a mba august2014

Mumbai | Volume XII | Issue 1

Rs. 100/-Subscriber’s Copy

August 2014

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Advice CATfor the anxious

Advanc’edge MBA October 2012 3

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All rights reserved. Reproduction in whole and in part without written permission is prohibited. Printed and published by Kamlesh Sajnani, on behalf of, IMS Learning Resources Pvt. Ltd., E Block, 6th Floor, NCL Bandra Premises, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051. Printed at Uchitha Graphic Printers Pvt. Ltd., 65, Ideal Ind. Est., Mathuradas Mill Compound, Lower Parel, Mumbai - 13 and published at Mumbai.

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Aditya Prakash IengarEditor

from the

This is hardly the time for felicitations, but I would like to congratulate you, my dear reader, for having come this far. Let’s be honest — the CAT does manage to frighten away many MBA aspirants because of its perceived difficulty. But there are only a couple of months left before you take the CAT, and you’re still at it. That’s the first small hurdle crossed!

Now, we know that the final leg of the CAT journey is upon us. Right now, the average CAT aspirant is taking simulated tests and brushing up on study, and along with that, there are the inevitable anxious questions. “Am I spending enough time studying?” or “Can topics that appear too tough be ignored?” These questions are quite natural, but the anxiety they generate is needlessly distracting. So, this month’s cover story is all about answering those questions and putting your troubled mind to rest.

Another issue I would like to raise here is the perceived difficulty of the CAT. In previous issues of Advanc’edge, we have often stressed that although the CAT isn’t a cakewalk, the perception of its level of difficulty is greatly exaggerated. Knowing your basics, smart problem solving and the right strategy is all it takes to crack the CAT. In this issue, we have covered the Quant section, and supplied you with some standard types of questions you’ll probably face, along with some tips and tricks on problem solving. In the next issue, we shall cover the Verbal portion.

One of my biggest wishes is to watch you attain success in your career, dear reader. But our main journey is only till the time you’re admitted to your dream B-school. After that, the handholding stops and you’re firmly on your way, which ultimately makes up for everything else. So make sure you use those two years at your B-school well, and do keep writing in to us.

“”Dwijendra B. Srivastava

National Manager, Partner Operations, IMS

Fear to fail is the biggest hurdle tosuccess. The fright of drowning is only till

the time you are outside water, take a plunge and you will know how to swim.

05 Cover Story CAT advice: Your questions, our answers

08 MBA Buzz Quant matters: How to tackle CAT’ematics

12 Student Silhouette Sudarrsanan Murali MH-CET 2014: 99.92 percentile

14 News in brief

16 Countdown Top companies to work for

Disclaimer : The views expressed in the articles by contributors and others are not necessarily those of the Publishers, unless specifically stated therein. While no effort is spared in ensuring the accuracy of the information published herein, readers are advised to reconfirm the current facts before acting upon any such information. The Publishers regret their inability to accept responsibility for any inadvertent errors of commission or omission in this issue. Readers are recommended to make appropriate inquiries before incurring expenses or entering into commitments in relation to any advertisement appearing in this publication. The publishers do not vouch for any claims made by the advertisers of any products or services. The Publisher, Printers or Editor shall not be held liable for any consequences in the event of such claims not being honoured by the advertisers. All rights reserved. No part of this publication may be reproduced, in any form or means, or stored in a database or retrieval system without prior permission from the publisher.

Payment to be made by crossed Demand Draft/Cheque drawn in favor of “IMS Learning Resources Pvt. Ltd.” For subscriptions and related enquiries write to: Advanc’edge MBA, IMS Publications, A division of IMS Learning Resources Pvt. Ltd., E Block, 6th Floor, NCL Bandra Premises, Bandra-Kurla Complex, Bandra (E), Mumbai - 400 051.For more queries e-mail: [email protected]

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www.advancedge.comAugust 2014contents

19 Must Reads Drive: The surprising truth about what motivates us Barbarians At The Gate Talent Is Overrated: What really separates world class performers from everybody else

20 Tipping Point 5 ways to ensure you never miss a deadline

21 Corporate World The “Super” Budget 2014-15

25 Budget 2014-15: Sectoral offering

28 Outlook: Banking and Insurance Industry

31 Study Hour Test Q&As

34 Word Dose: Orphans in Axona

36 Globescan

38 SuDoKu

Advanc’edge MBA August 2014

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CAT advice: Your questions, our answers

Advanc’edge Team

he CAT is a behemoth of a test, taken every year by lakhs of students in

an attempt to get into the world of management. This test is probably the biggest hurdle to joining a business school, and naturally,

MBA aspirants are filled with doubts and

questions. “Am I preparing correctly?” “Am

I taking enough mock tests?” “Am I spending enough time every day on my preparation?” These are just some of the anxious queries filling the already stuffed brains of CAT takers. In order to allow test takers

to concentrate c o m p l e t e l y on their

preparation and not get distracted by these anxieties, we have answered some of these burning questions to take the load off the mind.

How many tests should be taken in the last month?Taking about 6 to 8 tests in the last 45 days is recommended. However, far more impor tant than just taking the tests is their

analysis. If you don’t learn from each test before proceeding to the next, there is really no point in taking a large number of them one after another. Try out various strategies for each test — for instance, try dividing your time equally in each section or spending more time on the weaker sections by working quickly in the stronger sections.

Then, after the test, evaluate how you fared. By working in this manner, you can come to understand which strategies are working for you, and which aren’t.

It is also impor tant

As we enter the last three months to the CAT and tension mounts, there are some questions that occur to every student, both first timers and repeat takers. These questions centre around what to do in this last mile to the CAT. We answer some of these in this article.

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to attempt a variety of tests. This is because you may score well in a test that is more suited to your strengths, while it just may turn out that the CAT may carry more questions of the kind you are uncomfor table with. An exposure to a wide range of problems and the rationale behind them will ensure that you are better prepared.

How much time in each day should be spent on studying for the CAT?Ideally, you shouldn’t spend more than four hours a day on studying for the CAT. The manner in which those four hours are utilised depends on every test taker’s individual strengths and weaknesses. Some may prefer to spend more time on the Verbal por tion, while others on Quant. Ultimately, you must ensure that your progress in each section is equal. This holds greater relevance if you are aiming primarily (perhaps even exclusively) for the IIMs, because at these institutes, cut-offs — even sectional ones — matter.

Fur thermore, organise your day in such a way that the hours spent studying are those when your brain is most aler t. Working professionals, for example, shouldn’t study at night after a hard day’s work. On the other hand, if you’re generally more active and aler t during the late hours, perhaps a n i g h t - t i m e study routine would be best suited for you. The fact is that p r e p a r i n g

for a test like the CAT is not at all like preparing for exams in school and college, in which you need to spend long hours memorising the material.

Can topics that appear too tough be ignored?Students usually find topics such as Modern Math tough, but you must remember that Modern Math questions in the CAT are not always tough, nor are Arithmetic questions always easy. Your aim is to maximise your score in all sections, and you can do that by solving all the easy questions. The earlier CATs had a greater number of questions, so you could probably afford to leave out certain topics. But now, with 30 questions to a section and a further division into 1 and 2 mark questions, you cannot afford to leave any questions out. You can’t even assume that the one-mark questions will be easier than the two markers. If you leave out Modern Math entirely, you will have narrowed your selection to only the easy questions

in Arithmetic and Algebra. In such a

scenario, how do you maximise your score?

Tough questions from any topic should be ignored in any case. For example, in one of the IMS practice tests, a student didn’t

answer a question based on playing cards because he felt it involved permutations and combinations. When he looked at the problem later, it turned out to be a simple linear equations question. So, read problems properly before leaving them — they might be sitters.

What exactly should be done while analysing a test?There are two answers to this dilemma — for questions that were attempted, and those that weren’t. For attempted questions• Check whether your mistakes

were silly, careless or conceptual errors.

• Check if there are better ways to solve the questions.

• Were you able to comprehend the problem irrespective of the level of difficulty?

• If the concept is new, learn the

IDEALLY, YOU SHOULDN’T SPEND MORE THAN FOUR

HOURS A DAY ON STUDYING FOR THE CAT.


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concept and move on.• If answered correctly, check theexplanatory answers — wasyour solution the best possibleapproach to theproblem? Should youreally have attemptedthese when, and if,there were easierquestions elsewhere inthe section?Whywereyou attracted to thatparticularquestion?

For un-attempted questions• Solveeachofthem.• Identify which questions couldpotentially have increased yourscore.

• Why did you leave out thequestions?

• Did you even read thesequestions?

Once you have done thisanalysis,youshouldhaveanideaofwhereyouarefaltering.Therefore,pick an area that you need toworkonandspend2to3daysonsolvingeverypossiblequestionofthekindfromthematerialgivento

you (section tests/comprehensivetests), thepreviousyears’papers;also,refertoyourBasicReferenceMaterial.Ifyou’vedonethissecond

rectification step correctly, restassuredthatinthetestsahead,youwill be able to solve any questionrelatingtothetopicyoupicked.

What would be a good test prep strategy for the final leg of preparation?A suggested strategy is to take atestevery4days.IfyoutakeatestonDay1,getintotheanalysismodeforDays2,3and4.Makesureyougetintouchwiththebasicsofyourweak areas in this time period.Beforebeginningatest,ensurethatyouhaveanoveralltargetscoreand sectionaltargetones.

While taking the test, you canmentally slot the questions intothosethatyoucan• Understandandsolve• Cansolvebutwilltaketime• Can’t solve (whatever thereasonmaybe)

By dividing the questions inthis manner, you will be able toprioritiseandplanyourtime.Also,developing this habit in practicetestswill honeyourability topickthe “right” kind of questions. Oneof the main reasons people don’tdowellintestsliketheCATisthatthey get stuck with problems andcan’t move on. If you find thatyou began a problem assumingyou can solve it but can see thatyour attempts aren’t leading youto the answer, let it go andmoveontothenext.Youalreadyhaveanideaofwhatyoucanattempt,andtheremight be an easier questionelsewhere.

Does analysing a test with a group of friends help?Takingatestwithagroupof friends is immenselybeneficial,becausepeopletend to complementeach other’s strengthsand weaknesses.

