Faculty

On the right track – Government & RBI

Faculty, General Blog

A watershed moment in India’s monetary policy came through last Friday.

While municipal authorities and state governments were busily sensitizing the public at large on sanitizing self, their homes and public places, the Reserve Bank of India (RBI) came in and fired a bazooka to let the market participants and the world know that it has the economic might to respond to the Covid-19 crisis

The market was demanding action and the RBI governor delivered effectively on what was required.

So what did they fire –

Reduced interest rate

The first salvo: A 75 bps cut in repo rate and a 90 bps cut in the reverse repo, thereby reducing the overall cost of financing in the country. This was a much-needed step as central banks across the world had reduced interest rates to soften the blow on borrowers in their country – a necessary solution to provide strong support in a recessionary circumstance to support home loans, retail loans, car loans, small and medium enterprises and large corporates especially in an economy which was already stuttering. This effort will reduce the cost of capital for most companies  and help them use the savings to meet growth objectives when the market recovers and provide immediate cash flow relief

Infusion of Liquidity 

The second salvo:  Infusion of liquidity of INR 3.74 lakh crore into the economy through

– Targeted long term repo operations (LTRO) of INR 1 lakh crore. This will enable banks to provide 1-3 year liquidity support to commercial paper, investment-grade bonds and non-convertible bond. The corporate bonds over the past few weeks were suffering due to lack of liquidity which is structural for meeting their working capital requirement and medium-term cash flows. By providing support and push to banks to lend, RBI has provided stability and certainty to the corporate funding needs, thereby mitigating liquidity risk which was pushing corporates into significant turmoil.

-Reduction of Cash Reserve Ratio (CRR) of banks from 4% to 3% –  1% reduction releases INR 1.37 lakh crore for a period of 1 year into the banking system allowing banks to lend more in these times. We already did see State Bank of India increasing the working capital lines to corporate on an ad-hoc basis by 20%

-Banks are allowed to borrow another 1.37 lakh crore under the Liquidity Adjustment Facility (LAF) window – meets the same objective as above.

-Liquidity , liquidity, liquidity – the  Three Ls reducing the trepidation that banks had and pushing them towards lending more during the economic lockdown.

Breather through moratorium

 The third salvo: a moratorium on term loans (both principal and interest) and deferment of interest on cash credit/overdraft of clients effective March 1, 2020.

This is a tricky one for banks as credit risk goes up for them as post the deferment of 3 months, there could be a rise in defaults and an already stretched Indian banking system would have to raise significant amounts of capital to meet the future needs of growth. But the Reserve Bank has thought about the economy in a manner in which the deferment helps business to meet their operating costs and keep the lights on till such time we come out of the crisis. This was important to avoid a wide-scale job loss in industries which were going to be stressed in this scenario – Hotels, Travel, Airlines, Oil and Gas, Transportation, Automotive, Metals and Mining.

The Reserve Bank did the above to help the Government meet the objectives of the 21 day lockdown (which could be extended further ) and meet the Finance minister’s INR 1.7 lakh crore economic package to offset the challenges of the economy. The RBI has primarily stamped the objective laid down by the government wherein the parameters on which the economy functions would be impacted.

  • The fiscal deficit is now expected to be in the 4.5% area (1% above the defined target in budget 2020) – just the cost of 21 days of lockdown translate to 50 bps – 75 bps reduction in annual GDP
  • While lower oil prices support the economy, the government has only decided to pass on 50% of the same to consumers with the balance being kept in the form of increased taxes. While this provides some money for consumption growth, I expect the same to be muted  (barring the hoarding which has happened in the last week of March) in light of the lockdown.

So why is this required?

This is important to sustain an economy, it is the duty of the government to save its citizens, meet their day to day needs and ensure that each of us have reasonable access to healthcare. Globally, we have more than 6.8 lakh people affected with the disease in over 202 countries – of these we have over 15% needing hospitalization,  5%-7% needing intensive care and approximately 4% have died . In some countries, the cases have risen by over 50 times. So for India it is important that we agree to early contamination measures, lockdowns to protect Indians from going through the same cycle.

While the government has pushed the economic and social agenda, it is now upon to us to understand the magnitude of the effort, stay safe and stay home. Each of our contribution to this thought and measure will stand us in good stead and benefit the country.

 

Pathways to Accomplish Goals

Faculty, General Blog, IILM University

Pathways to Accomplish Goals

Life is jam-packed with agendas and timetables. It is all designed at attaining certain goals so that we can measure our triumph. Be it students, young professionals, entrepreneurs, or CEOs, regardless of title and age, each person has goals to achieve.

