Career Planning

Following is an email I have written to a friend who is at the crossroads of his life and facing a "quarter-life" crisis [as opposed to mid-life crisis]

Hope that something good comes out of this long letter for the chap! :)


Dear Confused Friend,

Its good to see that you have managed to set a timeline for your future after LnT. I am sure most of the people your age will never have done such a thing. Heck, even grampa's like me don't do that sort of stuff! :)

I am sure that the email took more than an hour to type [and around a month to think up]. I am sure all that thinking will help you though. Here are my two cents worth:

1. Do you really want to start your own firm? Are you the kind of person who can get work done out of people? This point is definitely worth thinking about because the gist of your email [as I understand] is that you want to take up higher studies [MS/MBA] with the eventual aim of starting your own business. While owning a business is a swell thing, there are many hurdles in the path to success. The most basic one of them being: you have to pay other people their salary before you can claim your own. I am not going to insult your intelligence by saying that you have not thought of these things. However, I will advise you to delve into the business of owning your business a little more.

2. In today's world, you really don't need an MBA to make it big with your own business. Sure, it looks good on your visiting card and on your company website to write Mr. Such N Such, MBA, Stanford. However, with the passage of time, people [your customers] will be impressed only by the quality of your work and not your high CPI at some obscure course during an MBA education.

3. You need not have experience in "two of the biggest categories" to strike gold. You are expected only to understand the basics of finance and there should be a willingness to learn. What do you & I know about finance and/or accounting? Or consulting for that matter? You cannot have relevant work experience in those fields unless you work for such a firm. Since you are stuck with LnT for another year, why not try and get into the financial aspects of things? Work with Marketing to get a feel of cash flows and project finances. Work with Proposals to get a feel of market prices and how LnT is affected by it. Work with Contract Management to understand how to deal with Govt. of India organizations and learn about indirect taxation. I'd suggest working in at least one of the above dept. to add to your repertoire of skills. [if any!!! :)]

4. Don't disregard whatever you have learnt over the last year [even if it seems trifle to you]. Once you are out in the market for other jobs / starting your own work, you will realize the value of all the Excel / SAP / soft skill knowledge that you gained here. Spruce up your resume by making even mundane work sound exciting. I have no doubt about your conversational skills [you are second only to me! ;)]. A resume can get you an interview with a new employer / client. However, your speaking abilities and quality of work will get you the job.

5. Charity begins at home. Speak to Ms. Mabel Abraham, PGM and get involved in some of the volunteer programmes organized by LnT. I don't know if you can get a certificate for your volunteer work. However, you can and definitely will get references. An US MBA is all about networking and building contacts. So, to them, what people say about you is as important as what your GMAT scores / Chem. Engg. percentages say about you. Americans are known to weigh extra curricular activities more than academic. You've got it made with footer, now go get some volunteer experience.

6. As regards your dilemma over the behemoth vs. start-up company, I've only one suggestion to give: take your time. You've got time on your side - you are just 23. Work with both companies to have a feel of how things run. LnT will have already exposed you to the nuances of running a big business and interacting with people. Working with a small firm as an employee will give you closer control over costs and more personal interaction. Get more interested in the financial aspects of all work you do because eventually, when you have your own business, its all going to be about the money. The sooner you understand the nitty-gritties of finances, the better it will be for your start-up.

7. Its not necessary to get a Post Grad. to start a firm in environmental management / any new field. Starting your own company is all about managing people at the end of the day. You can & will always get people who are smarter than you, more intelligent and more knowledgeable. However, if you have the vision, they will willingly follow you to create riches for both you & themselves.

8. Last but not the least, I have written this information with a larger intended audience in mind. I will be putting this stuff on my blog. [with your name removed of course!] I hope you don't mind. And even if you do, I am going to post it anyway! :)

Regards,

Govindraj S. Umarji

P. S. I never lose an opportunity to get an article for my blog for free! :)

Letter to HR

This is a letter I am contemplating sending to the VP of HR of my company.

Dear Sir,

This is in reference to the "GET Problem" email you will have received from a GET today.

