CONSULTING CLUB

EDITION 4

UNDERCURRENTS
Consulting Club of NSIT

So, the Tablet War has heated up, and with Androids competitive development, suddenly we will all be toting a tablet in our bags. Once again, all eyes will be on the iPad 3 in the coming year. Turn to page 5 for more.

The War of the Tablets: Let the battle Commence!

Euro Crisis
The black cloud hanging over the EU seems in no hurry to leave any time in the near future; making many countries bemoan at the stability of the Euro and leaving many others wondering about the probability of a double dip (after 07-08 recession).Turn to page 17 for more.

Emerging Trends in Ecommerce in India

Consumer e-commerce is becoming increasingly relevant as an efficient alternative distribution channel to reach out to the consumers, offering a unique value generating proposition for all stakeholders. Find the full story on page 11.

1 5

CONSULTING CLUB

EDITION 4

From the tweet of a Facebook freak: Is Social Media Changing Human Equations?
That we had already created our online alter egos who just wanted to elicit human response to whatever it said, thought and did, that our entire lives had suddenly started revolving around making ourselves noticed, that the social media had actually become an imperative part of our existence defining social interactions .Turn to page 15 for more.

The Curious Case of Islamic Banking: A report

Recently there has been a considerable buzz going around Islamic Banking claiming it to be more resilient than conventional banking. Sanya Chawla provides insights and in depth analysis of the concept of Islamic Banking in a well tabled report.Find the full story on page 19.

Interview: Sarvesh Gupta

Sarvesh Gupta is a 4th year ECE student who was part of the team that made to the top 15 of the Innovation tournament 2011 at Wharton Business School. Besides this he bagged a job at the putative Texas Instruments. Undercurrents interviewed him to get some insight into making of a B-plan. Turn to page 7 for more.

2 5

Editorial
Dear Readers, We take great pleasure in presenting you with the 4th edition of Undercurrents, the official mouthpiece of Consulting Club of NSIT (C2N). Every edition of Undercurrents has been an interface between the student community and the consulting world. Besides serving as a pool of knowledge, the magazine has consistently motivated the students to come up with articles of their own, and hence being a part of it. Again this year, we have come up with some great articles on issues ranging from the tablet wars to Islamic banking to the Euro crisis, and much more. In this editions interview, Sarvesh Gupta sheds some light on how to come up with an effective B-plan. Under Market watch, we trace the unprecedented growth of the e-commerce industry and some of its follies, followed by Socionomics where we discuss how social media has contorted the human equations. However, the readers can unwind through witty quotes, funny instances, cartoon strips, sharp brain teasers, and Book & Movie reviews. Since its inception in 2009, C2N has worked towards creating awareness about Consulting, and helping its members to develop acumen for the same. For the upcoming semesters the C2N seeks for greater participation from the 1st and 2nd year students. We encourage readers to read the magazine cover to cover, relishing in the veritable delight of widening your mental horizons, in exploring the magazine. This quote is actually an embodiment of what the editorial team requests all its readers focus on the journey, not the destination. Joy is found not in finishing an activity but in pursuing it. Wish you a GOOD READ Consulting Club of NSIT Email Id: consultingclub@nsitonline.in c2nmagazine@gmail.com

What is C2N? C2N is a self interest group which came into being in 2009. Its primary goal was to be a link between the students of NSIT and the consulting industry. What are the Benefits for the members of C2N? Gain exposure to cutting edge trends within the consulting industry. Awareness about plethora of opportunities available as a student. Better understanding of different work profiles, for making the right career choices Building a stronger network. Equipping the members with right tools to harness their potential, and excel in Placement interviews. What are the Activities of C2N? Weekly discussion on Case studies from Harvard Business Review (HBR) Talks by ex-members and seniors currently a part of the industry on strategy, leadership, industry trends, consulting tools, methodologies and frameworks etc. Workshops on resume building, case interviews and personal interviews to help students in preparing for the placements. Networking forum- For greater interaction between the current batch and the alumni working in the industry. How to join C2N? We at C2N have an open door policy. Any student can attend the weekly discussions on Wednesday in the Connecting block/ Block-V room no.217, and then decide accordingly if he /she wants to pursue it or not. C2N is looking for greater participation from the 1st and 2nd year students in the upcoming semesters. So all those interested can join the Consulting Club of NSIT group on Facebook or the google group- consultingclubnsit-sig@googlegroups.com You can also download the previous editions of Undercurrents http://www.nsitonline.in/students/studentinitiatives/consulting/consultingclub.html from

1 2

CONSULTING CLUB

TECHNOHOLIK By Tushar Rao

EDITION 4

The War of the Tablets: Let the battle Commence!

In 1938 Buckminster Fuller coined the term ephemeralization to describe the increasing tendency of physical machinery to be replaced by what we would now call software. Many if not most of the gadgets around us are going to be replaced by apps running on tablets. This is already evident in cases like GPSs, music players, and cameras. The reason tablets are going to take over the world is not just because of this ephemeralization, but because they have this certain force behind them. At the time of its launch no one exactly knew which consumer segment the tablet was going to fit in; some bloggers called it a larger smart phone, some considered it to be an up gradation of the net books; there was a considerable buzz for using it in educational services. In fact at the time of its release there was no real consumer market for the tablet, after all, the net book served well as an on-the-go computing device. But Apple created a desirable object that people wanted to own, and hence a market was created. All Apple fans wanted it just for the heck of having it. Since their release, tablets have indeed been the fastest growing gadget in the industry. It has reached out to millions in a very short span of time. In fact if iPad would have been a company it would already be in Forbes 50 list. Big names like HP, RIM, Lenovo, Samsung, Dell, and Amazon- all have tried exploring the market over the last two years, but Apple with its head start has created a formidable position

