Read "From the Desk of the Chairman" by CS Venkat R Venkitachalam

There was this item of news in the newspapers that came to dominate the headlines recently, perhaps for all the wrong reasons.? A young Chartered Accountant pursuing her career by name Anna Sebastian Perayil died in Pune allegedly because of overwork. Her mother wrote a heart wrenching note to her daughter’s employers (Earnst & Young in this case).? This letter found its way to the newspapers the next morning. So sad that a Chartered Accountant died, and a promising career was nipped in the bud whatever the cause.? This letter caught my attention probably or primarily because of me being a Chartered Accountant and that too from Kerala.? Consequently, it did not take too long to develop a kindred spirit with the departed fellow Chartered Accountant.? Even in our enthusiasm to champion a popular cause, let us do so dispassionately. ?Working hard and putting long hours is a given in a corporate/business job, particularly for Chartered Accountants. ??Someone who trains himself/herself for a qualification in such an environment is normally ready and willing to put in those grinding hours of work in pursuit of a rewarding career.? This is not to say that working conditions coupled with long working days are acceptable. ?Definitely not so.? Considering the kind of gruelling work hours that one is expected to perform, all that one can do is to train oneself to face the real world of business.? ??Having said this, let us look at the real-life experience.? This incidence is in fact one of a kind.? Of course, there could be scope for improvement in terms of work life balance and working conditions.? A trained Chartered Accountant is a fully trained professional ready to take on a rewarding corporate job from day one.? That is the rigour that he or she gets during training.? This also does not mean that there is no more scope for improvements in working conditions.? I fully sympathise with Anna’s mother’s point. Working hours and conditions would be required to be re-examined and that too periodically.? That is a given.? But to throw the baby out with the bathwater would be plainly wrong.? Hard work does not kill anyone; but to work hardly, is not the answer either.?

India has a problem – a problem of plenty.? India may not have plenty of capital; but it has plenty of players ready and willing to play the ever-widening capital markets.? The capital market regulator Securities and Exchange Regulator of India (SEBI) has its hands full with a problem of extreme consequence.? All of a sudden India is emerging as the speculative capital of the field of share capital.? First things first. Why are the youngsters rushing to the share market?? They have big dreams of making millions in no time so much so that you have so many addicts wanting to make millions believing that there exists a market where obscene amount money are ready to be earned.? However, upwards of ninety percent of participants are making losses!? This has the classic signs of desperation on the part of the youth of the country who are desperate to clutch at the last straw to keep making millions – and so they think.? First the basics of this purely speculative business known as Futures and Options (F&O).? ??F&O allows players to speculate on the future price of stocks without actually owning them. However, this is no easy game even for an experienced player-it is purely a financial minefield. Small movements in stock prices can lead to massive gains, but more often than not, they result in even bigger losses. Imagine you believe that Group X stock, priced at Rs 100 today, will rise to Rs 120 next month. You enter a futures contract to buy Group X stock for Rs 100, but the actual exchange happens on a set date—say, the last Thursday of the next month. If the price rises to Rs 120 by the deadline, you buy it at Rs 100 and sell at Rs 120, making a “cool” Rs 20 per share. But remember, these aren’t small bets; you’re dealing with large quantities, so while your profits can multiply, so can be your losses.? If the price crashes to Rs 80, you are still forced to buy at Rs 100, taking a knock on your chin of Rs 20 per share. With such leverage involved, this loss can quickly become devastating for anyone. This is where many traders get caught—they underestimate how quickly small price changes can lead to significant losses. A SEBI study revealed that between the financial year 22-23 and 23-24, more than 1 crore Indians tried their luck with F&O trading. Believe it or not, about 93 per cent of these traders made an average loss of Rs 2 lakh each. These losses are often amplified by high costs, such as brokerage fees and taxes. As per the Times of India this malady has reached epidemic proportions in India already.? The regulator is now closing the gates after the horses have already bolted!? So far, Indians have lost money; now they are adding misery to their losses also, like never before. The only entity that makes money in such transactions is the National Stock Exchange and its brokers. Yes, that’s right. It is sin money in the end.? Gambling is banned in India; but it is okay to tax profits from gambling and add it to the government’s kitty. The taxman has readymade answer for this; profit is profit irrespective of its colour! Unemployment has strange ways of showing up. When livelihood options shrink you stop thinking!

