The decision by two of the top audit firms not to take non-audit work for their audit clients, is the culmination of regulatory efforts to improve the standard of corporate governance. However, the immediate trigger is a discussion paper, floated by MCA (Ministry of Corporate Affairs), which proposes a variety of measures to make audit procedures more independent. Here is a look at the issues raised and proposals suggested by the paper. Continue reading Towards Better Corporate Governance – Strengthening Audit Framework
Covid-19 is having an unprecedented impact on financials of corporate sector putting a serious question mark on survival of many of them. Other than the cash required to pay salaries etc, companies need to generate sufficient cash to pay interest and loan installments. As per Kamath Panel report, as much as Rs 37.7 lakh crore … Continue reading Corporate Debt Restructuring – Understanding the Issues Involved
Covid-19 pandemic has further added to the woes of corporate and financial sector, already reeling under the impact of subdued economic conditions, NPAs overhang, NFBC crisis etc. Yet, the sectors have shown considerable degree of resilience so far, aided by regulatory and government efforts. However, the real credit for the same goes to their efforts … Continue reading Corporate & Financial Sector – Changing Dynamics.
Reliance Industries Ltd (RIL) has been dominating the news headlines with big ticket stake sales, right issue and so on. The company has raised close to Rs 80,000 crore from sale of stake to five different investors in addition to Rs 50,000 crore through its rights issue. The company had been doing very well in … Continue reading Corporate Analysis – Reliance Industries Ltd (RIL)
Sale of 9.99% stake in Jio Platforms to Facebook is a masterstroke by RIL to monetize its investments and efforts of years. While RIL has a lot to gain from the deal, Facebook’s rationale for the same doesn’t look very clear except the fact that it has lot of surplus funds to deploy. If it … Continue reading RIL – FB Deal Analysis
The face of Corporate India has changed dramatically in the last 30 years since the economic liberalization began. Liberalization exposed the then established firms to competition, changing corporate mindset of taking markets for granted. Failure to adept to these changes led to what the Economic Survey has called ‘creative destruction’. Here is a look at … Continue reading Corporate India – The ‘Creative Destruction’ since Liberalization.
The suspension of the board of Yes Bank and appointment of an administrator was almost like a bolt from the blue; but in retrospect, had been coming for quite some time now. The bank had seen a series of defaults in its advances and was unable to raise funds to make up for this. Here … Continue reading Yes Bank – Diagnosis of A Failure
The AGR (Adjusted Gross Revenue) woes has come back to haunt the telecom companies with the Supreme Court refusing to grant any relief to the companies. While Airtel appears reasonably well placed, things looks quite tough for Vodafone Idea. Here is a look at the company, its financials and why things could be tough for … Continue reading Vodafone Idea – Braving the AGR Crisis…
NTPC Ltd (formerly, National Thermal Corporation Ltd) is a low-profile public sector company meeting over 20% of country’s electricity needs. The company has recorded core sales growth of 7.9% CAGR over last ten years and growth in sale of electricity at 2.8%. This is much like the steady-state growth recorded by utility companies in the … Continue reading Corporate Analysis – NTPC Ltd
After a long, gruelling insolvency process extending over 2½ years, ArcelorMittal, along with its JV partner, Nippon Steel, has gained management control of Essar Steel. The takeover also marks the entry of the company, promoted by Indian born, Mr Lakshmi Mittal, into India after failing in its organic attempts over a decade ago. Here is … Continue reading Corporate Analysis – ArcelorMittal Steel.