Spectrum, the IGDC Newsletter

December, 2010

Banking and Finance Corner

Snippets
Are Gold Loans safe
Optimizing the usage of Credit
Cards From the Editor’s Desk
Pension Vs PPF Dear Members

Sports Lounge We are glad to present the December 2010 edition of

India & 2011 Asia Cup the CGI India Newsletter.
Football
Health Tip Please send your contributions, suggestions and
Nature Cure
Benefits of Tulsi feedback at India Newsletters
(Newsletter.Ban.India@Cgi.com)
Test Your IQ
Picturesque
We endeavor to bring you a quality newsletter that
Members Corner informs and entertains. To that effect, we invite you to
showcase your talents over and above the realm of
Members & Team Events
New Members software engineering. So, here's calling out to all the
Long Service Club writers, poets, photographers, artists, to send your
entries.

Sincere thanks to all the members for sharing their

feedback and contributions.

P.V.Venkataram
On behalf of
Team Spectrum

Spectrum, December 2010 Page 1

Banking & Finance Corner
Snippets

Axis Bank buys the Investment Banking arm of Enam Securities

According to a study India seems to have drained out around 20 lakhs crores
Rupees (US$416bn) out of the country as black money. This amounts to 40% of
India’s GDP. Most common process adopted being under invoicing exports, over
invoicing imports, miscellaneous remittances, courier service, physical delivery etc.,

India’s Forex Reserves crosses US$ 300 bn.

India gets more FII funds than it’s Asian peers, touches US$ 28.50 bn so far this
year.

The National Payments Corporation of India rolls out an instant Inter Bank mobile
payment service that will enable the retail customers of seven banks to enjoy 24X7
funds transfer. SBI, BOI, UBI, ICICI, HDFC, Axis and Yes banks became the first set of
banks to go live with IMPS (Instant Mobile Payment Service).

Income Tax Department introduces ‘Document Identification Number – DIN” for tax
filing and related correspondence.

SBI hikes the interest rates on deposits by 150 Bp, other banks to follow suit.

Bank of Baroda to open 900 more branches by 2012 and recruit 7500 more
personnel.

The unclaimed deposits with the banks in India amounting to around 1400 cr
rupees will be transferred to the newly created “Depositor Education & Awareness
Fund”. Thus many Public Sector Banks are going to lose access to the cheap funds.

From 01-Dec-10 the Delhi banks stopped accepting the cheques which were
overwritten.

A probe is ordered on the debt write offs by the Public Sector Banks

All the 20 Public Sector Banks in India will conduct a Common Entrance Test for
recruitment into the banks. As per IBPS the tests are planned four times during an
year for Clerical cadre and two times an year for the Officer cadre.

Banks in India are mopping up the funds through market to ease the liquidity.

Money laundering and terrorism financing concerns have prompted the Reserve
Bank of India to caution banks to be on guard against their depositors falling prey
to ‘money mule transactions'. In a money mule transaction, an individual with a
bank account is recruited to receive cheque deposits or wire transfers and then
transfers these funds to accounts held on behalf of another person or to other
individuals, minus a certain commission payment.

The Competition Commission of India (CCI) rules in favor of the banks and financial
institutions charging penalties for pre closure of the Home Loans.

Spectrum, December 2010 Page 2


Many Public Sector Banks and LIC are caught in home loan scam which is under
investigation.

SWIFT and the standards body, TWIST, are working together to deliver ISO
certification for its Bank Services Billing standard. The industry seems to be
responding with increasing uptake

Vodafone has tied up with HDFC Bank to take its M-Pesa mobile payments scheme
into India. Adoption in other countries is growing and, in its original Kenyan market,
Equity Bank is doing well on M-Pesa's coat-tails

-P.V.Venkataram

Spectrum, December 2010 Page 3

Are Gold Loans Safe ??

