramesh Kumar Dua has ensured that Relaxo is a great proxy on Indian consumption play.

Naresh Goyal Jet Airways

Thangamail proved that you need not be huge in size to give handsome returns to investors.

Balarama Govinda Das has so far played the equity game well, leaving money on the table during IPO, and growing steadily. Now at over 25 stores, the reliance on the flagship Madurai store is also reduced.

Jet Airways 154.02% Did Naresh Goyal really need FDI in aviation? Maybe not, with even his investment into Jet coming from abroad. But FDI in aviation wouldn’t hurt, and he promptly went in for one of the best partners - Etihad. It was a sweet year for Goyal when his strategies were favourably contrasted with the rest of the pack - from AirIndia to Kingfisher to SpiceJet.

Veritas as well as CCI hit hard on DLF, but India’s largest listed developer systematically addressed all challenges, never over-reacting, but fighting its battle in a measured and mature fashion. Finally, it was the notorious DLF-bears that had to succumb as it became clear for the market that DLF has no plans to relinquish its hard-won crown of being India’s largest and most valuable listed developer.

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DLF 35.48%

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Irfan Razack , Chairman & Managing Director

Yearly Wealth Creation: 133.18%

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The year-to-date rally in Prestige Estates is noted for its steady-rise nature throughout these 12 months. Of course, post the RJ-DB deal the momentum accelerated like in all realty stocks, but Prestige was relatively one of the steady risers with no serious dips in year-to-date. Steady fundamental performance was the reason, as quarterly net profit rose by up to 76% during the course of the last four quarters. The improvement in margins was a great attraction as this outperformance in bottomline was against a 45% topline growth during the same period, making the scrip soar from Rs. 72 to Rs. 180 now. The senior Razack brothers’ - Irfan, Rezwan, & Noaman - wealth creation legacy should be intact with their next generation of young leaders - including Uzma Irfan and Faiz Rezwan. Market will be looking forward to see whether this young command can quickly scale back postIPO all-time high of Rs. 232.

Uzma Irfan

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Dena Bank 69.34%

Eicher Motors 71.51% Thought everything turned bad after 2008 financial crisis? Well, here is one stock that started performing only after the crisis. During the past four years, Eicher has surged from Rs. 135 level to over Rs. 3240 at one point in December. Apart from its core truck franchise, is the Royal Enfield division, as well as the newer partnership with Volvo.

Pantaloon Retail: 51.80%

Dena Bank, a mid-sized public sector bank has been quite attractive on valuations for long. Then came the coincidence of market improving and Dena’s fundamental performance jumping. While that did the trick, the strategies of new Chairman Ashwani Kumar is likely to take the rally forward.

Was it just the FDI in retail that finally arrived? Of course not.

Kishore Biyani started moving, may be thinking that FDI would take even more time, and set in motion an aggressive deleveraging program that has since become a model for India Inc. He shared some of the most valuable gems with the Birlas, and then came the shot in the arm in the form of FDI sanction.

Havells India rode the rebound in economy near perfectly. Known in the electricals market for fast and massive expansion, Havells not only improved its sales and bottomline, but announced plans to take expansion to next levels.

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Havells India 48.16%

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Sobha Developers

Yearly Wealth Creation: 68.03% Sobha Developers has always proved that it can deliver stable performance quarter to quarter, and this past year-to-date was no exception. Sobha is also capable of blistering out performance depending upon their big launches, and this year-to-date was witness to one such quarter when bottomline soared by 122% against a topline growth of 52%. Market appreciates such strength and transparency, and not only took the scrip from a low of Rs. 250 to Rs. 429 now, but made sure that there were no serious dips. Visionary developer PNC Menon has retired from active duty as per his clockwork schedule announced years earlier, but still serves the company if needed as Chairman Emeritus. Son Ravi Menon obviously has big shoes to fill in, but he has already shown that the Sobha wealth creation legacy will be intact with his leadership. It is still a long way from Sobha’s post-IPO all-time high of Rs. 1179, but with the kind of projects they are attempting now, even such peaks are surely on the horizon.

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Ravi Menon

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PNC Menon

Balkrishna Industries 54.20% Not many who ride bikes to cars to SUVs have heard of BKT Tires. That is unless they happened to invest in this multibagger stock from long back. For those who still don’t recollect, BKT is one of the world’s largest manufactures of OHT or Off Highway Tires. Meaning tires of almost everything except on-road vehicles - like tractors, earth movers, all terrain vehicles, industrial machines etc. And under the leadership of Arvind Poddar, Balkrishna exports it to 120 countries across 5 continents.

Can Fin Homes 62.38% After years of lull, Can Fin Homes started expanding, correcting many years of sluggishness. Add to that parent Canara Bank’s support and being in the evergreen domain of housing finance, and the scrip started delivering on its long-held promises.

M&M Financial 49.24% Mahindra & Mahindra Financial Services has had an impressive year-to-date in fundamental performance with topline growing impressively, while bottomline is staging a formidable comeback.

Add to that Anand Mahindra’s ambition to get a banking licence, after Kotak Mahindra went the Kotak way, and we have an NBFC stock that market looks forward to always.

The re-rating that L&T Finance long hoped for finally came, helping the NBFC break over its narrow trading range ever since its IPO. The re-rating was due to inorganic growth by buying out companies in other sectors like housing finance, and prospects of repeating the same in sectors like wealth management.

The firm’s semi-urban focus is also likely to be a growth engine as more of rural India becomes semi-urban.

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L&T Finance 68.76%

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Yearly Wealth Creation: 31.65% Broking business is still not the stock market favourite it once was. But that hasn’t stopped Geojit BNP Paribas from outperforming the market by leaps and bounds. Founder and Managing Director CJ George has played the game well, even after the 2008’s global financial crisis, and all his moves like low leverage and partnering with banking giant BNP and expanding in Middle East are bearing rich fruits now. Backed by celebrity investor Rakesh Jhunjhunwala, who is also a Director, Geojit BNP also made wonderful RoI when it exited the institutional broking business two quarters back. Quarterly bottomline has grown by over 160% during the last four quarters, and market was prompt to soar the scrip from Rs. 15 to Rs. 24 now. All time high stands at Rs. 131, and if this well-managed business grows with the same momentum, and the market improves, Geojit may scale back that high eventually.

GIC Housing Finance 62.57%

Honda Siel 58.67%

Investors long waited in the counter, due to the striking resemblance in name and substance with market darling LIC Housing Finance. But this GIC arm took its sweet time in delivering, but late 2012 was that sweet time for investors. Based on vastly improved fundamental performance - equally in bottomline and topline - GIC Housing Finance stock soared to over 62%.

Honda Siel is equally tuned to the growth and prosperity of urban and rural India with products ranging from generators to water pumps. And this highly focused player has no debt, even while it is growing its topline impressively.

Market doesn’t need more reasons than that, as Chairman Siddharth Shriram proved.

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Syndicate Bank 45.48%

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The compelling case for Syndicate Bank was obvious during the first two quarters of year-to-date. The valuations were that attractive.

Then came two blockbuster quarters in Q1 and Q2 and suddenly all banking stock pickers were scrambling for Syndicate stock.

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Peninsula Land 78.93% Urvi A Piramal and her sons have proved that through sheer hard work and meticulous planning, value of untold magnitude can be unlocked.

Transforming former mill lands that they inherited, they have created some of the finest office spaces in Mumbai, surprising many by their delivery quantity as well as quality.

Unitech 44.20%

Karur Vysya Bank continued to prove why it was worthy to be invested by discerning investors like Rakesh Jhunjhunwala from long back. Never making any tall claims, MD & CEO K Venkataraman, went on to make the numbers do the talking as KVB proved quarter after quarter that it can be sensitive to the needs of its borrowers, even while it kept its investors satisfied.

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Karur Vysya Bank 43.24%

Late 2012 and early 2013 was the period in which this once famed wealth creator awakened from its long slumber. The trigger was parting ways with Telenor and focusing again on realty development. Though both topline and bottomline growth are yet to recuperate fully, it was enough for market to re-rate the stock, as long term investors are unlikely to forget the kind of returns Unitech has delivered in the last decades.

Union Bank 18.62% Union Bank has had three strong quarters in a row, which made the share price soar towards the later period of year-to-date. The large-sized public sector bank also started reaping fruits from its program of pruning its corporate business and growing its retail business. Also remains one of the most well-branded public sector banks.

Mahindra Life 49.05% Mahindra Lifespace Developers’ stock market performance has been surprising, as both the topline and bottomline performance were slipping during the past four quarters. But three things proved to be favourable - realty stocks getting re-rated, the Mahindra pedigree, and the company’s project pipeline.

GRUH Finance 91.92% GRUH from the HDFC stable has gone on to prove that it can play the affordable-segment housing loan pretty well, as good or better than players like DHFL, Indiabulls, or LIC Housing. Keki M Mistry and Sudhin Choksey are sure to have more competition in the years to come, but the duo knows the game better than most.

Magma Fincorp 55.86% Veterans of the NBFC world, Mayank Poddar and Sanjay Chamria, finally saw the fruits of their meticulous growth plans over the last few years.

Magma Fincorp is now a formidable name in car loans, SME loans, construction equipment, commercial vehicle, tractors, used vehicles, auto lease, and even gold loans.

SEASONAL MAGAZINE

SpiceJet 118.98%

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SpiceJet’s destiny was sure when Kalanithi Maran took it over. But for anyone doubting investor returns still, the flamboyant investment from Rakesh Jhunjhunwala did the convincing. The professional management under Maran has also ensured that SpiceJet’s bottomline has turned black.

Gitanjali Gems 84.84% Gitanjali’s success is a complex combination of several factors, including sheer expertise in design and manufacturing, superior branding, and more than anything, a unique strategy of growing own and partner brands. Mehul Choksi can be proud that market has also applauded his brains, and also because there is no one else pursuing such complex tactics.

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AUTO

Don't Buy Any Car Now, 19 New Cars Coming!

2013 will witness what is perhaps the largest number of new car launches ever in this country.

These include new international brands entering, older brands trying new segments like SUVs or new fuels like diesel, and there would be something to suit any car budget in 2013 - from the multi-lacs to the multi-crores. Here are 19 new models scheduled to be launched soon:

Mercedes Benz A Class

Cross Polo

The stunning A-Class is already a success in Europe.

The Cross Polo is Volkswagen's The vehicle will be launched in May 2013 and temporary will answer to compact SUVs become the entry-level Mercedes vehicle in India.till the Taigun arrives in India. This vehicle will be priced around Rs. 10 lakhs.

BMW 1 Series

BMW Mini Cooper Diesel

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BMW will give its MINI, diesel power next year.

This will make the MINI Cooper more desirable, with increased mileage and lower running costs.

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The 1-Series will become the entry-level BMW in India, when it is launched late next year. It will be locally assembled at BMW's Chennai facility.

Audi S6 After the launch of the S4, Audi plans to launch the S6 in India, which is a performance version of the A6.

Jaguar XJ Ultimate Honda's first diesel car in India, the Amaze is a sub 4-metre sedan which will take on Maruti Suzuki's Swift DZire.

GM Sail Sedan

Tata Nano Diesel

GM will launch the sedan version of the Sail early next year. This Chevy will be powered by petrol and diesel engines and will be priced between Rs. 6.5 - 8 lakhs.

Tata Motors will launch the diesel Nano by the end of 2013. The Nano diesel will be priced around Rs. 2.5 lakhs and will easily be the most frugal car in the country.

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Honda Amaze

Jaguar will launch the XJ Ultimate early next year. This vehicle will cost in excess of Rs. 1.2 crore and will be even more luxurious.

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GM Enjoy MPV GM will launch the Enjoy MPV early next year. This SAIC product will be aggressively priced to take on the Maruti Suzuki Ertiga.

Maruti Suzuki XA Alpha Maruti Suzuki will launch the production version of the XA Alpha by the end of next year. It will share underpinnings with the Swift.

Renault Duster 4WD Volvo V40 Cross Country

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The Volvo V40 Cross Country will rival the BMW X1.

It will be priced around Rs. 28 lakhs and will be launched early next year.

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Renault will give the Duster 4-wheel drive by the end of next year. This will be offered on the top of the line 110 BHP diesel variant.

Honda City Diesel Honda's popular City will finally get a 1.5-litre iDTEC diesel engine by the end of next year. This engine will boost sales of the City drastically.

Honda CR-V 2013 The new Honda CR-V will be launched with a petrol engine only. It features improvements in many areas but no diesel for India yet.

Nissan's Duster Clone It is Nissan's time to re-badge Renault cars. The company will launch the Duster based SUV, which will share most of its parts with Renault's Duster.

Force Motors' Viano MPV Clone

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Force Motors will launch their own version of the Viano MPV. This vehicle will be priced around Rs. 15 lakhs and will feature Mercedes powertrain.

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Ford EcoSport One of the most awaited cars in India, the Ford EcoSport will be launched with both petrol and diesel engines in 2013. It will be priced aggressively.