Benjamin Netanyahu is the longest serving Israeli Prime Minister of Israel – a man everyone loves to hate; but a man nevertheless especially in the kind of circumstances in which he finds himself in the midst of a war.? He had been a divisive figure both at home and abroad.? His handling of the war in Gaza has further strained his global perception.? He was at the pulpit at the UN the other day, doing what he does best.? He is the sort of person who gets inspired by his own assertions of whatever he has to say.? He is a master communicator by any standard.? For years now he has been the greatest communicator for Israel, a job that he has done best.? With a pleasing personality and a knack for communication, he does indeed serve a purpose that too convincingly.? Whether I follow him or not, I watch him closely whenever I can on live TV.? He is one man who is not short of enemies.? The day he demits office he would be arrested as a warrant has been issued by the International Criminal Court (ICC) has issued a warrant for his arrest.? The day he demits office he we would be arrested for malfeasance in his own country.? To continue to serve as the Prime Minister of his country is a necessity for him.? More than anything else, he is fighting his own people at home.? Israelis are besieging him to negotiate a deal to bring back the hostages home.? His son is serving in the Israeli army.? Consequently, he has every reason to be on tenterhooks all the time.? To take on an enemy like Hezbollah is perhaps the easiest, in a manner of speaking.? Not much is spoken about his leadership qualities.? One thing however is for sure.? They must be worth emulating. He seems to believe firmly that he can turn the table on anyone through his scintillating speeches. But his people seem to believe that the “world buys his chatter less and less.” The world including the most powerful country (read the US) is putting enormous pressure on him to call a cease fire and negotiate.? But Netanyahu is bravely resisting everyone with impunity.? It remains to be seen for how long.

There is this Australian think-tank called Lowy Institute that comes out with what they say the Asia Power Index (API).? It is based on what influence various countries have on those in Asia.? For example, countries like the US, Australia, etc also figure in this index though they are not from Asia.? But they exercise a huge influence in Asia.? It is about countries who by virtue of their trade relationships exerts influence in Asia.? This year’s ranking shows countries like the US and China.? India figures in the list at no.3 just behind China. What they measure is the comprehensive economic power of a country taking various factors into account.? A country may have the military power; but if it lacks the social cohesion, it may come down in the rank.? You may have military power and economic power but no economic cohesion.? If you are an isolationist power and have less diplomatic influence your rank may come down.? Comprehensive national power is the ability of a country to influence the behaviour of other states including non-state actors and also influence international events and international forces.? That constitute your comprehensive national power.? India is rising, albeit slowly.? It has beaten Japan, but its clout remains below the potential promised by its resources.? By the way the only two countries in the list behind India are Russia and North Korea.? Before you ask me, let me tell you this – Pakistan’s API is 16.?

Sri Lanka has a new President – duly elected and properly anointed – Aruna Kumara Dissanayake.? ??The latter part of the statement is important for the elections and the appointment of the new President in Sri Lanka came about consequent to a turmoil that has few parallels.? Gotabaya Rajapaksa the last President who occupied the office was violently thrown out of his office.? The new President belongs to a Party called Janta Vimukthi Peramuna (JVP) is part of a left of centre coalition.? The JVP on its part was engaged in two major insurrections in the early 70s and late 80s.? For a Party that has had a violent past, the recent elections were quite peaceful.? JVP has come from its mix of revolutionary Marxist – Leninist ideologies.? JVP was also part of Sinhala ethno-nationalism.? Today the Party positions itself as a centrist mainstream Party.? From its roots in the rural South of the country, it has remoulded itself and moved into the space of centrist mainstream.? One of the issues it has championed in the past is that of endemic corruption in the society and governance.? The JVP had been patiently waiting in the wings for its turn that it has got thanks to the economic crisis.? The political winds changed and so did its electoral prospects.? The victory comes at a time of severe austerity in line with an agreement with the International Monetary Fund.? There is mounting pressure on Dassanayake to stay the course with IMF.? Dissanayake has an unenviable task on hand.? If Dissanayake fails to carry the citizenry with it, the xenophobic and polarising forces that ravaged Sri Lanka for decades will be there waiting in the wings.? The country had been plundered mercilessly by previous rulers with scant regard to what the peopled deserved and needed.? On governance parameters the performance of the new President remains to be seen.? Having used to entitled and privilege ruling elite, it remains to be seen how a normal politician assumes the office of the President. ??

Campaign to the White House has reached feverish pitch if you go by Donald Trump’s recent reactions.? He is convinced that Kamala Harris, if elected, will destroy the only superpower in the world – The United States!? You will have problem if you were in the US.? Trump foresees that illegal immigrants will walk into American homes slit people’s throats!? The margins of the winning candidate in the elections especially in the battleground states is likely to be narrow that it will fall within the margins of error.? This is what Trump said at a rally recently "And you remember when they say no, no, these are migrants and these migrants, they don't commit crimes like us," Trump said. "No, no, they make our criminals look like babies. These are stone cold killers. They'll walk into your kitchen, they'll cut your throat."? According to Tump, Biden is mentally impaired. And Kamala Harris is mentally impaired. This is what he had to say about her.? "Kamala was born that way. She was born that way. And if you think about it, only a mentally disabled person could have allowed this to happen to our country." All of Trump's campaign staff and advisers, as well as all of his friends and surrogates in Congress, think that this kind of rhetoric is wrong and is hurting his campaign.? Sometimes you wonder. Is the US the most educated country? Or has it got a retarded person as a candidate?? Either way, it does not bode well for that country.? Sometimes you feel that the US can do with some advice from third world countries like ours.? Even our worst politicians are better than him. Tump needs to be schooled on basic etiquette and manners. But then, who will tell him this?

Thank you.

Venkat R Venkitachalam