Category Archives: Finance

Road to London #2 – A Unique Attempt

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I am writing to request your thoughts, comments, blessings, cooperation and support in an extraordinary adventure that I plan to undertake…

…that of self-driving a distance of 20,000 kms from Mumbai to London, over 68 days through 16 countries and 100+ cities!

…that of chaperoning my 9-year old grand daughter along with my 63-year old wife through a long, once-in-a-lifetime journey covering off-beaten tracks, rugged mountains, deserts and sand dunes, dense forests and snow, high altitudes, heritage sites, highways and cities!

Before you say more about risk and raise concerns (and thank you for that!), please rest assured that this is not my first endeavour into adventure (my close family will attest to that!). I have been an adventure-thrill seeker through my life, especially after the age of 45

  • At the age of 70, in 2015, I self-drove 8+ days through Iceland’s rough and risky terrains, with my wife and then 7-year old granddaughter. This included some glacier walking as well as snow mobil-ing.
  • At 65, I organised a group of 90 pilgrims to Kailash-Mansarovar for a charitable purpose. It is a journey many dream to accomplish at least once in their lifetime. It is also considered extremely difficult and life threatening.
  • In 2009, my wife and I were the first Indians to land at 90° North and float on a sheet of ice. There is nothing to it’s north and that spot on earth has no longitude, no time-zone.  It was all to experience the place where the Sun and the Moon rise and set, only once a year!  We were on the only nuclear powered vessel capable of navigating to this place.
  • We also challenged ourselves to participate in the ritualistic “polar plunge”. Not stating the obvious, but this act is considered (silly and) fatal if one stays in for more than a few seconds.
  • In 2008, at 63, Mr. Peter Hillary, Edmund Hillary’s son personally inspired me to take the Mt. Everest Base Camp trek, considered demanding and deathly. I trekked with only one sherpa for company (i.e. it was not an organized group tour).
  • In 2005-06, my wife and I also travelled and trekked through all of South America (including staying in the dense Amazon forests) and set foot on Antarctica, where the most common inhabitants are penguins and the temperature of -30°
  • In 2004, my wife and I climbed to an altitude of over 19,000 feet to perform the Mt. Kailash parikrama (at ages 60 and 51). This was without any guided help!
  • 25+ years ago, in 1988, I drove my family from Mumbai to the top of Badrinath temple (now in Uttarakhand) in a Honda Civic. This was 5,500+ kms of heart-throbbingly bad roads – especially for a stick shift, sedan! (If you are aware of the Indian road conditions today, just imagine what they were almost all those years ago!)
  • A little before that, in 1987, my wife and I drove from Oslo through the broken roads of Nordkap to experience Norway’s Midnight Sun.

This is a glimpse of the many thrilling, exciting and hair-raising adventures I have been lucky to be a part of, but I would refrain myself from getting nostalgic here! After all, over the years I have travelled to 55+ countries whilst my wife has visited 43.

Academically, I am a qualified Chartered Accountant as well as a Cost Accountant.  However, I have been a first generation entrepreneur for most of my life. In 1986, I quit my (then) 18-year old professional career in the Middle East to come back to India and start on my own.

My learnings in life – personal and professional as well as my travel experiences and expeditions are (slowly, but steadily) being documented on my blog (please write to me if you want to get updates on e-mail).

In fact, I plan to capture my upcoming “driving expedition” on a day-to-day basis, perhaps even on a real time basis (using a GoPro camera).  Our expedition will cut across India, West to East, crossing about 10 states including Maharashtra, Madhya Pradesh, Uttar Pradesh, Jharkhand, Bihar, Bengal, Sikkim, Assam, Nagaland and Manipur.  Once we cross India, we will pass through Bhutan, Myanmar, China, Kyrgyzstan, Uzbekistan, Kazakhstan, Russia, Belarus, Poland, Czechoslovakia, Germany, The Netherlands, Belgium, France, and finally the UK.    It will be the rarest of rare travels – not to mention the various challenges we will face driving through such varied landscape.  This event is expected to create a record in Limca Book of Records and possibly be a Guinness World Record too (I am in conversation with them on this front.)

However, more importantly, this road adventure is personally very dear to me because I intend to spread a personal message that “age is no bar if your mind is determined and your body taken care of”; That, if one keeps themselves fit, age cannot hold you from extra-ordinary feats – be it a child of 9 years, a grandmother at 63 or a grandfather at 72.

