General Blog

Is taking a Drop Year in 2020 a good career strategy? – IILM’s Advice for Students

General Blog, IILM University, , ,

While the whole world is battling Corona, there are many students who have their own battles to wage. This is especially those who have appeared for Class XII exams and they may be worried for their future. A few exams of CBSE students are still pending. The results are yet to come. It is a critical year for them, given their decisions to take admissions in graduation. Some of them were aspiring to go abroad. Now all their dreams seem to be at a standstill.

Well, dear students and their equally concerned parents – The government regulations are no way indicating a pause in education – they have stated in their recent guidelines to delay starting the academic year, but it will begin. You have all options open as you would have earlier. The only thing that has changed now is a shift in the day of commencement of the session. So the question of dropping a year should not occur in your mind.

On dropping a year, one or all of these may happen-
– Your drop year will stay on your CV for the rest of your life. It may affect your candidature for selection, as recruiters are looking for all possible reasons to reject the applicants. You may not even qualify for the selection process, as in several global multinational corporations, a drop in the year is one of the reasons for not shortlisting the profile of the candidate.
– You may be the only one in your class or peer group to sit at home exploring options for the subsequent year- it generally leads to a dip in the motivation level and its not easy to sustain yourself during this time. The morale goes down and depression sinks in.
– You tend to lose confidence in your abilities to start afresh.
– It will also give the impression to any third person that you are not at all adaptable in nature – you do not have the strength to fight it out and brave the circumstances.
– Most importantly, you are still not sure that you will get what you are seeking.

We have all spent more than a month at home, and we do not know till when this will continue. Do not elongate this stay even further – believe me it is going get tougher
by the day. We have already had enough of negativity since the spread of the pandemic – let us not increase the problems in our lives. Make an informed decision about the course you want to enroll in – there are abundant prospects for you. All educational institutions, particularly the private ones are functioning online, and Universities like IILM are all prepared to welcome students in the new session whenever it starts. We are equipped to conduct both online and offline classes. Our faculty are developing innovative pedagogies to make the class more engaging. We have been ensuring that there is no academic loss for the existing students and the learning did not stop a single day during this lockdown period. We have finished our course syllabus for the semester, have conducted Club activities, we have done mentoring sessions, we have guided students for dissertation, we have conducted guest sessions for the subjects we are teaching and we are ready to conduct the exams. We have given ample opportunities for students to intern from home, and
almost all our students have their WFH summer internships in place. As faculty, we are working hard to respond to the situation to the best of our capabilities.

If you were aspiring for a foreign degree, as of now, you should take admission in an Indian Institution for now, and perhaps go abroad for your post-graduation. By that time, you will become aware of your career interests and you will be mature enough to take care of yourself. These next two years will be trying times, and your adamant desire to go to foreign shores may end up being an obstacle for your successful career. Things will certainly become normal – but how soon none of us know. When International borders and travel will open, it is unknown. And how soon they will start accepting applicants and student candidatures for admissions is also not clear.

But what is known for sure is that our career path has to be charted by us alone. Dropping a year has never been a good strategy. And in a world of uncertainty, it is a strict no-no. Based on my experience of two decades, I can only say that think positive, explore available options and get a stress-free life for yourself. Let these turbulent times not affect your careers.

Authored By
Dr Sona Vikas (Associate Professor – HR & OB)

Recycling art for boys costumes in Kutchch nomads  

General Blog,

 

 

Western Indian region of Kutchch in Gujarat State is home to several nomadic tribes known for their distinct costumes. Rabari tribe is known by its intricate hand crafted costumes for men called “Kediyo” which is an overlapped fitted tunic with gathers at waist. It is replicated in smaller version for young boys too. On similar lines, The Ahir Tribe boys wear almost same costume but the overlap is missing. The making of the costume is unique as each tribe is known by particular motifs and style of decoration. After analyzing a few of the menswear costumes of various tribes it is important to highlight that this art of garment making is based upon the concept of recycling scraps from old garments using various techniques of hand stitches for seams and embroidery.

For study, primary sample were collected from Bhuj,  Kutchch region over several visits supported by secondary data is through books and articles on costumes of nomadic tribes of this region.