A Must Watch
'Inside Job' provides a comprehensive analysis of the global financial crisis of 2008, which at a cost over $20 trillion, caused millions of people to lose their jobs and homes in the worst recession since the Great Depression, and nearly resulted in a global financial collapse. Through exhaustive research and extensive interviews with key financial insiders, politicians, journalists, and academics, the film traces the rise of a rogue industry which has corrupted politics, regulation, and academia. It was made on location in the United States, Iceland, England, France, Singapore, and China. 5

2 1

CONSULTING CLUB

TECHNOHOLIK By Tushar Rao

EDITION 4

Its Industry acceptance creates major challenges for other companies which hope to cash in on the tablet craze. While some competitors are hoping that the lure of smaller size or special features will give their devices an edge over the iPad; others are targeting niche markets, including business executives and health care workers. When Apple introduced the iPad, the device quickly began to overshadow the markets for e-readers and net books. The ereader is similar in size to the iPad but was introduced as a single function device for reading books, magazines or newspapers. The iPad doesnt only have its own bookstore for ebooks, but is also a multi-function device that allows users to play games, peruse their e-mail and surf the Internet. Real competition is given by the likes of Samsung Galaxy & Xoom by Motorola to the Tablet Santa- the iPad which owns 66 percent of the tablet market. Android trails behind at 27 percent. The iPad starts at $499. While almost every device maker has mimicked Apple's price point, none have been able to mimic Apple's sales. At last count, Apple had sold 28.7 million iPads, making the iPad the clear industry leader. Now competitors in the space are realizing that in order to keep pace with Apple, they'll need to lower their prices. Significantly! No company is a better example of this trend than HP, which, after lowering the price of its TouchPad tablet by 80%, to $99, instantly saw sales figures rocketing. (Analysts estimate the now-discontinued TouchPad could soon be the second best-selling tablet behind the iPad, and HP has thus decided to extend manufacturing of the TouchPad.) Other iPad competitors must follow suit and understand that while $99 is on the extreme low end, there is no way they can ever compete with Apple on retail shelves with the same price tags hanging on their devices.

Recently Amazon released a new version of its device Kindle called Kindle Fire pricing it almost half the price of iPad. Robert Wheelers (from HBR.org) take on Fire: Its not just a low-end competitor to the iPad. There is scalable technology at its core that the presentgeneration iPad lacks the extensive use of the Cloud. That is why Amazon can get away with shipping a device that has only 8GB of memory. Whats more, the Fire has a business model advantage too Amazon is using content to subsidize the hardware. Recently an Indian company released Aakash which is claimed to be the cheapest Tablet in the world for only $ 10. However, the Tablet War has heated up, and with Androids competitive development, suddenly we will all be toting a tablet in our bags. I for one am really excited by the Android tablets that go beyond the capabilities of the current version of the iPad. Once again, all eyes will be on the iPad 3 in the coming year. Manufacturers will look at what Apple will do, and then try and come up with something better! All I can say is Let the battle commence! Good read on the caseDeloittes Press Release on the Telecom and Technology Predictions for 2011 Tushar Rao is a 3rd year student of B.E. Computer Engineering at NSIT.

CONSULTING CLUB

PERSPECTIVE By Sarvesh Gupta

EDITION 4

Tte Tte With Sarvesh Gupta

1.What prompted you to to come up with a unique idea such as Hair Twister ? Well, we were looking for an opportunity to work in a domain which tested our potential in aspects other than technical development. We didnt know that we would come up with an idea like this initially. The team Hair Twister(before it got this name..;-)) was scanning through developments in the world when we came across the deep water Horizon oil spill, or say the BP Oil Spill. We read about the Oil Spill management techniques being used to manage such a disaster and realized all the prevailing techniques were neither eco friendly, nor the spilt oil could be recovered. It was then, when we came across an article which highlighted the efficacy of human hair as an oil adsorbent. This finding triggered a common interest in the team and was followed by an intensive research about scientific facts and data which could backup our product.

2.What all competitions did you participate in? We started with the business plan competition in Sri Venkateswara College, Delhi University. It was our first attempt at presenting a Bplan and we failed miserably, luckily, because now, I can say that its only failure that compels you to think where you went wrong exactly.

Sarvesh Gupta is a 4th year ECE student who was part of the team that made to the top 15 of the Innovation tournament 2011 at Wharton Business School. Besides this he bagged a job at the putative Texas Instruments. Undercurrents interviewed him to get some insight into making of a B-plan.

Fin 101
Accountant A person who works with numbers but lacks the personality to be an economist. Bull market A random market movement causing an investor to mistake himself for a financial genius Credit Economist The preferred method of acquiring money for people who are too timid to steal and too proud to beg. An expert who will know tomorrow why the things he predicted yesterday didn't happen today.
7

2 1

CONSULTING CLUB

PERSPECTIVE By Sarvesh Gupta

EDITION 4

After this we participated in the Bplan competitons at IIT Bombay, Sri Ram College of Commerce, Bharati Vidyapeeth College of Engineering, Deen Dayal Upadhyaya College and Delhi School of Management. Our last participation was the at the Wharton School of Business, University of Pennsylvania. Well in terms of results, we won all the competitions except the first and the last, but in terms of learning, exposure and experience, we gained the most out of the first and the last experiences.

This is the part where extensive research comes into picture. Nothing is possible without a strong team, work should be divided amongst the team members appropriately and everyone should time to time motivate each other to work towards the common goal. While presenting the Bplan, the important things that should be kept in mind are: 1)Confidence. 2)Body Language.

