ENDOMWENIS AND NWXMENS

In thlr Chapter the poss~bllltles of creatlns new

endoumwntc and ralsln# funds for aev.lop.ent are discuss~a.

Furtnet, a rrrat.#y to have mu1rlpl:or off.ct on tho Invortrontr

J r rrro d0SCrlbod. S ~ c n efforts couta holp to reduce ffnrnefal

~ o n s r r ~ l n t s of unlvorsltlel.

9.1 RARIESSING COIIYOIFITY RESCI'RCES FOR DNELOPYEm

Cadonon tr

Part I Y of Accounts on debts and deposits, needs

rpcrctrl attentton as i t belps to generate income by means of

tntsrest accrued on invertmento. The trust 6aney of endowments

la accounted under this bead and bas great potential to generate

mars fundr. Oor operatlag definltlon of endowment fund is that

i t ir l p.rp.tu.1 pool of capital with no predictable nsed to 1

atillre principal. Bndovments have been tbe u j o r source of

educatlonrl lnrtt tutionr in tbe ancleat days. Rich iadiridual*~

1. M.8. kro l &ad 8.0. Ginsburs, #LPI(~IY th* Pither ICduoation bt*rpriw, USA, John U i l e y rod Son8 I~c., 1980, p.60.

philanthropists, industrialists, business magnates and corporate

bodies can now come forward to endow funds towards educational

cause. Endowments provide a perennial source of income for

meetlng expenditure on memorial lectures, prizes and medals which

could act as an incentive in creating a healthy competition

towards qualitative education. Part I V of accounts shows, along

with other debts and deposits, endowments created. The total

amount of the endowments is shorn on liabilities slde of balance

sheei and in 1990-91 it constituted 1.01 per cent of the total

llabllitles of PU.

Tax Bremption

The L'GC report on "Towards Sew Educational Management"

stater. The corporate sector (both prlvate and public) sbould be

exouraged to come forward to support hlgher education.

Esr&blirbment of lrravocable endowcenrs for spec~al chairs,

researcb actlvitres arc. could form part of such support. The

t a x eremptlon policy of Covernnnt should be liberalised to m k e

dooattoam for hlgber educational 1nstlt~tlOnS on par with

donations for sclentillc research and made 100 per cent tax 1

exempt'. Covernnnt of lndla bas effected this from 1-4-1994 in

tbe tinaoce Act 02 1993.

Dsvrlopn~trl rotivttimo

Dovelopoental plasm and nchames requite .om funds and

beaco tbe t e n -~.oolopnntrl Activities" is interpreted at 'Pund

rrialng rctiviti.8'. gD.velopclot is euphwi8. for fund raisln&.

1. A. Oorarm, Coavmnor, O M Coulttee'r Report Twardr r New tduortionrl U a a g m a t . Now Iklhi. UGC, 1970.

There are in fact at least three major kinds of fund raising

campaign that take place at an institutition There are major

Campalgo, the on going annual givers campaign and the effort. to 1

obtain funding from federal and private foundation sources

Major C.pit.1 Campaign

The major capltal campaign can produce a very

substantial lnflux of funds within a relatively short time frame.

The capital campaign is usually but not necessarily, related to a

speclfic objective or set of objectives and in many instances may

colaclde with some speclal event that tends to enhance it6 Appeal

and give focus to the campaign. Its mkin thrust is on a targeted 2

rum of money to be obtained largely through one time aajor gifts

For bulldln~r and amenities

A major bullding crmpalgn for auditorrua, lecture

ball, seminar hall. Iaboratory, amenities like later Tank, Tiffin

Shed. Rbst House etc. may appeal to different types of donors

espaciaily mhen their name or the names of persons rho are dear

to them or tbe name of the organ:sation or industry 1s annexed to

:be name of the building.

