as I see it

My journey started with Delhi -> Shimla and from there on to Jwalaji -> Khundiya -> Era and in between Kangra -> Dharamsala. Well some of the places I mentioned above are remote but all of them are in Himachal :)

Its a great place, perhaps the best tourist destination in India. Amongst all of them, I think Dharamsala is the best. Below are some pictures from my trip so far :)

What all I see around me these days, have only seen them in wallpapers so far :D

क़ानून जितना पेचीदा कोई विषय हो ही नही सकता। यह पोस्ट हिन्दी में लिखने का मन् हुआ इसलिए गूगल ट्रांस्लितेरेशन का लाभ उठा रहा हूँ। हाँ तो मैं कह रहा था कि क़ानून एक बहुत ही पेचीदा विषय है। यह Financial Management जितना कठिन तो नहीं है पर इसमे शब्दों का प्रयोग जिस प्रकार से किया जाता है, यह विषय अत्यधिक कठिन बन जाता है। यह पोस्ट लिखने कि वजह भी मेरे End Terms के दौरान की गई पढ़ाई है।

उदाहरण के तौर पे Company Act में दी गई Company की परिभाषा ही ले लीजिये

"company" means a company formed and registered under the Company Act

इस परिभाषा से किसी को क्या और कितना समझ आता है? ऐसे ही अन्य उदाहरण मैंने अपने End Terms की तैयारी के दौरान देखे।

पर एक बात जो काबिल-ऐ-तारीफ़ है जिसे मैंने और मेरे बंधुओ ने बहुत सराहा है कि यह जिन्होंने भी क़ानून लिखा होगा उन्होंने कितना सोचा होगा, कितने समय के लिए सोचा होगा और क्या क्या सोचा होगा। कितना विशाल है यह क़ानून।

यह ही नही बल्कि मुझे तो यह तक प्रतीत होने लगा है कि क्योकि कानून की भाषा इतनी उलझी हुई लगती है, इसमे loopholes ढूंढ के उन्हें exploit किया जाता होगा.

जब भी मैं कोई अंश अपनी पुस्तक से पढ़ता था, एक समझ मेरे दिमाग में बैठ जाती थी। पर कुछ ही क्षणों में जब उस पढ़े हुए अंश का उदाहरण पढ़ता था तो सब गुड़ गोबर हो जाता था। वो उदाहरण text से बिल्कुल contradictory व्यतीत होता था।

कभी कभी तो पहली पंक्ति और बिल्कुल अगली पंक्ति ही contradictory लगती थी और शायद थी भी।

मुझे अभी तक promissory note, bills of exchange और cheque वाले section में payable to bearer, payable on demand, payable to bearer on demand, payable at sight, payable at presentment के बीच में अन्तर नही समझ आया।

घोर असमंजस।

एक और उदाहरण है public company की परिभाषा।

public company is any company which is not a private company

अरे मानुष यह तो हमें भी पता है। इसमे आपने ऐसा क्या बता दिया जिससे क्रांति आ जाए?

एक और मिसाल betting की लेते हैं। betting क़ानून के ख़िलाफ़ है पर horse race को मान्यता प्राप्त है।

Contingency contract और उससे related कुछ, betting और wagery में कुछ कुछ, सब इतना confusing है कि अब याद भी नही है।

ऐसा नही है कि यह सब ग़लत हो। बस थोड़ा confusing है और लिखने का ढंग अलग है। जैसे की अब आप director कि परिभाषा को ही लें लें

director includes any person occupying the position of a director by whatever name called.

अब इसका मतलब मुझे समझ आ गया जबकि दिखने में यह भी बहुत अजीब सी परिभाषा है।

चलिए अब यह पोस्ट अपने शिक्षक द्वारा कही गई पंक्ति के साथ ख़त्म करता हूँ।

honesty is the best principle but not the best policy

चलिए अब आज्ञा दीजिये, दोपहर के तीन बज रहे हैं। मैंने कुछ खाया नही है, खाना छोडिये मैंने तो अभी दंत मंजन के दर्शन भी नही किए। लैपटॉप खोला और अचानक से हिन्दी में ब्लॉग पोस्ट लिखने का जी हो उठा।

काफ़ी मज़ा आया हिन्दी में लिखने का। और भी पोस्ट हिन्दी में लिखने कि इच्छा है अब। लिखूंगा कुछ और हिन्दी में। तब तक के लिए अलविदा।

[Note: If you think this post will be complex and that you are not well-versed with terms used in Finance, well I am on the same plane. I know as much as you do or maybe slightlyyyy more. So, don't shy away from reading it for that reason. Read it just for the joy of it and who knows you may get some idea and earn some extra buck.]

The title may be misleading, but it is a disaster, though may be in a different sense of whatever picture you have in your mind.

One of my most dreaded subjects of all times has been Financial Management. Reason? I don't know. I just find it too complex.

