Inscriptions 19 oct2017

WALL NO: 4 PANEL NO: 3 6th Oct 2017
INSCRIPTIONS 19
TRUTH NEVER FADES 
HIGH LIGHTS OF THIS ISSUE
1) SCULPTOR INSCRIBES: CREATIVITY: 6TH ELEMENT OF THE UNIVERSE PART 1
2) GURUS SPEAK: GROWTH WITH RISK 3RD STAGE OF FINANCIAL PYRAMID PART1
3) CATERPILLAR SPACE: MONEY TIPS BY CHANAKYA 2300 YEARS AGO BY MR MAHENDRA KAMAT CA

 
R.GOPINATH
gopinathr@go-past.com
CREATIVITY- 6TH ELEMENT OF
THE UNIVERSE
PART 1

CREATIVITY: THE 6TH ELEMENT OF THE UNIVERSE
R.GOPINATH
UNIVERSE IS CONSIDERED TO BE CONSTITUTED WITH
5 ELEMENTS. THE EARTH, THE SKY (SPACE), AIR, FIRE
AND WATER. THE 6TH ELEMENT THAT THE HUMANS’
OF THE UNIVERSE HAS DEVELOPED IS THE POWER
OF CREATIVE THINKING. THIS WILL BE THE
DETERMINING FACTOR FOR BUSINESSES AND LIVES
IN THIS MODERN ERA.

Let us start by solving some problems:
1)What is 4 + 5 = ?
2) Solve this equation also:
For the question number 1: The obvious answer is 9
The question is can you find 5 answers for the same
question?
The moment this question is raised in the class, our
participants used to answer as 3+6 or 10-1 like that. They
are correct.

But look at the following answers:
4+5 = 2.
How? Suppose you number the week days as Sunday=1,
Monday=2. Tuesday=3, Wednesday=4, Thursday=5,
Friday=6 and Saturday=7.
4 represents Wednesday add 5 days to it you will get
Tuesday that is 2.
That means now you have carried an arithmetic problem to
another field called Calendar.
4+5 = Green
How. with 4 units of yellow paint add 5 units of blue paint
you will get Green colour. So an arithmetic problem is now
carried to a field of printing and colours.
4+5 = -1
How? To a cart that is pulled by 4 horses tie 5 horses on the
other side, the movement will be 1 HP on the other
direction. So now we have carried an arithmetic problem to
field of vectors and dynamics.

4+5 = 0
How? To a group of 4 workers add 5 more persons who are
talkative, they whole group will be gossiping and the total
output in terms of production will be 0. We have now carried
the arithmetic problem to organisational psychology or
group dynamics.
In this way there can me numerous solutions to this
arithmetic problem.
Now let us look at question no: 2
The first answer that pops out is 15, but it is not the only
answer, there can be many. We will see such answers in the
next issue of Inscriptions.
SO THE FIRST ASPECT OF CREATIVE THINKING THAT
WE LEARN HERE IS THAT “ THERE CAN BE MORE
THAN ONE ANSWER FOR A PROBLEM AND THE MORE
THE ANSWERS WE CAN FIND THE MORE THE
CHOICES WE HAVE TO SOLVE IT”.

Some comments i get to commonly hear when i start a
training on Creative thinking:
1)This might be needed for artists, play writers, designers
and people like them.
2)Creative thinking is a natural ability and it can not be
acquired by training.
3)i don’t think that i can ever think “out of box”
4)Such new ideas comes once in a while by itself, by luck,
or coincidence.
While there may be some truth in these statements, they are
not always true.
Creative thinking might be more visible in the creations of a
play writer or an artist, but this ability is useful in every
sphere of life and business.
Even in a field like Law, which is operative on logics, there is
scope of creative thinking. For example an prosecutor cross
examining the accused, who he knows is lying about not
being present at the scene, uses a method called reversal.
like he insists on a time that the crime took place, that the
accused refutes it by giving the correct timing of the
incident. Earl Stanley Gardner the creator of “Perry Mason”
has demonstrated this in every one of his book.
In a kitchen, the lady finds the knife missing,
and the syrup in the vessel is boiling on the
stove, that the cut vegetables need to be put
inside it, uses a spade to chop the vegetable ( albeit not
shapely) and drop into the boiling syrup just in time.