3.Do you plan to pursue your B-plan idea, and are you looking for companies to fund your B plan ? Yes we do plan to pursue our Idea, and no, currently we are not working to look for companies to fund our product. The reason is a product like this needs investment in terms of acceptance and distribution. We would mainly be looking for tie-ups with firms working in the Oil as well as Agriculture industry to launch the product.

3)Dress code. 4)Adequate stress on factual data(with sources), scientific data that backs up the claims you make and realistic assumptions which should be backed up by logical reasoning. 5)Presentation should not be too long and too wordy. People believe the most in what they can touch, see and feel actually. What I mean is, that if you carry a prototype with you to the competition, it gives you a huge edge over the others. It conveys that you truly believe in the product and are not just making plans for the sake of the competition. That is what will make a difference between a team which wants to catch the attention of a venture capitalist and not just the judges.

4.What are the key components of a B plan and do mention some tips for effectively writing one. And focus on explaining its presentation skills as well. Well, the most important component of a B-Plan is trust in your product/service. You should yourself be convinced from the core that the plan will work once implemented in the right manner. It is very important to keep the attitude right, each and every perspective is important and you should be in the learning phase always, so that you keep on improving your plan with time. 8 8

5.You made it to the top 15 of the Innovation Tournament 2011 at Wharton Business School. How was this incredible experience? Well, being the youngest people selected among the worlds most innovative entrepreneurs was a

2 1

CONSULTING CLUB

PERSPECTIVE By Sarvesh Gupta

EDITION 4

great feeling. We got to present the idea at a Global Event which was streamed live all over the world. We interacted with people coming from different domains with brilliant ideas and years of experience. Our competitors were PhD graduates from MIT who had been executing their projects in Tanzania for 2 years, there was a Scientist who had 27 patents filed in his name and had applied for 14 others, media reporters who had innovated a software by studying behavioral patterns in Afghanistan and many others. So when you interact with such people around you, you realize that the bigger picture is something far more exciting than just the competition. The panelists were industry experts, who, while discussing our case, made us aware of perspectives we never thought about. They were more like mentors who guided us keeping the industry requirements in mind and told us how we should proceed further. So, in all, it was a learning experience, it was not just a competition, but an opportunity that luckily came across our way, and we tried to gain most out of it.

My work at RBS required me to develop SQL codes to generate EOD reconciliation reports for the various systems. Without going into the details of the work I would say that the 2 months were very important for me in shaping up my career. Not because I got industry/corporate experience, but because I realized what I did not want to do as a job in my life. But to gain this out of the internship, I tried my best to give my 100% to the project assigned (which might be the reason behind being offered the PPO). I had lots of fun with the team I worked with and make lots of great friends at work. I learnt from this experience that you wont always get what you want from life. Things often wont work the way you want them to be, but just keep giving your 100%, that is the best thing you can do, and your friends are the best support systems when you are stuck in a poor situation, so kudos to all of them !

6. Tell us briefly about your intern experience at RBS (type of work, PPO) Internship at RBS happened because I wanted to try myself in the finance domain. Before taking up a job, I wanted to explore as many fields as I could so that I could place myself in appropriate kind of work. In my interviews I even highlighted that I may not be as efficient at writing codes as my competitors and I am looking forward to work more related to Finance. As a result I was given Coding but that was SQL, database management. So neither could I learn something really new and challenging in terms of software, nor was I exposed to the finance domain.

7.Please shed some light on your job profile at Texas Instruments and your future plans. My job designation when I will join TI will be Technical Sales Associate, which would change to Technical Sales Engineer after my training is complete. As per my understanding the profile expects me to have a proper understanding of the range of products being offered by Texas Instruments, and I would be the companys sales representative who would be responsible for maintaining and developing new relationships of the company with clients/customers

1 2

CONSULTING CLUB

PERSPECTIVE By Sarvesh Gupta

EDITION 4

Positives for me : Keeps me in touch/updated with my technical domain, working with one of the best players in the industry, lots of travelling involved and interaction with people. There are no fixed future plans as of now. One thing I am sure about is that I want to do post graduation, but in what field, ie. Either MBA/MS will be decided only after I gain some experience and know what I really want to do in my life.In case I start up my own venture, I think it would be better to invest the money into the venture rather than spending on a degree course. ;-) As they say, experience is the best teacher.

internships with banks and institutes like RBI. One can involve oneself with intense mathematics under the guidance of professors which would definitely help in applications to universities for higher education. NSIT offers placements in all possible domains, companies like Futures First, Barclays, EVS and many more offer profiles in the finance domain. But most importantly, NSIT has a few alumni who have moved into top universities/companies to pursue their careers in finance and economics domain, the best opportunity is to network with them and talk to them.