Hyundai Hexa Space MPV

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Hyundai will enter the MPV space with the launch of the production version of the Hexa Space, which was showcased at the 2012 Auto Expo.

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Ashok Leyland Stile Chrysler JeepwillGrand Ashok Leyland launch the rebadged Evalia, calling it the Stile. It will Cherokee beChrysler's more appealing entry intothan Indiathe willNissan be version of the the Jeep NV200. through brand. The first Jeep to be launched will be the Grand Cherokee, which comes via the CBU route.

Jaguar XF Diesel

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Jaguar will give the XF a new 4-cylinder 2.2-litre diesel engine, which will help it to compete with the German trio on pricing.

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HOME BUYING

And You Thought There was Only One Kind of Home Loan In case you didn't know, there are at least 10 types of home loans.

ome loans are an attractive and popular means of buying a dream house for most people.

In India, the demand for home loans has increased manifold in the last decade. Every day numerous people apply for home loans to own a perfect abode for themselves. The fact that home loans come with added advantages (like tax benefits) is the icing on the cake. Lenders provide home loans not only for buying houses but for a variety of related purposes. The home loan market is brimming with diverse home loan products which cater to different needs of individual customers. The following are some popular types of home loans available in the Indian housing finance market:

1. Land purchase loans Land purchase loans are taken to buy a plot of land on which a borrower wishes to construct her/his house. Most banks offer up to 85 per cent of the price of the land. These loans can be availed for residential as well as for investment purposes. Almost all leading banks offer this loan like ICICI Bank (land loan), Axis bank (loan for land purchase) etc.

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2. Home purchase loans

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The home purchase loans are the most popular and the most commonly available home loan variants. These loans can be used to finance the purchase of a new residential property or an old house from its previous owners. In this type of loan also,

lenders usually finance up to 85 per cent of the market value of the house. These loans are provided either on fixed interest rates or floating interest rates or as hybrid loans. All banking institutions and housing finance companies provide this type of loan.

3. Home construction loans These loans can be availed by those individuals who want to construct a house according to their wishes rather than purchasing an already constructed one. The loan application and approval process for home construction loans are somewhat different from those of the commonly available housing loans.

The plot of land on which the borrower wishes to construct the house should have been bought within a year for the cost of the land to be included as a component for calculating the total price

of the house. If the plot has been purchased more than a year ago, then the above clause is not applicable.

The borrower has to make a rough estimate of the cost that will be incurred for the construction of the house and then apply for the loan with the same amount. The lender then takes over from there and analyses the application to decide whether or not to sanction the loan. The approval or disapproval of the same is intimated by the lender to the applicant. The loan amount may be disbursed at one go or in several installments according to the progress in the construction of the house. Banks like Canara Bank, UCO Bank, Bank of Baroda provide these loans.

4. Home expansion / Extension loans Home expansion or extension loans are useful in situations when people want

7. NRI home loans NRI home loans is a specialised home loan variant which has been developed to assist non-residents in acquiring housing finance to buy residential property in India. These loans are meant exclusively for the non-resident Indians.

The formalities of availing this segment of home loans is similar to the regular home loans which are offered to residents, only the paperwork is a bit elaborate. Almost all public and private sector banks provide NRI home loans.

8. Balance transfer loans

5. Home improvement loans Home improvement loans are availed by individuals who already own a house but lack the funds to renovate it. All kinds of renovations and repair works can be financed using this variant of home loans such as internal and external

painting, external repair works, electrical work, water-proofing and construction of underground or overhead water tank etc. ICICI Bank, Vijaya Bank and Union Bank of India are among those banks which provide specialised home improvement loans.

6. Home conversion loans Those borrowers who have already purchased a house by taking a home loan but now want to buy and move to another house opt for the home conversion loans. Through these loans, they can fund the purchase of the new house by transferring the current loan to the new house. There is no need to repay the loan on the previous home. Though useful, this segment of home loans is accused of being quite expensive. This housing finance scheme is provided by HDFC Bank among others.

9. Stamp duty loans Stamp duty loans are provided to pay off the stamp duty charges on the purchase of a property. The amount from this loan can be used solely for this purpose. This segment of home loans has yet not gained much popularity.

10. Bridges loans Bridge loans are short term loans which are meant for people who already own a residential property but are planning to buy a new house. It helps borrowers to fund the purchase of the new house until a buyer is identified for the old house. It is extended for a period of less than two years and requires the mortgage of the new house with the lender. Some banks offering this type of loan are Vijaya Bank, HDFC Bank etc.

SEASONAL MAGAZINE

to expand their existing house.

Expansion includes alteration in the current structure of the residence to add extra space such as constructing a new room, a floor, a bigger bathroom or enclosing a balcony. Though many banks provide loans for these purposes as part of home expansion loans, some banks lend for the same purposes as part of their home improvement loans. It depends on how a bank categorises its loans. Some popular banks which provide home expansion loans are HDFC Bank (HDFC Home Extension Loan), Bank of Baroda etc.

Balance transfer option can be availed when an individual wants to transfer his home loan from one bank to another bank. This is usually done to repay the remaining amount of loan at lower interest rates or when a customer is unhappy with the services provided by his existing lender and wants to switch to another lender. Banks such as Deutsche Bank, ICICI Bank, Kotak Mahindra Bank offer this facility among other lenders.

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ge 8

http://www.magzter.com/IN/PeteCarlson-Solutions-Pvt.-Ltd/Seasonal-Magazine/Business/ or http://tinyurl.com/c6q92qz

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SEASONAL MAGAZINE

by Bindisha Sarang

E D U C AT I O N

Education loan gives you a tax deduction for eight years If you’ve taken an education loan, you have reasons to cheer because you get double benefit from it. On the one hand, it gives you or your child a chance for good education and on the other it offers a tax benefit. s per Section 80 E on the Indian Income Tax Act, you can avail of a deduction on the amount you pay as an interest on the education loan.

As per Section 80 E on the Indian Income Tax Act, you can avail of a deduction on the amount you pay as an interest on the education loan. AFP How much: Keep in mind that you get a deduction only on the interest and not the total amount you pay back as a loan amount. The total loan is made of two parts—the principal and the interest.

The good part here is that there is no limit to the deductible amount with an education loan, unlike when you take a home loan. You get a deduction for the interest paid during the year from your income for that particular year.

There are some finer details that you should keep in mind, while taking an education loan and be eligible to claim a tax deduction.

SEASONAL MAGAZINE

Who: Anyone who take an education loan can avail of this tax deduction as long as the loan is taken for the spouse, children or self. If you are a legal guardian for a student, and take an education loan for such a student, you can claim the tax deduction benefit.

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Where: You can claim this deduction only if you’ve availed the loan from approved charitable trust or a financial institution. So, if you are taking a soft loan from your employers or a friend that amount won’t qualify.

Which: There is a good possibility that you might get a loan from a financial institute or a charitable institute, but the course or which university or educational institute you plan to study also matters. For instance, as per the Indian Income Tax laws you can get a tax benefit on education loans taken for both regular as well as professional courses pursued after passing the senior secondary examination. Also keep in mind that only full time courses are eligible for tax benefits. You could take the course domestically or it could be a course abroad.

Most important: Understanding that you get a tax deduction on the interest amount you pay on an educational loan, is easy. It’s not rocket science, but

it comes with a condition. Firstly, you will be able to avail this tax benefit as soon as you start the repayment of the loan. Deduction is permitted in the initial assessment year or the year in which you start paying the interest on the loan and seven more years immediately after the initial assessment year. Also keep in mind that deduction is available only up to eight years. So, if you extend the loan repayment, you won’t be able to get the deduction after eight years.

Now that you know more about the tax deduction on education loan, make the most of this information and keep tracking this space to know more about various tax benefits you can claim.

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INVESTMENT

15 Evergreen Rules for STOCK MARKET WEALTH CREATION

SEASONAL MAGAZINE

Morningstar's Chief Equity Strategist Paul Larson outlines the stock-investing principles that guide his investment strategy.

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Stocks represent ownership stakes in businesses and are not just pieces of paper to enable trading. Think like a business owner.

2

If stocks are ownership slices of a business, we should value stocks like we value businesses. A business is worth the discounted value of all future cash flow that it can generate.

3

As Benjamin Graham wrote, in the short term, the market is a voting machine.

Popularity rules the day. In the long term, the market is a weighing machine, gravitating toward a company's true intrinsic value. Buy on the cannons (when stocks are unpopular) and sell on the trumpets (when euphoria reigns).

4

There are two ways to make money in the stock market: 1) Own businesses that will grow in value over time. 2) Buy things below intrinsic value, and wait for the market to come around to recognise that value. Try to do both.

5

Businesses that have strong and sustainable competitive advantages a wide economic moat will increase in value at a greater rate than those that do not. Wide-moat firms are also best suited for survival, possessing the high ground that will flood last, if at all, when a downturn hits. Focus on these firms.

6

Gaining an edge via better information is nearly impossible in this day and age.

However, humans are fallible, and incentives are aligned with short-term measures for many market participants.

Behavioural finance is legitimate, and an edge can still be had via a better longterm perspective.

7

Staying within one's circle of competence is important. Do not be afraid to admit, 'I don't know' and or that something is 'too hard'. To use a baseball metaphor, there are no called strikes in investing, so we can be patient and wait for the truly fat pitches before taking a swing.

8

Activity for activity's sake is harmful since frictional trading costs can greatly harm returns. We should aim to minimise commissions, taxes, and fees for 'helpers'.

9

We should focus on the value of the securities we are considering just as much as the price. If we know the price but do not know the value, we know nothing. One becomes a better athlete by practicing, not watching the scoreboard.

10

Valuation matters. Paying too high a price for a stock can lead to disappointing returns, even if the underlying company subsequently performs wonder-fully. Look for situations where a company has to meet or exceed a low set of expectations priced in by the market.

11

There is a dosage effect regarding portfolio diver-sity. Diversity is important to have, but too much can also dilute best ideas and excess returns. It can actu-ally be safer to have fewer baskets if it affords a muchcloser watching of the eggs.

12

The greater the payoff odds (lower price/ fair value ratio), the greater the weight a position should be in a portfolio, all else equal. Likewise, the greater the confi-dence in one's projections, the greater the position size should be, all else equal.

13

The future is inherently uncertain, and one should always demand a margin of safety.

The more uncertain a situation, the greater the margin of safety should be.

14

Always consider opportunity costs. We should not be afraid to sell a good opportunity to take advantage of a great opportunity. We can generate value by selling dollar bills trading for $0.90 to buy other dollar bills trading for $0.60.

15

Investing is a multidisciplinary exercise.

Read widely. Look for wisdom in unconventional places, and always keep an eye out for opportunities.

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GADGETSS

Top 5 SMARTPHONES & PHABLETS Coming up in 2013

SEASONAL MAGAZINE

Many phones and phablets (phone+tablet) will be launched in the next three months, but the ones here have been anticipated for long, and they are very important phones for their respective fans.

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1. Samsung Galaxy SIII Mini

2. Nokia Lumia 920

Samsung lacks a recent product in the mid range with no new product available between Rs 15,000 and Rs 22,000 from the world's largest phone maker. The existing products are aging and have lost their appeal. With Samsung Galaxy SIII Mini the company will fill this gap and given its specifications and appeal it is likely to be a winning product.

The phone has already been launched in Vietnam and Indonesia, and is likely to land here soon. The device features a 4-inch screen and runs Android 4.1 Jelly Bean. It inherits Galaxy S III's features, like S Voice, Smart Stay, Direct Call and S Beam. The compact version of S III is powered by a dual core 1 GHz processor and has a 5 megapixel camera. It has a 1500 mAh battery and comes with 8 or 16 GB internal storage.

Nokia failed to garner a sizable share of the market with the Windows Phone 7.5 based Lumia series, but it now has the Lumia series running Windows Phone 8 operating system.

Lumia 920 is the new flagship smartphone for Nokia and it will be available in a couple of weeks here in India. The phone is very feature rich but is expensive. Nokia Lumia 920 smartphone comes with a 4.5-inch Clear Black IPS LCD panel with 1280 x 768 pixel resolution. The touchscreen has been developed using a sensitive touch technology that makes it usable while you're wearing gloves too. Lumia 920 is 9.9 mm thick and houses a dual core 1.5 GHz Qualcomm Snapdragon S4 processor. The smartphone has 1 GB of RAM along with 32 GB on-board storage with no option of adding a micro SD card. Lumia 920 also has an 8.7 megapixel image sensor bearing camera with f/2.0 aperture and Nokia's patented PureView technology. The PureView technology is a pixel oversampling technique that reduces an image taken at full resolution into a lower resolution picture, thus achieving higher definition and light sensitivity, and it enables lossless zoom. The camera is also capable of recording video at 1080p HD resolution at 30 frames per second.

