Tuesday, 28 March 2017


Credit sale of goods and services gives birth to the term factoring. Factoring can be defined as a method in which the debtor (trade debt) is sold to a factoring company at a discount on a continuing basis. In other words, we can say factoring is a process in which a firm (namely the client) receives the short-term finance whenever required from financial institutions (namely the factor) to manage their short term needs in a better position. Traditionally, this kind of service was very common in western countries but now, it is available all over the world. Initially when factoring service came into existence then it was only bank, the only financial institution which act as a factor and helps in collecting its client debt. But, in today’s scenario the picture of a factor has been changed. In today’s date it is considered as much broader concept. Today, any financial institution can act as a factor, he can administer the sales ledger of the client, provide credit control, help in collection of debt, purchases the client’s trade debt including accounts receivable either with or without recourse insurance against non-payment of debts. Thus, we can say that factoring is a combination of providing finance and management services to its client (firm). To put it simple, factor provides its management skills and finance to the firm for a certain fee or commission that varies with interest rates in force in the money market. Factoring is a special activity in which the firm can convert its credit sale of goods and services into cash by selling them to a factoring organization. Factoring service is termed as boom to manufacturer to a dealer of goods and services. With the help of factoring service, the firm can concentrate on the manufacturing goods, expansion of business, serving more customers etc and need not concern itself with non –profitable control and sales accounting matter. Factoring services can be drawn up normally for an initial period of twelve months, continuing thereafter indefinitely until notice (of about six months) is given. Factoring reduces debt worries and improves the cash flow. Factoring is an alternative source of funding which creates no liabilities. Factoring means financial freedom for your business. Factoring is not just about fast cash but it also helps in growth of the business.

The main types of factoring are:

  Ø  Recourse factoring- In recourse factoring, the factoring company assumes the risk of late payment but the seller retains the credit risk. Upon expiration of the grace period and if a debtor doesn’t pay , the supplier makes payment to the factoring company. The sellers risk is reduced because each customer undergoes a professional verification before hand of its ability to pay. If the factor has given some advance to the supplier then the suppler has to return back the amount received to the factor along with the agreed fees or commission. This type of factoring is also known as pure factoring.

  Ø  Non recourse factoring-In non-recourse factoring the firm sells the receivables to the factor. The factor makes the payment to the firm immediately or after receiving from the debtor. But in such type of factoring risk is born by the factor. If, the debtor fails to pay the amount of receivable or there is a delay in the payment of receivable then this loss is to be borne by the factor. In other words firm does not have any risk of loss due to delay or default of receivable, all the risk is taken by the factor. Therefore, in order to minimize the risk the factor carefully examines the debtor and his creditworthiness. This type of factoring is also known as full factoring.

Dr. Himani Gupta
Associate Professor
Dept. of Management Studies

Monday, 20 March 2017

Reverse Mortgage and Financial Independence of Senior Citizen

The financial services are undergoing transformation in current scenario and there is an upsurge of a whole new set of services one of them being Reverse Mortgage. The service was introduced by the Union Government in 2007 and has been aiming to give quality life to senior citizens. The service not only provides regular stream of income to old age people but also gives them an opportunity to live with dignity without being dependent on their near and dear ones.

This service is primarily the opposite of a traditional home loan. It gives an opportunity to a senior citizen to have regular income from the bank against mortgage of his house property. The borrower receives a fixed income from the mortgage and continues to stay in the house till his death.

The phenomenon initiates when the home even if of illiquid nature pledged by a senior citizen in exchange of regular payment to a bank. The bank evaluates the monetary value of the property by considering the demand for the property, prevailing property price and current condition of the house. The bank then provides a loan amount to the borrower after taking into account a margin for interest cost and price fluctuations over fixed loan tenure. With the payment of every installment of reverse EMI the individuals interest in loan decreases. The settlement of the loan happens on the demise of the borrower and borrower’s spouse. To settle the loan the bank first provides an option to next of kin to repay the loan along with accumulated interest. In case of disinterest or incapability of the individual the bank recovers its due from sale proceeds of the property. The excess amount left after the settlement of the loan with accrued interest and expenses, is passed on to the legal heirs. In case of sale, if sale proceeds are lower than the accrued principal and interest amount, the bank bears the loss of the amount that it could not recover. Such a loss generally arises where the bank makes an incorrect estimation of property valuation at the time of providing the mortgage as compared to the existing real estate market prices. The reverse mortgage interest rates could be fixed or floating and is determined by benchmark set by prevailing interest rates. The amount received through reverse mortgage does not attract taxes as it is considered as loan. Although a borrower is liable to capital gain tax at the time of sale of the mortgaged property by the bank for the purpose of recovering the loan.