With, say four friends, you willhave four different approachesto solving a problem. When you analyse a test by yourself, you will probably come up withtime saving approaches for around 5 to 6 problems becausea single person can come up with only a limited number of perspectives. Witha group, however, you can beassured of multiple approachesto a problem. For example, somesumsmay not require you to usecalculations — someone elsemight see that while it may notstrikeyou. A

TAKING TESTS WITH FRIENDS IS BENEFICIAL, BECAUSE

PEOPLE TEND TO COMPLEMENT EACH OTHER’S STRENGTHS AND

WEAKNESSES.

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Quant matters: How to tackle CAT’ematics

Advanc’edge Team (with inputs from IMS Acads)

With just a few months left for the CAT, we wanted to give you some pointers on how to approach the Quant section of the test. Collated and written in collaboration with our experts, this article gives you information for a last minute preparation. In the next month,

we shall provide you with a similar write up on the English section.

T hey say Mathematics is the language of nature, of everything around us, of

the Universe itself. In the days of polymaths, who were scholars not just learned but full-fledged exper ts in several fields, mathematics was the subject that everyone knew and studied. The great philosophers of old, like Ptolemy, Aristotle and Plato, were all great mathematicians in their own right. Even now, almost every branch of science has mathematics at its core, in varying degrees of course. And since you’re preparing to study the science of management, you will need to know your math.

In the CAT, it all boils down to the cut-off score you can get. Sometimes, clearing the cut-off can be a matter of just one question here and there. Let us look at a few things in the QA-DI section that you should watch out for, so that you can optimise your performance to clear the cut-offs.

Look beyond the formulaWhile tackling any question, keep your eyes and ears open. Knowing the formulae to crack a question is, of course, imperative, but often, just by being aware of exactly what the question is, you needn’t even have to apply the formula.

For instance, consider the problem below.

Q. Two barrels A and C contain alcohol and water in the ratio 1:a and 1:c respectively. Equal quantities of the mixtures from A and C are mixed to get a mixture with alcohol and water in the ratio 1:b, where b is the arithmetic mean of a and c. What can be a possible value of a + b+ c, if a, b and c are integers? 1] 14 2] 10 3] 15 4] 8This appears to be a straightforward problem, where you work in autopilot mode and fit the formula for mixtures into the question to arrive at the answer. However, consider this.

If b is the arithmetic mean of a and c, then 2b = a + c. This means that a +b + c = a + c + b = 2b


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+ b = 3b. Hence, a + b + c has to be a multiple of 3. Select the answer that is a multiple of 3 from the given options, and Bob’s your uncle!

In this example, simply keeping your mind, eyes and ears open will lead you to the solution fairly easily.

Consider another question.

Q. A dishonest shopkeeper sells at cost price but makes a profit of 25% by using faulty weights. If he wants to make a profit of 12% how much discount should he offer? 1] 15.2% 2] 12.5% 3] 10.4% 4] 13%By now all of you should be in the habit of using 100 instead of ‘x’ as the cost price to solve most Profit and Loss problems. So if 100 is the C.P, then 125 is the S.P since he is making a profit of 25%. A profit of 12% means an S.P of 112 and a discount of 13; 13 will be just over 10% of 125 (10% is 12.5, moving one decimal to the left). The answer will be the option closest to this figure, between 10 and 11%.

Work till the end to get the answerIt is vital that in most questions, you follow your working towards the answer to the very end. If, midway through your calculations, you find that you can make what appears to be an “educated guess”, don’t pounce on it. Work till the end to find out what the answer is.

Consider the following problem.Mark [1], if the question can be answered by one of the statements alone but not by the other.Mark [2], if the question can be answered by using either of the statements alone.Mark [3], if the question can be answered by using both statements together but not by either statementalone.Mark [4], if the question cannot be answered, even by using both statements together

Q. The following data is available about a class:

Statement I: The ratio of the number of girls who liked Maths to number of girls who disliked Physics, is same as the ratio of the number of boys who liked Maths to the number of boys who liked Physics.

Statement II: There were 195 students in the class.How many students liked Maths?

From Statement I, we can see that Maths/girls disliked Physics = 54/45 = 6/5. If the total number of boys is b, then:

Since the total number of students is the same, the total of Maths and Physics should be the same.

Hence, b + 6x + 40 = b+5x + 50. Therefore, x = 10, and the question can now be answered.

Many of you will probably stop midway through using the information in Statement I, and assume that using both the statements, the answer can easily be arrived at.

DI is really not that toughDI questions are more or less freebies, especially the ones that do not involve any deduction (like filling up empty tables, etc.) and are based purely on understanding the set and calculating precisely. At their toughest, they involve interpreting the meaning of the data given. But even then they offer a good value for time spent, since there is a very high chance of getting them correct.

Mathematics Physics StatisticsLiked Disliked Liked Disliked Liked Disliked

Boys 54 45 30Girls 40 50 55

Mathematics Physics StatisticsLiked Disliked Liked Disliked Liked Disliked

Boys 54 b-54 45 b-45 30Girls 6x 40 50 5x 55

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For instance, in problems involving DI sets, the key to getting good at solving the sets is to understand that DI does not just mean painful number crunching. That would mean going at the problem with a hammer. You need to develop the ability to determine when to calculate and when to approximate. You also need to be able to do a fair amount of calculation without having to put pen to paper.

A few things that are a must-know for fast calculation:1. Powers of 2 till 12.2. Squares of numbers from 2 to 303. Cubes of numbers from 2 to 12

These fast calculations are helpful not just for the DI portion but for the entire QA-DI section.

It’s only logicalQuite often, you will come across a problem that looks quite tough, and appears to need a great deal of formula laying and solving. However, more often than not, it actually is just a matter of logical reasoning!

Consider the following example.

Q. N is a natural number with a sum its digits as 3. If 1013 < N < 1014, then how many values can N have?If the number is a 2-digit number, it will be either 21, 12 or 30. If it is 3-digit number, it will be 201,210, 102, 120, 300 or 111.

So, the number of values N can take depends on the number of digits. 101 has 2 digits, 102 has 3 digits and so on, until 1013 will have 14 digits. Hence, N will have 14 digits.Now, N can either be a number • with three 1s: start with 1 and have the remaining

two 1s in any of the remaining 13 places; two places out of 13 can be chosen in 13C2 = 13*12/2 = 78 numbers

• with a 2 & 1: start with 2 and have the 1 in any of the 13 remaining places = 13 numbers ; start with 1 and have the 2 in any of the 13 remaining places = 13 numbers;

• or a number starting with 3 followed by 13 zeroes.Therefore, the total number of values N can assume

are 78 +13+13+1 = 105.

Don’t write if you don’t have toIt is an ingrained feeling in most of us that writing means that we’re really trying to solve the problem. However,

read and understand the question fully before rushing to write. You are not saving any time by writing down anything before you have read the question. In fact, because you do not read properly you end up solving questions twice.

Secondly, write only when required. If you can solve a question mentally, why write and make equations like kids. By writing you are under-utilizing your mental ability and spending more time than required to solve questions.

Consider the following example.

Q. Kidsplay, a multinational toy manufacturing company decides to set up a plant in India. To set up a plant, the company has an initial fixed investment of Rs.10,00,000. The manufacturing cost per toy (which is variable and exclusive of the fixed investment) is Rs.60. The company decides to fix the selling price of each toy at Rs.80. Assume there is no other cost or investment incurred by the company for selling or manfacturing the toys.

Using cost optimization measures, Kidsplay reduced the manufacturing cost per toy by 25%. As a result of this, on a production and sale of 1 lakh units of toys, the profit of the company increased by: 1] 100% 2] 120% 3] 125% 4] 150%

One lakh units’ selling price is 80 lakhs. If cost

price per unit is `60, then total production cost is 60 lakhs plus 10 lakhs; profit = 10 lakhs. If cost price per unit falls by 25%, or 60/4 = `15, then on 1 lakh units, profit increases by 15 lakhs or 150%. Think about it — this whole solution can be verbalised without putting pen to paper!

Solving problems mentally and putting pen on paper only when required is a way of sharpening your mind to the tip of an arrow. It is not easy to make a full turnaround from a habit that is so ingrained. But it will definitely be worth the effort.

Look at the problem differentlyHow do you know that there might be an alternative method? Which problems do you choose to solve by the non-standard method?

Typically, it is either the most standard looking or the most unconventional looking problem that can have a short solution. By most standards, these are the questions that have some sort of symmetrical situation

IN THE CAT, IT ALL BOILSDOWN TO YOUR CUT-OFF

SCORE. SOMETIMES, CLEARING THE CUT-OFF CAN BE A MATTER OF JUST ONE

QUESTION HERE AND THERE.


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about them. Consider the problem below.

Q. On a 120-km racing track, if P and Q start driving in the same direction from the same point and at the same time, then P wins the race by 25 minutes. If they drive towards each other from the opposite ends on the same track starting at the same time, the distances that P and Q cover when they meet are in the ratio 3 : 2. Find the speed of P’s car.It is obvious that the lesser time in the first case, is related to the extra distance in the second case. You have to understand that there has to be a short method to solve this type of question. You cannot solve the question using equations.

When they are running in the opposite direction the distance covered is 3:2. Even when they are running in the same direction, the distances covered when P reaches the end will be in the ratio 3:2 (since their speeds are the same). Therefore, when P is at 120, Q is at 80 and to cover 40, Q needs 25 minutes. So, Q’s speed is 40/(25/60) and P’s speed is 3/2 of Q’s speed.

This is how you squeeze every mark and every second out of a paper!

Some points to rememberLet us take a detailed look at the most important test-taking strategy as far the CAT is concerned: You shall not have unread questions at the end of a section.

If there has to be one golden rule that you are not supposed to break, this is the one. The CAT is not about answering tough questions, it is about selecting and answering the relatively easier questions.

So how do you ensure that you do not have an

unread question at the end?• S t a n d a l o n e questions first, sets later Sets, be it DI or LR, take time to solve. In case you get stuck, chances are that you will

not realise how much time you have lost till you have come out of them. So in both sections start with the standalone questions and then move on to the sets.

• First pick, and only then solve Based on your competence, you will have a fair

idea by now as to how easy or difficult a standalone question is after reading it. So while going through the standalone questions, don’t start solving straightaway. First decide whether you can solve it in two and a half minutes or less, only then proceed to solve it.

• Use the MARK option to navigate smartly As you navigate the standalone questions, you will

definitely find questions that are solvable but might take about 3 to 4 minutes. Some of these might take time just because they are lengthy. Single out these questions to solve later. Use the MARK button to single out these questions so that you can use the REVIEW MARKED questions option to quickly reach these questions later.

