Final Magazine

THE COMMERCE SOCIETY Shri Ram College of CommerceR-EVOLUTION READ . REFLECT . RESONATE . 2016 EDITION

Principal’s NoteThe Commerce Society, Shri Ram College of Commerce is one of the most exuberantteams of this esteemed institution. The society has always tried to impart practical skillsto the students in the field of commerce, providing them a scope for all rounddevelopment. Hard work put in by students to raise the level of performance with everypassing year is remarkable.The annual fest of the society- BIZSTREET is one such platform where the best mindsacross the nation meet. This year also the society raised its level, taking Bizstreet to newheights and making college proud.I congratulate all the office bearers and members of the society for conducting various events successfully and wishthem good luck for all their future endeavours.Dr. R.P. RustagiTeacher In-charge’s NoteThe Commerce Society, Shri Ram College of Commerce is a premiere student bodyat the college. Over the years, the society has been engaging its members in a numberof events, seminars and discussions under the umbrella of 'Bizstreet' and 'TheCommerce Week' that enables them to sharpen their skills in the light of latestcommercial and economic developments.The society and the students have been a very special experience to me. I wish them the bestfor their future endeavours.Dr. Suman BhakriEditor’s Note“Memories maketh man.”As we inch closer to the culmination of yet another session of The Commerce Society,SRCC, the society presents its annual magazine ' R-evolution' that seeks to capture themaze of activities concluded by the society throughout the year and the members' voices onvarious issues of economic and commercial relevance.Happy reading!Shivakshi Dixit

InIdndeexxTHE NEWSROOMShifting Tides: Global Scenario 2The Great Fall of China 3Eurozone Debt Crisis 4The Refuge Deluge 5The Economic Angle: China's One Child Policy 6Building India Inc.: Digital India 7Union Budget 2016-17 8The Wait Continues: GST 10Aadhar Bill: Privacy V/S Efciency 11Liberalized Foreign Exchange Scheme 12Stand Up India, Start Up India 13Mergers & Acquisitions 14THE COMMERCE SOCIETY JOURNEY 15THE BUSINESS INSIDERSocial Entrepreneurship 22Social Media Marketing 23Business Blogosphere 24Business Ethics 25Family Business Enterprises 26Cashless Economies 27The Flawed Beginnings 28Predatory Pricing 29Niche Marketing 30FUN SECTION 32CABINET’S EXPERIENCE 35

The Commerce Society, SRCC THE NEWS ROOMSHIFTING TIDES: GLOBAL SCENARIO Khushboo ChattreeAs the global economy slows down and anxiety rises rates and thus cutting down market pricesamongst investors, the major question is whetherChinese slowdown can do what US subprime As producers and exporters perish the world ofhousing did to the global economy? importers receive mixed blessings:China as of 2013 was the largest importer of oil, As growth in EU continuing to be weak with lowoutsourcing upto 60% of its total supply. As the ination lowering of prices, it will only help themChinese economy reaches a 'new normal' of 6-7% increase economic output. While China too is saidgrowth rate, industries contract. However it is not to benet, aiming to strengthen its oil reserve, andfalling demand in china single handedly behind the boosting overall growth, Japan feels the brunt asoil price glut infact, China's oil demand is expected higher energy prices in the past popped up inationto grow 3% as projected by OPEC and IEA, as heavy which helped them combat deation to a largeindustries contract service and domestic extent.consumption is on the recovery side. Thinking how India is being affected? Well, IndiaThe reasons for falling oil prices are moreover two imports over 75% of its oil, falling prices are said tofold - weak demand in many countries due to insipid ease our current account decit, if prices stay loweconomic growth, coupled with surging production enough government might also choose to cut down on subsidies. However a reection of the ipUS oil production has nearly doubled in the past side of falling oil prices is the slowdown inseven years with technological improvements in the remittances, India's most important source of dollarshale fracking' technology in response to the 2008 inow. The fall might be due to many reasonsrecord high oil prices and this has pushed out US oil including slowdown in growth and fall in GDP in UAEimports that need to nd another home. Saudi, and Saudi coupled with strained incomes in WestNigerian and Algerian producers who sold to US so Asia.far were told to move to Asian markets and lowerprices. Even Russian, Canadian and Iraqi supplies While the world deals with nancial turmoil the Worldseem to be high. Bank warns against the downside risks of a slowdown saying that more protracted slowdownAs prices fall, some but not all producers choose to across large emerging markets could havecease production as any amount of revenue substantial spillovers to other developingstream is going to help them pay off debts. Thus rise economies, and eventually hold back the recoveryin non-protability is not shutting down production in in advanced economies.proportion. Adding to the already existing globaloversupply is OPEC's internal politics over the TRIVIA: Despite people's tendency to focus onproduction quota. As poorer members push for the Middle East when it comes to oil & gas,reduction in supply to hike prices and generate Venezuela has the largest share of global oilgreater revenue, nations like Saudi Arabia, UAE and reserves in the world at 17.5% as of 2015.Kuwait (having amassed very high reserves over thepast and can now run decits for several years)however think otherwise. With long term goals ofproviding a steady ow of oil and being partnerswith the world's economic powers, Saudiunderstands that an unreliable supply and pricehikes would encourage countries to conserve aswell as develop alternatives to oil.2014-15 saw OPEC nations exceed their productionceiling by huge amounts. OPEC continued todismiss proposals for supply cut aiming to cut downon protability of high cost US shale oil production,thus hoping to drive out future competition forsustaining monopoly.Lifting of international sanctions from Iran, (nowexcited to jump into the market once again) onlyadds to the oversupply scenario. Further as ISIScaptures oil wells in Iraq and Syria, they are makinghuge prot by black marketing oil at discounted 2

THE NEWS ROOM R-EVOLUTION, 2016 THE GREAT FALL OF CHINA Arpit KhemkaThe Chinese stock market has perpetually exhibited entitled to sell the shares. So when the collaterala rollercoaster behavior throughout its history of two requirements were raised, there was suddenly moreand a half decades and according to leading selling taking place than before. This furthereconomic journals, investors should expect the reduced prices. Expecting further price falls, peoplesame volatility in 2016 as well. started selling more shares and this led to a vicious cycle which kept reducing the value of the marketThe precipitous downfall the market has and nally led to the collapse.experienced can be attributed to the following Lastly, excessive reliance of the Chinese economymajor factors. on shadow banking (around 60% of the credit is availed under shadow banking) makes theSince, the Chinese property market went down multiplier effect stronger.exponentially over the last few years people werelooking for new avenues for a better ROI. China Reasons-epitomized empty skyscrapers, stadiums and even a. This is largely due to very low CRR and SLR ratios.cities. This resulted in overcapacity and heavily b. These banks give out loans to only those entitiesindebted companies that needed to raise funds toclear their debts and balance sheets. Therefore, the that don't get it from regular system because ofgovernment encouraged people to invest their the high risk composition.savings in stock markets by liberalizing the use of c. They give a higher return to depositors and themargin trading. Only, the minimum collateral, set by collateral requirements are low comparatively.the govt. has to be maintained at all times. Thus, we can conclude that it is more or less an alternative to the regular banking system which hasDue to less capital requirement (because of margin an inclination for high risk investments. The problemtrading ) and high ROI, investment in stock market this poses is that the China's monetary policy byraised precipitously. This raised the stock prices to controlling bank interest rates and money supplyalmost 150% (excessive hike in demand). This fuelled are de facto rendered moot. This is a huge macro-in a lot of borrowed money into the stock market, economic problem that can lead to nancialbut the price hike cannot be solely attributed to instability.margin trading. (This practice had been prevalent in Reforming an economy of such scale as China's is amany parts of the world way before but such tough task. It will require policy makers to adoptunusual behavior was never observed.) transparent and effective policies to ne-tune the economy, which will be a sea change from theThe unusual nature of China's stock markets, which diktats and administrative measures that haveare dominated by small investors and are largely largely characterized policy making in the transitionclosed to foreigners, makes them prone to volatile economy thus far.behavior. Notably, just as in other nancial marketsretail investors tend to act in “herds,” where if TRIVIA: The Yuan comes in paper notes of 1, 2, 5,someone pulls money out to take some prot from 10, 50 and 100 Yuan notes, and 1 Yuan coins.the bull market, others will follow believing that theearly movers have better information, it's worse inChina because unlike in developed countrymarkets, information is less than transparent and thedominance of state rms means the books are notalways easy to check. Due to this herd mentality, thetrading volume in China had a strong multipliereffect. This in turn inated prices further over theyear.Now, the govt. had to nally put curbs on margintrading to reduce the debt fuelled buying of stocks.Therefore they raised the minimum collateralrequirements and banned several brokeragecompanies for violating the norms. This resulted in areduction in buying of shares. In order to maintainthe ratio set by the government, the brokers wereQ What is margin trading? Margin trading basically allows one to purchase shares in the market using borrowed money from the stock broker. 3