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3. Nokia Lumia 820 The middle of the range for the new Lumia series will be the Lumia 820, which will also be available in India within this month. The phone features a different design as compared to the Lumia 920 with a 4.3-inch OLED display with 480 x 800 pixel resolution. This display uses Nokia's Clear Black technology for extra brightness and super sensitive touch that responds even through gloves. Also, the Lumia 820 houses a dual core 1.2 GHz Qualcomm Snapdragon S4 processor and 1 GB RAM. For storage the device gets 8 GB internal memory along with the option of adding a further 32 GB through a micro SD card. At the back of Lumia 820 lies an 8 megapixel image sensor with Carl Zeiss Optics with dual LED flash for capturing photos even in low light conditions. Along with that the camera is capable of capturing full 1080p HD video at 30 frames per second. For a superior audio experience, Nokia has also fitted two distortion free high amplitude mics, Dolby headphone support and HD voice. The Nokia Lumia 820 comes with a 1650 mAh battery with Qi wireless charging support and promises up to 8 hours of talk time over 3G networks.

4. Sony Xperia X and XL These two will mark Sony's entry into the phablet category.

Both the phones feature very high end specifications and will be flagship devices for Sony. Both will sport similar 5-inch displays with 1080p resolution, 1.5 GHz Snapdragon S4 quad core processors, 2 GB RAM, 13 megapixel Exmor RS cameras at the back and Adreno 320 graphic processors.

However, they will have slightly different forms with XL having slightly more compact dimensions with a very narrow bezel and top and bottom. Both phones are likely to sport the latest Android 4.2 Jelly Bean operating system. Another unique thing about the Xperia XL is that it will have a front facing camera at the bottom instead of in the normal top position, which has probably been done as the top is so narrow that there is no space for the camera there. Due to its smaller form, Xperia XL will be priced higher compared to the Xperia Z. Both phones will be announced in a week's time during the Consumer Electronics Show in Las Vegas, USA. We expect the pricing to be in the range of Rs 35-40,000 when the device is launched in India. Given Sony's recent track record we expect the company to launch these two phones here soon after the global release.

HTC also entered the phablet market with the Droid DNA smartphone-tablet hybrid.

The phone comes with a massive 5-inch Super LCD touchscreen. It has already been announced in November and is expected to arrive in India anytime now. However, in India it could be named differently. The HTC Droid DNA is just 9.7 mm thick and weighs 138 grams with its 2020 mAh Li-ion battery. The phone has a massive 5-inch display with 1080 x 1920 pixel resolution that amounts to 441 ppi pixel density, which is almost double the pixel density of most mobile phones currently available in the market. Even the iPhone 5 has 326 ppi pixel density. The Droid DNA will come with HTC's Sense user interface, Android Jelly Bean operating system, a quad core Qualcomm processor clocked at 1.5 GHz, an 8 megapixel rear camera, a 2 megapixel front camera and Adreno 320 GPU. The Droid DNA's rear camera has the ability to record HD videos and images simultaneously, while its 2 megapixel front camera can even capture HD videos at 30 fps. The device will come with 16 GB of internal storage of which 11 GB will be available to the user. There is 2 GB of RAM for smooth operation. Like other high-end smartphones, Droid DNA too comes with Wi-Fi, Bluetooth, NFC, and micro USB and micro SIM slots.

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5. HTC Droid DNA

Ne w LLa aunche s: New unches:

& Fresh, Luxe, Duds

Ganjam pr esen pre sentts the Le JJar ar din C ollec tion ardin Collec ollection Giving a stunning tribute to nature, Indian jewellery brand Ganjam has launched Le Jardin collection, with a neo-classic interpretation. Pink sapphires, amethysts and Ganjam diamonds set in 18kt pink and yellow gold evoke feminity through craftsmanship and detail. Le Jardin represnts the grandeur and richness of a garden and reflects it through the pink and purple colour palette. Inspired by the delicate beauty of nature and all that is feminine and graceful in it, the collection aims to bring out elegance in the wearer.

Bo ene Botttega V Vene enetta sho wcase arly FFall all show sess E Early 20 13 ccollec ollec tion 2013 ollection Bottega Veneta has showcased its Early Fall 2013 collection. Going forward from the previous collection, this collection too emphasizes on monochromatic colours, giving a heightened sense of subtle style.

Flaunt it and stay warm!

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The Americ an E xpr ess W orld LLuxur uxur xpo tto o American Expr xpre World uxuryy E Expo be host ed a arlt on, Riy adh hosted att Ritz-C Ritz-Carlt arlton, Riyadh

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In a recent communication, the American Express World Luxury Expo announced that it will take place at the palatial Ritz-Carlton, Riyadh, from 10 to 12 February, 2013. The Expo is a new joint venture between World Luxury Group and Nayyara Exhibitions, with American Express exclusively selected as the title sponsor. HH Princess Nouf Bint Faisal Bin Turki Al Saud, Chairperson of Nayyara Exhibitions, will host The American Express World Luxury Expo. The three day exhibition will showcase many of the world’s leading luxury brands and services, from a broad selection of luxury categories, including fine art, high-end jewellery, fashion, hand-crafted time pieces, designer furniture and exquisite table settings, fine dining, luxury executive cars and sports cars, private aviation and luxury travel, to a highly discerning and select group of VIP guests from across the Saudi Kingdom.

Armani Jeans la unche launche unchess it itss fir st ttw wo st or es in India first stor ore Popular Italian denim brand, Armani Jeans, has launched its first two stores in New Delhi at Select City Walk and DLF Promenade mall. Armani Jeans is a bridge-line collection of denim-related clothing created in 1981 by Giorgio Armani. This sub-brand represents young, relaxed and contemporary style. The collection stands for strong play with the logos and fashion details highlighting strong fashion silhouettes. Armani Jeans collections can be worn for any occasion, casual or evening. The colours used are more diverse than those found in Armani’s higher end lines. The new stores house fall collection for both men and women including apparels and accessories that are chic and classy. The collection offers a vast selection of casual and prêt-a-porter styles for men and women –shirts, pants, jackets, dresses – alongside the denim segment.

Globe-T Globe-Trrotter la unche st st or e launche unchess fir first stor ore in India Globe-trotter, a British luxury luggage brand established in 1897, has launched their first store in New Delhi in India. With prices starting at INR 40,000 for a suitcase and used by the likes of Sir Winston Churchill and Queen Elizabeth II, Daniel Craig, Kate Moss, Dita von Teese and Kylie Minogue, the brand has many loyalists in its list. Founded by Englishman, David Nelken, in Saxony Germany, the company ‘returned’ to the UK in 1901 where it has remained ever since. Globe-Trotter cases have been used over the last 100 years by an enviable client list including Captain Robert Falcon Scott of the infamous Antarctic expedition in 1912 and Sir Edmund Hilary during his conquest of Everest in 1953. Hand made by Globe-Trotter in Broxbourne, Hertfordshire using original manufacturing methods, each case is uniquely constructed from vulcanised fibreboard. Handles are produced by the leather team who also form the iconic GlobeTrotter corners over a period of 5days on antique Victorian presses.

Getting a much-hyped brand to India, Reliance Brands Ltd has launched the first Thomas Pink store at Ambience Mall, Vasant Kunj in New Delhi. Part of the Moet Hennessey Louis Vuitton group, Thomas Pink is a British based luxury shirt maker. Constructed from the finest-quality two-fold cotton, immaculately cut and finished, Pink shirts are crisp, comfortable and look the part anywhere from the boardroom to the ballroom. The men’s formal shirts come in the fitting Classic, the streamlined Slim Fit, and the body skimming Super Slim Fit styles. More relaxed styling is found in the Casual and Informal collections and in the Polo shirts collection. In a price range of INR 5,500 – 25,000, Pink shirts are available in twills and tattersall’s, royal Oxford and Winchester, poplin and Sea Island Cottons.

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Thoma st homass Pink opens fir first st or e in India stor ore

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Maison bbyy In tional FFurnitur urnitur e Br ands Intterna ernational urniture Brands Pr esen asa Pre sentts Armani/C Armani/Ca Maison, the premium furniture and lifestyle store, hosting boutique international brands is now bringing the chic Armani/Casa to Mumbai, India. Armani/Casa, a part of the Armani Group, is a platform for Giorgio Armani to set out his vision of living spaces. The collection ranges from furniture to accessories and from fabrics to ornaments and lighting. Having over 10 years of experience in furniture retailing, Maison - by International Furniture Brands was partnered with for retailing Armani/ Casa in Mumbai. Armani/Casa personifies an extraordinary combination of style and colours in home furnishing and a philosophy of décor that is minimal, yet rich with decorative elements. Mr Samvit Tara, Director, International Furniture Brands also favours this kind of interior concept: “We love the minimalist and ultrarefined style of Armani/Casa, and though India serves as a nascent market for luxury brands we feel the style will mesh with the quality and style conscious connoisseurs of India.”

Role olexx signs global par tner ship with partner tnership Formula 1 Salv ator e FFerr err agamo Salva ore erragamo la unche launche unchess the Signorina fr agr anc e fragr agranc ance

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Luxury brand Salvatore Ferragamo has launched the new fragrance Signorina. A sophisticated, fresh scent, the fragrance is for chic girls who know how to express their femininity. Elegant jasmine and the unexpected, delicate sweetness of pannacotta are blended together to create a refined and memorable fragrance. The strong top notes of pepper (rose/pink) and blackcurrant buds (cassis) are underlined by middle notes of jasmine, peony and rose, further revealing the base notes of patchouli, musk and pannacotta accord. A glorifying fragrance meant to make you feel fresh!

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Luxury watchmaker Rolex is all set to become a major long-term partner of Formula 1 from 2013 as Official Timekeeper and Official Timepiece.

This new partnership is part of a strategic move by Rolex to focus its sponsorship activities on ventures chosen for their strong symbolic value and their global resonance. “Rolex watches are symbolic of the quest for the highest level of performance and reliability that is epitomized by Formula One. Over the last 50 years both Rolex and Formula 1 have grown into world leading aspirational brands and there will be many fantastic

The much awaited Sephora, a global beauty chain owned by LVMH Moët Hennessy Louis Vuitton, recently opened its first store in India at the Select CityWalk, New Delhi. Sephora, a beauty authority, encourages clients to experience, discover and play with makeup shades and fragrances. Known for offering unique brands from around the world, highlighting trends and giving expert beauty tips, Sephora offers a wholesome shopping experience.

Sephora has partnered with luxury retail group, Genesis Luxury, as part of its foray in India. Sephora features exclusive brands such as Make Up For Ever, Benefit, Stila, Bliss, StriVectin, Sampar, Boscia, Peter Thomas Roth, Zihr, The Face Shop, Soap and Glory, Alterna Hair Care, Oscar Blandi, Ouidad and more. Sephora completes the assortment with its own brand of makeup, skincare and accessories in addition to well-known luxury brands including Dior, Estee Lauder, Clinique, Clarins, Shiseido, Tom Ford Fragrances and Guerlain.

Sephora’s famous black and white design expresses its boldness, while touches of red connote luxury. it is these women who define the values and attitudes found in beauty.”

Alber schini - Handcr afted bbyy Albertto Cia Ciaschini Handcra Hide sign no wa Hidesign now avvailable a att multia de signer st or e Samsaar designer stor ore Samsaara Lifestyle brand Hidesign’s luxury subbrand, designed by Alberto Ciaschini, is now available at multi-designer chain of boutiques Samsaara, through a retail partnership. The new luxury collection is the result of collaboration among Milanese designer Alberto Ciaschini, Swarovski Elements and Hidesign. The Alberto Ciaschini, Handcrafted by Hidesign collection features handbags, evening bags, clutches and mobile phone holsters. This handcrafted luxury line is made with the finest leathers, luxurious hardware and Swarovski crystals. Alberto Ciaschini bags will be showcased in Samsaara stores in Delhi and Mumbai.

And you can shop Alberto Ciaschini’s Party Collection ‘Steal the Show’ at Samsaara (South Extension in New Delhi and Kemps Corner in Mumbai).

Les P etit den Pe titss un unvveils it itss Win Wintter Gar Garden Collec tion ollection Les Petits, retailing international kid’s luxury brands in India, is now presenting the Winter Collection for age group of 0-8 years. The junior apparel collections include brands Baby Dior, Fendi Kids, Miss Blumarine, Simonetta and I Pinco Pallino to style your young ones. Floral patterns enhance the main collection with a wide fabrics range including velvet, crepe de chine up to jersey, tulle with foliage pattern and cutting edge faille for dresses and trench coats.

For girls Miss Blumarine, Simonetta and I Pinco Pallino have elegant and glamourous dresses, bomber jackets, baby pumps, head bands and purses. For boys, Fendi Kids and I Pinco Pallino collection includes blazers, corduroy trousers, polo shirts, duffle coats, denim jackets, sweaters and bomber jackets as well. For the little ones, Baby Dior line is made in soft colours and tones, a look with toughness to take on even the coldest temperatures!

Coordinates: First Floor, DLF Emporio, Vasant Kunj, New Delhi

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Global bea ut beaut utyy chain, Sephor a, Sephora, la unche launche unchess in India

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Guc ci sho wcase omen’s Pr efall Gucci show sess W Women’s Pre Collec tion 20 13 ollection 2013 Showcasing its Prefall 2013 collection, Gucci creates a Femme Fatale with a vintage, alluring style. Effects like square belt buckle, bows on patent stilettos and gloves give a mix of innocent yet seductive look. Sculpted shapes embrace the body with couture effects. Skirts make a strong statement. Fifties-inspired small jackets are reinvented with round constructed necklines.