You may ignore the sparkle of the yellow metal itself, but it is really difficult to overlook the
glitter of gold loans these days. In fact, spurred by soaring prices, rise in consumerism and,
more importantly , changing social norms, gold loans have not only seen an unprecedented
rise in recent times, but are also all set to shine more brightly in the future.

Sample this: The organised gold loan market in India, pegged at 25,000 crore in FY 2009,
grew at a compounded annual growth rate (CAGR) of around 38% between FY 2002 and FY
2009 and is expected to grow at an annual rate of 35-40 % over the next three years to reach
a portfolio size of 50,000-53 ,000 crore by FY11. This study by ICRA Management Consulting
Services alone is enough to set the alarm bells ringing for those in the pawn broking
business. The reasons for this kind of growth in gold loans, however, are not far to seek.

Firstly, it is a convenience. The sheer convenience of a loan proposition against such a liquid
asset suits both the lender and the borrower. In some cases, it may be the last resort for the
client, but it is a convenient one. Lenders find it a timeless, good business model, while
clients, who need money quickly, find the best way to raise the funds.
Secondly, it is at a low interest rate. In fact, borrowing against gold is fast emerging as the
most preferred financing option as the interest rate charged by institutions are less
compared to other retail loans such as personal loans. For instance, the rate of interest on
these loans is between 10% and 24% per annum. In comparison, personal loans charge 16-26
% per annum, depending on your credit profile.

Therefore, “it is better to take a loan against gold than a personal loan as the rates will be
lower—since this type of loan is secured. Another good reason to take a loan against gold is
that most banks/NBFCs allow you to pay only the interest on the loan monthly and the
principal payment at the end of the term and not as an EMI; which works better from an
interest perspective. Also, instead of keeping gold idle in a locker at home or in a bank’s
locker, “it is a good idea to borrow against it at lower rates in comparison to other retail
loans. Moreover, lenders also prefer this route of financing as the default rate is negligible. In
general, the loans may be provided for 70-85 % of the value of gold.

Added to these is the fact that pledging gold is no longer considered a taboo and disgraceful
in Indian society. This explains why gold loans are now widely recognised as acceptable
means of raising funds for meeting urgent requirements by all segments of society. Some
people also go for it because they find it more private than going to a neighborhood
moneylender . Also, with gold prices soaring, even banks have begun to push customers
towards gold loans. The transactions have become more popular as small personal lending
dries up because of rising defaults on risky loans.

This is, however, not to suggest that you should throw all caution to the wind while opting
for a gold loan, as the chances of losing your family heirlooms are higher in case of a dispute
Spectrum, December 2010 Page 4
or default. That is because gold loans are secured loans. So if you fail to repay the loan within
the stipulated loan period, a higher interest will be charged and the gold may even be
auctioned off.

This goes without saying, therefore, “if you need money quickly and don’t have any other
assets to pledge, this is a useful avenue. But if you don’t have the confidence of returning the
principal and interest in time, then you should avoid taking a loan against gold. Also, gold
loans are good in a rising market. However, if gold prices correct drastically during the loan
tenure, banks may ask for the payment of the difference. Thus, even availing a gold loan is
not without risks, which explains why you need to mull the pros and cons of pledging the
yellow metal carefully and also look for some other options available before going for a gold
loan. It also makes sense to consider in what circumstances you should go for it and when to
avoid it. In normal circumstances, for instance, if your credit history is bad or completely
beyond repairable in near future, you can think of availing a loan against gold, that too at a
discounted rate in comparison to personal loans. Customers with low or understated income
can also avail a loan against gold. It is, however, a strict no-no to borrow against gold if you
wish to use these funds for instant gratification or speculative investments. In that case it is
advisable to just look for some other options!

Go for a gold loan only if you are looking for emergency funds and don’t have any other
option Customers with bad credit history, low or understated income can also go for it Avoid
a gold loan in case you are unable to repay the loan or are likely to default on repayment
Avoid it if gold prices are likely to correct drastically during the tenure of the loan.

