VOLUME 2 - ISSUE MARCH 2021

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The Finance and Investment Cell
Hansraj College
 MARCH 2021 VOL. 3

FROM THE CONVENOR'S DESK

Ashutosh Yadav
The Finance and Investment Cell, Hansraj College is a voluntary group of
students aiming to disseminate quintessential knowledge on finance, investment
and related aspects through the conduct of its activities throughout the year.

Since its inception in 2012, the cell has traversed a great path to grow in size,
scope and shape so as to make it more engaging for its members and community.
We've diversified ourselves from activities eponymous to the name by launching
our very own in-house mentorship and consulting wing and social wing last year.

Moving ahead a successful volume 1, in the second edition of volume 2, we hope

that we can curate the best content for all our readers so as to make it not only
informative but also interesting and relatable. We promise to be unfettered in
our efforts so as to make finance easy and simple for you. With the hope that
these pieces help you enhance your knowledge, we wish that you have a pleasant
reading experience.

The FIC Editorial Board

Vipriya Anjum Sanaah Jain Tejas Agarwal

Kunal Shroff Vivek Sigchi

FINANCIAL
FI
HIGHLIGHTS
 MARCH 2021 VOL. 3

Bitcoin crossed a record high of $60,000

continuing its rally
According to Coinbase, the digital currency has increased
by 963 percent in the last year. For the second time this
year, its value has hit $1 trillion last week.Bitcoin's rise is
fuelled in part by retail and speculative demand, as well as
increased acceptance by larger institutional investors and
firms. Tesla has purchased $1.5 billion in bitcoin and
expects to accept it as payment for its goods, a move that
has been hailed as a watershed moment in the company's
history.Mastercard also announced that it would allow
certain digital currencies to use its network. PayPal and
BNY Mellon have also made forays into the market.
Bitcoin supporters contend that the latest rally is being fuelled by institutional demand and is
unlike previous spikes, such as when bitcoin soared to nearly $20,000 in late 2017 before losing
nearly 80% of its value the following year. Others argue that bitcoin and other cryptocurrencies
have no intrinsic value and worry that bitcoin could be one of the biggest stimulus-fueled market
bubbles on record.

Goldman Sachs pledges $10 billion to support

advancement of Black women
Goldman Sachs with its new initiative
called " One Million Black Women" is
pledging $10 billion over 10 years to
advance racial equity and economic
opportunity for Black women.
It has been noted that reducing the
earnings gap for Black women could
create up to 1.7 million jobs and add as
much as $450 billion to U.S. GDP annually.
The major key concern areas will be
healthcare, job creation and education.
Goldman would also set out additional
$100 million over the next decade for
philanthropic ventures focused on
African-American women.
 MARCH 2021 VOL. 3

Citi Bank's 900 million mistake

Citi Bank which was acting as the so-called
administrative agent between Revlon and its
creditors had wired the amount to lenders to
pay off a loan that was not due until 2023. It
was supposed to make a payment of nearly $8
million or Rs 58 crore and attributed the
blunder to human error which can be called as
the Biggest Blunder in Banking History.
The worried bank then moved to the
court,seeking a full refund of the amount
accidentally sent. Some of the lenders returned
the money that they had received, barring 10
asset managers who refused to pay back. But
the District Court judge has ruled that the bank
cannot recover that amount as the transactions
were final and not subject to revocation.

Reliance Jio launches JioBusiness, a suite of tech

solutions to ‘digitally transform’ 50 million
MSMEs
Dependency JioBusiness, an integrated
technology solution, was launched with the
aim of ‘transforming 50 million micro, small,
and medium enterprises (MSMEs)'. The
solution included enterprise-grade fibre
connectivity to provide voice and data
services, digital solutions to help MSMEs
manage and compete better with large
enterprises. According to Akash Ambani, a
micro and small business spends between Rs
15,000 and Rs 20,000 per month on
connectivity, efficiency, and automation
software. He went on to say that these
solutions would be available for less than a
tenth of the price, beginning at less than Rs 1,000 per month. The services included unrestricted
fibre broadband and speech, static IP; digital solutions such as Microsoft365, Outlook Email,
JioOnline, JioMeet, and Microsoft Teams; and, finally, Reliance Digital's system-as-a-service and
special device deals under seven different tariff plans.This step will ensure that millions of micro,
small, and medium-sized businesses will thrive and contribute to the development of a NEW
ATMA-NIRBHAR DIGITAL INDIA,”
 MARCH 2021 VOL. 3

India's foreign exchange reserves standingV Oat L. 2

$580.3 billion surpasses that of Russia to become

world's 4th largest
India's Foreign Exchange Reserves surpassed
that of Russia's as the Reserve Bank of India
continued to hold high levels of United States
Dollar (USD) reserves to buffer the economy
against outflows and external economic
problems. This is a consequence of RBI policy
that, citing the 2013 Global economic
deceleration and consequent instability in the
Indian Rupee, had recommended strengthening
Foreign Exchange Reserves in these decelerating
periods to protect the economy.

The reserves were additionally strengthened by current-account surplus and rising investments
and inflows into the Indian Financial Markets.
The growth in Foreign Exchange Reserves of the two economies has slowed this year. However
Russia's reserves fell at a faster rate than that of India, making India's reserves the 4th highest in
the world.

