IL&FS Fiasco – Is it the tip of the NPA Iceberg ?

IL&FS Fiasco – Is it the tip of the NPA Iceberg ?

https://www.youtube.com/watch?v=buqyCbvNNTQ&t=2s An IIM Ahmedabad Alumnus as  Chairperson and Managing Director, London School of Economics masters degree holder as vice chairman, Senior level executives of reputed international investment companies, a no. of Chartered Accountants and many more with over 30 years of experience and having served in reputed organisations in India and across the Globe- Do the above people seem overqualified? Well, to give you the fact here the above was the board of IL&FS which recently defaulted on their commercial papers, bonds, inter corporate deposits, non-convertible debentures and do you know that these were rated as extremely safe investments by the credit rating agencies? Such an exquisite infrastructure and financing company, with over 169 subsidiaries which had undertaken major infrastructural projects in India now has only $27Million in hand and repayment obligation of $500Million over the next six months ! Are you still sitting there in shock and not able to get what exactly happened here? Then don’t worry because we have got you covered...
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The Great Bitcoin Crash of 2018 – a temporary thing or end of the crypto era?

The Great Bitcoin Crash of 2018 – a temporary thing or end of the crypto era?

https://www.youtube.com/watch?v=uxeBJpfr7AM&t=4s BitCoin- the digital currency that took the world by storm last year for its enormous return (more than 100% return in matter of days or even an hour) took a big hit last week.  After reaching an all time high of $ 19,783.06 in December 2017, it was trading at just $6400 a piece last week. So how did the most promising digital currency fail ? Is it the next too big to fail digital asset? Does it’s failure affect world economy? Read on to find out more! Reasons for the crash   Income Tax Return - The IRS (Internal Revenue Service) in 2014 made an announcement, making cryptocurrency a property or a digital asset rather than a digital currency, which makes it taxable. Hence, all the gains that were made with Bitcoin are taxable. Moreover, BitCoin received through mining is also taxable as an ordinary source of  income, based on “fair market value” at the date that BitCoin was mined. So, how does...
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The Rupee Depreciation – Can such a crisis occur again?

The Rupee Depreciation – Can such a crisis occur again?

https://www.youtube.com/watch?v=xtRVjm1Lik8 The Indian Rupee hit an all time low of Rs.70/Dollar this week. How does it affect us and the Indian economy? What caused such a downfall? Read on to find out more! Prime Causes of the Downfall The US-Turkey Trade Tensions- Turkey had arrested a USA officials on terrorism charges and refused to release him. The USA in turn, doubled the import duty on steel and aluminium imports from Turkey in order to impose pressure in Turkey.But, the Turkish President declared that the country would boycott American Goods. This, in turn lead to the devaluation of the Turkish Lira, which affected the Economies of various emerging countries, especially India. Non-Deliverable Forward- It is an over the counter derivative contract, with the currency as the underlying assets and is settled in US Dollars. The offshore NDF overseas market doesn’t come under the purview of the RBI. As the Turkish crisis worsened, speculators and arbitrageurs seized the opportunity to buy cheaper dollars in India through the NDF...
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Draft e-commerce Policy

Draft e-commerce Policy

Commerce Minister Suresh Prabhu had released the draft e-commerce policy last week, here is an analysis of what to expect ahead ! What does the policy want ? The Draft wants a regulator for e-commerce to be established. 49% FDI to be allowed in the inventory based model. In fact, the policy also recommends the storage of data in India, as was also proposed in the Personal Data Protection Bill 2018, and discussed in deep in our previous article.  In addition, it also proposes certain restrictions on the amount of goods which can be purchased and the amount of discounts offered. This can affect the business model of a company like Amazon, which heavily relies upon such discounts, acquires customers and forces other local players out of competition(such as Snapdeal). What is the difference between Industry and Marketplace Model for e-commerce ? Under the Industry model, the website sells the products directly to the customers, without involving any sellers in between, thereby...
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The Data Protection Law – Right to Privacy

The Data Protection Law – Right to Privacy

The 10 member data protection committee, headed by former supreme court judge, B.N. Srikrishna, submitted its Personal Data Protection Bill, 2018 to law and IT minister Ravi Shankar Prasad, on 27 July 2018, in what could be best known as a monumental step in ensuring the privacy and protection of Data in the country.It all began with the Supreme Court declaring the Right to Privacy as a fundamental right in the constitution and directing the government to form a committee to take measures and ensure protection of the data of citizens in 2017. The report seeks to protect the Data of the citizens of the country by providing them with full control over who can use their date, why is it needed and how will it be processed. Why do we need to worry about our data? In this era of Machine Learning and Big Data Analysis, Data is like gold these days and it can be misused to a large extent,...
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Fortis Buyout -Deal or No Deal ?

Fortis Buyout -Deal or No Deal ?

Fortis Buyout Deal Fortis Healthcare, the second largest hospital chain in India had received an offer of acquisition and would now be possibly acquired by IHH Healthcare Berhad, a Malaysian-Singaporean private healthcare group. How did it all Begin? There are ongoing multiple probes by SEBI and Serious Fraud Investigation Officer against Fortis Promoters Malvinder and Shivinder Singh. Their stake in Fortis has subsequently been reduced to less than 1%, as their shares were pledged and subsequently sold by lenders. Hence, the company wants to do away with them. They had also been fined $390 Million by the Singapore Arbitration Court for allegedly suppressing and misrepresenting facts on sale of their firm Ranbaxy Laboratories to Daiichi Sankyo about 8 Years Ago. The Company is in truly bad shape with the their reputation taking a plunge.Currently over 80% of Fortis is held by the public and few institutional investors, like Yes Bank and Blackrock. Stage 1 TPG, a private equity firm, along with Manipal Healthcare had formed...
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What is Soft Bank’s Vision Fund ?

What is Soft Bank’s Vision Fund ?

  Softbank is a multinational conglomerate headquartered in Tokyo, Japan. It is one of the most successful and established investing companies in the world and its 'Vision Fund' holds stakes in companies such as Alibaba, Sprint, Ola, Yahoo Japan etc. Founded by Masayoshi Son in 1981 who is the current CEO and Chairman of the Company. Soft Bank launched the Vision Fund in January 2017. Rajeev Mishra is the CEO of the $93 Billion Fund. He is an IIT Delhi, University of Pennsylvania and MIT Sloan School of Business Alumnus. He receives an annual compensation of $11.3 Million(Cash+Stock). As of this Year, they had utilized almost 40% of their fund. In what type of companies would they invest in? The vision of the fund is to invest in technological companies with the prime aim on the management and leadership of the company, which they consider as the pre-requisites for the success of any company. They are targeting companies which are not in their early stages but...
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Trade Wars, Who is Killing Whom !

Trade Wars, Who is Killing Whom !

In time of peace prepare for the war, were the words said by a wise Legatus ineverbooming Rome. And can be implied in this ever-booming economies around the world. So the question here’Is USA the Rome’ and economic tariff the new weapon of this war.    So, What are Economic Tariffs? Economic Tariffs are the restrictions which are imposed by one country on the import of goods and services from another country in the form of increased duties, taxes in order to discourage them and increase the production of such a product in their own country. It is usually placed on imports. Recently, in the month of June 2018, USA had imposed tariffs of 25% on imports on over 1000 products worth $50Billion from China to the USA. China fought back with a tariff on goods worth $50 billion of imports from the USA to China.The USA, the largest economy in the world couldn’t be moved by the whims and fancies of the Chinese and...
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