Above the knee, the little black dress with the sweetheart neckline undergoes a reinterpretation thanks to jacquard workings recalling snake skin. Thick leather belts define a fluid yet never languid dress.

Fitted coats are fastened by ribbon-belts. Worn with pointedtoe heels, the new pant is a cuffed cigarette shape that goes to the ankle. The colour palette consists of muted greens, ruby and brick red, turquoise, mauve, grey and black. Evening wear evokes more passion with laces, macramé embroideries, woven sequins, point d’esprit, tulle and net. With high waist and lines that drop below the knee, veiled necklines and transparent effects, and bijoux cuffs inspired by gemstones, Gucci manages to recreate the stunning and alluringly dangerous femme fatale.

Ar ola R est aur an Arola Re sta uran antt & Bar a att JW Marrio w Marriottt Mumbai o offfer erss ne new cr ea tions crea eations Chef Sergi Arola, a culinary-trend setter with his take on Catalan cuisine, is bringing new creations at his restaurant Arola at JW Marriott Mumbai with a revamped menu. Inspired by his signature mouthmelting Patatas Bravas which explode into delicious flavours of spicy tomato puree and aioli in your mouth or the Gambas which remind you just how good delicious prawns cooked to perfection taste, Chef Sergi has introduced many more bite-sized preparations like Cesar de Bogabante (Arola’s Lobster Cesar Salad) or Langostinos Fritos con Curry (Deep Fried Scampi, Pimenton Mayonnaise & Carrot Cream) or Tortilla de Patatas (Potato, Crispy Onion & Egg). Chef Sergi experiments with new ingredients and innovative techniques in his free time and derives inspiration from his local market tours and travels around the world. Revel in Chef Arola’s new innovative dishes like Calamares en su Tinta (Sautéed Squids, Garlic-Parsley & Squid Ink) or Bogabante Asado en Tandoor (Tandoor Roasted Lobster, Almond Cream & Garlic Ice-Cream) or Arroz de Queso Idiazaba (Idiazaba Cheese Rice, Asparagus & Artichokes).

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Swatch Gr oup ac quir weller Group acquir quirees je jew elleryy and w waatch br and Harr on Inc brand Harryy Winst Winston Inc..

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The Swatch Group Ltd. has announced its acquisition of 100% shares of the US company HW Holdings Inc., owner of Harry Winston Inc. The Swatch Group Ltd. has acquired the brand and all the activities related to jewellery and watches, including the 535 employees worldwide and the production company in Geneva (Switzerland). The acquisition sum amounts to US$ 750 million plus the assumption of up to US$ 250 million of pro forma net debt. The transaction does not include the mining activities of Harry Winston Diamond Corporation in Toronto. Mr Robert A. Gannicott, Chairman and CEO of Harry Winston Diamond Corporation said, “The Harry Winston brand now has a new home that can provide the skills and support that it deserves to realize its true potential.” Ms Nayla Hayek, Chairwoman of The Swatch Group Ltd., says “Harry Winston does brilliantly complement the prestige segment of the Group. We are proud and happy to welcome Harry Winston to the Swatch Group family – diamonds are still a girl’s best friend.”

Burberry Prorsum’s Autumn/Winter 2013 collection celebrates sartorial Burberry classics and heritage outerwear. Showcasing a quintessential British look, the collection includes trench coats, topcoats, duffle coats, donkey jackets, cabans, Chesterfields and prints and needle-punched heart sweaters. Keeping the wearer warm are elevated fabrics including cashmere, velvet and classic cotton gabardine. Presenting a vibrant, colourful picture, the collection is bathed in a colour palette of trench, camel, Windsor red, dark royal purple and dark racing green. The accessories feature the new Burberry Boston bag, animal print classic sunglasses and The Britain watch. Looking as if inspired by a 1970’s look, Creative Director Christopher Bailey charms us right off our seats with this feel-good collection!

Bo ene wcase Botttega V Vene enetta sho show sess Men’s Fall-Win 13-14 ccollec ollec tion all-Wintter 20 2013-14 ollection Precise, proper, streamlined and sharp, Bottega Veneta’s Fall-Winter 2013-14 collection for men brings sleek black and charcoal greys into fashion yet again.

The palette is deep and rich, comprised of black, dark shades of blue, gray, and plum, and touches of cool green and muted bronze. Adhering to the Bottega design philosophy, patterns are subtle and small, add depth and a hint of animation to the seemingly austere hues.

Understated, the collection is made of lightweight wool flannel, cashmere, worsted wool, and wool-and-cashmere blend, as well as fine, supple leathers, all combined in unusual ways. Jerseys and other knits also figure prominently, put to unexpected uses as a shirt collar or the front of a shirt. Sportswear, such as parkas and paddock jackets, are interpreted with the formal shapeof suits, constructed of suiting fabrics and paired with gilets and dress shirts. Sharply tailored flannel suits and jackets of mixed materials are worn with tone-on-tone patterned shirts and patterned ties. Bags have a formal attitude with an emphasis on functionality.

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Burberr wcase Burberryy sho show sess the Burberr or sum Burberryy Pr Pror orsum Autumn/Win 13-14 utumn/Wintter 20 2013-14 collec tion ffor or men ollection

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Role Model

Businesswomen Touching Thousands of Lives

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Chanda Kochhar, ICICI Bank

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Chanda Kochhar’s clarity of vision on the Indian growth story was recently evident at WEF Davos, when she met every negative question on India with irrefutable fundamentals of India. Despite being afflicted by what is still a large corporate lending book, the ICICI Bank Chief reassured everyone that Indian banking’s projected weakness of overexposure to corporates is only a temporary phenomenon. According to her most of these large-scale lending has happened to pivotal sectors like power and infra, and there would soon be a time, when such sectors turn around. While admitting that such sectors are currently appearing overleveraged, Chanda expressed confidence that it is only a matter of time before such projects turn cash-flow positive, making the leverage appear not only safe and manageable, but a tremendous growth opportunity for lenders too. In fact, such exposure is one core area where India’s largest private sector lender has been in stark odds with the country’s most valuable lender, HDFC Bank, which has always been shy of large scale project finance. At Davos, Chanda also articulated on why she remains bullish on the Indian banking and financial sector as a whole - India remains grossly under banked still, with banking sector growth being at 2.5-3 times of GDP growth. She should know as Chanda Kochhar is Indian banking’s turnaround leader. She assumed the apex role in the aftermath of the global financial crisis when everyone was predicting doomsday for ICICI Bank due to its high global and corporate exposure. But Chanda, back then too, had only words of reassurance, as she knew that ICICI Bank could always rebound on correcting the strategy. For the next couple of fiscals, she guided for flat growth to investors, even while internally she set the huge machinery of ICICI Bank to work to convert both the loan book and deposit base to a more retail oriented one. Chanda was the perfect person to do that at ICICI Bank, as years earlier, despite being really a corporate banker, she was entrusted by the ICICI Board to jumpstart their retail business. Under her vision, the systems and products that ICICI introduced went on to become model products for every private and public bank to emulate later. An extremely hardworking person, this globetrotter is known to fly to US after a day’s work, do back-to-back meetings in New York, and fly back that night to India, so that she loses only one day with her family, thanks to the time zone difference. Also a spiritual person in her own way, she is known to find peace by chanting her favourite hymns, once in car or air. Anecdotes about Chanda’s enthusiasm and earnestness in every job that she undertakes are legendary, with some describing that she still remembers each and every question that KV Kamath and team asked her during her campus interview.

Her capabilities are also said to have been noticed instantly by the top management, when they visited a branch where she was working, and was surprised by a unique way in which she had reorganized the whole office, despite not being in charge of that duty. Chanda Kochhar’s big test would come when ICICI Bank comes out of the consolidation phase that India is going through and it tries to grow further in competition with state-backed models like SBI and private models like HDFC and Axis. Despite being an all around backer of the recent reforms by Government, Chanda also sounded a cautious note at Davos when she said that all projects should move forward constantly at the ground level, and that much more needs to be done by the policy makers and implementers to ensure that all necessary clearances and linkages are given in time. Nobody knows better than Chanda that without that level of proactive attitude, all banks including ICICI won’t come out from the woods. Her silver bullet for the Indian economy to rebound is household savings being encouraged to be invested in productive assets for the nation, and not non-productive assets like gold and land.

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Role Model

Businesswomen Touching Thousands of Lives When Naina Lal Kidwai took over as FICCI President in December, it was a first for the largest and oldest industry body of India. The organization that was started by GD Birla in 1927 on the recommendation of none other than Mahatma Gandhi, was electing its first woman president, after 86 years. But for Naina, it was just another first. She was the first woman to head an international bank in the country. Even that was not her first in a life of pioneering achievements.

Naina was the first Indian woman to graduate from the prestigious Harvard Business School. Entrusting the leadership role to the veteran banker might just be the precise move that FICCI needed, as it competes with CII and ASSOCHAM to be more influential and relevant to its members. But for policymakers in the Government, the selection of Naina Lal Kidwai might be a bit of a headache.

Because unlike retired businessmen who are usually thrust with this role, here is a practicing businesswoman, who is known for her world-class professionalism and more importantly, her unique insights into the world of finance and industry. Her career graph is a dream come true for any aspiring banker. Naina has done notable stints at ANZ Grindlays, Morgan Stanley, Standard Chartered, and PricewaterhouseCoopers. But it was at HSBC - the world’s third largest publicly held bank - that Naina scaled dizzying heights. Long serving as Group General Manager and Country Head of HSBC India, Naina achieved global stardom when she was appointed also as Director, HSBC Asia Pacific. She has also been trusted by global foods major Nestle SA with a Director Board position. Featuring in ‘Global Power Lists’ is nothing new to Naina, as she has been repeatedly featured in such lists by Fortune, Wall Street Journal, Financial Times, and Time Magazine.

As FICCI president, her recent comments on various policy issues may not appeal to everyone, but clearly reveals her rational thought processes. Rather than echoing finance minister P Chidambaram’s view on more liberal banking licences, Naina has recently revealed what is the real problem, point blank. According to her, the real issue is that India is severely under-banked due to government banks controlling 70% of the market, but which are unable to expand as much as they can, due to lack of capital, which in turn is due to poor government funding as well as government’s reluctance to yield ownership. The solution she proposes is simple yet powerful - accord all properly managed NBFCs some kind of licence to operate as regulated banks, especially as niche banks in their field of competence. Naina can also be a contrarian, like in her recent candid remark that overtaxing the rich will just cause the Indian super-rich to shift base to investorfriendly destinations like Singapore, Dubai, or London. Recently at WEF Davos, while hard selling India, Naina asserted that the India story has not gone away, but added that it has become more difficult for corporates to operate in the country. According to her, the government needs to act fast as it would be a shame if India missed the bus.

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Naina Lal Kidwai, HSBC

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Role Model

Businesswomen Touching Thousands of Lives Aishwarya Nair, The Leela

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Aishwarya has plenty of support at The Leela it would seem, with her father being The Leela’s Vice Chairman, Vivek Nair, and grandfather being legendary hotelier Cap. Krishnan Nair. But is it really so? Aishwarya Nair has a formidable role to fulfill, heading Corporate Food & Beverages at various group properties across India. It is especially not an easy task, as The Leela is not just a luxury hotel chain like the India-oriented Taj or the Western-focused Oberoi, but prides itself for its glocal

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vision, blending the finest of global cuisine and luxuries with the best in Indian hospitality and architecture.

Perhaps that is one reason why the younger of the daughters of Vivek Nair, dots more on the support of her mother Lakshmi Nair who is a highly creative person and her grandmother Leela Nair whose fine cooking is said to have been one inspiration for even Cap. Krishnan Nair to start The Leela. Soon after taking over her role at The Leela, Aishwarya proved her worth by a series of moves in her foods and beverages department, when she partnered with uncle and Joint Managing Director Dinesh Nair to bring in Michelin-starred restaurant Le Cirque of New York and Japanese restaurant sensation Megu, to The Leela. Aishwarya has also launched her own retail dessert brand Dolce’ which is noted for its finest ingredients. The range of complex tasks that Aishwarya heads are impressive, ranging from menu building, menu engineering, cuisine development, baking & pastry development, introduction of new culinary methods, and corporate wine acquisition. A wine connoisseur, she also hosts exclusive food and wine tastings for all the properties of The Leela. If anyone wonders how she can handle all these, it is better to look at her unique heritage, training, and education. As she herself put it once about the Remy Martin brand, “Having been to the Remy Martin cellar in Cognac and tasting the sublime golden liquid from the tiercons that are more than 100 years old, evokes more than a satisfaction for a stellar product.” Aishwarya also prides on the fact that she was always her family’s expert cook, with a keen interest in food from an early age onward. She recalls sitting through mandatory Malayalam classes by her paternal grandfather, back in Kerala, solely for the taste of the hot idlis that would be served post class! Following that natural flair, Aishwarya pursued a Bachelors Degree in Hotel and Restaurant Management at the Culinary Institute of America, at New York, before specialising in Culinary Arts Management there itself. Obeying father Vivek Nair’s wishes to obtain world-class training elsewhere before joining The Leela, she also did a stint at NY’s The Mandarin Oriental where she fine tuned her skills in the baking and pastry development. She and elder sister Amruda Nair joined The Leela at a time when Indian luxury hotel business and especially that of Hotel Leela Venture (the listed firm) was not doing well due to mounting debt. But they, as well as cousin Samyukta Nair, as well as Aishwarya’s younger brother who is expected to join soon, are unfazed. Because, they will naturally rely on two things - one, their grandfather’s entrepreneurial boldness that once took on none other than legendary hotelier Isadore Sharp of Four Seasons, and survived, and secondly, the Group’s formidable connections - thanks to their gracious hospitality - with world’s who-is-who including the Clintons, Warren Buffett, Emir of Qatar, Prince Andrew, GE’s Jeffrey Immelt, Mukesh Ambani, and the like.