The growth of endowment accounts along with other

coapoaente of the Dsbtr and Deposits Account6 o f PU ie shown in

1. B.B. Karol and S.G. Ginsburg. 3. %., P.69.

TABLE 9.1

GsOTTB AND COYP08ITIO)I OF DgBT M D DEPOSITS ACCOUIIT OF PU 1987-88 to 1900-01

(Rs. hkhs j ................................................................. Sl.)tO. 1987-88 1988-89 1989-90 1990-91 ................................................................. 1 Provident Fund 3.75 9.52 21.01 37.81

(31.81) (28.37) (39.65) (50.39)

2 Endowment Pund 7.41 9.40 12.15 14.75 (62.85, (28.01) (22.93) (19.66)

3 Loans and Advances 0.13 10.18 14.75 16.98 (1.10) (30.33) (27.84) (22.63)

4 Caution Deposlt 0.50 4.46 5.08 5.49 (4.24) (13.29) (9.583 (7.32; -----------------------------------------------------------------

5 Total 11.79 33.56 52.99 75.04 (100) (100) (100) (100) -----------------------------------------------------------------

Source: Finrnclal Eatlmates of respective years of PO (Figures in brackets Indicate the percentage to the total).

Though in 1987-88, e3dowment was the major component

(62.83). its share had been dwindling and reached 19.66 per cent

la 1990-91. Unless special comprlgns and efforts are taken to

create endownnts from all over India, its cwposition will

remrln w r e or less statlc in absolute tens and decrease faster

in percentage composltlon.

Provident Fund wbs tbe major coclponent sharing 30 to 50

p.r coat. h e a the nunbar of employees increases, this mill also

incrrarr. Since It Is r u J o r component, efforts should be taken

to Invoet the funds in an optimal way so a8 to earn u x i m w

i~cow/lntrrort, mi tbout rfiec ting i tr purpose of mylag i n

Tbe aaount of Loans and Advancer to be paid will vary

u i n l y depending upon the grants given by tbe UGC for House Lorn;

since the Unlversity was started only in lB85 and the employees

except a few absorbed staff have not gained 10 year8 experience,

balance of the fund 18 now available under this head. Once the

mtaff galn the required period of experience, the fund will be

exhrueted and recycled regularly till a saturation point is

reached.

Caution deposit consists of two items: deposits from

students mblcb will vary according to enrolment and the other is

Earnest Uoney Deposit C U D ) which will depend upon

construction mork. 7111 the work is completed the deposit will

be rrtalned and later i t will be adjusted/retarned.

the cosoun:tg may come forward to provide huge

donations rbtn a reasonable appeal 1s made to the people on

s p e c ~ f ~ c oc:r$ions b) orgrnlstng a conference in which the entire

g t l t r and rommo5l:ies could be displayed in an exhibition.

Llkemlsa, a t hlgber educcltional level, equipment &nd other

8mcnilles tan be requested to be donated by individual

phllanlhroplsts or :ndustrles.

Annual Day programme

Tbe ongoing annual givers programme l o frequently

tbouabt of as an alurnt plan while alumni constitute a natural

and prlury source of repetitive giving, there are u n y other

frlendr ot the lnstltution that can b. regarded as potential 1

roptitivo donors. Tbe annual givers p r o g r a m u y coincide

with tbe amour1 day of the University.

1. B.ll.Carol aod 8.G.Cinsburg @.Cft., P.71.

O.nerall~, the faculty constitute a major untapped

source for participation in fund raising activity: Even in one of

reeking research support on areas most directly of interest to

faculty members. many institutions lack a nystematic programme L

for rtimulating faculty participation .

Need tor Coherioa

Thus i t is understood from the above discussions :hat

the University should work as a coheslve organisation ~ i t h

natural understandlag and co-operation among its adm:nisrrators,

!rculty members and students. Creation of such a fine emot:onal

iategrat:on *it3 a !ee!lng o! be1ong:ngness is essent:al for the

development of any organisation, especially in sersvice

~rganlratlonr like Cnlversity.

Revenue generating activities

The management experts W.H.Karo1 and S.C.Ginsburg have

enumerated r long llet of revenue generating activities in their 2

*ark on Management of Hlgher M u c a t ~ o n Enterprise .

( 1 ) A variety of non-credit courses, seminars, ~orksbop8, lecturer focussing on particular interest or skills - photography. gardening. music appreciation, interior decorating. pbpslcrl fitness, dieting, cooking, spued reading etc.

( 1 ) Topics-of-tbe-day lectures and discussion bringing me11 inforcled individurlr.

(3) Renting of athletic facllties, rooas and other f&cllitier

(4) Consulting research, technical testing, management eervice for businers and industry.

( 5 ) Provide clasres for communication in reading, speech Job coun8elling.

( 6 ) Preparation for post collegiate careers, preparation for competitive examinatlonrr.