8. What are the opportunities for an Engineering student at NSIT who is interested in economics and finance besides going for CAT ? Well, to move into finance and economics domain, one can always pursue his interests by trying his hands at exams like NCFM, doing

Solve Me
You have Some Terminal Condition, which necessitates taking two pills a day: one Pill A and one Pill B. If you neglect to take either pill, you die; if you take more than one A or more than one B, you die. If you dont take them at exactly the same time, you die. This morning you are going through your usual routine. You pick up your bottle of A Pills and gently tap one into your palm. Then you pick up your bottle of B Pills and tap it, but two pills accidentally fall into your hand. You now hold three pills (one A and two Bs), you dont know which are which, and they are completely indistinguishable from each other. The A Pills are the same color as the B Pills, they are the same shape, same size they are identical in every respect. You cannot waste any pill because its very costly. Thus, the puzzle: what can you do to ensure that you take only one A Pill and only one B Pill today, without wasting any pills (either today or in the future)?
10

10

2 1

CONSULTING CLUB

MARKET WATCH By Tanuj Bhagat

EDITION 4

Emerging Trends in E-Commerce In India

The evolution of the E-commerce industry has brought about a veritable revolution in the way businesses buy and sell products and services. There is a paradigm shift from the conventional paper based transactions to fully electronic transactions and e-commerce in general is transforming businesses, by reducing transaction costs ,breaking down geographical barriers and reducing operational expenses. The Indian ecommerce industry is attracting a lot of vendors to its virtual reality. From being a niche activity five years ago it is becoming increasingly mainstream. In its second coming in the country, e-commerce market is growing at a frantic pace, and is estimated to be worth Rs.46,520 crore in 2011. India, with a population of over 1.2 billion, has over 100 million Internet users which offers enormous potential for the growth of the e-commerce industry. The current e-commerce user base is
11

estimated at around 10 million people. Against the total retail sales in India at around $395 billion now, online sales stand at $400 million. Although online retail or e-shopping constitutes a minuscule proportion of the total retail pie in India, is still growing at 40 per cent annually. A host of retailers sprung up over the past few years as for example flipkart.com,myntra.com ,makemytrip.com, snapdeal.com,letsbuy.com and many more. In India, travel is leading the way in the ecommerce industry and accounts for 80% of the total revenues and is building user confidence. Shopping has followed travel, and is increasing its presence at an exponential rate. The growth of the travel industry is fuelled by the fact that it does not involve physical delivery of goods and thus is free from the hassles of meeting delivery 11

1 2

CONSULTING CLUB

MARKET WATCH By Tanuj Bhagat

EDITION 4

schedules, providing service guarantees etc. The middle class in India is taking giant strides forward, with money in their pockets and an increasing propensity to consume and hence the online retail sector is poised for escalating growth. B2C e-commerce In this case the seller is a business organisation

whereas the buyer is a consumer. This emulates the situation of physical retailing and so it is commonly called electronic retailing. It involves customers gathering information; purchasing physical goods (i.e., tangibles such as books or consumer products) or information goods (software, or e-books). It is the second largest and the earliest form of e-commerce. Thus, the more common B2C business models are the online retailing companies such as Amazon.com, flipkart.com, makemytrip.com etc. B2C e-commerce reduces transactions costs (particularly search costs) by increasing consumer access to information and allowing consumers to find the most competitive price for a product or service. B2C e-commerce also reduces market entry barriers since the cost of putting up and maintaining a Web site is much cheaper than installing a brick-and-mortar structure for a firm. C2C e-commerce This refers to situations where both seller and the buyer are consumers. This type of ecommerce is characterized by the growth of electronic marketplaces and online auctions. With the advent of e-commerce, on-line auctions provide an effective means for supporting C2C ecommerce. eBay the most popular form of C2C e- commerce provides the worlds largest online trading service by means of online auctions. Basically, a user places an item on the eBay Web site for bidding. Other interested members then bid for it before the deadline. By redefining customer convenience and offering a wide array of choices at lower prices the e-commerce industry has reinforced the notion that the consumer is king. Transparent and competitive pricing often leads to a direct cost saving for the consumers. Apart from this,

The major different types of e-commerce are: business-to-business (B2B); business-toconsumer (B2C) and consumer-to-consumer (C2C). B2B e-commerce B2B e-commerce is simply defined as ecommerce between companies. This is the type of e-commerce that deals with relationships between and amongst businesses. About 80% of e-commerce is of this type. This model defines that Buyer and seller are two different entities. It is similar to manufacturer issuing goods to the retailer or wholesaler. Terms like offshoring and outsourcing are generally associated with B2B Ecommerce.

12

12

2 1

CONSULTING CLUB

MARKET WATCH By Tanuj Bhagat

EDITION 4

there are indirect cost savings such as in travel expenses and arranging for physical delivery. E-commerce has proved to be highly cost effective for business concerns as it cuts down the cost of marketing, processing, inventory management, customer care etc. It also reduces the burden of infrastructure required for conducting business. The foremost advantage of e-commerce is that it empowers the business to reach a large number of consumers and cater to their demands irrespective of their geographical location. E-commerce allows people to carry out business without the barriers of time or distance. One can log on to the Internet at any point of time, be it day or night and purchase or sell anything one desires at a single click of the mouse. Providing the consumer with a larger catalogue or rather a discounted catalogue that is unavailable in brick and mortar retail stores in India is another encouraging point for consumers buying online. It gives customers an opportunity to look for cheaper and better quality products as it offers a myriad of options

and a multitude of online sellers to choose from. This allows consumers to evaluate the best possible product efficiently. Besides, transparent information helps in easy and effective decision making. The relative importance of these benefits varies across consumer segments and product categories. The biggest snag holding back e-commerce for years was a lack of trust. Credit card fraud is still acting as deterrence to the e commerce sector. Although the E-Commerce companies are leaving no stones unturned to ensure that the consumers have a great experience by providing a choice of Payment Gateways as well as the flexibility to pay cash on delivery, replacement guarantees etc, they still face a lot of challenges that prevents them from realizing their full potential and restricts their future growth. The major disadvantage of e-commerce is the limitation of the Internet, as it still has not touched the lives of every individual. Lack of knowledge restricts a large number of people from using the internet and understanding online

