A Monthly Newsletter from the Students of

Department of Management Studies,

IIT Roorkee
Dear Readers,
An inspired India regained the coveted World Cup after 28 years completing their
epic journey in Mumbai to script a glorious new chapter in their cricketing history. It
was a momentous Saturday night marked by high emotion and poignant scenes as
India, for long the game's financial power, stamped their supremacy on the field as
well and scaled the pinnacle. The win will boggle the minds for long.”Cricket and Bizz
of Brands” attempts to cover the game in the light of advertisement strategy used
by different brands.
It has always been said that there is no force on earth more powerful than human
endurance and the will to survive. No matter what be the magnitude of destruction,
humans rise to the challenge and fight back. Japanese have embodied the human
spirit and are striving back to build up after the earthquake and the tsunami struck a
deadly blow to the nation. Though the scale of human tragedy can't be quantified,
economists are doing their best to gauge just how much the destruction will cost
both Japan and the world in economic growth. “Japanese tragedy and its impact on
global economy “is our small effort to measure the same.
February was also the month of Union Budget – a blueprint for the allocation of fi-
nances for the ensuing year; and the ways and means of achieving it. We have tried
to capture the critical analysis of the Union Budget 2011 for the following sectors:
Manufacturing, Taxes, MAT, Agriculture and Banking.
“A Package Deal” is a satirical approach to the various ‘benefits’ offered by the
‘combos’ available these days. This article has been contributed by an alumnus of IIT
Roorkee (Batch 1970).Domination welcomes such contributions and hopes to see
many more of these in the future editions.
‘First do no harm ‘is inspired from one of the workshops of Cognizance-the Annual
Technical Festival and talks about how Information Technology can contribute to-
wards restoring the nature back. Enjoy the thought.
And to round it all up we have ‘Yaadein’, an ode in the memory of the wonderful
times spent in DoMS by the batch 2011.
Until next edition its Team Domination wishing you ‘Happy Reading’.