Over the past few years, I have seen and read about kids and adults living their life more as an obligation, coupled with neglect of their health. People have almost forgotten to “live” their life…not realising that in the end, it is not the years in your life that matter, but the life in the years!

It goes without saying that such an adventure involves a lot of planning and budgeting, and as such, we are looking for “like-minded” individuals or organisations who believe in our belief and are keen to participate and partner with us; or if you know someone who would be interested. If you are, please do write to me at the below details and I would be happy to sit down and share additional details. Your assistance and cooperation will help create awareness as well as generate interest, curiosity and perhaps inspire others!

I am hoping that with your support we will be able to spread the message to an even wider audience! The flag off is currently scheduled from Mumbai at 1000 hours on 24 March 2017, when we embark on this journey, hopefully able to create an extra-ordinary story and memory! You are most welcome to come and join the celebration and wish me luck!!

 

Badri Baldawa

Cell: +91 987 000 1177

Email: badribaldawa@gmail.com

Best Marketing Guru

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“Look, shops open at 9 in the morning and it’s fine if we leave for airport at 10 to catch the scheduled flight tomorrow.  We have that one hour.  Let us try to meet some buyers”. I had a quick talk with my agent in Riyadh late in the night.

I was on one of my business visits to Saudi Arabia in 1988.  As usual my trip was very hectic trying to book orders for my normal product range. I was to return to India the next day morning.  At night while I packed, I realised I had samples of a new product, stainless steel glasses, which I had forgotten to explore till then on that trip.

The agent said, “Normally 9am is the time when the shop owners (importers) discuss the previous day’s progress with their salesmen and make their marketing plans for the day. It is too early in the morning for them to discuss purchases.  We could pursue that business on your next trip.”

I said, ” never mind, if we are able to meet one or two buyers, we will get an idea about that line of business.  No harm. Atleast we will get prepared better for the next trip”.   He agreed “Ok, let us take a chance”

We left in time to catch as many importers as possible.  The first one was not prepared to discuss purchases at that time, as expected.

We went to the second Saudi buyer.  He was busy cleaning and setting his table right, and on our offering the stainless steel glasses, he very casually asked,

He: What price?

Me: 72gms a piece, 7.5 cm dia, 2dz to inner and 12 inners/ctn, non-magnetic stainless steel, 90 days L/C though we may ship in 60 days, $3.75 a dozen

He was still busy cleaning his table, duster in his hand.  He said casually, not even looking at us, “$3.50”

Me: No, 3.50 is slightly below my cost.  Can’t go below $3.75.

He said firmly: $ 3.50…. pause..….. I could have started with $3.00 and you would have given at $3.50.   But I don’t waste time.  You are the first one I am seeing this morning, hence don’t want to disappoint you nor get disappointed.  If no $3.50, then no interest”

Me: Quantity?

He: One container.

I was expecting the first order to be around 5,000 dz.  One container equaled 24,000 doz.  For this quantity, I would save some freight and other expenses and my cost would be around $3.50.

Me: Fine. Accepted. We want to start business with you so that you can test our quality of product and services!

He: Proforma banao. Usme Bank details mauzood.  Bank L/C details bukra mazboothan. (Make the proforma with your bank details, I’ll arrange and advise you the Letter of Credit details by tomorrow).

I prepared a proforma invoice for US$.84,000.  He signed and said in Urdu-Arabic to mean, “Without knowing you, I have placed an order because somehow I felt you are genuine.  But make sure you surely dispatch and ship right quality.  Don’t let down my judgment”

We concluded the deal and I left for the airport.

By the time I reached Mumbai, the cost of raw material had reduced by about 2%.  By the time I exported the goods, the exchange rate went 6% in my favour.  By the time I completed the order, I had made a decent saving of about 10%.  The value per container was high and the profit margin for this product ultimately turned out to be quite satisfactory.  I was tempted to expand my product range to stainless steel housewares!

After executing the order, when I met the same customer on my next visit, I was curious to know what made him place the order with me without knowing of me.  His reasons were interesting.

He said something to the effect that, “We have 3 major problems when we place orders with exporters from India.

One, they normally give a price and sometimes show a sample.  Intentionally, they do not give full details of the products unless we specifically ask for each of the details.  They try to keep an escape route ready for them.  In case, later, if the cost goes up, they compromise on the details missed out, and give an inferior, smaller or cheaper product.

Two, when we tie them down in the L/C with all specifications, in many cases they opt not to ship at all when the cost goes up.

