Factoring an essential service

I never knew there is a service named factoring till last month. I am sure even most of the business people don’t know such a service exists in India. When I came to know about this service I wanted to know more about it and made some researches to know what it is, and at last I found out that factoring is a service, which Indian business people are unaware of, by which their profit margin declined to a negligible extent.


First of all let me explain you what is factoring. A agreement is entered between the producer of the goods and the factor, the agreement is that, the producer will produce goods and sell them to the seller and in return the factor will give 80% of the invoice value to the producer and will give the rest 20% of the invoice value after the supplier remits his 100% payment to the factor.


Explaining you with an example, assume A as a Producer, B Factor, and C Buyer. A produces goods and sends it to C, the goods worth 100,000. A and B will enter into an agreement. Agreement is that as soon as C sends the acceptance of the invoice and goods A will remit it to the B (I. e the factor), the factor in return will give A Rs. 80000. The balance 20000 will be given by the factor only after he receives 100,000 from C. Factor will charge a small amount as commission from the producer for his service rendered.


Advantages of Factoring
• No needs to borrow money from banks are any other financial institutions for the purpose of working capital.
• As there is no need of any loans the credit worthiness of the producer will increase and goodwill will have indirect effect of increase.
• The factor in a few days will tend to know the clients of the producer and so he may warn the producer about the credit worthiness of that client.
• A factor being professional he know how to get the money from the buyer in case if he does not return it in time
• As we assign the bills receivable department to the factor, our work burden is reduced.


Having all such advantages one may think why factoring has not gained popularity in India! Even I had the same doubt, but I dint stay with that doubt, my research continued to know the reasons behind why factoring has not gained a point in India.
Indian law does not support factoring service. In simple terms, there is no separate law to govern factoring services. In case of any problems legal action is nearly impossible. Those companies which take up factoring service are considered as non banking finance company (NBFC), so if there is a loss they cannot recover their money through Debt Recovery Tribunal OR Securitization Act, which again make people think twice to start factoring services in India and business persons to go for this service.


When Indian government can make laws for all useless shits, why can’t they make a law governing factoring service? Why is this area totally neglected by government of India? As in all cases a bill was drafted nearly 6 years ago to protect this frame work but it’s yet to pass the parliament.


Why can’t government such good bills soon and make them as laws? By making this factoring service as a legal one, which is don’t by giving factoring a legal frame work for its support surely the economy of the nation is going to improve. Ask me how?


If the business persons can get their working capital back in no time then they need not get loans and pay interest, means they will have money in hand. If this is the case the business in India will surely improve at a faster rate, because as the business men have money they may tend to invest and double it where by employment will be created and there will be a circulation of money.
Thus I prefer factoring as an essential service and this is the area to be enlightened by the Indian government. Let’s try to take the necessary steps possible.

1:14 PM | 0 comments | Read More

college capitation and economy are inter related

This is one of the hot and happening topics in most of the places in India. Mainly this topic has a lot to do with a state named Tamil Nadu in India. Ok, don’t try too hard folks am here to tell it. It’s all about college capitation, in other words donation, in legal words illegal collection money from the students for their admission.

This topic has a greater economic importance. Yeah I understand, now you people must have started thinking why i always bringing in economics for everything? Will make it clear, finance is the life line of everything. Without money there is nothing in this world, and for every lay man money is an exhaustible resource. We people try to make choice with the money what we have in hand, and making choice is what is economics. So indirectly economics rules this world. Like it or not.


Coming back to the topic, why are these parents very much curious about their children’s education? I don’t mean to say that parents must not be curious, but why is that you people are spending as much as 20 lakh rupees for your son or daughters education. Most of the parents reply that mark they scored is not enough to join in a good engineering college. In that case why your making your child join in a good college?

You may say many reasons, am not concerned about all that, my point here is very different and again its economy related one. If a man can pay 20 lakhs for this son are daughter as donation, that too without getting bills form the institution then am sure the 20 lakhs paid by him is not a taxed money, in other terms black money.

Here I would like to clear one thing black money is not the money which is black in color, the money which is not taxed is otherwise called black money. Fine, if one parent is able to pay 20 lakh for their son’s admission, and then just imagine the amount of money which he has, also just imagine how many fathers are there these ways to make payments.