Although very promising but the concept has certain issues within that need to be looked into, like the documentation process is lengthy and brings inconvenience to the applicant, besides the monthly payments are in annuity and are not subject to any increase even in case of emergencies. Despite of all its shortcomings, the reverse mortgage is ideal to supplement a senior citizen’s income in the post retirement age.

Dr. Deergha Sharma
Assistant Professor
Dept. of Management Studies

Monday, 6 March 2017

Travails of a Woman Documentation person

Personal is Political
-A well known feminist slogan

Well behaved women rarely makes history
-Eleanor Roosevelt to Marlyn Monroe

It was Mary Wollstonecraft’s first defiant moment in 1792 with the publication of ‘Vindication of Rights of Woman’ that we came across a documented history of Woman’s writing in a journal writing format, and which looked upon women as a political subject. As some of the students of women studies must be reading works of Virginia Woolf to theorists like Adrienne Rich, Judith Butler, Uma Chakravarti, Urvashi Butalia etc. While the writing of these women varied from personal accounts in journal formats to work of fictions, they all found space via libraries, book shops etc. to enter popular cultural imagination. Although books and articles on the history of women have appeared throughout the ages, the practice of creating special collections and archives for women is a relatively recent phenomenon, not quite a century old. It is only in the last few years that historians have become aware that there was a pattern to the establishment of women’s archives in India. This is where I would like to emphasize on the need for archiving and having women archivists. While, we might do formal style of academic writing and documentation but need for archiving and documentation remains quintessential because if we don’t archive now the future generations would not have enough material to look upon to understand their history and source the struggles of the previous generations. I also see that there is a need to broaden and expand the material that is archived because sometimes so much material circulate in a public domain that they don’t end up in an archive.

 I don’t know how many of you have ever been to an archive for research purposes but if you visit Delhi and you end up going to National Archives or for that matter Teen Murti Museum, you would realize that the books or audiovisual records that land up in those shelves are actually the staple of what many mainstream historians or students might deem as something of historical importance or official document of historical value. The documents at times available in these archives at times are so exclusive that they largely forego experiences of women as well as marginalized sections of the society. So, these stories of the margins are somehow never find space in official, public, mainstream, institutional space in which memories is being kept and at times hand woven for the coming generations.

So, one can see that the way we have learned to look at both politics and history is too much with the lens of public space which can be extremely exclusionary. So, how does one feature in history or make sure that one’s heritage find space in history? Even if you look at newspapers, you would notice that the newspaper would be giving you the main headlines which inturn is the index or highlight of that particular day. So, the important stories of history might feature in page 10 or buried in a page between advertisements. So, how does one tells an oppositional or alternative history? Women’s movement in India is one such oppositional or alternative movement in history, where new histories are forged. But where do we find these oppositional or alternative writing, they are usually confined to specific campaigns or fact finding reports, and at times these reports also usually get lost or buried within the archives. Even during various movements one may see generation of various pamphlets, posters distributed to the people, which eventually disappears after event is over. This why there was a constant need for archiving and documenting to create and recreate an alternative narrative.

As an archivist and documentation management person I realised the radical potential of memories of our past but also the need to preserve them for posterity, this made me start my tryst with the camera. If you are interested in photography you would realize that the presence of camera changes your perspective of how you enter a particular situation at the time, it was similar in my case as well. In 2011, I had an opportunity to work as an intern in one of the most prestigious institutions called The Archives and Research Centre for Ethnomusicology of American Institute of Indian Studies, which had been in the field of archiving and documentation for more than 30 years now. The reason for joining such an institution worked in two fold manner firstly my need to learn the basic skills of documentation for long term preservation, and  further find a collective that would work in line of archives like SPARROW (Sound and Pictures Archives on Research on Women) which had come up with alternative measures to document women’s history not only through various women’s movement but also their day to day struggles within an hetero-patriarchal setup.

The archive that I talk about or imagine for the future are not only documenting the history of woman’s movement in India but also that comprise of works of woman filmmakers, writers, voices of dalit women which at times don’t get space within the mainstream. These archives would have women working to rewrite and to co-create history and would be fully managed by them.

