Everyone going after Vijay Mallya

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Chirag Patil, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur

_________________________________________________________________

Today we see everyone is running after Mallya for the bad debts. Once the focus is on you, strange things start coming out. Following was reported in the news, “Vijay Mallya convicted in cheque-bounce case”.A local court today convicted industrialist Vijay Mallya in a cheque-bounce case filed against him by GMR Hyderabad International Airport Ltd. The court, however, did not pronounce the quantum of punishment as the Rajya Sabha MP, who left the country last month, was not present in the court, Mallya’s lawyer H Sudhakar Rao said.The quantum of punishment is expected to be pronounced on May 5 by the court, GMR lawyer Ashok Reddy said. “Two cases pertaining to cheque-bounce were going on against Kingfisher Airlines in the court and the matter was posted for arguments. After the arguments today, the court convicted Mallaya, Kingfisher and a senior official of the airline under section 138 of Negotiable Instruments Act.”Because Vijay Mallya was not here, the sentence has not been pronounced…only conviction has been recorded. Since no accused have appeared before the court, only conviction has been recorded.” Sudhakar Rao told PTI.

It doesn’t end here, more stories started coming out. Liquor baron  Vijay Mallya may be a billionaire, but he did not hesitate to claim amounts as little as Rs 20,000 as perks to which he was entitled to as a Rajya Sabha MP, a reply to an  RTI query has revealed. In response to a Right to Information query by a Bareilly-based activist Mohammad Khalid Jeelani, the Rajya Sabha secretariat disclosed that the liquor baron — convicted in a dud cheque case and facing a non-bailable warrant for defaulting on bank loans of around 9,000 crore — regularly pocketed Rs 50,000 per month as a parliamentarian’s salary as well as other perks like constituency allowance and telephone reimbursements.Jeelani said that he was “shocked by the findings as Mallya was known for his flamboyant lifestyle — ‘living life kingsize'”. The reply also revealed that while Mallya had not availed of any airfare reimbursements, he happily availed of all other perks and emoluments as member of the upper house of parliament.

Advertisements

Some relief for Indian banks

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Chirag Patil, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur

_________________________________________________________________

In view of mounting bad loans eating into banks’ profits, RBI has allowed them to exclude from provisioning stressed loans of certain companies in the fourth quarter numbers.
This will help ease burden on banks to some extent and support their bottomline.
About two dozen companies which have been trying to repay loans by selling their assets or some of their subsidiaries have been excluded from defaulters list.

“After reviewing accounts which were under asset quality review, RBI felt some of the accounts can be standardised. They have asked banks to make them standard,” said a senior bank official from a state-run bank.

RBI has communicated about the exclusion to banks, sources said, adding that some of the companies falling under the category include Jaiprakash Associates Ltd.

About 150 entities including Jaiprakash Associates were classified as non-performing assets during the last quarter after the Reserve Bank of India’s stringent asset quality review (AQR) came into effect.

Following that, each bank was asked to make additional provisions as part of the third or fourth quarter results.
AQR undertaken by the RBI last December has resulted in a spike in bad assets with lenders recognising over Rs 1 lakh crore of bad assets in the December quarter alone.

The gross Non Performing Assets (NPAs) of public sector banks (PSBs) increased from 5.43 per cent as on March 2015 to 7.30 per cent as on December 2015. Gross NPAs of PSBs increased from Rs 2,67,065 lakh crore in March to Rs 3,61,731 lakh crore in December.

The mounting bad loans eroded the profitability of all banks with 11 public sector lenders reporting losses of Rs 12,867 crore in the third quarter.

For example, Bank of Baroda reported a whopping loss of Rs 3,342 crore, the highest ever quarterly loss posted by any public sector bank in the industry. IDBI Bank recorded a loss of Rs 2,184 crore while Bank of India posted a loss Rs 1,505 crore for the quarter ended December.

Hunting for news in Indian News

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Chirag Patil, MBA 2015-17, Vinod Gupta School of Management, IIT Kharagpur

_________________________________________________________________

On 16th April 2016, India’s leading english newspaper reported blatant wastage of water in water scare state. Even as Latur and the entire Marathwada region are reeling under a severe drought, 10,0000 litres of water were wasted there on Friday to create a makeshift helipad for the arrival of relief and rehabilitation minister Eknath Khadse to the district. The waste of water attracted considerable criticism from activists as well as the opposition.

Khadse, who was in Latur to receive the third water train from Miraj, travelled from there to Belkund, which is only 40 minutes away from Latur city by road, to inaugurate a water supply project. However, instead of taking the road, he took the helicopter, for whose landing a temporary helipad had been built by using 10,000 litres of water.

At first, I couldn’t believe it. Naturally I was slightly angry and fell into the trap of believing what is reported in papers. Then I started digging for answers, turns out, the water used for Helipad was waste from filtration plant which can’t be recycled for normal use! What was the hurry to publish without checking the facts? I wonder, is the media’s credibility a myth?

Start building your factory in 15 days!

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Chirag Patil​​, MBA 2015-17​​,​ ​Vinod Gupta School of Management, IIT Kharagpur​

____________________________________________________________

Special economic zones are not new to this country. But for the first time Tata group has entered into this space. Continuing its relationship with Odisha, Tata plans to invest Rs. 2000 cr in the state. For Make in India to succeed, we need SEZs to succeed. One of the major concerns of foreign investor is the land acquisition. With such initiatives and promises of clearing the red tape in 15 days, many investors such as UK-based Meggitt are extremely happy.

The effectiveness of SEZs is heavily debated for last 40 years. While they were hugely successful in Singapore, Hong Kong etc, they have failed miserably in Egypt, Tunisia etc. India draws its inspiration from China, where SEZs have been fundamental in the country’s economic growth story. India has around 45% uncultivable land, which gives a reason for the government to push for SEZs. SEZs are permitted to specialize in a particular industry or house multiple industries. Under the SEZ Act of 2005, it can be set up by the central or state government, the private sector or a joint collaboration between the two.

Mahindra World City, located in Tamil Nadu, is the India’s first operational SEZ. It is a multi sector SEZ that caters to IT, Auto and Apparel sectors. Before the Act, establishing a 100% subsidiary in India took couple of trips to Delhi and at least 9 months, but with The World City coming into the picture, it took barely 2 months of time. With its domestic rival cementing its position as the initiator of SEZs in India, can TATA be left far behind?

Who’s driving the change?

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Chirag Patil​​, MBA 2015-17​​,​ ​Vinod Gupta School of Management, IIT Kharagpur​
———————————————–

There was a time when only the old, big and rich companies having huge R&D capabilities brought about change in the world. Today is that changing?

Yesterday the Prime minister of India, Narendra Modi announced three year Tax holiday and Rs 10​,​000 ​c​rore ​f​und​s​ ​f​or Startups​ in India. Everyday we keep hearing more and more about startups in India. The perception of startups is changing drastically over the years.

Recently Siemens released a statement that they would look towards startups for innovation. Most recently a Bangalore based startup is driving the change in health sector wherein the cost of surgery was reduced to 10% with the help of 3D printing. Although such innovative startups are rare in our country, they don’t get as much media attention as the billion dollar e-commerce websites. I wonder if this trend is going to continue in the future? Would heavily funded companies which can fund huge research and development projects now look towards startups which are dependent on venture capitalist for driving the change?

Is this model sustainable in a country like India where most of the startups are e-commerce websites and not technological innovators.