IIM Ahmedabad - Feb 10

Essay: A uni-polar world is better than a multi-polar world

Time: 10 minutes

Comments: Decent enough. I gave examples to both sides of arguments. Much satisfied about the output given that that topic was quite abstract and we were given just a minute to think about it.

Interview: 4th in Panel III

Panel of 2 : Satish Deodhar and Ravindra Dholakia (Both Eco professors)

Time: I think about 20 minutes. Not sure though.

SD: How do you pronounce your name? Doesn't it mean well-being?

Me: Yes Sir. Also, there was a poet after whom I was named - Kshemu Divetia.

SD: Where was he from?

Me: Gujarat, Sir.

(Seeing my form. RD wasn't in the room yet)

SD: So you got exact 50% in CA final. And isn't the passing score 50%? *laughing* What are the odds to doing that?

Me: *grinning* Quite low, Sir. But I've seen cases where people have got exact passing score in all 4 subjects of a Group.

SD: So what are the 4 subjects?

Me: Actually, there are 2 groups, each with subjects. *named them and the last one I named was IDT*

SD: So what is this concept of GST?

Me: The Government wants to codify the entire set of Indirect Taxes into one single bunch.

SD: So what are the different components of GST and why isn't it implemented yet?

Spoke giving examples of Excise and VAT. Opposition from State Governments since the revenue will cease at state level. Asked me if the States will not get any revenue? I explained how it will be distributed by centre to states. But each state has different system of charging. Gave an example of Alcohol - Maharashtra has higher taxation on alcohol as compared to Goa. Issues with states so to the distribution of tax for differential rates of taxation by states. 

*who decides what's under centre or state?* Spoke of 7th Schedule of Constitution - Union, State and Concurrent List. 

*Isn't Service Tax an IDT too?* Yes Sir, it is. I just gave 2 examples with Excise and VAT. *Recent inclusions in Service Tax?* I wasn't sure, but explained how Fin Min is adding more and more services to it. Also spoke in the middle of how Fin Ministry has time and again stated that we need higher IDT collection. *But isn't IDT 80% of Govt Tax Revenues and Service Tax is a recent phenomenon* Yes, but we're charging lower IDT as compared to Western countries. Govt had 10% Service Tax last year, 12% this year and there is a plan to gradually move to 16% with GST.

*So what is VAT?* Value Added Tax. Spoke of MVAT for Maharashtra and GVAT for Gujarat. 

*So what is Value Added in VAT*? It is the value added to each process of manufacturing. SD laughing *Even I know Value Added means addition of value to goods. Explain to me how it works*

Gave a satisfactory answer to how it is a tax on process of each goods provider. Example of manufacturer buying something for Rs.10. He pays VAT on it. He processes it and sells it for Rs.15. He collects VAT from Consumer. Get gets credit for VAT on 10 and pays a net tax. 

RD enters. More questions on Value Added. *So what all expenses are included in Value Added? Is it all the expenses? The value added is to what? We're already paying Taxation on Profits. Why pay double tax on Value Added?

Explained how value added is for the consumers. The tax is collected from the consumers by the manufacturers and paid to the Govt. Value added is only on the manufactured output. So all the expenses that are allocated to the inventory are a component of value added - Labour, RM and the likes. Selling, Distribution and Advertising expenses do not become a part of value added, although indirectly are a component by way of profit on CP of goods sold to customer. Tax is collected on the final SP to the customer.

RD: What is the difference between margin and mark up?

Couldn't explain satisfactorily. Explain that mark up was added on to Cost as profit to reach SP. But wasn't too sure on margin. Fumbled on to CP + Mark up - giving it to agency for sale where you ask for a specific margin on final sale. But stated that I wasn't able to give a clear explanation. (FIRST BLOOPER NOT KNOWING THE DIFFERENCE)

RD: So you aren't working anywhere?

Told him about my internship completing in end of 2011. GMCS that's compulsory for membership. CFA L1, FRM Part I. And decided to take up Law after my graduation while internship was on.

RD: Oh so you're doing CFA and FRM too. And which year of Law are you in? Still pursuing?

Yes. 3rd year of Law.

RD: So general questions on the Law college. Where is it? Where do I live? How do I commute? Evening or morning college? Traffic and how do I face it? Why take train if it's only one station?