- P.V.Venkataram

Spectrum, December 2010 Page 5

How to optimize the utilization of your Credit Cards
Banks are now trying to give credit cards a makeover! Button and light controls to choose if
you want to utilise reward points, security measures prompting you to enter a pin and even
smart phone aligned credit card technology is being researched aggressively to make the
plastic cards obsolete.

However the scenario in terms of utilising credit cards seems to have changed in India
compared to yesteryears. In recent times credit card usage has seen a significant decline
compared to its rapid growth especially between 2005-2008. After that due to the recent
global financial crisis the credit card usage took a dip replaced by a consistent rise in debit
card usage. Credit cards can be a smart tool if made use of judiciously especially when you
want to ramp up a good credit score. Here are some pitfalls you need to look out for in order
to utilize your credit card to the optimum

The 'interest free' period should not be taken for granted. To understand the interest free
credit period in better light let's take the example . Your credit card provided you interest
free credit for up to 55 days. You however had the good sense to know that this did not hold
true in the case of cash withdrawals as the interest rate meter starts ticking from the
moment cash is withdrawn not to mention a withdrawal charge of around 3-4%. Though you
refrained from withdrawing cash using his credit card he however did not read the fine print
thoroughly and got confused with why his interest free period varied with every purchase!
After paying up the interest debating with the credit card company you learnt the hard way
that you do not get a 55 day interest free period for every purchase you make

It only means that the maximum number of days you won't be charged interest for a new
purchase is 55 days and this is tied to the day of the payment cycle (billing period) you make
your purchase. Your credit card statement starts on the 1st of every month and ends on the
30th of every month. If you had up to 55 days interest free, your credit card bill will be due
on the 25th of the next month.

So for instance let's consider:

1st October - first day of the credit card statement

31st October - last day of the credit card statement
24th November- the day the October credit card bill is due

This means that there is a total of 55 days from the 1st of October including the day his bill is
due. Now let's say you made a purchase of Rs. 100 on the 1st of Oct. No interest will be
charged on the amount of the purchase up to, and including, the 24th of Nov. So,you will get
55 days interest free on the purchase billed to his credit card on the 1st of Oct.

Here is what happens in other scenarios.

Spectrum, December 2010 Page 6

If you make a purchase of Rs.150 on the 20th of Oct, still no interest will get charged as
including 24th of Nov from the date of purchase he has a 35 days interest free period.
However, if you make a purchase of Rs.200 on Nov 22, you still will not get charged interest
as you would get 2 days of interest free purchase after which his interest meter will kick in
and reflect in your next bill. You can prevent this by making a full payment for all the
purchases made in this billing cycle. Instead if you merely stuck with making minimum
payments, then things can get tricky for him

Tip: To observe of interest rate is being charged for any of the recent purchases you made
towards the end of a billing cycle, always check your current credit card statement online as
opposed to the last credit card statement. This will alert you of any accumulating interest
and enable you to close the dues quickly before you end up paying a hefty interest charge.
Your credit card company normally fixes around 5-20% of the total payment due as the
minimum payment to be paid up before the due date specified in your credit card statement.
If you do not pay even the minimum amount then late charges will also be added along with
the interest. If you opt to pay the minimum amount due, the unpaid amount is carried
forward to the next billing cycle and so on, under revolving credit facility. What you need to
note here is that, any fresh purchases will not enjoy an interest free period i.e. you start
paying interest from the day on which you make a purchase. This will continue till the total
amount due has been paid for. Also even if you pay the minimum amount due, interest will
be charged on the total amount due.

Let us take consider the example one XYZ who used her credit card extensively, usually more
than 80% of her credit limit of Rs.1.5 L. She had the habit of paying up only the minimum
amount due promptly before the due date. Let us take one instance, where her expenses on
the card amounted to Rs.1 L and calculate how much interest she had to eventually shell out
by the time she repaid the amount due in full, by paying only the
minimum amount due.

