Turkish Lira hit a new low against the Euro and the Dollar in the first week of August 2020. Well, it went unnoticed therefore I thought of spending time on why Lira became violent and does Indian rupee have any symptom to cause havoc in the capital markets. Indian Forex Reserves: Well, India has exposure to dollar-denominated debt (external debt) but we are better placed among emerging nations. Our USD denominated debt (US dollar loan) stands at 558 billion dollars while our foreign exchange reserves are whooping 534 billion dollars as of 31st July 2020. Therefore our Foreign Exchange Reserve ..read more

The Cash Flow Statement is a detailed statement of changes in cash and cash equivalents during the year. The cash flow statement is divided into three parts: Cash Flow from Operating Activities Cash Flow from Investing Activities Cash Flow from Financing Activities Cash Flow from Investing Activities  Cash flow from Investing activities highlights the usage of the capital of business in terms of capex done, investment in securities etc. Cash Flow from Investing Activities is an indicator of how businesses employ their cash. The cash could be employed by investing in assets such as new p ..read more

In this interview with Bloomberg Quint, Vinayak Chatterjee from Feedback Infra suggests some bold steps to revive the struggling economy.  Lockdown / unlockdown confusion is affecting the pace of infrastructure work across the country.  Getting permissions from local labor authorities is a bit difficult. No clear guidelines across various states, so work is getting resumed in patches. Having said that, 40 to 50% of pre-covid infra work has resumed. Reality Check on Indian Infra Govt intent is serious – with respect to liquidity, funding, arbitration. But ground reality is different ..read more

Government of India proposed landmark reforms in the essential commodities act & APMC act. These changes are going to be a game changer for Indian farming, procurement, supply chain networks. In this interview given to Print, Ashok Gulati, renowned agri policy expert explains the importance of these reforms. Here is a quick summary. Essential Commodities Act While it is a big reform, let us wait for the fine print. Government babu’s can spoil  it at the last moment. They are thinking of putting a clause wherein, if prices shoot up by 100% then they can put up a storage limit. Essenti ..read more

Optical Fibres – An Introduction Optical Fibres are long, thin strands made of glass or plastic and have diameter of that of human hair. These optical fibres are used for transmission of data using light pulses between its two ends. Optical fibres are arranged in bundles to form optical fibre cables, which are laid down across the ocean surface for transmission of data across globe. Optical Fibres consist of: Core: It is the inner part of the optical fibre carrying light. Cladding: This is the outer transparent optical material which surrounds the core reflecting the light back. Coating: It ..read more

Time To Respond To Uncertain Economic Environment. Re-shuffle & Build A Defensive Portfolio. Recent rally in the markets has surprised everyone. Speculation is ripe & there are clear signs of bubble building up in certain pockets of the market. Especially the most fancied names on the street.  Apart from the optimism surrounding corona virus vaccines & reducing death rates, present bullishness amongst investors is based on two major assumptions –  Business will get back to normal within 12 months as we start unlock down process & jobs will be restored to levels that ..read more

The cash flow statement explains the flow of cash and cash equivalent during the year. The importance of the cash flow statement cannot be emphasized enough. The cash flow statement not only depicts the cash generating muscle of the business but also paints a picture about the sources of cash raised to run the business and the investments that generate cash during the year. It is a detailed statement containing the inflows and outflows of cash in a business under different categories as mentioned below. The cash flow statement comprises of three segments namely, Cash flow from operating activ ..read more

In the past, chain Mergers and acquisitions (M&A) of commercial companies were performed to avoid proper fulfilment of obligations relating to liquidation or bankruptcy of these companies. The reason why there are huge number of failed M&A. Merger: A merger refers to a situation where two companies, due to several reasons, mutually agree and become a single company. Acquisition: It is a situation when one company buys a majority or all the assets and shares of another company. If the company obtains more than 50% ownership of another company, then also it is considered as an acquisitio ..read more

Rubber Chemicals are chemicals used in the manufacturing of different rubber products, and help in enhancing strength, durability and elasticity of the rubber. Rubber Chemicals are basically used by manufacturers who convert Natural/Synthetic Rubber into finished products such as Tyres, and non-Tyre industries like Hoses, Footwear, Moulded Components for vehicles, Industrial Belts, Gloves, etc. Types of Rubber Chemicals: Rubber Chemicals are divided into different types based on product segments like anti-degradants, flame retardants, accelerators, processing aid/promoters, and others. Anti-De ..read more

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