The Commerce Society, SRCC THE NEWS ROOMEUROZONE DEBT CRISIS Arpit KhemkaFor the past 72 months, European policymakers in turn contributed to social upset within theirhave been trying to deal with a crisis that borders and a crisis of condence among theirrepresents the biggest challenge to the leadership, particularly in Greece.European integration project since its creationafter World War II. The very symbol of it, the Euro, is TRIVIA: Contrary to popular opinion, the rstunder threat. The idea of the Euro's demise, country to slide into crisis wasn't Greece butunthinkable only a few months ago, has since Ireland.been openly considered by many. It would carrytraumatic and long-lasting consequences. The All these factors led to a complete economiccrisis has already had a profound political breakdown in the region, especially Portugal,impact, sweeping aside leaders in no fewer than Ireland, Greece, Spain, and Cyprus. Theirve member countries of the European Union. government debt was so high that they had toSome of the contributing causes of the sovereign seek assistance from third party nancialdebt crisis include the nancial crisis of 2007-2008, institutions such as the European Central Bank,the Great Recession of 2008-2012, as well as the The International Monetary Fund, and Europeanreal estate market crisis and property bubbles in Financial Stability Facility to bail out theirseveral countries, and the aforementioned beleaguered banks. This process is still underwaystates' scal policies regarding government and has way more complications to address.expenses and revenues. Although the criticaljuncture of this crisis came in 2009 when the newly What is the way out? According to leadingelected government in Greece unveiled the journals and economists, Europe needs to movegrossly under reported gures by the previous towards tighter scal integration if Euro needs togovernment which violated the Maastricht sustain in the long term. In the absence of scaltreaty. One of the main obligations of the treaty solidarity, scal discipline, and no lender of lastfor the members was to keep \"sound scal resort, it is tough for the weaker Europeanpolicies, with debt limited to 60% of GDP and economies to regain competitiveness at theannual decits no greater than 3% of GDP. And global level. The weaker economies might alsomany EMU nations, particularly Greece had have to suffer through a painful period of internalbeen regular offenders. This eroded Investor's deation, since currency devaluation is notcondence and spurred doubts on the scal possible within the Eurozone. But this is hardly apositions and debt levels of a number of Eurozone recipe for growth, especially at a time of severecountries. scal tightening. There needs to be a real punitive enforcement mechanism meant for countriesWith the augmenting fear of excessive sovereign that have little incentive to abide by thedebt, lenders started demanding higher interest Maastricht guidelines.rates from Eurozone states with high debt anddecit levels, which made it even harder for these For all the difculties and risks, there may yet be acountries to nance their budget decits when positive resolution to this crisis for one simplefaced with overall low economic growth. Some reason: the stakes are too high in this game ofaffected countries raised taxes and slashed economics and politics. There are, nevertheless,expenditures in order to combat the crisis, which great uncertainties left as this complex process continues to unfold. But a more scally- integrated and responsible Europe should regain competitiveness on a global scale and nd growth again. 4

THE NEWS ROOM R-EVOLUTION, 2016 THE REFUGE DELUGE Saumya JoshiFrom 200,000 arrivals in 2014, to more than 1 million Economyarrivals in 2015, the European Union, in just one year, Given the shambles the EU's economy is in, thehas been forced to evaluate its priorities and biggest question on every nation's mind is; are wefounding principles more than it has done in its 14 capable enough to support so many refugees? Onyears of existence. the question of social sector spending; Governments will have to educate and care forRefugees-Why and From Where refugees. Germany spent 10 billion Euros on refugees in 2015- however a budget surplus of 0.6% isAccording to the UNHCR, in 2015, the three anticipated in 2016. This is because-dominant nationalities among asylum seekers in 1. This spending equips refugees to enter theEurope were – Syrian, Afghan and Iraqi. Theseasylum seekers were mostly refugees eeing the labour market and pay more taxes than theydestruction in their home countries which have currently pay.become war zones in the last couple of years. 2. Secondly, increased government spending means increased aggregate demand-theThe European Context When It All Began stimulus European markets need.2014 was a time when the Eurozone Debt crisis took Illustration By: Divyani Malhotraon humongous proportions in Greece, which wasunable to fulll the terms of the bailout programme On the question of labour markets- there can bedespite repeated efforts. Though many other two effects-countries were not in as bad a shape, their A) In the short run, semi-skilled migrants displaceeconomic vitals were bleak (Italy, Hungary). To topthis, the Dublin Regulation, enshrined in Schengen native workers and lead to relatively smallAgreements, stipulated that any immigrant who unemployment numbers, in the processlanded in Europe would be taken care of by the opening markets to cultural diversity and takingcountry which was the port of entry. Given the up opportunities that locals shungeographic proximity of these Mediterranean B) Literature on the matter indicates that lesscountries to North Africa and Syria, they had to bear qualied immigrants displace native towardsa larger burden of the migrants-and continue to do more specialized jobs.so. In general, the refugee wave presents positive effects in ageing markets, with small negativeProblems and Solutions(?) effects on wages and employment. Whether these effects persist in the long run dependGiven that the Dublin Agreements put a heavier on a lot of factors the EU has not yet addressed-burden of migrants on few countries, the UNHCR entry points into labour markets, a tolerant attitudesuggested working out a migrant redistribution towards diversity, quality of facilities provided toprogramme. The rst targeted effort reallocated refugees-small things that could make or break the40,000 migrants based on quotas-which were EU's future.derived based on a country's population,economy, unemployment and past efforts inaccepting refugees. The second plan targeted thereallocation of 120,000 refugees out of Greece andItaly –but was vehemently opposed by 4 countrieswhich refused to fulll their obligations. The result ofsuch uneven distribution of refugees across Europeis extremely shoddy living arrangements forrefugees, rise of 'migrant smuggling' and anaddition to the woes of already traumatized peoplebecause of the lack of a unied approach.The European Union's no border policy is threatenedas countries have begun imposing border checksand some are building fences. The Union has goneto the extent of paying Turkey $3 billion to limitrefugee ow into Europe. Europe is yet to adapt tocultural differences with refugees -xenophobia andterror attacks only intensify the hatred against theinnocent. 5

The Commerce Society, SRCC THE NEWS ROOMTHE ECONOMIC ANGLE: CHINA'S ONE CHILD POLICY Vedika GuptaOne-child policy was initiated in the late 1970s challenges to the economic health of the nation.and early '80s by the central government ofChina, the purpose of which was to limit the great Plus, China's annual projected GDP growth ratesmajority of family units in the country to one child will likely decline from 7.2 percent in 2013 toeach. The rationale for implementing the policy around 6.1 percent by 2020 because reducingwas to reduce the growth rate of China's the labor supply has inadvertently decreased theenormous population. ratio of working-age population to the elderly population. As the population ages, and thereThe result of the policy was a drop in the death are no able-bodied replacements, total factorrate and a rise in life expectancy, but China's productivity will undeniably decline.overall rate of natural increase declined. Moreover, China cannot rely on immigration toThe one-child policy was enforced for most bridge the gap. China's decision to implement aChinese into the 21st century, but in late 2015 closed immigration system and closely monitorChinese ofcials announced that the program freedom of movement (even within the country)was ending. Beginning in early 2016, all families makes solutions to the associated economicwould be allowed to have two children. challenges extremely difcult.The one-child policy produced consequences Also, the policy has created conditionsbeyond the goal of reducing population growth. conducive to a severe regional human-Even with the elimination of this policy, Chinese trafcking and human-smuggling epidemic toeconomic growth is likely to decline in the 2020s, compensate for the lack of Chinese women. Itbecause the next generation's working-age has already facilitated the practice of mail-orderpopulation is already so small. brides and created a burgeoning illegal- adoption market.Since there has been such a remarkable loss ofpopulation, it has resulted in creation of a gender Failure to recognize the benets of humanimbalance, numerically favoring men over capital—the value that each individual brings towomen, and has also skewed the age the table, inherent and otherwise—has led Chinademographic. to long-term economic stagnation.In addition, economists estimate that China's Now, China has revamped its population-controlelderly population will increase 60 percent by policy, one can only hope for the well-being of its2020, even as the working-age population will fall population and for it to have a brighterby nearly 35 percent. This type of demographic economic future.shift is unprecedented and presents serious Illustration By: Megha Daga 6

