neat neat exams

an old facebook post . likely to be read again . prompted probably by latest performance. which is not in public domain yet .
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neat exam...

Isn't there something called sense of proportion . if you start making rules to prevent all those exceptional accidents it is not adminstration . It is not even common sense. It is in fact escapism. The easy way out. Shirking responsibility . 

The examiner should have used his common sense . he should have decided that a metal hook in the bra or in the undergarment is not  a copying gadget. Or  a hidden bomb. That is called sense of duty. Not just blindly following a rule , any rule , without trying to understand what it is meant for. Despicable , to say the least. 

To those who try to justify it, just one question . if the girl for whom the scanner beeped was sent in with the bra or the undergarment what would have happened in the worst case. If the heavens  fall we should be able to support it on our shoulders . and that is what goes into the definition of human beings. The minimum requirement.

And a word to those who excel in framing rules to plug all the conceivable loop holes. You are sir at your silliest best. You have probably not heard of the risk- restriction trade of. You have to decide where to draw the line. Simply bringing in restrictions to ward of 100% of the risks .... is not risk management. It is not management at all. It is just a matching game which school kids enjoy playing.

the write off debate

write off or balance sheet cleaning ?

an old post in facebook . reproduced here as the issue is still relevant and live.

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i tried for an open debate on write off versus balance sheet cleaning. as usual no takers. not even one entry. i am convinced that face book is no place for serious discussions. for the 7th or 8th time
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here is my view again. the debate post is reproduced in the end.

1. loan waiver.
this is the ultimate. the loan is written off. the borrower is duly informed. no more recovery steps. the adjustment need not always be from accumulated profit or net worth. govt can also foot the bill.

2. write off.
the loan liability is set off in bank's books by adjusting provision.
which is nothing but accumulated profit or portion of net worth renamed for this purpose. borrower is not absolved and hence not informed. recovery steps continue. whatever is recovered goes directly to the profit of the bank. not even routed thru the borrowal account. ( this however needs to be confirmed. i am not that sure. ). loan liability will appear in credit rating sites like cibil as the adjustment is done in bank's books only.

3. balance sheet cleaning.
frankly i don't know if it is any different from write off as above.
i am sure the confusion will be maintained at any cost. as this probably is the easiest tool to mislead public on huge bad loans and their imminent write off.


i repeat my earlier suggestion. balance sheet of banks should compulsorily declare these write offs  (  in the form of notes as they are off balance sheet items ) and carry it forward to the next balance sheet to reflect the accumulated position.

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my earlier post
calling for debate
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This write off issue is getting into muddy waters . even my close friends , experts themselves , say technical adjustment or cleaning the balance sheet is different. Let's start a discussion. 1. Define loan waiver ,write off and cleaning of balance sheet . 2. Establish the linkage if any and determine the chronological order , that is , what comes first and what follows 3. Discuss the impact of each on the bank. 4. Discuss the impact of each on the borrower .

let's debate.

 Before signing off I put the following suggestion too for debate. Balance sheet of banks should compulsorily have a note specifying the details of loans waived, written off and cleaned in the last 5 years.