Three, when the price increases, they divert the order to our competitors at a higher price. They might supply to us later when they have excess stocks.   Sometimes they even fail to supply which is a double loss to us as we lose our customers to the competitor to whom they supplied products meant for us.

But in your case, while quoting the price, on your own, you gave all the details of weight, size, packing, grade, delivery and price which I needed, without my asking for it.  This built my confidence that you are honest.  So, I took a chance and placed the order with you!”

I was completely got carried away by his reasons!  It enlightened me “If I could take care of these worries of the customers, it would make a difference to my business”.  I made these as guide lines.  Never did I compromise in quality.  Never did I fail to supply.  Never did I tried to take advantage of the situation.  It worked.   It gave satisfaction to both, me and my customers.  Within 2-3 years, we had around 60% of the Saudi Arabian market in stainless steel housewares!

I thank the customer, who was my best Marketing Guru

Experienced and Written By: Badri Baldawa

Edited By : Meeta Kabra

Will Power Assures Success

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Lower Spondylitis, three cervical slips and dislocation of a toe-joint were the health related issues I faced in 2008. Alongside I had syncope and chronic high blood pressure.  In normal course, with these issues, one might vehemently oppose the idea of even going for a simple walk.

I, however, wanted to trek to Mt. Everest base camp.  Age 64 years.  My spine questioned its importance, “how can you ignore me and put me under such strain?” The toe protested “after all it is me who’ll ensure you to do the trek. If I am not well, how will you trek?”  To me they sounded like kids making excuses to escape from home work.

But I was very clear.  Come what may, I have to go. I wasn’t convinced that these were adequate reasons to not to go or to postpone the Everest Trek, even by a day.  I had to convince my so-called problems.  To my cervical spine, I said “I will not strain you. I won’t carry baggage on my shoulders; I’ll have a porter to carry the weight”.  To the lower spine, I extended a carrot stick, “Don’t you worry.  I have a nice, imported waist-belt to support you; you would love its company”.

For the toe I had, “I will take you to an orthopedic doctor, feed you with appropriate energy so that you won’t feel the pain, atleast for a few weeks.”

The Doctor advised me to postpone the trek by a fortnight to give some provisional treatment.  When I refused and asked for a better option, he came up with a solution. He’d inject a medicine and within a week the toe would be good for the next 8 weeks at least.

Looking at my firm attitude, my good-old companions from birth, neck, spine and toe were convinced and happily made my trek to Everest possible.

We are faced with similar problems in other fields too, in day-to-day life.  If we permit them to dominate, they restrict our success.  If we have the will power to dominate these problems, success is assured.

Written: Badri Baldawa

Edited: Meeta Kabra

Support, But Do Not Spoil

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Just like I was  looking for moral and financial support when I started my career, many youngsters need support from people who are established. I have been an active participant in trying to provide similar assistance and support, to the best of my means and limitations, for the last 20 years.  It is a pleasure to share a couple of experiences I learnt out of my experiences on matters of financial assistance.

Majority of the people who seek help come with genuine repayment plans and fulfill their commitments on time.  It is always a pleasure extending support to persons with such an attitude. If the loan is for commercial purposes, there is nothing wrong for the lender to have a fair return, as the objective of the loan was to earn money.

If the loan is for an essential nature, I consider providing assistance ‘free of interest’ as getting them out of the financial strain is an adequate satisfaction.  But the borrower should realise that the lender has given the help depriving himself of the earnings that he otherwise would earn on that amount.

However, I have experienced that this ‘interest free’ tag has a  negative effect.   In such cases, the borrower instead of being grateful for receiving concessions, unfortunately, feels that it was his ‘right’ to have received that assistance.  In certain cases it was taken for granted as a gift.  Besides the borrower conveniently takes the repayment of interest-free loan as a last priority, as it doesn’t cost him to delay the repayments.  In most of the cases, the borrower avoids talking to lender as he considers it is the duty of the lender to ask for money.  In some cases, because of the relationship in question, the lender does not talk about it, converting “good money” to “bad money”.

Who is responsible for this?  The borrower?  No. My experience says, it is the me the lender’s fault, for very many reasons.

  • First of all, the loan given was emotion-based and not merit based
  • Secondly,  I mis-judged the borrower, in his attitude
  • Thirdly, I reduced the value of money, by giving the loan interest free
  • Fourthly, if the loan was given for non-essential purposes, I helped the borrower in  investing the funds for non-productive purposes.