One such garment for young boy was sourced by the author in the year 2017 which is exemplary for its techniques of recycling and aesthetics. The patterns or shapes of pieces are rectangular or linear representing use of zero-waste technique. The upper portion has intricate embroidery on front and back with cotton thread. The embroidery is done on layers of old fabrics to make it sturdy and render a quilted effect. The quilting type layering technique uses old menswear shirt pieces.

Figure 1 – Kediyo for boys

The collar continued as curved shoulder panel is one “joined” patterns that are patched on to a basic shape of bodice pattern. The shoulder seam is eliminated and the curved shape on chest is highlighted using a thin piping of multicolor in the joint. The piping is of a striped fabric which is cut on cross-grain and acts as a binding for hemline using sewing machines stitches. The fullness at waist are made by are small pleats in waistline that are held together with hand-stitches of blanket type embroidery. The underarm seam is a hand done “flat fell” seam with running stitch. To complete the tribal look a golden strip lurex called as “Gota” is put on the sleeve hem with hand tacked stitches.

 

The embroidery is done by women keeping in mind the color combination that are already present in the recycled pieces. The pink, green and blue are taken from the stripes of the menswear shirt fabric in bottom. The open chain stitch is used to make abstract motifs representing flowers, home and peacocks. It doesn’t use any mirror work which is exclusive for girl’s attires. This embroidery is done on multiple layers of fabrics some of which are thick twill weave. The synchronous stitches with various colors represent the colorful spirit of these tribes.

 

Figure 2 – Raised collar as a patch on to main garment… and front opening with handmade loops and recycled plastic buttons.

Figure 3 – Hemline with colorful fabric

Figure 4 – The back bodice with raised collar and shoulder curved pieces

The Kediyo garments for young boys are exemplary of recycling art in desert tribes of Kutchch region where resources are never wasted. The culture of handmade clothes shows mastery in several areas – zero waste pattern making, hand sewing in layers, hand embroidery that is as decorative as well as functional to impart a composite look with recycling different kind of fabrics. The community has scarcity of all kind of resources, and the practice of using old garments to make new ones is transformed into a sustainable textile art form that can be an inspiration for many designers.

References:

  1. Under the Embroidered Sky: Embroideries of the Ahirs of Kutchch, 2010. Published by The Shrujan Trust, Kutch, Gujrat, India.
  2. Frater, J., 2002. This Is Ours: Rabari tradition and Identity in a changing world, Nomadic Peoples.
  3. Pabiben, 2015. Rabari culture. [online] Available at: http://pabiben.com/rabari-culture
  4. Heaphy L., 2017. Rabari People of Northwest India. [online] Available at: https://kashgar.com.au/blogs/tribal-culture/rabari-people-of-northwest-india

 

Brand Storytelling the New Normal

Brand Storytelling the New Normal

Faculty, General Blog, IILM University,

The world dynamics has changed. Personal to professional anatomy of living and doing business has gone through massive disruptions. Today’s COVID 19 world has become overly automated and digitally driven. Humanity is becoming the new premium. The web incessantly rewards us with expediency and instant gratification, making the human touch increasingly scarcer and more coveted. And this is when  brand storytelling smiles and walks in (drums roll please!!)

Irrespective of the industry, sector, or vertical, businesses should survive and survive well…they have to connect even more intensely with their customers and pull at their heartstrings and engage with them on a much deeper level than before. Brand storytelling is the cohesive narrative that entwines together facts and emotions that a brand induces. It’s not enough to present quality products and services to your customers or a price that they can’t refuse, but it’s now imperative for businesses to begin sharing the story behind their brand’s existence and what really matters to them consistently across all communication channels and platforms. Businesses need to touch on that emotional chord that the customers will evoke every time they interact with your brand. To place long matters short “In a sea of semblance, be unforgettable”.

Today, whether they are existing customers or new ones; they not only require world class products and services, but they also rummage around for something additional, something worthwhile, something to get inspired. Take Apple, as an example. They sell technology, but from the commencement, their audience needed to feel that it absolutely was okay to be brave, bold, and think differently from the crowd. Tesla’s customers need to feel that it’s worthwhile to support the environment and sustainable energy. So, it’s important that when you craft your message for storytelling you think what your customers really need from you.