What is your goal? Travel to your desired destination, lead a team, realize a milestone in your profession, top an exam, learning at a reputed college, pursue an interest, be an innovative entrepreneur or simply develop a yoga posture correct? Whatsoever the goal, it involves a certain level of thought, preparation, designing, and execution. Nonetheless, the question is how to achieve these goals? Let’s dig deeper into exactly how you emphasis on your goals and accomplish them.

Focus on the following pathways to attain your goals:

  • Discover the 3Rs of goals – Relevant, Rational and Realistic.

Relevant: Make sure that the goal you have fixed for yourself comes out to be useful once you attain it.

Rational: Target for something viable and attainable. Let’s say your objective is to visit the moon in the coming few years. Has there been a spacecraft developed for the common public? Or do you plan to be a cosmonaut? If none of these, then do not put yourself up for dissatisfaction.

Realistic: Aiming realistic goals is conceivable when you do an analysis of your SWOT (strengths, weaknesses, opportunities, and threats). Noncompliance with impractical goals will only discourage you.

  • Set minor sub-goals.

Goals are long term, with time limits that are years away, instigating you to be slack and relaxed now making you unsystematic and unplanned. Building smaller targets will make the main goal look more attainable and will also give you a sense of path and perseverance, and reinforce your focus on your long term goal.

  • Nurture common interest groups.

Be in an accurate environment. For instance, if you want to be a successful entrepreneur, join entrepreneurial/start-up groups. These groups can share their valued experiences and skills. Further significantly, they can motivate when you are unenthusiastic and dispirited.

A goal initiates as a dream. Therefore, it is vital that you dream and visualize. Nevertheless, without a design and some strategy to act upon, it will stay a reverie. Remember that a goal worth attaining will implicate certain changes in you. Eventually, the effort essential for realizing goals is a blend of vigor and skillfulness. You will have to discern and discover your distinctive capabilities.

Dr. Rachna Madaan

 

CONCRETE: A Trending Material for Interior Décor

Faculty, IILM University

CONCRETE

A Trending Material for Interior Décor

Concrete is the best way to add an industrial look into your home decor. The industrial look in the interior has made a hold for a while now, and it’s showing no marks of decelerating. While we aren’t all lucky enough to live in an old transformed warehouse full with genuine industrial elements, there are easy ways to give our homes that distinctly urban feel. So Designers have started to add on Concrete furniture, Concrete Accessories, Concrete Room Styling, Concrete Bathrooms, Concrete lights.  When people hear “concrete,” they often think it’s going to be extremely heavy, ugly stuff only fit to sit in parks and bus stops. But most people are now realizing modern concrete furniture can be just as elegant, nearly as light, and far more durable than other furniture materials. Starting with its incredible durability and aesthetics, Concrete has become a trending material in Urban home décor.

Functionality & Aesthetics

  • Concrete can hold heavyweight, resists scratches and scores, and is highly heat and cold resistant. It will never warp, though it may develop hairline cracks that are non-structural and often enhance the beauty of the piece. While corners and edges can damage, it generally happens when the table being dropped or some heavy object hits it.
  • Sealers make concrete very stain resistant. Spending a few minutes waxing the table every few months with beeswax or concrete floor wax (not automotive wax) will further protect the sealer and extend the stain resistance for decades, and the table can be resealed after many years if needed. The sealer we use is a penetrating densifier (water-based chemical solution), Sealer hardens the surface and makes the concrete less porous so liquid can’t easily penetrate the surface. Sealers change the chemistry of the concrete itself and do not affect the look of the concrete.

Image 1 

  • Can be refinished and repaired more easily than some materials. Chip offs can often be filled in and mostly or nearly completely repaired, with no experience with concrete required, just by grouting with matching cement (though it depends on what kinds of aggregates and cement used to get a complete match). Other materials like glass and acrylic can be very difficult to refinish at all.
  • Concrete furniture can easily go from indoor to outdoor without the need for a different sealer that changes the look of the concrete-like often is the case with wood. Since UV, heat, moisture, cold, and freeze-thaw cycles have little effect on our concrete, you don’t have to worry about bringing in the concrete in extreme weather.
  • Non-toxic and food safe. No or negligible amounts of VOCs (Volatile organic compounds) are emitted by concrete, concrete is not flammable.
  • It’s really not that heavy. In fact, hollow concrete can enable shapes and sizes of tables that would be extremely heavy if made of wood or steel, and stronger than tables made of lighter materials like plastic or ceramic. GFRC (glass fibre reinforced concrete) techniques give concrete a nice solid weight that’s not back-breaking but feels very durable.
  • Easy to keep clean with just soap and water.
  • Concrete can take almost any shape, colour, many different textures, and tons of different impressions. It’s arguably one of the most versatile materials for furniture and design in general, with its combination of strength and freedom of appearance. It can appear machine-finished and glossy, or handmade and textural.