Boys find the ball punctured, fill it with waste papers and roll
rubber bands on it to play with a home made ball.
The host has only 23 candles and it is the 25th anniversary
of the couple, makes a Roman letter XXV in a formation with
the 23 candles.
A tailor sees a wrong cut made by his assistant on a cloth
given for stitching a suit, makes a design of the cut, that the
customer finds it a nice surprise of a new design.
Right from board rooms where directors take policy
decisions to the shop floor where the worker solves a
problem, creative thinking is in play. Right from parliaments
where nation’s destiny is shaped to the farmer on the field to
the teacher in the school to the labour on the road,
everywhere creative thinking plays well.

Whenever a human is faced with constraint, his brain fights
the constraint, wriggles itself out and comes out with
fabulous solutions that the world has never ever seen.
Mahatma Gandhi entered the freedom movement of India
almost 40 years since it had begun. His belief in truth, and
his understanding of humanity, gave India a different
direction. Till then world wide struggles have been violent.
The mightier won. Gandhiji thought differently. When
people use physical might they cause pain to others. He
knew that it will cause pain even to the one who inflicts it.
Basically he also is a human being. So we will attack no
one, hit no one, but we will receive the blows, and through
our pain we will make them see their injustice.
People have never been used to this type of a struggle. For
them it has always been hit them, kill them and they will be
afraid of us and they will run away scared. But that strategy
was not working, because they were more equipped. And
the war was mostly one-sided, in their favour.
When Gandhiji launched Satyagraha, non-violence, non-
cooperation and led the struggle from the front, the armed
forces of the Raj continued their style of attacking,
lathicharging, firing on a crowd that did not hit back, but took
all the force on it. they stood row after row, when the first
row people fell unconscious, the second row came to the
front. The media captured this and made it headlines world
wide. The forces were shamed. As the protest continued,
the generals could not marshal their forces as many were
demoralised. Negotiations started, and in 1947 India got her
independence. This started a new way of struggle world
wide, countries like South Africa followed and succeeded.

Every one of us can think creatively. Because creative
thinking is one of the normal functions of our right brain.
Therefore to say that we can not think creatively is like
proclaiming that we have only one half of the brain, which is
untrue. As like any other function which is not used for a
long time takes efforts to revive again, this aspect also might
have got morphed under many other pressing functions of
the daily routine.
Psychologists and neurologists have repeatedly researched
on the functions of the right brain to understand the trigger
points and how its neuro-connections gets fired.

We will be continuing this discussions in parts in the
“Inscriptions” to follow. Keep reading so that we can
redevelop the hidden potential inside each one of us in a
scientific and systematic way.
We will also learn how to fire such creative ideas in an
organisational context from all the team members, in the
following chapters.
UNIVERSE IS CONSIDERED TO BE CONSTITUTED WITH
5 ELEMENTS. THE EARTH, THE SKY (SPACE), AIR, FIRE
AND WATER. THE 6TH ELEMENT THAT THE HUMANS’
OF THE UNIVERSE HAS DEVELOPED IS THE POWER
OF CREATIVE THINKING. THIS WILL BE THE
DETERMINING FACTOR FOR BUSINESSES AND LIVES
IN THIS MODERN ERA.