-Regards
Team Domination
 - Jagmohan Chopra

Freelance Writer
jagmchopra@yahoo.co.in

- Nikhil Reddy

DoMS, IIT Roorkee

nikhil.lingala@gmail.com
- Lalit Bari

DoMS, IIT Roorkee

lkbari@gmail.com

- Shruti Goel

DoMS, IIT Roorkee

goelshruti2008@gmail.com

- Anuj Mody

DoMS, IIT Roorkee

anuj.mody@hotmail.com
 PACKAGE DEAL
Our daughter‘s wedding was round the corner
and my wife had been pestering me to start
making the arrangements.Lazy to the
Perspective
core,bereft of any knowledge of the market and
scared of taking responsibilities,I had been
avoiding this work on some pretext or the
other.However,when things between me and
my wife reached a tipping point,I decided to
hold the bull by the horns and find a suitable
tent-wala for the wedding.
Chlorophyll
My neighbour was kind enough to give me the
address of a tent-wala whose services he had
used for his daughter‘s wedding,with a word
of caution. ―Do what you like,you can‘t beat
these guys as far as rates are concerned.If you‘ll
beat them in one thing,they will beat you in
two‖said my neighbour.Nevertheless,after a
long discussion with the tent-wala,we arrived
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at a price for the shamiana.―Are there any dis-
counts?‖ I asked the tent-wala. ―Sir, there are
no discounts, but the price to you will be less if
you take our package deal‖said the man with a
cocky smile. I had heard about deals between
Mittal and Arcelor, between Sonia and
Laalu and more recently between Sonia and
Elite Talks
Didi, but hearing it from a tent-house salesman
took me by surprise.
―Package deal, what‘s that?‖I asked. ―Package
deal, Sir, consists of all our normal services
plus the furniture, decoration, mandap and
food arrangements‖ said the man. ―But you
are only a shamiana supplier, what do you
know about furniture, decoration and food?‖ I
quipped. ―That is true, but we have a working
relationship with other suppliers that is aimed
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at taking care of all our customers‘ needs. All
you need to do is to bring your cheque book
along and we‘ll take care of all your wor-
ries‖said the salesman. ―I‘ll let you know in a
day or two‖ said I and walked out of the ram-
shackle shop. ―India‘s on the move‖ I told my
wife Sudha when I got back home. ―Even tent-
walas are talking about working relationships,
customer needs and what have you.‖ ―What
do you mean?‖ said my wife. ―The guy I went
to is offering a package deal where he will
provide us every conceivable service for Sak-
shi‘s wedding - for a fee. He has asked me to
bring my cheque book along the next time I go
to see him.‖ ―What‘s wrong with that? If fast-
food joints in cinema halls can offer deals, why
can‘t the poor tent-wala? This is what you call
empowerment‖said my wife. ―But it isn‘t one
tent-wala, there are four of them there, each
offering a deal different from the other. While
one is offering a free chair for every table we
take, the other is offering a free something for
every chair. Tell me, if the number of guests
we are inviting is fixed, what are we going to
do with extra tables and chairs? I tell you, I
hate this word deal. It makes me feel as if I am
doing something sinister, something under the
table, like the politicians. And one more
thing, what we get in cinema halls are not
deals, they are ‗combos‘, like the one we took
when we went to see the movie recently -
popcorn and cola combo, if I remember cor-
rectly. Damn those guys, they tricked us into
buying a cola al-
though we wanted popcorn only‖ said I.
 PACKAGE DEAL
―We never had these things in our times‖ said
Arvind, a friend, who had heard our conversa-
tion and had stepped in to say hello. ―All we
Perspective
had were Bata prices and off-season discounts.
Marketing was largely transparent. Nobody
hid anything from you. In fact, there was noth-
ing to hide. There were straight forward prod-
ucts with straight forward prices. You either
took them or left them alone. These days they
tell you only half the story, the other half is for
you to guess or hidden behind asterisks say-
Chlorophyll
ing ‗conditions apply‘, in print you can hardly
read.‖ ―Like the incoming and outgoing
schemes of mobile companies. Only when
you get the bill do you realise what you‘ve
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Elite Talks
Page 5
gone and done. It's been two years since I took
my connection and I am still to understand the
business of incoming and outgoing calls‖ said
I. ―And they want us to believe that we can
save more by spending more.Tell me,can any-
body ever do that?‖said Arvind. ―Bata prices
and discounts are passe‘‖ interrupted my wife.
―These are days of happy hours, combos,
grand slams, early-bird discounts, buy two -
get one free, buy talc - get soap free and pack-
age deals, all aimed at making you buy some-
thing you don‘t really need. Go to the mall I
go to and you‘ll know what present-day mar-
keting is all about.‖
- Jagmohan Chopra
Freelance Writer
jagmchopra@yahoo.co.in
A Sectoral Coverage of The Union Budget
2011-12
 BUDGET 2011-12
Marginal Hike in MAT, SEZs exemption for MAT ends
Perspective
Infosys Bangalore Office: MAT to adversely impact profit margins for IT companies
Chlorophyll
 Pranab Mukherjee in the budget has marginally
raised the MAT from 18 % to 18.5 % on compa-
nies' book profits. Changes in the tax rate would
be effective from April, 2012.
 MAT was introduced in 1997 to bring under the
tax net companies that paid no or very little tax
after taking advantage of the exemptions pro-
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vided by the Income Tax Act.
 Normally, a company is liable to pay tax on the
income computed in accordance with the provi-
sions of the income tax Act, but the profit and
loss account of the company is prepared as per
provisions of the Companies Act. There were
large number of companies who had book profits
Elite Talks
as per their profit and loss account but were not
paying any tax because income computed as per
provisions of the income tax act was either nil or
negative or insignificant. In such case, although
the companies were showing book profits and
declaring dividends to the shareholders, they
were not paying any income tax.
 Section 115JB of the Income Tax Act, states that
your normal tax payable is to be compared with
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 18.5% of your book profits and you are required to
pay the higher of the two. This is an increase of
0.50% over last year.
 Also, announced in the budget is the proposed plan
to levy Minimum Alternate Tax (MAT) of 18.5 per-
cent on the book profits of Special Economic Zone
developers and units operating out of these SEZs.
Both the developers as well as units in the tax free
enclaves were earlier exempted from MAT under
Section 115 JB of the Income Tax Act. This is a set-
back for companies in the IT and ITeS sector having a
consolidated export of US $ 60 Billion.
 However, as a relief to the zones, a new scheme is
also being introduced by which units in SEZs will be
able to obtain tax-free receipt of services wholly con-
sumed within the zone and get their refunds in a
much easier manner.
 Exports from SEZs contribute about one-third of the
country's total exports. Shipments from these zones
during April-December 2011 grew by 47 percent to
Rs 2,23,132 crore over the same period last year.
 BUDGET 2011-12
Agriculture
With sharp rise in food prices, Reforms in Agricul-
ture were urgently required with calls for allowing
FDI in Back End Storage Infrastructure, embarking on
2nd green revolution to increase food productivity
drastically, to feed a population of 1.2 billion.The
Perspective
main features of budget in agriculture sector were-
 Total allocation under RashtriyaKrishiVikasYojana
(RKVY) has been increased from Rs.6,755crore in
2010‐11 to Rs.7,860 crore in 2011‐12 mainly to
check the smooth flow of distribution ofthe major
commodities.
 Rs. 400 crore was provided to extend the green
revolution to the easternregion of the country.
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 Rs.300 crore has been proposed to bring 60,000
hectares under oil palm plantation,
 The target for credit flow for the year 2011‐12 has
been increased from Rs.3,75,000crores
toRs.4,75,000 crores.
 A 7 per cent interest. A 3 per cent interest sub-
vention is proposedfor those farmers who repay
Qutopia
their crop loans on time in 2011‐12. Thus, the ef‐
fective rate ofinterest for such farmers will be 4
per cent per annum. The NABARD's capital base
would bestrengthened by infusing Rs.3000 crore,
in a phased manner.
Some Other measures are as follows-
Storage Capacity and Cold Chains
 On January 1, 2011, the foodgrain stock in Central
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pool reached 47 million tons, 2.7 times higher
than 17.4 million tons on January 1, 2007.The in-
vestment in cold storage projects is gaining mo-
mentum. During this year, 24 cold storageprojects
with a capacity of 0.14 million tons have been
sanctioned under National HorticultureMission. In
addition, 107 cold storage projects with a capacity