Image 2

  • Concrete can have a more “natural/raw” look than many other surfaces, especially when aggregates are exposed or there are organic impressions. Concrete also arguably has a warmer feel, both on the eyes and hands, than steel, glass, or wrought iron, especially. Certain concrete colours can even compete with darker woods for warmness.

 

Every inch needs a focal point. Since concrete finishes is a visually substantial material, it gives a stack of visual weight to the room. This means it will directly draw the eye and powdered the space.

Image Credit:

Image 1: https://www.sandberg.co.uk/laboratories/construction-materials/hardened-concrete-testing.html

Image 2: http://useofcement.cembureau.eu/2019/01/23/self-healing-concrete-friendly-bacteria-fixes-cracks/

 

 

COVID – Ray of Light amid Darkness

Faculty, IILM University

World’s economic growth will be severely impacted amidst the coronavirus lockdown causing enormous disruption across multiple sectors. According to Dun & Bradstreet’s latest Economy Forecast, the probability of countries entering into recession and companies going bankrupt has increased and India is not likely to remain decoupled from the global meltdown. Industries’ worst-hit shall be among Financial, Textile, Electronics, Tourism and Aviation and all those sectors (Pharma, Chemicals, Shipping) where the supply chain has been disrupted due to worldwide lock-downs. The crisis continues unabated and there are simply too many variables to control for.

However, I am trying to find a silver lining in the dark grey tunnel. There are a few sectors that have seen an unprecedented hike in customer queries, product demand, and usage. Being home quarantined the general public at large is getting hands-on experience for digital services and the majority of corporates are working from home using digital platforms. Interestingly enough, once these businesses have begun their journey towards a digital/app-based business model and environment, it is highly unlikely they will go into reverse. This might just be the beginning of an altogether different business world with newer models gaining momentum. The coronavirus shut-down in China unfolds a big opportunity for India in those sectors where China is a major exporter. The epidemic has also underlined the importance of over-reliance on Chinese products in the Indian market and it is high time that the government encourages Indian manufactures to step up local production, which can be used to India’s advantage.

Telecom, Broadcast Services

As the number of Covid-19 cases mounts, the nation urged its citizens to stay at home and practice social distancing. This move shall aid the telecom sector as Indians consume more and more data. Consumers are expecting the internet to work round the clock to enable them to function seamlessly. In January and February, when China—the epicenter of the virus outbreak—was under lockdown, the revenue of telecommunication services rose 1.5 percent compared to last year, according to the data released. The fact that people are keen to entertain themselves, working from home or accessing educational resources and online courses; has thrust the telco industry into the limelight. The success of almost every element and facet of society is dependent on the success of the telecommunication industry and authorities are putting in a lot of measures to cater to their customers not only for daily life needs but also for emergency services. Vodafone Idea Limited (VIL), Bharti Airtel and Reliance Jio Infocomm have deployed senior technical staff and smart hands at their network management war rooms to closely monitor critical operations and ensure uninterrupted mobile and broadband services amid the 21-day nationwide lockdown with temporary food and stay arrangements at their data centers. Other than Telcos, Broadcast Service Providers like Cable Operators and DTH Industry are also in for a favorable time with consumers gaining on the Watching TV time. Globally the TV viewership has increased by approx. 12% if compared pre and Post Lockdown.

Cloud Computing

For the cloud companies, the coronavirus outbreak is effectively forcing some organizations through a very rapid digital transformation project, to embrace the cloud and mobility trends. The cloud computing segment has been on the rise for years, as more employees find themselves restricted to their homes more workloads will have to be migrated to the cloud to ensure the business can function without disruptions. Amazon Web Services, Microsoft Azure and Google Cloud are the obvious beneficiaries as market leaders while other traditional players might have to reinvent their business models. This could act as a catalyst for accelerating the already fast-blossoming cloud segments.

Video conferencing and collaboration

Although there is no substitute for a face-to-face meeting, alternatives have to be sought today amidst the quarantine. Businesses are encouraging meetings to be conducted via video links rather than email to ensure effective communication and ensure the well-being of employees. Contact with colleagues via video link is not perfect by any chance, but it might be an alternative to get the job going and aid remote working. Microsoft is an obvious beneficiary here, it announced last week the number of daily active users for its Teams collaboration suite increased by 12 million. Zoom Video Communications, a remote conferencing service company headquartered in San Jose, has seen share price increase by 130% since the beginning of the year. More corporates are turning to companies like ON24 to purchase webcasting and webinar services to ensure lead generation projects can continue. Some companies are being forced to adopt a digital transformation and some of the remote working capabilities might be retained in the long-term looking at the costs and benefits.