• Do not throw good money after bad money The biggest mistake test-takers are guilty of is

wasting time on questions on which they have already exceeded the average time of 2.5 minutes. If you have taken more than 2 minutes for a question, do not spend any more time on it unless you are dead sure that you will get the answer within the next minute. Every extra two minutes that you spend on a question is letting go of an easy question somewhere; MARK the question

and move on.• Do SET-based questions in the middle Be it DI or LR, it is best that you do not start solving a set in the last 10 minutes of the test. The best thing to do is to take up the sets in the middle. Even so, choosing the right sets as well as the easier questions within a set is important.• You need not do all the questions in a set.

Even sets that are easy overall might have a question which is a speed-breaker. Just because you spent time reading a set does not mean that you have to answer all questions; avoid the speedbreakers and move on. A

TYPICALLY, EITHER THE MOST STANDARD LOOKING OR THE

MOST UNCONVENTIONAL LOOKING PROBLEM HAVE A

SHORT SOLUTION.

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‘Form a real time strategy while taking the test’

Q. Many MBA aspirants target CAT, SNAP, NMAT and the CET, and you were one of them. When did you start preparing for CET, and what was your strategy? I believe that the preparation for competitive exams like CAT, SNAP, NMAT, XAT and CET is pretty similar to a certain extent, as many sections in the papers and the question types overlap for most exams. It’s the strategy for taking the exams that changes with each exam. Some exams focus more on accuracy, while some are speed tests. In that respect, my preparation had begun with the CAT during May, although I started my CET-specific preparation only after January. By January, I was well aware of my strengths and weaknesses in Quant and Verbal. So that was something I used in my mocks to choose which questions to solve and which ones to leave out. In the CET, both accuracy and speed are equally important. So being aware of the question types that you can solve correctly within 30 seconds becomes really important. Smartly choosing which questions to solve was my strategy for the CET.

Q. What were the toughest and easiest areas for you in MH-CET? Why?Quant was my strength, and so was definitely my strongest point, but the CET had only around 25 to 30 direct Quant-based questions. Logical reasoning sets on Arrangements, Grouping and Conditionalities, and Logical Puzzles were another area of my strength. Critical Reasoning, Verbal Ability and Visual Reasoning were the tricky parts for me, mainly because there is no specific formula-based approach you can adopt here. The approach changes with each question, and you need to be a smart observer to be

able to distinguish between similar looking options, which is what most students complain about in Critical Reasoning. The IMS faculty pointed this out to me and asked me to be more observant, and that changed my approach towards this section. I had to practise a lot of those questions to improve my accuracy and the IMS study material helped a lot in this respect.

The Verbal Ability section fetches marks in minimum time if the questions are solved smartly. The comprehension passages need to be skimmed through and not necessarily read too carefully, and enough practice of the IMS study material equipped me quite well. I didn’t consciously work on vocabulary, but I used to try and build on my vocabulary by reading newspapers and books. Visual Reasoning required a lot of practice. The more patterns you are aware of, the quicker you will be able to crack the question, although in some cases, it is just better to guess and move on instead of spending too much time on a single question.

Q. Many students tend to not prepare for Visual Reasoning questions. Did you adopt such a strategy? If you are targeting JBIMS, can you choose to skip certain question types?Visual Reasoning is definitely one of the more time consuming question types, especially when it involves 9 symbols or more. So choosing wisely here becomes extremely important. In CET 2014, visual reasoning questions came in sets of 2 questions or a single question intermittently between other question types.

Not preparing for any particular question type is not advisable at all. I practised a lot of visual reasoning

SUDARRSANAN MURALI scored a 99.92 percentile (CET score of 145) in MH-CET 2014, and hopes to join his dream business school — JBIMS. He has a Bachelors degree in Engineering with a specialisation in Electronics and Telecommunication. After his graduation in 2011, he has worked a year each in an IT company and an education company. He intends to pursue a career in marketing post his MBA. In this interview, Sudarrsanan shares his preparation strategies and experience on taking the test.


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questions and equipped myself well to solve those questions. But my strategy in the exam was to try and solve these questions within the first 20 seconds. If I was not getting any lead within 20 seconds, I would intelligently guess an answer and move ahead. So I don’t think we can afford to predetermine skipping any question type. Even the areas we’re weak in can have a few sitters and we can get them right. In a test like the CET where there are almost 12 to 15 people scoring the same marks, each mark has a lot of value. In the end, the difference between a good score and an average score will be decided by the question types which normally aspirants tend to skip.

Q. What were your strategies to handle the difficult parts?The IMS test series helped me formulate different strategies, and all that experience was put to use in the actual paper. The SimCET test series made me realise that each paper needs a new strategy. The strategy depends on the paper and has to be formulated after solving about 10 to 15 questions in the paper. For an easy paper, speed becomes important, but accuracy becomes the deciding factor in a difficult paper. To formulate a real time strategy, it is important to know your strengths and weaknesses very well. Sometimes it is better to solve a sitter in an area of your weakness and save time instead of solving a lengthy question in the area of your strength. This makes it important to have minimum weak areas so that you can adapt well to any paper. So, practising the weak areas and building confidence in them is important. I used to practice my weak sections with the aim of not panicking and remaining confident even if it was a difficult paper and did not play to my strength.

Q. What was your paper solving strategy on the testing day? Did the online mode of the CET pose a challenge?On the testing day I wanted the first day first slot because I did not want anybody else’s opinion to influence my judgement on any question. I had decided to go in with a clear head and attempt questions on merit. I had a good idea of the kind of questions I was good at and I had planned to invest my time in such questions.

CET 2014 was certainly quite lengthy, and my initial strategy backfired because I had started slow. After solving about 65 to 68 questions in an hour, I had to change my strategy. That is when I started solving sets from question 200, hoping that there might be sitters at the end and not wanting to miss out on those. And that did help, as there were 10 Fill In The Blanks right at the end. Not only did I gain confidence, but I also realised that I was catching up

on speed. It has been repeated by the IMS faculty time and again – “Do not panic and you’ll get a bonus of 5 of 10 marks.”

I knew if I was finding the paper lengthy, the other aspirants were too. I could attempt around 160 questions only because I stayed calm. The online mode of CET didn’t affect me much. The IMS SimCETs had made me comfortable with the online mode of the paper and I found the actual test taking environment similar to that of the SimCET.

Q. How did you manage your weekly study schedule? I don’t believe that there is an ideal duration to study in a week, but it is important to study without pressure. It all depends on how quickly you pick up momentum. I targeted covering different question types during the week and one SimCET during the weekend. I spent more time analysing the SimCET than solving it. It helped me recognise the question types that I needed to work on, and I used to target such question types and tried to increase my accuracy by solving sectional tests and more similar questions.

Q. What advice would you give to MH-CET 2015 aspirants?

Find out where you stand by taking a simulated test and ascertain the areas that need to be worked upon and target them. Get a head start on CET-specific question types like Visual Reasoning, Number-Alphabet Series, etc. Test your progress by taking a mock test at

regular intervals and making a note of the areas that have improved and the ones in which you still need practice. Do not pressurise yourself during the simulated tests or the actual exam. Do not let these mock scores discourage you. Make an analysis of every mock test, noting down the positives that you can take from it and the areas that need to be worked on. Have multiple strategies based on your strengths. Play to your strengths and practice enough to cover your weaknesses.

Q. There are also many who focus only on the CET, with JBIMS as their target. Will anything above change in such a scenario?Such aspirants will have more time at hand to work on their weak areas as they will no doubt start CET specific preparation earlier than the others. This time should be utilised well to gain an edge over others and peaking at the right time. Too much preparation can take a toll and slow you down, and so it becomes necessary to be cautious. A

FOR AN EASY PAPER, SPEED BECOMES IMPORTANT, BUT ACCURACY BECOMES THE

DECIDING FACTOR IN A DIFFICULT PAPER.

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mba buzz

14

Newsin brief

Here are some

interesting

titbits from

over the last

month

298 dead in a second Malaysian Airlines crashMH17, a scheduled i n t e r n a t i o n a l Malaysia Airlines passenger flight

flying from Amsterdam to Kuala Lumpur, crashed mid-air on July 17, 2014. The airplane went down near Hrabove in Donetsk Oblast, Ukraine, about 40 km from the Ukraine-Russia border. All 283 passengers and 15 crew members on board the Boeing 777-200ER airliner were killed. The crash occurred in the conflict zone of the ongoing Donbass insurgency. It is being claimed that pro-Russian rebels mistook the civilian flight for a military one and shot it with a surface-to-air missile. The incident occurs within months of the disappearance of another Malaysian Airlines flight MH370.

India ranks second in contingent workforce availabilityAccording to a Manpowergroup report, India comes just after China in terms of contingent workforce availability. (A contingent workforce is a provisional group of workers who work for an organisation on a non-permanent basis, including freelancers, independent professionals, temporary contract workers, independent contractors or consultants). The US, Thailand and Vietnam rank third, fourth and fifth respectively. The Contingent Workforce Index measures and tracks the relative ease of sourcing, hiring and retaining contingent workforce in 75 countries.

With regard to cost efficiency, India took the top position; it came in at number six for contingent workforce engagement with the top five being – Hong Kong, US, China, New Zealand and Singapore.

Nikesh Arora quits Google to join SoftbankGoogle Inc’s chief business officer Nikesh Arora has quit his decade-long association with the tech giant to join Japan’s Softbank as vice chairman. He will also be the chief executive officer of the newly formed SoftBank Internet & Media Inc. Arora had joined Google before the company’s IPO and was instrumental in building the company’s search-ad service into the largest online ad business in the world. Omid Kordestani, who helped craft Google’s business model, will take over Arora’s role.

IT industry adding fewer employees The IT industry added only 13,000 employees for the year ending March 2014, whereas in the year 2013, it had required 26,500 employees, according to data from software industry grouping Nasscom.

The IT industry is embracing automation and looking for graduates with more specialised skills. This is a warning sign for graduates looking for a job in the IT industry. Engineering graduates are now facing stagnating wages and fewer jobs, as supply far outstrips demand and IT firms preferring to pick quality over quantity.

15


www.advancedge.comcountdown

countdown

Best Companies to work for

Indian15 TOP

Privateownershipemployees

1625GoogleIndiaPvt.Ltd.