of over 0.5 million tons have been approved by
the National Horticulture Board.To attract invest-
ment in this sector, henceforth, capital invest-
ment in the creation of modern storage capacity
will be eligible for viability gap funding scheme of
the Finance Ministry. It is also proposed to recog-
Page 8
nize cold chains and post‐harvest storage as an
infrastructure sub‐sector.
National Mission for Sustainable Agriculture
To sustain the growth in agriculture by increasing the
productivity and address issues like deterioration in
soil health, indiscriminate use of chemical fertilizers,
distorted prices, the Government proposes to promote
organic farming methods, combining modern technol-
ogy with traditional farming practices like green ma-
nuring, biological pest control and weed management.
Mega Food Parks
The targeted Mega Food Parks in the Eleventh Plan is
set at 30. So far, 15 such parks have been sanctioned.
In 2011‐12, approval is being given to set up 15 more
Mega Food Parks to ensure smooth flow of fruits&
vegetable at competitive prices and to reduce wast-
ages
Agriculture Produce Marketing Act
The inflation in vegetables and fruits has exposed seri-
ous flaws in our supply chains. The government regu-
lated mandis sometimes prevent retailers from inte-
grating their enterprises with the farmers. There is
need for the State Governments to review and enforce
a reformed Agriculture Produce Marketing Act ur-
gently.
Nutrient based subsidy
In 2010‐11, the nutrient based policy was successfully
implemented for all fertilisers except urea.
Conclusion:
Though PranabMukhrjee has tried to give filip to Agri-
cultural sector still, he is still some distance away from
launching the big ticket reforms like allowing FDI in
multibrand retail, allowing FDI in back end storage In-
frastructure, Improving the Procurement System of
food grains.Still stimulus to agriculture has been given
by earmarking more funds for credit to farmers from
375,000 crores to 475,000 crores.With growth in agri-
culture in 2010-11 at 5.5 % of GDP more focus is re-
quired to increase the productivity to feed the nation
and control Food Inflation.
 BUDGET 2011-12
Banking
Perspective
Major Expectationsfrom Banking Sector from Union
Budget 2011 were as Follows-
 Tax benefits on long-term infrastructure bond
investments could be extended till FY12. Banks are
expecting to also be given this window for fund rais-
Chlorophyll
ing. Previous budget allowed an additional Rs
20,000 deduction for investment such as bonds; this
limit may also see a hike.
 Higher exposure limits for banks to finance
UMPPs (ultra mega power projects) and other
power projects.
 Liquidity concerns need to be addressed as the
situation has not completely eased yet.
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 Further recapitalization of certain PSU banks .
 Currently, rules limit voting rights of foreign en-
tities to 10% irrespective of the actual stake they
hold. Bankers expect the government to remove this
clause, allowing additional capital to flow into the
sector.
Elite Talks
 Financial inclusion needs to be addressed - in-
centives/subsidies need to be provided for banks to
set up accounts/ branches in Indian villages as these
have low transaction volumes and high servicing
costs. More clarity on Microfinance Institutions
(MFIs) also expected.
 The Government set up a Financial Stability and
Development Council (FSDC), a regulatory body to
oversee issues related to regulation, financial inclu-
sion, and financial stability during the last budget.
Page 9
More clarity on the working of the same is needed.
Measures in the Union Budget-
 An sum of Rs 60 bn will be offered to under-
capitalized public sector banks to ensure that all PSU
banks are able to attain a minimum 8% Tier-I capital
ratio by FY12.
 In order to step up agricultural credit the target for
bank credit has been increased by Rs 1,000 bn to Rs
4,750 bn for FY12. Banks have been asked to increase
focus on credit lending to small and marginal farmers.
 From the current market interest rate of 7% for crop
loans, a 3% interest subvention (2% previously) has
been given to farmers who pay their dues on time.
 In order to promote regulation of microfinance insti-
tutions (MFIs) the government is considering putting a
regulatory framework in place in order to protect small
borrower interests. Rs 1 bn‘India Microfinance Equity
Fund’ is to be created with SIDBI.
 Under the financial inclusion target, banking facili-
ties will be provided to all 73,000 habitations having a
population of over 2,000 during FY12. This year (FY11),
20,000 villages will be covered.
 In order to help route banking funds into the rural
infrastructure, the corpus of the Rural Infrastructure
Development Fund (RIDF) XVII is to be raised to Rs 180
bn in FY12 from Rs 160 bn currently.
 IIFCL which refinances bank lending to infrastructure
projects will enhance its disbursements Rs 200 bn in
FY11 to Rs 250 bn by FY12.
 BUDGET 2011-12
Banking Continued….
 Additional deduction of Rs 20,000 for invest-
ment in long-term infrastructure bonds is proposed
Perspective
to be extended for one more year.
 In order to attract foreign funds to financing
infrastructure in India, special vehicles in the form
of notified infrastructure debt funds are to be cre-
ated. Interest payment on the borrowings of these
funds will now be subject to a reduced withholding
tax rate of 5% instead of 20% currently, and the
Chlorophyll
income of the fund will be tax-exempt.
 Scheme of 1% interest subvention on housing
loan extended for homes uptoRs 1.5 m (from 1 m
previously), where the cost of the house does not
exceed Rs 2.5 m (Rs 2 m previously).
 RBI to issue guidelines on banking licenses this
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Elite Talks
Page 10
fiscal
Conclusion-
Strengthening of the banking sector through capital in-
fusion of Rs 20,000 crore is welcome and will give boost
to credit growth. Issue of new banking licenses will im-
prove sentiment and provided transparency and strong
eligibility norms are in place for such licenses, the bank-
ing sector will widen and deepen with more players
coming in. Corpus of Rs.100 crores for Micro fi-
nance sector equity support will give a boost to the
small MFIs. Higher target for agricultural credit and may
lead to some NPA problems in this sector. Infrastructure
financing companies are set to benefit from the higher
allocation, extension of fiscal benefits for infrastructure
bonds in addition to foreign investor participation in
 BUDGET 2011-12
A Fillip for the Manufacturing Sector
Perspective
Chlorophyll
Talking about the Budget Proposals for the Manufac-
turing Sector, the mood can simply be summed up as
“Promises Galore but no Instant Remedy for the
Manufacturing Sector” as the Finance Minister, Mr.
Pranab Mukherjee fell short of coming up with a well
-contained Manufacturing policy. He simply stated
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that the Commerce and Industry ministry will an-
nounce a comprehensive manufacturing policy soon
to help make Indian companies globally competitive .
He gave no clear-cut guidelines as regards the Indian
Factories but he sounded his optimism by emphasiz-
ing that efforts should be made to increase the share
of Manufacturing in India’s GDP from the currently
Elite Talks
stagnating 15-16% to at least 25% over the next dec-
ade. In a sharp contrast, China’s Manufacturing cur‐
rently contributes about 40% to its GDP. Looking at
the sub-sectors under Manufacturing, the Budget did
contain a few positives for the steel sector as higher
export duty on iron ore has been a long pending de-
mand of the steel industry and the Budget has taken
care of the issue by increasing the export duty to
20%. This should ensure higher availability of iron
ore for the Indian steel industry. Withdrawal of ex-
port duty on pellets should encourage installation of
Page 11
pellet plants by mining companies. More pellet
plants in the country will also benefit the steel indus-
try. Even the auto sector had something to cheer
about, not because of what the Budget contained
but because of what it did not contain. For instance,
the auto Industry was apprehensive about a change
in central excise duty across the board to 12% from
the existing 10%, about increase in excise duty on
small cars and about special tax on purchase of die-
sel vehicles. None of these apprehensions came true
in the Budget – implying a positive surprise to the
sector relative to expectations. The Budget didn’t
disappoint the Cement Industry either as the basic
Custom Duty on two critical raw materials of the ce-
ment industry viz. petcoke and gypsum is proposed
to be reduced to 2.5 per cent. The FY12 Budget, in a
sense, continues the direction of government policy
over the past few years – i.e. support to consump-
tion by way of small adjustments to personal income
tax exemption limits – though marginal – increasing
annual disposable income by Rs. 6,000 and also a
move to stay on course for transition to GST in order
to simply the taxation levies on services provided.
 BUDGET 2011-12
Page 12
Taxes