An effective brand storytelling has a more conversational tone asking for engagement (no strings attached), involving the customer in what you do as a business. Brand storytelling is all about turning your brand into an experience your customers can consume — that’s what will turn customers who pay for your product/services because they need to fix a problem into a rabid tribe that will support your success,  be loyal, and come back for more.

That’s how trust builds in and once you have successfully done that, they are more likely to buy from you. The least you’ll have relationships with people who will become your business advocates for years to come.

Storytelling is changing the way of doing business now, it is actually the most ancient and powerful tool for effective education. You know why?  Because humans are genetically wired to love and respond to stories. A memorable brand story is exactly the need of the hour. So, go all out and connect your customers to your business in a way that they have a lasting positive impression of who you are and what you stand for, and become loyal clients.

So, it’s time for businesses to stand out and, ultimately, turn into a legacy.

Awakening Digital Media in Remote Areas

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The advent of digital media has been nothing short of a revolution for our country. In recent times this importance got highlighted during demonetization and now with the Corona crisis staring at our face. This has also vastly affected our social relationships and the way we perceive issues.

Every technology has its drawbacks when used to generate negativism and disorder. Unfortunately these are the perils of our times and in spite of existing safeguards there are implications which have ominous consequences. Though, we have embraced the digital world with open arms, however, it cannot be said for the common man.

It needs no emphasis that more than 70 percent of the population our country resides in the rural areas. Has this population changed its ways and thoughts to imbibe the rudiments of digitization? The answer would not please us. We are still a developing country and cannot measure up to the standards of countries such as USA, Japan or France.

What then should be the way out? The first and the foremost are related to the reach of media. We need to have internet connectivity to the remotest areas which may involve a large amount of expenditure. A way out could be to develop a cyber hub in each village which should be maintained by the district administration and people could flock there and use the mobiles with the available internet connectivity to transact any kind of business or information related activity. It is noteworthy to see that PayTM and such like platforms have been a great force multiplier towards paperless transaction. We need to build up on these existing platforms and extend their reach to the remote areas of the country.

Broadband highways need to come up and get established in a phased manner. The common man needs this technology to augment the agricultural base of the country and build up the resources of our country. The path is long but can be tread upon if the correct impetus is there. I am reminded of a famous quote,

”Being challenged in life is inevitable, being defeated is optional”.

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

 

Does Financial Literacy help in developing “Financially Smart Individuals”?

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Making informed financial decisions is the key to effective financial planning. Every individual is required to deal with many financial decisions daily. Easy availability of a wide range of complex financial products in the market has led to a situation of “Paradox of Choice”, Killins, R. N. (2017) for the Individuals. It is thus imperative for individuals to be financially literate. To be equipped to make decisions, people must have an understanding of the basic financial concepts. Lack of such understanding may result in unproductive decisions. Financial choices relating to investments, savings, borrowings, retirement planning, estate planning, etc are effective and more productive if made by financially literate people.

What does Financial Literacy mean?

Financial literacy is achieved when an individual has access to the information about the various products and services available in the market; the information is achieved through an authentic source; the individual can comprehend that information in a way which results in informed financial decisions, thereby leading to financial betterment and well-being. 

According to OECD INFE, financial literacy has been defined as “A combination of awareness, knowledge, skill, attitude, and behavior necessary to make sound financial decisions and ultimately achieve individual financial wellbeing.”

The U.S. Government Accountability Office (GAO) has defined financial literacy as “the ability to make informed judgments and to take effective actions regarding the current and future use and management of money. It includes the ability to understand financial choices, plan for the future, spend wisely, and manage the challenges associated with life events such as a job loss, saving for retirement, or paying for a child‟s education.” 

Basic understanding of the various financial products and services and the applicable framework of risk-reward forms the broad base for achieving financial literacy. Individuals must, therefore, appraise the key determinants of financial literacy and how they impact our daily lives. This can be the only way to wiser financial planning and welfare maximization, both- at the individual level and for the society as a whole. 