Though during my days of being a student of Journalism and Mass Communication I was never interested in seeing how a camera worked, I realised its importance during my stint in ARCE and later documenting movements like anti-rape movement in Delhi, queer movement in Delhi along with student movement etc.

See, with some basic training anyone can be an archivist or documentation personal, there is not always a need for aesthetically designed videos but documentation that is legible enough and can be available for the future. The objective is to never back down by criticism about your work take it constructively, keep yourself abreast with technological innovations. Imagine if you were reporting in the 70s and 80s, you would have to visit the scene of action, interview some people get back and then churn out my story. This however has changed with coming of youtube, snapchat, ustream, livestream apps etc. the technological intervention allowed me to directly post videos on facebook, twitter, myspace to get people’s attention towards issues that was at times not covered by mainstream media.

It is through series of experiences such as these along with my training as an archivist as well as someone who work within the activist circles that I realized how important it is to voice one’s opinion and to make sure that voices of woman even within the activist circle doesn’t get suppressed. I realized that it was extremely hard for me as documentation person to be taken seriously at times people don’t inform you about ongoing protests, give you misleading information.  

I would emphasize on the fact that whenever you find yourself amidst a protest or incident of significant value do step out of your comfort zone. Don’t drive around, instead walk, meet people, talk to them, and ask questions, you may be surprised by the different version of the same story circulating amongst people.

Though there are women pioneers who start things, it is equally important for us in the newer generations to continue these legacies keep them alive. I wish that the different pioneering spirits that created space for us and you to be here today continue to remain alive through each of you. Let your light shine!

Ms. Priyam Ghosh
Assistant Professor
Dept. of Communication Studies

Social Media and Communication
WhatsApp! Follow me on Twitter! Check my status on Facebook page! These are the buzz words of today’s generation. In the age of Information and Communication Technologies whosoever is unaware of these terms is considered illiterate or outdated. Once obsessed with capital intensive mass media technologies, development planners as well as advertisers are finding new means and tools to reach out their tech savvy target audience. Educators are engrossed in new means to use the updated technology in their class rooms. In an age when there are one billion users inter connected through Facebook this is one of the most powerful participatory medium of communication. In this scenario whosoever is educated and is having means to use this simple technology can’t ignore it.

Media has become more interactive in virtual space and there is no sense of place while communicating with others in virtual world. Unlimited media access and interactivity is leading to less social mediated communication in real world. We are moving towards an age of ‘networked individualism’. More interactivity is leading to more divide between haves and have nots as owner of new media is having more sources of multimedia truths. Media technologies have made great impact on how we communicate personally and professionally.  Technological convergence has accelerated the speed of media technologies.  It is important that we understand the different new media technologies that are available today.  This is because our lives and our global economies have become dependent on them.
These contemporary technologies are reshaping and transforming social, cultural, political and economic concept of space and place. Media has always been considered as watchdog of society. New media is acting as “watchdog of watchdogs” in the sense when something controversial does not find space in traditional media, someone from the general public highlights on social media sites or micro blogs and mass media has to cover the issue. The buzz created on social media sites sets the agenda for traditional media.

As there is an economic transmission of information and culture, new media has become new mass culture and every other youth is using it because his friend is also using it. Today’s youth is spending more time on instant chatting rather than communicating to the family and friends sitting in real space. He is living in ‘Communities of choice’ rather than compulsive community in which he was born and brought up. Situation is devastating for him when someone is un-friended on social networking sites. The viewpoint of parents is ambivalent on the virtual reality as it has become a necessity for them but due to lack of parental control it is hard to figure out the dimensions of freedom provided by new media.

 It is disturbing to learn from the findings of a national survey of media conditions among American children aged two through eighteen years that “the average child spent six hours and thirty-two minutes per day exposed to media of all kinds, of which the time spent reading books and magazines— not counting school work—averaged about forty-five minutes”.

Although the new media technologies are more available than ever imagined, the digital divide that we are experiencing today will continue to widen in the next few years. This gap between haves and have nots will lead to disharmony and social disorder amongst communities, age groups and social classes.

(Disclaimer: Some of the content of this article is taken from author’s paper ‘Social Media and Changing Communication Patterns’ published in Global Media Journal, Jan- June, 2014)

Dr. Kiran Bala
Dept. of Communication Studies