Thus I was the one who spoiled them.  I could have been wiser in taking the borrower in confidence by explaining that I value my relationship with him and wish to avoid misunderstandings in future citing Shakespeare, “neither a lender nor a borrower be.”

Had I said a firm “No” and avoided getting emotional, I could have saved them and their deterioration in quality of attitude.  Above all I could have retained my relations with them!

Written: Badri Baldawa

Edited: Meeta Kabra

Expanding Business? Take care !

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Expanding Business?  Take care

Expanding a medium size business needs to take care of certain tricky problems like expanding business vs infra-structure for increased activities and safety of capital already earned.    .

Any business is run to make money, of course, in a fair way.  Once a business starts earning money, the owner wants to make more money!  He realises soon that expansion or diversification of activities are the solutions. This invariably needs infrastructure which in turn needs further investment.

Expansion of activities also means a bigger uncertainty in revenues. Any unnecessary investments in infrastructure might eat up on the profits and liquidity, including that of the current business.  While, without taking business risks, it is close to impossible to expand business, an expansion without proper infrastructure is suicidal.  Therefore the owners have to adequately balance strategy between expansion of business and additional costs of larger infrastructure.

4-5 decades ago, our family business went through a similar balancing act or lack thereof.  The reasons stand good even today.  My dad owned iron ore and manganese mines.  He was as good at looking for and selecting remunerative mines as he was at obtaining Government permissions to operate those mines.  He started with a small mine of a few acres and expanded to 9 mining leases. From the records, I found out after his death that just two of them were as big as 1064 acres!  These could have been sources of unimaginable and unlimited revenues.

He was the lone manager of this enterprise.  Infrastructure for expansion was not planned.  We, all his sons, were still students.  Management was not adequate and therefore the controls on the resources were inadequate.  If controls are missing, the funds would go missing too!  The entire business turned out to be unremunerative whereas it should have earned multi-millions.  It was all due to inadequate infra-structure.

My son Anand, who earlier was in UK, took over operations of my business over a year ago. He wanted to expand and diversify the business.  His first thought was about infrastructure.  He spent almost a year in planning and building additional infrastructure for future activities and wisely limited it within affordable means.  We occasionally felt that the business could be managed without additional infrastructure, but learning from my dad’s experience, I was very happy to support him.

I have seen some not-very-large businesses that they were very successful when they were small, but failed miserably when they expanded.  On analysis, it was clear that the main reason for their failure was that only the value of fixed assets was taken as investments and funds for expansion were arranged accordingly. The need for working capital for day-to-day activities and transition costs were ignored.  This is extremely important and is a significant amount in most businesses.

A businessman I know, failed to notice another significant problem. “When one heads towards the top at top speed, he had to ensure that he doesn’t drop down”. At whatever height one is, it is a human tendency to assume that the peak is yet to come.  But one cannot judge when one is at his peak. Therefore, to be safe, at every stage of climbing, one should secure themselves from a fall.

How do we secure that?  Simple, set aside a good percentage of earnings for a rainy day, a saving for safety from failures.  Do not put entire capital at risk. For any reason, if expansion investment is lost, at least you are left with a base capital to survive for future.

These are some of the lessons learnt while analysing the reasons for failures of some of the prosperous businesses while undertaking expanded activities.

Take care!

Written: Badri Baldawa

Edited: Meeta Kabra

 

 

What Next – A Dilemma

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On certain occasions in life you are at a dilemma – do I satisfy my desires or take overall responsibilities.  At such points, it is essential to curb our feelings for the larger good. To do what I really want to do would surely give me pleasure. But the pleasure I would get in fulfilling the desires of the entire family would be incomparable.  If I have an opportunity to get ‘incomparable pleasure’, why should I get satisfied with just ‘pleasure’?

In 1965, I appeared for B.Com exams and was contemplating what was best for me to do thereafter.  I had to decide whether to join business or go for a job or pursue further studies. The ground reality was that we were ten brothers and four sisters.  Except one sister who was married, the others were younger to me.  They needed to be educated, married and ultimately settle in their career. There was always a financial crunch at home – even for essential day to day needs.  We desperately needed regular income in the family.

I always wanted to run my own business and I had the confidence that I had acumen for it. It could then be debated – why did I not join dad’s mining business?  The mining business was not giving returns.  To make it profitable, processes needed to be mechanised for which an investment of Rs.15-20 crores was needed.  We did not have adequate sources nor securities to get the large funds to run the mining business.