THE NEWS ROOM R-EVOLUTION, 2016 BUILDING INDIA INC.: DIGITAL INDIA Saumya BansalWith an aim of creating a digitally empowered through a \"Discuss\", \"Do\" and \"Disseminate\"society and knowledge economy, the approach. The mobile app for MyGov bringsgovernment of India launched 'Digital India' these features to users on a mobile phone. Othercampaign on 1st July 2015 with the motto, 'Power facilities which are provided through this initiativeto Empower'. The core components include are digital locker, e-education, e-health, e-signmaking government services available online, and national scholarship portal which assistimproving internet connectivity, connecting rural citizens to digitally store their importantIndia digitally and improving overall digital documents like PAN card, passport, mark sheetsliteracy of the country. A government of India and degree certicates; keep a record of theentity, Bharat Broadband Network Limited is the attendance of Government employees on achief custodian of this government initiative. real-time basis; share inputs and ideas on matters of policy and governance; get a one stop Illustration By: Meena Saini solution for end to end scholarship process right from submission of student application,Indian Government has developed this verication, sanction and disbursal to endcampaign based on nine pillars: beneciary for all the scholarships provided by· Broadband Highways the Government of India and many more internet· Universal Access to Mobile Connectivity based facilities. For rural India, The Government· Public Internet Access Programme of India has undertaken an initiative namely· e-Governance – Reforming Government Bharat Net, a high speed digital highway to connect all 2.5 lakh Gram Panchayats of country. through Technology· e-Kranti - Electronic delivery of services ACHIEVEMENTS· Information for All· Electronics manufacturing After crossing a milestone of nine months, this· IT for Jobs scheme is a proven success. India now has a total· Early Harvest Programmes of 375 million Internet users, which exceeds theOne of the various salient features of digital India total population of the US, making it the world'sis MyGov.in which has been implemented as a second largest country by the number of Internetplatform for citizen engagement in governance, users after China. 928 million National Electronic Fund Transfer (NEFT) transactions worth 60 trillion were made in 2014-15 as against 661 million transactions worth 44 trillion the previous year. Optical ber cables have been laid out in more than 68000 village panchayats. Doing away with past practices, Indian Railways has made e- auction mandatory for scrap auction as part of the Digital India initiative. Though many will criticize the campaign for its slow pace, the government cannot digitally empower India at the drop of a hat. It takes time for the government and patience of the public to do something as huge as digitally empowering 1.2 billion people. If continued efforts are made in the right direction and this campaign continues to positively affect the Indian population, the time is not far when entire India will be digitally empowered! 7

The Commerce Society, SRCC THE NEWS ROOMUNION BUDGET 2016-17 Vaishnavi PaulThe Union Budget or Annual Financial Statement Prime Minister Jan Aushadhi Yojana.2016-17 was a plethora of new policies andchallenges. Ranging from agriculture, farmer  The Government plans to increase focus onwelfare and rural welfare to skill development, quality education under Sarva Shikshajob creation, affordable housing and a clean Abhiyan. Higher Education Financing Agencyenvironment, the new roadmap is all set to pump is all set to be established with initial capitalin fresh blood and energy in the economy. base of 1000 crore.The previous nancial year gave highly  The Government plans to go digital with aimpressive stats to begin with. Digital Depository for school leaving Certicates, College Degrees, Academic IMF hailed India as a 'bright spot' amidst a slow awards and mark sheets. global economy. TRIVIA: The word budget comes from a French Economic growth touched a whooping 7.6% word 'bougette' meaning a little bag. in 2015-2016, and With Make in India in full swing and a huge Foreign Exchange Reserves touched the workforce, the Government wants to attract all highest level ever. rms moving out of China due to discrepancies there. For this, the Government is focusing on skillThe future course of action mainly focuses on development.ensuring macro-economic stability and boostingdomestic demand. New initiatives like Pradhan  National Board for Skill DevelopmentMantri Fasal Bima Yojna are put forward to ensure Certication is all set to be established.crop security for the farmers.  The Government also wants to encourageA major concern in the present budget is entrepreneurship through various policies.Agriculture and Farmers' welfare. Massive open courses, online courses for job creation and 8.33% contribution in EPFO by Pradhan Mantri Krishi Sinchai Yojana and 89 GOI for all new employees enrolling in for the irrigation projects under AIBP ensure 28.5 lakh rst 3 years of their enrolment are welcome hectares of farmland is irrigated. A steps. programme for sustainable management of ground water resources is also implemented.  Apart from this, 100% FDI will be allowed through FIPB route in food marketing. Apart from this, the Government also wants to focus on and promote organic farming  With India ranking really low on ease of doing through schemes like 'Paramparagat Krishi business in the list of potential countries, one of Vikas Yojana' and 'Organic Value Chain the key tasks was to focus on attracting Development in North East Region'. business to India. The present bill delivers well on that stance too. Rural Development had also been a focus area for the current budget. A target of 100%  The Companies Act will be amended village electrication is self imposed with a accordingly to make the environment more deadline of 1st May, 2018. stable for start ups.The bill also focuses on Human capital formation  “Ek Bharat Shreshtha Bharat” programme willthrough improved education and health care. be launched to link States and Districts in an annual programme that connects people A new health protection scheme was through exchanges in areas of language, launched to provide health cover up to one lakh per family. 3000 stores are planned to be opened under 8

THE NEWS ROOM R-EVOLUTION, 2016The Union Budget or Annual Financial Statement global economy.2016-17 was a plethora of new policies andchallenges. Ranging from agriculture, farmer  Economic growth touched a whooping 7.6%welfare and rural welfare to skill development, in 2015-2016, andjob creation, affordable housing and a cleanenvironment, the new roadmap is all set to pump  Foreign Exchange Reserves touched thein fresh blood and energy in the economy. highest level ever.The previous nancial year gave highly The future course of action mainly focuses onimpressive stats to begin with. ensuring macro-economic stability and boosting domestic demand. New initiatives like Pradhan IMF hailed India as a 'bright spot' amidst a slow Mantri Fasal Bima Yojna are put forward to ensure Illustration By: Meena Saini 9

The Commerce Society, SRCC THE NEWS ROOMTHE WAIT CONTINUES: GST Saumya JoshiFirst it was April 2012. Then September 2015, now becomes simplied and transparent. Increasedits June 2016. You would think that a reform tax revenues would help the government reducesuggested for the rst time in 2001, would be the scal decit. Thirdly, there is a fall in prices ofimplemented by 2016, but it seems like the goods and services, now that manufacturersdemocratic process has taken its own sweet time don't have to include taxes in their cost ofwith our home favorite, Goods and Services Tax. production. This bodes well for Indian exports which will become more competitively priced inWhat is GST? the international markets.The Goods and Services Tax is a constitutional The hurdles of democracyamendment which would revamp the taxationsystem in India. It subsumes the prevalent indirect Being an issue of national importance, the GSTtaxes, instead replacing them with a single tax has attracted political controversy as well. TheIllustration By: Divyani Malhotrarate which is charged at each stage of the Congress, while blaming the BJP for stalling thepurchase of goods and services in the economy. vote on the GST during UPA-II, continues to repeatThere is a bifurcation among Central and State the same. Though the BJP government managedGST; they will levy differing, yet uniform tax rates to get the Lok Sabha to pass the bill in 2015, theon all goods and services. Rajya Sabha-where the Congress holds majority- has stalled the bill due to specic demands whichWhy is GST important for India? it feels must be necessarily met. Despite high level meetings, and certain concessions on BJP'sIn a country like India, which is actively looking for side, the Congress continues to stick to its tinyinvestments, ease of doing business can hardly demands, and the BJP remains adamant on notbe unwelcomed. A unied taxation system conceding anymore.implies a simpler tax structure, which means thatindividuals do not have to le extensive The future of the much needed reform has beenpaperwork for multiplicity of taxes to be paid. On held to ransom by political interests and we onlya second level, tax compliance will increase, hope for a clearer picture in the coming months.according to a report by CRISIL, as the system 10