You know what; they are indirectly bringing the educational standard of the country to a lower level. This type of admissions leaves a simple mark on the students mind, pay money get anything what you need. This is not the way a student must grow. This is not a healthy sign for a growing nation.
On the other day two of my friends were speaking,
Friend1: my college is charging Rs. 16 lakhs for admission
Friend2: my college is charging Rs. 20 lakhs for management seats.
Is this way to impart education? Hell!!! In NETHERLANDS education is provided at free of cost, am not asking the government to give it at free of cost, at least it must try to curtail all this donations which decides the seat of students.

Government alone cannot handle this problem, students and parents must open their eyes to see their mistakes, and they must come out of the vicious circle of money makes everything. Money is very important I do agree but money is not everything.

If you people can stand united to say no capitation, then let’s see how colleges charge this capitation. You must also understand one thing all this money is yours, hard earned, don’t dump all them in the hands of money launderers.

All J.P.R institutions get money to admit students, this is an open secret, what did the government do for this? Nothing, they won’t do anything because he would have filled the pockets of government officials too..
How is all this happening? Because of parents like you!!! Wake up; don’t take the country to wrong path. Education must be made as a right, like right to speech. Never give your money to idiots like this. They will either provide your child a good education nor will pay tax and give government a good income to serve people. So, friends, let’s stop this from today. Let not make INDIA, as MONDIA. Let not money come in front and lead us. Let us lead the money. Don’t let papers rule.

1:13 PM | 0 comments | Read More

My solution to RECESSION

Again this post is all about economics. True economic interested people try to go till the bottom of this post. Here I come with a solution for the current economic problem. I first assume that all reading this post know the current economic condition. For the one who does not know, here it is

Now the world economy is facing a problem called RECESSION. What is this RECESSION? Might be your next question, I will say you. No economy in this world is static, means every economy is growing. Of course growth rate differs from economy to economy, to make very simply, growth rate differs from country to country according to their policy and political moves.

We must also know one thing that is; no country in the world is self sufficient. We always depend on others for some reasons are for other. Reasons may be anything, food, clothing, defense, etc. but we depend.

Now I suppose you learnt what recession is. Recession may occur to own country, are to all the countries in the world, are to major economic players. If one single nation faces this recession, major economies can join together to bring the nation out, are the nation by itself by formulating its own economic policies can come out of recession.

What will happen if all the countries in this world get affected because of this economic shut down, in other words known as recession? This is the real situation in this world now. No economy is growing at a required rate.
The growth rate is negative are in decimal points. Really problematic. You may ask what if all the nations grow slowly? What if a child who is 10 yrs old has the brain of 1 yr old kid? Problems right? That is what will happen if the countries grow slow.

Here I have a solution to this recession. This recession is because there is no money in the hands of business men and people who want to invest money in some assets. Then where is all the money? It’s with banks and other financial institutions.

I would suggest banks to lend money to promising business men at a low rate of interest, so that, they will eagerly get money, develop their business, give employment and circulate money in the hands of needed.
As the interest rates are low, the business people will show more interest in expansion of business and with that expansion and all upgrading stuff, they will earn profits, out of which they will be bound to pay the interest and amount borrowed.

Simple is it not? Yeah it is. Now what we need to do is circulate money, spend. With an simple example, if A is a person who is earning 1000$ and if he had been saving 100$ all these days, he must start saving 50$ and start spending all the amount.
in other words cut down your saving to half, spend all the money circulate money, make money available in the hands of all, and problem is solved. You may question me, what if the business men are not able to make profit? There are chances for heavy loss. However , a promising business man who has really good projects with him wont fail. How to find if he is capable business man? Very simple, all these days banks where giving loans, just after getting and having a over view on the projects submitted by business persons. From now on start scrutinizing the projects with almost care and give loans.

Thus my solution to this problem is spend, spend, spend. Circulate money. Make money available to all than having it yourself without any outcome.

1:12 PM | 0 comments | Read More

E- Waste Growing as a Silent Killer

This is one among the topics which I always wanted to share with my readers. We all are aware of the gadgets which we get every day from pin to ship, we all use those gadgets in optimum way. How many of us have disposed them in a the it should be done? Not even a hand few is my answer. Would you like say an opposite answer to this? I don’t think you will.

Technology is improving day by day. As it improves even the hazards are improving. The best place to buy electronics in India, in Chennai is Simpson’s kasturi building and Ritchie Street. Perhaps these are the best place to get all electronic goods at a cheep cost.