The maximum financial help I was offered was enough to set up a grocery shop – a very common business occupation at that time. Though business could give better earnings, there was no guarantee of any fixed minimum returns.  A single wrong decision in business could ruin the dreams of the entire family.  It was too big a risk for me to take.  I had to play a safer game.  Therefore to ensure that all the family members are taken care of, I decided against setting up a business.

The other option was to study further which would result in a further financial burden. The family would continue to struggle for at least 3-4 additional years.

Employment gives regular assured income.  It was better to go for assured income by doing a job.  At any later time, as and when I saw the family settling down, I could take the risk of fulfilling my dream of experimenting with my own business. Under the circumstances, I was convinced that doing a job would be the thing to do.  It was a compromise and of course, not a very happy situation to be in. I was still in dilemma

Just then, the results of my final B.Com were declared.  I had secured the top rank in the University.  After getting the results, I went home, took my mother’s blessings and headed to the office room.  I missed my dad.  He was away on one of his trips to the mines. By this time, a few of our family, friends and neighbours who had heard of my results had already collected in the office with a garland to honour me. One common question was,  “Badri, what do you want to do next?”  True, I now had to take a final decision.

I was blessed with a surprise.  My dad had unexpectedly returned from his trip and entered the office, full of well-wishers.  He was not aware of my results.  He heard it from the people already collected there.  I could read his face.  He was a proud father. As if the garland was waiting for my dad.  He picked it up and garlanded me.  What an honour!

The same question was asked again, “what next?” I was still confused.  Before I could answer, dad answered.  “With such bright results, what other option would he prefer other than to take the family responsibility after me.”  I was happy that dad had come to my rescue and took a decision for me.

Dad looked at me and continued “Beta, you study as much as you want.  No limits.  Leave it to me, I will handle the affairs at home. You don’t have to worry about the expenses.   I have energy and strength to take care of all of that. If you study now, you can take care of the family tomorrow!”  I was lucky to have such a dad!

A very sensitive occasion for me.  My dilemma was no more.  I got what I ultimately wanted.  Study further.  I thought for a while, I could continue study now and still earn later with higher status and earnings.  But if I went for a steady income now, it would be very difficult to go for studies later on.

It therefore was decided that I would go for further studies as long as dad had energy.This was the opportunity to show my worth in studies and then take up the challenge of supporting the entire family.  It also reminded me: in business I might earn, but it would be temporary because there can always be losses. But if I acquire knowledge, it would be my permanent asset and I would never lose it. That asset would help me later, whether I go for employment or business.

Vidya Dhanam Sarwa Dhana Pradhanam.

Author: Badri Baldawa

Editor: Meeta Kabra

Mother’s Ring Speaks

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75 years ago, my mother got married.  She got a stone studded ring as a wedding gift from dad.  Both the families were well-reputed and reasonably placed economically at that time.  But luck has its own agenda and things changed. My parents wanted me to study but ran short of funds. Around 1963, they pledged the ring, for a loan of Rs. 450 against it, at a rate of 3% monthly interest cumulative. That’s how I could complete my education. I wasn’t aware of this loan. I accidentally found the pawnbroker’s note a couple of years later.

I completed my education in 1968 and got a job at a handsome salary of Rs.720 per month. Over a period of 5-6 years, the loan with compounded interest accrued to Rs.2,200. A new ring like that one could then be purchased for about Rs.1,100.  My parents must’ve even forgotten the matter by this time.  Anyway, financially it did not make sense to release the ring from the clutches of the moneylender.  However, from my accrued initial savings, I got the ring released, as it was invaluable for mom.  When I surprised mom with the ring, she could not believe it, tears rolled down and she sobbed for quite a while, probably for the unexpected surprise of getting back an invaluable item of sentimental value.

I lost my mother on Akshaya Trithiya, 24 April 2012, exactly two years ago.  When her ornaments were distributed to her children, I preferred to retain just that stone studded ring my dad had given to mom at their wedding.

I was holding that ring today. The Ring started speaking. What the Ring said could hold true for anyone.

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“Parents try their best to bring their children up, within affordable means and facilities available to them. They disciplined, gave pleasure, taught culture according to what they thought was best for you, from their point of view.  It was all selfless and nothing was expected in return.”

The Ring continued to speak:  “Forget not, you are holding your present status mainly due to the support of your parents, for which they pledged their wedding ring and even mangalsutra.  They preferred to remain hungry to ensure that you are fed.

To value the care they had taken, wasn’t it your duty to have spent some more time with them to share and talk about things of their interest? Did you not deprive them of the respect and facilities they deserved, forgetting that they sacrificed all their life for your development?”