Privateownership employees

3644

Information Technology - Hardware :Industry


5200

Privateownership employees

8129

2IntelTechnologyIndiaPvt. Ltd.

4AmericanExpressIndia

Privateownership 6

Information Technology - Software :Industry

Hospitality - Hotel/Resort :Industry

Information Technology :Industry

Manufacturing & Production :Industry

AdobeSystemsIndiaPvt.Ltd.


4635

Publicly quoted/heldownershipemployees

2121

employees2553

Financial Services & Insurance :Industry

3MarriottHotelsIndiaPvt. Ltd.

5SAPLabsIndiaPvt.Ltd.


7GodrejConsumerProductsLimited

Source:ET

9UjjivanFinancialServicesPvt. Ltd.

8IntuitTechnologyServicesPrivateLimited

10CactusCommunicationsPvt. Ltd.

11NetAppIndia

12EurekaForbesLtd.

13

Information Technology - Software :Industry

Professional Services :Industry

Manufacturing & Production :Industry


14MicrosoftCorporationIndiaPvt. Ltd.

EncoreCapitalGroup

Privateownership

Privateownership

Privateownership

Publicly quoted/heldownership

Financial Services & InsuranceBanking/Credit Services :Industry

Information Technology - Storage/Data Management :Industry


Hospitality - Hotel/Resort :Industry

15TajHotelsResortsandPalaces

employees1860

employees14675


6593


9363

employees1849


297

employees4096

Publicly quoted/heldownershipemployees

773

employees6,000

Company rating(out of a possible 5.0)

4.6

employees3,000


4.6TwitterIndustrySocial Networking

employees5,000


4.6LinkedInIndustrySocial Networking

employees13,500


4.5Eastman Chemical CompanyIndustryChemical Manufacturing

employees6,818


4.5FacebookIndustrySocial Networking

employees1,150


4.5GuidewireIndustryIT

employees1,400


4.3Interactive IntelligenceIndustryIT/Telecommunications

employees52,069


4.3GoogleIndustryIT/ITes

employees1,400


4.3OrbitzIndustryTravel

employees11,000


4.3Nestlé PurinaIndustryPet food

Bain & CompanyIndustryManagement Consulting

Top Companies to work for

Best International1010

Source: Forbes


www.advancedge.commust reads

19

One of the most important business books of all time, Barbarians At The Gate shares the story of RJR Nabisco’s fall, one of the largest takeovers in Wall

Street history by Kohlberg Kravis Roberts (KKR). This book, by Bryan Burrough and John Helyar, offers a behind-the-scenes look at what was then the largest buyout in history and it centres around one of the kings of the private equity

industry, Henry Kravis of KKR, at a major turning point in his career. The book subtly paints a portrait of greed, excess and poor management in the form of F.

Ross Johnson, RJR Nabisco’s eccentric CEO and president at the time of the bidding war. This is a central theme in the book — Johnson and his merry band of laid-back executives versus

the hard-charging, cost-cutting style of KKR. Read this book to learn about financial operations of the 80s at the highest levels that are valid even today.

Why are some people great and others not? The answer to this ever-debated question is provided in this book, which tells us — quite simply — that

talent is overrated. World-class talent isn’t something you are born with. It must be developed over many years of unflagging dedication, education, and deliberate practice of a key skill, which requires consistent repetition and immediate feedback.

Colvin points out what we do not realise: Knowing the basics of your profession will help, no matter what. Based

on scientific research, Talent is Overrated shares the secrets of extraordinary performance and shows how to apply these principles. It features the stories of people who achieved world-class greatness through

deliberate practice, including Benjamin Franklin, comedian Chris Rock, football star Jerry Rice, and top CEOs Jeffrey Immelt and Steven Ballmer.

Since you’re planning on doing your MBA, you need to be well read, and not just on current affairs. In this section, we offer you some choices of books that will broaden your perspective, and you will find that you will never be at a loss in a discussion!

In his book Drive, Daniel H. Pink suggests the way we can achieve high performance and satisfaction for both organisational and individual levels by

exposing the mismatch between what science knows and what business does. It turns out that external incentives can limit our ability to think critically and creatively. Today’s world requires intrinsic motivation, consisting of three key elements: autonomy, mastery

and purpose. Pink attempts to answer the question of what makes some people perform better than others. In other words — what drives us?

The book is a must read if you aim to be a team leader or an entrepreneur.

Title: Drive: The surprising truth

about what motivates us

Author: Daniel H. Pink

Publisher: Random House

Price: `290

Genre: Non-fiction/Psychology

Title: Barbarians At The Gate

Author: John Helyar, Bryan

BurroughPublisher: Random House

Price: `439Genre: Non-fiction

Title: Talent Is Overrated: What

really separates world class

performers from everybody else

Author: Geoff Colvin

Publisher: Portfolio Trade

Price: `787Genre: Business/Management

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20

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Advanc’edge MBA June 2014

tipping point

20

ways

to

ensure

you

never

miss a

deadline

ways

to

ensure

you

never

miss a

deadline

Deadlines invariably stress us out, and the ultimate result is chaos.

But with a little effort, you can make sure that all your projects

are submitted on time and your faculty or bosses are impressed.

Here are 5 tips to get you there.

Give yourself some cushion.

It is important to be realistic about how quickly you can

accomplish a task. Do yourself a favour and factor in a little

more time than you think you need when you begin setting

deadlines. You already know that things could go off track.

If you don’t end up needing the extra time you factored in,

you may even make a deadline early, and that’s sure to

impress everyone around!

Set explicit expectations.

It is always best to establish very clear expectations with the people

you work with, ideally in writing. This is especially true if you are

working in a group. Does everyone know what is expected of them?

Make sure. If you send an email, confirm that everyone has received it.

Be a leader.

When things go awry, keep your cool. Others will follow your lead. Playing the blame game never does any good. Collect

yourself, and focus on keeping morale high. How can you get back on track? You already know that it is inevitable that

you’re going to be surprised by something, so there’s no need to let it derail you. Making a mistake is human. It certainly

isn’t the end of the world. The sooner you let go, the more quickly you’ll be able to move on.

Set goals and track your progress.Set goals and track your progress.

Use a project tracker online. The tracker literally keeps us up to date on what is due and when, and who is responsible.

What we accomplish every day — and even every hour — is easily logged. When a team member is falling behind, it

becomes obvious, which makes it easy for someone to jump in and lend a hand. And when a team member achieves an

objective, we celebrate together, too.

Use a project tracker online. The tracker literally keeps us up to date on what is due and when, and who is responsible.

What we accomplish every day — and even every hour — is easily logged. When a team member is falling behind, it

becomes obvious, which makes it easy for someone to jump in and lend a hand. And when a team member achieves an

objective, we celebrate together, too.

Have a Plan B, and even better, a Plan C.

Surprises, setbacks and roadblocks are inevitable. You may not know

where they're coming from, but things will go wrong — they always

do. So think about alternatives and backups before you even get

started. Create options for yourself and you will have less

stress. If you're embarking on a new project, there's only so

much you can learn on your own. Reach out to a mentor

and ask, “What should I be aware of? What could go

wrong?” Their advice will save you time and money.

Have a Plan B, and even better, a Plan C.

Surprises, setbacks and roadblocks are inevitable. You may not know

where they're coming from, but things will go wrong — they always

do. So think about alternatives and backups before you even get

started. Create options for yourself and you will have less

stress. If you're embarking on a new project, there's only so

much you can learn on your own. Reach out to a mentor

and ask, “What should I be aware of? What could go

wrong?” Their advice will save you time and money.

Give yourself some cushion.

It is important to be realistic about how quickly you can

accomplish a task. Do yourself a favour and factor in a little

more time than you think you need when you begin setting

deadlines. You already know that things could go off track.

If you don’t end up needing the extra time you factored in,

you may even make a deadline early, and that’s sure to

impress everyone around!

Set explicit expectations.

It is always best to establish very clear expectations with the people

you work with, ideally in writing. This is especially true if you are

working in a group. Does everyone know what is expected of them?

Make sure. If you send an email, confirm that everyone has received it.

Be a leader.

When things go awry, keep your cool. Others will follow your lead. Playing the blame game never does any good. Collect

yourself, and focus on keeping morale high. How can you get back on track? You already know that it is inevitable that

you’re going to be surprised by something, so there’s no need to let it derail you. Making a mistake is human. It certainly

isn’t the end of the world. The sooner you let go, the more quickly you’ll be able to move on.

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www.advancedge.comcorporate world

21

The “Super” Budget2014-15


The overall highlight of the Budget announced by the new government for 2014-15 is in reducing deficits and inflation, and encouraging growth. However, despite the slew of

measures in the Budget, it is still not absolutely clear how these will be achieved.

T he Budget 2014-15 had generated high expectations on account

of the thumping majority with which the BJP came to power and the growth and development agenda that formed the core of the par ty’s election campaign. A key question lingers, however — has the BJP, in fact, lived up to such expectations? Having taken charge barely two months before, one cannot expect the budget to deliver the whole nine yards, but the expectation was for a clear cut intent and direction! This ar ticle will discuss if the budget addresses the

need of the nation. Has the budget signalled moving the nation in the right direction?

The economic survey released ahead of the budget highlighted the key challenges to be the following: high levels of inflation (consumer price inflation is currently at 9.5 per cent and whole sale price inflation at 6 per cent), poor domestic demand and a weak manufacturing sector. All of these have constrained the Gross Domestic Product (GDP) growth for 2013-14 at 4.7 per cent. Despite low levels of growth and investment, the financial position improved towards the end

of 2013-14, with a sharp reduction in current account deficit to 1.7 per cent of the GDP (compared to 4.7 per cent of the GDP in the previous year), increased foreign exchange reserves (now more than US$300 billion) and a manageable level of fiscal deficit at 4.5 per cent of the GDP.

The Union BudgetIt is unrealistic to expect the Budget to address the vast number of issues all in one go to get the economy back on track. The government has selectively picked up big ticket items and has taken

baby steps, not promising to resolve these issues outright, but providing a direction as to what is in the offing in the coming years. To that extent, it is not a “big bang” budget that promises the sky, but firmly provides the required direction and thrust towards enhancing savings, increasing investments, clearing infrastructure bottlenecks, improving agricultural productivity and controlling inflation in the shor t to medium term.

