WALL NO: 4 PANEL NO: 3 6th Oct 2017

INSCRIPTIONS 19 TRUTH NEVER FADES

HIGH LIGHTS OF THIS ISSUE

1) SCULPTOR INSCRIBES: CREATIVITY: 6TH ELEMENT OF THE UNIVERSE PART 1

2) GURUS SPEAK: GROWTH WITH RISK 3RD STAGE OF FINANCIAL PYRAMID PART1

3) CATERPILLAR SPACE: MONEY TIPS BY CHANAKYA 2300 YEARS AGO BY MR MAHENDRA KAMAT CA

WALL NO: 4 PANEL NO: 3 6th Oct 2017

R.GOPINATH

gopinathr@go-past.com

CREATIVITY- 6TH ELEMENT OF THE UNIVERSE

PART 1

CREATIVITY: THE 6TH ELEMENT OF THE UNIVERSE

R.GOPINATH gopinathr@go-past.com

UNIVERSE IS CONSIDERED TO BE CONSTITUTED WITH 5 ELEMENTS. THE EARTH, THE SKY (SPACE), AIR, FIRE AND WATER. THE 6TH ELEMENT THAT THE HUMANS’ OF THE UNIVERSE HAS DEVELOPED IS THE POWER

OF CREATIVE THINKING. THIS WILL BE THE DETERMINING FACTOR FOR BUSINESSES AND LIVES

IN THIS MODERN ERA.

CREATIVITY: THE 6TH ELEMENT OF THE UNIVERSE

CREATIVITY: THE 6TH ELEMENT OF THE UNIVERSE

Let us start by solving some problems:

1)What is 4 + 5 = ?

2) Solve this equation also:

For the question number 1: The obvious answer is 9

The question is can you find 5 answers for the same question?

The moment this question is raised in the class, our participants used to answer as 3+6 or 10-1 like that. They are correct.

CREATIVITY: THE 6TH ELEMENT OF THE UNIVERSE

But look at the following answers:

4+5 = 2.

How? Suppose you number the week days as Sunday=1, Monday=2. Tuesday=3, Wednesday=4, Thursday=5, Friday=6 and Saturday=7.

4 represents Wednesday add 5 days to it you will get Tuesday that is 2.

That means now you have carried an arithmetic problem to another field called Calendar.

4+5 = Green

How. with 4 units of yellow paint add 5 units of blue paint you will get Green colour. So an arithmetic problem is now carried to a field of printing and colours.

4+5 = -1

How? To a cart that is pulled by 4 horses tie 5 horses on the other side, the movement will be 1 HP on the other direction. So now we have carried an arithmetic problem to field of vectors and dynamics.

CREATIVITY: THE 6TH ELEMENT OF THE UNIVERSE

4+5 = 0

How? To a group of 4 workers add 5 more persons who are talkative, they whole group will be gossiping and the total output in terms of production will be 0. We have now carried the arithmetic problem to organisational psychology or group dynamics.

In this way there can me numerous solutions to this arithmetic problem.

Now let us look at question no: 2

The first answer that pops out is 15, but it is not the only answer, there can be many. We will see such answers in the next issue of Inscriptions.

SO THE FIRST ASPECT OF CREATIVE THINKING THAT WE LEARN HERE IS THAT “ THERE CAN BE MORE THAN ONE ANSWER FOR A PROBLEM AND THE MORE THE ANSWERS WE CAN FIND THE MORE THE CHOICES WE HAVE TO SOLVE IT”.

CREATIVITY: THE 6TH ELEMENT OF THE UNIVERSE

Some comments i get to commonly hear when i start a training on Creative thinking:

1)This might be needed for artists, play writers, designers and people like them.

2)Creative thinking is a natural ability and it can not be acquired by training.

3) i don’t think that i can ever think “out of box” 4)Such new ideas comes once in a while by itself, by luck,

or coincidence.

While there may be some truth in these statements, they are not always true.

Creative thinking might be more visible in the creations of a play writer or an artist, but this ability is useful in every sphere of life and business.

