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Monthly Archives:May 2016

How to use colour palette – DAILY ?

“There is nothing insignificant in the world. It all depends on the point of view.” Johann Wolfgang von Goethe

When I was watching the sunset at the Juhu beach, few others were watching the closed hotel Tulip star from the opposite side, few were watching the sea at Versova and a few others were watching the sea at Bandra side. Everyone had a different angle and the view they were getting from their angel were their view and their reality.

We will see the reality from the place we are standing.  We will make an opinion from the place we stand or places you had stood/known before.

I know about all the other three angles on the beach as I am aware about it. I had experienced these angles before and therefore when someone says he is seeing Versova I would not disagree and insist that I am seeing sun so seeing Versova from Juhu is not a reality.

Our present position coupled with our past experience – it could be our real experience or others’ experiences we have known or learned from or the knowledge we have acquired through the books enable us to make an opinion about anything. Everyone will vary in this. People’s angle, experiences, and learning will vary and so is everyone different in their thinking and action.

Colour palette has a great lesson to offer.

Color plat

All the colours and their sheds are different but all are a reality, no colour is fake or wrong. Everyone, though is different, can be classified as per the angle they are standing at. For example, everyone in BJP is different, but they all can be classified as shades of orange as their broader angle is the same saffron.  Likewise, people who we gel well, though, are different, but can be classified together as on many counts our angles are the same.

The middle class will have the same points of view as most of them are standing at the similar angle or closer to each other. This applies to every group of people. We Indian are very diverse and different, but we are closer to each other than we are closer to the Japanese or Russians. Women collectively will have a diverse angle from men as they view the world from their own angle not a physical standpoint but social or experience angle.

The point is if we wish to change the person having a very different point of view, we have to first understand his point of view and make him understand our point of view. This way we will have a common point of view, this can avoid disputes and  quarrels. This is what political parties do when they announce a common minimum program of alliance partners.

We cannot always agree with extreme points of views and cannot come with a common view every time, but that is fine, but knowing the angle of the other person/team or country will help us how to deal with him/them. But the exchange of angle and point of view’s angle can dilute the bitterness and diminish the gravity of differences.

 “When you really listen to another person from their point of view and reflect back to them that understanding, it’s like giving them emotional oxygen.” Stephen Covey

This angular lesson can be put to use in our personal life to offer superior human experience to others as well as for busbies for better employee and customer experiences.

“If there is any one secret of success, it lies in the ability to get the other person’s point of view and see things from that person’s angle as well as from your own.” Henry Ford

Keep colour palette in your mind to navigate the life without much discord and with peace.

Sunil Gandhi

Bankruptcy Code – Borrowers Beware

Now becoming an NPA is a more serious problem for the borrowers. Earlier plethora of laws governing recovery was used by the borrower to their advantage to delay the process. Thanks to the new law which is coming up soon and approved by both the houses of Parliament.

The message from the bill is clear. Restructure, repay or wind up.

Where any corporate debtor commits a default, a financial creditor, an operational creditor or the corporate debtor itself may initiate corporate insolvency resolution process in respect of such corporate debtor.

  1. The adjudicating authority shall, within 2 days will accept or reject the application.
  2. The adjudicating authority shall, within two days of accepting the application communicate the order to creditor and debtor.
  3. If within 10 days of the receipt of the above notice debtor fails to pay or indicate dispute, the creditor may file the application for insolvency process for the debtor.
  4. Corporate insolvency process will start from the day of admission of the above application.

The entire insolvency and recovery process shall be completed within 180 days, with one extension of up to 90 days in exceptional cases.

There will be fast-track insolvency resolution process also. This is for  special category of creditors, mainly smaller creditors and the process will be completed with 90 days.

There is also a voluntary liquidation process. A corporate person registered as a company shall meet the following conditions:

(a) a declaration from a majority of the directors of the company verified by an affidavit stating that –

(i) they have made a full inquiry into the affairs of the company and they have formed an opinion that either the company has no debt or that it will be able to pay its debts in full from the proceeds of assets sold in the voluntary liquidation; and

(ii) the company is not being liquidated to defraud any person;

There will be a new breed of professionals like Interim resolution professional, Resolution professional, Insolvency professional. These professionals will have various rights and duties in the entire process.