Electronic payments

Physical cash is already becoming a thing of the past with electronic payments in vogue, and the COVID-19 outbreak has accelerated this. Merchants like Visa, Mastercard, and AMEX are already benefitting from these trends. Some retailers and vendors are now accepting only digital payments and this in the long-term could force the majority of customers into adopting digital payments. While some from the traditional generations still resist the use of digital currency but the refusal to accept physical payments by some shops, will force consumers to adopt digital payments and encourage the use of digital currency.

Online Grocery and Food delivery

With the rush on supermarkets persisting as the days turn into weeks, online grocery delivery companies are seeing a surge in popularity. Online shopping delivery service Ocado suspended its website last week, telling customer demand exceeded its capacity to deliver. The share price for Ocado has surged this month, though it did decline once it announced it would temporarily stop taking orders. Buying of everyday grocery and other necessities are being routed to online sellers like Amazon, Big Basket and Grofers encouraging the trend of contactless grocery delivery at doorstep. Food delivery by Apps like Zomato and Swiggy has also witnessed an upward trend amidst the lockdown.

Streaming, gaming and video content platforms

This is perhaps the most obvious example of a beneficial segment. Video streaming will see a boom as parents will need to occupy children, while adults will also need entertaining as pubs, clubs, theatres, parks, beaches, holidays and gigs all disappear. OTT players like Netflix and Amazon Prime are already popular among the young generation and there has been an enormous surge in the number of newly added subscribers. All streaming platforms could benefit, while Disney+ is launching at a good time to capture the attention of European consumers. In terms of video platforms outside of streaming, YouTube is enjoying particular success. Not only are there those who are trying to entertain themselves, but there is also millions of hours of information (some much more accurate than others) on the pandemic itself. From a gaming perspective, with the usual entertainment venues shut down, consumers will need more options to be entertained at home. Microsoft Xbox, Google Stadia and PlayStation are likely securing additional subscriptions as well as in-game purchases.

Savvy corporates

For those corporations in a more fortunate cash position than others, the shock to the financial markets could be viewed as an opportunity. Softbank is a perfect example. On March 23rd, Softbank announced it was selling off certain unnamed assets to fund a second share buyback program. Combined with the first announced on March 13, Softbank will be able to retire 45% of Softbank shares which are currently on the open market. Share buyback programs could be viewed as a way to protect a corporate strategy from short-term influences and aggressive investors.

Environmental Healing

A large amount of air pollution we breathe comes from traffic. With many countries on lockdown, the levels of traffic pollution have plummeted. Satellites have picked up very large decreases in levels of NO2 (primary from diesel) in all industrial regions of the world and the ozone layer has finally begun healing. We expect the fine particulate matter (PM) has similarly reduced. Big reductions in pollutants will also come because people are no longer traveling. It is too early to say whether these improvements will offset any of the mortality from Covid-19, or other health problems due to being confined indoors.

Such a tiny silver lining can hardly make up for the devastation of the COVID-19 pandemic. But these preliminary numbers demonstrate that this global health disaster gives us time to re-think and an opportunity to assess –
i. which aspects of modern life are absolutely necessary
ii. what positive changes we need to adopt in our daily lives and
iii. the amount of restructuring required by mankind on a global scale.
I leave you with these questions to ponder for the rest of the lockdown while we are in a fight for survival and existence.
Every situation teaches us what we haven’t learned until now and having experienced this global pandemic in our lifetimes we all need to take big-time learning from hereon!

CHANGING PARADIGMS IN ACCOUNTING

Faculty, General Blog, IILM University, ,

Consеquеnt to financial crisis of 2008, wе arе witnеssing significant changеs in thе accounting systеms across all businеss sеctors in thе world. Thе quеstion comеs in what is thеrе at ‘bottom of thе hеart’ of this changе. Is it thе crisis pеr sе or thе еffеct of crisis on thе еxpеctеd rеsponsibility of accountants? In Junе 2010, a largе onlinе survеy was conductеd by thе Chartеrеd Institutе of Managеmеnt Accountants (CIMA) and by thе UK´s Univеrsity of Bath, whеrе 5,426 sеnior financе and sеnior non-financе profеssionals around thе World participatеd [5]. CIMA study showеd that thе latеst most important trеnd in accounting profеssionals is thе shift of accountants’ rеsponsibilitiеs from traditional accounting opеrations to stratеgic managеmеnt guidancе and support. This trеnd, a consеquеncе of thе 2008 financial crisis, rеprеsеnts an incrеasе of thе valuе addеd to thе organization and thе contribution pеrformеd by accountants. Now, thе accountant’s rolе is not limitеd to book-kееping, financial-rеcord kееping, prеparing and publishing financial statеmеnts and еnsuring rеgulatory compliancеs. Thе accountant’s rolе has shiftеd to support, guidancе and activе participation in stratеgy formulation. Now, wе sее accountants activеly participating in dеcision making. Thеy arе gеnеrating usеful information to hеlp businеssеs dеcidе about еffеctivе rеsourcе allocation.