THE NEWS ROOM R-EVOLUTION, 2016AADHAR BILL- PRIVACY V/S EFFICIENCY Vaishnavi PaulWhen it comes to policy, politics and innovation, and a court order seeking biometric information.India tops the list! The latest example being The However, the national security exceptions in theAadhaar (Targeted Delivery of Financial and bill are too broad. It negates all protections the billOther Subsidies, Benets and Services) Bill, 2016. It seemingly provides.was necessary for Aadhar to have a statutorybacking otherwise it was subject to challenge The other side of the same debate provides someand was actually challenged. The bill was passed mind blowing stats. The linking of LPG benetas a money bill in Lok Sabha and for the scheme and PDS (in the states of A.P, Telangana,opposition; this marked the beginning of a string Puducherry and Delhi as pilot schemes) hasof criticism. contributed to Government savings worth Rs.15000 crore. Apart from this, the uniqueThe two main pillars of criticism were the bill's Illustration By: Bhavna Marvaiauthenticity as a money bill and the privacydebate initiated by the bill. On both these identication ensures that no one uses the benetstances, however, the present bill stands week. twice over; this has led to the detection of LPGThe Aadhar card collects all the biometric corruption. The Government claims thatinformation and when it is linked to an individual's scholarships and pensions are now reaching thebank details, income, health and other private right people. Using the Aadhar, the MGNREGAstuff, maintaining its privacy is a mammoth task. beneciaries will get money transferred directlyBureaucrats and infact everyone, will have to their bank accounts.access to terabytes and gigabytes of commonpeople's private information. The Bill proudly All in all, the bill is a brilliant step for properannounces that the Biometrics will not be shared distribution of consolidated funds of India.with anyone except in case of national security However, it is trapped in tight knots of exposed privacy. The Government must ensure that these knots are untied before they cause the fabric of nation's patience to split apart! 11

The Commerce Society, SRCC THE NEWS ROOMLIBERALIZED FOREIGN EXCHANGE SCHEME Khushboo ChattreeThe transition from FERA to FEMA in 2000 not only under the Black Money Act.encouraged external trade and payments but Further RBI said that no permission needs to bealso changed the nature of offence under the sought under FEMA when assets have beenact from criminal to civil, this was one of the many declared if they are repatriated within 180 days,steps taken towards economic reforms to unless otherwise continued to be held abroad.liberalize the economy and cut down on Rules for foreign investors in exchange tradedrestrictions. currency derivatives were also relaxed by increasing trading limit 1.5 folds to $15 million. ThisThe LRS - Liberalized Remittance Scheme started was the same year when the undisclosed foreignin 2004 allowing individuals to remit money across income and assets, Imposition of Tax Act (blackthe board without seeking specic approvals money) was brought into force which aims tofrom the RBI, was one of our rst moves towards curb undisclosed foreign assets and income andlowering restrictions. Under this scheme all Indian further imposes tax and penalty on them.residents can remit upto a certain amount across Non-tariff barriers to economic activity such asthe border per nancial year per person for a permits and licenses, long delays in gettingpermissible level of current or capital account approvals from government agencies are antransactions without prior approval from the RBI. incentive to proceed with undergroundRemittances are permitted for a variety of economy and hide black money. When onepurposes including healthcare, education, cannot obtain a license to undertake atravel, property, shares, gifting, donation, legitimate activity, the transaction costsallowances or family. Individuals can also open approach innity, and create insurmountableand maintain accounts with overseas banks. incentives for unreported and unaccounted activities that will inevitably generate blackAs of February 2016 the maximum permissible money. Economic liberalization in India since theremittance was $250,000 per person per nancial 1990s has not only promoted growth but has alsoyear. encouraged compliance; taxes collected by the government of India have also notablyHowever this scheme does not allow for trading increased.on foreign exchange markets and the purchase While economic liberalization can be questionedof foreign currency convertible bonds sold by in its entirety in terms of ethics, the advantages inIndian companies abroad. terms of growth boost and 'fair-play' market cannot be completely undermined.Some countries having been identied as 'non-cooperative' have been barred from TRIVIA: UK is the world's biggest forex markettransaction. Remittances are also not allowed to with 41% of all forex transactions happeningentities that might be a national and global in the UK, only 19% happen in the US and thethreat to security. Individuals can thus put their rest of the world accounts for the remainingmoney in US listed stocks, buy property overseas; 40%.parents can make fees payment for childrenliving abroad easily as long as it is in thepermissible limit.Among the other reform measures taken by thegovernment was a new industrial policy whichincludes abolition of licensing, freedom to importtechnology and free entry of Foreign Investment.In September last year, RBI eased the regulationson resident Indians repatriating assets abroad aslong as underlying taxes and penalties are paid 12

THE NEWS ROOM R-EVOLUTION, 2016 STAND UP INDIA, START UP INDIA Vedika GuptaWho wouldn't want to follow their passion and To inculcate the entrepreneurial spirit at earlyvision? Who wouldn't want to be their own boss stages of a person's career, and give the much-and gain more credibility at work? Yes, that's needed exposure at student level, thewhat the whole start-up culture/bubble is all government will introduce innovation relatedabout, people are ready to chase their ideas, programmes for students in over 5 lakh schools.take risks, get better opportunities, interact with So, a private-public partnership model is beinginnovative people in a great work atmosphere. considered for 35 new incubators and 31Moreover, one will be instilled with the value of innovation centres at national institutes. Then, Thehard work, ownership and self-sustainability. government plans to set up seven new research parks, including six in the Indian Institute ofKeeping this culture in mind, our honorable Prime Technology campuses and one in the IndianMinister Narendra Modi has initiated a campaign Institute of Science campus, with an investment'Start Up India, Stand Up India' in order to of Rs 100 crore each. Also, The government willencourage people to covert their dreams into further establish ve new biotech clusters, 50 newreality. bio incubators, 150 technology transfer ofces and 20 bio-connect ofces in the country.On January 16, Prime Minister Narendra Modiunveiled an action plan for start-up enterprises in Lastly, norms of public procurement and rules ofIndia. He also announced a self-certication trading have been simplied for the start-ups.scheme related to nine labour and environment Moreover, if a start-up fails, the government willlaws. He said that there would be no inspection of also assist the entrepreneurs in nding suitablethe enterprises during the rst three years of the solutions for their problems. If they fail again, thelaunch. This cuts down on bureaucracy, and government will provide an easy way out.allows them to lay a strong foundation withoutany external disturbance. These are some very bold steps taken by the Modi government but in the wake of political ak itIt would be an all-inclusive action plan to boost draws currently. This'll encourage people withsuch ventures that would boost employment entrepreneurial spirit to take risks and providegeneration and wealth creation. Certain some cushion in case they fail. So, if theannouncements were made which would allow government actually manages to implementit to go on greater heights- An all-India hub will be these, it'll provide the much-needed boost to thecreated as a single contact point for start-up Start-Up culture in India.foundations in India, which will help theentrepreneurs to exchange knowledge and Stand Up India, Start-up NOW!access nancial aid. Not only would there beexemption from Income Tax for three year capital TRIVIA- More than 65% of the start-ups in Indiagains tax but also no tax on investments of higher are located in Bengaluru, Mumbai, and Delhivalue. Allows founders to take greater risks, and and its environs, 28 years being the averagesince income is in their hands, they can recover age of start-up founders in India.costs quickly.To maintain the interest of start-ups, there wouldbe an online portal where founders can register.Secondly, A fast-track system for patentexamination at lower costs is beingconceptualized by the central government. Thesystem will promote awareness and adoption ofthe Intellectual Property Rights (IPRs) by the start-up foundations. Founders would get full legalassistance. Thirdly, The government will develop afund with an initial corpus of Rs 2,500 crore and atotal corpus of Rs 10,000 crore over four years, tosupport upcoming start-up enterprises. Best wayto keep the founders motivated and for them togarner funds. 13

The Commerce Society, SRCC THE NEWS ROOMMERGERS & ACQUISITIONS Pranav Jawa¨The safest way to double your money is to fold it over once and put it in your pocket¨The practice of mergers and acquisitions has -Frank Hubbardattained considerable signicance in thecontemporary corporate scenario which is international markets, and are engaging inbroadly used for reorganizing the business ambitious outbound M&As.entities. Indian industries were exposed toplethora of challenges both nationally and The out bound wave has seen a notable shift overinternationally, since the introduction of Indian the past 10 years, changing from deals centredeconomic reform in 1991. The cut-throat on IT and pharma to acquisitions in the consumercompetition in international market compelled and energy space. These new deals have been driven largely by the need to satisfy the growing consumer class and meet its growing need for oilthe Indian rms to opt for mergers and and coal. A large number of M&A have beenacquisitions strategies, making it a vital effected recently e.g.-AdiQuity( Mobile andpremeditated option. network)- Flipkart, YTP Mobile Payment Solutions- Bharti Airtel, BabyOye (Online baby- careThe factors responsible for making the merger product brand)- The Mahindra Group, Coherentand acquisition deals favorable in India are: Navigation- Apple Inc, Urbanspoon- Zomato, Freecharge- Snapdeal, Mygola- MakeMyTrip, Dynamic government policies TaxiForSure- Ola Cabs etc. Corporate investments in industries Sector wise, manufacturing is also going to see good number of deals going forward. Indian “Ready to experiment” attitude of Indian companies made major acquisitions into energy, industrialists mining and utilities, with total reaching USD 6 billion. With the face of opportunities opening upSectors like pharmaceuticals, IT, ITES, to the schemes of M&A, the economic prospectstelecommunications, steel, construction, etc, appear brighter than ever.have proved their worth in the internationalscenario and the rising participation of Indian TRIVIA- In 2006, almost 99 per cent ofrms in signing M&A deals has further triggered acquisitions were made through cashthe acquisition activities in India. payments by Indian companies.In spite of the massive downturn in 2009, the futureof M&A deals in India looks promising. Expertsbelieve that outbound deals are likely to see anuptrend going forward as Indian companieshave strong balance sheets, understand 14