I don't agree to the forum and the means that said GET has used to convey his message to you. However, the message in the email is of pertinence. You will appreciate that Mumbai is a costly place to live in, even for the most affluent of people. For a GET who is earning 15,000 per month [and will probably earn around 18,000 per month after being confirmed] there is no scope for savings / investments. Most of the salary amount will end up in some landlord's bank account and the remainder will serve for daily necessities and miscellany.

I am a PGMT, and considering the fact that I hold a Masters Degree from IIT Bombay, my remuneration is not commensurate with what my classmates are receiving. However, since I like the work I am doing [and also since I have a permanent residence in Mumbai] I see no reason to leave our company. The same may not be true for other new joinees and one really cannot fault them for that.

Our company has introduced a policy of personal bond for retaining "talent" for two years. However, the futility of this will be evident once the current batch of 2007, leaves for greener pastures in 2009. People working here for two years will not serve any purpose. In two years time, we will not be able to recover the time and effort that has been put in the training of a GET.

In the ten months or so that I have spent in our company, I have seen some hard-working and intelligent team members leave. Some have left for higher education, some for higher pay packets and some for convenience. These people could have been retained and their loss is being felt in their respective SBUs. Ready-made replacements will not be available and the additional lag phase while the new joinees acclimatize to our company may turn out to be crucial. Our company is involved in time critical projects. A matter of few days can make a huge impact on our bottom-lines.

I am writing to you with the intention of sharing my thoughts with you. I am sure that you are already aware of these "problems" and have taken measures to counter this. Its just that I feel that these efforts are not being showcased properly. Some more work in this direction is warranted in light of the discontent.

Keeping a person on a bond for two years is not the solution to our problem.

Regards,

Govindraj S. Umarji

Quotas in IIT-IIM and Salaries

Following is a letter I wrote to the Editor of DNA after reading an article on salaries in IITs and IIMs and the so-called inequality based on caste.

Original article can be found here:
http://www.dnaindia.com/report.asp?newsid=1173139

Below is my letter to Editor, DNA India

Dear Sir,

This is in reference to your article in DNA on the 24th of June, 2008 titled "For SC/STs, quotas are route to inequality at IITs, IIMs"

The report claims to question the quota system, yet it is nothing but an attempt to stoke the quota vs. no quota debates raging all over the nation. As per the article, the RTI act was used to source this information. While the use of the RTI for such a report is commendable, one really wonders about the motives for the same. In representing and comparing the average salaries of general category and reserved category students, you have painted a picture which sends out the following message: general category and reserved category students have different placements in IITs/IIMs. Nothing could be further from the truth.

IITs/IIMs have a very fair and judicious system of placement for students, wherein companies coming to the campus for interviews are allowed to set their own standards in terms of students they want. eg. Company A visiting the IIT Bombay campus for placements might require students having a CPI over 6.0 [which is equivalent to a First Class in other universities, and is a fairly common requirement] Similarly, companies visiting campuses of other IITs and IIMs will follow this routine or slight deviations.

The article however sends out a false message that there is a differentiation on the basis of caste in IITs/IIMs when it comes to placement of students. This is a totally false and baseless claim.

In addition to this, the article does not mention the number of drop-outs every year from the general category. Why limit the article to information about drop-outs only from reserved category students? Why not include your "RTI" data to show general category drop-out numbers? Each and every technical college has drop-outs from all sorts of backgrounds and the reasons for people dropping out are varied and not limited to incapability for technical education. Some students realize that they have different interests and hence choose this way out.

Again, coming back to the salary issue. The article points out the discrepancy between salaries received by all and sundry. Since the peak salary is 70lakhs and the average salary is 15lakhs, it means there are sufficient number of people who are getting a salary below 15lakhs. Why not publish that data?

A very poorly written article, which does not even pretend to be a "non-sensationalist" headline. I expect better from a national daily.

Regards,

Govindraj S. Umarji

Oil Companies - Best / Worst of Times

This is a letter I wrote to the Editor of The Indian Express after reading Mr. Vikram Mehta [Chairman, Shell Group of Companies, India] in which he claims that private oil companies all across the world are at cross-roads of the best and the worst of times. The article can be found here: http://www.indianexpress.com/story/305822.html

Dear Sir,

This is in reference to the OP-ED article Two stories of oil by Mr. Vikram Mehta.