While studying for my exams was going through Bonds, Shares, Warrants, Convertibles, Options, etc. I realized that its all gambling !

The theory about which I heard long back, The Bigger Fool theory, seemed cent percent correct. The theory is nothing but the belief held by one who makes a questionable investment, with the assumption that they will be able to sell it later to "a bigger fool"; in other words, buying something not because you believe that it is worth the price, but rather because you believe that you will be able to sell it to someone else for an even better price. (source: Wikipedia)

Why, for instance, do you buy shares of a company? Isn't it only because you believe that the prices will go up from hereon (or someday) and that you will sell it and earn profit.

What is a warrant? The right to buy shares of a company in future at a price decided today ! When you buy a warrant, you will always think that tomorrow the share prices will rise and I will be able to buy it at today's price and earn profit.

Why do you buy a bond? What do you get? You buy say a Rs. 1000 bond today that gives you x% interest every year for 'n' years and then you get back your Rs.1000 as well after 'n' years. Seems like WOW right? You pay Rs. 1000 today, get back Rs. 1000 after 'n' years plus you also get some money everywhere. Would you even like to think for once that things may go sour, your money may go down the drain.

No, because optimism is the way forward :)

What is the concept of Time Value of Money for that matter? In evaluating a deal, you essentially calculate the NET PRESENT VALUE of the future cash flows you will be getting, which is nothing but DISCOUNTING future cash flows by a certain percentage, say R.

Why so?

Because anyone and everyone who has money right now will lend it to you and charge you R% interest, because he is pretty sure that if he hadn't given you the money, he would have used it to EARN more money which he now cannot because you have the money and so he should get some compensation. Ya, right ! Its so damn easy to earn than too lend (you may call it invest).

Though, slightly off-track, the concept of a Leverage Buy Out came to my mind all of a sudden. Now, this one is truly hilarious ! Trust me on this.

Company A wants to buy Company B.

What do you think about this now?

Company A mortgages (or pledges) all assets of company B (company B's assets on which A has no rights!) and raises debt (loans). Now using this money from loans it buys B. So simple.

Tata actually did a Leverage Buy Out of Tetley, that you now have Tata Tetley :)

How interesting and hilarious is this, that you take some company, based somewhere and PLEDGE that company's assets to someone and TAKE A LOAN. Using the money from the loan, you actually end up buying the company, whose assets you pledged. What about the loan now? Ah! thats a loan, you keep on paying installments and waive it off someday.

Besides, it seems loans are the most easiest way of getting money. Every now and then you take a loan and you do something with it, say buy a company's bonds. You may call it investment but it is actually giving out a loan to that company and earning interest.

So, it looks like A takes loan from B, B could give that loan because he had money which he borrowed from C, C in turn had raised debt from D, D had issued bonds which E bought, E got the money to buy bonds by issuing SHARES... and so on....

Its loans and loans, what is the ultimate source I wonder :)

Update : Just recalled the concept of SHORT SELLING, which to my understanding allows you to sell something you don't own and earn profit. Say, there is a share S of company C with price P. Now, even if you don't own this share S, by some logic (to me magic) you can sell this share 'S' at a price P + p (often the short-seller sells it to earn profit so we assume 'p' profit). Here, what he gets is profit 'p' only and not P + p because he didn't own that share worth 'P'. I know its pretty confusing. Am as much confused and amuzed as you are. And ya, now if you think even you want to earn this way, to my knowledge, as things stand today, short selling is not allowed in India.

Post Update : As Gunjan says, short selling is allowed now, toh jao kamao paise sab. And ya he mentioned futures which is nothing but buying or selling something in future at a price fixed today. The one who buys a future hope the price will go up and the one who sells is greedy, and thinks the price will go down.

When I asked how is it different from warrants, he said.

And after a long long time, I am here back again to update my blog so thought of revamping it first. I was bored of the previous look and am not that happy with the current look, but its ok for the time being.

Had something else in mind, that I wanted to write and that too for long, but too many assignments, quizzes and exams kept me lot more busy than I could imagine. Just when I was about to start writing I saw that I hadn't updated my experience of selling Dimdima on Day 3.

I would keep it really short.

It was tiring, we went on door-to-door full on and got all sorts of responses. One of the most interesting responses being

Seemed much like some entrance interview.

Another instance was when one of our prospective customers, though interested in subscribing, found it difficult to trust us. We had a really tough time convincing her and finally did manage to convert prospective to actual customer.

One instance is from one of my friend's experience who also went door to door and at one door while he was 'playing his record about Dimdima', he heard a familiar voice and to his surprise he saw the actor Om Puri coming out. Yes, he gate crashed Om Puri's house unknowingly. He had a great time, the actor called him in, spoke to him for sometime and finally even bought one subscription.

Getting back to my team's results.