Inflation easing measuresThe Budget cannot provide any shor t term measure to control Finance Minister Arun Jaitley

BUDGET

2014-15

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RIL takes control of Network 18, TV18Reliance Industries Ltd (RIL) has recently taken control of the Network 18 Media and Investments Ltd and its subsidiary company TV18 Broadcast Ltd

for a consideration of `4,000 crore. NW18 is in the media business and operates digital television, e-commerce and internet businesses including In.com, IBNLive.com, Moneycontrol.com, Firstpost.com, Cricketnext.in, Homeshop18.com and Bookmyshow.com. Its broadcast channels include Colors, CNNIBN, CNBC TV18, IBN7, CNBC Awaaz.

Massive Job cuts in MicrosoftMicrosoft recently announced that it will axe 18,000 staff over the

next few months as it trims its newly-acquired Nokia phone business. However, Microsoft has confirmed that terminations will be done in a

transparent manner and the terminated employees would be supported in a number of ways during the transition including payment of

severance packages and support for finding alternative employment. The move is intended to help Microsoft shift from being a primarily

software-focused company to one that sells online services, apps and devices in line with its competitors Google and Apple.

inflation. Through its monetary policy stance, the Reserve Bank of India (RBI) controls market liquidity and thereby keeps inflation in check. But there are cer tain directional steps to ease the supply side constraints of food items that have largely been contributing to higher level of inflation. The problem has been that food grains produced by the farmers are not effectively reaching markets; with more demand, the price of food items have been increasing.

Weeks before the budget, the finance minister (FM) asked the state governments to remove fruits and vegetables from the Agricultural Produce Market Committees (APMC) Act. This in effect means that the farmers would be able to sell these produce directly to retailers and consumers, circumventing the middle men and agents who have been responsible for creating a car tel and paying low price to the farmers for their produce. Middlemen have also been repor ted to be responsible for hoarding and ar tificially pushing up the prices and inflation. A strong message from the FM to all the states asks for serious actions to be taken against hoarders. In addition to these measures, the Budget has also paved the way for increasing the warehousing capacity — the introduction of scientific warehousing will go a long way in improving the shelf life of the produce. The FM has also mentioned in the budget document that the Food Corporation of India (FCI) will be restructured to improve efficiency of public distribution systems, reduce losses in transpor tation and warehousing.

Savings, investment and subsidiesDomestic savings had steeply reduced from 33.1 per cent of the GDP in 2009-10 to around 31 per cent; there is an urgent need to

INDIA INC: AT A GLANCE

ICICI looking for takeover targetsChanda Kochhar, CMD of ICICI bank, is planning to scale up to the next level

and is looking for takeover targets. In the past ICICI had taken over several banks including Bank of Rajasthan, Sangli Bank and Madura Bank in order to achieve its current size and scale. ICICI has created history over the last decade in establishing a commercial bank from scratch and has grown in scale to become one of the largest players in the Indian financial services sector. Its management depth and diversification into related businesses like insurance has become legendary and is being taught as a case study in business schools.

IIP Growth encouragingThe Index of Industrial Production, that reflects the robustness of the

manufacturing sector, grew at slightly less than 5 per cent during May 2014 bringing back the vibrancy in the manufacturing sector. A strong

growth of 4.5 per cent was also recorded in the capital goods sector and a 3.7 per cent growth in the consumer goods sector. The IIP growth for

April was a mere 3.4 per cent. Electricity generation also grew by 6.3 per cent. IIP’s potential for growth over the next few months is quite high

given the slew of announcements made in the Budget 2014-15 that are intended to kick start the manufacturing and capital goods sector.

RBI Niche Banking LicensesThe Reserve Bank of India (RBI) has issued draft guidelines for creating niche banks focused towards payment services or focused towards smaller customer

group, geography or focused businesses. This has been on the cards for some time now; the objective is to speed up banking penetration in the country.



23

boost this fur ther. The Budget has brought in a number of steps that will increase domestic savings, including increasing the limit of public provident fund contribution to `1.5 lakh (deduction under 80C has also been increased), reintroducing Kisan Vikas Patra, which could bring small savings currently channelled into unproductive assets like gold and silver into mainstream savings that can be used to improve investments in the economy. Increasing the IT exemption limit by `50,000 to `2.5 lakh (`3 lakh for senior citizens above 60 years) should also leave more cash in the hands of taxpayers, which can then be channelled into investments.

In addition to providing the means to improve savings that can be channelled into more investments, a slew of other measures that will kick star t domestic investment has also been announced as par t of the budget. Increasing Foreign Direct Investment (FDI) in defence and insurance sectors to 49 per cent will see more investments flowing through. A clear message that retrospective taxation will not be

the way forward could ease more foreign investments that were held up to now come through. On the taxation front, reductions made in excise and customs duty will make the manufacturing sector more attractive.

Although the subsidies (government taking on the burden of the common man) in the areas of food, fer tilizer and petroleum products has marginally increased,

reaching `2.5 lakh crore, there is a clear message that over a period, the subsidy will be sharply cut, but become more focused to reach the targeted groups who are in desperate need of such subsidisation. The subsidies are currently a major por tion of the government’s expenditure plan (see Table 1).

Clearing infrastructure bottlenecksBanks are being allowed to raise long term funds to specifically finance infrastructure projects. Real Estate Investment Trust

(REITS), a globally popular means of funding real estate projects, has also been announced. More than `37,000 crore has been announced to improve the road network, with a target of 8,500 km of roads to be completed during 2014-15. Other initiatives have also been announced to boost shipping and energy sectors, including rationalising coal linkages that

Table 1: The Budget MathFigures in lakh crores

Where does the money come from? Where will the money be spent?

Tax from Companies 4.5 Interest payments 4.3

Personal Tax 2.8 Subsidies 2.6

Serviec Tax 2.2 Pensions 0.8

Excise Duties 2.1 Administrative & Social 8.0

Customs Duty 2.0

Less: State Govt. share & others -3.8 9.8 Capital Expenditure 2.3

Capital Receipts (incl. loans and PSU divestments)

5.9

Non Tax Revenue (interest, profits from PSUs, others)

2.3

Total Receipts 17.9 17.9

* Fiscal defict of `5.31 lakh crore included above, is financed through loans and divestments

Banks to be allowed to raise long term funds to finance infrastructure projects.

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The year 2013-14 saw the Railways underperforming on all counts, from passengers carried, freight carried and revenue generation. The operating ratio, which measures the efficiency of the Railways also deteriorated to 93.5 per cent — this means that out of every 100 rupees earned, 93.5 rupees was spent during 2013-14 on operational expenses, leaving only 6.5 rupees for meeting investments in safety, amenities and modernisation. This is concerning, especially when compared with the same measure in 1983-84, at 74.7 per cent, demonstrating the extent to which finance of the Railways have deteriorated over the years.

A number of measures have been mentioned in the Railway Budget to improve efficiency during 2014-15. A marginal improvement in the operating ratio to 92.5 per cent, recent increase of nearly 14 per cent in passenger tickets ahead of the budget, a 6.5 per cent increase in freight rates, and a host of passenger convenience initiatives, including Wi-Fi services on trains, e-ticketing through mobile phones, escalators in stations, strengthening railway police system for better passenger safety, improved cleaning services and launch of high speed bullet trains. Improvement in governance is also being targeted through restructuring the Railway Board.

Railway Budget

will boost power production in the country.

Indication that manufacturing will be strengthened has strongly come through. The setting up of a national industrial corridor authority, expor t promotion mission, enhanced skills development through the Apprenticeship Act and a large number of initiatives including equity venture capital funds is expected to boost entrepreneurship and encourage star t-ups.

Fiscal ConsolidationThe acid test on the budget proposals will lie in what the reality is in the budget expenditure and receipt numbers (see Table 1). Overall expenditure is increasing by more than 10 per cent to `17.9 lakh crore, which the government is expecting to fund through additional loans, higher level of disinvestment of shares in public sector units and targeting an enhanced tax revenue of close to 17 per cent more than the previous year. The fiscal deficit

has been targeted at 4.1 per cent of the GDP for the budget year 2014-15 a 0.4 per cent lower than last year.

Overall, the targets seem to be quite optimistic and will be challenging to achieve. Containing the fiscal deficit at 4.1 per cent and achieving disinvestment of `63,000 crore in the span of the next seven to eight months will be a challenge, especially when not more than `25,000 crore was achieved in the whole of last year. More impor tantly, it is not very clear if the Iraq crisis and the potential increase in global crude prices as well as the failing monsoon during the current year have been factored into the expenditure and inflation levels. These may very well adversely impact the Budget numbers.

The Budget did receive mixed response from corporates, foreign investors and the retail stock market players, with the stock markets reacting negatively on Budget day. Although the intent has been in the right direction — signalling major reform initiatives in key areas — the budget did lack specifics, especially in containing the fiscal deficit. The hope is that this will be addressed more effectively, and there will be more clarity going forward. A

US Economic recoveryJanet Yellen, the US Federal Reserve Chair person, has indicated that there is still scope for the US economy to recover further. Although the unemployment rate has fallen down to 6.1 per cent, Yellen mentioned that this is still a high number that needs to go down. The takeaway from Yellen’s statement is that the US economic recovery is still incomplete and that there is still more time for the interest rates to increase as the Federal government will continue to hold the rates low as long as there is scope for the economy to increase further.

China’s GDP grows at 7.5 per centIt is a relief for the global economy that China’s economic growth rate has inched up to 7.5 per cent in the second quar ter of 2014. China’s growth has been achieved through robust industrial production and enhanced domestic consumption. The improvement in the developed economies is also fuelling this growth. This is a marginally better growth rate than the first quar ter of the year after which the Chinese central banks injected liquidity to boost the economy.

AT AGLANCE



25

hen the budget proposal is analysed for the impact it will have

on different industry segments, its potential to spur growth comes across as promising. Key sectors in the economy, including banking and financial services, manufacturing and capital goods and real estate have, in fact, been given a solid thrust to kick star t economic growth in the country. The sector-wise impact of the Budget 2014-15 is analysed in this ar ticle.

Banking and financial servicesThe health of the banking sector is of paramount impor tance for a vibrant economy. The Indian banking sector needs to be strengthened on many counts to improve its well being, and this budget addresses many such issues. As per Basel III norms, Indian banks will need an additional capital of around `2.4 lakh crore by the year 2018 in order to adequately manage their risk levels. Although a small par t of this capital requirement has been provided in this budget, the government intends to fund such capital increases through diluting its share in the public sector banks by allotting shares to retail investors in a phased manner, with the government still holding majority ownership.

