Reliance Industries Ltd (RIL), the largest private sector company in the country recorded revenue of over Rs 4.3 lakh crore and net profit of Rs 36,000 crore in FY18 (consolidated). The company provides an interesting case study for management discussion and analysis. While it has done extremely well in its core business, it still has … Continue reading Corporate Analysis – Reliance Industries
The decision of National Company Law Appellate Tribunal (NCLAT) earlier this month to accept the bid of Numetal and conditional acceptance of bid by ArcelorMittal for sale of Essar Steel is one of many and not yet the last of interesting twists & turns to the saga. The insolvency process, which began in June last … Continue reading The Curious Case of Essar Steel Insolvency..!
Liquidation order for Lanco Infratech by National Company Law Tribunal (NCLT) seals its fate. The company which generated revenue (consolidated) of over Rs 8,000 crore just two years back would soon cease to exist. As per the last annual report (FY17), it had over Rs 27,000 crore of order book in just one segment, not … Continue reading Lanco Infratech – Here Today, Gone Tomorrow
Jaiprakash Associates (JAL) suffered two setbacks; first with The Supreme Court denying it permission to bid for its subsidiary, Jaypee Infratech, which is undergoing insolvency proceedings. The second one came when lenders sold another of its subsidiary for failing to meet its debt obligation. While JAL was certain to lose most of its equity investment … Continue reading Jaiprakash Associates – What Went Wrong??
After Struggling for about ten years with Corus, Tata Steel finally sold off a part of the business and started exploring a JV for the rest to reduce its losses. A sad event for sure, to end the audacious attempt by Mr Ratan Tata to take Tata Steel global.Right from the beginning the going was … Continue reading Tata Steel Corus buy – What went wrong…
Honourable Supreme Court’s decision last week disallowing “Compensatory Tariff” to Tata Power and Adani Power brings back this power sector invention into limelight. The compensation had earlier been awarded to these companies by the Appellate Tribunal for Electricity (Aptel) to compensate for unforeseen increase in the cost of generation. However, this concept is unique since no other industry … Continue reading Understanding “Compensatory Tariff”..
The recent decision of the government, with the direct involvement of the Prime Minister’s Office (PMO), to crack down on shell companies brings focus on the operation of these companies. Shell companies have been in focus and subject of intense debate not just in India but globally also, especially after the leaked Panama Papers. A look … Continue reading Understanding Shell Companies…
NPAs of the banking sector, especially the public sector continue to remain high, estimated at about 12% for PSBs. While various measures have been taken to resolve the issue, none seems to have worked so far. This has led to the proposal of creating a public sector asset rehabilitation agency (PARA) by the Economic Survey, … Continue reading Resolving NPAs – Understanding Asset Rehabilitation Agency..
The confirmation by Vodafone Plc recently that it is in talks with Idea Cellular for potential merger of Vodafone India is another big churn in the Indian Telecom sector. While R-Jio’s entry was expected to disrupt the market, that the second largest player would call it quits is unanticipated and quite shocking. A look at … Continue reading Vodafone-Idea Merger Proposal – The Rationale..
Consider a situation where a foreign entity provides loan to an Indian company and receives interest which is not fixed but linked to profits. Or consider a treaty between India and country X whereby sale of shares in an Indian company held by an investor from country X shall be taxed only if the shares … Continue reading Understanding GAAR (General Anti-Avoidance Rules)..