R-EVOLUTION, 2016 THE COMMERCE SOCIETY JOURNEY, 2015-16 The NSE Visit We-Plan Commerce Bizstreet Week 2345Induction 1The journey began with a warm welcome to the new members of the society wherein fun lled activities were planned for all. 15

The Commerce Society, SRCCTHE COMMERCE SOCIETY JOURNEY, 2015-16Induction The 1 We-Plan Commerce Bizstreet Week 345 NSE Visit 2 On a beginning note, the society organized a visit to the National StockExchange in the month of October, for its members so as to give them a rst- hand experience of the intricacies of its functioning. 16

R-EVOLUTION, 2016THE COMMERCE SOCIETY JOURNEY, 2015-16Induction NSE Visit The 12 Commerce Bizstreet Week 45 We-Plan 3 “The start, is what stops most people!\" In the month of November, the society presented \"We Plan-The Business Incubator\", a chance for all the budding entrepreneurs to dilute their apprehensions about beginning it big. A seminar was conducted incollaboration with Sarthy, IIT Delhi to guide the students looking forward tostart-up their own venture and provide them with a platform to showcase their ideas and get started.The seminar was followed by a competition \"Centre de Benecious\" which received a very active participation from the students. 17



The Commerce Society, SRCC THE COMMERCE SOCIETY JOURNEY, 2015-16Induction NSE Visit We-Plan Bizstreet123 5 The Commerce Week 4 This year the society added to its already buzzing calendar by observing “The Commerceweek” in the month of January. An exclusive dossier of thrilling and enriching events spread over the span of a week, engaging students. The highlights from the week are as follows- THE RESEARCH ASSEMBLY Professionals from the Centre for Civil Society (Ranked 5th among the Top Think Tanks worldwide!) acquainted us with the nitigrities of writing a research paper IL GIOCO- The Gamble A series of spontaneous and interactive bidding rounds were witnessed at the classiest bargain this season. COMMITTEE SIMULATION This event involved exchanging mass ideas in drafting the most awaited bill of 2016. The interest groups battled their way out to the most feasible option through discussions and debates. ANNUAL BUDGET DISCUSSIONThe society took utmost pride in hosting the honourable former Union Finance Minister, Shri P. Chidambaram for a discussion on Union Budget 2016.20

R-EVOLUTION, 2016 THE COMMERCE SOCIETY JOURNEY, 2015-16 The Induction NSE Visit We-Plan Commerce Week 1234 Bizstreet 5Come February and the most awaited days are here for the society. The society celebrated the spirit of chasing the vision and not the money with its annual three day extravaganza Bizstreet'16, as a urry of knowledge and fun events were lined up for the commerce enthusiasts, lured a bit by whooping cash prizes. The events were as follows: BARRATO – An event based on the art of bartering. BUSINESS BUFFET- A hardcore nance and numbers' event involving bankers and investors. GENESIS- An opportunity to put forth the start-up idea, to challenge its viability and survival in this competitive environment to emerge as winners, was what Genesis offered to the bright minds . SUIT UP- This time, a snazzy opportunity was given to participants to play the role of top level management executives, all suited up and authoritative in a board room discussion.SPEAKER SESSION- The Society had the pleasure of having Shri Manohar Lal Khattar as the guest of honour for the annual extravaganza.TURNING THREADS- The event endeavoured to provide a real life experience of all that is needed to turn threads and produce the goods we take for granted. DYNASTY DOOM- An exotic treasure hunt spanning over the length and breadth of the entire college. CULTURAL NIGHT- The closing night of Bizstreet'16 witnessed breathtaking performances from the rock band- “The Local Train”. 21

The Commerce Society, SRCC THE BUSINESS INSIDERSOCIAL ENTREPRENEURSHIP Saumya JoshiThe world and Bangladesh stumbled upon the ideate simply because the lack of resourcesGrameen Bank one bright evening in 1976. Here forces them to innovate and come up withwas one of the most efcient systems operating solutions to everyday problems. Case in point;on modern nancial principles, benetting the Kidogo Early Childhood Centres in Kenya provideunderprivileged. 40 years later, in a drastically high quality child care services of working (usuallydifferent context, the world is rediscovering social poor) parents, by hiring local women who areentrepreneurship, and how. then supported through micro nance programmes to start their own businesses!What is social entrepreneurship? Another inspiring example is that of SavvyLoo, which provides a 'cheap, waterless sanitationEntrepreneurship, in a purely academic sense, is solution' which converts faeces into bio wastes,a discipline which studies opportunity creation, providing rural communities across Africa withand utilization, with respect to production of access to hygienic latrine services.goods and services, either by creation of newrms (start-ups) or by developing existing rms Back home, examples of social entreprenearshipand structures for such opportunities. Social include Aravind Eye Care, which subsists onentrepreneurship basically refers to Government and NGO support in order torms/operations which are established explicitly provide vital eye care services in 'inaccessible'for solving certain social issues. rural areas. A. Muruganantham has been recognized worldwide for his successful efforts inWhy is this relevant to developing countries? making cheaper sanitary napkins.The context in developing countries can be best As social entrepreneurs become widespread, socharacterized by the freer, more competitive does innovation, discourse and tangible changemarkets, general state of poverty and emerging in the rusty social structures that we inherited. Sosocial and political infrastructure. At a time when even if we remain ignorant of the millions ofthe entrepreneurial nature of economies is people innovating and inventing for the better,becoming an important point of consideration we can take pride in the bit of rust they havewhen it comes to evaluating their growth rates, managed to clean as you read this article.social entrepreneurship not only contributeseconomically, but by mobilizing people andpractices which are fundamental to socialstructures, addresses the concerns of themarginalized.Vicious cycles of poverty thatexist within such countriesensure that the poor areexcluded from the markets;the general state of healthand education facilities isbelow par, and though theinternet is widespread,information is notdisseminated uniformly. Insuch a scenario, socialentrepreneurs have to comeup with ways to generateincome and facilitatequestioning of undesirablecustoms, such as differentialtreatment based on genderamong others.The unlikely winners in suchcases are the poor, who 22

THE BUSINESS INSIDER R-EVOLUTION, 2016 SOCIAL MEDIA MARKETING Shivansh PuriThe era of entrepreneurship has reached its core, Illustration By: Umang Sejwaland marketing has acquired a higher position ofimportance than ever before. Roping in buyers is complains about your product on Twitter orthe primary objective for all startups to gain an Facebook, you can immediately address theedge over competitors and create a wide comment, apologize publicly and take action toconsumer base in the shortest time possible. make it right. Or, if a customer compliments you, you can thank them and recommend additionalMarketing on social media is an art in itself. The products. It is personal experience that letsright words, coupled with the right graphics at the customers know you care about them.right place, are all that is needed to lure theprospective buyers into taking action. The However, there is a ipside to it. According toadvertisements that we see on the social Social Media Examiner, 97% of the marketers arenetworks, including the smartphone apps, are a currently participating in social media – but 85%result of continuous research of the consumer of participants are not sure what social mediapreferences by the websites over long periods of tools are the best to use. This demonstrates atime. These websites, including search engines huge potential for social media marketing tolike Yahoo and Google, track our website visits increase sales, but a lack of understanding onand interpret our advertisement preferences. Our how to achieve those results. To many, socialinformation is then sold to the businesses aiming media marketing is still a fad and a buzzword withat providing advertisements on the social no practical advantages rather than being thenetworks as well as on frequently visited email “next big thing”.and video streaming platforms. For those still sitting and waiting – yourFor the business enterprises and specically, the competitors have already taken the rst step. Thestartups, going social is a cheaper and more eld is open; don't let them reap all the benets.convenient option than television or print media. The sooner you start, the better you will be. TheAccording to Hubspot, 84% of the marketers potential losses and efforts involved arefound as little as six hours of effort per week were insignicant. In conclusion, the longer you wait,enough to generate increased trafc. Six hours is the more you have to lose. Social medianot a signicant investment for a channel as large marketing, when done right, can lead to moreas social media. Advertisements on social customers, more trafc, more conversions, and itnetworking sites have a deeper impact on the is here to stay. Going social is your best chance toconsumer psyche compared to other forms of go global!marketing. A prospective buyer may forget eventhe full page advertisement in the newspaperregarding the launch of a new product, but it ismore difcult to forget that little popup thatappears while watching a video on YouTube orskimming through the Facebook news feed.Social media, at its core, is a communicationchannel just like email or phone calls. Everycustomer interaction that takes place on socialmedia is an opportunity to publicly demonstratethe customer service level and enrich yourrelationship with your customers. If a customer 23

