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Opinion

In business of making money, what looks like loss is actually gain

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Business money loss gain

Mir Saqib

mirsaqibali@gmail.com

Business is primarily money. We are in business for making money that is precisely the sole reason or motive for doing business. Over the past century, the way of making money through a business has changed. It has made the orthodox accounting methodology as primitive and obsolete. Some businesses give instant money and some make a platform for the next stage which will lead to money. In some cases, cash flow is considered a profit.

There are a lot of facts and figures showing the 21st-century business model as dynamic and unpredictable to normal accounting systems and business logic. Most of fortune 100 companies in the 21st century have made asset appreciation or valuation of the company as major sources of making money irrespective of whether the business gives profits or not.

Amazon doesn’t make profits, but has ample cash flow and reserves to make the company run for centuries, and is regarded as a most valuable company of our times in the world. Again, remember they don’t make profits according to accounting methodology. Apple makes most of the money by conversion of goods and service and branding them as high-end products. Making huge money from is reflected and acknowledged by accounting methodologies. Coca Cola India didn’t show any profit till the end of the last decade but would spend a fortune of money on marketing and advertising. If the marketing budget would have not been there, the company would have surely been in profits but they intentionally did so and kept a huge marketing budget. If not spending so much for marketing, they could have shown profits which normal accounting would have suggesting but they didn’t prefer that.

Now, Coca Cola is the most valuable brand in India and is in making huge profits as on date.

All of the new-age companies are making huge money but all in different ways. As we said earlier we are in business for making money and these companies make it no matter it does sound valid and sane to accounting methodology hardly matters.

In the new way of looking at businesses, “what may look as the loss may actually be a gain’.

The horizon of business has changed, earlier trading was part of business, now trading is considered as a vague term, and has been sub categorised in infinite subsets. A few decades earlier, buying a product at Rs10 and selling at Rs11 was considered as a good business practice but nowadays buying at Rs 10 and selling at Rs 9 isn’t considered bad practice either. Imagine two competitors B1 and B2 selling same product, both having cost to the product at Rs 10 while B1 is selling at Rs11 and B2 selling at Rs 9. Over the period, suppose B1 makes a profit of Rs1000 and B2 books loss of Rs 2000 (B2 is selling at a low price so sales will be high compared to B1). As B1 will try to compete with a close competitor in terms of sale and will drop his prices for next period to Rs 10.5 and as B2 is already selling lower than the rival competitor, will increase to Rs 9.5 and this will lead to B1 making a profit of Rs1250 and B2 loss of Rs1500. Over the next period as competition goes higher and it’s difficult for B1 to remain in business so furthers drop price to Rs 10 and B2 also increasing price to Rs 10.

So from here, we shift in the balance sheet of both the business. B1 making a shift from profit to no profit and loss while B2 goes from loss to break even. B2 managing to cut losses and going to profit-making the company to go on while B1 who is technically in losses and has no option but to shut down before it starts bleeding the profits made for years.

So B1 made a total profit of 2250 while B2 stands with loss of 3500.

As now B1 is already out of business with anticipation of loss for next period, B2 raises the price up to Rs 11. Now B2 is a major player and taking sales of B1 and makes the profit of 3500 compensating the losses incurred before. Now with B2 market leader and revenues doubled from the last period (revenues will include B1 share also).

Now B2 has an open field, even outrightly selling the business will surely fetch many more than Rs 2250 (as last periods profits were 3500) which B1 made during the full business period. One selling at below the cost of production looked so naive and stupid. But, in reality in present-day competitive marketing, it is not really so. The way of doing business has changed and it has changed for good.

In recent times, most of the business is about acquisition and valuation. In the old business communities like ours we have so much emotionally invested in business we tend to forget we are primarily in business for making money. In modern economies, lending from a bank for business has taken a back seat and investment from various private entities has found the way. The main reason for that is fewer legalities and ease to raises good funds from private or personal investors.

The private investors have huge potential in the valley, providing about billions of rupees in form of fixed deposits are sitting in banks with return merely at 4%.