When I was 12 yrs. Old
sitting at home watching
my favorite sports cricket .
My father came from of-
Perspective
labs are more taxed . Same is true for air travels and
meals in restaurant. Besides a marginal increase in life
insurance premium and stay at hotels.

Minimum alternate Tax (MAT) imposed on SEZs , this

fice and switched to some
18.5% MAT on SEZ had caught many by surprise as ear-
boring news channel for
lier it was scheduled with DTC rolling next year. The
some budget kind of thing
taxation on dividends from foreign companies at 15%
and that day I just had one
rather than higher base rate of 30% is welcome provi-
thing in mind that how can
sion. Export tariff lines on some most popular commodi-
people be so boring I will
ties overseas like tea, coffee, basmati, cotton, tobacco,
never be. Hehe but u know one famous quote “ mul‐
groundnut and spices. On the other side transport
lah ki daud masjid tak” .
charges will be bereft of service tax for exporters. Busi-
Yes I am in the same league now waiting eagerly for ness with a net turnover less than Rs. 60lakh will soon
Chlorophyll

Mr. pranab mukherjee to announce the fate of many have an exemption from the ambit of audit.
on this very 28th Feb.. Task is somewhat difficult this
Surcharge on the Income-tax with total income above Rs
time as inflation is at its peak and food prices my god
1 crore reduced to 5% from existing 7.5% for domestic
breaking all previous records with 20% hike. Main
in total this will reduce marginally tax to 16.22% from
goal may be to curb inflation but not at cost of
16.61% and for foreign companies it is 2% from 2.5% will
growth. This time more focus is on reducing growth of
give them a relief of 0.20%. Taxation of dividends re-
expenditure and projected its growth to 3.4%.
ceived from foreign subsidiaries taxable at reduced ef-
Budget 2011 appears broadly tax neutral as not much fective rate of 16.22%. Also, no expenditure incurred in
change in Direct tax with increase in income tax ex- earning such dividend shall be allowed as deduction. It
emption for male it is 1,80,000. For senior citizen ex- would incentivize Indian companies to repatriate excess
Qutopia

emption increase by 10k below 80yrs. And a new
category of above 80 introduced for whom exemption
limit is Rs. 500000. Also, it is proposed to introduce a
new concept called Notified jurisdictional area under
this the govt. will notify certain overseas jurisdictions
which are not effectively exchange information with
India.
It is clear that Mr. mukherjee is banking his projection
of 18.5% growth in tax revenues in 2011-12 over the
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cash lying in overseas subsidiaries to India. Instituting a
Rs. 100 crore India microfinance equity fund with SIDBI
is a welcome move as it strengthen the role of MFIs .
The corpus of Rs. 500 crore for women SHGs will be a
great move to turn back SHGs focus on financial inclu-
sion.
With all these changes we can say Indian economy has
decent fiscal shape but it is also imperative that it will
be maintained in future as well. So hope that with what-

revised estimate of 2010-11. And to achieve the tar-

ever fast-food it is consuming will not affect its health
get more concern is on service tax this time as con-
sulting law firm or doctors and getting test done at even on using the adulterated oil of corruption.
Budget 2011-2012