What are the key determinants of financial literacy?

The ability of individuals to control their Financials, how well they make their ends meet and their approach towards choosing appropriate products reflects an individual’s money management skills. An Individual’s level of financial planning, however, depends on the provision for Savings, knowledge about investments and attitude towards financial planning. Whereas financial knowledge of an individual can be assessed based on their understanding of key concepts such as inflation and compounding; and their knowledge about the concept of diversification. Thus, money management, Financial Planning, Financial Knowledge and Understanding are the key determinants of Financial Literacy levels. OECD INFE (2011), S&P FINLIT (2014).

 

Conclusion: 

As per a Global Fin Lit survey by Standard & Poor‟s Financial Services LLC (S&P) only 24% of adults or less are financially literate in India, S&P Fin Lit Survey (2014). Among the group of emerging economies, India stands at the lowest level in terms of financial literacy. This proves that financial literacy is yet to be given priority by Indian citizens. Being in a situation where 76% of its adult population in India does not understand even the basic financial concepts, the need of the hour is to refurbish the savings and investments approach of the Indian Households and develop financially smart individuals. 

 

http://www.oecd.org/finance/financial-education/49319977.pdf

http://gflec.org/wp-content/uploads/2015/11/3313Finlit_Report_FINAL-5.11.16.pdf?x87657

Killins, R. N. (2017). The financial literacy of Generation Y and the influence that personality traits have on financial knowledge: Evidence from Canada. Financial Services Review, 26(2), 143-165.

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.

 

Explore Life within You-

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” I have always believed  success, in life, is most easily measured by the number of days you are truly happy.”  Our mindset and optimistic attitude towards life decides everything we come across.

Standing at the edge of human existence, a realization dawns on us that how temporary and uncertain our lives can be. To make our lives more fulfilling we need to create the right mindset which encompasses positive thinking. Think positive and positive things will happen.

Unfortunately we block our energy fields with negative thoughts. You don’t need to know the future as it is in your own hands. There comes a time when you need to have absolute faith in oneself and be sure, destiny will unfold your true path and purpose in this lifetime.

It is therefore extremely important that we channelize our energies to create positivity around us to make our work and life more fulfilling and motivating.

The present environment if has put restrictions, it has also opened up our inner doors of self reflection ,where we need to reflect upon ourselves in ways that we can decide what can be the path of our lives, which manifests in our well- being that would impact our personal and professional relationships as we are spending maximum time these days with ourselves and our family.

When we are going through a difficult situation and feel like running away from it, all we need to think and do is to replace that thought of ‘running away’ with the thought of ‘finding a way’. Let us use this difficult situation as a platform to take an extra step of faith in our lives. Let us take off and face the situation and move towards creating a positive change.

Let’s talk about a handful of simple practices that can be helpful in being more decisive and give direction to positive thinking.

  1. Create Realistic Expectations for Yourself

The problem lies when we expect from others and somewhere hold others responsible for what we desire in life. When you set realistic expectations from yourself and fulfill them it gives you strength to be self reliant in life. Eg. Develop a skill for which you are responsible, create happiness for yourself. Don’t wait for someone to make you happy.

  1. Never compromise on Values

There should be at least one strong value that you possess that you have never compromised on. End of the day it gives you inner strength and satisfaction.

  1. Don’t accept fear as a part of life

Conquer any one fear of yours. The more you run away the stronger the fear gets. Face it and kill it.

  1. Practice mindfulness

Enjoy every moment of your existence. The way you speak to each person, what you eat, what you smell, every breath of yours enjoy it. Imagine if there was no tomorrow. Live each day as if it is your only day to give to the cosmos. You will realize a sense of enthusiasm gushing in pushing you to do so much in life.

  1. Value Relationships

This is what you have earnt in life so value your personal relationships and nurture your professional relationships. Honesty in work and loyalty in relationships take you a long way.

   “Optimism is a happiness magnet”

 See what kind of people & situations draw

      Towards you. This will be a clear indicator of how you view yourself.

“  “Be the change you wish to see in others”

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.