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TO U R I S M

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1. W estern Ghats - Kerala Western

cluster of 39 sites spread over 7,953.15 sq km in the Western Ghats has found prominent place the UNESCO World Heritage list. Kerala portion of Western Ghats leads with 20 sites including tiger reserves, national parks, wildlife sanctuaries and reserved forests. These include Munnar's Eravikulam National Park (and proposed extension), Neyyar Wildlife Sanctuary, Peppara Wildlife Sanctuary, Kulathupuzha Range, Palode Range, Periyar Tiger Reserve, Ranni Forest Division, Konni Forest Division, Achankovil Forest Division, Karian Shola (part of Parambikulam Wildlife Sanctuary), Mankulam Range, Chinnar Wildlife Sanctuary, Silent Valley National Park, Attapadi Reserved Forest, and Aralam Wildlife Sanctuary.

Older than the Himalaya mountains, the mountain chain of the Western Ghats represents geomorphic features of immense importance with unique biophysical and ecological processes.

The site’s high montane forest ecosystems influence the Indian monsoon weather pattern. Moderating the tropical climate of the region, the site presents one of the best examples of the monsoon system on the planet. It also has an exceptionally high level of biological diversity and endemism and is recognized as one of the world’s eight ‘hottest hotspots’ of biological diversity. The forests of the site include some of the best representatives of non-equatorial tropical evergreen forests anywhere and are home to at least 325 globally threatened flora, fauna, bird, amphibian, reptile and fish species.

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2. Sun Temple, Konarak, he majestic Sun Temple of Konark is among the many shining examples of ancient Indian engineering. Even though it stands partly in ruins, the majestic temple is bound to overwhelm you. Constructed along the seashore as a gigantic chariot of Surya, the Sun God, to commemorate a military victory by the Ganga dynasty King, Narasimhadeva, the Konark Sun Temple has an east west alignment and seven magnificent, spirited, life-size horses appear to be drawing the chariot towards dawn. Twelve pairs of exquisite, ornate wheels of the chariot, each around ten feet in diameter, are the major attractions of the Temple. The spokes of the wheels serve as sundials, and the shadows formed by these give the precise time of the day. Together, the twelve pairs of wheels (representing 12 months of the year) and the seven horses (representing days of the week) drawing the chariot symbolise the passage of time. Images of the mighty Sun are positioned in different directions at Konark capturing the sunrays at different times of the day. On the northern wall is the Sun God called as Astachala-Surya (setting-sun). This beautiful image is carved of high-quality green chlorite stone and is one of the masterpieces of Konark. Surya wears tall riding boots, and is accompanied by a small figure of Aruna, the charioteer, at his feet."

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3. Churches and Convents of Goa

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Orissa

he churches and convents of Goa, the former capital of the Portuguese Indies particularly the Church of Bom Jesus, which contains the tomb of St Francis-Xavier illustrate the evangelization of Asia. These monuments were influential in spreading forms of Manueline, Mannerist and Baroque art in all the countries of Asia where missions were established. Of the 60 churches inventoried in the 18th century before the city was abandoned, seven major examples survive.

The SĂŠ Cathedral with its Tuscan exterior, Corinthian columns, raised platform with steps leading to the entrance, and barrelvault is another example of Renaissance architecture. The paintings in the church were executed on wooden boards and fixed between panels with floral designs. Except for a few statues which are in stone, most of the other statues of the saints, the Virgin Mary, and Jesus were first carved in wood and then painted to adorn the altars. The Chapel of St Catherine dating from 1510, the Church and Convent of Saint Francis of Assisi (which now houses the Archaeological Museum), and the Church of Bom Jesus where the mortal remains of St Francis Xavier rest, are some of the best in terms of design and style.

Also of importance are St Gagtan and its seminary, Our Lady of the Rosary (one of the earliest churches to be built), and the Tower of St Augustine, all that remains of a convent built in 1572. The Church of St Cajetan has a facade decorated with lonic, Doric, and Corinthian pilasters. Other monuments are partially or completely in ruins, but they nonetheless constitute an archaeological reserve of considerable interest.

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4. Taj Mahal, Agra, UP I

narguably India's most recognisable monument to the world, the Taj Mahal was built by Shah Jahan in the memory of his wife Mumtaz Mahal and has been a UNESCO World Heritage Site since 1983.

Regarded as the finest example of Mughal architecture, the Taj Mahal is essentially an integrated complex of structures that took 21 years and thousands of artisans and craftsmen to complete. The Taj Mahal also appears on the new listing of the New Seven Wonders of the World.

5. Mahabodhi Temple, Bodh Gaya, Bihar aid to be the location where Buddha is said to have attained enlightenment, the Mahabodhi Temple in Bodh Gaya is the holiest destination for Buddhists from across the world. The complex houses the famous temple as well as a descendant of the original Bodhi Tree under which the Buddha is said to have gained enlightenment besides monasteries from other nations that have a Buddhist tradition. According to Buddhist mythology it is believed that when the world is destroyed, Bodh Gaya will be the last place to disappear from the face of this earth and the first to reappear.

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7. Ellora Caves, Aurangabad, Maharashtra ven though Ellora's name is taken in the same breath as Ajanta, giving one the impression that they are perhaps neighbours, this famous archaeological site is over 100 km away from Ajanta. The 34 caves are fantastic examples of Buddhist, Jain and Hindu rock-cut temples constructed between the 5th century and 10th century and stand testimony to the religious harmony prevalent during this period.

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6. Hampi, Karnataka he ruins of Hampi, the capital of the Vijayanagar empire are spread over an area of 26 sq km. By some accounts the city was said to be so rich that diamonds were sold on the street. The landscape of the city is arid and the city itself is surrounded by endless numbers of boulders.

However within this is a small oasis that is nestled near the river that flows through it. Visit Hampi around the first week of November when the city hosts the spectacular Hampi Utsav that will leave you spellbound.

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8. Kaziranga National Park, Assam ome to the one-horned rhino that can be found nowhere else in the world the Kaziranga National Park is also a World Heritage Site that has the highest density of tigers among protected areas in the world. The Park has been declared a Tiger reserve in 2006 and is also a breeding ground for elephants, swamp deer and wild water buffalo. Hire a cottage in the park to spend some time in the wild and take elephant rides in the park's lush green environs.

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9. Group of Monuments at Mahabalipuram, Tamilnadu

his group of sanctuaries, founded by the Pallava kings, was carved out of rock along the Coromandel coast in the 7th and 8th centuries. It is known especially for its rathas (temples in the form of chariots), mandapas (cave sanctuaries), giant open-air reliefs such as the famous 'Descent of the Ganges', and the temple of Rivage, with thousands of sculptures. Mahabalipuram is preeminently testimony to the Pallavas civilization of south-east India.The sanctuary, known especially for its rathas (temples in the form of chariots), mandapas (cave sanctuaries), and giant open-air reliefs, is one of the major centres of the cult of Siva. The influence of the sculptures of Mahabalipuram, characterized by the softness and supple mass of their modelling, spread widely (Cambodia, Annam, Java). Founded in the 7th century by the Pallavas sovereigns south of Madras, the harbour of Mahabalipuram traded with the distant kingdoms of South-East Asia: Kambuja (Cambodia) and Shrivijaya (Malaysia, Sumatra, Java) and with the empire of Champa (Annam). But the fame of its role as a harbour has been transferred to its rock sanctuaries and Brahmin temples which were constructed or decorated at Mahabalipuram between 630 and 728.

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10. Buddhist Monuments at Sanchi, Bhopal, Madhya Pradesh he Stupa at Sanchi is one monument that you must dedicate a great amount of time to so you can appreciate how this place brings to life the vision of a realm where peace, well being, good deeds and thought guided a monarch to better things and a better life. At the site stands a huge dome-shaped stupa that is built over the relics of Buddha, by the Emperor Ashoka. The construction of this holy site dates back to the 3rd and 12th century BC while the other stupas and gateways on its four sides are most probably constructed later. The road to and from the historical site, as well as its rail access are kept neat and clean and the accomodations around it are a treat after the trek around the Stupa site.

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T R A V E L

BEST UNKNOWN OUTBOUND TOURIST DESTINATIONS FOR INDIANS There are destinations that most outbound Indian tourists have visited, like Dubai, Singapore, UK, US, & Australia. But world tourist map has a lot more to offer. Here are 9 relatively less popular destinations among Indians, but thronged by discerning international tourists.

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ECUADOR

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Ecuador is a popular world heritage site which is known to have preserved its histories without many alterations. The culture of this place varies in many degrees because of the presence of indigenous communities. Music, literature, art and sport are a part of Ecuador’s culture.

MALAYSIA Malaysia is a multi-ethnic and multicultural city which attracts many tourists annually. Its customs influences include indigenous tribes, Persian, British and Arabic cultures. Apart from observing many holidays and festivals throughout the year, the traditional Malaysian art is worth all the rage.

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PANAMA

Panama is known for its dense jungle that houses many birds, plants and animals which are not usually spotted anywhere else in the world. European music, art and traditions are the highlight of Panama’s culture. This destination is also famous for its dances and festivals.

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Mexico

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Mexico, one of the world’s most populous places, has a culture which reflects its history. This eventful destination promotes art, philosophy, visual arts, cinema and media to a large extent. Proving the diversity of the culture, Mexico enjoys a vast array of music genres.

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Uruguay Uruguay which is sometimes called the Eastern Republic of Uruguay is considered to be one of the most preferred retirement destinations abroad. The culture of this place is strongly European and the tradition of gaucho plays a key role in the art of Uruguay.

Costa Rica

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Costa Rica has a very sustainable environment with high human development when compared to other countries at the same income levels. People in this place are influenced by different dance genres. Scenic art, music and libraries are the most important part of its culture.

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Colombia

Colombia is well known for its ethnic diversity, production of coffee, flowers and emeralds. Since Colombia lies at the crossroads of Latin America and the border of the American continent, this place has been influenced by a wide range of cultures.

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Spain

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Spain is an attractive retirement destination which carries a great strength of the Roman heritage. Many countries across Europe have influenced the Spanish culture, be it art, cuisine, music or architecture. Spanish literature is considered to have many emblematic works.

Malta

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Malta is a prominent tourist destination internationally with many historic monuments and numerous recreational areas. The way of life in Malta reflects various cultures including the Mediterranean. It would take one many years to develop an expertise in traditional Maltese music.

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BUSINESS

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PNB’s Prudent Plan to Battle the Banking Crisis PNB has already wakened up to the realization that loans can be given much more prudently than earlier thought possible. It is quitting the rat race of growth for now, and trying to clean up its books. Reeling from bad loans in the power and infra sectors, India’s second largest public sector lender can no longer afford to hide behind the excuse that the root cause for their crisis is huge lending to the private power sector players on government’s behest for supposed nation building. Chairman KR Kamath and his core team is rolling up their sleeves and focusing on what matters most now - to rein in further slippages and maximise recovery efforts. But can PNB do an ICICI Bank in this regard? Only time will tell. PNB also has to start afresh on the crucial life insurance front through a JV with Metlife India, and the bank also needs to shore up its capital, by attracting up to Rs. 1250 crore from Government of India through a preferential issue.

K.R.Kamath, CMD

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And technical advisors in the market, who relies on nothing but technical indicators, are bullish on the PNB stock, as clearly there is a momentum play out there in the Indian market, buoyed further by a possible rate cut, an underperforming Chinese market, and the tiding over of US fiscal cliff.

But apart from such environmental factors and technicals, what is the ground situation at Punjab National Bank? For its long-term investors, it has been a grim story.

PNB needs to shore up its equity further, and the lender is expecting up to a Rs. 1250 crore equity infusion by the promoter, Government of India, on a preferential basis. The PNB

PNB reported a 13.5 per cent YoY increase in its net profit to Rs 1305.62 crore for the quarter ended December 31, 2012. The bank had posted a net profit of Rs 1150.04 crore during the same period of the previous year. The bank reported strong numbers for the third quarter backed by lower provisions and improved asset quality. Total income of the public sector bank rose to 11,518.95 crore for the third quarter as against Rs. 10435.12 crore reported during the same period of the previous fiscal.

management recently approved this move.

