The CA advantage over other professions at workplace

On my first day of training at Haribhakti & Co, the Partner overseeing me, while discussing the value of the CA curriculum, mentioned an interesting aspect. He said that even the junior most articled trainee is treated with respect and caution  by the senior client staff. Requests are complied with promptly. This point was NOT made for recommending power politics but to emphasize that when all the company records are open to a CA firm, there is very little to hide after that. Even consultants need to seek data specifically from client and generally do not get an open ID access like the CA firm does.

A trained person can diagnose issues with the 'professional view' and then use it to cross sell services across the board. A CA knows both sides-how data is gathered/audited..and how it is used. That makes it easier to know what to ask and whom to ask. In information intensive professions like internal auditing, management accounting and even operations consulting, such an edge can often prove vital

WHOSE costs and WHOSE benefits_cost benefit analysis in IFRS

Whether it be Microeconomics, Financial Management or Cost Management, the uniform message drilled into the student is 'Take the decision if relevant benefits> relevant costs'. It is phrased as per the subject

• In Economics, we want MR>=MC
• In Financial management, we want NPV>=0
• And in cost management, the tool used is Contribution

Of course, the caveat explained in all subjects is 'qualitative factors'. This would typically include political scenario(does your boss support it/ effect on your bonus etc). The issue here is the classical economic problem if externalities as social costs and benefits are not captured in the conventional analysis from the firm's view point. This is solved partly by taxes, permits, licenses which impose some costs to solve these issues.

The IFRS framework contains a cost benefit analysis for applying IFRS. It states that if the benefits to users does not exceed the cost to preparers, the entity need not use IFRS. The issue here is that the preparer will tend to understate the user's benefits. That is why the independent auditor generally takes the last call on 'such materiality issues'.

Not in my backyard

This phrase means usually that a person who supports a cause purportedly in public interest backs out when it affects him. This is also hypocracy. We have many examples to support the same.


Take the issue of stray dogs. This is a suburban problem but which is rare in the City. Hence we have a lot of South Mumbai animal lovers and NGO's campaigning and even filing writ petitions in the High Court(s) to protect animal rights. From an ethical stance(that all life is entitled to exist/ slippery slope arguement that will we stop at dogs or go to humans etc), they are probably correct. What fails me however, is that in SoBo(South Mumbai), there are virtually no stray dogs.Once people listen to the melody of the barks and fights, they may soon change their minds.

Another is patriotic causes like fighting corruption, standing up for the weak or joining the army/low paying Civil Service jobs. We pay lipservice but how many of us really would like a hazardous low paying army job even for prestige?

I can go on and on but the point is clear. Unless we think in the larger good atleast sometimes, nothing will happen.

THEN(Is it so)-NOW(What is the probability it is so)

The above line; in the preface to "A First Course in probability"-6th edn by Sheldon Ross; got me thinking. When even light has dual nature(particle/wave), where we are not certain about the exact location of sub atomic particles(Heinsenburg's uncertainity principle), then how can we be certain about much less exact things?

Schools, Colleges and some extent work teach us that there is only 1 right thing. But where even "established theories" in any area(economics, finance, law, astronomy) get refuted, should we be so blaise about insisting on only 1 thing?

This no doubt helps standardization but does it really serve the objective? Instead of having 1 number, we should take a probability weighted number for that or better still, present the distribution instead of the number.

Back after a 3 yr hiatus

It feels good to be writing again on virtually anything under the sun. But that is what "Musings are for". I resolve to:-
(i)Post atleast once a week
(ii)Revise posts in case of new data/errors

Are we responsible for the spread of beggars?

You can't miss them. Whether in rags, or ochre robes outside temples, or with a bowl, or with a car cleaning cloth at traffic signals, they are omnipresent. We usually ignore them- or at best drop a 50p/ 1 Re coin. Do we ever think of what happens after that?

Madhur Bhandarkar's movie " Traffic Signal" has potrayed the nexus between the underworld and the beggar mafia. These people even go to the extent of maiming children to graduate them into the begging industry. Besides, we have able bodied beggars who still prefer this work to sweating out a living.

Some of you may feel- so what- that's only a buck. Poor fellow can hardly live. What we forget is some of these poor fellows have bulging bank balances and posh houses, as per a Mumbai Mirror expose.

My views are that giving books to kids or food to beggars is OK, but not cash in any form. That may go to the mafia, or even worse- to buy drugs.

So, you feel India's No.1 job is of an IIT/IIM grad? Read this Orkut expose!!

Salary & Govt. Concessions for a Member of Parliament (MP)

Monthly Salary : 12,000

Expense for Constitution per month : 10,000

Office expenditure per month : 14,000

Traveling concession (Rs. 8 per km) : 48,000 ( eg.For a visit from kerala to Delhi & return: 6000 km)

Daily DA TA during parliament meets : 500

Charge for 1 class (A/C) in train : Free (For any number of times) (All over India)

Charge for Business Class in flights : Free for 40 trips / year (With wife or P.A.)

Rent for MP hostel at Delhi : Free

Electricity costs at home : Free up to 50,000 units

Local phone call charge : Free up to 1,70,000 calls.