Remember, this is calculated without taking into account her future expenses on the card,
assuming she does not use it after this particular billing cycle. One of most effective ways to
utilise your credit card is to plan your spending and repayment with them in a manner which
boosts your credit score. Never exceeding 40% of your credit limit has a very beneficial effect
on your credit score.

This shows your credit limit is high but you have not burnt it up and have plenty in reserve.
This logic helps you attain a much higher credit score. Remember bad usage of your credit
card and plummet your credit score to dark depths. Your chances of getting a loan in future
will become slim or will come with a very high interest rate attached to it.

Make wise decisions about purchasing items you need versus those you simply want.
It is important to distinguish between the two.

Spectrum, December 2010 Page 7


Pay on time, within the due date. Consecutive missed payments will result in a poor
credit score.

Stay within 30-40% of your credit limit.

Read your credit card statement carefully.

Use your credit card to make everyday purchases like food, clothing, and petrol.
Using your credit card as a substitute for cash will land you in unnecessary debt.

Get out of the habit of making minimum-only payments. Making only the minimum
payment each month increases the amount of time it will take to pay off your debt.

Withdrawing cash from an ATM using your credit card will not only attract a hefty
withdrawal fee, and the interest will levied from the moment the cash is withdrawn

P.V.Venkataram

Spectrum, December 2010 Page 8

Pension Plans no match to PPF !!!
While an old warhorse like PPF offers peace of mind at maturity, things are not so simple
with pension ULIPs. What’s in a name? That which we call a rose by any other name would
smell as sweet,” wrote William Shakespeare in his famous play ‘Romeo and Juliet’.
Well, we can say the Great Bard may have been off the mark, for once. The name of a
product indeed plays a great role in how well it sells. Let’s take the case of pension plans sold
by insurance companies. What if we were to tell you that there are other investments that
can do what pension plans do, but they aren’t really called pension plans? And since pension
plans are called pension plans, you and me feel comfortable buying them, thinking that when
we are old we can use the accumulated money to generate a regular income.

What Are Pension Plans? : The Webster English dictionary defines the world pension as “a
fixed sum paid regularly, especially to a person retired from work.”Insurance companies
basically offer two kinds of pension plans — immediate annuities and deferred annuities. An
investment made into an immediate annuity ensures a regular payment from an insurance
company, monthly, quarterly, bi-annually or yearly in nature, for that matter. Immediate
annuities ensure that the policyholder gets a regular “pension”.

In a deferred annuity, a policyholder needs to pay a regular premium for a certain number of
years. This phase is referred to as the accumulation phase. The accumulation phase is
essentially used to build a corpus. Once the phase is over, the money that has accumulated is
used to buy immediate annuities which, in turn, generate a regular income. So deferred
annuities are like any other investment product that help you build a corpus by investing
regularly. Hence, to that extent the name pension plan is clearly a misnomer. But given the
name, pension plans used to be a top selling product for insurance companies. In 2009-10,
pension plans mopped up around Rs 58,000 crore. During April to June 2010, pension plans
have garnered close to Rs 7,000 crore. Then things changed. Starting September 1, 2010, the
Insurance Regulatory and Development Authority of India (IRDA), the insurance regulator
made it mandatory for insurance companies to guarantee a return of 4.5% on unit-linked
pension plans till March 2011.

Beyond that, the minimum returns will have to be linked to the average reverse repo rate (or
the rate at which the Reserve Bank of India borrows from banks) with a minimum return in
the range of 3-6%. Subject to this band, the guaranteed returns will be 50 basis points higher
than the average of reverse repo rates during the four quarters of the preceding financial
year. Further, unit-linked insurance plan (ULIP) commissions have been capped, which has
ensured that the agents will not be too keen to sell these products. So far, only LIC and ICICI
Prudential Life Insurance have launched pension ULIPs, while SBI Life has reportedly sought
Irda’s permission to launch one. Notably, the two private life insurers are focusing on single-
premium pension ULIPs. The risk of offering a guarantee, assuming that premiums will flow
in over such a long term, is apparently holding back insurance companies from designing
regular premium pension ULIPs. But it is highly likely as the tax-saving season (Jan ’11 to

Spectrum, December 2010 Page 9

March ’11) approaches, several insurers may launch pension ULIPs as they have been the
best selling products in the past.