13

13

2 1

CONSULTING CLUB

MARKET WATCH By Tanuj Bhagat

EDITION 4

transactions. Lack of adequate connectivity infrastructure and country wide efficient supply chain providers makes matters even worse: This includes non delivery, late delivery, lack of service guarantee and quick and effective solutions of consumer grievances. In India, the current connectivity infrastructure available to the consumers in terms of quality and cost is a major impediment for the growth of consumer ecommerce. Despite the above problems, the E-commerce industry has shown unprecedented growth. Even though internet penetration in India remains minimal at about 8 per cent of the population, ecommerce will continue to prosper and can expect robust growth. The low cost of the PC and the growing use of the Internet is one of reasons for that. Consumer e-commerce is becoming increasingly relevant as an efficient alternative distribution channel to reach out to

the consumers, offering a unique value generating proposition for all stakeholders. Ecommerce is one of the most important facets of the Internet to have emerged in the recent times but will it bring about a transformation of society that is as profound as the industrial revolution is yet to be seen. Whether it is here to stay only time will tell, but it is certainly back with a vengeance!
Tanuj Bhagat is a 3rd year student of B.E. (Manufacturing Process and Automation Engineering) at NSIT.

Laugh-a-thon

A Good Read !

14 14

2 1

CONSULTING CLUB

SOCIONOMICS By Vikram Juneja

EDITION 4

From the tweet of a Facebook freak: Is social media changing human equations?
One thing is clear now! Even the naysayer has now taken to social media. I can just imagine how this particular form of communication has changed our lives and made voyeurs and exhibitionists of us all. The level of addiction to such a medium has increased to levels bordering on mania. I still remember when Delhi was jolted by mild tremors; I hadnt yet recovered from the trauma of what could have been our apocalyptical end, when I see my friends tweeting and updating their facebook status just a millisecond after it all happened. That people were willing to risk their lives to make themselves noticed and gratify themselves with their friends repartee lest a second tremor awaited, really baffled me ! And who am I to point fingers when I was myself a part of the frenzy commenting and liking comments on how my virtual followers had experienced a near death experience! That we had already created our online alter egos who just wanted to elicit human response to whatever it said, thought and did, that our entire lives had suddenly started revolving around making ourselves noticed, that the social media had actually become an imperative part of our existence defining social interactions had now rather palpable. The tweeple have become extremely uninhibited in their expression, so much so that we have a pregnant lady tweeting from the time she was in labour to the time when she asks her followers to name her new born! And the weird part is people are actually more than willing to pay heed to her eccentricities! However while the rest of us mere mortals are willingly playing stickler to our online obligations and freely expressing our thoughts and views, likes and dislikes, and thrusting our opinions on the rest of the online community, there is yet the curious case of our politicians whose freedom of speech is stifled lest they speak anything that perceptually goes against the ethos of the party or people they represent. From Shashi Tharoors infamous cattle class comment to Omar Abdullahs twitter gaffe, has made the Indian political class rather skeptical about its purpose. What they 15

15

2 1

CONSULTING CLUB

SOCIONOMICS By Vikram Juneja

EDITION 4

dont realize is that they eventually loose out on a greater chunk of the audience who might be receptive to their thoughts and actually appreciate their interaction with their electorate. In my view instead of Mr. L.K. Advani embarking yet again upon his monumental rath yatras to promote national integration and wasting crores of rupees on his entourage and fuel expenses, he could easily have made a video propagating his agenda and interacting with the youth via facebook and twitter. This specially holds true when a song like kolaveri di did more to bridge the cross cultural divide than did any of these yatras and the nearly 3 crore views stand testimonial to the fact that social media is now the most powerful tool to propagate agendas. It does hold the power to change the way politics may unfold in India. But the skepticism of the politicos is a major hurdle in its growth. They equate it to a fantastic lunch with the tiger which is going to ultimately devour any prospects of their election. I agree that it is a forum for ego slay out in public domain wherein the pockets of the infuriated junta may rip their reputation apart, yet what is interesting is that their followers will always be directly proportional to their controversy. Espousing Harry Trumans attitude that I was never hurt by something I never said would rather sum up my intent. A particular case in point would be Indian ambassador Nirupama Raos regular intimation to the Indian public about rescue efforts planned by the Indian embassy to save the NRIs fleeing Libya during the episodes of the Benghazi violence. Her usage of twitter as modo de comunicacin in dispensing official announcements was lauded by the media and the public alike. The online population may comprise mostly the young & the middle aged and internet penetration may just be 4 % of the 1.2 billion but what is significant is the impact these 4 percent have on the public perception and in molding public opinion. When we have always referred to the youth as harbingers of 16

change, how can political parties expect to ignore their voices? We possess the power to cause the government to pay heed to our demands as was apparent in the case of the Jan lokpal movement where social media was instrumental in coordinating and stirring national passions, causing the youth to metamorphosis into non violent protesters akin to freedom fighters fighting for a common cause. We have have got the privilege to be online shenanigans as we dont always need to go at Jantar Mantar for holding dharnas; all we need is a facebook account .We however also do possess the power to hold flash mobs on railway stations and markets across the cities! And yet the single largest denominator is the social media which helps us connect and feel the pulse of protest, elation, sorrow and frustration!!! I wait for the day when they convert facebook and twitter to regional languages so as to pervade all sections of the internet audience. While cynics may say that social media taps into urban loneliness forming a leveling universe forum where writing to a disembodied somebody gives us a false sense of community and kinship, I say that they make for an online extended family where one can truly be ones true self shedding his inhibitions without constant judgment of his flaws; a place wherein one can connect to his fellow like-minded brethren and vent out his disillusion, frustration, elation and above all ones passions.