Investor and businessperson should be made aware that investing in any business is purely for making money, emotional side to it, should be realised, won’t be of any importance to business nor to the promoter or as we used to call him, owner. That’s the reason in modern economies, the one who starts an enterprise is called promoter of the business and not an owner of the business. The term owner has become very feudal.

Both investors and promoters need to educated about what the business is meant to do. And long term and short-term investors can be used to raise funds for the growth of the business without a huge cost to the business as would have the same investment raised from a bank.

Expats and non-residents should be made aware of business in the valley and effectively made aware of investment option available.

There is huge scope for venture funds which will facilitate the business and investors.

Cutting to chase, the business is eventually about making money. But sometimes the entity you sell is a product, sometimes the promoter is a product and sometimes the business itself is the product. Whatever it should eventually lead to making money. As we are in the business of making money.

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Opinion

Promoting diversity, equity and inclusiveness in veterinary profession

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World Veterinary Day

Sanober Rasool

World Veterinary Day

For veterinary professionals, it is crucial to provide socially conscious learning and working environments as well as to eliminate obstacles to fairness and inclusion. Veterinarians operate in a world that is becoming more diverse and swear an oath to uphold public health. Students, team members, and veterinarians must have the knowledge and abilities necessary to meet every customer’s requirements and foster hospitable workplaces for every employee. Although diversity, equality, and inclusivity (DEI) and mental well-being (MWB) are still crucial for the veterinary profession, there is little information available on how professional bodies throughout the world approach these problems. The veterinary profession is a diverse field that offers healthcare and other services to a variety of different animal species. However, despite working with animals that come from diverse backgrounds, the profession itself has not always been inclusive of diversity in its workforce. There is a growing need for the profession to promote diversity, equity, and inclusiveness to better serve the needs of all animals and their owners. This essay will examine some of the ways in which the veterinary profession can promote diversity, equity, and inclusiveness.

One important step toward promoting diversity in the veterinary profession is to increase awareness of the opportunities available to individuals from different backgrounds. This can be achieved by reaching out to underrepresented groups and promoting the benefits of a career in veterinary medicine. Admissions committees for veterinary schools should take into account the unique challenges faced by underrepresented minorities when evaluating applications. This could include adjusting the emphasis given to academic achievements in order to account for the additional obstacles that students from disadvantaged backgrounds may have had to overcome. Making a commitment to diversity and inclusion necessitates uncomfortable levels of participation. Breaking out of our comfort zones might be one of the most difficult obstacles to achieving change in our environments. Discover activities that can help you get out of your comfort zone and into a daring space, allowing you to boost diversity and inclusion programmes in your organisations.

Professional groups and associations can also provide support by offering networking opportunities and resources that help individuals overcome barriers to success. They can also offer resources such as job listings, continuing education opportunities, and access to research and other publications that can help individuals stay up-to-date on the latest developments in the field. Moreover, in promoting diversity, the veterinary profession must also strive for equity in its workforce. This means ensuring that everyone has access to the same opportunities regardless of their background.

World Veterinary Day

Veterinarians should be evaluated on their merits rather than their race, gender, or ethnicity. This principle is central to the idea of meritocracy, which holds that individuals should be rewarded and promoted based on their abilities, achievements, and potential. Policies should be put in place to ensure that there is no discrimination in the selection process for veterinary specialists or in any other job opportunities.

Some possible policies that could be implemented to prevent discrimination in the veterinary profession include:

  1. Developing a fair and transparent selection process
  2. Providing equal opportunities: employers should provide equal opportunities for all applicants, regardless of their race, gender, religion, age, or other personal characteristics.
  3. Educating employees: Employers should educate their employees about discrimination and the importance of non-discrimination in the workplace.
  4. Establishing a complaints mechanism: Employees should establish a mechanism for employees to report incidents of discrimination and take appropriate action to address such incidents.
  5. Regularly reviewing policies: Employers should review their policies and procedures regularly to ensure that they comply with anti-discrimination laws and best practices.

