Saturday, 2 March 2013

Dowry Calculator (PPT and Excel Model)

Dowry Calculator PPT

Dowry Calculator Excel

These were the two files, which Sai had created to find his Net Worth and Dowry amount. He was almost going to patent them, but found that it is Illegal as per IPC laws. So he refrained from filing a patent. But for the use of mankind, he shared it with me. The ppt is the one which he had shown to Anita, and the excel model which he intended to show, but was not able to. After this event, there was a great turbulance in his family life and his parents condemned him for his act. 

However his father got to know his son's (Sai's) psyche and started looking for a bride which will be equally witty to tackle Sai's dowry logic. And he did found one. The story of his next marriage proposal would continue in next post.

Story Continued....... (The Second Marriage Proposal - A witty one)

Monday, 18 February 2013

First Marriage Proposal


This solid dose from Sai made me think twice, and made me realize the fact that finance though very clumsy, could be put to use in our daily life activities too. Anyway, continuing with Sai’s marriage story, it was this day when he met the first marriage proposal shortlisted by his parents, whose photo Sai had approved. The girl and her family had come to Sai’s home where the the first formal meet was arranged. Before meeting her, Sai had looked at her complete bio-data, filled in the excel model and had made some calculations of his own. The girl's name was “Anita” and was a Delhite (born and raised in Delhi), a B-Com from some Tom-Dick-Harry Delhi based college and working for a salary barely touching 6 figures. The girl was quite pretty, with shoulder length silky hairs, sharp nose features and big round eyes. She was wearing an embroidered pink salwar kameez, and nice little gold necklace. The lipstick was very subtle and had a glossy finish, making her lips more attractive. The eye lashes were thick, with beautiful captivating eyes, the first look of which would make any normal guy fall for her. But as the guy in subject is no normal one, Sai’s first thought looking at her was the expense she has incurred to look this beautiful and calculate the sunk cost. What more can you expect from such a finance whiz-kid!

Anita had come along with her parents and her younger brother Dhruv. Anita’s father was an officer with the Delhi traffic police department and her mom was housewife. Her mom was wearing a saree and loads of gold ornaments on her body. It was like she wanted to show off below-the-table earnings of her husband and giving away a hint of their family affluence. Anita’s dad was wearing a Nehru suit and her brother was wearing worn out denims with a tight T-shirt. After a initial few minutes of formal introduction and gupshup, Sai’s Dad asked him to take Anita to nearby CCD and have a chat with her in person so that they get to know more about each other. Sai went to his dad and murmured something in his ear. His dad too whispered something in his ears. Everyone in the room including Sai’s mom was a bit curious about the father-son whisper. 

Sai then went in his room, changed his kurta to wear a polo T-shirt, picked the car keys and carried his wallet and laptop bag. He then asked Anita to come with him to CCD, and her father nodded her, giving a signal of approval to go along with Sai. Sai’s mother was a bit apprehensive at first seeing that he was carrying his laptop along with him to CCD, but refrained from saying anything. Finally Sai and Anita got into his car and he drove her to nearby CCD lounge. On reaching CCD lounge, Anita pointed out a corner table where they could sit together and have a nice cozy chat. It was Saturday afternoon, and the lounge was filled with young couples and other marriage candidates. The entire lounge was painted in yellow and green with cosy red sofas seats and small circular round tables. Sai placed order for “Mint Mystique” and Anita ordered “Choc-orange” coffee. Anita started the conversation by asking Sai about his current job and his life at B-school.

Anita: Dad told me that you are an MBA from Delhi’s top B-school. I have some of my friends currently doing MBA and keep on hearing a lot of buzz about the campus life out there. How was your time in campus?

Sai’s campus life was full of booz and sutta, a consequence of the frustration when he realized that Finance is a useless buzz word and a baseless field. The only thing which he remembers is that every night he used to hang out with his friends on terrace and have pints of beer and smoke and then by some miracle waking up in the morning in his own bed. He never remembered his return journey from terrace to his own room in the dorm. The other thing he remembered was the college parties and the Exams, where more you study the less you score.

Sai: Actually I miss my days I spent in the college. Those were the best days of my life (even though I remember only a few….which he did not say to her). The faculty was very good and knowledge gain was huge.

Anita: You seem to speak less, and to the point. It seems like you are withholding something from me. Did you have a girlfriend or any affair in the college? Or are you forced to marry someone else? You can trust me that I won’t say it to anyone and in fact help you out with this thing.

Sai keeps mum, takes out his laptop from the bag and boots it up. He keys in the password and whiles the windows boots up, looks towards Anita and says:

Sai: I actually wanted to speak something with you. But I actually do not know how to start. I even don’t know what you would think of me when I say it to you. I did not want you to misunderstand me and hence I chose to pick my words carefully. I would like to show you something and hope you understand what I am thinking. It may appear like some jargon at first, but I tried to keep it nice and simple. Here is a ppt which I made for you to look at. I wanted that all things between you and me should be clear from the start of our relationship itself.

Saying this he turned the laptop towards Anita and clicked on slide show. The only thing which one learns in an MBA course is to make PowerPoint presentations, which Sai unfortunately did learn very well but forgot to learn where not to use it. Anita started reading through it and at the end of the ppt, there was a sense of fury in her eyes, her body was shivering and suddenly there was a huge sound, and all the people in the café looked around to see what had happened. As you might think, it was not a slap, but her throwing of coffee glass on the floor in rage.