To gеnеratе timеly, еrror-frее, rеliablе and accuratе information, businеssеs havе shiftеd to complеtе Accounting Information Systеm (AIS). Not only this, accounting information systеm and managеmеnt information systеm arе now intеgratеd to havе еfficiеnt dissеmination and еffеctivе utilization of thе accounting information. Hеrе, thе rеfеrеncе is not limitеd to thе financial accounting data only; rathеr is pointing out to non-financial, managеrial accounting data as wеll. Now, thе quеstion comеs in what is AIS? AIS is a collеction of rеsourcеs such as pеoplе and еquipmеnt dеsignеd to transform financial data into information. Thе information thus gеnеratеd is communicatеd to a widе variеty of dеcision makеrs. An Accounting Information Systеm (AIS) is gеnеrally a computеr-basеd mеthod for tracking accounting activity in conjunction with information tеchnology rеsourcеs [1].  AIS gеnеrally consists of six primary componеnts: Pеoplе; Procеdurеs and Instructions; Data; Softwarе; Information Tеchnology Infrastructurе and Intеrnal Controls. Thus, this is thе amalgamation of thеsе six variablе, which makеs an accounting information systеm work. AIS is rеsponsiblе for thе collеction, storagе and procеssing of financial and accounting data that is usеd for intеrnal managеmеnt dеcision making, including nonfinancial transactions that dirеctly affеct thе procеssing of financial transactions.

Typically an AIS is composеd of thrее major subsystеms: Transaction Procеssing Systеm (TPS) that supports daily businеss opеrations; Gеnеral Lеdgеr Systеm and Financial Rеporting Systеm (GLS/FRS) and; Thе Managеmеnt Rеporting Systеm (MRS). Litеraturе shows that, AIS lеads to a bеttеr coordination in an organization which, in turn, incrеasеs thе quality of dеcision-making. Somе studiеs in accounting show that thе еffеctivеnеss of AIS dеpеnds upon thе quality of thе output of thе information systеm that can satisfy usеrs’ nееds. TPS is rеsponsiblе for supporting daily businеss opеrations or transactions. Thеsе transactions can bе groupеd togеthеr in thrее transaction cyclеs: thе rеvеnuе cyclе, thе еxpеnditurе cyclе, and thе convеrsion cyclе. Thе purposе of thе first information systеms was to automatе businеss procеssеs, which shows that thе accounting domain was onе of thе vеry first to usе information systеms to support its activitiеs [2]. Usually sееn as a singlе intеgratеd sеrvicе, thе GLS/FRS arе two closеly rеlatеd systеms, with thе first onе dеdicatеd to the summarization of transaction cyclе activity and thе sеcond onе to thе mеasurеmеnt and rеporting of thе status of financial rеsourcеs, gеnеrally outputtеd in thе form of financial statеmеnts or tax rеturns to еxtеrnal еntitiеs [2]. MRS, usually in thе scopе of Managеmеnt Information Systеms (MIS), offеrs intеrnal managеmеnt with spеcial purposе financial rеports and information nееdеd for dеcision-making such as budgеts, variancе rеports, and rеsponsibility rеports. For almost all profеssionals from thе accounting domain, thе main idеa about thе information systеm of an organization and particularly an AIS is еmbracеd by thе Еntеrprisе Rеsourcе Planning (ЕRP), which еncompassеs all thе еssеntial functions to support an organization and is implеmеntеd in almost all largе organizations [4]. Not only this, but currеnt litеraturе is also moving away from this еstablishеd viеw about AIS domain, considеring now a morе modular approach to an AIS whеrе nеw tеchnologiеs likе Businеss Intеlligеncе (BI) or Balancеd Scorеcard (BSC) systеms play an incrеasingly important rolе [4]. In fact, studiеs provе that thеrе is a hugе sеt of nеw tеchnologiеs that can complеmеnt or intеgratе currеnt AIS and its prеsеnt availablе facilitiеs. So, thе world would soon bе sееing cloud computing, machinе lеarning, dееp lеarning and artificial intеlligеncе bеing usеd in accounting.

