financial shenanigans

Financial Shenanigans : How To Detect Financial Reporting Tricks - Part 2

Investors rely on the information that they receive from corporate executives to make informed and rational securities selection decisions. This information is assumed to be accurate, whether the news is good or bad. While most corporate executives respect investors and their needs, some dishonest ones hurt investors by misrepresenting the actual company performance and manipulating the company’s declared earnings. Part 2 fleshes out the Earnings Manipulation (EM) Shenanigans which inflate current period earnings and suggests how skeptical investors can ferret out these tricks to avoid losses.
financial shenanigans

Financial Shenanigans : How To Detect Financial Reporting Tricks - Part 1

Enron’s revenue went up more than 10 times in just 5 years from $9bn to $100bn whereas, its net profit was hardly doubled (in 2000 vs. 1995). Clearly something was wrong as it took Walmart - 10 years to go from a revenue of $10bn to $100bn, 31 years to General Motors, 27 years for Ford and 17 Years for ExxonMobil but Enron did it in just 5 years. It was the largest corporate bankruptcy in U.S. history (until WorldCom declared bankruptcy seven years later followed by Lehman Brothers in 2008).
edible oil india

Edible Oil Industry Of India – A Brief Overview

Oil Seed crops are second most determinant category of crops for our agricultural economy, post cereals. The self-sufficiency in oilseeds attained through “Yellow Revolution” during early 1990’s, could not be sustained beyond a short period. Oilseed production is quite concentrated in some states in India. Madhya Pradesh accounts for 27% of the production and top 4 states account for ~80% of the production. Palm oil forms a major share of the edible oil consumed by Indians, with second most consumed oil being Soyabean Oil. Together both sum up to ~65 % to 75 % of our consumption.

Indian Defence - Brief Overview On Capital Expenditure & Spending Patterns

India has the third largest military in the world and is the sixth largest spender in defence. In the below write-up, I have tried to put forward basic facts about Indian Defence Sector and how it has evolved over with time. Before I begin with the write-up, I will explain few terms which might be new for some readers: BE – Budget Estimates. When the Union budget is presented in Parliament and passed for the financial year, it’s called the Budget estimates (BE). RE – Revised Estimates. Estimates done in the middle of the ongoing year.
Coal In India

Short Notes From Brookings Report On Coal And Thermal Power In India

Currently the PLFs of the domestic coal based power plants in India are low, which implies lower profits, this has happened because India witnessed growth in supply of power plants at an unprecedented level between 2011 and 2016, the supply of power grew at 14.5% in the period. The PLFs dropped further due to the push of the 2014 elected government to increase power generation via Renewable Energy. More power dispatches started to happen from the RE sources which displaced conventional coal based power. Currently India has ~40 GW of idle power it has no PPAs signed with the DISCOMs or it is in the IBC-NCLT. These newer plants were built mostly by the private companies which are now stuck because they don’t have PPAs or FSA (Fuel Supply Agreements) from Coal India.
REIT India

Can Real Estate Investment Trust (REITs) In India Generate Sufficient Returns For Its Investors ?

Real Estate is one of favorite asset classes for Indians to park their saving. To give a context, the average Indian household has more than 80% of its wealth in Real Estate and other physical assets. A REIT can be viewed as a closed ended mutual fund for real estate with a structure similar to mutual funds i.e. Sponsor-Manager-Trustee. A REIT is funded by its sponsors and managed by its managers with key underlying investment instrument as real estate assets.
Fertilizer Industry Landscape, Subsidy Scene & Policies

Indian Fertilizer Industry - Current Landscape, Subsidies & Government Policies

Urea production dominates the fertilizer production in the country. While India is the second largest consumer of urea, GOI is working towards increasing the production of urea so as to end all urea imports in 2022. DAP is the second most used fertilizer after urea and after the recent fall in the prices of key raw material used in making DAP, India has started to manufacture DAP also which is used to import previously. GOI is also encouraging the use of SSP which is considered a substitute of DAP, which we largely import and is costlier vis-à-vis to SSP.

VSAT In India - Can It Break Out From The Regulatory Cobwebs

VSAT Stands for Very Small Aperture Terminal. VSATs are hardware’s devices used by business and home users. Usage of VSAT requires a box that interfaces between the user’s computer and the antenna outside, the antenna outside has a Trans receiver. The Trans receiver receives or sends a signal to the satellite transponder in the sky.
Cloud Computing

Technology - Understanding Cloud & Its Ancillary Businesses

The term cloud has now become synonymous with Internet. On similar grounds, Cloud Computing is the idea of utilizing resources spread over a network to achieve a collective goal. The vertical has evolved over time and created three major buckets under which a company falls. Typically, the grouping depends on the type of service provided by the firm. These are also known as delivery models of cloud computing.