Reviewed By

Harsh Singh
Mukesh Rathi
Piyush Jain
Rajneesh Kumar
Rishi Arora
 JAPANESE TRAGEDY AND ITS IMPACT ON GLOBAL ECONOMY
IMF had recently announced that the global econ-
omy would increase at the rate of 4.2% this year.
Well, that looks good considering the impact that
the recent recession had on the developed coun-
tries, especially, the USA and the European coun-
Perspective
tries. China has been developing at a much faster
rate and has overtaken Japan to become the second
largest economy after the USA. As the global econ-
omy is recovering from the so called “depression”,
Japan has been hit by one of the worst natural ca-
lamities a country can ever face.
An unimaginable earthquake of 8.9 on Richter scale
that rocked Japan on March 11, 2011 will have a
large scale devastating effect on the Japanese econ-
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omy. Airports, Roadways, Ports have been de-
stroyed to a great extent. Companies have been
shut down. The even more serious repercussion of
the earthquake was the blast at 3 of its nuclear
power plants that resulted in evacuation of resi-
dents in a radius of 10-30 km around the blast site.
Well, time would tell what would be the effect of
the radiation on the people of Japan. But, looking
from the economy front it will definitely take time
for Japan to open up completely for global trade
again. Let us analyze the impact of the Japanese
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disaster on the global economy.
Japan's calamity will disrupt "normal" supply and
demand for the most basic stuff that the world
needs -- now, and potentially for a few years to
come. Consider the potential impact on food prices.
The tsunami has damaged rice paddies and other
agriculture resources. Japan will have to make up
for domestic shortfalls with imports, further strain-
Elite Talks
ing an already stretched global food supply.
Oil – the most important resource for any develop-
ing / developed country. It occupies a major portion
of the import bill of the country. Considering the
shutdown of many companies, you might be com-
pelled to guess a reduction in the import of oil. On
the basis of this speculation, oil fell below $100
mark owing to a decrease in demand for oil. But,
this looks like being more optimistic. Due to the ex
Page 14
plosion of the nuclear power plants, it is very well possi-
ble that Japan would find oil as a substitute for
energy in the near term. This might make the demand
for oil more or less the same – or may even shoot up.
Chinese manufacturers relied heavily on Japan manufac-
tured auto components. A shortage is supply of compo-
nents might result in other countries getting a chance to
emerge as a savior to the importing countries.
Quick estimates made by World Bank about the impact
on the world economy caused by the Triple Tragedy
(earthquake, tsunami and nuclear power accident) of
Japan shows that the cost of Japan’s disaster to be in
the range of $122 billion to $235 billion or 2.5 to 4 per
cent of GDP.
Japan has steel plants, oil refineries, nuclear power
plants and auto and electronic parts manufacturing
units. The activity in all these centres of production has
come to a standstill and will remain shut for quite some
time. There has been disruption in transport and power
networks which would be re-established at a distant
future. Domestic plants of Toyota and Honda Motor
companies have been shut down due to shortage of
auto parts. Sony Corp. has to close down its six factories
in Tohoku for non availability of electronic parts. Other
big names whose operations have been suspended in
various regions of Japan are Toshiba Corp, Mitsubishi
Electric Corporation, Renesas Electronic Corporation,
Fujitsu Ltd. etc. Thus the electronic, TV, semi conductor,
space industries etc. have been jolted. Japan exports
flash memory chips that are used in many portable de-
vices. Toshiba Corp, big manufacturer of the chips, was
closed down temporarily. Japan also supplies chips for
cell phones and iPads; wafers for computer chips – a
sudden shutdown of the manufacturing units is bound
to increase the prices of these commodities temporarily
that might have an impact on companies bottom-line in
the near term.
 JAPANESE TRAGEDY AND ITS IMPACT ON GLOBAL ECONOMY
Bank of Japan has taken care to check the financial
panic by inducting $250 billion dollars worth of
liquidity into the Japanese economy and has indi-
Perspective
cated its readiness to pump more money as re-
quired. This would also ensure that yen dollar parity
remains unaltered in case the Japanese corporates
wish to draw on their reserves kept in dollars for
boosting up their recovery.
As far as Japan is concerned there may be a nega-
tive growth in GDP of a few decimals during the
current year which would be off set in the following
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year when reconstruction activities are on way.
However, this estimate may be off mark in case nu-
clear fallout gets out of hand. With this caveat, Ja-
pan’s economy will not get significantly impacted as
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Elite Talks
Page 15
a whole but there would be disruption in supply chains
of auto, electronic parts, food trade and
there would be upward requirement of construction
materials including cement and steel. Also, there is the
cost of money itself - borrowed money. Japan, like
America, does not run budget surpluses. Japan's re-
building needs could overwhelm this domestic savings
market, pushing the nation to borrow abroad. To do so,
Japan may have to pay higher interest rates.
Looking at the Japanese history, we can stay optimistic
that Japanese economy will be impacted in the short
run, but few years down the line it will again emerge as
a leading exporter in the global economy. Only time will
tell, how well can Japan recover from the series of ca-
lamities it has faced.
- Anuj Mody
DoMS, IIT Roorkee
anuj.mody@hotmail.com
 FIRST DO NO HARM
How can Information Technology contribute towards restoring the nature back?
"First do no harm" was the key note speech deliv-
ered by Mr.Karan Grover on the first day of Cogni-
zance - an annual cultural festival of IIT Roorkee. We
Perspective
were presented with some astonishing facts, images
and videos as to how the nature's gifts - air, water,
land, forests, wildlife - have been deteriorating, as a
result of continual human actions, because of which
the complete ecological balance is getting affected. A
video footage showed a polar bear trying to find his
home, which disappeared as a consequence of global
warming, but will eventually end up being dead un-
able to do so. That one hour of presentation, which
consisted of many such footages, had moved me so
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much so that I started wondering what best we
could do to improve our situation and enable the
coming generations enjoy nature as much as we do
or even better.
Extremely disconcerting issues – like increase in the
average temperatures, plummeting ground water
levels, unpredictable annual rainfall, deadly pace of
ozone layer depletion and polar ice-caps' melting,
substantial adulteration of soils with chemical fertiliz-
Qutopia
ers, irrepressible increase of deforestation, overshot
usage of conventional fuels – are the results of hu-
man activities, making our planet an increasingly un-
favorable place to live in, for any form of life existent.
If we don't immediately address any of this, we
might have little chance to salvage the irrevocable
damage to our habitat – the Earth. Having hailed
from IT industry, I couldn't help myself but think
what carbon foot print does the IT industry as a
whole has. And, is there any way that information
Elite Talks
technology could help, if not completely save, our
planet from the seemingly inevitable crisis by getting
into the fundamentals of our daily routine? Well, the
good news is that there is!
These days, it is quite often seen or heard about the
“Smart Planet” initiative by IBM. Though this dates
back to the year 2008, I feel the relevance of this is
only growing day by day making the task at hand to
Page 16
be perceived as having the prime importance. The ones
that caught my attention were “The roads to smarter
planet” and “Green Buildings” among others like
“Advanced Water Management”, “Smarter Fuel Re‐
sources”, “Mastering carbon management: Balancing
trade-offs to optimize supply chain efficiencies” etc.
If one refers to the link www.ibm.com/green, one can
observe that we can infuse intelligence into any system
to make it “smart” – going by IBM terms. What does this
have to do with the topic at hand? In fact a lot of it!
Smart systems mean reduced waiting time, reduced
wastage, reduced fuel consumption, effective shipping
and transportation space and increased renewable en-