On the crucial subsidiary front of life insurance, where peer banks like SBI have made giant strides in recent years, PNB has to start afresh after nearly 3 years since parting ways with former overseas partner, Principal Financial Group. Recently, PNB obtained the last regulatory approval for picking up a 30% stake in Metlife India Insurance to start afresh, after almost 2 years after announcing the new JV. And PNB is yet to recover back to its year-to-date high of Rs. 1091. The stock is way off from its 2-year high of Rs. 1237. And it looks like it will never scale its 3-year high of Rs. 1395 in the near term.

In other words, PNB stock has to appreciate by another 52% from this current ’high’ level for three-year old investments to reach a no-loss state i.e. if you don’t count the FD interest and don’t consider the opportunity cost.

And speaking about opportunity costs, a similar equity investment in HDFC Bank would have yielded a 50% return during these 3 years.

As an aside, the current ‘rally’ in public sector lenders are also an outcome of the P/BV valuations getting stretched beyond all norms at private sector lenders and market darlings like HDFC Bank. In simpler words, they can’t be jacked up further, at least in the near term.

But what on earth happened to the once high-flying Punjab National Bank during these past three years? Can this underperformance be attributed wholly to the infamous post-2008 global financial crisis and the resultant highinterest regime unleashed by RBI in India?

Rating agency Moody’s recently cut PNB’s Outlook to ‘Negative’ from the earlier ‘Stable‘ rating. It should come as no wonder as PNB’s Gross NPA stands at a whopping 4.66%, whereas its Tier-I Capital Adequacy Ratio stands at a troubling 8.72%.

PNB’s restructured loan portfolio too is on the rise. As the pressure on asset

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unjab National Bank is rallying, together with the rest of the banks and financial stocks. The stock of the second-largest public sector lender by revenue has rallied from Rs. 659 during August end to Rs. 919.60 recently - which is almost 40% rise within 4 months flat.

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Rakesh Sethi, ED quality mounted, PNB lowered its provision coverage ratio over the past year. That compounded the problem, and the global rating agency has remarked that if monitorables like gross NPA, restructured portfolio, and low provisioning, deteriorate further, there would be further cut on the ratings.

Moody’s, on their part, doesn’t expect PNB’s situation to improve within the next 12-18 months.

In Q2, Punjab National Bank had recorded the highest jump in gross NPAs among all public sectors banks, by witnessing a spike of 60%.

What created this whole mess is anybody’s guess. And like a couple of its peers in the public and private space, PNB has already wakened up to the realization that loans can be given much more prudently than earlier thought possible.

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To get out of this vicious cycle, PNB has no other way than the ICICI way. It has to stop chasing growth and get its house in order. In other words, clean up and consolidate its balance sheet, before it again gets on track with all other growth initiatives.

In fact, it seems that PNB has already started following this prudent track now. Recent interactions that research houses had with PNB management reveal that focus has shifted completely to rein in further slippages and maximise recovery efforts.

Of course, growth will have to be

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Usha Ananthasubramanian, ED

S R Bansal, ED

sacrificed when shifting the focus in such a fashion. Analysts tracking PNB have guided that credit growth will be muted at 15% levels for FY13 due to this balance sheet consolidation.

state of the existing loan book at PNB. For example, in Q2, absolute GNPA accretion was at 40% QoQ while net NPA accretion was at 60% QoQ. And delinquency ratio at 6.1% has been at the highest level seen in the last 7-8 years in PNB. According to analysts, explanations provided by the management for this sort of dismal performance was not very convincing.

How effective will be PNB’s improved prudence at the loan sanctioning level?

The bank claims that it has become extremely selective on sanctioning loans for infrastructure projects, with future sanctioning to the troubled sector granted only after the project developer has got all the regulatory clearances.

However, such steps concern only new loans, and is no solace to investors who are obviously troubled by the unhealthy

PNB has also been hit badly by the problems in the power sector, especially loans to power producers. It is one among the three lead banks who have lent considerably to power producers. PNB Chairman KR Kamath has recently admitted that there is real concern over the issue of power producer loans turning bad.

PNB’s exposure to infra sector is typically of large and complex deals, and as such carry much uncertainty. A typical example is the Delhi-Gurgaon e-Way where the project is a 3-way affair between the concessionaire (DGSCL), NHAI, and the lenders including IDFC, PNB, & BoI. Since the project has been stalled for considerable time now, Government is mulling the option of IDFC taking over 74% of the project as the promoter, which means the debt of PNB too may be converted to equity, and the lender will have to rely on toll collection to make good on its loan.

PNB has also been hit badly by the problems in the power sector, especially loans to power producers. It is one among the three lead banks who have lent considerably to power producers. PNB Chairman KR Kamath has recently admitted that there is real concern over the issue of power producer loans turning bad. Overall, private sector power producers have taken loans to the tune of Rs. 2.3 lakh crore from various banks.

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ACHIEVER

Meet the Boy Who Landed a Google Job with Rs. 1.16 Crore Package Rushabh Agrawal, an alumnus of BITS Pilani was recently offered a job at Google for a package of Rs 1.16 crore. He takes us through the various stages of the interview process and offers crucial advice to young aspirants. oogle is consistently chosen as the best workplace in the world and engineers all around the world always aspire to be a part of this amazing and innovative organisation. Rushabh Agrawal, a computer science graduate from BITS Pilani, recently got recruited by this dream organisation for a pay package of Rs 1.16 crore in their Mountain View, California Office. In this interview, Agrawal speaks about his personal reactions (read jubilation), the recruitment process and offers useful tips and suggestions for all aspirants.

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How Did it All Happen?

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The campus placement season at BITS Pilani kicked off with the Google written test on August 10, 2012.

Rushabh had almost forgotten about it because nobody heard from them for quite some time. But on August 28, five of the numerous applicants got calls for interviews at the Bengaluru office of Google. And by September 6, they were in India's silicon city for their interviews. I'm sure he would agree with me when I say the wait was worth it.

After all, two of the five lucky candidates (Rushabh Agrawal and Kunal Lad) had been selected for Google's Mountain View office. When asked about his reaction to the news, Rushabh clearly demonstrated the fact that it will remain an unforgettable day for him. "It was in the afternoon and I had just come back from lunch in the

hostel mess." And that was when he saw an email informing him of his selection.

He remembers the moment clearly, "I spent the next 10 minutes reading the email trying to come to terms with what was written in the email." Within 10 minutes, he received a call from the Google HR person who confirmed his selection. That was when the joyous feeling finally seeped in for him. While she went on to describe the package details and terms of joining, Rushabh was too jubilant to care about all that she was saying! His friends and 'wingies' were already shouting and cheering around him -- while the HR spoke to him over the phone. Rushabh declares that the feeling was "too-good-to-betrue".

On the Selection Process We've heard of those brain teasers and super-tough questions from Google's interview. But Rushabh disagrees and says the process is "more or less similar to companies like Microsoft, Amazon etc. The only difference was in the length of the placement process."

Usually, when companies come for campus placements, the process is wrapped up within a day, on the campus itself. However, Google, Rushabh says, almost took a month. He says there was an initial screening test followed by a series of interviews. All interviews they had at Google were technical and each interviewer tested a different domain of knowledge and thinking. One of the rounds featured an open ended

discussion, he says. Rushabh also had a couple of publications in his kitty which he discussed with his prospective employers. The most interesting part, according to Rushabh was that there were no eliminations at the end of each interview. "All of them went through the same number of interviews," he clarified. During the interview, the interviewers constantly took down observations/opinions. In his opinion, at the end of the entire process, all the points are tallied to select the candidates. He cheerfully tells us that apart from the interview, they got to enjoy the lunch at Google and were put up in a "really awesome place for the night." On the skill-sets companies like Google, are looking for in candidates He informs us in a matter-of-fact way that knowledge of data structures and algorithms are a must, along with "decent coding skills." In addition, knowledge of computer networks and object oriented programming (OOP) can come in handy as well. Knowing anything else is a bonus. By 'anything else,' he means practice (solving problems in this case) helps a lot.

Interviewers generally evaluate a candidate based on his/her response (thinking process, approach) to unknown problems. So they look for problem solving skills as well, in addition to experience, he added. It is an established fact that companies like Google look for highly intelligent people. And the resume, along with the interview process, gives them ample

On Creating the Perfect Resume Companies like Google don't care about the candidates' non-technical achievements. So don't clutter your resume by mentioning those. Keep your resume short and crisp. No point explaining everything as they do not "study" your resume, says Rushabh who had compiled his professional and educational experience to make a one page CV. During the interview, the interviewer may glance through it and

He cheerfully tells us that apart from the interview, they got to enjoy the lunch at Google and were put up in a "really awesome place for the night."

on finding something interesting, would like to talk about it. This will start a discussion and the conversation, which is now in your hands, offers a good chance to impress the interviewer, observes Rushabh. "Write your resume accordingly - such that it evokes enough curiosity in the mind of the interviewer" suggests Rushabh. Also, you'll obviously want to talk about some of your projects/publications more than the rest. So highlight your work. Interested people would obviously want to know how much preparation goes into winning such great offers, right? To which, Rushabh replied: "I didn't prepare for Google specifically apart from going through some of the Google interview questions available online, a couple of days before the interview." According to him, the questions in general are similar to what one would encounter in interviews for Microsoft, Amazon or any other similar company. "Preparing for placements in general over the summers, worked out good enough for me", he says (practice is the key, evidently). This type of preparation is only to channelise one's thought process for the problems posed during interviews, which are different in nature to what one would otherwise encounter.

An important point to note is that the range of questions asked in interviews is not very broad. So the preparation basically familiarises you with common tricks and stuff that would come into use frequently. Knowing them won't necessarily impress the

interviewer but not knowing them would take you a notch below the rest of your competitors. Beyond that, whatever you have done so far publications, projects, coding experience, etc will come into play. You basically use all the knowledge gained and skills acquired in the past few years.

We asked Rushabh to give some advice to all the students out there who're aspiring for similar job offers. To start with, he clarifies that that the interviews at Google are not very different from those at Microsoft or Amazon, contrary to popular opinion. He, personally, did not find them "extra difficult" (and he says this on behalf of all five who made it to the interview round). Also, during the interview, you are not judged by how you reach the most optimal solution, you are in fact, judged on your thought process. At the same time failure to reach the final solution is not the end of it, he says. For the first and second year students, (and many of them have asked him "the recipe" to get a job at Google), he says, "You will need a lot of coding practice and a very good knowledge of data-structures and algorithms to get a job like this." But that is not the only way, he insists. Rushabh, himself, didn't possess a great coding profile but his profile was stronger because of his projects and publications, especially in areas like machine learning, rather than algorithms. "What I feel is that you must try to gain as much knowledge and skills as you can. You never know what will come handy," he says. The candidate's intelligence and problem solving ability would take care of the rest. "You basically pursue whatever interests you or excites you" he counseled. There is no long term preparation for getting a particular job and thinking in terms of that would not only restrict you but, also, is too short-sighted an aim to have.

Of course, every aspirant has to spend small amounts of time preparing explicitly for interviews. It's just a great exercise to streamline the thought process. Like any other interview process, a lot depends on factors beyond one's control. As they say, the rest depends on the day.

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opportunities to evaluate a candidate's intelligence.

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BANK IN FOCUS

SBT IS IN A SWEET SPOT

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ot many banks of its size gets around Rs. 95 crore daily as NRI remittances. State Bank of Travancrore has not only managed this feat during the last quarter, but is putting that money to good use.

Shedding the image of stinginess traditionally associated with public sector banks, SBT has been keeping its base rate at 10.25% which is lower than most banks. And that has translated to stupendous growth with current credit growth pegged at 27%, which is much above even RBI’s best guidance. This associate bank of nation’s largest

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lender, SBI, has also been widening its wings outside Kerala, with its most prominent expansion being in the neighbouring state of Tamilnadu which is noted for its booming industrial growth. Out of the 954 branches SBT has now, 113 are already in Tamilnadu.

The bank is working hard to cross the

To win permanently in the fight against NPAs - its gross NPA is at 3% and net at 1.75% - SBT will be switching to a fully automated loan processing system by 2014 itself.

P Nanda Kumaran, Managing Director

SBT Head Office overall branch strength to 1000 in this financial year itself, with 20 new branches being planned in the neighbouring state. To win permanently in the fight against NPAs - its gross NPA is at 3% and net at 1.75% - SBT will be switching to a fully automated loan processing system by 2014 itself. The RBI supported move eliminates human intervention and subjectivity and ensures that all credit goes to capable hands with repayment power. To clean up the current book, SBT had also resorted to proactive sale of bad loans. Under the leadership of P Nanda Kumaran, Managing Director, SBT is also focusing more on growing the safer retail business, which had taken a back seat earlier.