RD: So you've been doing so many thing. I doubt you've time to pursue extra-curriculars and hobbies.

Spoke about my quizzing and writing. Told how I have written poems and articles. Have written for college mag to. *Asked me what do I write on?* Personal things. Also told him how I've written first chapter of a book that I intend to write. (Grinning) And dunno how long it'll take to finish but I'll. I want to give a dark ending.

RD: So which is the darkest book you've read?

Bartimaeus Triology. *He didn't seemed to have any idea, was looking at me lil' blank*. Sir, it's written by Jonathan Stroud. 7th book of HP was quite dark as compared to earlier ones. And if you go to the crime genre, Godfather by Mario Puzo was dark too. *No I don't want go to crime fiction*

RD: So you said you're into Quizzing?

Me: Yes Sir. I will participate in Tata Crucible next month too.

RD: So what's your forte? Corporate Quiz? Coz Crucuible is that.

Me: No Sir. Nothing specific. General quizzing. But I like Corporate and Sports. I've taken part in 2 corporate quizes and was the winner in one of them. But the Mumbai University quiz was a general one.

RD: And what was the result there?

Me: *smiling* Sir, I came 2nd.

RD: But now that we've mentioned Corporate, I'll ask you questions on that.

Me: *smiling Sure, Sir.

RD: Which is the largest company in terms of m-cap?

Me: In India or the World?

RD: Everything. Tell me about the world.

Me: Enron. (SECOND FAUX PAS).

RD looking quizzically at me and then at SD.

RD: It's the biggest? Despite it being shut years ago?

Me: (laughing) Sorry Sir. I made a mistake. I meant to say Exxon.

*both of them were laughing*

RD: So what is the m-cap of Exxon?

Me: I don't know, Sir. Wouldn't want to take a wild guess.

RD: It's $400 billion. And where is Apple?

Me: It's second. It was first, but it's now dropped to second.

RD: And why did it fall?

Me: *spoke on how it's faltering after Jobs. Issues with iPhone 4S and 5 sales. Not as per market expectations. This caused it to drop.

RD: Yes, it dropped in the quarter after iPhone 5 was released. So what is ratio of M-cap of Apple to Microsoft? 2 or 4 or what?

Me: I don't know, Sir. But I don't think Microsoft is there in top 10. Might be there in top 20 though. (ANOTHER FAUX PAS AS IT WAS 8th WHEN I CAME HOME AND CHECKED)

RD: So which is the 3rd ranked company?

Me: I don't know Sir. An oil major from China, GE and Chevron are few others in top ten.

RD: So when was Microsoft at No.1?

Me: Not recently. Not many good products since quite a while. May be when XP was released. But surely not in last 5 years.

RD: Yes, it was at the top 10 years ago.

Me: Yes Sir. That was it's peak. XP had been launched and it was doing great back then.

RD and SD: I think we're done. Thank you. Please take a chocolate before leaving. All the best.

(I picked up a Mentos with not mint in it. Empty wrapper)

Me (smiling): Oops. Sorry, Sir. This one is empty. I'll take another one then.

*Getting up to leave. Sees the folder in my hand*

SD: We haven't seen your folder. Please sit for a while so that I can see it.

Me (trying to win a lil' bonus): I'm also interested in sports Sir. I follow football regularly.

RD: So what team? Manchester United, Barcelona or what?

Me: Chelsea FC, Sir.

RD: So where is Chelsea on the table and what points?

Me: 3rd position. It was 46 points. We won yesterday. So it's 49 now.

RD: Who was it against? Scoreline? Goalscorers?

Me: Wigan Athletic. 4-1. Ramires, Hazard, Lampard. Marko Marin (in exact order :P )

RD: And who is at the top? Points?

Me; Manchester United. 62 points and they won so 65 (MINOR FAUX PAS)

RD: When did they play?

Me: Oh sorry Sir. They are playing tonight.

RD: So you're assuming they'll win?

Me: Yes Sir. I know they will.

RD: And who's third?

Me: Manchester City.

RD: So 12 points gap. There isn't any hope for winning the league then.

Me: It is a gap of 62-49 so 13. Ideally, there shouldn't be coz not many games left to recover the points. But unpredictable things have happened in football before so you can never say.

RD: Okay. That's it then. Thank you. Best of luck for your future. *SD shakes my hand*