The ring was true. I lost my father early in my life.  While my mother was alive, every day, I thought I would shortly be free; retire from my business and spend some time with her.

Occasionally, I probably considered that spending time with parents was unproductive, boring, waste of time and even disgusting.  Sometimes, I probably thought the parents were rigid and argued on matters irrelevant to the present environment.  Why did I get these types of feelings about the people, who spent their whole life to bring me up, educate me and support me in building my career?

They were the ones who were next to me whenever I was ill; they were the ones who sacrificed their desires, just to ensure that my desires get fulfilled.

I probably failed to understand that as my parents were advancing in age, their level of energy and enthusiasm would reduce and they might not catch up with new lifestyle.  I probably failed to give credit that they were more mature, better experienced and have higher understanding, without which they could not have guided me all through my life. I probably failed to appreciate that they had right to feel proud for whatever they have gone through to shoulder the family responsibilities so far. Silly, that I confused that as their ego. I probably had forgotten that they had already proven themselves while I still had to prove myself.

What a wrong notion I carried that I am extra smart.  In fact, my parents sacrificed everything for me and still they honoured and appreciated me for whatever little I did.  Alas, when my turn came to serve and honour them, I missed the golden opportunity to avail the win-win situation. Had I done that I would have lost nothing.  I repent today.

Oh, my dear Mother’s Ring.  Thank you for speaking out.  Let me see whether I can at least express gratefulness to the living elders “for whatever they have done” and show them that “I care for you and your feelings”.

Author: Badri Baldawa

Editor: Meeta Kabra

Don’t Mix Business With Social Pressures :

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Pre-independence my family was in the tobacco business in Bellary, mainly dependent on consumption by army. Post independence, the soldiers were moving out of town. This reduced the demand for tobacco products drastically. Our neighbours produced a competing brand. Now, though the demand had plummeted, fearing that we may lose the labour force to the competitors, our family continued production at full capacity – suicidal. Obviously, stocks started piling up.  Hoping that suddenly better days would come, excess stocks were stored in a warehouse located just behind the manufacturing unit.

Bellary is well known to have only two seasons a year – hot and very hot.  Normally it doesn’t rain much in Bellary and ‘heavy rains’ were not heard of.  However, on one of those days around 1955, there were very heavy rains, so much so that the roof of the warehouse collapsed.  Tobacco products become unusable once they are wet.  The entire stock became worthless.  There was no known storm insurance concept at that time.  It was a heavy loss and the family could not bear this loss. At the same time, our business partner expressed his inability to bear his share of the loss and backed out.

That rainy night was the biggest setback to the family.  Imagine, just one incident, changed the entire fate of the family. The family, which was considered one of the richest in that locality was on the verge of collapse.

If we analyse the reasons for this collapse, there were a few management blunders.  The most obvious one – though demand had dropped permanently, production continued at same pace.  The production continued just for the fear that the competitor would take away workers.  On top of all, the most damaging reason was the feeling that if production drops and we let go of labour, society will look down upon us, a fear of loss of face.

If the social pressure had not  influenced the business, the history of the family status would have be different.

In a “guidance program for the youth” where I am a mentor, I have observed that even in today’s  independent and forward-thinking age, young entrepreneurs are trapped with similar problems.  In one specific case, though the profit margins were good,  expansion was being made to impress customers and competitors.  Collection of outstanding was ignored, stating “that delay in payment is okay, as long as I get business”.  They somehow considered that demanding the payments was unsocial from the people of high status. These so called high status guys took full advantage and effected the payments at their own will and wish.

On scrutiny, it came to light that though the customers were very happy with the socially-rich vendor, it led the business to cash starvation so much so that the business was at the brink of closure.   After studying the figures, I had to advise the owners, about 8 months ago, that for the sake of survival, they had to come out of this “social complex”.   Luckily they heeded to the advice.  On their path to recovery, they had to offer hefty discounts to get outstanding dues. Certain debts turned bad and led to legal recourse.   They closed all their unprofitable wings, stopped dealing with the late pay masters and concentrated on the healthy portion of business.  Though it was a painful process, atleast they survived.  They are now about to turn the corner, within 6-8 months.    However, had they continued with the “Social ego” problem, they would have definitely closed down by now.

Whenever we have problems, we start getting influenced by what the society would think. After I qualified as a Chartered Accountant, when I was in the Middle East, I had the opportunity to study the reasons for many loss-making businesses internatioanally and suggest corrective measures.

