Month: February 2019

Shares Pledging – Understanding The Risks

Sale of pledged shares of certain corporate groups by the lenders has once again brought share pledging into focus. The practice had generated lot of controversy over a decade ago during Satyam scam, leading to changes in the regulations governing it. While lender cannot be blamed for the sale, developments leading to the sale and … Continue reading Shares Pledging – Understanding The Risks
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Deciphering Core Sector Growth…

Core sectors recorded growth of just 1.5% for the month of Jan’19 as per the ministry of commerce data released today. While growth has come down sharply from a peak of 7.8% in June’18, it is more a result of base effect than any decline in activity. Average growth for the first ten months of … Continue reading Deciphering Core Sector Growth…
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Weekly Round Up – Week 8

Major events of the week were Changes in rules governing Oil & Gas exploration, fund infusion by the government in Public sector banks and Relaxation in Angel Tax in economy and policy space. Reliance ADAG group companies and Jet Airways remain in the news in Corporate space, albeit, for all the wrong reasons.  Continue reading Weekly Round Up – Week 8

Towards Efficient Electricity Market (Part III)

After the creation of single market for manufacturing and services through GST, for agriculture through E-NAM (still, work-in-progress), it is the turn of electricity market. CERC (Central Electricity Regulatory Commission) released a draft proposal last month whereby buyers and sellers would move from current bilateral Power Purchase Agreement (PPA) to a single electronic platform. The … Continue reading Towards Efficient Electricity Market (Part III)
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Solar Power In India – An Overview

Solar power in India received a setback with the cancellation of a tender for installation of up to 5,000 mw of solar power plant recently. Lack of interest in the tender is being attributed to inadequate financial incentive and sharp drop in price being quoted which do not appear sustainable. While, this may mean some … Continue reading Solar Power In India – An Overview
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Bank Analysis – State Bank of India (Part II)

The third group of bank’s operations is international banking with global balance sheet of over Rs 4 lakh crore and net profit of Rs 1,400 crore. While the profitability looks low, it is not unique to the bank. International banking operates on rather thin margins, that being one of the reasons for global financial crisis … Continue reading Bank Analysis – State Bank of India (Part II)
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Reliance Communications – Analyzing The Failure..

Reliance Communications’ plea to NCLT (National Company Law Tribunal) to proceed with insolvency process marks the demise of another telecom company. The insolvency plea was filed against RCom by Ericson, an operational creditor, in May’18 which has also filed some more cases against the company and its chairman. While the company cannot be blamed for … Continue reading Reliance Communications – Analyzing The Failure..
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Budget – Revenue & Expenditure Analysis (Part II)

Against total receipt of Rs 20.8 lakh crore, government is projected to spend nearly Rs 27.8 lakh crore in FY20. Other than interest payments, broad areas which account for maximum expenditure are Defence, Subsidies and rural & agriculture sector. These three heads, together, account for almost Rs 9 lakh crore or one-third of government’s total budget. Here is a look at the details of various government expenses. Continue reading Budget – Revenue & Expenditure Analysis (Part II)