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Old 17th May 2007, 18:24   #91
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Originally Posted by Samurai View Post
BMI is a misleading indicator of health.
That is why the last line of my previous post said "But these are purely my opinions and I am sure many will disagree." , in not so fine print.

any way another linky for those interested in forex management

The Hindu Business Line : India need not fear a rising rupee

Btw , I have not come across any protest from industry / nasscom as they are doing now, when the rupee was moving equally fast , but in the reverse direction against dollars sometimes back. ( most of the annual reports of IT companies mentioned a special profit due to a depreciating rupee then and no foot note on how instability in exchange is hurting them )

Again purely my personal opinion and the intention is not to start a flame war here.
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Old 17th May 2007, 18:29   #92
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Why should I protest if something good is happening for me.
For example lets say there is a slum opposite the apartment building which I live. MCD comes and razes the slum, and it results in my flat property value appreciating.
Will I sit on a dharna?
No.
But if there is no slum, and a new slum starts forming, I will protest.

I will like the policies which benefit "me". Nothing wrong in that.

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Originally Posted by w 12 View Post
T
any way another linky for those interested in forex management

The Hindu Business Line : India need not fear a rising rupee
.
You can post 1000 such links. It does not change ground realities.
Such links are mere words.
The salary that comes into by bank is real. And that has taken a hit all over the industry, including for me. The rising rupee has been factored in the hikes and average is going down. For a company which imports, they would have gotten better hikes... but for me its not good.
No matter if there are a million such links.
These links will not increase my salary, a falling rupee will.

Last edited by tsk1979 : 17th May 2007 at 18:33.
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Old 17th May 2007, 18:45   #93
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OMG this kind of discussion/debate doesnt even take place in the corridors of the FinMin!!
What are debating for? The question of the thread was something different, which evidently has been answered many times over. Re does NOT fall everytime. Period.
Now whether falling rupee benefits 'a' kind of people and harms the others is totally out of context of this thread. So why this ongoing debate? Nothing is coming out of it...
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Old 17th May 2007, 18:54   #94
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Originally Posted by tsk1979 View Post

1. I will like the policies which benefit "me". Nothing wrong in that.

2. You can post 1000 such links. It does not change ground realities.

3. These links will not increase my salary, a falling rupee will.

1. Friend , Please read samurais earlier post to get the drift. Samurais earlier point was that he is more worried about the speed of movement of rupee than the direction of movement. So my question about no satatemnts from the industry when the speed of movement was equally rapid , but in the reverse direction. If Instability hurts, it should hurt irrespective of the direction isnt it? Otherwise , the statement should be instability hurts only when it affects my bottomline.

2, I clearly mentioned linky is for those interested..If you are not interested and think it is not relevant , you can ignore the same.

3. May be . Some one else may feel just the opposite as well and IMO there is space for both opinions .
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Old 17th May 2007, 19:03   #95
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Quote:
Originally Posted by tsk1979 View Post
You can post 1000 such links. It does not change ground realities.
Such links are mere words.
The salary that comes into by bank is real. And that has taken a hit all over the industry, including for me. The rising rupee has been factored in the hikes and average is going down. For a company which imports, they would have gotten better hikes... but for me its not good.
No matter if there are a million such links.
These links will not increase my salary, a falling rupee will
.
How will you feel if the same rupee in the bank that you put as 'fixed deposit' used to fetch you an entire flat and now fetches you just a toilet ??

What if the 5000 rupees would have fetched your entire ration and food suplies for 6 months just fetches you 3 months worth of 'pulses' ??

What if you are retired and you have to live on your saving ??
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Old 17th May 2007, 19:07   #96
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Originally Posted by ess_a View Post
OMG this kind of discussion/debate doesnt even take place in the corridors of the FinMin!!
What are debating for? The question of the thread was something different, which evidently has been answered many times over. Re does NOT fall everytime. Period.
Now whether falling rupee benefits 'a' kind of people and harms the others is totally out of context of this thread. So why this ongoing debate? Nothing is coming out of it...
Don't you think that is the tragedy of our nation that welfare of the common people, the children of those who strived for the freedom of this country is not of PARAMOUNT IMPORTANCE.

And inflation is let loose in bouts of 3-6 months to cater to various interests groups and to let them recover the money spent on funding election campaigns of various political parties.

Don't you think that turning a blind eye to such racketeering and profiteering will ultimately bring down the morale of our nation as a whole and of Indians as a race ???
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Old 17th May 2007, 19:12   #97
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Quote:
Originally Posted by tsk1979 View Post
Why should I protest if something good is happening for me.
For example lets say there is a slum opposite the apartment building which I live. MCD comes and razes the slum, and it results in my flat property value appreciating.
Will I sit on a dharna?
No.
But if there is no slum, and a new slum starts forming, I will protest.

I will like the policies which benefit "me". Nothing wrong in that.


This is a valid protest, and you are totally entitled to protest establishment of slums on govt land by various politicians to tilt the vote bank of an area in their favor.

Slums survive by stealing water & power for which price paid by you will increase. Slums are dens of thievery, and result in dehumanisation of human beings. I will join you in your protest against slums.

Hoping for falling rupee on the other hand is a dagger in the back of all those people who are no more productive and have to live off their savings. One day we all will face such a situation. A falling Rupee means price of essential goods increase and poor are no more able to feed themselves and the result is widespread malnutrition as people have no more access to the range of nutrition they were used to.