ergy resources consumption etc, everything contributing
to the efforts of making the planet “green”. And what is
the proof? Refer to the below heads – “Smarter roads”
and “Green buildings”, which are excerpts taken from
IBM’s website – www.ibm.com/green
Smarter roads:
In Stockholm, a dynamic toll system based on the flow of
vehicles into and out of the city has reduced traffic by
20%, decreased wait time by 25% and cut emissions by
12%. In Singapore, controllers receive real-time data
through sensors to model and predict traffic scenarios
with 90% accuracy. And in Kyoto, city planners simulate
large-scale traffic situations involving millions of vehicles
to analyze urban impact. All of this is possible because
cities can infuse intelligence into their entire transporta-
tion system - streets, bridges, intersections, signs, signals
and tolls - which can all be interconnected and made
smarter. These new traffic systems can improve drivers’
commutes, give better information to city planners, in-
crease the productivity of businesses and raise citizens’
quality of life. They can reduce congestion, shrink fuel
use and cut CO2 emissions. Our rapidly urbanizing planet
depends on getting people and things from here to
there. In the 20th century, that meant freeways from
state to state and nation to nation. In the 21st century,
“smart” traffic systems can be the new milestone of pro-
gress.
 FIRST DO NO HARM
Green buildings:
IBM’s green datacenter in Boulder, Colorado, has
replaced energy-greedy air-conditioning with cooling
from the air outside, which can be used for up to 75%
Perspective
of the year, contributing up to 50% in annual energy
savings. And for a glimpse of what is possible
through a smarter approach, consider the Green
Spaces office park in Delhi, India, on which construc-
tion will begin this year. It aims to be the world’s
greenest and most energy-efficient commercial build-
ing, through such innovations as 100% waste and
water reclamation, instrumentation and interconnec-
tion of all systems, recharging ports for electric cars,
and ventilated chairs. It even plans to “grow” its own
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oxygen and remove harmful compounds from the air
through the strategic use of indoor vegetation -
which doesn’t just help the environment; it also helps
people think and be more productive. An earlier pro-
totype was rated the healthiest building in Delhi by
the Indian government. In the 20th century, people
marveled at what could be built by filling our build-
ings with steel. In the 21st, let’s see what new
heights - and reduced footprints - we can achieve by
filling them with intelligence.
Qutopia
What might be the result of these kinds of initia-
tives?
Now that most of the organizations (IT and non IT,
government and non government) are growing con-
scious of their carbon foot prints and that one of the
biggest IT services organizations has started wearing
the “green thinking cap”, this would essentially mean
others would have joined or will soon join the
Elite Talks
league. For example, Apple Inc (through eco friendly
BUDGET
Page 17
products and lean management), Amul India (through
planting saplings), ITC (by reforestation), Coca-cola (by
coming up with pet bottle made from plants), etc.
started to make their own contributions. One might ar-
gue, there are still problems with the new “green” initia‐
tives of above mentioned and many other organizations.
But the best part is that this problem is concerning eve-
rybody at every level – thereby triggering something
positive towards finding the solution.
As was seen in the above avenues, where IT can be of
help, I am only positive that regardless the industry, IT
can act as a hub and bridge in every other industry with
respect to the green initiatives, doing which serves the
prime cause at hand – rejuvenating our planet. I’m just
trying to say, synergy is all what is needed now, for the
rate at which we have been damaging our habitat. It is
not just Telecom, Automobile, Agriculture, Steel, Paper
or any one of industries that do their part individually;
they will have to do it together with one collective ob-
jective – revive life into the planet Earth, making
1+1=11! I just dream of a day, where there won’t be any
need for any firm or company or a country to buy or
trade carbon credits!
I hope we will come out of this crisis soon. I hope I em-
brace nature as my great grand fathers did. I hope my
next generations won’t have to see an animation movie
to visualize animals, waterfalls, rivers, lakes, valleys, gla-
ciers and forests. I hope the Earth would be as green as
it was during the age of Homo sapiens. I hope. Because,
hope is a good thing, in fact best of things!
- Nikhil Reddy
DoMS, IIT Roorkee
nikhil.lingala@gmail.com
 CRICKET
CRICKET AND BIZZ AND BIZZ OF BRANDS
OF BRANDS
The self-confidence that Dhoni and his team-
mates have shown in a gruelling 41-day World
Cup tournament featuring 14 countries is, in
many ways, a reflection of the "India rising" story.
The belief that India deserves recognition as an
important global player has grown apace along-
Perspective
side its gross domestic product rate over the past
decade.
Cricket has been a means to cross class barriers
and to anticipate a democratization of India, and
it’s rightly being pointed that the biggest cricket
season is back with a bang. From world cup to IPL
about Rs. 1500 crore of combined advertising
funds are pumped into the two mega events and
every Indian marketer worth his dollar is gearing
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up to be a part of the largest media extravaganza
ever, in terms of both viewership and revenue.
Despite the overdose of cricket and the high cost
associated with it most advertisers are not de-
terred from shelling out the big bucks. While
sponsors like PepsiCo, Hero Honda, Sony India
and Nokia chose to be a part of the world cup,
SET Max had got on board Hyundai, Vodafone,
Cadbury India besides seven other sponsors. Ad-
vertisers had suffered a setback with India’s early
Qutopia
exit in the World cup 2007 and
were careful enough in crafting
their marketing plans to get best
returns. In fact, the Korean con-
sumer durable major LG Electron-
ics had chosen not to be present
on ESPN Star Sports, the official
broadcaster of the 2011 edition
of the World Cup despite being an ICC ground
Elite Talks
partner, because, it expected an assured viewer-
ship on IPL and, therefore, is seen advertising on
SET Max, the official IPL broadcaster, during the
tournament.
This change in strategy by the advertisers is be-
cause these days the snappier Twenty20 format
of IPL is preferred, but it has not completely taken
away the sheen associated with the World Cup.
Advertisers like Philips took this opportunity to
their advantage. Vivek Sharma, CMO, Philips India
Page 18
said "We have been present in cricket for the last
three years and got good returns. The World Cup
is an ideal platform for us to reach our target au-
dience. It is like a national event filled with pas-
sion and we expect to get undivided attention
from viewers unlike the IPL which is excessively
commercialised.” The big spenders like cola ma‐
jor, PepsiCo had launched its campaign "Change
the game" during the world cup. PepsiCo’s sole
aim was to capture and celebrate the changes in
cricket over the years with a 360 degree market-
ing activity. Sandeep Singh Arora, executive VP-
marketing, cola, PepsiCo India, said "We feel the
World Cup is a tremendous opportunity for us to
leverage in terms of our image as also our sales.
The IPL, too, is a great platform but that does not
take away anything from the efficiency of the
World Cup."
Nike in order to display it’s deep connection to
the sport, and to Team India, launched the Bleed
Blue Campaign as an expression born out of
'Blood Sweat and Blue', where the blue India jer-
sey is the ultimate glory for any cricket crazy
youngster in our country. It released three TVC,
first titled ‘Bleed Blue Pledge’ during the quarter
final game against Australia, the second titled
‘Yards’ during the semi final
clash against Pakistan and
the third ‘United By Blue’,
following India's World Cup
win. The streets were empty
and all eyes were glued to
the TV.
The India-Sri Lanka Cricket
World Cup final on Saturday had smashed all pre-
vious records for television viewership. According
to Audience Measurement and Analytics Ltd
(aMap), a viewer-ship rating agency, 67.6 million
viewers saw the match for over four hours.The
match got 13.7 television rating points (TVRs), the
highest for any event so far. When the winning
moment arrived, the ratings peaked, touching a
massive 21.44, says aMap in a release. This win
has created the excitement and the platform that
IPL-4 will build on.
India being crowned the World Champions has
 CRICKET
CRICKET AND BIZZ AND BIZZ OF BRANDS
OF BRANDS
Page 19

