While the nation adjusts to the new normal arising out of the historic demonetization and debates its merit/demerit, it also has another important fall-out. The move can lead to huge bonanza for government in the form of sharp increase in the transfer from RBI. This would be equivalent to the amount of Rs 500 and Rs 1,000 notes that does not come up for replacement. Let’s see how..
The demonetisation and Mistry’s exit from Tata have taken the sheen out of all other recent news, one of which is the slapping of fine of nearly Rs 10,000 crore by the government on RIL and its partners. The fine relates to migration of gas from ONGC fields to RIL fields in K-G basin leading to … Continue reading Understanding RIL-ONGC Gas Migration Dispute.
The announcement by honourable Prime Minister to demonetise 500 and 1,000 rupee currency notes is truly unprecedented, probably beyond anything that the nation has witnessed since the imposition of emergency. While demonetisation has happened earlier too in 1978, the scale at which it is being done now is much higher. What is even more amazing … Continue reading The "Surgical Strike" on Black Money..!
Amidst the noise around Cyrus Mistry’s exit from Tata Sons is the issue of potential impairment charges, most notably in Tata Steel Europe. No doubt, Tata Steel paid a heavy price for the acquisition of Corus but how serious are his allegations and how heavy is the burden of existing European assets. A brief attempt to understand … Continue reading Impairment Charges – Case of Tata Steel Europe..
The trigger for busting of the housing bubble can be traced to increase in inventory of unsold homes with increasing construction to cash-in on the boom. The unsold inventory was up almost 40% in Sept’06 over previous year. This was accompanied by transition of loans from ‘interest only’ and teaser rates applicable for 12-24 months to higher rates … Continue reading Revisiting Subprime Crisis – Part II..
The finalisation of tax rates by the GST Council yesterday marks probably the most critical milestone towards implementation of GST. Contrary to apprehension of deadlock, decision over tax rates turned out to be relatively smooth with a pragmatic give-and-take approach adopted by both Centre and the states. The decision also paves the way for passage … Continue reading Understanding GST – Part III..
The subprime crisis continues to reverberate across the global economies even though it is eight years since it hit its peak. While the original culprit, the US, seems to have largely come out of it, rest of the world, particularly Europe and Japan, still struggle to give direction to their economies. The crisis would remain … Continue reading Revisiting Subprime Crisis – Part I..
While the hype surrounding the replacement of Cyrus Mistry as Tata Group chairman seems to have died down, the core issue continues to stare the Group, indeed, the whole of corporate India. How such a meticulously planned search for succession, a year-long grooming and the subsequent change of guard turned out to be such a … Continue reading Mistry's exit from Tata – A disastrous succession…