I observed, particularly in cases of businesses owned by high profile owners, that though they knew where they were making losses, they were not willing to take action. And in most cases, the reason was for fear of society.

The business normally have activities which give decent profits as well as loss-making activities.  Profits generated by certain activities are eaten up by by loss-making activities.

In one of my assignments, I had to face a severe ego problem.  They were very hesitant to close down the loss-making units just because when the owner would be in his social circles the next time, someone would say “oh, you have closed down so-and-so business”.  They sound sympathizing but are actually sarcastic. This was a case of ego clashing with business decision.

I then had to argue: “One, are they going to come forward and help you if you start going down the drain. Two, how hurt would you be in the social circle, if you had to close down the business completely, which is likely to happen if you continue to lose this way.  Three, those who are real businessmen, would appreciate your decision as an aware and sensible one. Please ignore society on this matter and do what is best for you”.  He ultimately listened, his business survived.

For the sake of our own survival, let fear of society not influence business principles.

Author: Badri Baldawa                                                                     Editor: Meeta Kabra

Define Contentment

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A day at Ganges Ghat at Rishikesh in April 2014.

Just as I was about to enter the river for my bath, I saw one of the sadhu pandits (priest) wearing a white handloom dhoti, just finishing his bath.  I knew he was going to chant Hanuman Chalisa (a prayer for Lord Hanuman).  I went to him to say “Please wait for me to complete my bath, we will sing Hanuman Chalisa together”.  He did not speak.  I took my 11 dips and sat next to him.  We recited Hanuman Chalisa together.

He was the same sant (saint) who I saw two days ago at the river side.  That day, I obseved him as he had his bath while chanting all type of Mantras. He then, sat on the steps and chanted the Hanuman Chalisa with a lovely tune.  I was at peace of mind and unknowingly joined him. I thoroughly enjoyed the vibrations. I waited till he completed his jaaps (chants) and was inquisitive to know more about him.

He was about 60 years old and from a village in Bihar.  He lost his parents long ago.  He did not marry and had no relatives, except for a brother and a nephew, who he had no contact with. He stayed in a temple in his village and was the caretaker.  He traveled a lot.  He reached Haridwar by train and expected to stay in Rishikesh for 4-5 days before moving to other places.  He was planning on reaching Badrinath by foot and expected to reach there by mid-May 2014.  On his way, if he feels like it, if he finds it interesting, he’d stay at any place for 4-5 days.

No plans, no itinerary, no reservations for accommodation, no worry about food, no expense budget.  He appeared a fully content soul.  He would stay in any Ashram which wouldn’t mind giving him some space to sleep, even if it means open space in very cold weather.  He’d eat at any of the Ashrams which had complimentary meal arrangements for Sadhus. In case he didn’t get food, he said, he wouldn’t feel hungry; he felt hungry only when he saw food and not otherwise.  He had just a dhoti and a spare langot for clothing, which he would wash every day and use.

We, on the other hand, would not bother making travel plans unless we have confirmed reservations, comfortable place to stay, planned arrangements to eat and a load of warm and fancy clothes.  Here was a soul who had full mental satisfaction even though he did not have any financial for expenses, accommodation, food arrangements or in fact any materialistic possessions!

Now look at this.  Just on the way to Rishikesh, I lost my iphone.  It was pinched by someone at Delhi station when it was kept for charging from right under our nose.  All my information, contact details, data was lost with the phone.  I was very upset.  I felt very sad.  Losing that phone was almost as if I had lost one of my beloved ones. Is such an attachment necessary?  It is bad that we have become so dependant. How did we manage when cell phones did not exist?  We probably had better mental peace and less dependency on an external non-living tool? Just compare that to the Sadhu who wasn’t even dependent on living beings and was still happy and content.

Later, I went for a trek from Rishikesh to the Neelkanth mountain.  This is located in the centre of a valley, surrounded by mountains all around. It was a circuit trek of about 25 km including a steep climb of about 3000 feet over a distance of 12-13 km.

This is said to be the place where Lord Shiva took his salvation after he consumed the poison, during the Samudra Manthan – to save the universe from destruction, Shiva retained the poison and did not allow it to go down his throat.  It created such heat that he had to rest in a cool place.  That place was Neelkanth.

(Neelkanth is the same place where it is whispered that Mrs. Jasodaben, the wife of the BJP nominee Mr. Narendra Modi is presently stationed  in an Ashram.)