brought joy to sponsors as the cricket economy ducing cricket fever combo wherein consumer can
is set for an upward swing. ODI’s stand to bene‐ win world cup merchandise."
fit the most, with some experts forecasting ad
rates on live telecast to be 20 per cent more
than normal times for the succeeding two se- It might have been the World Cup fever that stalked
ries. The sponsors want an even larger associa- the nation but at Volkswagen India, the exclusive
Perspective

tion with the sport.
LG Electronics who had chosen not to be pre-
sent on ESPN Star Sports, had agreed to the fact
that World cup win has surely an opportunity in
it. The sales of flat panel displays shot up by 10-
15 per cent during the period. The advertisers
believed that the game is not just limited to ad-
vertisements; in fact everything that touches a
consumer's life directly like flat screen TVs, ap-
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sponsor in the automobile category, the excitement
was about IPL, as it has used the IPL platform to
launch a “special action model.” The Godrej Group
and Loreal India are investing more in the forthcom-
ing Indian Premier League (IPL-4)as they are consid-
ering it a safe and low-risk proposition while Parle
Agro, Parle Products are betting big on World Cup
2011. Nadia Chauhan, joint managing director &
CMO of Parle Agro, had said that company pre-
ferred to invest in World Cup 2011 to gain visibility

parel and FMCG products would be hard sold on for its beverages brands during the peak season of
ground as well. Retail chain Big Bazaar, which is summer as IPL charges were very high. The telecom
the official merchandiser for the World Cup, had players, cola majors and consumer durables firms
launched a range of personal care products like have invested in both sport properties to gain high
toothpastes and soaps through its Sach brand- visibility for their brands and leverage the cricket
inspired by Sachin Tendulkar-to coincide with
platform. Idea Cellular, beamed its television cam-
the tournament. Even multiplex chains were
paign titled 'Keep Cricket Clean' during the telecast
prepared to hop on to the cricket bandwagon.
of World Cup 2011.
Archana Jhangiani, head brand & marketing, Big
Cinema, said "We are trying to extend the buzz For the advertisers, this large platform of cricket,
around cricket on to the cinema goers by intro-
Qutopia
Elite Talks
 CRICKET
CRICKET AND BIZZ
OF BRANDS
with ICC World Cup and IPL back to back was
clearly not an either-or decision. The decision to
invest in WC 2011 or IPL 2011, or both, was
purely based on the brand or advertiser’s market‐
ing objective and not the viewership as both
Perspective
these tournaments deliver a similar viewership at
similar efficiency benchmarks. Even if this world
cup was Sachin Tendulkar’s last World cup and
was played in the sub-continent, IPL garners view-
ership from a wider demographic set, as opposed
to a male-dominated World Cup viewership, be-
cause of the combination of cricket, glamour and
drama vis-à-vis pure cricket which has resulted in
a greater set of FMCG and women-focused
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brands investing in IPL 2011 as against WC 2011.
Many sponsors and advertisers believe that the
IPL is a more proven format hence they are willing
to bet huge money on it. It is believed that there
is a better visibility for the brands as it reaches
Qutopia
Elite Talks
AND BIZZ OF BRANDS
Page 20
more people and the reach is consistent match
after match and does not depend on Indian
team’s performance. They believe IPL is a big plat‐
form, World Cup or no World Cup and the adver-
tisers prefer a safer bet such as the IPL, where
interest is broad-based. But, those who favour
the world cup said that the world cup has an in-
ternational acceptance. The investment in IPL-4
has invited investments in different formats be-
cause of higher number of matches in IPL than
World Cup. Either way, it’s only the Indian busi‐
ness that will feel the pressure of the two biggest
tournaments in cricket. It's raining crores for the
World Cup-winning Indian cricket team and now
the heat has shifted to IPL. It's just a matter of
time, the consumer market has exploded on the
country's biggest religion backed by the market-
ers attempt to maximise their quest for the con-
sumer's purse.
- Shruti Goel
DoMS, IIT Roorkee
goelshruti2008@gmail.com
 Page 21
CRICKET AND BIZZ OF BRANDS
यादें
Perspective Chlorophyll Qutopia Elite Talks
 CRICKET AND BIZZ OF BRANDS
यादें
Page 22
Perspective
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Qutopia
Elite Talks

- Lalit Bari

DoMS, IIT Roorkee

lkbari@gmail.com
 QUTOPIA - 15
Page 23

It‘s Exquizite, Kills your Quriosity and adds to your Quizdom. Need we say
more? ‗Qutopia‘ – A Utopia of the best Biz Quiz Tidbits to wreck your brains!
Rush in yo u r a n s we r s to d o m i na ti o n. d o m s . i i tr @g m a i l . c o m,
rajneeshkumar3@yahoo.co.in before 30th April, 2011. The winner will have their
Perspective

names published in the next issue. Also, person getting the highest score in the
current quarter (April—June 2011) will get a gift voucher. Answers in the next
issue of DoMination.

Section A
(1 Point for each correct answer)
Chlorophyll

1. Name this famous entrepreneur who is a Harvard

college drop-out?

2. Vodafone recently announced that it would buyout 33% stake of Essar group in its Indian
Joint venture with Essar Group. What is the amount that Vodafone will pay for the buyout?
Qutopia

3. India recently won the ICC cricket World Cup. What was the prize money that the Indian
Team won for lifting the Cup?

4. This is the largest private philanthropy foundation based out of Seattle, Washington, USA
has the primary aim of enhancing healthcare and reducing extreme poverty across the world.
Elite Talks

What is the name of this foundation whose trustees were recently in India to promote their
cause?