Skeptics who are always leery of the purpose of social media interactions say they dont have time to tweet; however social media freaks like me proudly say we have time for nothing else! ;) Vikram Juneja is a 3rd year student of B.E. Biotechnology Engineering at NSIT.

16

2 1

CONSULTING CLUB

Learn With UC By Nilayan Das Gupta

EDITION 4

Wall Street and the Euro Crisis

The Euro crisis has worsened over the past few years. The black cloud hanging over the EU seems in no hurry to leave any time in the near future; making many countries bemoan at the stability of the Euro and leaving many others wondering about the probability of a double dip (after 07-08 recession). Greece remains the most culpable figure till date. It has an outstanding public debt of more than 350 billion Euros which is more than 160% of the countrys GDP (while the conventional limit for a country to be a legitimate member of the Euro is around 60%). So how did this all happen? According to the Maastricht treaty of 1992 any country wanting into the Euro would have to satisfy the following criteria: Budget deficit less than 3% of GDP Debt/GDP ratio of less than 60% Low inflation Interest rates close to EU average

Also severe fines and punishments were promised for flouting these norms given that a country was already a member of the Euro. The entry of Greece At the time of Greeces entry into EU it satisfied all the above criterias. However it was later revealed that major part of the Greece debt had been hidden from public view at that time through the issuance of various derivatives in accordance with various investment banks, most prominent amongst them being the Goldman Sachs.

UC Recommends
This tech-world biopic traces the fortunes of personal-computer companies Apple and Microsoft from their obscure dorm-room and backyard origins to their very public battle for corporate supremacy. Writer/director Martyn Burke follows the parallel lives of Microsoft founder Bill Gates (Anthony Michael Hall) and Apple cofounders Steve Jobs (Noah Wyle) and Steve Wozniak (Joey Slotnick). The former plot thread recounts how Jobs and Wozniak "borrowed" key concepts from a Xerox computer lab, eked out their success as countercultural businessmen, and finally fell out with one another over the pressure of success. The latter thread focuses on the way Gates learned from, then surpassed, the brains behind Apple and turned his company into the global powerhouse that it is today. Based on Paul Freiberger and Michael Swaine's Fire in the Valley: The Making of the Personal Computer, the film actually focuses only on that book's final chapters. 17

17

2 1

CONSULTING CLUB

Learn With UC By Nilayan Das Gupta

EDITION 4

How did Goldman Sachs come into the purview? GS entered into a deal with Greece that provided it with surplus cash on its hands at that precise moment to hide its budget deficits. Moreover the deal i.e. a cross-currency-swap didnt come as a loan or a debt to the Greece government but more of a currency trade which fooled investors and creditors into believing that the Greece economy was stable and well functioning and in return encouraged the Greece plutocracy to go on a spending spree followed by a borrowing spree, hence aggravating the already impending debt crisis. What is a currency swap? A cross currency swap is when two different parties enter into an agreement to trade principal and interest on that same principal in two different currencies. The trade-off can be based on fixed or floating rates.

Thus Greece which entered into a crosscurrency swap with Goldman Sachs stood to lose out in the long run as it had to pay back the whole amount in the future, maybe even at a higher exchange rate. Since the cross-currency swap is a perfectly legal way for banks and hedgers to earn money, there is nothing EU can do to suggest that Greece was connived into the deal with Goldman Sachs which ultimately led to this crisis. As more of such deals are coming into light lately the confidence of creditors and investors in the Euro is plummeting rapidly. There are further talks about Italy being in such a deal with JP Morgan and Chase. These could propel further trouble for the third largest economy in the Euro and hence pave the way for final blow to an already weakened Euro.

Lets suppose party A agrees to pay 10 million $ in exchange for 6 million from party B. If the both parties follow fixed-fixed rate mechanism then after a duration of say 6 months they are both obliged to pay interests on the principal upon an pre-agreed rate and according to the currency valuation which was prevalent at the time of signing of the deal between the two parties: And hence fixed-fixed currency swap. If one of the parties follows a floating rate then whole mechanism is referred to as a cross currency swap. 18

For more news and explanations on the Euro crisis and other topics of contention visit newsmadeasy.wordpress.com a sincere effort by me and my friend Arjun Singh to explain what flummoxes many. Nilayan Das Gupta is a 3rd year student of B.E. electronics and Communication Enigineering at NSIT.

18

2 1

CONSULTING CLUB

REPORT By Sanya Chawla

EDITION 4

Report: The Curious Case of Islamic Banking

Recently there has been a considerable buzz going around Islamic Banking claiming it to be more resilient than conventional banking systems. These Islamic banks were surprisingly unaffected by the sub prime mortgage crisis; rather many non-Muslims are now turning to Islamic banking , as those who were spooked by the turmoil in the Western Banking System feel that perhaps these banks are safe havens because they remained immune during the crisis. Islamic Banking System has been gradually gaining foot holes in many countries. But heated arguments have been going on whether this system would be more stable than the traditional banking system. Not surprisingly India too has been drawn into the debate. Arguments for both sides have been made by economists and political leaders. So what exactly is Islamic Banking? Some of the most famous investment banks in the world, such as Goldman Sachs, Lehman Brothers and Rothschilds are of Jewish origin. Shylock, in the Merchant of Venice, was a Jew. This is for a specific reason for a long time, Christianity prohibited the charging of interest, and hence, Jewish establishments which offered banking and financial activities flourished. The story of Islamic finance is similar. It refers to a system of banking or banking activity that is consistent with the principles of Islamic Laws (Shariah). What is the most unique about Islamic banking is that it denounces the very idea of interest rates, and rests on profit-sharing principles. Based on the Shariah law, it abhors the business of making money out of money, upholding the belief that wealth is generated through actual trade and investment. The Islamic law (Shariah) prohibits taking or giving interest (Riba) , which is the most essential feature of Islamic banking.

