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 sharp increase in funds allocation to FCI (Food Corporation of India), as projected in the recent Budget, points to a serious deficiency in its operations, indeed, entire food distribution system. Total gap in FCI’s expenditure and receipt is projected to reach Rs 2.5 lakh crore in FY21. More worryingly, there is no solution in … Continue reading Food Corporation of India – The Elephant in the Room
Automobile sector continues to be in the throes of a slowdown quite unprecedented in terms of its magnitude. While aggregate sales data for Feb’20 is not yet available, individual company data shows decline of as much as 40%. Even though part of the decline is due to impending transition to BS-VI, there are deeper reasons … Continue reading Automobile Industry – Challenges Abound…
Indian economy’s growth for the quarter ended Dec’19, as per the data released by MOSPI today, presents a complex picture. GDP growth is marginally better than initial estimates of Sept’19 quarter giving reason to believe that economy has bottomed out. However, there is a catch. Growth for previous two quarters has been adjusted upwards by as much as 0.5 percentage points, which makes this another quarter of growth decline. (What if this quarter also sees an upward revision later?). Whichever way it is approached, it is clear that economy is still in distress and recovery, if at all it has begun, would be a slow and long drawn one. Here is a look at the details of what is pulling it down. Continue reading GDP Growth – Dec’19 Performance Analysis
OECD (Organisation for Economic Co-operation and Development) is engaged in, possibly, the most complicated task in its history. And the task is – how to make the new age, digital companies pay fair share of their taxes. More importantly, how to apportion it to countries which are contributing to these company’s revenues. The OECD task … Continue reading OECD’s Challenge – Taxing Digital Giants
The visit by the US president, the fifth successive (including two visits by Barack Obama) in last twenty years contrasts with only three visits by US president during 1950-1999. Even though India is a marginal player economically, it has successfully established itself as a responsible democracy and an intellectual powerhouse, earning for itself a unique … Continue reading Indo-US Relations – Economic & Other Aspects
If the first term of NDA government was defined by the fight against parallel economy, the second term is possibly looking at simplification of tax regime as another of its objective. Two announcements related to direct taxes bear this out. First, cut in corporate tax rate announced in Nov’19 was made available only to those … Continue reading Simplification of Tax Regime – Desired or Not?
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
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…
A term being deliberated upon a great deal after this year’s budget is “extra budgetary resources (EBR)”. Essentially, it is an accounting adjustment which helps government take some of its expenses off the annual budget and thus, show a lower deficit. So, what exactly is EBR, how government gets it and how it helps. Here … Continue reading Extra Budgetary Resources (EBR) – Who Foots the Bill?