By implementing these policies, the veterinary profession can become more inclusive, diverse, and welcoming to all individuals who want to pursue a career in this field.

Finally, inclusiveness in the veterinary profession means creating an environment where everyone feels valued and respected. Veterinary organisations should continue to raise awareness and reduce stigma related with mental health conversations at the national and regional levels through webinars, specific training, and broad ongoing education.

World Veterinary Day. In conclusion, promoting diversity, equity, and inclusiveness in the veterinary profession is essential not only for the well-being of veterinary professionals but also for the animals and their owners. Veterinary organizations, schools, and individual professionals have a responsibility to create a welcoming and inclusive environment that supports and encourages diversity, equity, and inclusiveness. By doing so, the veterinary profession can improve its service to a diverse clientele, foster a culture of inclusion, and better serve the needs of all animals and their owners. It is important to continue the conversation around diversity, equity inclusiveness and mental well-being and take actionable steps towards creating a more inclusive and equitable profession for all.

Veterinarians are essential members of society because of their compassion and caring. They are tasked with treating and caring for sick or injured animals until they are whole and content. So take a chance on World Veterinary Day and give our neighbourhood vets a thank you for all they do for the community.

Sanober Rasool is a PhD Scholar at the SKUAST-K’s Division of Veterinary and Animal Husbandry Extension

 

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Economy

Global eCommerce boom and local traders of Kashmir

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Global eCommerce boom Kashmir

A Structural Shift in the Market Preferences

Dhaar Mehak M
Tabeen J Wali

The global eCommerce market was expected to be worth a total of $5.7 trillion by the end of 2022. That figure is estimated to grow over the next few years; exhibiting the fact that borderless eCommerce is becoming a profitable option for online retailers. It is giving a market space to one and all with a potential or product to sell. Only two years ago, 17.8% of sales globally were made from online purchases. That number is again expected to reach 20.8% by the end of 2023; a 2 percentage point increase in eCommerce market share. This growth is expected to continue, reaching 23% by 2025, translating to an increase of 5.2 percentage points in just five years.

Economic projections and forecasts predict the global retail sales growth to rise even further and take up more retail market share. According to research completed by eMarketer and Statista, online retail sales will reach $6.51 trillion by 2023, with eCommerce websites taking up 22.3% of total retail sales. Although retail has had it tough since 2020, every national market covered by eMarketer saw double-digit eCommerce growth. The trend continues globally: Latin America (including Peru, Brazil, Argentina, Chile, Colombia, and Mexico) saw $104 billion in eCommerce sales in 2022, up 22.4% from $85 billion in 2021. The UK is forecasted to continuously increase by $85.7 billion (+42.88%) within the next years.

China continues to lead the global eCommerce market, accounting for 46.3% of all retail eCommerce sales worldwide, with total online sales just over the $2.8 trillion mark in 2022. It also has the world’s most digital buyers, 842.1 million, representing 39.4% of the global total. The US eCommerce market is forecasted to reach more than $904.9 billion in 2022, a little over a third of China’s. After China and the US, the third-largest eCommerce market is the United Kingdom, taking up 4.8% of the retail eCommerce sales share. The UK is followed by Japan (3%) and South Korea (2.5%). The top five eCommerce markets haven’t changed since 2018. Trends from eMarketer suggest that these markets will stay in the top five until 2025.

While the whole world has been witnessing the structural transformation and shift in terms of market transformations from retailing to online shopping, the Indian economy has been a part of the process. In light of the same, the Jammu and Kashmir economy has had an equal and equally growing participation in the same. The advent of the internet and the arrival of eCommerce technology in the lives of average Kashmiris have changed the shopping preferences and experiences of the locals. People no longer have to battle issues like vehicular traffic on the roads or wait in queues for long hours. Accredited to the growth of eCommerce technology, locals have been empowered to shop anywhere-anytime just at the click of a button.