The Commerce Society, SRCC THE BUSINESS INSIDERBUSINESS BLOGOSPHERE Saumya BansalBlogging is the act of creating short-form content. efforts. It's fodder for Facebook, Twitter, LinkedIn,A lot of people have personal blogs or even blogs email newsletters, e-books, etc. It gives thethat bring in money through selling ad spaces, company a voice i.e., it creates a place to talkbut business blogging is different from all of that. A about new products or services, comment onbusiness blog is a marketing channel (just like timely news topics or market trends, and sharesocial media, direct mail, email marketing, etc.) company initiatives beyond the website. It is alsothat helps support business growth. It does that by the place to let a brand's personality shine anddriving trafc to the website and providing show people what the company is all about. Inopportunities for that trafc to be converted into other words, it creates a two-way conversationcustomers. with customers, prospects and industry peers. The organizations have to stay on top of news, trendsThe greatest advantage of business blogging is and competitors to be successful bloggers. Itonline visibility which is exactly what it sounds like- helps to be a leader, not a follower.the ability to be found and seen on the internet.This could mean that the business pops up a lot in To develop an impactful business bloggingsearch engines, on social media, on other platform certain steps should be kept in mind, likepeople's blogs as a guest writer, etc. Business – research on other blogs, creating missionblogging is one way to help get any business out statement, matching marketing and bloggingin front of people looking for products or services goals i.e. determining which marketing goals areon the internet. Every time a company publishes most important to the company, and seeing howa blog post and creates a new web page, an can blogging be used to achieve them, addingopportunity is added for its site to rank in search the above goals to hybrid marketing/bloggingand appear for the queries people are entering plan, choosing 7-10 categories that addressinto search engines. We can apply this logic to relevant topics of discussion in the business,other digital channels too. In short, business setting a reasonable blogging schedule, andblogging is a low-cost marketing strategy to nally monitoring and evaluating the outcomescreate opportunities to get a company's website of business blogging to realize further avenues forfound by the prospective customers and improvement.stakeholders. On a concluding note, starting a blog for anyAccording to a HubSpot survey, 60% of businesses business can feel like an overwhelming prospectthat blog, acquire more customers. Basically, but the benets clearly outweigh the challenges.blog is the heart of all of your content marketing Illustration By: Karan Oberoi 24

THE BUSINESS INSIDER R-EVOLUTION, 2016 BUSINESS ETHICS Saumya BansalBusiness ethics (also corporate ethics) is a form of donate over $1 billion yearly to charities and non-applied ethics that examines ethical principles prot organizations. If that wasn't enough,and moral or ethical problems that arise in a Microsoft's management and employees havebusiness environment. It applies to all aspects of also decided to tackle America's IT professionals'business conduct and is relevant to the conduct shortage through its TEALS program. Through theof individuals and organizations. Ethicists point TEALS program, Microsoft employees areout that law represents an ethical minimum and encouraged to volunteer at local schools tothat ethical behavior is something more than instruct students in computer science, in thebeing within the law. Individuals—and by hopes that it will inspire them to enter theextension institutions—obtain their values from technology industry. It is only natural thatreligion, philosophy, culture, law, and the special Microsoft employees would be generous people;requirements of particular professions. in addition to being among the highest paidWhen employees inmanagement is America, they alsoleading an enjoy a plethora oforganization in an perks includingethical manner, 100% coverage onemployees follow their health carein those footsteps. premiums. AlsoEmployees make through its Googlebetter decisions in Green Program,less time with Google hasbusiness ethics as a donated over $1guiding principle; billion tothis increases renewable energyproductivity and projects and hasoverall employee decreased its ownmorale. When footprint by usingemployees energy efcientcomplete work in a Illustration By: Mahi Gangwar b u i l d i n g s a n dway that is based on honesty and integrity, the public transportation. The company is also awhole organization benets. As with all business staunch advocate of free speech, which can beinitiatives, the ethical operation of a company is observed from its frequent conicts with thedirectly related to protability in both the short Chinese government. Google is also an openand long term. The reputation of a business from supporter of gay rights. These examples make itthe surrounding community, other businesses and clear that ethical behavior is a key ingredient ofindividual investors is paramount in determining any organization's success recipe.whether a company is a worthwhile investment. Ifa company's reputation is less than perfect Business Ethics thus, are not denable, notbased on the perception that it does not operate implementable, because they are not conscious;ethically, investors are less inclined to buy stocks they involve not only our thinking but also ouror otherwise support its operations. With feelings. It's been rightly said, “If you build thatconsistent ethical behavior comes increasingly foundation, the moral and the ethical as well aspositive public image, and there are few other the business and the experience foundation,considerations as important to potential investors then the building won't crumble.\"and current shareholders.The tech giant Microsoft and its employees 25

The Commerce Society, SRCC THE BUSINESS INSIDERFAMILY BUSINESS ENTERPRISES Arpit KhemkaTo many, the phrase “family business” connotes a negligible before) so as to prevent the egosmall or midsized company with a local focus and clashes amongst the patriarchs (brothers). Thea familiar set of problems, such as squabbles over Jindal Group, The Birla empire handled bysuccession. While plenty of mom-and-pop rms Priyamvada Birla are good examples.certainly t that description, it doesn't reect thepowerful role that family-controlled enterprises The method which The GMR Group, theplay in the world economy. Not only do they infrastructure heavyweight, is employing isinclude sprawling corporations such as Walmart, another fascinating example. In order to avoidSamsung, Tata Group, and Porsche, but they any conicts and misunderstandings within theaccount for more than 30% of all companies with family, they have framed a 'FAMILYsales in excess of $1 billion. CONSTITUTION' where trivial things such as living standards, which school to attend, are alsoTheir importance is possibly best elucidated in the dened in order to avoid any resentment. ThisIndian context where they incontrovertibly form system might seem intrusive but it ensures thatthe backbone of the economy. Proof? The family members have a similar world view andsensex went down 80 points on 3rd Aug 2005 value systems.when Anil Ambani raised ownership issues in theboard meeting the same day. Name any Also, these enterprises are developing aindustry or sector where their dominance is not roadmap or a procedure to induct their sons andfelt. Automobiles- Bajaj. Telecommunications- daughters into the business. Work experience,Birla, Aviation-Wadia Group, Pharmaceutical- education, inclinations are some of the variousDabur Group, Financial services- Murugappa parameters where they are judged.Group, Power- Reliance etc. These are just a fewto name. Mostly these business enterprises with The last way is to divide the empire but it results insuch exorbitant investment capacities have a loss of resources and the market share.extremely diversied operations. Two out of every Therefore more and more ways are beingthree listed companies in India are family- deployed to avoid this. So much so, premiercontrolled, making the country home to the educational Institutions i.e. Ivy leagues, Indianlargest block of family businesses within Asia. School of Business, etc have special courses dedicated to family business management. SuchWhile many family businesses in India are is the need felt at the moment for family businessprosperous, some face a number of unique management! Irrespective of the aws inherentmanagement challenges, including lack of in family business, their success and sustainabilityprofessionalism, nepotism, and mismanagement. cannot be questioned even by the topGlobal Research shows that Only 13% of the academicians.family businesses survive until the third generationand only 4% go beyond that, while one third of “Before the multinational corporation, there wasbusiness families disintegrate because of family business. Before the industrial revolution,generational conict. The Birlas split after three there was family business. Before thegenerations, the Ambanis in the second enlightenment of Greece and the empire ofgeneration, and the Bajajs in the third generation. Rome, there was family business,”–said Willium OThe Jindals have divided the business empire Hara, an academician specializing in familyoperationally; though the control of the business to demonstrate the longevity andcompany is centralized in the hands of Mrs. Savitri endurance of the family businesses tradition.Jindal. However, the close-knit structure offamilies, which helps to foster teamworkcombined with respect for shared values andfamily members, has been the key to the successof many family businesses.In order to combat these problems, (there ismassive value destruction when the news of splitcatches market by surprise), many companiesare seeking ways to harmoniously settle downissues. It comes as a surprise to many that there isa rapid increment in the involvement ofdaughters in management (which was close to 26