Even in a field like Law, which is operative on logics, there is scope of creative thinking. For example an prosecutor cross examining the accused, who he knows is lying about not being present at the scene, uses a method called reversal. like he insists on a time that the crime took place, that the accused refutes it by giving the correct timing of the incident. Earl Stanley Gardner the creator of “Perry Mason” has demonstrated this in every one of his book.

In a kitchen, the lady finds the knife missing, and the syrup in the vessel is boiling on the stove, that the cut vegetables need to be put inside it, uses a spade to chop the vegetable ( albeit not shapely) and drop into the boiling syrup just in time.

CREATIVITY: THE 6TH ELEMENT OF THE UNIVERSE

Boys find the ball punctured, fill it with waste papers and roll rubber bands on it to play with a home made ball.

The host has only 23 candles and it is the 25th anniversary of the couple, makes a Roman letter XXV in a formation with the 23 candles.

A tailor sees a wrong cut made by his assistant on a cloth given for stitching a suit, makes a design of the cut, that the customer finds it a nice surprise of a new design.

Right from board rooms where directors take policy decisions to the shop floor where the worker solves a problem, creative thinking is in play. Right from parliaments where nation’s destiny is shaped to the farmer on the field to the teacher in the school to the labour on the road, everywhere creative thinking plays well.

CREATIVITY: THE 6TH ELEMENT OF THE UNIVERSE

Whenever a human is faced with constraint, his brain fights the constraint, wriggles itself out and comes out with fabulous solutions that the world has never ever seen.

Mahatma Gandhi entered the freedom movement of India almost 40 years since it had begun. His belief in truth, and his understanding of humanity, gave India a different direction. Till then world wide struggles have been violent. The mightier won. Gandhiji thought differently. When people use physical might they cause pain to others. He knew that it will cause pain even to the one who inflicts it. Basically he also is a human being. So we will attack no one, hit no one, but we will receive the blows, and through our pain we will make them see their injustice.

People have never been used to this type of a struggle. For them it has always been hit them, kill them and they will be afraid of us and they will run away scared. But that strategy was not working, because they were more equipped. And the war was mostly one-sided, in their favour.

When Gandhiji launched Satyagraha, non-violence, non-cooperation and led the struggle from the front, the armed forces of the Raj continued their style of attacking, lathicharging, firing on a crowd that did not hit back, but took all the force on it. they stood row after row, when the first row people fell unconscious, the second row came to the front. The media captured this and made it headlines world wide. The forces were shamed. As the protest continued, the generals could not marshal their forces as many were demoralised. Negotiations started, and in 1947 India got her independence. This started a new way of struggle world wide, countries like South Africa followed and succeeded.

CREATIVITY: THE 6TH ELEMENT OF THE UNIVERSE

Every one of us can think creatively. Because creative thinking is one of the normal functions of our right brain. Therefore to say that we can not think creatively is like proclaiming that we have only one half of the brain, which is untrue. As like any other function which is not used for a long time takes efforts to revive again, this aspect also might have got morphed under many other pressing functions of the daily routine.

Psychologists and neurologists have repeatedly researched on the functions of the right brain to understand the trigger points and how its neuro-connections gets fired.

CREATIVITY: THE 6TH ELEMENT OF THE UNIVERSE

CREATIVITY: THE 6TH ELEMENT OF THE UNIVERSE

We will be continuing this discussions in parts in the “Inscriptions” to follow. Keep reading so that we can redevelop the hidden potential inside each one of us in a scientific and systematic way.

We will also learn how to fire such creative ideas in an organisational context from all the team members, in the following chapters.

UNIVERSE IS CONSIDERED TO BE CONSTITUTED WITH 5 ELEMENTS. THE EARTH, THE SKY (SPACE), AIR, FIRE AND WATER. THE 6TH ELEMENT THAT THE HUMANS’ OF THE UNIVERSE HAS DEVELOPED IS THE POWER

OF CREATIVE THINKING. THIS WILL BE THE DETERMINING FACTOR FOR BUSINESSES AND LIVES

IN THIS MODERN ERA.