How’s A Pension Plan Structured? : In unit-linked pension plans, the premium that you pay
is first deducted for the premium allocation charge (through which the agent is paid
commission). The remaining money is then invested in an investment fund of your choice.
Also, typically the choice of fund may vary from a fund which invests 100% in equity to
another which may put 100% in debt. That, of course, is not the case now, as insurers need
to guarantee a certain return. So, no insurer is going to bet 100% of the investment on
equity. For instance, LIC offers two fund options under Pension Plus – debt fund and mixed
fund. The former invests the entire corpus into debt instruments, the latter invests up to
35% in equities.

Should You Invest In A Pension Plan? : Like all other ULIPs, Irda has capped charges on
ceilings pension ULIPs too. “Earlier, I never recommended pension ULIPs because of the high
charges that were built in. Now, I don’t advise my clients to go for them because of the
guaranteed return factor,” explains certified financial planner Pankaj Mathpal. Concurs Anil
Rego, CEO of financial planning firm Right Horizons: “The guarantee makes pension ULIPs
defensive. It may be useful for someone who is over 45 and is looking to invest for a shorter
time-frame. But for those who are young, with perhaps a 20-30-year outlook, directing 100%
of investment towards equity is better.”

Since insurance companies have to guarantee returns, it doesn’t make sense for them to
offer an equity-heavy investment option to the investor. They have to ensure that the
structure of their portfolio is such that it gives the investor a guaranteed return. This implies
that a major part of the investment will have to be in debt securities. And given that, the
corpus likely to be accumulated isn’t going to be great. Also, since no withdrawals are
allowed during the premium-paying term, this could be a turn-off for those who may
suddenly need some money in the interim.

What Happens At Maturity?: When the pension plan matures, the policyholder can
withdraw one-third of the corpus tax-free, according to the current income-tax laws. The
remaining portion has to be used to buy immediate annuities, which means that the
policyholder has to compulsorily buy immediate annuities come what may, even when other
investment options may help him earn more. The Senior Citizens Saving Scheme (SCSS),
allows investors to invest up to Rs 15 lakh and guarantees a return of 9% pa with a payout
every three months. Beyond that, the post office monthly income scheme (POMIS) pays an
interest of 8% per year up to a maximum investment of Rs 4.5 lakh. Even FDs give returns
superior to immediate annuities currently.

The Alternatives: Without doubt, your first stop for building a retirement corpus should be
the time-tested public provident fund (PPF). The product is a must in your retirement
planning portfolio. Any other avenues should be explored only after the yearly limit of Rs
70,000 is exhausted. The product offers an attractive tax-free return of 8% per annum

Spectrum, December 2010 Page 10

(compounded), and easily ranks as the best amongst its peers. Also, as far as guarantees go
you would rather have a guarantee of 8% from the government of India, than a guarantee of
anywhere between 3-6% from the insurance companies. A PPF account matures in 15-16
years and can then be extended for blocks of five years each indefinitely. Moreover, in case
of PPF, investor can withdraw once every year from the seventh year, which makes it a more
liquid option compared to pension ULIPs. “Once the PPF option is exhausted, you can look at
the new pension scheme. Since it is a long-term investment, you can choose the option to
invest up to 50% of your contribution into equities. This apart, you can look at investing in
tax-saving mutual funds (or even equity mutual funds) with a long-term horizon in mind,”
says Mr Mathpal. The advantage of investing in mutual funds is that you can select the best
mutual funds in the market. That is not so with ULIPs, given their complicated structure