She stood up and taking big steps marched out of the lounge. Sai was there, sitting alone in the café, with everyone staring at him – some in apathy, some with sympathy and some with curiosity. The meeting was called off and Anita and her parents left Sai’s home. Now you must be curious what this ppt had in it. So I have attached it in the next post for your reference. There was also an excel model which he had created, but could not present it to her. I have also attached the excel model in the next post.

Story Continued.......(Dowry Calculator - ppt and excel model)

Justification of Dowry


Two years later after completing the MBA, Sai was in his 27th year of youthfulness and his parents had already started pestering him about marriage. His dad had registered his name in many matrimonial sites and “Pathakji” kind of match makers and mom had started to bring up proposal from the likes of neighboring “Sharmaji” and “Guptaji”. Sai was currently working with an MNC, earning a 7 figure salary – actually just touched the 7 figure mark barely, and was still confused about his life. The famous dialogue from Dabangg – “Saans kahaa se le aur P**de kahaan se” perfectly describes his situation. However down his mind, he has still kept his passion alive and was always finding a shortcut to reach it. He thought that this marriage would be the one major event – a rocket propeller, which would give a thrust to his life to reach his goal – i.e. to be rich, more quickly.

So with this view in the hindsight, he started collecting his thoughts, gearing up to be ready for marriage, and formulated a strategy to achieve his goal. He started penning down his thoughts and created a strategy formulation PPT, a thing best learnt at B-Schools. He also created a financial excel model applying all the things he learned in those idiotic financial courses he took. Now you must be wondering, what the hell is wrong with this guy? Why is creating a PPT and Excel model for marriage? The simplest answer is  for “Negotiating Dowry” with his to-be-father-in-law. Now if you think I am insane and propagating dowry in this 20th century, in that case let me give the logic Sai had behind dowry, which I felt was fairly justified on grounds of equality. When I had asked Sai the same question his reply was fairly simple. Here are the thoughts which Sai had on dowry system.

Sai: In the world of Business Valuation, the market capitalization ( = no of shares * price  per share) of the company indicates it true worth. The market capitalization indicates the future earning potential and growth trajectory of the company. Higher the market cap more is the earning potential and more is the growth. Vice a versa is also true. So now considering that in this modern society Male and Female are equal in all respect, I believe that it is not the task of the wife to do only the household work, and the task of husband to only work outside and earn money for the family. I feel both the husband and wife should be equally qualified, work shoulder to shoulder and earn for the family. If both of them have similar career growth prospects and earning potential, then they should be considered equal. However if this is not the case, we should then calculate the future earnings of both and discount them with suitable discount rate. The PV of the estimated future earnings would give their true tangible worth (similar to market capital). This calculation is similar to the FCFE/FCFF formula used to find the market capitalization of any business. So if the tangible value (market value) of husband comes out to be more than wife’s, to-be-wife should pay the Present Value (PV) of difference upfront and vice a versa is also true, where to-be-husband would pay the PV of difference upfront to his to-be-wife. Some call it dowry, claim it to be illegal and criticize it. However I feel it is justified and fair to expect such remuneration. Finally we live in world which screams for equality, then why should wife have fun time watching TV at home and husband should be screwing up his precious life working for an errant boss to sustain the family alone. The household work can be outsourced to a maid with a nominal charge. We don’t marry to have our wife work as maids.

These was the strong response i received from Sai which gave his viewpoint on dowry system, and how to use modern financial management models to calculate dowry. 


Story continued...........(The first Marriage proposal)

A Marriage Story!!


Most of my friends have now reached the age of puberty and in few years they would get married and this “Marriage” would be the next major event in their life. So I thought this story of Sai and his marriage would be the best one to start the blog post with.

Let me introduce Sai here. Sai is one of my best friends and happened to study with me during Engineering. We were in the same batch studying ECE in a top Mumbai based engineering college. He was a decent boy with no passion towards any sports, technology or any damn thing whatsoever. His only passion in life was to amass more and more money. Sai was never inclined to engineering or any technical field. He was here because his parents felt it was right for him. After completing (“struggling with” should be more appropriate) Engineering in 4 years, he got a decent paying placement for a monotonous job in IT company. Now you would think that’s a common story like yours. Then you are right to some extent. The monotony was so boring that he decided to do something exciting. And you guessed it right – It was MBA. He thought he would take Finance and learn how to make more money, pursue his passion and come close towards his goals - A common misunderstanding which most people have when they join MBA to pursue Finance.

He gave CAT and got through one of the top B-Schools of Delhi. Even though the fee was high, he thought it to be an investment which would yield life-long benefit – again a common misunderstanding applicants have while joining MBA.  In those 2 years of MBA, he took all Finance subjects the college ever taught in its lifespan in the hope to find the magic wand to make more and more money. 2 years passed by but he neither found the magic wand nor was able to recoup the investment made by him for the course. However as all the MBA grads say, MBA teaches you to be tough, gives you a way of life, and makes you think you are destined for higher roles, (the reality being you still do not have a damn idea in what shit you are and how deep you are in it) in a similar way Sai’s perspective towards life also had dramatic shift. The loan and other liabilities force you to console yourself with this tragedy that whatever happened to you was for the better of it and you start accepting the reality in its true form. 

Story Continued...... (Justification of dowry)

Sunday, 17 February 2013

Welcome Note to Readers


This blog is dedicated to bakchodi (Hindi Slang for Gossip) related to Finance.  Normally we gossip about various things, which mostly fall into the illogical zone. Such gossip rarely dwell into the arena of Finance. However this is my attempt to derive fun through use of Financial Management concepts and take finance into every person’s day to day chores and major life events like marriage.

Hope you would like it and expect that you would have fun reading it. At the same time atleast learn something about Finance the simplest way!

Welcome to the world of Financial Bakchodi!!!