Comments for Rodinhood.com by Alok Kejriwal

Comment on Why don’t Companies pay their suppliers on time? by Seema

Seema — Thu, 02 Sep 2010 09:11:44 +0000

Spot On!

I completely agree with you and I seriously hope that companies should be ranked in CRISIL like format based on their payment to suppliers. And you surely did hit at home in the manner in which you described the way advertising and media agencies are treated by companies. They surely make you beg! I simply don’t understand why, despite being in a Corporate set-up and while claiming to be “Professional” and expecting “Professional” work, why do these Companies – big, medium & small – start acting like Govt or Lala companies wherein they make you run after them to get your professional fee, which they should have paid in the first place?

I sincerely wish your suggestion is taken into account.

Comment on Why don’t Companies pay their suppliers on time? by Sanjivrao Katakam

Sanjivrao Katakam — Thu, 02 Sep 2010 09:00:54 +0000

Hi Alok,
As usual a very innovative post which has activated the thought process in many.
I want to point out a learning which finance professionals/ managers get during their course. I am talking about general finance practices which is followed by majority of the corporates : Get the money as soon as possible, delay the payments as far as possible. In both instances, intention is to retain the capital in the company as long as possible.
You have also pointed about the pain% being included, that is very true. Company do charge premium for the risk as it shown in the billing. This risk includes everything (pain% as well).
Payment Index – Very interesting concept and also funny. But what puzzles me here is why should a big cap supplier having a good liquidity bother about payment index ratings. Supplier market is a RED Ocean, if you are not willing then somebody else may be a MNC would be ready to supply to low rated company. In such a case, supplier strictly following the index would eventually loose the market share. You have already mentioned about the suppliers of Worli Sea link.

Overall, a very interesting post.

Regards…
Sanjiv

Comment on Why don’t Companies pay their suppliers on time? by Vivek

Vivek — Thu, 02 Sep 2010 08:51:18 +0000

Great post. Please provide an RSS link on your website, I just found by accident – rodinhood.com/feed

Comment on Why don’t Companies pay their suppliers on time? by Pradeep

Pradeep — Thu, 02 Sep 2010 08:05:33 +0000

Ahh…Again a wonderful post. DUKHTI NUS PE HAAT RAJH DYE sir jeeee
Your idea to make arating and ranking is really great

Comment on Why don’t Companies pay their suppliers on time? by Guru

Guru — Thu, 02 Sep 2010 07:39:22 +0000

I know how it feels! I’ve been on the receiving end. Especially with PSUs where you literally feel powerless against the ‘powerful’ accounts person who has to release your cheque (which has already been approved and signed and sitting in his drawer!).

I believe most companies which have been on the receiving end tend to have a better in paying off their suppliers. Don’t you agree?

Comment on Why don’t Companies pay their suppliers on time? by Sanjay Mehta

Sanjay Mehta — Thu, 02 Sep 2010 07:31:15 +0000

Aah.. you have spoken my heart.. totally!! Am going to share this with my clients.. lol!

Comment on Why don’t Companies pay their suppliers on time? by SANJAY DODRAJKA

SANJAY DODRAJKA — Thu, 02 Sep 2010 07:15:18 +0000

Hi Alok. Facing the same problem. I run a middle level CA Firm. One of the top 5 MNC’s of India(cant name it here) is sitting on 5 lacs of Invoices raised by us. The only issue here out is we always did work for them on verbal assurances of Managers. What’s the best way you suggest to get money out of such Companies.

Comment on How to avoid your Start Up from getting a Hangover! by Prosad Sen

Prosad Sen — Mon, 30 Aug 2010 17:05:13 +0000

Thank you for the genuine idea Alok! I am really excited by the idea. This would surely ensure maximum participation of partners and fair distribution of fruits of labour. But I am not able to figure out how to paraphrase and introduce such a clause in the partnership deed. Was it a partnership firm that you had formed with Mahesh? If not, then what kind of entity did you form and can you please confirm if and how such a clause can be introduced in a partnership deed?

Comment on Do you know how to say ‘Jump’? by Rodinhood

Rodinhood — Sun, 29 Aug 2010 09:31:56 +0000

Prosad, honestly, no one knows what the client is thinking. And what their real needs are. Its best to put your best proposal forward, neither be greedy nor foolish and then let the intent of both parties take control. Its like pricing – no one knows.

Comment on Do you know how to say ‘Jump’? by Prosad Sen

Prosad Sen — Sun, 29 Aug 2010 09:23:53 +0000

This is very true Alok. I, in my small career have faced similar situations a couple of times. But only the ones that I managed to study very closely and was confident about the genuineness of my proposal, were the ones I managed to pull off even after turning my back on the client’s pressurizing techniques. I also lost out on a couple of important deals. I understand that if one has made a sincere appeal and caught the attention of the client while making a pitch the first time, one has high chances of being called back. But, Alok, with your long experience, could you manage to draw the line and figure out what are the important tenets in a deal which if followed, makes one confident or increases the chances of the client coming running after you have left.