The proceeds from the sale of the liquidation trust assets shall be distributed in the following order of priority and within such period as may be specified:

(a) the insolvency resolution process costs and the liquidation costs paid in full;

(b) the following debts which shall rank equally between and among the following :-

(i) debts owed to a secured creditor in the event such secured creditor has relinquished security in the manner set out in section 53; and

(ii) workmen’s dues for the period of three months before the liquidation commencement date;

(c) wages and any unpaid dues owed to employees other than workmen for the period of three months before the liquidation commencement date;

(d) the following classes of creditors shall be paid equally between and among the following :-

(i) financial debts owed to unsecured creditors; and

(ii) workmen’s dues in respect of the period of nine months beginning from twelve months before the liquidation commencement date and ending three months before the liquidation commencement date;

(e) the following dues rank equally between and among the following :-

(i) any amount due to the State Government and the Central Government in respect of the whole or any part of the period of two years before the liquidation commencement date;

(ii) debts owed to a secured creditor for any amount unpaid following the enforcement of security interest;

(f) any remaining debts;

(g) preference shareholders, if any; and

(h) equity shareholders or partners, as the case may be.

There is a separate insolvency mechanism for individual and partnership firms. For individuals, some of their personal assets are excluded from the process. These are;

(a) unencumbered tools, books, vehicles and other equipment as are necessary to the debtor or bankrupt for his personal use or for the purpose of his employment, business or vocation,

(b) unencumbered, furniture, household equipment and provisions as are necessary for satisfying the basic domestic needs of the bankrupt and his immediate family;

(c) any unencumbered personal ornaments of the debtor or his immediate family which cannot be parted with, in accordance with religious usage;

(d) any unencumbered life insurance policy or pension plan taken in the name of debtor or his immediate family; and

(e) an unencumbered single dwelling unit owned by the debtor of such value as may be prescribed;

For smaller debtors there is a mechanism called Fresh Start Process. Here smaller debtor who cannot pay his creditor can apply under this provision.

There will be suitable changes in the Company’s Act. SICA, Limited Liability Partnership Act, SARFAESI, Recovery of Debt Due to Banks and Financial Institution Act and Partnership Act.

This single Act will simplify the entire insolvency and bankruptcy process in the country. Lenders /Creditors’ rights will be protected stringently. As per the World Bank report insolvency process in India takes an average 4.3 years as against 8 months in Singapore and one year in Malaysia. Now with this code in India,  this time, will be 9 maximum months. More safety and quicker recovery will boost lending climate in the country and this will also discipline borrowers.

Borrowers beware.

Sunil Gandhi

My First Podcast Interview

Podcast

Sunil Gandhi

Dangerous DEBT

The NPA is a fraction of the problem for Indian banks. They will employ a team of lawyers and / or sell NPA to ARCs to get rid of such accounts. They will get capital from the Govt.

But for entrepreneurs having an NPA, it is the mega problem for them. Their other good accounts will get affected; no one will lend them, they will be at a risk of selling of property mortgaged to the bank. It’s a very stressful situation. Mostly most small NPAs are not willful but ignorant NPAs.

Most entrepreneurs are financially illiterate. They can do good business, but can’t read financial statements. They can’t understand the implication of debt, cash and cash flow.

First draft my next ebook Dangerous DEBTWhat every entrepreneur must know himself is ready. I am looking for a few beta readers who can give me feedback about the book.

Please express your interest by dropping your email ID in response to this post to receive a soft copy of the manuscript.

Thank you.

Sunil Gandhi

Enjoy your weekend with Seth Godin & Tim Ferriss

I spent my day today with Tim Ferriss and Seth Godin.

Yes, it was more than three hours of lessons from these people.

If you want to invest your weekend in a more meaningful way, just click on the links below and hear them out.

Know the difference between a painter and an artist, daily blogging, education in the future and a lot more. He is the author of 18 bestselling books and yes he has not used snooze button since 1977.

Seth Godin at 30 days of Genius Interview (Time 1.02 hour)

In the next, more than two hours of podcast, Tim Ferriss speaks with Mike Rowe.

They spoke about;

  • Secrets of the perfect pitch
  • How Mike flew around the world for free (until he got caught)
  • Why to pursue opportunity instead of passion
  • How being different can help you win in business and life
  • Favourite books, voice-over artists, and much, much more…

Click on the link below and listen

“Just because you love something doesn’t mean you can’t suck at it.” – Mike Rowe (Time : 2.21 hours)

Enjoy.

Sunil Gandhi