THE BUSINESS INSIDER R-EVOLUTION, 2016 CASHLESS ECONOMIES Pranav JawaA cashless economy is dened as a situation There will be efciency gains as transaction costswhere there is very little ow of cash in the society across the economy should also come down.and thus much of the purchases are done by theelectronic media. These media can be debit Despite the recent expansion in digital walletcards, electronic fund transfer, mobile payments, usage as well as the introduction of specializedand internet banking. payments banks, a lot needs to be done before cash is eased out of the Indian economy. One bigThe government wants India to be a cashless reason many Indians use cash intensively is thateconomy: the move towards a cashless half of them do not have bank accounts, so theeconomy is a move towards greater success of initiatives such as Jan Dhan accountsaccountability towards the ow of money, linked to Aadhaar data will be very important. Areduction in black economy and bringing more robust payment mechanism to settle digitalpeople into the banking system. transactions is also needed, though the NationalMany developed countries such as Sweden are Electronic Funds Transfer and Real Time Grossalready moving towards a cashless economy on Settlement services have been at a good go. Thethe spine of new payment technologies. Even Reserve Bank of India too will have to come todeveloping countries such as Kenya have made terms with a few issues, from guring out whatimmense strides in mobile payments. A drastic digital payments across borders mean for itsreduction in the use of cash has several potential capital controls to how the new modes ofbenets: payment affect key monetary variables such as the velocity of money.It will attack the problem of black money byleaving behind a transaction trail. The Indian central bank will also have to shed some of its conservatism and see itself as theThere will be greater efciency in welfare mover of the overall nancial development.programs as money is wired directly into theaccounts of recipients. 27

The Commerce Society, SRCC THE BUSINESS INSIDERTHE FLAWED BEGINNINGS Shivansh PuriStart-up is that new guitar that every graduate as Illustration By: Gaurav Silwell as undergraduate today needs. However,many enthusiasts fail to navigate the growth of The next big faux pas committed is on thetheir business and commit mistakes, and end up nancial front.being statistics on their journey to success. Handling money correctly, as well as raising theMore than 90% of the startups fail and 50% of all right amount of funds from the right sources, isnew businesses fade out within the rst 5 years of one of the nancial issues. Raising too little or toocommencement. Scaling too fast and too soon is much money is bad for a nancially soundthe number one reason most new companies enterprise. Further, spending too little or too muchbreak down. is also detrimental. Startup funding has reached an all time high and many are claiming that this is Going alone is one of the biggest follies the dawn of a new renaissance for startups and committed by entrepreneurs. Two founders, entrepreneurs since so much more capital is rather than one, signicantly increase the available; but in reality, there is a major problem odds of success. There can be 30% more skewing the data and stiing the potential of investment, the customers grow 3 times as fast, countless new businesses. and the possibility of scaling up too fast is quite low. However, ghts and deadlocks among The reality of the modern startup market is that, founders may prove to be major hindrances while the available startup funding has grown, for smooth conduct of business. the possibilities of getting that funding have actually decreased. Unless you have a provable The human resource and legal functions also model, an existing history, or a huge base of need to be performed well. Getting the hiring clients, investors will pass you up in favor of the process wrong and poor investor multi – billion dollar prospects that make up only a management are some blunders that can tiny percentage of all startups. There is no easy make your business history. Legal aspects like solution to this problem. If you want venture poor contract development, not starting the capital these days, you need to prove your worth business as a limited liability company, lack of rst – and often, that means sinking or swimming intellectual property protection and by your own hand and your own nances. employment documentation, non- compliance with securities and tax laws, and To conclude, entrepreneurs must not be afraid of not having the right legal counsel, can committing mistakes. They are a part of the seriously damage a smooth running business.A learning curve. Just doing the small right things at related mistake in this area is putting a half the right time will lead to a smooth sailing and hearted effort in the business. Budding hassle free dream venture! entrepreneurs often ignore the “hunch” and lack the ability to pivot. Sometimes, businesses fail to design products and sell them since they have not specied their target customers. Skimping on the business plan, slowness while launching, choosing the wrong platform and poor choice of location are some errors that pull down the business. The “Derivative Idea” problem is way too common among startups, and it is highly probable that the startup will go down if it has come up as a result of a slight modication of an already existing idea. 28

THE BUSINESS INSIDER R-EVOLUTION, 2016 PREDATORY PRICING Khushboo ChattreeMarketing and pricing are the two major factors Though the difference in manufacturing cost andthat determine the success of a new product that market price is excessive, the companies thatenters a market in the early stages. The producer decide to adopt predatory pricing strategy hopeneeds to deliberate over many aspects like to make up for the losses by hiking prices in theoverhead expenses cumulative of which in turn future. The strategy might completely fail if thereects in the nal market price determined for competitors are stronger than anticipated or arethe good. replaced rather than ruled out during the course of time. The barriers to entry also have to be With increasing market competition and the strong enough to prevent entry long enough to atdesire to have early large volume sales the least overcome the initial losses. A prerequisite toproducers might resort to penetration pricing by predatory pricing hence is that the companysetting initial low prices to gain large market share should be stronger than its competitors andquickly with an intention to raise prices in the should have enough nancial reserves to survivefuture. Extreme extent of penetration pricing with the initial losses.long term goals is known as predatory pricing. The'predator' sets very low prices with an aim to push Predatory pricing evidently is not a sport for theout other competitors from the market and new kid on the block, the company must be largeestablish monopoly, once it becomes the only enough to subsidize a product from the prots ofplayer in the market it hikes the prices way above its other products, and do so long enough to drivenormal. other competitors out of the market. E.g.- ITC with its highly protable business in cigarettes heavilyThe idea though simple to fathom has posed invested in consumer products to quickly acquireserious legal concerns as it interferes with the large market share (Godrej), exhibitingmarket competition, thus affecting both output penetration pricing strategies to become a topand the efcacy of market allocation. The ranked brand within no timeCompetition Act passed in India in 2002 denespredatory pricing as \"The sale of goods or Most see penetration and predatory pricing asprovision of services at a price which is below the unethical, not only are small businesses devoid ofcost, as may be determined by regulations, of opportunities to establish themselves in theproduction of the goods or provision of services, market, even consumers are losing out. The lackwith a view to reduce competition or eliminate of incentive to new market entrants leads tothe competitors\". below optimum efciency and lack of innovation in the products. 29

The Commerce Society, SRCC THE BUSINESS INSIDER NICHE MARKETING Khushboo ChattreeWhat? await niche marketers as they are most vulnerable to even slight changes in market'All I wanna be is everything at once'. environment. Thus niche marketers need to be able to co-evolve with the changing needs of theLenka's words pretty much summarize our desire niche community. If unable to do so the businessto be everything to everyone. But whether might entirely collapse. They hence need to haveperfection is the same as striving to be our best is greater adaptability, good decision making andalso a popular debate. efcient market research and analysis.However in business these days, less is the new E.g. - With only 18% market share in themore. Having a large market share in a smaller smartphone market even the tech giant apple ismarket is preferred and is referred to as Niche seen as a niche market player, catering to aMarketing. Rather than trying to appeal to the specic group of individuals willing to pay amasses, niche marketers narrow down their focus heavy price for their phone. Some believe theto appeal to a certain group of people, basically exclusivity thus created makes its productsbecoming a go-to-company for the customers in sought after. Others believe it is time for apple totheir niche. produce cheaper phones catering to a target market.One to one marketing which refers to organizinginformation and prioritizing it, based on an With a steady rise in the innovative marketingindividual liking is often confused with niche techniques 'Niche Marketing' denitely standsmarketing. Most commonly used for interactive etched in the minds of the sellers as well as themedia like the internet, one to one marketing buyers.allows the website to track an individual'sinformation and give suggestions to each TRIVIA- A niche that exploded:customer in their market. Niche marketing on theother hand is basically having a smaller target One of the biggest business success stories ofmarket itself. the 21st Century started out as an “online mixer” for college students. Mark ZuckerbergWhy? started Facebook as an Internet forum for Harvard University students to see pictures ofThe advantages of being a niche marketer are and make electronic connections with theirmultiple and diverse. First of all there is little or no classmates. The site was initially marketedcompetition for a successful niche marketer as exclusively (and very successfully) to collegethey might end up dominating their target students before exploding onto the culturalmarket to such an extent that they have little or and societal landscape in the US and thenvirtually no competition and the threat of new internationally.entrants is also very low.With higher customer satisfaction due tospecialized product and the development of astrong customer relationship over timecompetitive threats can be avoided. This alsogives the business greater stability and the protmargins are invariably higher as customers will bewilling to buy products at a premium price from acompany that specializes in catering to theirspecic needsThis leads us to conclude that to be successful asa niche marketer it is imperative to possessexpertise in a particular eld as well as the abilityto constantly build up on skills and capabilities,that is never undermine the importance ofpossessing a 'niche' for the business. Expertise andspecialization are in fact critical to a nichemarketer's long term success.This focused approach saves the company fromwasting time in reviewing market strategy forevery group of customers and helps the enhanceefciency of their core business.Does this mean that being a specialist in your eldand having a target market sorted out for yourselfis enough? No. Risks and challenges always 30