R.GOPINATH

gopinathr@go-past.com

GURUS SPEAK

FINANCIAL PYRAMID STAGE 3: GROWTH WITH RISK PART 1

Before i venture to explain this part of the financial pyramid, i will set out the agenda for the advisors involved in advising clients to invest in such products:

We as advisors of such plans must follow these points:

1) Learn important ratios/indicators ( PE (Price Earning ratio), PB (Price Book value ratio), Standard Deviation, Sharpe ratio, Beta, Sortino Ratio, Treynor Ratio and A complete understanding of the offer document.)

2) Determine the client’s purpose of the investment and the amount needed to meet that goal.

3) Prepare the client for holding for a long term (over 10 year period)

4) Explain the need to continue to invest as per the mode selected, without being swayed by the mass opinion.

5) Ensure that he has adequate alternate means of cash/ cashable instruments to meet emergency situations that might arise in-between.

6) Explain the cost structure and the difference between NAVs and the Yield (IRR).

7) Review and shifting or switching to bonds should be made as soon as the target amount is reached by being specially vigilant two or three years before the (Goal) maturity.

8) Therefore, please stay with the customers, comfort them and see them through turbulent times. When they reach their destinations, then and only then our job as pilots ends. Till that time we will stay calm, confident and poised. They boarded our aircraft trusting that we will assist them in reaching their destinations quickly and safely, we will now prove that we are worth that trust.

All the above points will be discussed in this chapter part wise. All the ratios and indicators shown in point 1 will be detailed in the coming parts of this chapter.

This stage of the pyramid refers to financial products that carry an element of risk on the capital invested with a hope of getting more yield on the money invested. These products provide an answer to inflation and by and large expected to yield more returns. But we must understand the capital invested is at the risk of diminishing or even completely consumed in volatile times.

Then why would anyone take such a risk? One need to take that risk, for not taking risk at all can be the biggest risk that one takes in life. These instruments are meant to give adequate amount to meet big expenses and commitments as a reward for the risk taken.

By and large a long-term holding of these assets reduce the risk involved as they perform in some cycles and during an upward cycle they give good returns.

The products that will appear at this stage of the pyramid are: MFs, ULIPs, Equities, Metals, Currencies and Commodities.

Adequacy Risk: Over a period of time inflation eats into the wealth. If on one side we work hard and save little by little like a sparrow that builds its nest, on the other side the inflation in economy takes away the small growth gained as interest on our savings. When the goals have to be realised we find that money on hand is not sufficient enough to buy those goals. We need to therefore earn a little more yield than the inflation rate. This is possible only when we invest in instruments like equities or instruments which carry the risk of loosing capital but provide a chance of earning better yields. Risk and rewards go together. MFs fall into this category.

A person skiing or skating under the professional supervision of an expert is taking a risk but gains the thrill of adventure. But a person

jumping without aid, without a professional to help him do a jump from a high rise building is just simply foolish.

While we need to risk the capital anticipating more yield we need to do it under professional guidance. Assuming that we can try our luck at it is plain foolishness. There are two aspects which are primary in such investments. 1) Selection and 2) Staying. Both these aspects are coloured with emotions. The vision gets blurred when a person is either greedy or panicked. Most of the time the Media can only add to this frenzy.

The general public at large in this country, may not have adequate knowledge about the capital markets, their behaviour, studying companies financial statements to make a decision about investing and related things. MFs are very good options for such vast majority of the people in our country. In a MFs the selection of the companies to invest in are made by professionals who are well educated in this aspect. Naturally one needs to pay some charges for this advice. But then the cost of not availing a professional service here could prove to be deadly in the end. Can professionals go wrong? Yes, they too can.

But compared to what a layman can do, certainly a professional will be a million times a better performer. While entrusting to a professional we must also understand any professional in the market can produce returns only if the market offers him. If the market is not offering returns in a given period, then the client will have to wait for the right time to en-cash and quit.

Please continue reading the next issues of inscriptions where we will cover the indicators of the risk, the ratios in detail, the origin and the functions of -MFs in India and some common aspects of these funds.