This is a sensible proposition, as the government won’t be in a position to fund this mammoth requirement, but at the same time, raising the funds from retail investors would also given them fragmented ownership of priced banking assets of the country.

Permitting banks to raise long term funds for lending exclusively for infrastructure will be a boon for infrastructure companies. Additional allocations for National Housing Bank will extend credit, and spur activity in rural and low cost affordable housing. Increasing deduction limit on interest on housing loans will initiate more loan business for banks. Proposals to increase the tax rate on long term capital gains provides incentives for depositors to switch debt mutual funds to bank deposits. This will also ease the banks’ fund raising initiatives.

The cap on Foreign Direct Investment (FDI) in the insurance sector has been proposed to be increased to 49 per cent (from the current 26 per cent), which will allow more foreign specialist insurance players to enter the Indian market in joint venture with Indian companies. The management control of such insurance companies will still remain with the Indian companies.

Manufacturing and capital goodsIncrease in the ceiling of FDI from 26 per cent to 49 per cent in the defence sector manufacturing is a key initiative that previous

There is good news for a lot of key sectors in the Budget 2014-15 announced by the new government. The measures included in the Budget all point to an effort to revitalise these

ailing sectors, and help boost the growth of the Indian economy.


Budget 2014-15:Sectoral offering

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governments had been debating but had failed to implement, given the sensitivity of this sector. The new government’s bold initiative to open this sector up to foreign investors, who will bring in valuable technology and make investments jointly with Indian players but with management control resting with the Indian par tner, is a master stroke. This will be very attractive for foreign players as India is not only a huge defence market but also a low cost destination from where expor ts are a good possibility. This will also save substantial foreign exchange for the country, as a large par t of our defence equipment is impor ted, but at the same time, setting up local manufacturing units will enhance job creation and skill development.

The government has provided incentives for the manufacturing sector by allowing investment allowance for investments ranging from ̀ 25 crore or more, decreasing the limit from the earlier `100 crore. Investment allowance allows manufacturers to reduce their taxable profits and pay lesser taxes on purchase of capital equipment. This is likely to give the much required boost to the manufacturing sector, which is currently quite weak. A slew of measures to boost local manufacture of solar panels and wind turbine components has also been proposed. Customs duty on picture tubes and LCD television panels that cater to the low income group has been eliminated.

Infrastructure and real estateOver the years, India’s infrastructure investments have predominantly been structured under the Public Private Par tnership (PPP) scheme. However, it has been ridden with problems faced by the private par tners as a result of a lack of clarity in the responsibilities of the par ties and inappropriate risk-

AT AGLANCE

BRICS BankOne of the biggest problems for the emerging economies has been the inability to access development finance from western banks like International Monetary Fund (IMF) which are dominated by the super powers. In order to mitigate the dominance of IMF and world bank, emerging market leaders launched BRICS bank, expected to be capitalized with US$100 billion, $50 billion of which would be contributed equally by the five par tners who will have equal voting rights. The bank would be primarily focused on development activity in the BRICS and other emerging markets. The focus of the BRICS bank would be to fund capital intensive, long gestation infrastructure projects in developing nations as well as ease liquidity as and when required. It has been agreed to base the bank in Shanghai and the head of the bank would be from India for the first six years followed by Brazil and Russia.

Carrefour to exit IndiaCarrefour, the second largest retail player in the world, headquar tered

in France, has decided to pull out of India after two years of operations in

the wholesale segment. This is not good news for Indian regulators as it runs five wholesale outlets

and had entered this business with an objective to understand the Indian market and establish itself well ahead of the multi-

brand FDI in retail being opened up. However, although the Indian government opened up FDI in multi-brand retail in 2012, various

restrictive clauses like mandatory local sourcing requirements have discouraged many global retail players to enter the Indian market. Wal-Mar t also sold off its stake in wholesale retail and

exited India a few months ago.

Google innovationThese are days of alliances; companies pool in their expertise and core strengths to create altogether new products that will delight the customer. After Apple and IBM,

two global giants, Google and pharmaceutical major Novartis have teamed up to create the smart contact lens. Both the partners expect it to be used in the main stream over the medium to long term. The contact lens is expected to sense glucose from tears through a small chip that will be transplanted inside a wafer thin plastic contact lens which will continuously monitor the level of glucose. This is another major step in the emerging trend of wearable devices in the communication industry with players like Samsung, Intel and Apple spending billions of dollars in developing new wearable devices that can allow one to seamlessly access the internet.



27

reward sharing mechanisms. This has significantly slowed down many PPP projects, especially roads and expressway projects, which have vir tually come to a standstill over the last year. The budget proposes setting up a body that will resolve the pending issues between the private players and government, and will ensure effective implementation of both pending and new PPP projects; an allocation of `500 crore has been made towards this end.

A number of proposals to develop new airpor ts in smaller cities to improve connectivity of passengers and freight as well as measures to create 16 new sea por ts are likely to enhance infrastructure, aid growth and improve employment in the economy. Proposing the Real Estate Investment Trusts through a tax efficient structure has provided an alternative funding option for the Indian real estate market, and this could attract a number of foreign players. A number of other measures reducing the minimum size of real estate development will allow foreign investment to flow through to smaller Indian developers.

AutomobilesThis is a sector that has a high impact on domestic job creation as well as on consumption. In a developing economy like India, where the automotive penetration per capita is extremely low as compared to global benchmarks, a vibrant auto sector is a must for sound economic growth. Over the last few months, this sector had been severely hit, by sluggish vehicle sales. The budget proposal has provided for the extension of excise duty rebate till the end of 2014. This will reduce the on-road cost of vehicles, enhance demand and increase manufacturing sector

and GDP growth. The level of agriculture credit has also been sharply enhanced, with a target of 4 per cent for agricultural growth; this should steeply push up tractor and farm equipment sales. When the supply side effor ts to control food inflation included in this budget star ts taking effect, interest rates should come down, which can give a fur ther boost to the growth of this sector, as it is highly interest rate sensitive.

Energy and miningMajor initiatives have been announced in the oil and gas sector. The proposal to lay down a 15,000 kilometer pipeline to transpor t gas across the country with public private par ticipation is a major step forward to encourage gas usage by power and fer tilizer plants due to the less polluting nature of gas over coal. This is also likely to spur more investments towards gas exploration and production, thereby decreasing our dependence on crude oil.

Piped natural gas usage has also been signalled to be increased by providing more lines in large cities, which will reduce the usage of gas cylinders. Excise duty has also been cut on branded petrol, which will spur the sale of cleaner gasoline in retail outlets, matching the sophisticated passenger vehicles that are being introduced in the country. The overall fuel subsidy is being steadily decreased, as petrol is now more or less sold on an arms length basis, and the diesel subsidy will continue to be reduced in a phased manner, easing pressure on fiscal deficits. Various initiatives have been proposed to make Coal India more efficient, thereby making more, cleaner coal available to power plants to increase electricity generation — a key requirement to avoid power cuts and increase growth. Income tax holidays on several power projects have also been extended, and banks will be suppor ted to extend long term funds to power projects.

In the mining sector, expor t duty on bauxite has been steeply increased to 20 per cent, which means more bauxite will now become available to aluminium manufacturers, an industry that is expected to grow steeply on the back of infrastructure and construction. A number of other favourable policies in the steel and iron sector are likely to positively impact demand for metals, especially given the thrust on infrastructure and real estate including rural and affordable housing and the announcement of smar t cities.

Overall, the impact of the Budget on key sectors is likely to be positive, and they will be very impor tant to kick star t the country’s economic growth and move towards double digits in the next two to three years. A

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The banking industry being a crucial sector indicative of the growth of the economy, it is vital that the banks start recovering from their present weak condition. Increasing the

reach to customers and raising of FDI to 49 per cent will help.

t has been proposed that the banking and insurance industries will be reviewed,

in order to understand current trends and future outlook. There are a number of similarities between these two industries, as both are yet to reach a significant proportion of the Indian population who remain under served. Again, it is important for a large part of the Indian population to have access to banking as well as insurance products, as we move from a “developing” economy to a “developed” economy. In fact, opening up of these two sectors and bringing in vibrancy is at the top of the government’s agenda, which has also been demonstrated in the recent budget.

BankingBanking is a crucial sector that is vital for a robust economy. Banking in India is still at its nascent stages in terms of penetration — only 50 to 55 per cent of the Indian population is currently served by banks. This poses a huge opportunity for banking, not only from the business point of view, but also from the perspective that poor banking penetration is not a good sign for an economy that has been liberalising and opening up for the last two and a half decades!

The bulk of commercial banking activity in India is performed through a combination of public sector banks, which includes the nationalised banks, State Bank of India and its associates, private sector banks and foreign banks. There are more than 150 commercial banks with around one lakh branches across the country. In terms of population handled per branch, the national average works out to around 12,000, which ranges from 3,000 in well-banked cities like Chandigarh and an average of around 24,000 for “under banked” states like Bihar. At a global level, this equates to around 2,500 to 3,000 for countries like United States, Australia and Brazil, which are c o n s i d e r e d well-banked. There are also a number of regional rural banks. In addition, there are cooperative b a n k s ,

which include urban cooperative banks and state cooperative banks.

Banking assetsOver the last four years, the quality of banking assets has steeply deteriorated. This means that the profile of the banking clientele is not strong enough for the banks to ensure collection of outstanding dues. This is due to a combination of factors — funds have been disbursed to borrowers who have no intention to pay back; dilution has happened due to poor due diligence and in the interest of the bank to disburse more loans in weak economic conditions. Contrarily, it is also a fact that some good clients

have become financially weak and are unable to

pay despite having the intention to do

so, due to the poor economic c o n d i t i o n s and reducing

demand in t h e i r

I

Outlook: Banking and Insurance Industry




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AT AGLANCE

business. Banks are struggling to reduce such non-performing assets (NPA).

Raising capital to cover the potential risks the banking business poses is a major challenge, especially with Basel III regulations prescribing capital adequacy norms that translated to more than `2 lakh crore for the Indian banking industry that needs to be raised by 2018 in a phased manner. In order to achieve financial inclusion and reduce the urban-rural divide, penetration and reaching out to the “unbanked” population is a major challenge that the government and the Reserve Bank of India (RBI) are striving to achieve. Lack of skill sets is another major concern. With more banking penetration, substantial middle level and senior managers will be required, but their numbers are currently quite scarce.