The 2 and half sportsmen that our country produces now will also vanish as a result of malnutrition.
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Old 17th May 2007, 20:31   #98
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Originally Posted by tsk1979 View Post
The salary that comes into by bank is real. And that has taken a hit all over the industry, including for me. The rising rupee has been factored in the hikes and average is going down. For a company which imports, they would have gotten better hikes... but for me its not good.
No matter if there are a million such links.
These links will not increase my salary, a falling rupee will.
I work in IT sector. I suppose, you do too. As part of my job, I have to interview and hire people. So, I exactly know what the current salaries are. Not just in Pune, but at across multiple cities in India. And I also know that they are no way reducing. Forget reducing, they are not even remaining static or stagnant. I have witnessed such meteoric rise in IT salaries over last 2-3 years that common non-IT man can only dream of. It may sound exaggeration, but if IT salaries even remain static for next 5 years, it is positively not going to hurt any software engineer.

So, let's stop talking of dropping salaries. Also, let's not talk about profits of IT corporates reducing.
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Old 17th May 2007, 20:38   #99
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IT sector has various type of companies. I am in a niche sector(startup) wherein the company gets funding in $$ from VCs and salaries have to be paid out in rs.
So out profits take a direct hit if Rupee rises.
I was just speaking for myself, not the entire IT sector.
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Old 17th May 2007, 21:03   #100
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It does not matter on the pricing fall out as most companies take the average fluctuations pre-hand..! Also There is an important theory of On Spot Pricing- So if you make a deal today at 9:01 PM when exchange rate is 1 USD $ = 45 INR Rs , then the rate remains fixed as per you stipulated and agreed terms..So tommorow appreciation or depriciation the company pays the Agreed term.
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Old 17th May 2007, 21:06   #101
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Well VC is not bothered about rupee value, right, VC will say I will give you 100 million $ for 2007 and put them into your US bank account. Now suppose Re rises to 40 from 47, thats a 15% jump, its enough to screw startups which are marketing and managementwise based in the US but most of the engineers are based in India.
Thats why I said, I speak just for myself. Its a bad thing for me, so I don't like it, and it has affected the bottom line for us in this scenario.
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Old 17th May 2007, 21:12   #102
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Sir, The problem is that if you keep the rupee devalued you are also affecting future factors,Although in the short term Exporters will cry Murder and VC will start lay off's and lower salaries..! But the Bottom line should be, Nothing remains fixed for long..At some point IT Salaries will fall, With more and more people in the market...there will be surplus of professionals willing to work at lower costs..So This is a proability.

AFAIK, I'm currently doing my Summer Intern at HCL Comnet, in Global Sales division- Believe me There is a provision for revision of prices and all at a defined level, Every IT Company takes a Buffer in regards to Fluctuations..No IT company is plain stupid not to consult and make such provisions,apart from the smaller startups..! Don't Worry VC ain't gonna close down due to Rupee Hike..They will however begin losing people to Banning of Camera Cellular Phones..!
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Old 17th May 2007, 21:32   #103
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AFAIK, I'm currently doing my Summer Intern at HCL Comnet, in Global Sales division- Believe me There is a provision for revision of prices and all at a defined level, Every IT Company takes a Buffer in regards to Fluctuations...
No offense, but if you are an intern, you are very new in the industry, you are talking theory, not from experience. You gonna be shocked what actually happens in practice.

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No IT company is plain stupid not to consult and make such provisions,apart from the smaller startups..! Don't Worry VC ain't gonna close down due to Rupee Hike..They will however begin losing people to Banning of Camera Cellular Phones..!
What you say only applies to huge companies with full fledged finance departments devoted to working capital management, asset management, etc. Most medium to small size firms have no such department. Such companies at the most have just accounts department to deal with payables and receivables, smaller ones even outsource them.

Quote:
Originally Posted by w 12
Btw , I have not come across any protest from industry / nasscom as they are doing now, when the rupee was moving equally fast , but in the reverse direction against dollars sometimes back. ( most of the annual reports of IT companies mentioned a special profit due to a depreciating rupee then and no foot note on how instability in exchange is hurting them )
They have huge corporate finance departments that manage such risks by hedging against it. Medium to smaller firms have no such protection.
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Old 17th May 2007, 21:50   #104
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Sir, I maybe doing an Internship But I'm working on RFP and Value Proposition models with global clients with Pricing Models and Evaluations, I do have a fair enough idea of what comes to me and what I have to put across..After 2 years of working in the Industry..No Offence Taken !

Medium firms do have Asset and Capital Managers..Depends on how and What is the scope of the company..!

These are things which the company should be prepared for, If they don't they are Lousy and Unplanned..!

When you cater to global clients you need to take all these factors into considerations, Infact these days You can outsource your entire Asset Management to ICICI and some other banks..!

If the Rupee escalates then the Importers are happy, as they can import more for the Same amount, Exporters cry Murder as the payment they recieve is less in comparision to What they spent..!

Ideally There should be a Balanced Mix of Exchange Rate, Which is healthy and Essential.

But for any Company thats not prepared, Sorry Sir..This is no excuse to discredit Rupee Rise.

Last edited by wolfinstein : 17th May 2007 at 21:52.
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Old 17th May 2007, 21:53   #105
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IT sector has various type of companies. I am in a niche sector(startup) wherein the company gets funding in $$ from VCs and salaries have to be paid out in rs.
So out profits take a direct hit if Rupee rises.
I was just speaking for myself, not the entire IT sector.
It's the same. Other companies get money in $$ from US clients and salaries are paid out in Rs. Actually, Rupee is appreciating since last 4 years, but IT salaries have increased phenomenally and overall IT sector is doing exceedingly well.

I was part of this industry when there were no salary hikes for 2 years (in many companies) and many people were fired post dot.com bubble. Current situation is nowhere close to that.

But since you are speaking only for yourself, it's perfectly fine.
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