R.GOPINATH
GURUS SPEAK
FINANCIAL PYRAMID STAGE 3: GROWTH WITH RISK

PART 1

Before i venture to explain this part of the financial pyramid, i will set
out the agenda for the advisors involved in advising clients to invest
in such products:
We as advisors of such plans must follow these points:
1) Learn important ratios/indicators ( PE (Price Earning ratio), PB
(Price Book value ratio), Standard Deviation, Sharpe ratio, Beta,
Sortino Ratio, Treynor Ratio and A complete understanding of
the offer document.)
2) Determine the client’s purpose of the investment and the
amount needed to meet that goal.
3) Prepare the client for holding for a long term (over 10 year
period)
4) Explain the need to continue to invest as per the mode selected,
without being swayed by the mass opinion.
5) Ensure that he has adequate alternate means of cash/ cashable
instruments to meet emergency situations that might arise in-
between.
6) Explain the cost structure and the difference between NAVs and
the Yield (IRR).
7) Review and shifting or switching to bonds should be made as
soon as the target amount is reached by being specially vigilant
two or three years before the (Goal) maturity.
8) Therefore, please stay with the customers, comfort them and
see them through turbulent times. When they reach their
destinations, then and only then our job as pilots ends. Till that
time we will stay calm, confident and poised. They boarded our
aircraft trusting that we will assist them in reaching their
destinations quickly and safely, we will now prove that we are
worth that trust.

All the above points will be discussed in this chapter part wise. All
the ratios and indicators shown in point 1 will be detailed in the
coming parts of this chapter.
This stage of the pyramid refers to financial products that carry an
element of risk on the capital invested with a hope of getting more
yield on the money invested. These products provide an answer to
inflation and by and large expected to yield more returns. But we
must understand the capital invested is at the risk of diminishing or
even completely consumed in volatile times.
Then why would anyone take such a risk? One need to take that
risk, for not taking risk at all can be the biggest risk that one takes in
life. These instruments are meant to give adequate amount to meet
big expenses and commitments as a reward for the risk taken.
By and large a long-term holding of these assets reduce the risk
involved as they perform in some cycles and during an upward
cycle they give good returns.
The products that will appear at this stage of the pyramid are:
MFs, ULIPs, Equities, Metals, Currencies and Commodities.
Adequacy Risk: Over a period of time inflation eats into the wealth.
If on one side we work hard and save little by little like a sparrow
that builds its nest, on the other side the inflation in economy takes
away the small growth gained as interest on our savings. When the
goals have to be realised we find that money on hand is not
sufficient enough to buy those goals. We need to therefore earn a
little more yield than the inflation rate. This is possible only when we
invest in instruments like equities or instruments which carry the risk
of loosing capital but provide a chance of earning better yields. Risk
and rewards go together. MFs fall into this category.
A person skiing or skating under the professional supervision of an
expert is taking a risk but gains the thrill of adventure. But a person

jumping without aid, without a professional to help him do a jump
from a high rise building is just simply foolish.
While we need to risk the capital anticipating more yield we need to
do it under professional guidance. Assuming that we can try our
luck at it is plain foolishness. There are two aspects which are
primary in such investments. 1) Selection and 2) Staying. Both
these aspects are coloured with emotions. The vision gets blurred
when a person is either greedy or panicked. Most of the time the
Media can only add to this frenzy.
The general public at large in this country, may not have adequate
knowledge about the capital markets, their behaviour, studying
companies financial statements to make a decision about investing
and related things. MFs are very good options for such vast majority
of the people in our country. In a MFs the selection of the
companies to invest in are made by professionals who are well
educated in this aspect. Naturally one needs to pay some charges
for this advice. But then the cost of not availing a professional
service here could prove to be deadly in the end. Can professionals
go wrong? Yes, they too can.
But compared to what a layman can do, certainly a professional will
be a million times a better performer. While entrusting to a
professional we must also understand any professional in the
market can produce returns only if the market offers him. If the
market is not offering returns in a given period, then the client will
have to wait for the right time to en-cash and quit.
Please continue reading the next issues of inscriptions where we
will cover the indicators of the risk, the ratios in detail, the origin and
the functions of -MFs in India and some common aspects of these
funds.