( 7 ) Computer Servlce.

( 8 ) SOll~ftlng contributionsdaequipsent, books, and vorks

(9) Sponsoring maratban runs, walk-a-thans, bike-a-than raffler for generating funds.

(10) Benefit performance by faculty. students: games, contests.

(11) Investing in various business enterprises.

(12) Seeking commerciml 8pplica::ons of research efforts, parenting.

(13) L'::llrlng talents of faculty, students, art work, a?-rrSlsement, deetgn, rrlt:ng, market research.

% l ) 1z:er-collegiate tournamen:s, press. University operated self sustaining food servlce.

A:: rhcsr actlvtties may not be sulrable to a11

anlvtrrltirs. Same a?::vi:ies like ::ems ( ? ) , ( 9 ) and (11) may

a o l mork :E lndlaa context. But there are other activities in

the list. which are potential i n ralslng funds for the

development of CniversItles. ?be recent order of UCC will be a 1

boon :o moC::lse rssources for the development of University.

PC la taking efforts in tb1S direction.

Apart from creatlng endowments and raising of

roaourcer through various activities Suggested, various research

organimattonu lncludtag State and Federal Covernoents, provide

fund8 tor mponrored scbemoslproJects. lbich could be fully

rrrlled by tbe faculty members.

I. letter No. YB-1/9O(CPP) dated 15-4-1983.

Heed for I w Strategy

The UGC report: "Towards a new Educational

Yanage~LIt* bas a180 made a concrete suggestion of creating I

endowments for developmental activities.

Many developmental activities, conceived and supported by the UGC or the respective governments, languish after their initial supporr is stopped lor want of recurring resources to run the activities.

the alternatlve suggestion would be that either the

Isderal or State agencies give as irrevocable endowments which

:an be urea as a corpus fund elther for A whole programme or for

r chair or for a research facility inbteld of grants and thereby

:be need for recurring grants for maintenance expenses can be

eiatm~sed. The Induetria! cstabllshments and other public

phllanthrspIsts could also be encouraged to supplement this type

?! enduvornts through appr3prlate :ax Incentives. Tt.e committee

also suggested

(1) All grants for new proposal and a11 additions to existing grants be in the form of e n d o w ~ n t s

(2) One tenth of tbe existlng maintenance grant be converted every year into an e n d o ~ n n t by allocating 10 times of that amount.

An lllustrrtlve model has been worked out in the

report. I t declared referring to the illustration a s follows:

In PO years Us.140 crores would bave been sbellad out under the present system mberear only Rs.355 crores would be tbe outflow from State Revenue under the proposed system. And out of this U.138 crorer,Bs.300 crores would be there intact.

Despite such advantages, this useful strategy is not

adopted So far, perbaps because in the initial five years the

expenditure would be double the total amount required under the

existing myatem. Upto 10 years, the requirement will be a little

more than the present system but by 11th year onwards, the

expenditure mould be less than what would be the normal

cxpendlture.

If i t is difficult to implement the scheme for a11

~nlversltles,thls can be implemented In a phased manner say

1110th of tbe Universities for the first 10 years. Then the

burden on these 10 Universities will be reduced considerably.

Further. :he model :Ilustratlon assuaed 10 per cent interest, if

tht inrcs:acnt 1s made in long rerr are multiplier scheees

fetching mart than 10 per cent interest, the recovery could be

ardc much ear!ier :Sari 10 years.

9.2 IEVESTYEbT STRATEGIES

Investnnt sources

Raising endowmcntr and fanos is one side of a coin and

1nvas:ing them tn optimal sources of income 1s another side of

I t . Despite ralslng huge sums. :: proper Investments are not made

mucb interes?;incomc !dividend r:ll be lost by keeping the funds

idle. 1

there are two categories o! investments:

(a) lnvestments relating to the various funds and finances of the Unlversltg and

(8) Investwnt forming part of the original endowment.

InIertHnt C0Bmitt.e

Y.L.Sobt1 has drawn detailed guidelines for

investments in chapter eight of his book Financial Code. Be

6uggeStS an Investment Committee consisting of the Vice-

Chancellor, the Finance Officer, a member of tbe Executive

Council and such other persons as may be appo~nted by EC. The

committee shall perform such functions as may be prescribed by

the fC from time to time and shall meet at least once in a

quarter.