Money Tips by Chanakya 2300 years ago

(Are they still relevant ?)

Chanakya (4th century BCE), the noted teacher, philosopher, economist, jurist and royal advisor. authored the ancient Indian political treatise, the Arthashastra.. He is considered the pioneer of the field of political science and economics in India, and his work is thought of as an important precursor to classical economics.

Chanakya assisted the first Mauryan emperor Chandragupta in his rise to power and establishment of the Maurya Empire. He gave very practical guide on how a king should budget his finances in his famous book “Arthashastra”.

He said that first of all the king should fund for the uncertainties of the future like war, famine, flood, epidemic etc. The king should keep sufficient reserve to face such uncertain situation because it will be very difficult to generate revenue by levying taxes when the subjects are suffering from such calamities.

Second, he should allocate his budget to create infrastructures like agriculture, water bodies, education institutions, health facilities, etc to provide future wealth generation as well as well being of people.

Third, he should budget for present days essentials like food, drinks, clothing, shelter etc.

Lastly, he should allocate budget for festivity like Sharad Utsav, Vasant Panchami etc.

Remember, these tips were provided for kings like Chandragupta who had vast resources at their disposal.

These teachings are relevant for present era to common people like us too but actually we are doing exactly opposite to these wisdom. We spend first on all the present days wants (not needs) and celebrations. Most of our budget is spent on maintaining our flashy lifestyle with costly mobiles, vehicles, cloths & accessories, parties etc. Too many people spent money they haven’t earned, to buy things they don’t want, to impress people they don’t like.

After all these we are left with little to create future infrastructure need like children education or our retirement corpus. Both these costs are increasing at alarming rate. Present day cost of one year of kids education is more than the entire education cost of parent. The higher education cost is gradually escalating from Lakhs to Crores. Besides that the rising living cost and reducing family size is creating biggest challenge of post retirement cash flow. But many of the families are either unaware of the financial implications of these or left with little

surplus to create sufficient funds. We also lack long term vision in financial planning and indulge in generating short term higher returns from get rich quick schemes.

Top of it many of us does not even think about implications of uncertain events like Death, Disability, Disaster or Disease on financial future of our family. Dreams of entire family can be destroyed by any such event.

In nutshell, You gotta do what you HAVE to do before you can do what you WANT to do. It’s called Priority.

CA Mahendra KamathLife Advisor

THE AMBULANCE MAN

MR HIMANSHU KALIA IS A LIFE INSURANCE AGENT (10+ YEARS MDRT)HE AND HIS WIFE HAVE PURCHASED 7 AMBULANCE VEHICLES AND HAVE

PRESSED THEM INTO SERVICE FOR THE NEEDY IN DELHI.WHILE THE BANK LOANS CARRY INTEREST ON THE LOANS HE HAS AVAILED FOR

THIS PURPOSE; HIS SERVICE IS FREE FOR THE USERS.

MR AND MRS KALIA HAVE AN AMBITIOUS DREAM OF PUTTING 100 SUCH VEHICLES TO PUBLIC USE. THE STORIES HE NARRATES OF THE PATIENTS HE

HAS CARRIED TO THE HOSPITALS IS VERY HEARTENING AND THEY BRING TEARS TO THE LISTENER BUT WITH A SENSE OF PRIDE TO BE ASSOCIATED WITH SUCH

A NOBLE COUPLE.

THE ABC TEAM OF BARASAT ON COMPLETION OF MISSION COT TOT COURSE

MR ASIS BARAN CHAKRABORTHY AND HIS TEAM

CASE STUDY OF MR P M SAHAY PRESENTED BY GROUPS

MASTER MENTOR COURSE FOR DEV OFFICERS AT THANE

GROUPEXERCISE ON

AGENTS RECRUITMENTCO CREATIONMARKETING

MODEL

BRANCH MANAGERS, AREA MANAGERS, TERRITORY MANAGERS OF SBI LIFESIXER COURSE AT CHENNAI

ROLE

ANALYSIS

GROUPSTUDY

WALL NO: 4 PANEL NO: 3 6th Oct 2017