Money Tips by Chanakya 2300 years ago
(Are they still relevant ?)
Chanakya (4th century BCE), the noted teacher, philosopher,
economist, jurist and royal advisor. authored the ancient Indian
political treatise, the Arthashastra.. He is considered the pioneer
of the field of political science and economics in India, and his
work is thought of as an important precursor to classical
economics.
Chanakya assisted the first Mauryan emperor Chandragupta in
his rise to power and establishment of the Maurya Empire. He
gave very practical guide on how a king should budget his
finances in his famous book “Arthashastra”.

He said that first of all the king should fund for the uncertainties
of the future like war, famine, flood, epidemic etc. The king
should keep sufficient reserve to face such uncertain situation
because it will be very difficult to generate revenue by levying
taxes when the subjects are suffering from such calamities.
Second, he should allocate his budget to create infrastructures
like agriculture, water bodies, education institutions, health
facilities, etc to provide future wealth generation as well as well
being of people.
Third, he should budget for present days essentials like food,
drinks, clothing, shelter etc.
Lastly, he should allocate budget for festivity like Sharad Utsav,
Vasant Panchami etc.
Remember, these tips were provided for kings like
Chandragupta who had vast resources at their disposal.
These teachings are relevant for present era to common people
like us too but actually we are doing exactly opposite to these
wisdom. We spend first on all the present days wants (not needs)
and celebrations. Most of our budget is spent on maintaining our
flashy lifestyle with costly mobiles, vehicles, cloths &
accessories, parties etc. Too many people spent money they
haven’t earned, to buy things they don’t want, to impress people
they don’t like.
After all these we are left with little to create future
infrastructure need like children education or our retirement
corpus. Both these costs are increasing at alarming rate. Present
day cost of one year of kids education is more than the entire
education cost of parent. The higher education cost is gradually
escalating from Lakhs to Crores. Besides that the rising living
cost and reducing family size is creating biggest challenge of
post retirement cash flow. But many of the families are either
unaware of the financial implications of these or left with little

surplus to create sufficient funds. We also lack long term vision
in financial planning and indulge in generating short term higher
returns from get rich quick schemes.
Top of it many of us does not even think about implications of
uncertain events like Death, Disability, Disaster or Disease on
financial future of our family. Dreams of entire family can be
destroyed by any such event.
In nutshell, You gotta do what you HAVE to do before you can
do what you WANT to do. It’s called Priority.
CA Mahendra Kamath
Life Advisor

THE AMBULANCE MAN
MR HIMANSHU KALIA IS A LIFE INSURANCE AGENT (10+ YEARS MDRT)

HE AND HIS WIFE HAVE PURCHASED 7 AMBULANCE VEHICLES AND HAVE
PRESSED THEM INTO SERVICE FOR THE NEEDY IN DELHI.

WHILE THE BANK LOANS CARRY INTEREST ON THE LOANS HE HAS AVAILED FOR
THIS PURPOSE; HIS SERVICE IS FREE FOR THE USERS.
MR AND MRS KALIA HAVE AN AMBITIOUS DREAM OF PUTTING 100 SUCH
VEHICLES TO PUBLIC USE. THE STORIES HE NARRATES OF THE PATIENTS HE
HAS CARRIED TO THE HOSPITALS IS VERY HEARTENING AND THEY BRING TEARS
TO THE LISTENER BUT WITH A SENSE OF PRIDE TO BE ASSOCIATED WITH SUCH
A NOBLE COUPLE.

THE ABC TEAM OF BARASAT ON COMPLETION OF MISSION COT TOT COURSE
MR ASIS BARAN CHAKRABORTHY AND HIS TEAM
CASE STUDY OF MR P M SAHAY
PRESENTED BY GROUPS

MASTER MENTOR COURSE FOR DEV OFFICERS AT THANE
GROUP

EXERCISE ON

AGENTS RECRUITMENT

CO CREATION

MARKETING

MODEL

BRANCH MANAGERS, AREA MANAGERS, TERRITORY MANAGERS OF SBI LIFE

SIXER COURSE AT CHENNAI
R

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S

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GROUP

STUDY

Inscriptions 19 oct2017

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