It alao suggests that In the case of Investments in

Lavernmen: and other securilles all proposals whether for sale

o r pJrchasc shal; be placed before the In'restment Commlrtee. In

-lac o t Jrgcncy ?he declslon oi the Investment Committee may be

obtained S y clrculatlon. In practice, no purchase of securrtles

!a made. Avail~ble money is deposited ln sbort term or long term

deposlts $ 3 1 ~ .

Sub~e:: to general directions and policy presented by

the Caecurlve Council, the Ylce-Chancellor may direct the Finance

F!:cer to make tnvestmeats la call and sbort term deposits as

and when funds are available for investment.

Teader System

Under mode of investments, Y.L. Sobtl States that a11

investmnta shall be made aftar lnvittng tenders troll a panel of

brokora approved by ;be I ~ ~ e S t m e n t Committat for the purpose.

Ordinarily, tbe lwost tender in the Case of purchase and the

blgbert in tbe care of 8.10, shall be reconended for being

accepted onlea# there are any specific reasons for aot doing 80

which rbould be tecordrd in vriting.

Periodic Cath Flow Analpli8

A rtudy of cash inflow and outflow based on past

record. of m a t h w i r e receipts and payments, it would be possible

to judce and predict, within reasonable limits, the cash inflows

and o u t f l w s whlcb would essentially aid investment decisions.

Provident Fund

Under Debt and Deposits account, the deposits of

Provident Fund may leave a margin of deposfts for long term

lnvcstmcat: CPF/CPF Advances whlch are refundable, will again be

avallatle for recycling whereas final withdrawals only rill be

rt;utrcd to be paid once for al:. By computing these details, it

would be possible to set aside a par: of the deposits for long

:rra 3epos::s. T h u s :he f:nance Section shodld work out a cash

t ~ d g ~ t , Incicatlng when sbrplus cast s : : l be avallablc for short

:era r r ! l 3eyoslrs and hoe mach woslc se available for long term

aepos i :b .

Uostly maintenance and ~ : a c fdnd receipts may not be

ava:lable !or lnvestmcnt for lang period a s maintenance fund

w t l d be required for day-to-srv usc and plan funds whlch are

komtly for bulldlnps. r:11 have to be weposited with Central

Public Korks Departsent (CPt?!. however a part of it may be

avallabls tor call/rhort term dcposlts.

USA Practice

In USA, Investment Irnager is empowered, o f couree,

wltb the guidance o f the committee, to try investment in any

recuricy which, they consider, may fetch better income. They u y

even invert on securitier of new companier s o that the income

may be more hut i t involves risk of loss too. 'Although many

discursions on Endowment Pund management assumes an investment in

securities, there are a range of other opportunities for securing

a return on investesd capital e.g. real estate, oil and gas

properties, going business etc. None of which is ignored by 1

imaginatire and aggressive endowment fund manager'.

Study on endwment Management 2

In 1967. Ford Foundatloo commissioned a study on

;r~blems of Endowment Yanagement. The major recommendations are:

- Trustees should utlllse professional managers.

- All funds that may have :o be converted to cash within the near tuture should be removed from endowmen: portfolio and invested separately an short term 0blig~t10n.

- A plan should be adopted in which each year transfers are made f roa endowment operating funds in an aggregaTe amount equal to flve per cent of the three year moving average market value of the fund whether or not that amount is provided by interest or dlvldends.

Need to s m r e so00 Interest income 3

la another context. N.H.haro1 and S.G.Cinsburg state

Endowmen: fund management pollcy might consequently encompass a

targeted objective of nine per cent annual return and the three

per cent difference between targeted return Of the six per cent

would be an addition to Bndoument Pund to offset inflationar9

erorioo. (The interest rates &re low as the work relates to

1. 1.0. hro l rod S.G. Giorburg, a. P.61.