19

19

CONSULTING CLUB

REPORT By Sanya Chawla

EDITION 4

Profit sharing and fee-based financing approaches have developed in compliance with Shariah laws. Islamic Financing prohibits investment in businesses dealing in alcohol, drugs, gambling, armaments, etc. which are considered unlawful or undesirable (Haram)

Say, a customer buying a home with bank funds, will not borrow from the bank and service it through equal monthly installments. Instead, the bank will purchase the property and then rent or lease it out to the customer. Once the bank recovers the investment, it will transfer the property to the customer at a reasonable rate. Financing options in Islamic banking include: MURABAHA : COST-PLUS FINANCING

As a financing technique, the murabaha involves an Islamic bank (or any other financier) purchasing assets required by the client from a seller. The assets are then sold to the client with a mark-up or margin. The payment of the acquisition price by the client to the Islamic bank is usually made on an installment basis.

QARD-AL HASSAN

This is a loan extended on a goodwill basis, and the debtor is only required to repay the amount borrowed. However, the debtor may, at his or her discretion, pay an extra amount beyond the principal amount of the loan (without promising it) as a token of appreciation to the creditor.

20 20

CONSULTING CLUB

REPORT By Sanya Chawla

EDITION 4

IJARA

In practice, the ijara is often used by Islamic banks in order to acquire an asset on a client's instruction and then lease it to him over a specific period of time. It enables Islamic banks to enter into profitable ventures and avoid the prohibition of riba by charging rents instead of interests. Other options include Mudaraba( profit sharing),Al rahn( short term financing), kafala(guarantees), Sukuk (Islamic bonds),etc.

In the past few years, Islamic banking grew worldwide by 15 percent a year, and today has an estimated value of about 800 billion US dollars. Islamic Banking is not only restricted to about 1.5 billion Muslims; indeed even non-Muslims can profit from the advantages of Shariah-compliant banking. Most of the banks offer their services to non-Muslims as well. People often see Islamic finance as being simply an interest free financial system, which is not entirely accurate as it also involves other important principles, which encourage entrepreneurship, risk-taking, transparency, preservation of property rights and ethical values such as justice, fair dealing and fair pricing, mutual cooperation and respect of the other contracting parties. Islamic banking interestingly helps the weaker and even the weakest sections of the society through various ultra modern financial products. Under Islamic finance, genuine business proposals fetch credits with no risks and irrational projects finds difficult to get finances.

21 21

CONSULTING CLUB

REPORT By Sanya Chawla

EDITION 4

How is an Islamic bank different from a non Islamic bank? First of all, in its mission and objectives: because Islam is the backbone of Islamic banking, moral principles and objectives play a more important role in the operations of an Islamic bank than in a non-Islamic bank. In its products an Islamic bank offers no interest-bearing products or services, for example, and is more oriented towards risk-sharing products. Third, in its organizational structure and corporate governance: Islamic banks have an Islamic (religious) board, to ensure that the banks practices are in line with the Shariah, and a strong social solidarity division. Conventional banks as opposed to Islamic ones do not share losses nor do they take such risks. They have no interest on how the business is run; while the Islamic bank is directly involved in the proper functioning of the business. What does Islamic Financing mean for India? Islamic Banking has a huge market potential in India as it is the third largest Muslim populated country. It can address the long drawn issue of Financial Inclusion. It will promote a feel good factor and a sense of belongingness amongst the Muslims Indian government can also gain diplomatic advantages to make financial dealings with Muslim nations India can attract equity finance from Gulf countries for infrastructural development, thereby financing the fiscal deficit.

22 22

2 1

CONSULTING CLUB

REPORT By Sanya Chawla

EDITION 4

Islamic banking is currently not allowed under Indias banking act, but it is allowed through the non-banking financial institution route. Although an RBI (Reserve Bank of India) study group had rejected the concept of Islamic banking, it got the backing of the Raghuram Rajan committee on banking reforms. However, to introduce Islamic Finance and Banking in India, we have to: (1) Undertake regulatory changes in the Indian Banking Acts, and (2) Create awareness among Muslims and Indians as a whole. It is quite interesting that the values of interestfree Islamic banking are finding greater recognition in the world. China, the largest emerging economy in the world which has around 80 million Muslims, recently gave its first license for Islamic banking to the Bank of Ningxia. Like other emerging countries, India should

also realize that the untapped potential is truly vast. Major Banks should therefore go into a self introspection mode and ask themselves a critical question: given the appeal of Islamic banking both to members of the rapidly growing Islamic faithalready 1.6 billion strongand to non-Muslims alike, can the opportunity to pursue this business really be ignored? But this is also true that Islamic banking has to be positioned as professional banking and not religion-based banking, which can have serious political implications. The Indian capital market is the most liberalized in the world with good financial infrastructure and thus offers great promise for the development of Islamic financial services. Sanya Chawla is a 3rd year student of Computer Engineering at NSIT. B.E

UC Recommends
Too Big to Fail - The Inside Story of how Wall Street and Washington Fought to Save the Financial System - and Themselves, by Andrew Ross Sorkin, a New York Times financial journalist, is a long, but fascinating story about the collapse of the U.S. and global financial markets in 2008. The book was written based on interviews the author conducted with the major players in the financial crisis. Too Big to Fail is actually a thriller about a time in America's financial history when our entire economy could have crumbled and almost did. Greed, the hunger for power, the hunger for money, and the lack of financial regulation all led to the financial collapse. You will see inside the egos of the cast of characters including the politicians involved.If you want to truly understand what happened when our financial system failed and the economy went into a deep recession because of it, read this book. At the end, you will be astonished and amazingly well-informed. 23 23

CONSULTING CLUB

FREEDOM FROM ECONOMICS

EDITION 4

5 6 7 4 8 1 10

ACROSS 1.Christmas Hater 2.Under the tree 4. One of Santa's Reindeer 5. Christmas Drink 7. Shiny Thin Tree Decoration e 9.Santas Home 11. Deck the halls with boughs of ... 12. To the world DOWN 2. ...were hung by the Chimney 6. Santa's Helpers 8. Circular Tree Branch 10. kissing under the...