AgricultureThe agricultural sector in the country is highly unorganised and least productive due to low mechanisation levels. Tractor and farm equipment is the need of the hour, which will require focused financing and addressing of affordability and mortgage issues. The banking industry could play a major role here, but unfortunately, banks are unable to get down to such a micro-level of financing.

Consumer bankingWith the growing middle class, increasing income levels and penetration of technology and handheld devices, consumer banking both in urban and rural areas is a major opportunity. Consumer banking needs to become extremely sophisticated, as the customers are dictating how they want to bank — over the counter, over the Internet, via call centres or through their mobile phones. Banks need to provide a seamless experience across all these channels. Substantial investments in

BRICS SummitPM Narendra Modi and the Indian

diplomatic delegation have attempted to fur ther India’s position in the

emerging market forum comprising Brazil, Russia, India, China and South Africa (BRICS summit). A number of MOU’s signed by member countries to fur ther trade is a positive

development. He stressed the impor tance of engagement and cooperation between the BRIC nations at a state and city level. PM Modi also highlighted the impor tance of sustainable use of

energy sources. The Indo-Russia relationship was given a boost with the friendly meeting between Modi and Putin. PM iterated that BRICS must provide a united and clear voice in shaping a

peaceful, balanced and stable world. Cooperation in confronting challenges like terrorism, cyber security and climate change was

also reiterated.

Apple IBM AlliancesApple Inc. and International Business Machines (IBM) recently announced an alliance that will use Apple mobile

products including iPhones and iPads, for the companies and their staff to access IBM software in the workplace. IBM is a major player in enterprise software that provides IT solutions to most of the top global companies. Currently, the IBM software programs are accessed by employees through their desktop or laptop computers. With the penetration of mobile phones increasing the two companies have envisaged that the alliance between IBM and Apple will allow employees to access data through their mobile devises which would be a win-win situation for the employees, IBM and Apple.

technology, cloud computing and data mining are no more a luxury, but would be basic essentials to precisely understand customer requirements and preferences and develop products to meet their precise expectations so that product development costs are optimised. Cross selling products and moving back offices to low cost destinations are also becoming inevitable for banks to remain profitable. Public sector banks are finding it extremely difficult to compete with private sector banks in a dynamic environment.

Insurance sectorThe Indian insurance industry is close to US$80 billion in size, and India is ranked as one of the largest insurance markets in the world. However, insurance penetration in India is still not more than 4 per cent, much lower than the Asian and global counterparts, demonstrating the growth potential over the short to medium term. The penetration levels in medical insurance are still ridiculously low, at less than 1 per cent.

Although the sector comprises life and general insurance, life

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insurance still constitutes a major part of the India’s overall insurance business. The growing middle class and the growing per capita income and saving levels, increasing literacy levels, exploding internet penetration and better awareness are all fuelling insurance growth exponentially.

The year 2000 saw a number of global insurance players enter India when the government opened up the insurance sector by allowing 26 per cent foreign direct investment. India now has more than 20 players, a combination of public sector and private players companies, all aggressively competing with each other. Public sector units like Life Insurance Corporation of India (LIC) still has a substantial edge over private insurers on account of 100 per cent government ownership backed by sovereign guarantee on the insurance policies issued by it. To that extent, the industry is still not a level playing field.

However, large private sector players are posing a significant threat to public sector insurers, as they bring to the table the best global practices, systems and processes, technology, management depth

and skills training to nurture a productive talent pool. The public sector insurance companies need to match up in building firm level competencies to compete head on with these large private sector players in order to remain successful. Bank-promoted insurance companies like ICICI and HDFC have been gaining enhanced penetration far superior to other insurers, given their customer relationships and aggressive marketing strategies. Moreover, the profitability of these insurers is superior to standalone insurance companies,

as they share a substantial part of their infrastructure and sales force costs, resulting in competitive advantage.

Losses incurredOne of the major concerns in the sector is the losses — with a cumulative average growth rate of close to 18 per cent over the last

12 twelve years, the players have been struggling to balance their cost structure with the size growth and revenue model, resulting in losses. In order to achieve profitable growth for long term sustainability, insurers have two key imperatives. Insurance companies need to innovate, find the right business model, reach the targeted customer in a more focused manner and precisely convey the value proposition they offer. The operations and the business model also need to be streamlined to address such exponential growth. Players need to evaluate options to

target focused customer groups or acquire competitors to establish scale as well as acquire talent and customer base.

Growing mid-sized companies are seeing the need to carefully choose a niche segment to grow faster, rather

than being present in all segments and a wide geography. Such focused strategies will help these companies to build capabilities superior to the competition that is present in all segments. Technology is also playing a major role. Internet penetration and mobile devices being widely percolated, private sector insurers are gaining significant competitive advantage by smartly deploying technologies like renewing the policy in a few clicks.

To sum up, the sector is and will continue to be very attractive and will offer an opportunity for all players. The opening up of Foreign Direct Investment (FDI) from 26 per cent to 49 per cent in the recent budget will drive more entry and also a higher level of participation from the global insurance majors. With miniscule penetration, foreign and local players will for sure enhance their stakes in the short to medium term. A

THE INDIAN INSURANCE INDUSTRY IS CLOSE TO US$80

BILLION IN SIZE, HOWEVER, THE INSURANCE PENETRATION IS

STILL NOT MORE THAN 4%.


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31

QuantDIRECTIONS for questions 1: Choose the correct alternative.

1. If y = then, for how many integer values of x is y > 0?

1] 0 2] 255 3] 624 4] Infinite

y =

Let x = p4, then the equation becomes

y = p3 + p2 – 20p > 0

–5 < p < 0 or p > 4.

Since, p takes infinite values x takes infinite integer values. Hence, [4].

2. In PQR, PD QR and QR = 2RD. The length of all the sides of PQR have integral values, with at least

one side measuring 26 units. If the area of PQR is 240 sq. units, then semiperimeter of PQR can be:

1] 35 units 2] 32 units 3] 31 units 4] 36 units

In PQR, PD QR and QR = 2RD.

PQR is an isosceles triangle.

Then either PR = QR = 26 or QR = 26

If QR = 26 PD =

But the length of PR = will not be an integer number.

Are you a Brainiac? In this section, we shall explore several different types of questions from the various areas of entrance exams like the CAT, CET, GMAT,

etc, and how to best solve them.

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PR = PQ = 26

(PD)2 + (DR)2 = (26)2 = 676

and PD x DR = 240

PD + DR = 34

PD = 10 and DR = 24 or PD = 24 and DR = 10.

semiperimeter = (a + b + c)

= (26 + 26 + 20) = 36 or

(26 + 26 + 48) = 50.

Hence, [4].

Alternatively,

After (i), consider the options.

From each option, we get the semiperimeter(s) and third side of the triangle and using the formula ;

where a, b, c are the sides of the triangle, we can check whether the area is 240 or not.

3. Sk = {(x, fk(x)); where x is a real number}; k = 1, 2, ..., n.

The function fk(x) is defined as fk(x) = xk+2 + 2yxk + xk+1(y + 2). How many pairs of the form (x, fk(x)) are

present in every Sk; where k = 1, 2, ..., n and y is some constant?

1] None 2] 1 or 2 3] 2 or 3 4] 3 or 4

If (x, fk(x)) is in both Sm and Sn (let m > n), then

(x, fk(x)) = (x, fm(x)) = (x, fn(x))

i.e., fm(x) = fn(x).

Also, m = n + p; for some p > 0

xm+2 + 2yxm + xm+1(y + 2)

= xn+2 + 2yxn + xn+1(y + 2)

xp[xn+2 + 2yxn + xn+1(y + 2)]

= xn+2 + 2yxn + xn+1(y + 2)

xpfn(x) = fn(x)

If fn(x) = 0, then xn+2 + 2yxn + xn+1(y + 2) = 0



33

xn[x2 + 2y + x(y + 2)] = 0

x = 0 or (x +2) (x + y) = 0

x = 0 or x = –2 or x = –y ... (i)

If fn(x) 0, then xp = 1 x = 1 ... (ii)

Now, if y = 0 or 2 or –1, then

(0, 0), (–2, 0), (1, fk(1)) are the only pairs that are in every Sk.

But if y 0, 2, –1 then one more pair (–y, fk(–y)) is in every Sk.

Hence, [4].

Note: fk(1) = 1 + 2y + (y + 2) = 3y + 3 constant

fk(–y) = (–y)k+2 + 2y(–y)k + (–y)k+1(y + 2)

= (–y)k+2 – 2(–y)k+1 – (–y)k+2 + 2(–y)k+1 = 0

VerbalDIRECTIONS for question 1: The following question has a paragraph with one italicized word that does not make sense. Choose the most appropriate replacement for that word.

1. The late planetary scientist and author Carl Sagan loved to describe humanity as ‘starstuff pondering the stars’, but he didn’t factor in hatred and disgust as possible conclusions. The Sun was glaring today; I found myself glaring back. Amanifally, of course; otherwise it would have blinded me just for looking at it.

(1) Metaphorically (2) Euphemistically (3) Paradoxically (4) Ironically

From the second part of the last sentence, we can infer that the author was not actually glaring at the sun, i.e., he was doing so only in the figurative sense. Only ‘metaphorically’ conveys this meaning. Euphemistically’ (meaning ‘inoffensively’), ‘paradoxically’ (meaning ‘seemingly contradictorily’) and ‘ironically’ (meaning ‘incongruously’ or ‘sarcastically’) don’t fit at all in this context. Hence, [1].

2. PRINCIPLE (1) The principle behind the machine’s operation is quite simple. (2) They have agreed to our offer in principle, but the details still need to be worked out. (3) As a matter of principle, she always makes it a point to arrive for all her appointments on time. (4) The principle cities of the country need to be well connected by road and rail.

‘Principle’ means an accepted rule. This fits the first three usages. The correct term in [4] should be ‘principal’ which means ‘main or important’. Hence, [4].

DIRECTIONS for question 2: The word at the top of the four options is used in four different ways. Choose the option in which the usage of the word is INCORRECT or INAPPROPRIATE.