The bank will continue its focus on enhanced NRI services, and a company managed by SBT, Global Money Exchange Company, has been growing steadily in capabilities and volumes. All these factors indicate that SBT is in a sweet spot to perform.

But what would really give it a shot in its arm is if Chidambaram’s plan to create a bigger SBI is accelerated, by merging in associates like SBT. Markets are already anticipating it and the independently listed SBT stock has rallied by over 36% in Precent Nanda months.

Kumaran, Managing Director, SBT

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HOSPITAL-IN-FOCUS Centre for Infertility Management & Assisted Reproduction (CIMAR)

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Helping Precious Babies Arrive, Safely

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odern infertility treatments including IVF and its myriad forms remains one of the most difficult frontiers of medicine, the success in which calls for sheer excellence. It is not something that financial or management skills alone can build. CIMAR’s success is ample proof for this phenomenon. The people behind Centre for Infertility Management & Assisted Reproduction (CIMAR), including its founder Dr. KK Gopinathan, were not the classic medical entrepreneurs dreaming big about the next big super-speciality hospital in the state. Rather, Dr. Gopinathan, a doctor in government service for more than 25 years, dreamed only about doable projects, but high-quality projects. He started off small in 1990 with the then 25-bedded Edappal Hospitals. Today, his pursuit of quality and ethics has ensured that the Edappal Hospitals Pvt Ltd is a 350 bedded project with all advanced departments including Cardiology. But Edappal Hospital is more famous today for spawning off CIMAR, arguably one of the largest and most advanced infertility chain in Kerala and South India. Even the success of CIMAR was not planned in the biggest of leagues.

It started off as the Infertility Division of the Obstetrics & Gynaecology Department of Edappal Hospitals. But systematic success can’t be stopped by anything in this world. The spawning

Dr K K GOPINATHAN MD, DGO

off of CIMAR at Edappal became inevitable, as Dr. Gopinathan and team was ready with ICSI for the first time in Kerala in 1997. Together with it, CIMAR pioneered PESA, TESA, TESE and MESA in the state. The very next year, in 1998, CIMAR created history by succeeding in delivery by a ICSI conceived mother. More achievements followed. CIMAR shot into national limelight, when it beat more established IVF clinics in metro cities to produce India’s first baby using Recombinant FSH. And ever

since then Dr. KK Gopinathan and his team of super-specialist doctors have never looked back. Pioneering achievements followed one after the other, like pregnancy and delivery by a post-menopausal 48-year old woman, and the first baby in South India born using advanced PGD techniques.

Edappal Hospitals led by Mrs. Chitra Gopinathan as Managing Director, also invested heavily into making CIMAR into perhaps the most advanced infertility chain in the state.

Commissioning of facilities like PGD, Karotyping, FISH, Fetal Medicine Department, IVM, IMSI, male infertility treatment etc ensured that CIMAR obtained a rightful presence in the world medical tourism map for infertility treatments as all of these facilities are only available at a handful of hospitals around the world. But Dr. KK Gopinathan’s success is not one of machines or technologies but of investing in grooming the best medical professionals. Today, why couples prefer CIMAR is not only due to its

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high success rate, but the kind of holistic medical service delivered to couples and their families. For example, a team of fetal medicine experts, geneticist, and neonatologist together deliver the best genetic counselling at CIMAR. This chain of hospitals is also noted for its unique team of super-specialists that is the finest mix of youthfulness and experience. Through this period of explosive growth, CIMAR also became recognized the world over, with it being the first FOGSI recognized infertility training centre in South India. The best in infertility treatment in the world was recognizing that CIMAR and its doctors are capable enough of training other doctors in this high-tech field. Today, CIMAR Cochin, one among this chain of four hospitals offers all the facilities at CIMAR Edappal, but also some more. In tune with Cochin’s emergence as the preferred medical tourism destination in Kerala, CIMAR Cochin has luxurious rooms much like in a luxury hotel. Both CIMAR hospitals offer departments like Infertility, Genetics, Fetomaternal Medicine, Routine Antenatal Care & Labour, Neonatology, High Risk Pregnancy Care, and Mind Body Medicine. CIMAR has also started off in Coimbatore (associated to Manu Hospital), where they offer departments of infertility and fetomaternal medicine.

CIMAR’s expertise in managing high risk pregnancies has ensured that their slogan of ‘Making Babies Together, Saving Babies Together’ is quite deserving.

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H E A L T H

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STRENGTHEN YOUR IMMUNE SYSTEM

REDUCE YOUR STRESS Some stress can be a good thing. It's your body's way of preparing for a challenge, such as giving a presentation.

But a steady stream of stress can be bad for your health. Studies show it can even weaken your immune system -- your body's system for fighting off disease and illness. Reduce your stress by avoiding whatever stressors you can.

Take the time to relax and do things you enjoy.

ENJOY REGULAR SEX

law students found that when they were feeling more optimistic, their immune system was stronger. To increase your optimism, take time to savor the things you enjoy, look for the silver lining in difficult situations, and try not to dwell on negative thoughts.

radicals, molecules that can damage cells. To get a wide range of antioxidants, choose fruits and vegetables of different colors, such as oranges, green peppers, broccoli, kiwi, strawberries, carrots, watermelon, papaya, leafy greens, and cantaloupe.

HAVE A LAUGH

TAKE YOUR VITAMINS

A good belly laugh might be good for you. While there's some evidence that laughter may help boost our immune system, overall research results have been mixed. A group of researchers who

If you have a feeling your diet is lacking, consider taking a multivitamin. A daily multivitamin will help ensure that your body is getting all of the building blocks for a healthy immune system. Some

looked at several studies about laughter and immune function found that people who laughed out loud at funny videos had higher immune function after watching the video. But more studies are needed to prove whether laughter actually helps prevent or minimize illness.

nutrients that may be especially important for immune system health include selenium, vitamins A, C, D, and E, zinc, and magnesium.

It turns out that sex doesn't just make you feel good -- it's good for you, too.

Studies have shown that a good sex life can be a boost to health. One study looked at the connection between sexual activity and health in people middleaged and older. The researchers found that those who had frequent sex were in better overall health than those who had sex less often.

GET A PET There's a reason dogs are called "man's best friend." Dogs and other pets can offer us companionship, exercise, and even good health. Studies have found that having a pet can help reduce blood pressure, lower cholesterol levels, and improve heart health. One study showed that having a dog can help improve immune system development and may reduce the risks of allergies in children.

BUILD A STRONG SOCIAL NETWORK

KEEP A POSITIVE ATTITUDE Positive thoughts can give your immune system a healthy boost. One study of

EAT YOUR ANTIOXIDANTS Eating plenty of fruits and vegetables can help you get a healthy dose of antioxidants. These substances in foods help protect your cells from free

AVOID EMPTY CALORIES Processed foods such as fast foods, snack foods, candy, and soda don't provide much in the way of vitamins, fiber, or other nutrients. And they often contain other additives and chemicals that may not be good for your body.

When you choose these foods over more nutrient-rich foods such as vegetables, fruits, and whole grains, you

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We all know friends are important, but strong social ties can also have a big effect on your health. A recent study found that people with strong relationships were 50% more likely to survive than those with poor social ties.

To broaden your social network, try volunteering, taking a class, or joining a group that interests you. And be sure to nurture the bonds you already have.

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risk depleting your body of essential nutrients.

CONSIDER HERBS AND SUPPLEMENTS

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Many people take herbs or supplements to improve their overall health. Some supplements have been shown to affect the immune system. But more welldesigned studies are needed to learn their beneficial effects on humans.

These include garlic, ginseng, milk thistle, astragalus, and probiotics such as lactobacillus and bifidobacterium.

Talk with your doctor if you have questions about which supplements may be good for you.

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One study of law students found that when they were feeling more optimistic, their immune system was stronger. To increase your optimism, take time to savor the things you enjoy, look for the silver lining in difficult situations, and try not to dwell on negative thoughts.

GET A GOOD NIGHT'S SLEEP Without enough sleep, your immune system may not have the resources it needs to fight off illness. Most adults need about seven to nine hours of sleep each night. You can help yourself to a more restful sleep by keeping a regular schedule, getting exercise, avoiding caffeine and alcohol close to bedtime, relaxing before bedtime, and keeping your bedroom at a comfortable temperature.

LIMIT ALCOHOL Drinking alcohol is part of our culture.

Many people drink at meals and at parties as a way to socialize and celebrate. But drinking too much alcohol can weaken your immune system and cause you to get sick more often. To minimize risk, men should have no more than two drinks per day.

Women should not have more than one drink per day.

KEEP YOUR BODY MOVING

KICK THE NICOTINE HABIT

One simple way to strengthen your immune system is by exercising. Getting regular exercise can also reduce stress and help lower your risk of osteoporosis, heart disease, and certain types of cancer. You get the most benefit when you exercise at a moderate level a few times a week. Any type of movement is helpful, including bicycling, walking, yoga, swimming, or playing golf.

Here's another reason to give up smoking -- it weakens your immune system. Even if you're just an occasional smoker, you're still at risk. According to the U.S. surgeon general, even low levels of exposure to tobacco can cause health problems, including heart attack, stroke, and asthma. If you need help quitting, talk with your doctor.

WASH YOUR HANDS One of the easiest ways to help your immune system fight illness is to wash your hands regularly. It's also one of the best ways to keep yourself and others healthy. Be sure to use soap and clean, running water, and wash for at least 20 seconds. If you don't have access to soap and water, use an alcohol-based hand sanitizer that has at least 60% alcohol.

CHANGE OF GUARD

A Veteran Back at BoB, Now at the Helm The decision-makers who selected SS Mundra for the top job at Bank of Baroda seems to have done an exceptional job.

Because, Mundra is not just a public sector banking veteran, but a BoB veteran who has served it for nearly three decades before moving on to higher responsibilities at peer Union Bank. Not only that, Mundra is well versed in BoB’s specialities like its large overseas business, having headed its UK operations for 3 years. It is also noteworthy that Mundra is being brought back at a time when BoB’s once invincible asset quality standards are being called to the test. And SS Mundra has already shown that he is in the correct track, having said that there is no room for complacency as far as asset quality at BoB is concerned.

Mundra is no newbie to the bank. He was with Bank of Baroda for almost three decades before he quit to join Union Bank of India as executive director in September 2010.

The new chairman holds a Master's in Commerce. He joined Bank of Baroda in 1977 as a probationary officer. In his first stint with the bank, he looked after a range of portfolios like treasury, credit, and served as the zonal head for the Maharashtra & Goa zone.

He had been in Bank of Baroda’s treasury function from 2001 to 2005, and then again in 2007. He has worked in various treasury functions, including money market operations, treasury back office and front office, and as general manager of the entire treasury operations.

His experience as chief executive of Bank of Baroda’s UK Operations for 3 years, will also help the bank immensely as Bank of Baroda is one of the few Indian banks with significant

international operations. He has also worked at Bank’s subsidiary in Uganda during 1994-1997.

Mundra is credited for the successful follow-on public issue of the bank in 2006. According to Mundra, one of his top priorities will be to focus on the much-neglected human resources of the bank. The Reserve Bank of India has marked the current decade as the decade of retirement for public sector banks and Bank of Baroda is no exception to that.

“All the public-sector banks will see a lot of superannuation taking place in the next 2-3 years. The challenge is to groom new leaders within the bank who can drive the Indian banking in the coming years,” Mundra says.

Mundra is an avid reader. His interests range from leadership and literature to banking, yoga and philosophy. He hopes to build on Bank of Baroda's already well-entrenched position and keep its leadership position intact in the future

However, Mundra says, “ There cannot be any room for complacency in this challenging economic environment.

Maintaining the asset quality is a challenge.”

S S MUNDRA

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he challenges facing S S Mundra, the new chairman and managing director of public sector lender Bank of Baroda, are different from the ones his peers have to deal with. While most state-owned banks are grappling with asset quality headwinds, Bank of Baroda is quite comfortable on that front. The lender has managed to maintain a decent gross and net non-performing asset ratio in comparison to other banks, despite some problems in asset quality.

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CHANGE OF GUARD

CAN KARL SLYM REV UP TATA MOTORS?

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Winds of change are not just blowing at Tata Sons. Soon after Ratan Tata has quit the leadership role at Tata Group, with may be his deepest disappointment being the lacklustre performance of Nano, a new leader has been introduced at Tata Motors. GM veteran Karl Slym is not only bringing that experience to Tata; but rather his deep knowledge about Asian markets, especially China and India. Because, it was on this Stanford educated Englishman’s original thinking that GM made joint venture breakthroughs in China and carved a niche for itself with modest successes like Spark, Beat, & Cruze, against formidable rivals like Suzuki and Toyota.

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One, the company Slym has recently taken charge of, Tata Motors, snapped up Jaguar Land Rover (JLR) from Mulally’s Ford in 2007, a decision viewed as disastrous for Tata at the time considering the company’s hefty losses, but now considered inspirational, given JLR makes up 68 per cent of the consolidated sales and over 90 per cent of profits (Slym is responsible only for the Indian operations and not for JLR).