Why don’t we spend a few min’s in knowing what is happening around us? That to from the electronic items what we use!!! We all know how a computer works, but how many of us know how a computer is made?

A huge cathode ray tube (CRT) full of lead and electronic parts which are made from metals mainly like copper, gold etc are mixed with high toxic chemicals and are printed in circuit boards shortly termed (IC). When these computers are disposed they make heavy environmental pollution

Of course computers are not often disposed, we may say, but the argument a void one. We all know by the time we bill our electronic product, it becomes old. In such a case saying we don’t dispose our computers often won’t hold good. If not for computers at least for cell phones it holds good.

With the new innovation and inventions happening in the mobile world, we get a time where we run out of spares for our old mobile phones and we get a new one disposing the old. I have come across this a few times. Hope you also should have come across such a problem.

With the increasing technological advancement in communication sector especially, the tones of e waste being produced are increasing high in numbers steadily. What have we done to control this? How many of us are aware of these facts? Not even a hand full I suppose.

Some of the developed western countries coolly export their e waste. They often forget they are exporting harm to the society. There are evidences for some of the western countries exporting its e waste to china.

Civil society organization reports that there is threat for Chennai port too. The so called developing countries are trying to export their harm, their hazard to us by the name of e waste. If there is such an attempt then Indian government must surely stop this.

Those companies which sell their components are not ready to get back their own products when their obsolete. Might be this is not their job, but to help environment they must do it. Not all papers are waste. Same way not all companies are against environment. Nokia the leader of today’s mobile world has signed its first by back of its old hand sets in India.

Knowing to use the technology is a good attempt to improve knowledge, knowing how to dispose it in a proper way will be a good service for our nation. At least from now we shall try to dispose the waste in a proper way.

1:12 PM | 0 comments | Read More

E- Waste Growing as a Silent Killer

This is one among the topics which I always wanted to share with my readers. We all are aware of the gadgets which we get every day from pin to ship, we all use those gadgets in optimum way. How many of us have disposed them in a the it should be done? Not even a hand few is my answer. Would you like say an opposite answer to this? I don’t think you will.

Technology is improving day by day. As it improves even the hazards are improving. The best place to buy electronics in India, in Chennai is Simpson’s kasturi building and Ritchie Street. Perhaps these are the best place to get all electronic goods at a cheep cost.

Why don’t we spend a few min’s in knowing what is happening around us? That to from the electronic items what we use!!! We all know how a computer works, but how many of us know how a computer is made?

A huge cathode ray tube (CRT) full of lead and electronic parts which are made from metals mainly like copper, gold etc are mixed with high toxic chemicals and are printed in circuit boards shortly termed (IC). When these computers are disposed they make heavy environmental pollution

Of course computers are not often disposed, we may say, but the argument a void one. We all know by the time we bill our electronic product, it becomes old. In such a case saying we don’t dispose our computers often won’t hold good. If not for computers at least for cell phones it holds good.

With the new innovation and inventions happening in the mobile world, we get a time where we run out of spares for our old mobile phones and we get a new one disposing the old. I have come across this a few times. Hope you also should have come across such a problem.

With the increasing technological advancement in communication sector especially, the tones of e waste being produced are increasing high in numbers steadily. What have we done to control this? How many of us are aware of these facts? Not even a hand full I suppose.

Some of the developed western countries coolly export their e waste. They often forget they are exporting harm to the society. There are evidences for some of the western countries exporting its e waste to china.

Civil society organization reports that there is threat for Chennai port too. The so called developing countries are trying to export their harm, their hazard to us by the name of e waste. If there is such an attempt then Indian government must surely stop this.

Those companies which sell their components are not ready to get back their own products when their obsolete. Might be this is not their job, but to help environment they must do it. Not all papers are waste. Same way not all companies are against environment. Nokia the leader of today’s mobile world has signed its first by back of its old hand sets in India.

Knowing to use the technology is a good attempt to improve knowledge, knowing how to dispose it in a proper way will be a good service for our nation. At least from now we shall try to dispose the waste in a proper way.

1:12 PM | 0 comments | Read More

Child Marriage - A Sin

There are few things which are free of cast, religion and all other differences. One such thing is marriage. We select our life partner. We select them either by being with them are by knowing about them by some source. Marriage is a common aspect.