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Orphans in AxonaW

ORD D

OSE

a. – An outcast

b. – A dangerous, difficult, or otherwise unfortunate situation

c. – a clever or cunning device or expedient, especially as used to trick or deceive others.

d. – felt intense dislike or disgust for.

e. – Force (someone) to leave a place.

f. – A wide search over an area in order to obtain something, especially food or provisions.

g. – A dog of no definable type or breed, can be a derogatory name for those of mixed heritage.

h. – a way in which something is usually done.

i. – excluded from a society or group.

j. – A pure-bred animal; the

recorded ancestry or lineage of a person or family.

k. – done or shown openly; plainly apparent.

l. – a large metal pot with a lid and handle, used for cooking over an open fire.

m. – took hold of suddenly and forcibly.

n. – Made (a problem, bad situation, or negative feeling) worse; aggravated.

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M AT C H T H E W O R D S W I T H T H E I R M E A N I N G S1. mongrel - (mong-gruhl) (n)

2. pedigree - (ped-i-gree) (adj)

3. pariah - (puh-rahy-uh) (n)

4. exacerbated - (ek-sas-er-beyt-ed) (v)

5. plight - (plahyt) (n)

6. conventions - (kuhn-ven-shuhns) (n)

7. artifice - (ahr-tih-fis) (n)

8. seized - (seez-ed) (v)

9. loathed - (lowth-ed) (v)

10. cauldron - (kawl-druhn) (n)

11. forage - (for-ij) (v)

12. overt - (oh-vurt) (adj)

13. ostracized - (os-truh-sahyz-ed) (v)

14. expel - (ek-spel) (v)

Orphans in Axona are like mongrels among pedigree hounds. We were near-pariah from the moment my father

passed on, and our natures exacerbated our plight.

Bird-Dog had always been a free spirit. I say this with some envy, for I never was, nor am. Conventions did not

touch her, artifice never seized her. As a child she was drawn to the bow and arrow and loathed the stove and

cauldron, much to the dismay of the Old. This was a stroke of luck for me. It meant she could forage food for us.

It meant she was as good in the fields as most young men. Bird-Dog was a born provider.

As I grew, the disapproval became more and more overt. Conversation would stop at the water well when I

approached. Shoulders grew cold when Bird-Dog passed. Noses tilted into the air, the Axona ostracized us as far

as they could. They could not expel us; we had committed no crime. But they didn’t have to like us, so they didn’t.

An excerpt from GRIMUS by Salman Rushdie



35

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A quiz to boost your General Knowledge

1. Union railway budget 2014-15 presented in Lok Sabha on 8 July 2014 by railway minister?

a. Nitin Gadkari b. Venkaiah Naidu c. Sadananda Gowda d. Harsh Vardhan

2. Name Google’s first social networking site, which it has decided to shut down from September 30, 2014 as announced on 1 July 2014?

a. Blogger b. Google+ c. Orkut d. Google Play

3. State Bank of India on 1 July 2014 launched six digital branches across the country as par t of its programme to offer next generation banking solutions. What is the name given to these digital branches?

a. SBI Digital b. sbi INTOUCH c. SBI tech d. Digi sbi

4. Which country has recently decided to “Honour ‘Mahatma Gandhi’s memory with Statue’ in front of its Parliament?

a. Canada b. UK c. South Africa d. Brazil

5. Novak Djokovic defeated who among the following to lift Wimbledon title 2014?

a. Roger Federer b. Andy Murray

c. Rafael Nadal d. Stanislas Wawrinka

6. As per the recent repor t by an exper t panel headed by former RBI governor C Rangarajan those spending over ` __ a day in rural areas should not be considered poor?

a. 47 b. 50 c. 27 d. 32

7. There were three new Supreme Cour t Judges sworn in on 7 July 2014. What is the total sanctioned strength of judges in Supreme Cour t?

a. 27 b. 49 c. 31 d. 35

8. Which team recently became the first team to reach four semi-finals in a row in the history of FIFA World Cup?

a. Netherlands b. Germany c. Brazil d. Argentina

9. The Indian Air Force on Jul 3, 2014 has launched the nation’s first 3D mobile game to encourage the youth to join the Air Force. What is the game called?

a. Guardians of the sky b. Sky security c. The Protectors d. Bravo Indians

10. Michelle Howard recently

became the first female four-star admiral in the Navy of which country?

a. Germany b. UK c. Canada d. USA

11. Which country has recently decided to issue multiple entry visas for shor t term stay to Indians?

a. Bhutan b. China c. Japan d. Russia

12. Amit Shah was recently selected as the new president of the Bharatiya Janata Par ty. Who did he succeed?

a. Harsh Vardhan b. Rajnath Singh c. Smriti Irani d. Sadananda Gowda

13. The recently released economic survey for 2013-14 has placed the economic growth in the range of _________ per cent in 2014-15.

a. 5.1 – 5.5 b. 5.5 – 6.0 c. 5.3 – 5.8 d. 5.4 – 5.9

14. Cricketer Lou Vincent who gets a Life Ban for Match-Fixing on 1 July 2014 is from which country?

a. South Africa b. New Zealand c. Australia d. England



37

15. Kamla Beniwal who was transferred to Mizoram on 06 July 2014 was earlier the governor of which state?

a. Kerala b. Maharashtra c. Gujarat d. Goa 16. Who won the recently concluded

British Grand Prix? a. Lewis Hamilton b. Nico Rosberg c. Sebastian Vettel d. Fernando Alonso

17. Telecom Regulatory Authority of India (TRAI) has recently notified that the minimum broadband speed in the country has been raised to _____ kilo bytes per second (kbps)?

a. 500 b. 256 c. 150 d. 512

18. Vishal Sikka, the highest paid IT professional in India, is the newly appointed CEO of which company?

a. TCS b. Cognizant c. Infosys d. HCL

19. Which European country has recently passed a law legalising child labour for children above the age of 10?

a. Romani b. Bolivia c. Italy d. Portugal

20. The recently concluded BRICS Summit 2014 has agreed to the formation of the New Development Bank whose primary focus will be development activity in emerging markets. The bank is to be situated in which country?

a. Russia b. India c. China d. South Africa

21. _________who recently became the all-time leading scorer in the history of the FIFA World Cup with 16 goals is from which country?

a. Lionel Messi b. Cristiano Ronaldo c. Robin van Persie d. Miroslav Klose

22. Which Sri Lankan cricketer has recently announced his retirement from test cricket?

a. Mahela Jayawardene b. Dilhara Fernando c. Tillakaratne Dilshan d. Kumar Sangakkara

23. Wroclaw city which has been named 2016 World Book Capital by UNESCO is in which country?

a. Japan b. Chile c. Poland d. Malaysia

24. Ashraf Ghani Ahmadzai is all set to be the next president of which country after winning the elections?

a. Spain b. Afghanistan c. Serbia d. Egypt

25. Sim Bhullar became first Indian-origin player to join which sport?

a. Baseball b. American Football c. Basketball d. Soccer

26. The Bor Wildlife Sanctuary which has become the country’s 47th Tiger Reserve is in which state?

a. Maharashtra b. Rajasthan

c. West Bengal d. Gujarat

27. Who won the 2014 Liber ty Medal on 30 June 2014?

a. Stephen Hawkings b. Malala Yousafzai c. V. S. Naipaul d. Salman Rushdie

28. Currently, with over 3 lakh employees, which company is very close to becoming the world’s second largest tech employer?

a. HP b. IBM c. Lenovo d. TCS

29. Who amongst the following is the author of the book ‘Economic Nightmare of India’?

a. Morarji Desai b. K. Rajeshwar Rao c. Charan Singh d. Jyoti Basu

30. Who was formally appointed the first Chairman of the International Cricket Council (ICC) in its Annual Conference held at Melbourne, Australia on 26 June 2014?

a. Haroon Lorgat b. Alan Isaac c. N. Srnivasan d. Mustafa Kamal

31. Which is the first company in the private sector in India to post $ 1 billion net profit in a quar ter?

a. Reliance Industries b. ICICI bank c. Tata Group d. Infosys

32. Nikesh Arora has resigned as the chief business officer of which tech giant to join Japan’s Softbank?

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How to PlayFill in the grid so that every horizontal row, every vertical column and every 3x3 box contains the digits 1-9, without repeating the numbers in the same row, column or box. You can’t change the digits already given in the grid. Every puzzle has one solution.Hint: Don’t fill in numbers at random. While filling a particular square, write numbers 1-9 on a pad and start eliminating those numbers that already appear in the same row, column or 3x3 box.

SuDoKu

Solution, tips and computer programme at www.sudoku.com

ANSWERSGLOBESCAN

1.c 2.c 3.b 4.b 5.a 6.d

7.c 8.b 9.a 10.d 11.c 12.b

13.d 14.b 15.c 16.a 17.d 18.c

19.b 20.c 21.d 22.a 23.c 24.b

25.c 26.a 27.b 28.d 29.c 30.c

31.a 32.b 33.d 34.c 35.a 36.d

37.b 38.c

WORD DOSE

a. IBM b. Google Inc. c. Microsoft d. HP

33. The recent Malaysian Airlines MH17 crash in which 298 were killed, occurred over which country?

a. Russia b. China c. Kazakhistan d. Ukraine

34. Which two tech giants have struck a landmark deal to develop more than 100 business apps?

a. Apple and Lenovo b. IBM and Google c. Apple and IBM d. Microsoft and Google

35. When is Nelson Mandela International Day celebrated?

a. 18th July b. 17th July c. 19th July d. 20th July

36. India has recently signed an agreement on environmental cooperation with which country?

a. China b. Russia c. Japan d. Brazil

37. The New Development Bank, which is to be launched by the BRICS nations, will be based in Shanghai. It will have India at its head for the first six years followed by Brazil and Russia each for ____ years.

a. Four b. Five c. Six d. Three

38. Which tech giant has recently announced massive job cuts in

order to trim its newly acquired mobile company?

a. Lenovo

b. IBM c. Microsoft d. Google

1.g 2.j 3.a 4.n 5.b

6.h 7.c 8.m 9.d 10.l

11.f 12.k 13.i 14.e

•CAT •CET •GMAT •GRE

Registered with Registrar of Newspapers under RNI No. MAHENG / 03 / 11493Postal Registration No.: MCN/271/2014-16 , Published on 28th of every previous monthPosted at Patrika Channel Sorting office, Mumbai-400 001. Posting date : 1st and 2nd of every month. Total pages 40

a mba august2014

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