The author is trying to build a case for oil companies by saying that they [oil companies] are facing hardships in the current market scenario. This could not be any farther from the truth. Consider the following points:

1. Although oil prices are increasing [due to lowered availability and increased demand] there is increasing research in the fields of fossil fuel recovery. Fossil fuels these days are being recovered from sources which were "economically unviable" till a few years ago. This is because of the increased demand of petroleum products.

2. There is lack of sufficient funding in the renewable energy sector and hence a major ground-breaking, fossil fuel industry shaking invention is nowhere on the horizon. That the world has slowly begun to take notice of the ill-effects of fossil fuel utilization is thanks to the relentless efforts of environmentalists all over the world. Yet, given the proliferation of the fossil fuels, acceptance of renewable energy is still low and is likely to remain that way in the near future.

3. Oil companies express concerns over global warming and depleting natural resources cause them sleepless nights and furrowed brows. Yet, barring a few exceptions, how often do we see oil companies sponsoring research in the renewable sector? It might be worthwhile for all oil companies to start a future fund for renewable sources of energy. That way, they will ensure a "sustainable" business for themselves and also cleaner environment for future generations.

I find it hard to agree with the author's assertion that oil companies are facing the hardest of times. They are in the best of times and stand to face better times if they decide to invest in the future.

Regards,

Govindraj Umarji

Indian Institutes of Technology and Engineers

This comment is a response to an article which I read here:
http://helloji.wordpress.com/2008/03/05/iit-insufferable-indian-tribe/

(quote) engineering by definition is mediocre science at best. Try to come up with a name of a great engineer and you will see how far short it falls from a great mind (end quote)

Whoa! Hold your horses, my dear friend. I am not against you taking a swipe at my "tribe". In fact, the very fact that someone is taking out time to write about us is proof enough that we possess qualities which are worth writing about! :)

Till such a time as you are speaking about IITians [IITans, whichever way you spell it, it harldy matters] and making generalizations left, right and centre under the pretext of humour [correct, UK english spelling] you are treading a well trodden path. But the moment you make a demeaning statement about engineering, you are showing the hollowness of your thinking and the limited capability of your brain to process information fed to it.

Consider this: the very PC/laptop that you are using to rant about IITians was created by an Engineer. The Internet, which you are using to spread the ramblings of your "jaded" mind [nice name, very fitting] is likewise. Consider all the good things in life: a house to live in, quicker travelling, availability of medicines, ability to communicate over large distances, et al., and you will realize that there is an engineer responsible for it and proud of it. What you don't realize, and probably your own "inflated" ego prevents you from doing so, is that engineers contribute to society as much as any chartered accountant, medical professional, airline pilot, sea diver, army man, etc. does.

You might have apologized for this statement of yours. I see that some people have already made references to this. It's alright even if you don't apologize though. We, as engineers, are content with the satisfaction we derive from the utility of our creations. After all, it takes a lot of creativity and effort [which this post could have used] to convert an idea into a practically usable item.

I see that your post is quite popular, and you might take a moment to reflect that many posts are by IITians. This might suggest that we have a lot of time on our hands! :)
But then, that also means either that we can find time to write/comment on things that matter to us or we are so financially well off that we don't have to slog like mere mortals do!

Arsenal achievements (unparalleled)

21st February, 2006 - First English team to defeat Real Madrid at the Estadio Bernebeau

04th March, 2008 - First English team to defeat AC Milan at the San Siro

The Frail Human

There is a story about Yudhishthira, of Mahabharata fame. When asked what is the most beautiful thing on this planet, he says it is “Maya”, which is the magic that keeps the world running. Everyone knows that death is inevitable, yet the will and desperation to live is so intense that each person thinks that s/he is invincible. That bad things can happen only to other people and not to them and their near and dear ones. And then one fine day, the bubble bursts…

The frail nature of the human flesh was revealed to me just yesterday, in quite a grotesque way. On the way to my office, I came across a traffic jam. Initially the source of traffic jam was not apparent. However, as the vehicles on the road inched forward, the reason became evident. There were police men visible, not traffic police, but regular police. And they were directing the traffic. That can only mean one thing: an accident further up the road.