-P.V. Venkataram

Spectrum, December 2010 Page 11

Sports Lounge

India & the 2011 Asia Cup Football

The 2010 FIFA World Cup has just concluded on 11th July. For the first time the World Cup
was held in an African country. In the final, Spain defeated third-time time finalists the
Netherlands 1–0.
0. Diego Forlán, from Uruguay, was given the Golden Ball award. The Golden
Boot was given to Thomas Müller. Iker Casillas, from Spain, won himself the Golden Glove
award.
The Asian version of the
World Cup, i.e. the 2011 AFC Asian Cup, will be held
in Qatar from 7th January 2011. A total of 16 teams,
including India, have qualified to play in the
tournament. A total of 5 stadiums across 2 cities will
be used for the matches.

Groups & Matches

All the 16 teams are drawn among 4 groups. India is
in Group C with Bahrain, South Korea and Australia.
The latter two teams have also played in the 2010
FIFA World Cup in South Africa and Bahrain missing
out on an appearance losing at the last stage to N
New
Zealand.

Spectrum, December 2010 Page 12

 Group A Group B
Qatar Saudi Arabia
Kuwait Japan
China Jordan
Uzbekistan Syria

Group C Group D
Korea Republic Iraq
Australia Korea DPR
India UAE
Bahrain Iran

The knock-out rounds will start from 21st January. The Final will be held on 29th January.

India in Asia Cup

India has twice qualified for the Asia Cup prior to the 2011 tournament.
In the 3rd Asia Cup in 1964 in Israel, India got the Second Place in the Cup. In the 8th Asia Cup
in Singapore, India did not clear Round -1. India lost 3 out of the 4 games it played in the
Cup.

India has qualified for the 2011 Cup because it won the 2008 AFC Challenge Cup. With this
marvelous show, we can expect some spark from the Indian side on the 2011 Asia Cup too.
Let’s hope for the best.

- Shayan Anwer

Spectrum, December 2010 Page 13

Health Tips

NATURE CURE
Dandruff

Dandruff refers to the flaking scalp which falls like a snow flakes and settles on one’s brows,
shoulders and clothes, but assumes an unpleasant , irritating condition associated with
bacteria, in the case of excessive formation of scales on the scalp. These scales are formed
from the horny layer of the skin.
Symptoms
The scaliness increases whenever the hair is brushed or rubbed. It may also appear as lumps
or crusts on the scalp. Often there is itching as well, and the scalp may become red from
scratching.
Causes
The main causes of dandruff are : impairment of general health, toxic condition of the
system brought on mainly by wrong feeding, constipation and lowered vitality due to
infectious diseases. Other factors contributing to dandruff are emotional tension, harsh
shampoos, exposure to cold and general exhaustion.
Treatment
Numerous medicated shampoos are available in the market for the treatment of dandruff.
Most of these, however, in the process of curing the disorder, cause irreparable damage to
the hair roots because of the synthetic ingredients contained in them. The treatment of
dandruff has to be constitutional, if a permanent cure is desired.
The foremost consideration in the treatment of this disorder is to keep the hair and scalp
clean so as to minimise the accumulation of dead cells. The hair should be brushed daily to
improve the circulation and remove any flakiness. The most effective way to brush the hair is
to bend forward from the waist with the head down towards the ground, and brush from the
nape of the neck towards the top of the head. Short or shoulder-length hair can be brushed
right from the roots to the ends in one stroke. In the case of long hair, two strokes would be
best to avoid stretching the hair. The scalp should also be thoroughly massaged every day,
using one’s finger tips and working systematically over the head. This should be done just
before or after brushing the hair. Like brushing, this stimulators the circulation, dislodges dirt
and dandruff and encourages hair growth. Several home remedies have been found useful in
the treatment of dandruff. The use of fenugreek (methi) seeds is one such remedy. Two
tablespoons of fenugreek seeds should be soaked overnight in water. The softer seeds

Spectrum, December 2010 Page 14

should be ground into a fine paste in the morning. This paste should be applied all over the
scalp and left for half-an hour. The hair should then be washed thoroughly with soap nut
(ritha) solution or shikakai. The use of a teaspoon of fresh lime juice for the last rinse, while
washing hair, is equally beneficial. This not only leaves the hair glowing but also removes
stickiness and prevents dandruff. Washing the hair twice a week with green gram powder in
curd is another useful prescription.