Rеfеrеncеs:

[1] A. Fontinеllе. (2011, 2013, Apr 5). Introduction to Accounting Information Systеms. Availablе:

http://www.invеstopеdia.com/articlеs/profеssionalеducation/11/accounting-information-systеms.asp

[2] A. Rom and C. Rohdе, “Managеmеnt accounting and intеgratеd information systеms: A litеraturе rеviеw,” Intеrnational Journal of Accounting Information Systеms, vol. 8, pp. 40-68, 3// 2007.

[3] Bеlfo F and Trigo A, “Accounting Information Systеms: Traditional and Futurе Dirеctions”, Sciеncе Dirеct, Procеdia Tеchnology 9 (2013) pp. 536-546

[4] J. A. Hall, Accounting Information Systеms: South Wеstеrn Еducational Publishing, 2010.

[5] W. Van dеr Stеdе and R. Malonе, “Accounting trеnds in a bordеrlеss world,” Chartеrеd Institutе of Managеmеnt Accountants

1859716903, 2010.

 

Being a Reflective Designer

Faculty, IILM University, , , , ,

A typical design project mentoring session begins with the professor pointing out to the visuals presented by the student and enquiring

  • What more options do you have?
  • Did you think through the problem solutions we discussed, to improve on your design solutions?
  • Find the challenges in your design solutions.

 DID YOU REFLECT ON YOUR SOLUTIONS……….??? ARE YOU BEING A REFLECTIVE DESIGNER

By now the student is in a state of flux ready to throw in the line, topple the table, or shrug the shoulders and walk off….

thinkbook.org

 

…..all the while thinking under the breadth, ‘Who wants to go over again the discussion on finding more gaps in the designed product’? Didn’t I stay awake the whole night, forego the movie I’ve been dying to see, working on my design? Ask my parents, how I’ve put all my energy in this design, made lovingly, passionately, they’ll vouch for it.

No doubt these are some very genuine thoughts of the design student but before the frustration tips over into demotivation of the learner and extreme steps such abandonment of the project, this experience can be flipped into a positive methodology in learning.

The process of reflection during design development can form the foundation of exploration at every step allowing the design to progress only when the reflective process has satisfied the many questions raised.

In many instances, such as in an exam situation, very often students are heard wishing, that if only they were given a second chance they would have tweaked the solution differently or they would have considered the answer differently.

It seemed, given the opportunity of a second chance, they would have collected their thoughts, stepped back, taken a wider view, considered the context deeply, looked back at possible gaps, how it could have been resolved and after having carefully reflected on the possibilities, suggest solutions to the design problem differently……… now.

As Confucius philosophized, ‘Learning without reflection is a waste. Reflection without learning is dangerous’.

REFLECTION IS INTEGRAL TO DESIGN PROCESS

Reflection is a process of thinking again about the subject matter, now with a renewed sense of security, having undertaken and finished a task, the first time experiencing unsurety, insecurity and hesitancy.

When designers start with initial concepts, whether it be a simple project of developing a form or a complex project developing the corporate identity of a brand, the apprehensions remains the same as the excitement and anticipation. When reflective practice is adopted at all stages of development, it enables deeper exploration and fitment of the solution to the required brief.

Reflection at stages ensures better choices of pathways, more aligned progress and ultimately leads to more appropriate solutions.

REFLECTIVE PRACTICE & ITS EFFECTIVENESS

During the process of design development, maintain a documentation and categorization of the data, the explorations and its context throughout the process

Repeated self questioning can lead to clarity of problem brief which is already half the problem solved.

Provide room for open critique and a healthy adaptation of aligning it to the design problem.

Like all design students are encouraged to keep a Design Diary, so should a project have its Design Diary earmarked to note reflections of important issues and to note landmarks.

As noted by Richard Carlson, American Motivation Trainer and Psychotherapist stated truly,

“Reflection is one of the most underused yet powerful tools for success.”

Reflections are not just thinking of experiences, over the time they turn into insights, which in the long run build up student’s Design philosophy and Design values.

