House magazine for the associates of Gopast. This is the seventeeth quarterly issue. Inscriptions made on stone seldom fade, this is the core of the tag line of this magazine. Truth Stays Forever. This magazine will be of interest for people engaged in the financial services industry

1.
R.GOPINATH
gopinathr@go-past.com
INSCRIPTIONS 17
TRUTH NEVER FADES

2. HIGH LIGHTS
SCULPTOR INSCRIBES: MIND
MANAGEMENT IN AUDIO VISUAL
FORMAT BY CLICKING THE LINK
GURUS SPEAK: NET WORTH
METHOD TO ESTIMATE LIFE
INSURANCE COVER, FAMILY
SOLVENCY RATIO AND WANE
PERIOD CALCULATION
CATERPILLAR SPACE: MR THIRULOK
KUMAR
GALLERY

3.
MIND
MANAGEMENT
R. GOPINATH
gopinathr@go-past.com
SCULPTOR INSCRIBES

4. https://www.dropbox.com/s/
5qcfs1vxykca1e7/
Sculptor%20inscribes%20Apr
2017.mp4?dl=0
PLEASE CLICK THE LINK BELOW AND ENJOY THIS ARTICLE IN AN AUDIOVISUAL FORMAT.
THE MOVIE FILE RUNS FOR 36 MINUTES.
THE SLIDES USED IN THE MOVIE ARE GIVEN IN THE NEXT TWO PAGES JUST FORYOUR
REFERENCE

8.
GURUS SPEAK

9. WEALTH THAT GROWS AND LASTS FOREVER
PRINCIPLE NO: 6
“FINANCIAL PYRAMID”
“PROTECTION- THE FOUNDATION”
continued from the previous issue gopinathr@go-past.com
Leaders motivate and support their team to better the best that
they can possibly reach.
This is what we expect from any leader, be it a prime minister, chief minister, CEO of
a company or the captain of a team. Primarily two 1) to motivate and 2) to support.
The same is true of a family head also.As a leader of the family, he/she is expected to
motivate his team and also to support them.
Leaders provide all the resources that it takes their teams to
realise their ambitions.
Net Worth analysis will show how much prepared a person or how effectively he
can perform the role of a leader of his family.
We are on the topic of Financial pyramid.The first stage in Fin pyramid is protection.
Protection means protecting the earning capacity of the person. Since earning money
by using one’s body, mind and time is the major source of income for many of the
humans, we need to protect ourselves from the risks that can reduce or stop the
earning capacity by affecting any one of these three resources. So we identified that
we need adequate Life insurance, critical illness insurance and disability insurance to
fill up this stage of the pyramid.Then the question arises what is “adequate”?
We have seen working methods to estimate capital protection, Capital need analysis,
Human life value to decide on the insurance cover that a person will require.Yet
another useful method is “Networth analysis”.As the name indicates it is arrived by
drawing a balance sheet and finding the difference between the assets and the
liabilities.

10. We will recapitulate what we had seen in the last issue:
We saw 5 Elements of Finance,Then my P&L Account:
Then the Balance sheet:
So we understood that the only way in which we can balance this balance sheet is by
buying a life insurance cover of `1,35,00,000
LIABILITIES ₹L ASSETS ₹L type
EDUCATION 50 RETIREMENT FUND 40 i
MARRIAGE 50 EQUITIES 70 i
SETTLING DOWN 100 PROPERTY 50 pa
EMERGENCY 10 SUNDRY ASSETS 20 pa
LOANS 25 DEBT INSTRUMENTS 15 i
SPOUSE PENSION 100 CASH/BANK 5 c
TOTAL 335 200
NET WORTH -135
PROFIT & LOSS A/C ₹
ANNUAL SALARY + DISTRIBUTED PROFITS 120L
ANNUAL EXPENSES AND TAXES 96L
NET PROFITS 24L

11. As we look into the classification of assets PA- Personal assets, I - Investment assets
and C- Cash and equivalent assets.
Now let us look at some ratios:
First one is the Family solvency ratio:
As much as companies regularly study their solvency ratio and always endeavour to
maintain high levels, families also need to study their solvency ratio and try to
maintain 100% + .
Companies many times have multiple backings. For example the
hundreds of thousands of shareholders, sister concerns and
associate companies. In case a company is undergoing a bad patch,
all these interested parties are likely to help save the company, for
they have interest in this company and also they have the financial
capacity to help.
But look at a family, do they enjoy so much of backing?
Unfortunately the answer is “NO”. Even though the families may
be having patrons, it is still unlikely that they have the financial
capacity to pull out a family out off the difficulty. Even if they
volunteer to, the families still might find it embarrassing to accept
such help.
How to we estimate the family solvency ratio?
In the balance sheet of the family:
Sum total of the investment assets, cash and the Net Profit of the previous year as a
ratio to their liabilities is FSR.
Look at the above example:
`L
Retirement fund 40
Equtities 70
Debt instruments 15
Cash 5
Net profits 24
Sum total of these 154