Dandruff can be removed by massaging one’s hair or half-an- hour with curd which has been
kept in the open for three days, or with a few drops of lime juice mixed with amla juice every
night, before going to bed. Another measure which helps to counteract dandruff is to dilute
cider vinegar with an equal quantity of water and dab this on to the hair with cotton wool in
between shampooing. Cider vinegar added to the final rinsing water after shampooing also
helps to disperse dandruff.

Diet plays an important role in the treatment of dandruff. To begin with, the patient should
resort to all-fruit diet for about five days. In this regimen, there should be three meals a day,
consisting of fresh, juicy fruits, such as apples, pears, grapes, grapefruit, pineapple and
peaches. Citrus fruits, bananas, dried, strewed or tinned fruits should not be taken. Only
unsweetened lemon or plain water, either hot or cold, should be drunk. During this period, a
warm water enema should be taken daily to cleanse the bowels and all other measures
adopted to eradicate constipation.

After the all-fruit diet, the patient can gradually adopt a well- balanced diet. Emphasis should
be on raw foods, especially fresh fruits and vegetables ; sprouted seeds, raw nuts and whole
grain cereals, particularly millet and brown rice. Further short periods on the all-fruits diet
for three days or so may be necesssary at a monthly interval, till the skin’s condition
improves. Strict attention to diet is essential for recovery. Starchy, protein, and fatty foods
should be restricted. Meats, sugar, strong tea or coffee, condiments, pickles, refined and
processed foods - all these should be avoided, as also soft drinks, candies, ice cream and
products made with sugar and white flour.

Exposure of the head to the rays of the sun is also a useful measure in the treatment of
dandruff. Simultaneously, an attempt should be made to keep the body in good health. This
also helps clear dandruff.

- Saneesh Kumar

Spectrum, December 2010 Page 15

Some Benefits of the Holy Basil (Tulsi)
The tulsi or holy basil is an important symbol in the Hindu religious tradition and is
worshipped in the morning and evening by Hindus at large. The holy basil is also a herbal
remedy for a lot of common ailments. Here're top fifteen medicinal uses of tulsi.

1. Healing Power: The tulsi plant has many medicinal properties. The leaves are a nerve tonic
and also sharpen memory. They promote the removal of the catarrhal matter and phlegm
from the bronchial tube. The leaves strengthen the stomach and induce copious
perspiration. The seed of the plant are mucilaginous.

2. Fever & Common Cold: The leaves of basil are specific for many fevers. During the rainy
season, when malaria and dengue fever are widely prevalent, tender leaves, boiled with tea,
act as preventive against these diseases. In case of acute fevers, a decoction of the leaves
boiled with powdered cardamom in half a liter of water and mixed with sugar and milk
brings down the temperature. The juice of tulsi leaves can be used to bring down fever.
Extract of tulsi leaves in fresh water should be given every 2 to 3 hours. In between one can
keep giving sips of cold water. In children, it is every effective in bringing down the
temperature.

3. Coughs: Tulsi is an important constituent of many Ayurvedic cough syrups and

expectorants. It helps to mobilize mucus in bronchitis and asthma. Chewing tulsi leaves
relieves cold and flu.

4. Sore Throat: Water boiled with basil leaves can be taken as drink in case of sore throat.
This water can also be used as a gargle.

5. Respiratory Disorder: The herb is useful in the treatment of respiratory system disorder. A
decoction of the leaves, with honey and ginger is an effective remedy for bronchitis, asthma,
influenza, cough and cold. A decoction of the leaves, cloves and common salt also gives
immediate relief in case of influenza. They should be boiled in half a liter of water till only
half the water is left and add then taken.