TOTAL expense for a MP per year : 32,00,000

TOTAL expense for 5 years : 1,60,00,000

For 534 MPs, the expense for 5 years : 8,54,40,00,000 (nearly 855 cores)

And they are elected by THE PEOPLE OF INDIA, by the largest democratic . process in the world, not intruded into the parliament on their own or by any qualification. This is how all our tax money is been swallowed and price hike on our regular commodities.......

What people say- and what they really mean.

Phrase/ word Meaning Example
Consultant- Agent -Real estate consultant
unemployed- Freelance consultant
Backward- In namsake- Backward caste
Public interest -My interest- File notings in RTI not disclosed due to public interest
national benefit- Helps votebank- Slum rehabilitation helps nation
Social Justice -Injustice otherwise- Reservations are for social justice
Public servant -who takes tips -Ministers are public servants
Restructuring -Sack people -Corporate restructuring
Rationalisation- Reduce -Rationalisation of taxes. staff
Service charges- Bribes/ Loot- Service charges in hotel bills
Revision -Hike- Revision of tariffs
People -Me -Walmart's entry/ cheap imports affects people Premium Costly Premium quality
Empowerment -for the camera- Companies want to empower their employees
detention: arrest
adult entertainment: porn
mature: old
senior: old
correction: Abroad, this means the jails Dept!
dental cream: Means paste
Quiz: In foreign text books, means question bank
assessment: Exam

Certain loaded words used often

Open any national daily( apart from the TOI- more on that later) and you invariably see coverage of certain socio-economic- political issues like inflation. poverty, SEZ, reservations, criminalisation of politics, black money etc- this list could fill an whole blog. While the coverage itself is mostly unbiased, what is a burning concern is WORDS. Yes, you read that right.

We read words like "worker", " backward" " small" " justice" " freedom" " poor" all twisted out of context. Who would imagine for example that for BPL purposes, poverty is about Rs 25000/ year, but for creamy layer of OBC reservation- it is Rs 2,50,000/ year.

Similarly, people who have never done a day's honest labour in their lives- like social workers and politicians- claim to represent the working class. My question is- Who is a worker? A daily wage person or an IIT/IIM salaried employee?

Similarly, " social justice" is often used to justify reservations. This misses out the point that not only those who were oppressed by caste system ( like SC's) get reservations, but also those who did not suffer that stigma do so- like ST's/ OBC's etc.

Also, to justify public display of affection/ porn like movies, people say that freedom is must. Yes, "freedom" is OK, as long as it does not affect freedom of other people to have uncontaminated minds.

As far as " small goes'" , the local kiranawala opposes Wal- Mart as he says that they will gobble him up. But so what? These small shop keepers evade income tax, and mostly do not pass on the service tax/ VAT they collect from customers. That is unjust enrichment, which perpetuates the poor-rich divide. Also, the income of these "small" vendors is inflation prone- unlike salaried income.

So, to allow atleast an informed debate on these issues- let us clarify the meaning of words used in a certain context. It would throw up some surprises.

It is a dog's life

Our FM's recent budget gives import subsidy on dog food and has sparked a lot of good natured(and some bad natured) ribaldy that the FM cared more for dogs/cats than for the common man. One of our better known MP's has been quoted to say that 'yeh kutta billi ka budget hai'. The Mumbai HC recently advised societies to adopt a stray dog each- for security reasons!. With this much of news prominence, though this country is not going to the dogs(or cats!) as yet, a dog is still quite lucky.

If it is born to a pet, it is gifted away or sold to happy recipent families. If it is born on the streets, then also it lives. Some members of our nation love to feed our stray canine friends daily- even if there are more pressing matters elsewhere. Many South Mumbai residents consider it a badge of pride to be an 'animal lover', and indulge in armchair criticizm of the dog control measures. They mind paying parking, suffering load shedding and consider themselves above the rest of us, but have no hesitation to condemn their suburban Mumbaikars to a dog's life of barking noise, bite, droppings and fear. Dogs nowadays get moved down less often then people sleeping on the pavements. So, Man's best friend does have it good nowadays.

Unity is strength- but for whom?

This week will see the Bank officers and employees strike as usual, to avail of the long extended weekends/ successive holidays. The Govt will as usual condone it and sanction them bonuses and hike their DA, while the customer watches helplessly.

The power behind these strikes is the union(s) which every now and then need to flex their muscles. After all, their importance is realised then. The unions which were set up for a noble cause of 'promoting worker's unity and cordial employer-employee relationships' have only partly achieved their goal. They have ensured pay-but not performance. Bonus-but not dedication.
Gandhi and other proponents of the unions would surely be turning in their grave if they saw the present state of affairs- where people like Datta Samant use the workers as a cats paw tp achieve their political ends.

Today's DNA has an interesting article on unionisation in Kerala- where even debt collectors and private sector bank employees- have formed their own unions. Closer home, we have the Central Railway SC/ST employeed union!. I can understand organisation based unions but caste based unions!. Anyway, this is why the industries choose to produce/ manufacture in Baddi and Vapi where contract labour relieves their employee headache. Here of course, the loser is the contact labourer who gets underpaid- but then, why would the Mumbai unions care?