How to Save People from Chit fund Companies?

What the investor should do?

• Control your greed: Chit fund companies might promise you to give more return than in usual investment options in general. Do not get attracted to this and avoid this kind of promise and offer always.
• Check always profile and status of the companies: When somebody approach to you for investment and you want to invest in this kind of companies. First get all the details information about the company- registration, licence, approval for the collection of deposit from all concerned authorities like- Reserve Bank of India, SEBI, IRDA, Indian Companies Act etc.
• Be aware : Always have updated knowledge about the happening s in the environment. Get some information about SEBI,IRDA, RBI, Comanies Act, etc which would help you about knowing your rights and investment schemes which are safe for investment decision.

What the media should do?

• The news paper, TV channel  before accepting any advertisement should verify the  profile and status of the companies. Without proper valid documents of the companies they should not publish/telecast any advertisement of the companies. Because it is the responsibility and moral duty of the media to inform the public about these companies background. Secondly they are in better position and equipped to do this as compared to the public themselves. Majority of the public believe and make wrong assumption about the companies when they see big advertisement in the newspaper and the TV channel. 

What the Govt should do?

• The Govt should  make a Special cell for monitoring the activities of financial companies in the state as well as central level which would look after the monitoring activities of the companies in a very micro level. 
• The Govt should make the staff of some department very skilled enough to check the activities of the NBFCs/Chit Fund companies. Specially the Police and the bank staffs. These are two key role players which may have the information about the NBFCs or chit Funds. The police from top to bottom must be in a position to know what is a company, what is a Chit fund company, what is NBFCs, What are the activities could be carried out by the NBFCs, Who are the regulatory authorities, what are the guidelines.
• The Govt should also try to conduct some awareness program at villages, small towns about the investment alternatives . Where should they invest and where should not. 

Role of other parties:

• Anybody who knows anything about the NBFCs or Chit funds  see  that people are being cheated or mislead by the companies in their locality should try to stop the activities by informing the local authorities or media people immediately so that the people could be save from the worst situation.  

AGAIN   FOLLOWING ' PREVENTION IS BETTER THAN CURE'  IF THE ABOVE STEPS ARE CARRIED OUT BY ALL PARTIES OF THE SOCIETY HOPE TO SOME EXTENT WE WOULD BE ABLE TO  SAVE THE PEOPLE FROM THE CHIT FUND COMPANIES.

'BE AWARE  KEEP AWAY THE CHIT FUNDS'

ACCOUNTING FOR NON FINANCE PEOPLE

ACCOUNTING FOR NON FINANCE PEOPLE.

From my teaching experience in MBA program it has been found that the people who are not having commerce background it is a big and tough task to learn accounting. So I have given the following easy steps to learn accounting in a very simple way without any difficulty:

• At the very out set learn the basic terminology which are to be used  in accounting. These terminologies are considered as the letters to learn a language like accounting which is considered as the language of business. e.g. Capital, Assets, Liabilities etc
• After that learn the concepts or principles which are to be followed in recording the transactions or events and presentation of results. e.g. money measurement concept.
• Next  learn the rules to be followed  in recording the transactions in the books of accounts. e.g. Journal, Cash Book, Ledgers

• Learn how to prepare the  financial Statements. e.g . Trading Account, Profit & Loss Account, Balance Sheet.

Follow the link for details of my PPT to learn Accounting:
www.slideshare.net/.../sankarpresentation1accountancy-13762426

STEPS TO BE FOLLOWED IN SELECTING THE RIGHT INSTITUTE FOR MBA

How to select a good institute/university for MBA?

Answer: In my 13+ years experience of teaching in MBA program I have seen that many students failed to make a right choice in selection of institute/university to pursue MBA/PGDM program. Therefore I have thought on this matter and try to find out some precautionary steps to be followed before making any final decision about admission which are as follows:

• Check the profile of the organisation in terms of  Trust/Society. If  Trust/Society check out whether the organisation is being registered properly or not and if yes still the validity is there or not.For this ask for the Registration certificate of the organisation.
• If  affiliated institute check the affiliation extension letter from the respective university batchwise. check whether the batch to which you are going to take admission it is extended or not. Alongwith this check the NOC of the state govt in which state it is operating regarding that particular program.Check the status by visiting the website of the university whether it is affiliated or not.
• Check whether the MBA/PGDM program is being approved by AICTE or not. If the institute is claiming as approved check the approval letter for last five years and the batch for which you are going to take admission. Check the status of the institute by visiting the website of the AICTE ( www.aicte-india.org). When you find this o.k then only be convinced.
• Regarding claim of the placement ask for the list of placement of the students from the institute for last five years and  cross verify 4-5 organisation from the list via email or phone regarding the reliability of the list given to you.
• Always check double if the list contains any public sector organisation like SBI,LICI, etc because some institute claims as placement for the student though this are achieved by the student as a result of their personal efforts.
• Check the list of the Faculties and cross verify 3-4 out of them whether it is true or not. As because many institutes show a long list of faculties with big names but when checked it is found that they are working in some other organisations or they do not know even about it.
• Check all amenities physically claimed by the institutes. Donot believe only in papers

Hope if you follow the above mentioned steps would help you to make a right decision about your career.

BEST OF WISHES ON BEGINNING YOUR  CAREER JOURNEY

Dr Sankar Thappa