 

 

 

 

Leverage: The Double-Edged Sword and Covid-19

Blog Catgeory, Campus Blog Category, Faculty, General Blog, IILM University

The financial term for using others’ money is known as “leverage”. Leverage is the use of borrowed funds to increase one’s trading position beyond what would be available from the equity or personal funds alone. Leveraging is when you borrow a certain amount of money in order to expand the potential return of an investment you are intending to make. In a rising market, leverage can amplify your returns, leading to enormous gains and can make you very wealthy. However, it comes with a catch. In a flat or falling market leverage can do the opposite, by magnifying your losses. That’s the tricky bet when it comes to borrowing to invest. However, the concept will work only when the markets are bombing, businesses are producing and selling enough and are rising. Thus, leveraging involves a high level of risk. The greater the amount of leverage on the capital you apply, the higher the risk that you will assume.  You got it right! That is why we call it as a double-edged sword because it increases winning and losing positions equally. If an investor decides to rely on leverage in order to invest and the investment moves against the investor, his/her losses may appear to be far larger than they would have been, if the investment had not been leveraged. Therefore, it is convenient to say that leverage amplifies both profits and losses.

Let us go into little more details. On one hand, when financial cost of ‘fixed bearing securities’ is less than the return on investment, the financial leverage will help to increase return on equity and earning per share for investors. That is where the condition of ‘Trading on Equity’ will emerge. The firm will also benefit from the saving of tax on interest on debts etc. We’ve all heard the rags to riches property investment stories that make it all sound so easy. These tales usually have two vital ingredients, lots of leverage and a strongly rising market. Toyota, General Electronics, Walmart, CNN, British Airways, Sony, and others all displaced competitors with stronger reputations and deeper pockets. Their secret? Of course, in each case, the winner had greater ambition than its well-endowed rivals. Winners also find less resource-intensive ways of achieving their ambitious goals. This is where leverage complements the strategic allocation of resources. However, when the cost of debt will be more than the average returns for even a very successful company, it will affect the return of equity and earnings per shares unfavorably and as a result, a firm can be under financial distress. This is why this “double-edged sword” can be very difficult to handle during times of crisis as the whole world is facing today.

Can you imagine the impact of this so-called sharp weapon “leverage” would have on businesses amid the Covid-19 outbreak? Be it a small business or a large one, if they are using some borrowed funds; they are actually relying on leverage. They all need to service these debts by paying interest and principal installment. Imagine, what will happen if they do not have enough revenue to serve these debts? They will try to refinance debt, if they are unable to get refinance then they would fail in meeting up the fixed financial costs of these debt funds and then they face legal actions against them and which might lead to bankruptcy even. Yesterday, RBI Governor Shaktikanta Das said all commercial banks, regional rural banks, small finance banks, cooperative banks, and non-banking financial companies are permitted to allow a three-month on EMI payments for term loans outstanding on March 1, 2020. This elucidates the understanding of the central banks against the expected adverse effect of leverage on companies using debt funds. It goes without saying that many factors including the nature of the product or service the business deals in, the Firm’s age and ownership structure also decide the survival or fall of a firm during the time of crisis.

Well, the Central Bank of India understands the functioning, power and possible threats of this so-called sword very well.  That is why, The Governor of Reserve of Bank (RBI) of India, Shaktikanta Das on March 27’ 2020 cut repo rates by 75 basis points and allowed lending institutions to provide a three-month moratorium on EMI repayment on all term loans. This is expected to ease the pressure of EMIs on retail loan borrowers as the country fights the deadly COVID-19.  This means that no penal action will be taken against borrowers of home loans, personal loans, car loans, credit card EMIs, among others for not repaying EMIs for three months for the period March to May and thus, borrowers could get three months times to service the debt without any penalty.  Though the macroeconomic fundamentals of the Indian economy are sound, and in fact stronger than what they were in the aftermath of the global financial crisis of 2008-09. Even then Leverage, the double-sided sword remains a significant determinant of a firm’s performance amid Covid-19.

Leveraging is like dynamite- a powerful weapon in good time but deadly during a crisis like Covid-19.

Classroom equity: Creating educational equality

Career Development (Placement), Faculty, General Blog, IILM University, , , , , , ,

Everything that happens in the society is a consequence of human actions. Even though it may seem like a roundabout route, any effort to build a brighter future must begin with a change within human beings themselves.

The way we distinguish our own lives is also the way we distinguish the lives of others. When we have a sense of our own dignity, we recognize the dignity of others and value their lives too. The most fundamental way to achieve peace and happiness is to help people around the world to the greatest extent to reveal the treasure of inherent dignity in their lives.

No epidemic or any other cause is worth depriving students of their right to education. Teachers should not be masters who offer themselves as paragons, but enablers who guide students towards achieving their goals.

It is important that we afford students the highest respect as individuals in their own right. Helping students grow requires total commitment on our part. There is a fine adult inside every child. We need to direct our voices to that inner adult. We must never treat children in a dismissive or condescending manner, assuming they won’t understand and thinking its okay not to fully explain things.

We must believe in students’ immense potential, and strive to develop their innate capacities as well as our own. The more we broaden our own minds, the more we can inspire and foster the students. That is why our growth is indispensable to our efforts to help others grow.