6. Kidney Stone: Basil has strengthening effect on the kidney. In case of renal stone the juice
of basil leaves and honey, if taken regularly for 6 months it will expel them via the urinary
tract.

7. Heart Disorder: Basil has a beneficial effect in cardiac disease and the weakness resulting
from them. It reduces the level of blood cholesterol.

Spectrum, December 2010 Page 16

8. Children's Ailments: Common pediatric problems like cough cold, fever, diarrhea and
vomiting respond favorably to the juice of basil leaves. If pustules of chicken pox delay their
appearance, basil leaves taken with saffron will hasten them.

9. Stress: Basil leaves are regarded as an 'adaptogen' or anti-stress agent. Recent studies
have shown that the leaves afford significant protection against stress. Even healthy persons
can chew 12 leaves of basil, twice a day, to prevent stress. It purifies blood and helps prevent
several common elements.

10. Mouth Infections: The leaves are quite effective for the ulcer and infections in the
mouth. A few leaves chewed will cure these conditions.

11. Insect Bites: The herb is a prophylactic or preventive and curative for insect stings or
bites. A teaspoonful of the juice of the leaves is taken and is repeated after a few hours.
Fresh juice must also be applied to the affected parts. A paste of fresh roots is also effective
in case of bites of insects and leeches.

12. Skin Disorders: Applied locally, basil juice is beneficial in the treatment of ringworm and
other skin diseases. It has also been tried successfully by some naturopaths in the treatment
of leucoderma.

13. Teeth Disorder: The herb is useful in teeth disorders. Its leaves, dried in the sun and
powdered, can be used for brushing teeth. It can also be mixed with mustered oil to make a
paste and used as toothpaste. This is very good for maintaining dental health, counteracting
bad breath and for massaging the gums. It is also useful in pyorrhea and other teeth
disorders.

14. Headaches: Basil makes a good medicine for headache. A decoction of the leaves can be
given for this disorder. Pounded leaves mixed with sandalwood paste can also be applied on
the forehead for getting relief from heat, headache, and for providing coolness in general.

15. Eye Disorders: Basil juice is an effective remedy for sore eyes and night-blindness, which
is generally caused by deficiency of vitamin A. Two drops of black basil juice are put into the
eyes daily at bedtime.

DISCLAIMER: These are only general guidelines as a first aid. It is always better to see a
doctor depending upon the intensity of the case.

Gul Shivnani

Spectrum, December 2010 Page 17

Test Your IQ

PICTURESQUE

I am oval or round in shape and I can’t stand straight!! I am used for measurement
sometimes...
I am part of, one of the most commonly used hatred sayings...

Who am I?!?

Hint: I am also an American indie rock band.

Send your answers to Chandra.C@cgi.com before 25-Dec-2010.

Spectrum, December 2010 Page 18

November 2010 Results
Answer: L E D Lamp

Modifications: Water Painting

Spectrum, December 2010 Page 19

Members answered the November -10 Picturesque correctly-

- C.Chandra

Spectrum, December 2010 Page 20

Members Corner
New Members @ CGI
Members joined at Bangalore : 133

Members joined at Mumbai : 10

Members joined at Hyderabad : 11

Long Service Club

Members Completed 10 Years & above:

Anuradha Kulkarni Mumbai

Kumar G Bangalore
Pramod J Bangalore
Bijumon KV Bangalore
Kiran Lagvankar Bangalore
Vishnu Kanthan K Bangalore

Members Completed 5 Years

Indrajeet Yashdev Valera Bangalore

Manoj Kumar Behera Bangalore
Deepalee Sureshchandra Jain Mumbai
Nikhil Kirit Tanna Mumbai
Prasad Anil Kowli Mumbai

Please post your comments/suggestions/contributions at :

Newsletter.Ban.India@cgi.com or to Venkataram.pv@cgi.com for any specific responses.

Spectrum, December 2010 Page 21