:: &j:

In respect of endwment,the policy underlying the

above statement appears that all Interest sbould not be spent in

that year itself. For example, if the interest accrued is at

nine per cent, six per cent may be spent and three per cent may

be added to the principal so that it could provide incoae to meet

e~CAl4tloa 01 expenditure. lo other rords,the endowment fund

must yksld current income and capital gains, an amount grehter

than rhrt mbicb 1s needed to suyport the current operating budget 1

AS A ~ ~ A D I 01 lnsulrting the endorment fund from inflation. For

exrmple. ? E ladras Unlvers1:y mhlcb has celeherated its

crntcnkry, r e d o r m e c ? ~ created In those days rlth meagre amount to

give pr!ze m r d a l h , fetching an Interest of Rs.300 only, rill

not be a b l e :c :~!!:1 1:s objec:ives nor. b m i n ~ m u m o f Rs.1000

r : i ; be rrq,:red :or preparing a gold ~ l a t e d medal at present.

:! :he :nivers!:y 1 6 :o actleve :his, lt sbould be

managed c f ! i r lent l y . Endoroent fznd management is an area tbat

prrmeaannc 3! :he wort s~gniflcrnt opportunities for trustees to

~ t r l r r t business rcumen ;n maklng con:ribu:lons to managing the 2

!rnanclal efforts of the institutions.

Soacrlmes the investment managers take risk and act

against rules quite aside from legalities, the example of a

col leg. .hi ch ha6 been a ble to increase the proportion of

1. #,H.Krrol And S.G.Clnsburg, *.%, p . 6 3 .

o w r a t i n g budget funded by endowment, 11 per cent to 20 per cent 1

is compellingly attractive to the concerned trustee but, in

Indian Context such attempts would be hazardous.

Invortnnt pattern in PU

An analysls of the Investment of endowment funds of PO

showed that in certain endowmenrs there was minus balance of

interests and the normal interest rates varied from 10 to 12 per

cent by long term fixed deposits In natlonalised banks in 1990-91.

Strltsgy to increase interest income

Ilth a vier to increase tt,e interest lncome, a par: o f

:>c pr:nclprl sly 2 3rds c0u.P be Invested In the rraditlonal

l a n u term deposits so that annual interest could be used for

$ce,al e;pendlCure and the other one third of the principal from

e % c 31 : h ~ endowments could be in.~esrcd In Indira Yikas Patra

or Kissan Vlk.5 Patrae which will double tbe principal in 5 112

p o t r n time or any other modern government securities or deposits

:n ortlonr~lsed banks. Tbis ~ 1 1 1 fetch a higher rate of interest

r s comparrd to the trrdltional investment and these certificates

are all government securittrs. In the case of Indira Vikas

Patrar wblcb are transferable, special steps for its safe custody

can be made.

uulttplier eifoct

tor oxample, la PU the total endowment was about Rs.12

lakhr la 1980-81. 11 l sum of Rs. 8 lakbs are invested to give

1. n.8. gap01 8.6. Ginsburg, a. G., P.68.

10 to 12 per cent laterent the balance of RE. 4 lakhs could be

inverted la multiplying Government Securities . In 5 1 / 2 gears

it will become R8.8 lakhs and by 11 year8 it will become Rr.16

lakhr and in 16 112 years it rill become Rs. 3 2 lakhs, which

could serve as a cushion for emergency, as well a s t o meet

inflation in expenditure on fulfilling the objectives of

andowmcntr.

In order to maximise the benefit of investments, M.L.Sobti 1

suggest ad

A ? the end of eacb week or such other intervals as any be prescr~bed, the balances standing to :he credit of the different Bank Accounts shall be called lor by the casb section of Finance and Accounts 3cpar:menr and :he information received shall be passed on to the respective sectlons ln- c b r g e 3 1 :he maintenance of books of accounts. f l c 6ec:;ons shall revle+ the balances as apptarlng :n their books of accounts, in the llght c: 1n:arnntion recelved fro= tbe bank and s u b ~ l t

opssrls to :he Investment Lnit, for investment E! sarp!-s i-nos. :t any, or for reallsarion of the lnvestaents already made having regard to the ;wedlate and f-tilre commltments.

r e ~ r l y analysis of iznds position map be better but

xnlerr huge actumu1a:lon r s crea:ed, a monthly routxne t o invest

money could improve the interest income.

lavertments could be short tenlcall type, and long

tern investments lctcbing better Interest. In addition, there

are multiplier rcbeaes like Indira Vikas. Thus, i f a Fund F" is

available, it would be possible to find out a rational proportion

by sciantiflc approach for a11 these types o f investment. If $6'

is the portion for short term investment, ' 1' is for long term

and 'm' is tor multiplier scheme, then the fund available could

be distributed as SF + 1F + mF or(6 + 1 + m)F where 6 + 1 + m =1.