Second, Ford is still around, thanks to one of the most brazen and astonishing rescue acts in auto history, engineered

by Mulally and Slym may have to take a few notes from his former rival, given his new company is seen to be in deep trouble.

Mulally stemmed Ford’s massive losses and declining market share by mortgaging all of its assets to borrow $23.6 billion (Rs 1.26 lakh crore) so he could finance a major overhaul and bring the firm back into the black.

Meanwhile, rivals General Motors and Chrysler both went bankrupt and had to go crawling to the government with begging bowls.

Slym doesn’t face such an epic challenge after all, his company is profitable, has a trustworthy brand, deep pockets and a vast distribution.

But there’s no denying it is in quite a pickle. According to data of the Society of Indian Automobile Manufacturers, Tata Motors’ domestic market share has slipped in both passenger and commercial vehicles, and, in September, it experienced the ignominy of being overtaken by Mahindra and Mahindra in monthly auto sales, pushing it albeit temporarily from third place into fourth. The car maker has had no new products in two years and has launched just four cars Vista, Indigo Manza, Nano and Aria in the past 10, none of which has exactly set the

automotive world on fire.

Meanwhile, the one thing that has caught on fire has been the Nano, literally a number of them burst into flames in 2011, denting its reputation.

It should have been a runaway success, selling 700,000 units to date, but has only managed to reach a little over the 200,000 mark. Maybe, the most damage sustained by the company is in its brand image as much as 60 to 70 per cent of its passenger car sales, say observers, go to fleet owners and taxi operators, and so its sturdily-built Indicas and Indigos are generally shunned by style-conscious car buyers.

This is a serious problem since diesel vehicles, led by the Indica hatchback, constitute 70 per cent of the company’s car sales. If this isn’t bad enough, Tata is way behind the technology curve, procuring its engines from Fiat.

The irony of these slip-ups is Tata Motors should have been the king of Indian automobiles by now. Its Safari and Sumo vehicles paved the way for the rise of the sports utility vehicle. The Nano, as a concept, was nothing short of revolutionary. It had many firsts among which was India’s first indigenous car (Indica) and its first micro truck (Ace).

Hiring Slym is a good first step in trying to reclaim this lost glory. Coming from GM one of the most bureaucratic organisations, second only to Ford, according to analysts Slym will have the right DNA to navigate Tata Motors’ own labyrinthian structures. A native of Derby, UK, Slym is no stranger to India.

“He has an understanding of the Indian market, has experience in setting up a plant as well as best practices technology, success in getting board approvals and has the ability to handle large projects,” says V G Ramakrishnan, MD, Frost and Sullivan – South.

It helps that he does have a genuine affection for the country. After living in some eight countries, it is in Delhi that Slym and his wife Sally (who met Slym when she was processing his insurance papers after he had gotten into an accident) decided to buy their

first house. Apparently, Slym loves to photograph trams in Kolkata no doubt influenced by his father-in-law who oversees the tramway museum in England. Slym also radiates confidence enough to appear on a television commercial on behalf of GM in India a few years ago in an effort to boost the auto maker’s image at a time when things were rocky.

Slym’s past India experience also augurs well for Tata Motors. While GM's parent was heading towards bankruptcy around 2010, Slym managed to shield the India unit from the parent’s global woes and successfully made small cars his company’s focus area, introducing many variants including diesel, liquefied petroleum gas and compressed natural gas versions something that could resonate at Tata Motors. GM India’s modest success with the Spark, the Beat both small cars and the Chevrolet Cruze was largely because of him.

But this may not be enough to help him overcome the ossified Tata work culture, says Frost and Sullivan’s Ramakrishnan. The problem is, people have been entrenched in the company for a very long time, he says, and there is a tendency to resist change. Slym will have to work hard to co-opt people and it may take a generational shift to bring in real progress.

That shift already seems to be happening. Forty-nine-year old Slym will be assisted by a team that is both young and experienced. Ranjit Yadav, former country head of Samsung India, will steer the passenger vehicle business, which needs the most amount of work since commercial vehicles are the company’s real breadwinner, bringing in 70 per cent of the company’s sales. Neeraj Garg, exdirector of Volkswagen, is also a new vice-president at the company.

This new generation may just be the best chance that Tata Motors has to achieve the promise it once set out for itself.

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x-head of General Motors (GM) India Karl Slym may not have realised this, but he has a few things in common with Alan Mulally, the global head of his former arch rival, Ford Motor Co.

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YOUTH ICON

"I am My Father's Daughter"

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300-square feet, oneroom tenement that is part of a labyrinthine settlement so typical of India's financial capital, home mostly to people from the neo middle class and their sky-high ambitions. Overnight, Prema Jayakumar, the 24-year-old daughter of Jayakumar Perumal, an autorickshaw driver for the last 20 years, who topped her final chartered accountancy examination by scoring 607 out of 800 marks (75.8 per cent), considered one of India's toughest competitive exams, has become a shining example of how "hard work, hard work and hard work" (please see video) can bring success at the doorsteps of anybody with "a mission in life" irrespective of class. Overnight, Prema's world has turned upside down, and she is not complaining, as we, the media, in its zeal for a 'positive story after a long-long time' turn her into a role model (which she indeed is because of what she has achieved despite odds), a celebrity (which she is not as she doesn't hide her discomfort while coping with the media's excesses) whose virtues and scholarly aptitude needs to be minutely examined under a microscope and highlighted over air waves, ether and bold newsprint sooner than competition.

It is in this context that Prema's mother, Lingammal, a god-fearing woman who had toiled all her life for this very moment, was beseeching her to come

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Meet all-India CA topper Prema Jayakumar, whose father Jayakumar Perumal drives an auto rickshaw to make ends meet, and find out what inspired her despite all odds.

"Doing CA was a passion," says Prema beaming like an innocent child who had asked for the moon and got it. "But topping the exam at the all India level came as big surprise," she says as a retinue of media persons wait their turn for her interview. Exhausted with all the attention she has attracted ever since the news broke out this Monday about her feat, Prema was running a slight fever and had to visit a doctor on Wednesday morning for medicines with Dhanraj.

Non-stop media interviews, felicitations, a steady stream of visitors, local politicians who wanted to bask in her glory and relatives distant and near is what Prema had been attending to since Monday and it had taken a toll on her frail built and health which she had so assiduously conserved during those marathon bouts of studying, discussing and problem solving with her brother.

"It feels great," says Dhanraj when asked about his sister's achievement "like a double dhamaka," he quips to anybody who congratulates him. "We studied for 10 to 12 hours at a stretch and at such times maintaining good health is very important," he says looking at his sister in the narrow verandah that leads to their house on the first floor of S B Khan Chawl in Malad East, a north-western suburb in Mumbai. Dhanraj is all admiration for his sister and her determination and

devotion, two things that, Prema says, kept her going through times thick and thin. At moments like this day when she is not keeping well it is this stamina built during her exam days that helps her bravely face the media with a smile that is grace personified.

One can guage Prema's determination as she patiently poses for photographers, gives them interviews, turn-by-turn, even after throwing up medicines she was trying to consume making Lingammal a bit anxious as she asks her relatives to give her some sugar.

Just a pinch of sugar and Prema's smile comes back, determined and ever so humble as she is, to come out and offer her take on her hardships, study methods, and everything that we the media people ask her.

Though most of her answers to similar type of questions differed in tone and measure, she answered in the same vein when we asked her about her parents.

"They are my life; they have given me life and I want to give them rest now.

The reason why we siblings did not face many hardships as we grew up was because they silently toiled while we studied," she says about her father Jayakumar Perumal, an autorickshaw driver for two decades ever since he migrated from Periyakolliyur village in Tamil Nadu's Villupuram district and her mother who would work from home for a cottage industry, a source of daily income to millions of homemakers like Lingammal.

It was as recent as 2010 that Prema and Dhanraj told their mother that enough was enough and because they earned stipends through their articleships - a sort of mandatory apprenticeship that chartered accountants must enroll for as accountants in any firm even as they prepare for their CA exam - they would manage the costs that would come their way en route to achieving their mission in life. "The fact that we were earning during our articleship also helped. We would defer unnecessary spends. But we were determined to do our CA at any cost," says Dhanraj from inside his house that contains a television for entertainment and pictures of gods and goddesses to keep their faith in their destiny intact.

Jayakumar, however, continued with his 12-hour duty that began at 8 in the morning and ended at 8 in the night, to ferry people in the city in his autorickshaw, earning him, in recent times, Rs 15,000 every month. A simpleton to the core, Jayakumar, who has studied only till Class V, answers pointed queries from the media without showing a trace of discomfort. He never utters a word to even hint that his finances were stretched as his two children began their tryst with higher education. All he says is this: "I have studied only till Class V in a remote village. I didn't much understand what Prema and Dhanraj wanted to do when they said they would like to become CAs one day. But we never questioned

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into the house and eat some food (Beta khana kha lo na!) in their kitchen, just 80 square feet in size that accommodates a Cudappah platform to cook food, a cabinet full of steel utensils, a plastic drum to store water, a small bathroom and a toilet. The rest of the house makes up for their living and study room, where Prema would either sit on a five-feet long cot or on the empty floor to study and her 22-yearold brother Dhanraj, who too cleared the CA exam in his first attempt just like her sister, would sit on a study table for almost ten to twelve hours a day as they prepared for their D-day, exchanged notes and discussed their difficulties to find a proper solution to achieve their mission in life.

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their decisions about what they wanted to do and always stood by them." "We would always encourage them to study whatever they wanted, the way they wanted. We always assured them that we would do all we could to help them achieve their goals in life." Now it is time Jayakumar takes it easy and enjoys the small pleasures of life.

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"In the next few months Dhanraj and I are sure we will get a good job. Then we would request father to retire and do all that he could not do because of the pressure of rearing three children and taking care of their education," says Prema. Mahalaxmi, the eldest sibling, is a homemaker and hugs her mother, letting her eyes express her emotions, as she joins the family to celebrate its success. The odds that the family faced gave birth to Prema's doughty determination. "I had seen my mother and father struggle to make ends meet when we were kids. I was always determined that one day when we grew up we would have to help them with their everyday struggle," says Prema, who studied in Tamil till Class VIII from a Tamil medium municipal school in Malad, about how she felt when she was in school. "It was only in the ninth standard that I began to learn and understand English. The switch was difficult, but then if you have the determination to do something, hurdles look small," Prema says about how she was introduced to an alien language, but yet adapted quickly. It was this determination that got her 79 per cent marks in the tenth standard, 80 per cent in the twelfth standard and later 90 per cent marks in her final year of graduation to emerge second in Mumbai University.

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Despite her academic record Prema humbly offers that she was confident to pass the CA exam, but emerging the national topper has completely floored her. "Two days before the results, everybody had huge expectations from me. People would ask what rank I would get as if I had already got my rank before writing my exams. That built huge pressure on me not only to pass, but pass

makes no effort to hide his happiness as he gets busy distributing sweets to family, friends, relatives and, of course, the media. He knows his sister has set a precedent that has catapulted his family into the national limelight with his sister being referred to as a role model for India's youth.

"It was only in the ninth standard that I began to learn and understand English. The switch was difficult, but then if you have the determination to do something, hurdles look small." with good rank," she says of the nail biting moments before the results on January 21. "When a former ICAI president called and asked if I had seen my results, I trembled with nervousness.

I said I hadn't. Then he told me that I had topped the all-India CA exam. I began to cry. He asked me to hand over the phone to my father and informed him about the result," Prema recalls.

"My mother and I are very emotional.

We always cry when we hear good or bad news. We all cried when the news broke," she adds.

Dhanraj, who is still soaking in the kind of affection bestowed upon the two siblings and their parents – people, total strangers, who come to meet them affectionately bow down before Jayakumar and Lingammal – says, "We were determined to do our CA at any cost. When you have the determination and devotion to excel in any field huge hurdles only look very small." While Dhanraj too cleared the exam with 450 out of 800 marks in the CA exam, he is clearly in awe of his elder sister and he

Prema now knows that the focus would be on her not only because she has topped the exam nationally despite her modest financial background but also because she has done it at a time when women are increasingly under attack from sex predators on one hand and a section of society that would want women stereotyped and tethered to the kitchen. And she has a fitting reply to such forces. "Nobody today should think that only men can make their families proud by excelling in academics or sports or any other field and take care of families. Today, women too are getting empowered because of their education and can do all things that boys can do. Girls too have begun to excel in all fields," she says convincingly. To those men who look down upon women as objects of their desire she has this to say: Change your attitude NOW and don't look upon women from that point of view.

Expressing her disbelief that she has topped the CA exam, Prema says, "It is very difficult to believe that one would top the CA exam. But when I started I was sure of just one thing: come what may I have to pass in my CA exam. Once I had walked a step forward I knew I could not go backwards. And I did it," she says without pausing to breathe. "You must have the determination that I want to achieve my goal in life. I had worked a lot for excelling in academics and today my efforts have been paid for with god's grace and my family's blessings," she says. "I am proud to say that I am my father's daughter," she says when asked how she feels after being projected as a role model to nation's youth.

(By Prasanna D Zore)