12. Whereas the liability is 335 so the FSR for this family will be 154/335= 46% This is
a very low level of solvency.That indicates that if the person happens to die now, the
family’s assets can only fulfil 46% of their liabilities.
There is a question about net profits as to why net profits has been added here
while arriving at the ratio? It is only added because we are considering that we may
not be doing this calculation exactly at the end of a financial year. It is likely that this
year also the person might generate that much net profits, and that amount might be
available to buy assets now.
Now another important criteria to be considered here is that if this person does
not cover the balance liabilities with a life insurance cover, then how long should the
family expect him to keep earning till the liabilities can be taken care of? That is
called as “Wane period”
This is estimated by the negative of net worth/ Net profits *365
In this case under discussion it could be like this (185/24)*365 = 2798 days.
54%
46%
Solvency Liabiliites not secured

13. This is too long a period for the family to hope for recovery.Wane period refers to
the waxing and the waning period of the moon.
The solution to the whole predicament is Life insurance cover of `1,35,00,000
Leaders motivate and support their team to better the best that
they can possibly reach.
This is what we expect from any leader, be it a prime minister, chief minister, CEO of
a company or the captain of a team. Primarily two 1) to motivate and 2) to support.
The same is true of a family head also.As a leader of the family, he/she is expected to
motivate his team and also to support them.
Leaders provide all the resources that it takes their teams to
realise their ambitions.
Net Worth analysis will show how much prepared a person or how effectively he
can perform the role of a leader of his family.

14. LIFE INSURANCE Vs DEMONETIZATION
BY
MR TRILOK KUMAR
lic.advisor2020@gmail.com
Investors can invest in two types of assets, Physical assets and Financial assets. Physical assets
can be Tangible or seen, felt, held or collected like House,Gold,Car etc... Physical assets always
carry an Emotional Attachments. Where as Financial assets are Indirect form of Investments
like Savings accounts, Fixed deposits, Life Insurance, Bills & Bonds, Stock market, SIP, Post
office saving schemes etc... Financial assets are always Zero Percentage Maintenance Cost.
There is No Best Investment Portfolio im Market it is in the MIX of both Financial assets and
Physical assets.
In Last 31 years Indian Market Scenario from 1985-2016, there is a Shift between Physical
assets and Financial assets. Physical asset like 2BHK Flat cost 5 lakhs in 1985 had boomed to 1
crore in 2016, the price reached to Peak Purchasing Power which naturally reaches the
Saturation Level in Real Estate Market. Gold Value of 10 grams in 1985 was rs 3500 but in
2016 is raised to rs 30000. Gross Domestic Product (GDP) was 1.4 in 1985 but it is Grown to 7.6
in 2016. The number of Tax Payers was 40 lakhs people in 1985, but in 2016 No of Tax Payers is
5 crores. Total no of Registered Vehicles in 1985 was two crores, Where as it is grown to 16
crores Registered Vehicles in 2016 Pan India. Total number of Telephone Connectivity among
100 people was only 2.3, but in 2016 it has spread to 80 people among 100 in India. Dollar Rate
was INR 24 in 1985, but in 2016 it has fluctuated to INR 68 . Fixed Deposit for one year Rate
was 13% in 1985, where as RBI has reduced the Rate to 5.75% in 2016 Because of
Demonetization.
Foreign Institutional Investors (FII) Investments was ZERO in 1985, but it is Penetrated in 2016
to 160.2 Billion USD in India. Stock Market Sensex was 1600 Points in 1985,Where as in 2016 it
is grown to 27500 Points. So there is a Shift in Indian Market like (1985-2000) Financial Market,
(2000-2015) Physical Market, (2015-2030)Dynamic Financial Market in India.
Demonitization helps people to buy more Financial Assets according to their financial appetite,
In that Life Insurance is the one &only Exclusive Leverage Financial Asset which Secures a
Families Present,Past and Future in a Risk Free Manner. LIFE INSURANCE “if death is
exempted in our life then Life Insurance is null & void contract”
CATERPILLAR SPACE

16.
GALLERY

17. INSCRIPTIONS team is proud to congratulate Master T.Abishek, son of
Mr Trilok kumar agent LIC of India Bangalore division 2 for winning the
first prize for the Bengaluru district in the Kannada language competition
conducted for all districts for the whole of the state of Karnataka

18.
GRUHAPRAVESAM OF BHARATAM
THE NEW OFFICE OF GOPAST

19.
CALIBRATION EXERCISE BY
LEADING LIGHTS
PARTICIPANTS AT CHENNAI

20.
ROOTS FOR
GREATNESS
AT THANE

21. LEADING LIGHTS
COURSE FOR CLIA’s
AT MUMBAI