An accident it was and it was not a sight for the squeamish. The body of the deceased was covered with a white cloth. However, the reason for the death was evident from the mess that lay around the body. Suffice to say, that the person driving a motorcycle (for the last time) was not wearing a helmet. My estimate is that the bike slipped and …

This incident lead me to think about the frailty of the human body. A severe blow to certain sections of the head, or a pin-prick, strategically executed. And life is converted to after-life. In the everlasting battle of life and death, eventually death does triumph. Every day, life does its best to come out tops. Life gives small victories which lead the living to believe in invincibility. And yet, therein lies life’s biggest paradox: the longer you live, the greater your probability of dying with every passing day.

I am sure the person who never made it to office/home yesterday did not know that it was not meant to be for him to reach his destination. I am sure he never thought about it. Neither does anyone of us when we are performing everyday activities, such as crossing the road, boarding a train, switching on an electric appliance. All these activities have the potential to be life threatening. Yet the living remain oblivious of them.

And that is exactly what Maya is: the living wish to live indefinitely, though death is the constant force surrounding them.

/Radgovin

Safe Haven

Safe Haven

"I told them, I know who planted bombs in the train!" exclaimed Rahul to the crowd, which was watching him with glazed eyes and unwavering awe.

"I went on to describe them. One had orangeish hair, with a scar down his cheek. The second guy had pink hair. He had grotesquely coloured blue-red eyes. The third was a female, or so she seemed to me, and she was wearing no clothes!"

Silence in the gathering.

"Its amazing, isn't it? But their response was more incredible. 'Are you crazy, you lunatic?' they said"

A few appreciative chuckles ruffled through the gathering.

"You are certifiably crazy, one of them said. I denied that. I told them I was not drunk. Their tests confirmed that. They took me to a shrink, where I repeated my story and also rattled off my other heroic; how I saved the world from drowning by drinking a lot of the flood waters from that gutter of a river"

Clapping from the assembly.

"That's how I ended up here" finished Rahul, pointing towards the seven storied building housing the mental asylum.

Later, Rahul was joined by another person of similar standing, Rohit.
"You love blabbering, don't you? However, I wish you'd stop that. I fear, one day, they are going to realize our game and chuck us out of this safe haven"

"Safe haven is right. Where else in this city can you get free food, clean clothes, and good medical care? Better live a secure life in an asylum than as a destitute roaming the unsafe streets of the metropolis" said Rahul.

"What if they catch onto us?"

"Who cares? I am sure both of us can cook up another tall story to come back to this particular tall story!" said Rahul, again pointing towards the aslyum building.

[This story has been submitted for consideration in the Flash Fiction contest being conducted by Caferati as part of the Kala Ghoda Festival. More details can be found here: http://caferati.blogspot.com/]

Finance Basics

Everyone can do with understanding the basics of Finance. Same is applicable for me too! :)

Sr. No.	Term	Meaning
1	Liquidity Ratio	It shows the ability of a firm to pay its short term debts as they mature
2	Current Ratio	Current Assets / Current Liabilities
3	Quick Ratio (Acid-test)	Quick assets / Current Liabilities where, quick assets = current assets - inventory
4	Profitability Ratio	It is used to measure a firm's efficiency & ability to generate profits
5	Gross Profit margin	Gross profit / Sales
6	Net Profit margin	Net Profit (PAT) / Sales
7	Ownership Ratio	This helps to analyze the present and future investments in a firm & to compare the investments with factors such as Debt, Earnings, Dividends & Stock price
8	Return on Equity or Net Worth (RONW)	RONW = Net Profit / Avg. Equity
9	Earnings Per Share (EPS)	EPS = Net profit / No. of shares outstanding
10	Price Earnings Ratio (P/E)	P/E = Market price of shares / EPS
11	Debt Equity Ratio	Total debt / Total Equity
12	Debt Service Coverage Ratio	(PAT + Depreciation + Non cash expenses + interest on loans) / (interest on loans + Repayments)
13	Average Net Funds Employed (ANFE)	ANFE = Average Net Working Capital + Average Net Fixed Assets
14	Return On Capital Employed (ROCE)	ROCE = (PBIT - TAX) / ANFE
15	Economic Value Added (EVA)	EVA = (ROCE - WACC) x ANFE

For further reading: http://www.dsm.com/en_US/html/invest/glossary.htm