We, at IILM University, Gurugram believe in our students, trust them unconditionally and encourage them to grow and excel professionally as well as personally. We believe in providing immeasurable source of support and encouragement to them. Our effort to provide Liberal Education gives our students the flexibility, knowledge and wisdom to pursue their passion.

Fostering students contributes to our own growth. Teaching students makes us wiser. Learning together with our students and advancing together with them is a path of lifelong youthfulness, giving us fresh perspectives and vitality.

Our behavior shapes our economy – Stay calm amidst dire situations – COVID19

Blog Catgeory, Faculty, General Blog, IILM University

COVID19 has been termed as an unparalleled dire situation; though the world has experienced pandemic earlier, the one actual and big difference between this pandemic and the others in the past is the volume of information at the click of a button. We are being poured 24/7 by broadcast news around the globe and social media. Mass media is serving our qualms and inhibiting us to think rationally creating shared panic and forcing people to take emotional irrational decisions. In a historic period of excessive loss and distress, today is the necessity of more than ever discipline, civic sense, and calm attitude.

Stocking the mind with overpowering questions drains our energy leading to wastage of time as well. We ought to silence the mind, not letting it go on with opinions of criticism, feeling like a quarry, condemning or denying the situation.

  • Situation Proofing Yourself

Life without critical situations is similar to living a life in an imaginary unreal world, detached from reality. There are two kinds of people. One will see the situation as trivial by having positive insights or optimistic way of looking at it. The other will see the situation as severe by having negative perceptions. How much control do we have on our thought process, to what degree is this human mechanism and state of mind in our hands? A calm mind, according to some, working a full day at the office, with demanding deadlines and different people with their different ways of working and opinions and simultaneously looking after the household responsibilities is next to impossible. But then, a calm mind with a robust intellect can certainly face all these dire situations. Moreover, practices like meditation will assist us in doing that.

  • Constructive Use

We are constantly learning a lesson at each step of our survival. The real-life circumstances are our hidden learnings which in a way impart us something or the other during a short span of time. All of us ought to be wary but then there is no need to fear or get panic. Instead, let’s not have complacency either. Receive this challenging situation and comprehend how you can make use of it in a constructive manner.

  • List down and evaluate the pros and cons

 It is easier to let our emotive side form our choices however as an alternative, create an unbiased list of pros and cons once confronted with a demanding situation. Contemplate critically and stick with unprejudiced principles concerning the situation.

At any time a difficult state is trying to affect you or you feel that you are fairly distressed due to a negative occurrence, look for positivity within in order to upkeep yourself emotionally and mentally. Likewise, hunt for signs of goodness outer in everyone and the entire thing, which will help in keeping you calm, composed and powerful. Possibly, nature wants everyone to slow down a little from the haste and hurriedness they are in.

Stay stable, calm and gratified!

Dr. Rachna Madaan

 

Globalization at Peril?

Faculty, General Blog, IILM University

With buzz like ‘Just-in-Time’, ‘Comparative Advantage’, ‘Outsourcing’ disrupted the supply chain in the name of profits and efficiency. No doubt the effort taken paid back well for the last few decades. But in the wake the outbreak of the virus, the entire supply chain has crippled and all major industries and economies are facing the brunt of over-dependence. China a manufacturing hub of the world and it gets most of its machinery from Germany. As China is unable to set in the manufacturing cycle, demand for new machinery from Germany has reduced. Germany is the major player in the EU, the impact of slumber in trade is felt in all EU countries. Such a phenomenon is called a domino effect wherein the fragility of supply chains is exposed, a major concern of globalism. The worst-hit industries are automobiles, electronics and more importantly drugs and medical supplies a crucial element for fighting the pandemic.

Scholars cite that the current situation of over-dependence and interconnectedness has reached an inflection point. They predict that from now the process of globalization may change its course and multilateral organizations may have to restructure their bargain. Certainly, nations like India and its neighborhoods will be the worst hit as they have always accrued the benefit of globalization in terms of employment, investments, etc. Countries may have to revamp their strategies to adapt to new realities keeping in mind the stakes on the economy at large.

Though globalization is inevitable, going back to its business as usual form post-pandemic recovery is highly unlikely. However, a sudden exodus from multilateral cooperation will certainly have greater ramifications that need thoughtful consideration. On the contrary, instead of fallback, it will be pragmatic for economies to restructure and prioritize. Targeted restructuring can reduce over-dependence and push for better control in stabilizing economies. Globalization is no doubt a necessary evil however the question is are we playing the right cards with it? Our focus was only to channelize factors of production across borders which is proving very dangerous.