Is child marriage a common aspect? With technology even our marriages are growing. With the advent of internet and websites, there are many matrimony website which says us the details about life partner. Coming to the point, can you believe my words that, in some part of India the most sinful of act of child marriage is still prevailing!!! I know you all will like to close your tab because you may feel am lying something to increase my website rating. Am sorry your thought is wrong. In India, in Tamil Nadu, in kirshnagiri district the worst act of child marriage still prevails.

Before I say you about the problem I will give a brief description about this place. This is an economically, as well as educationally backward region. Most of the people here are uneducated, and am sure it’s very tough to find a graduate in this lot.I feel you have understood why the problem is there in this part of the nation. It’s worst to know that when the world is moving fast with education and other stuffs there is still a backward part where some unbearable activities still persists.
Can you believe if I say a girl who is studding in class 12 has a 10 months baby? Certainly not I suppose. Even I was like you when I saw the girl. You can say it was only one girl, but it was not so.
Oh god!!! I suffered a great shock when I saw as much as 30 such students who are married at the age of 15 and 17 and even below. Much more heart breaking news was that mostly every one had their own child.

India is a highly populated country. When it comes to Olympics we never score gold. We have just now opened our account. Why is this so? I have a strong point. It’s also because of child marriage. Yes of course I have a something to support to my point.
A girl, who was married at the age of 16, was a state level sports women. If we stop all this talents from growing not only gold we cant win even a bronze medal am sure. Don’t we have any act preventing this sinful action?
We certainly have, but then what is the use? Nothing!!! Not only this mostly no act is functioning in full flow in this sub continent. We have a lot rules and regulations but even a hand few are not know by the people. That’s the major reason for all this social evils.
Every one loves to get married. Every one wishes to have a kid but when they are kid am sure. Child marriage is the most uncultured action. Please stop it, are else you will be behind the bars. Don’t develop a handicapped society. Stop this social evil.

1:11 PM | 0 comments | Read More

child trafficking day!!!

Hello readers, it’s been a long time since we exchanged our views through my blog. Hope it’s more than a month. I was bit busy all these days with my bloody exams. You know, the university where am put up at is the world’s worst one and the name of it is madras university. If you are interested in knowing more about it, see this blog, www.cricoholic.blogspot.com.

This article is certainly not about my bloody university. This topic is not related to economy too. But it has got some economic importance. I don’t know how many of you people are aware of child trafficking. I am sure not many know about this and how big this offense is.




Before getting into the topic we shall first know what is child trafficking. Child trafficking can be simply said as recruiting, transporting, abusing children for sex are for some other cause which has some monetary value.


This problem of child trafficking is gaining some importance in India now a days, just because child trafficking has already invaded our country and working at a high velocity. We are coming across many cases in our country and one among them is, RANI a 17 yr old girl form VARANASI, who was sold to 40 yr old man for Rs. 10000, and her land was taken away, when walked into the police station, there she was sexually abused.

This is just one incident in the past, this is not the only one. A boy from ORISSA who was sold for RS. 15000. He had worked in Chennai for the past 2 yrs where he had not been paid are feed properly. This is a growing problem in our nation, is it not?

How to solve this? To solve this we need the cause. Behind every case of child trafficking we can hear a sad story, those stories will have one thing in common that is poverty, ignorance, and innocence, so this is the common case in child trafficking.

If a crime is done and if the person who committed the crime claims that, he did it because, he dint know the law it will not be accepted by the court, because it’s the duty of every person to know law. If it’s so, then is it not the duty of the court and the government to impart law? I feel it is!!! But we Indians neither know the laws, are the rule that mistakes cannot be overlooked as the man who committed the crime does not know the law. Very fatal is it not?

So only way to stop all this crime is impart law to the people. You may ask me, how you’re saying imparting law will stop criminals from committing the crime. Of course it won’t stop criminals, I will tell you with an example, let’s take the case of child trafficking, in this case if the parents had known that its wrong to sell children, are if they had known that it’s illegal to make minors work they would have not sent them to work either they would have not sold them.


Economic problem of this child trafficking are,

The owners pay children a much lesser wage, some even don’t play, thus the get cheap labor, in other terms labor exploitation, if this continuous then every businessman will try doing this, where only poverty will vest in the country after some years.

Thus it’s time to join our hand together to stop child trafficking. We shall mark this day as the day of child trafficking. We shall bring up and enforce new laws and impart those laws to everyone in the country. We shall stop child trafficking.

1:10 PM | 0 comments | Read More