In the case of endowment funds principal par: of

endowment need not be put in short/call investments because the

lnterest accrued and kept as cash balance may be put on shorr

corm investments depending upon the date on which the expenditure

i s to be Incurred. Then the principal part of Endowment Fund E

can be divided. as lnoicated earlier as 2/3 E +1/3 E where 1 =

2 3 3nd m 113 . The quantum of 1 and m can be decided basea

3n actual need for a partlcs~lar endowment and ~ t s purpose. If a

;atform policy of ut!::satlon of 2 , 3 of total estimated interest

:a taken, then 1 w l i : be 213 and m can be 113. If the interest

p a r t IS a l s o inclided In Endowment Fund as E tAen the

dlrtrlbutloo would be (s 1 miE. This may be, for example

, 3 . 1 0.8 + 0.3) t . lhfle u k i n g the investment policy the

dlflerenr dater of endowment programmes should be kept in mind.

Provident Fund

10 tbe case of Provident Fund the subscriber will

apply for temporary advance but r part of it will be recovered in

tbe e r n rear. Vbererr, tbe p r t f i n a l witbdraw.1 will not be

reprid into tbe funds. Employe@s who have put in more tban 10

years of servlce alone will be eligible for part final. By

8tudyins the previous two years bebarfour of withdrawal and

r m u n t required for advance@ the constants a. 1, m, can be

determined. Normally, upto 50 to 9 0 per cent of the accumulation

16 permitted for withdrawal/advance. nor-a-days almost a11

employee@ like to get advance or withdrawal to the maximum. The

exact nature in ercb university can be assessed.

The probability of employees seeking advance/withdrawal

may be between 0.5 and 0.9 i.e. 50 to 90 per cent of subscribers

may like to take. So, from thls polnt of view, if 0.9 i s also the

quantum required (the maxlmum possible) then the luximun!

proportion of amount requlred for disbursement would be 0.9 X 0.9

- 3 . 8 1 or roughly i.8. Therefore, a mlnlmum of (1 - 0.8) = 0.2

or 20 per cent of lhe Provident fund accumulation can be invested

in muktipllcr schemes.

?be adsantage of F-ltlyller scheme 1s that it

o~1:tpltcs err!ler ! c?c t?ng asre inrerest but ~t can not be

-itbarawn lor emergency. I f C.f part of Provident Fund, rill not

be requlred in a year, :hen t h l s can be put in oultlplier scheme.

A r monthly rccum,iation o f subscrlprlon and repayment rill be

readily rva:lrlble, as deducrrons in the salary bill, frest

sanction of advance,~lthdrrwa! could be charged against this

receipt#, provided bank balances are availalble. Otherwise, fluid

.one). rt rbort-call will he required for payment of advances and

wltbdrrsal.

Tbe growth of receipts and p a y w n t s in respact of

Provident tundr I @ abown in Table 9.2.

(Us. in lakhs) __--------------------------------------------------------------- s;. 30. I ten 1887-88 88-89 09-90 90-91 ---------------------------------------------------------------- 1 Opening Balance ( 0 0 ) - 3.00 9.13 16.07

2 Receipts 3.75 6.52 11.88 21.76

3 Payments 0 . 7 5 0.39 4.94 10.56

i Dl fiereace 3.00 6.13 6.94 11.20

5 Closlng Balance 3.00 9.13 16.07 27.26

S,,-irce- Financial Estimates of PV

I t Lr found from tbe ann'~11 accounts tbat out of the

::,ring balance of Rs.21.26 lakhs In 1990-91. Rs. 19.80 lakhs

* e r r deposited la sborr term lnvestmrnts yielding interest at tbe

rn:c of 1 1 por cent (Rs.10 lakhsr and 12 per cent (Rs.9.80

i r k b s ) . The total receipts of Provident Funds including OB in

:l?i%-B1 were ls.37.81 lakbs. As per tbe princlpie eXplainOd in

?ha last paragraph, O.ax(37.81) Rs.7.52 lakbs i.e. A minimum

o f 7.5 lakba can bo depos1t.d in mu~tiplter scbew.