5. Complete the sequence:

Perfect Competition: Monopolistic: _____________: Monopoly ?

6. He was born at Titlagargh in Orissa, currenlty Advisor to the Prime Minister of India
on public Information Infrastructure & Innovation and is considered as the father of
the Telecom Revolution in India. Name this famous personality who has also served
as the chairman of the National Knowledge Commission?
 QUTOPIA - 15
Page 24

Section B
(2 Points for each correct answer)
Perspective

1. Name this co-founder & CEO of a major enterprise

software company?

2. This is a historic building at Homi Mody Street Mumbai & is the headquarter of India's largest busi-
ness colgomorate having interests from salt to software. Name this iconic structure designed by archi-
Chlorophyll

tect George Wittet in 1924?

3. This is the system extensively used by Harshad Mehta in the securities Scam of 1992 in which he is
alleged to have siphoned funds from the inter-bank transections & invest it in shares on the BSE.
What is this indigenous forward contract better known has which has since been replaced by the the
futures exchange?

4. If Life Insurance Corporation of India (LIC) has to get itself listed on Bombay stock exchange through
an IPO offer, it has to first change its status? What is the primary change that needs to be done for LIC
to go public?
Qutopia

Answers to Qutopia 14

1. R. K. Shanmukham Chetty (1892–1953)

2. Morarji Desai who presented the Budget for a total of 8-times.

3. P. Chidambaram was the Minster of State in the Ministry of Commerce in 1991.

Elite Talks

4. Pranab Mukherjee presented his first Union Budget as finance Minister in 1982 under Mrs
Indra Gandhi‘s rule.

5. Income Tax exemption has been raised from 1.6 lakhs to 1.8 Lakhs for 2011-12

6. Proposed FDI limit Insurance is 49% from the current 26% limit.

Winner: - Rajneesh Kumar

Anuj Gandhi (DoMS, IIT Roorkee: 2009—2011 Batch)
DoMS, IIT Roorkee
rajneeshkumar3@yahoo.co.in
 ELITE– TALKS
KC Jani, Executive Director, IDBI
Perspective
Q 1.What is your perception of human
Resources at IDBI?
The human resources of an organization
include both performers and non per-
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formers. Since every individual has both
positive and negative points we should
accept the non performers and I strictly
believe in uplifting the non performers.
The need is to identify the non perform-
ers and providing them with customized
training. This will help the organizations
to deal with the problem of attrition and
retain the talent.
Qutopia
Q2. What are the current challenges for
the organizations in the field of HR?
According to me the most critical prob-
lem organizations are facing today is the
leadership crisis. There is large vacuum
Elite Talks
at the top. I emphasize upon the role of
succession planning in creating future
leaders. The leaders of the organization
should take the lead in making this en-
deavor a success. IDBI also runs a train-
ing institute in Hyderabad where future
leaders are created to take the baton for-
ward through various leadership devel-
opment programs. Two kinds of training
are given to the employees of IDBI, one is
in their work area and the other in atti-
tude, communication, personality devel-
Page 25
Interview with
opment and organizational develop-
ment.
Q3. Where do you feel academic research
in HR is lacking to address the practical
issues of industry?
According to me there is a thin line between
behavioral and psychological research, re-
searchers often indulge in dealing with the
psychological and traditionally accepted
concepts and theories. While the need is to
take into account the behavioural, contex-
tual and contemporary issues by providing
the psychological support for the same.
Q4 Do you think that the large foreign
banks with new technologies have put a
challenge to Indian public sector banks?
No doubt the foreign banks have techno-
logical advantage but the public sector
banks in India have robust systems and pro-
cedures and this is the reason that economic
recession could not affect India much. . The
deep trust of our customers played a signifi-
cant role in coming out of recession. The
socio economic philosophy of India puts a
limit on the use of technology and restricts
too much mechanization.
 ELITE– TALKS
Q5. What is the reason behind your suc-
cessful 31 years tenure at IDBI?
I often see the young generation picking
Perspective
up a wrong career in the beginning of
their professional life and after 6 or 7
years realizing the same. One should look
at one‘s personality and other characteris-
tics and accordingly choose the career.
Earlier I landed up in wrong job as an en-
gineer with a manufacturing firm. But
later I realized I am an extrovert and love
to deal with people and this profession
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was not matching my personality. So I
switched to banking sector and I am in
the same profession for the last 31yrs.
This has made me to give my heart and
soul to my work. This has definitely
paved the roots to my success, as I could
deliver what I wanted and could enjoy
every small or big achievement.
Qutopia
Q6 Tell us something about your life at
IIM Ahmadabad.
Those were the best days of life. I used to
spend almost 4 hours a day in library
reading the books of my choice. I consider
books as my best friends. I used to read
Elite Talks
books from a wide range of disciplines
like management, religion, philosophy,
psychology and many more. That is why I
am comfortable talking to people of all
age groups be it group of youngsters like
you or people in their 60s or above.
Q7. Being the head of BPR/change man-
agement at IDBI how do you manage the
change at IDBI?
Page 26
The change starts right from you. You
should find out your weak areas and try to
improve upon them. I as an individual
welcome changes in my personal and pro-
fessional life. My philosophy remains the
same for all individuals who are part of the
system. The change is always painful but
people must be convinced that the change is
for their own and organizational betterment
and it is always a win-win situation for both
the individuals and organizations.
Q8. As a large number of foreign banks
have established themselves in India what
is the scope for Indian banks to go global?
I believe that it is good to look for potential
markets and India is definitely having that
good potential. As India has large popula-
tion of middle class people the prospects for
banking are enormous. As the banking sys-
tem of Britain and Europe has already col-
lapsed there is not much scope. IDBI has its
branches in Muscat, Kenya and Uganda.
ICICI bank, SBI and Bank of Baroda already
have their presence in China. So its not that
we do not have a global presence but we be-
lieve in the potential of Indian markets.
Q9. At last we would like you to provide a
success mantra for all our readers.
Passion for one‘s work and exhaustive read-
ing are the true mantra for sure shot success.
You should love your work and give your
100% to whatever profession you are into in.
The Team