11

12

INTERESTING CHRISTMAS FACTS

Oliver Cornwell, the leader, stopped the celebration of Christmas during 1647- 1660. According to him it was immoral to celebrate the holiest day of the year. It was a criminal offence. He or she could find him or her behind the bars if he/she was found guilty of celebrating Christmas. Before turkey, the traditional Christmas meal in England was a pig's head and mustard. The Greeks celebrate Christmas on January 7, according to the old Julian calendar, while Xmas presents are opened on New Year's Day. The song Jingle Bells was written by James Lord Pierpont and published under the title "One Horse Open Sleigh" in the autumn of 1857. Even though it is commonly thought of as a Christmas song, it was actually written and sung for Thanksgiving Boxing day - The day after Christmas Day was traditionally when churches opened their collection boxes to distribute the cash to the poor.In the 1800s, when Queen Victoria was 24 the throne, Boxing Day was also the day that some rich on people would hand over boxes of gifts to the poor.

24

CONSULTING CLUB

FREEDOM FROM ECONOMICS

EDITION 4

BRANDS of the WORLD

Enjoy the crossword below and get to know your favorite brands better.

Across: 1. _________ was created in 1996 under the name BackRub. 3. Korean company meaning Great Universe 4. Yet Another Hierarchical Officious Oracle 6. _______ originated in 1893 under the name of Brads Drink. Down: 2. Lucky+_________ = LG 5. Service Games 7. Bringing Enjoyment and Quality to life

An Interesting Anecdote
Three lawyers and three engineers are traveling by train to a conference. At the station, each of the three lawyers buys a ticket while the three engineers buy only one ticket. How can the three of you travel on one ticket? asks a lawyer. Watch and youll see, answers an engineer. Aboard the train the lawyers take their respective seats while all three engineers cram into the restroom and squeeze the door closed behind them.When the conductor comes around collecting tickets, he knocks on the restroom door and says, Ticket, please. The door opens a crack and a single arm emerges with a ticket in hand. The conductor takes it and moves on. The lawyers are impressed with this clever idea. One the way home from the conference, they decide to copy the engineers technique. At the station, they buy a single ticket for their return trip. To their astonishment, the engineers dont buy a ticket at all! How in the hell are you going to pull this off? asks a lawyer. Watch and youll see, answers an engineer. They board the train. The three lawyers cram into one restroom and the three engineers cram into the other restroom.

25 Shortly after the train departs, one of the engineers leaves his restroom and knocks on the other restroom door. Ticket,please!

25

CONSULTING CLUB

FREEDOM FROM ECONOMICS

EDITION 4

Keys to Crosswords

Answer to Brainteaser after Perspective Break each of the three pills into half. Take the 3 halves along with one half of an A pill, that would make 1 A & 1 B pill. Next day take all the remaining halves (3 halves from the mixed pills + 1 half of A pill left)

26 26

CONSULTING CLUB

FREEDOM FROM ECONOMICS

EDITION 4

Baffling Mysteries
John F. Kennedy Assassination Majority of the Americans are convinced that Lee Harvey Oswald could not have acted alone and that the way they explained it was not how the assassination could have been carried out. This unsolved mystery remains the darkest and most vivid stain on the record of American Intelligence and American democracy, or the lack of it since it is alleged that the President could have been done away with for going against the wishes of those in power

Shroud of Turin Held in the cathedral of St. John the Baptist in turn, Italy, this piece of linen cloth has imprinted on it the image of a man who probably died of cruxification. It has been long believed to be the cloth Jesus Christ was buried in after his cruxification. Since there is no proof of this latter belief, the shroud still remains an explained piece of linen. Scientists have failed to explain how or when the image could have been imprinted on the linen.

Carnac Stones Everyone has heard of Stonehenge, but few know the Carnac Stones. These are 3,000 megalithic stones arranged in perfect lines over a distance of 12 kilometers on the coast of Brittany in the North-West of France. Mythology surrounding the stones says that each stone is a soldier in a Roman legion that Merlin the Wizard turned in to stone. Scientific attempts at an explanation suggests that the stones are most likely an elaborate earthquake detector. The identity of the Neolithic people who built them is unknown. 27 27

CONSULTING CLUB

FREEDOM FROM ECONOMICS

EDITION 4

2011 The Year Gone By

28 28

Want to Contribute?
Send us articles at c2nmagazine@gmail.com on the topic you love to write on and be a part of the next edition of UNDERCURRENTS. EDITORIAL TEAM: Vikram Juneja vkrmjuneja1990@gmail.com, 3rd Year Tanuj Bhagat tanujbhagat@gmail.com, 3rd Year Samarth Shah shah.samarth@gmail.com, 3rd year ADVISORS: Anupriya Chauhan, 4th Year Shubham Shukla, 4th Year

For updates and latest happenings in Consulting Club of NSIT, please join the Google group - consultingclubnsit-sig@googlegroups.com.

29