Tbere la yet raotber map of determining tbe multiplier

frctor m. According to tbe Table 9.2. tbe difference betmeen

'eceiptr rod p.yratr war R1.11.20 lakhs. Seein& tbe difference

tread over y.rr8, curnot yearm receipts will be adequate to m t

'be M y m n t 8 and definitely a balance of 88.11.10 labs will be

availablr for invertnnt, without a need to withdraw the r a m .

So 11.2 lakhr can be deposited in multiplier s c h e w which works

out to k 11.2137.81 part8 0.286 or nearlr 0.3. In 11 gears,

Rs.11 lakhm rill become h.44 lakhr without any efforts.

87 taking into considerrtion, botb methods o f arriving

at a the irctor Of investment on multiplier scbem? can be

decided betmeen 0.2 to 0.3 parts of funds and the rest mag be

shared batreen ready casb/bank deposit plus long term deposits of

traditlonrl nature which could be withdrawn in ca6e of emergency,

lortgelng bsnafltr. 1t can also be completely put lo short terr

deposits of diflerent spells worklag out the relative advantages.

Thus, in tbe investwnr pattern, the values u g be.6 = 0.3, 1 =

0.3 and r 0.3 or s - 0.6, 1 - 0 and r - 0.3 leaving r margln of

. t part ar rerdy c r a b ar on depn6l:s of 91 day /46 days. The

n n r t y s l n SG made clearly tstrb~ishP6 :he hyporhesis H 8: There is

t-:3pe : O I ~ P I O Y C interest income b) bc::er :nvest.tnt policies.

Continued eftorts

la the care 01 endowrcnt funds and other surplus fuads

!ikc Provldrn: Fund, there should be continued and constant vigil

t o gat maximum posrlble fnccmr by recycling the fund8 - Urlnc1p.l rod lacom. In fact if sow substanti&l fuadr are

bvallrble for invertwnr In multiplping typc, after a certain

Period t b r n could be rutficiant dcporltt against which temporary

lorn/OD can b* taken to mt m r g e n t expenues of tho University.

g m r y and C o o c l u e t o o

T b e r e l a ample rcope t o c r e a t e nem endowments and t o

r r i r e f u o d r t o r d e v e l o m n t th rough p e r i o d i c campaigns. I f a

;oheBlVe I t W s D b e ~ e I8 c r e a t e d .Dong S t a f f and f a ~ ~ l t y and

y t ~ d e n t r . i t would be p o s s i b l e t o t a p community r e s o u r c e s

~ h r o u g b ( a ) SponSOrOd r e m i n a r s , ( b ) r e n t i n g t r c i l i t i e s , ( c )

c o n s u 1 t ~ O C ~ BOrVlCe, ( d ) u t l l l s l n g t a l e n t s o f s t u d e n t s r o d

! r c u l t y and ( f ) b e n e f i t p e r f o m r n c e .

Tbe UGC's r e c e n t o r d e r . p e r m i t t i n g t h e U n l v e r s i t f e s t o

,::line u p t o Br. 50.000 from u n a s s l g n c d g r 6 n t t o m o b i l i s e

r e s o u r c e s 1s r u j o r s t e p . The i n c o w trow e n d o n e n t s h o u l d n o t

$r ~ r i l 1 s . d o r mIped out a a c b y e a r .

t b e I l a a o c e O f f i c e r r b o u l C s t u d y t h e c a s b p o s i t i o o

p r r l o d l c r l l y r o d t a k e d e c l r i o o r b a s e d on u r k e t m r l y # i r , to

3pt lmise t b e i ~ c o i n r r l a t e r m t . i f r p o r t i o n of t h e total

c n d o n e n t t u o d , 8.1 113 is i n v e r t e d on m u l t i p l i e r rcbeme l i k e

lndlrr T t k a r P a t r r mblch doubl.8 t b e iove8tmoot l a 5 112

years. i t d.0 l a c r r u l o c a w . A part of t b e GP? fund8 c o u l d

r l r o b. i o r n t . 4 18 mch m u l t i p l i e r r c b m w r by u s i n g the f o r m u l a

rr*l*.) ? f o r d i r t r i b o t i o o ot f u n d s f o r t O v 0 8 t n n t . In .bort,

:bere ir m p l e roop. to i m p r a v e t b e i o t m n r t laoooa o f

" i v @ r r l t i o r by iclsomtln ud t i m e l y 8trat . l l t . r .