This place could be visited by a vehicle.  But we preferred to trek. No doubt it was a hard trek.  Since I lost my cell phone, I carried my wife’s phone.  It was for the loved ones at home to know our whereabouts.  But every time there was a call, it disturbed the peace and trek thrills. When I had such a wonderful time with nature in wonderful company of two daughter-like grand nieces, Archana and Krishna, any call was a disturbance.  We gain a lot from modern gadgets, but we lose a lot too!

I wondered if it was really necessary that I buy a new cell phone to live? Since I lost my phone, was this an opportunity to stay without it?  I am wondering whether I should buy a phone at all?  Can’t I get on without depending on it?  Will I not be happier without a cell phone?  Why not try at least for a few months to see what difference it makes?

Author: Badri Baldawa                                                      Editor: Meeta Kabra

Affordable Traditions

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“This is the marriage season, I will be very busy”, said a neighborhood moneylender. How do weddings make a lender busy?

Did you get it?

Weddings obviously mean business to many like caterers, decorators, jewelers, etc.  We missed out another category of businessmen who look forward to the wedding season – The moneylender.

The affluent lay down certain traditions to show-off their prosperity.  In the process, probably they do not realise the quantum of damage they cause to society.

A practical example.  In our town, at any wedding, the entire community was invited for three full course meals. ‘Sigree noota’ – all the members in every family were on the invite list. This translated to 200-250 people on two of these meals and 400 people for one of them because people from the neighbouring townships were also invited.

Funnily enough, for those who could not attend, a parcel to their home! Obviously, these meals mean a lot of money.  Someone who probably wanted to boast about his wealth must have started this and with time this became tradition.

Those who did not have adequate sources of income, also had to host three meals.  They were worried that if they failed to host 3 meals they would be looked down upon by the community. Their fear was valid.

Whenever invited by the affluent class, even the members of the low income profile families would go for the dinner.  Not attending was considered as an unfriendly act. Once they went, it was understandably difficult to avoid inviting when there was a wedding at their own home – an endless chain.

Think of the amount of harm this tradition caused.  Those who could not afford, borrowed money.  Some sold or pledged their homes to finance the meals.  A few had to convince their wife and daughters-in-law to sell or pledge their ornaments and jewelry.

Obviously, loans from banks was not available for weddings.  Therefore, they had to borrow from private lenders. The maximum amount a moneylender would lend would be about half the value of the property pledged. An additional condition was that if the loan was not repaid before the amount accumulates to the total value of the property, the owner lost his right to the house or the jewelry.  The interest on private borrowing was anything from 24% to 36% (usually monthly compounded) per year.  This means over a period of 2 to 3 years, the amount repayable would double.  In short, within 2-3 years if the loan was not repaid, hard earned pledged items became the lender’s property.

Why? What is the root cause?  Is it just to maintain a tradition in the society? Will the society for whom this has been done come to his rescue? No. Just forget it, they would be busy gossiping!

The irony is it hardly made any difference to the guests, but the host was doomed. It wouldn’t be surprising if, in certain cases, it led to suicides. What is the point of following such traditions? Inspite of knowing the consequences, no one dared to amend or rectify.

Justification : “why should I be the first one to defy tradition?  Let someone else take the blame”.

Solution?

If we can sensibly act.  For example, at my wedding in 1971, we were reasonably better placed financially and could have managed to host 3 meals easily.  For me, this was an opportunity.  I explained the above consequences to my dad.  He was well aware of such unnecessary burden on some people in the community.

I suggested “Kakaji, why not we restrict the wedding celebration by hosting just one dinner? Let us take the blame for curtailing this tradition and the change could save someone”. My dad was in favor of a positive change in the society and he readily agreed.

Yeah, we did it!  We changed over to all-in-ONE dinner for my wedding.  It is almost 43 years since then and this system is followed to date!

This is just an example of one tradition at a wedding.  Sure, there are many other such opportunities at weddings, but the same principle hold good for birthday celebrations, religious ceremonies, anniversary functions, death ceremonies, etc.

Value of return gifts is another classic example.  If you can take a bold lead in curtailing them down, you have done a great service to society. My appeal to youngsters – Enjoy and Celebrate in life. But sensibly, curtail the formal events to the extent everyone in the society can afford.

I have constantly tried over 40 years ‘Take no gifts and give no gifts.” Some firm traditions of giving and accepting gifts have discontinued in the family.  However, I was only partly successful. But you could do better, will you?

Written: Badri Baldawa                                                      Edited: Meeta Kabra