However, in the recent past, there was no (or very limited) concept of eCommerce in Kashmir. Smartphone availability to the general public was rare. The masses were barely aware about the internet facilities and global communication channels. There was no idea of online shopping, online transactions, etc. With time and the availability of the internet along with the growing mobile phone penetration, eCommerce made its presence felt in the valley. However, due to slower internet connection issues like 2G and lack of awareness, people initially had apprehensions and thus were afraid of buying things online.

Global eCommerce boom Kashmir

Tracing the roots and history of online shopping awareness in J&K, it dates back to the year 2008 when the mobile internet was making its headway into the valley. People were gaining affordable and available access to wireless internet. It was around the same time that after bearing a lot of hardships with sorting out the supply chains Flipkart became operational and function in the region. the initial years were tough and hard but the company stood steadfast. It took some time for Flipkart to cut through lots of hurdles alone and get to success. Being the only player in the online market in the region for quite some time it was a big deal to keep surviving and floating. But the outcomes were a success.

Steadily as people gain access to quality internet services and advanced smartphone technology the word spread. It was observed that doorstep delivery was actually a reality. At the same time, the quality of the delivery matched the promises of the website. The trust factor got built. Witnessing optimism within the J&K market, other companies like Amazon, SnapDeal, and other local online stores, etc., started jumping in to tap into the growing eCommerce market. The consumers got the opportunity of choosing from a wide range of products. Not only that, discounts and sales from time to time offer big benefits to consumers.

All these factors have been contributing towards a structural market shift. People from across J&K have been moving from in-person retail shopping to online shopping. While the consumers in the region have surely benefitted both in terms of utility/satisfaction and profit maximization, the retailers have been losing.

The J&K economy is predominantly characterized as a consumer economy. The characteristics of being a producer and self-sufficient economy have been limited and rather absent for a long time. It is the retailer of J&K, who has been at the losing end on account of the growth of the online markets. Retailing has been one of the most common business ventures of people across the region of J&K. Setting up of the shops and selling various items has been a known venture. People for generations have been relying on this activity. Lately, the structural change is challenging this segment of J&K businessmen and the immediate solution visible is evolution. These businessmen, particularly retailers, need to adjust to the changing market and make themselves competitive enough to compete with global online sellers. The only other option is to let the business supper, deteriorate and shut down.

The authors are affiliated with the Department of Economics, Islamic University of Science and Technology & can be reached at dhaarmehak@gmail.com and tabeen45@gmail.com

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Opinion

The Golden Flames Of Autumn Chinars 

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The Golden Flames Of Autumn Chinars 

 Syed Aamir Sharief Qadri

The Golden Flames Of Autumn Chinars 

When God created this planet he embellished it with myriad colours so that human beings can see, feel and embrace them in different seasons. In addition to cool and warm colours usually, it is the green and white that represent seasons in Kashmir. The changing season brings new colours and in autumn it is orange, yellow, brown and red shades that dominate the scene.

How beautifully Albert Camus described the loveliness of the autumn season in a single line when he said ‘Autumn is a second spring when every leaf is a flower’. Contrary to this thought, many say all beauty ends at the beginning of this season. They believe this season snatches life from green plants and trees to look everything dull.

I don’t know what autumn looks like in other places of the world but in Kashmir, it is dazzling owing to a presence of a good number of chinar trees. The glory of this tree is something unique. In its praise, a famous couplet by Allama Iqbal is very popular.

Jis khaak ke zameer main ho aatish-e-chinar

Mumkin nahi ki sard ho wo khaak-e-arjumand

(The dust that carries in its conscience the fire of chinar, It is impossible for the celestial dust to cool down)

It is quite amazing to see the dance of autumn leaves that appear vibrant while falling from tall trees. Just like some people are happy to get drenched in the rain during monsoons similarly a few like to dance with the falling of leaves in the autumn season. Indra Gandhi the third PM of India often used to come to Kashmir in the autumn season to see the picturesque fall of chinar leaves. 