THE BUSINESS INSIDER R-EVOLUTION, 2016CIIE- CENTER FOR INCUBATION, INNOVATION AND ENTREPRENEURSHIP Khushboo ChattreeShri Ram College of Commerce being one of the build an ecosystem of synergized efforts towardsmost prestigious institutes of higher learning in entrepreneurial and business initiatives.Commerce and Economics in India, has studentsand alumni that have a caliber to really change CIIE aims to create an environment thatthe way the business is being done currently and promotes and stimulates the spirit ofset a new norm enabled by the new and entrepreneurship among the students of thechanging technologies. college. It believes that ideas initiated by the students backed with sound business acumenHowever, it was observed that colleges lack an and right guidance from professors, researchersenvironment that is conducive for rening and and industry experts can pave the way forbolstering business plans thereby preventing successful transition of start-ups to establishedthem to explore their career opportunities in businesses.greater depth. Plus, at such a nascent stagethere is lack of potential resources and CIIE basically aims at providing help to startups inexperience. And, It is essential for entrepreneurs mentoring, fund raising, guidance, access toto be in constant touch with the right people and service providers etc.capitalize on the networking opportunities as andwhen they arise. Despite CIIE being at a nascent stage, it is doing very well for itself and has quite a few startupsMoreover, Incubators have always been under it. Not only successful startups likeassociated with technical colleges, in spite of SeekSherpa, GameZop etc. but also early stagethere being a number of successful startups startups like Eventikka, coverscart.com etc. arewhich are headed by commerce graduates covered under its umbrella.because of which SRCC came up with its ofcialincubator – Center for Innovation, Incubation Initiatives like this will not only allow students toand Entrepreneurship. think differently and follow their passion but also encourage the start-up culture and promote theCIIE, Shri Ram College of Commerce is a student- 'start-up India, stand up India' campaignled centre comprising of SRCC faculty, alumni, launched by the PM Modi.industry experts and like-minded organizations to 31

The Commerce Society, SRCC Fun Section CROSSWORD COMPANIES LATELY MAKING HEADLINES 32

R-EVOLUTION, 2016Answers of Crossword 33

ContributorsTechnical Assistance: Creative Support:Aayush Mathur Simran BakshiYash Singh Isha Saini Kirti Balhara Editorial BoardAkhilesh Agarwala Arpit KhemkaGuntas Sehmi Khushboo ChhattreeKritika Negi Pranav JawaSaumya Bansal Saumya JoshiShivansh Puri Vaishnavi PaulVedika Gupta

CABINET’S EXPERIENCEAayush I learnt a lot during this amazing journey. A lot of work and a lot of fun and at the end I can proudlyMathur say, it was all worth it.It was an amazing Experience!! AayushiI've learned to work with people who come from diverse background and have equally diverse Dhawanworking style. It was Indeed a transformational journey!Abhinav ComSoc has been such a wonderful ride! I've learned so much over the past one year. From Kumar handling a team to effectively raising the target budget, every little thing has taught me so much. I wish I could relive all the moments of ecstasy. All the best to next year's cabinet!My journey with Comsoc can be compared to a roller-coaster ride. It had many ups and downs Amanbut each one just adding to the thrill. I was exposed to a plethora of opportunities which are a Agarwalahuge part of my experience bag now! I'll surely miss working in this team!Anjali It was an incredible journey with amazing bunch of people. I have learned a lot in this journey,Nair from handling pressure at crucial moments to working with such amazing and crazy bunch of juniors. I'll cherish each and every moment. Hopefully this bond will last forever.I've worked for many teams but in Comsoc I felt at home, it's a family where every victory is Anvicelebrated and every failure is accepted. A family which gives you a shoulder to lean on and a Guptastep to climb higher!Divya I was filled with excitement when I joined, leaving with nostalgia in my heart. The CommerceGupta Society has been the best experience for me at SRCC. It made me a better person and a team player.It was an amazing journey, full of learning and fun. Working with a team of juniors helped me in Ishabuilding management and leadership skills. From working in lawns to finding a proper place to Sainikeep our stuff, from exploring new ideas to their execution; it was in all a fun and memorableyear.Kashish Being a part of the Comsoc family was a learning and exhilarating experience. It has given me Anand memories and bonds that I'll cherish throughout my life. Comsoc has been a journey where there is no ending, but a beautiful beginning!It was a memorable journey, learnt new skills which helped me in improving my personality. Kirti Balhara

Mohit Comsoc is a society where ideas are nurtured and not just reciprocated, where opinions matterSinghania more than designation and where people are encouraged to start dreaming even when they're awake.“A mesmerising year full of bondings\" Parth MoreRaajkumar The 9 months that I have travelled with the society have taught me a lot of stuff. I have enjoyed S. and cherished each moment spent with my Comsoc family. The bonding is so strong that it is going to be unbreakable for life. Thankyou Comsoc, for everything!Since the beginning, my journey with comsoc has been a very memorable one. We have Rishabhalways tried to take it up a notch and do some impact generating work. Hoping to see society Kumarreach greater heights in years to come. AgarwalSameena One word that describes my Comsoc journey is \"Enriching\". Working with enthusiastic Jaggi individuals with unique outlooks, driven by a common vision of keeping the Comsoc banner flying high, has been one of the best experiences of my college life.It was a great experience working with seniors and juniors. Shikhar MadrechaSimran Last minute changes, handling over excited juniors, brainstorming ideas and implementingBakshi them.All this with a lot of fun and making unforgettable memories.My journey in Comsoc has been an unforgettable experience that will be etched in my memory Tanviforever; A journey filled with learning, experiences and friendships! GoenkaVineet A nostalgic experience. A melodious symphony of love and bond. A journey which comes to anBhatia end, yet craved for!Being a member of comsoc as a freshman even a tech member was way boring. But being a Yashmember of cabinet was amazing, I got a family. My participation was not limited to tech wing Singhonly. Everything in the society, be it events, be it meetings, each and everything made meecstatic.Yashasvi It was an unforgettable experience. All the long meetings for event designing with the juniors Tak was one of the best part of comsoc journey. Work wasn't really a burden. Although it pissed me off so many times :p Most inportantly, the cabinet, Best ever!!

President’s Note The Commerce Society, SRCC has carved itself a niche through the continuous escalation in its performance over the years. The society thrives on the motto of passing on maximum learning experience to its members. I take this moment to extend my word of gratitude to our honorable Principal sir Dr. R.P. Rustagi and our teacher-in-charge, Dr. Suman Bhakri for their valuable guidance and support throughout the year. As a personal experience, the society has been a priceless journey. A lot of people have to be thanked for putting their faith in me through this. I'd be lying if I said it was easy, but the people on the go denitely made it worth the effort. The relentless efforts of my entire team, the bright juniors and the spectacular cabinet, made this eventful year possible. As I pack my bag full of memories, learning and friendships, I wish the best for the new team, wishing they can continue proving why we are the best in the business! Nikunj DarukaSecretary’s Note I joined this society as a rst year, clueless and just coping up with what I was told. Who would've ever thought that this place would soon become my little home in college. Strangers turned into friends, and friends into family. It was like being an entrepreneur within the premises of SRCC; designing events, having marketing strategies, raising funds, organizing the set up and of course the last minute add-ons! I've denitely learnt so much through all of this. Ishita Kishore

TEAM 2015-16 An initiative by : The Commerce Society Shri Ram College of CommerceUniversity of Delhi, Maurice Nagar, New Delhi - 110007 Email: [email protected] www.facebook.com/comsocsrcc