Platanus orientalis, The plane tree called Chinar in Urdu and Boen in Kashmiri.  The long-lived deciduous tree is said to have originated in the Balkan area of the Mediterranean region. It grows well in temperate latitudes and is widely spread throughout Eurasia. This tree outside Kashmir is revered by Greek and Persian culture. Whether chinar has an indigenous origin or was introduced by foreigners in Kashmir is still debated in the academic circle. Once cultivated this tree flourished in the supportive environment of Kashmir. 

The mystic saints Sheikh Nuruddin (RA) and Lal Ded have mentioned the name of this tree in their sacred works. The chinar tree planted by Sufi saint Syed Qasim Shah Hamdani in 1374 AD at Budgam was believed by MS Wadoo author of the book “The Trees of Our Heritage” to be the oldest in J&K. But the ongoing census and geotagging of chinar trees show some chinar trees to be 1000 years old in central Kashmir.

It should be noted that we get enough references about the presence of chinar trees in the valley during the sultanate period of Kashmir. But we also know that the Mughals promoted chinar on a large scale. They planted a majestic chinar tree in the gardens of Kashmir and gave it the status of a royal tree which remained intact to this day. 

The world-famous Mughal gardens are known for their majestic chinar trees. The three well-known gardens Nishat, Shalimar and Naseem Bagh in the heartland of Kashmir are full of grand chinars. Over 1200 chinar trees were planted alone in Naseem Bagh by the Mughals. Outside the city, Mughals planted chinars in the gardens of Verinag, Achwal, Dara Shikoh Bagh, and Padshahi Bagh in the Anantnag district. 

It would be quite interesting to call Srinagar the city of chinars. Besides Mughal gardens where chinars are planted in large numbers, one can see them everywhere in the city, on the banks of Jhelum, along the residency road and in the middle of Dal Lake. 

The entire region of Kashmir is dotted by shady chinar trees be it cities or hillsides. The kings mostly planted these trees in important locations. It was the common people especially Sufi saints who took it to the villages of rural Kashmir. 

A perfect example of beauty, this heritage tree is known for its gigantic size. Chinar is perhaps the only tree in the valley that can live for centuries. That is why the saying “Boen chi Gawah” which means chinar witness everything is very famous. This tree is a witness to history and holds a special place in the culture of this land. Under the shadows of this tree, many dynasties flourished. 

The beautiful design of chinar leaf is well acclaimed in the Kashmiri handicraft and wood industries. Every part of the chinar tree is valuable. The timber is used for making furniture, the bark is used as medicine, and from twigs and roots fabric die is made. Its leaves are used to fuel the fire pot locally known as Kangri. But above all the majestic chinar is known for its aesthetic beauty. The experience of walking on the red carpet lying under the chinar trees is pretty special. The sounds produced by the crunching of leaves under one’s feet are touching. With the onset of autumn, people throng to the valley in great numbers to feel the life-giving warmth of chinar trees. 

Boen-e-Shuhul, The cool shades of this tree are quite popular. In summer, people often take shelter under its strong and spreading boughs. Many people wish to be buried under the shades of this tree. Perhaps Sheikh Abdullah the author of Aatish-e-Chinar would have wished the same. Luckily he was buried in the premises of the historic Nasem Bagh on the shores of Dal lake in Srinagar.  

Despite being a state tree, protected by the legislation, the number of chinar trees continues to decrease. In the 1970s as per the official count, there were 42000 Chinar trees in Kashmir and that number has been reduced to a mere 5000 now. 

For some years now the government seems serious enough to promote heritage tourism by distributing saplings to increase the population of chinars in J&K. We should also plant chinar trees in abundance on chinar day which is celebrated on March 15 every year.

 To mark India’s 75th year of independence this year in mid august the govt announced to establish at Srinagar the largest chinar park in the valley by the name of Chinar-Zaar. The autumn of Kashmir can be made even more beautiful if the government take initiative to establish new chinar gardens in every part of J&K. 

A poet and writer, the author has done his MA in History from the University of Kashmir and MPhil from Punjabi University, Patiala. Presently, he is a freelance columnist. You can contact him at aamirsharief45@gmail.com

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