Rs. 945 crore " Startup India Seed Fund " , to

operationalise from 1st April , to invest in 36000
Indian Startups
The Government of India has notified the
establishment of 'Startup India Seed Fund
Scheme' (SISFS) for a period of 4 years
beginning from April 1,2021 . The Rs. 945
crore corpus will grant seed funding to
3600 eligible startups through eligible
incubators across India.
The grants will vary in quantum and can
be used by startups, regardless of sector,
for conceiving, prototype development,
product trials, market entry and
commercialisation.
Announced by the Prime Minister
Narendra Modi on the 5th Anniversary of
his Startup India Initiative, the Union
Government on Thursday constituted an
advisory committee for the administration
of the fund.
 MARCH 2021 VOL. 3

Techm to buy 70% stake in Perigord for Rs.182

crore
Tech Mahindra will buy a 70% stake in Ireland-
based Perigord Asset Holdings Ltd for about Rs
182 crore with the remaining 30% shareholding
to be acquired over a four-year term. Tech
Mahindra said in a statement that the
acquisition would help it expand its expertise in
the global pharmaceutical, healthcare, and life
science industries.To allow future growth and
scalability, Tech Mahindra will also leverag perigord's expertise and offerings to expand
capabilities toward delivering productivity and automation levers across sectors such as
consumer packaged goods, medical devices, and over-the-counter products, according to the
release.
The acquisition is part of Tech Mahindra's long-term growth strategy to extend its presence in
key markets such as Ireland, Germany, the United States, and India, while also enhancing global
distribution. Future goals and aspirations of both companies to digitally transform the field of
pharmaceutical packaging services would provide long-term creative solutions to our clients
that will future-proof their needs for the next ten years.

Gautam Adani beats Jeff Bezos and Elon Musk

with biggest wealth surge
On the back of investor optimism around his
ports-to-power plants conglomerate, Indian
tycoon Gautam Adani has added more billions
to his fortune than anyone else in the world
this year.
According to the Bloomberg Billionaires Index,
Adani, a first-generation entrepreneur, has
increased his net worth from $16.2 billion in
2021 to $50 billion in 2021. As a result, he has
become the year's biggest wealth gainer,
surpassing both Jeff Bezos and Elon Musk, who
will compete for the title of world's richest
person in 2021. Except for one, all Adani group
stocks have risen by at least 50% this year. The
rise in wealth dwarfs Mukesh Ambani, Adani's
compatriot and Asia's richest male, who added
$8.1 billion. Adani has been steadily expanding
its activities adding ports, airports, data
centres and coal mines in India, while doggedly
proceeding with his controversial Carmichael
coal project in Australia.
 MARCH 2021 VOL. 3

NPAs are expected to increase in the first half of

2021, according to the FICCI-IBA.
PTI is a private company that specialises
in Bank asset quality, which improved in
the second half of 2020, is projected to
deteriorate in the first half of 2021,
according to a survey.
The results are part of FICCI-12th IBA's
round of bankers' survey, which will run
from July to December 2020. The survey
included 20 banks from the public and
private sectors and foreign banks. In this
round of the survey, half of the banks that
responded registered a decrease in non
performing assets (NPAs) in the second
half of 2020. A decline in NPA levels was
cited by 78 percent of participating state - run banks. “However, approximately 68 percent of

respondent bankers expect the NPA rate to be above 10% in the first half of 2021,” according to
the survey. NPA levels are projected to be greater than 12%, according to approximately 37% of
respondents.

Market cap of 8 of top 10 valued companies

tanks over ₹1.38 lakh crore
The 30-share BSE benchmark fell 933.84 points, or 1.83 percent, in the previous week. Eight of
the top ten most valuable companies saw their market value plummet by a total of Rs 1,38,976.88
crore, with Reliance Industries and HDFC Bank taking the biggest hits. Tata Consultancy Services
(TCS) and Hindustan Unilever Limited, both in the top ten, managed to end the week with gains in
their market valuation.
Reliance Industries' market capitalization
dropped by 35,976.08 crore to 13,19,808.41
crore. HDFC Bank's market capitalization fell
by $30,061.52 crore to $8,25,024.73 crore,
while Kotak Mahindra Bank's fell by
$20,787.22 crore to $3,62,953.84 crore. ICICI
Bank's value fell by 18,172.67 crore to
4,05,561.24 crore, while Infosys' dropped by
12,460.17 crore to 5,73,104.03 crore. The value
of State Bank of India fell by 9,013.86 crore to
3,31,192.33 crore, while HDFC's fell by 6,313.77
crore to 4,56,678.43 crore.
 MARCH 2021 VOL. 3

Bajaj Finance's market capitalization fell by 6,191.59 crore to 3,28,524.59 crore. TCS's value
increased by 2,348.9 crore to 11,33,111.91 crore, while Hindustan Unilever's increased by 25,294.91
crore to 5,43,560.03 crore. Reliance Industries was named the most valuable company in the top-
10 list, followed by TCS, HDFC Bank, Infosys, Hindustan Unilever, HDFC, ICICI Bank, Kotak
Mahindra Bank, State Bank, and Bajaj Finance Limited, in that order.

Government lifts Restriction on Private Banks to

engage in Government-Related business
On February 24, 2021, the Central Government agreed to lift the ban on
private sector banks conducting government-related banking
transactions.
Only a few private banks were historically licensed to conduct
government business, such as pension transfers, tax and other revenue
payment services, small savings schemes, and so on.
According to the Finance Ministry, the move will increase competition,
improve customer convenience, and increase quality of customer
service standards.
With the restriction removed, the Reserve Bank of India will now
authorise private sector banks, in addition to public sector banks, to
conduct government business, which includes telecommunications.

NDB to invest USD 100 million in NIIF Fund of

Funds

On February 11, 2021, the National Investment and

Infrastructure Fund-NIIF announced that the Shanghai-
based New Development Bank has agreed to invest USD 100
million in NIIF Funds of Funds- FoF. The BRICS countries
have formed a multilateral development bank. The FoF will
be able to secure USD 800 million in commitments thanks
to the NDB's investment.
NDB aims to promote private capital investments in India
with this investment in the FoF at a time when Indian
companies are looking for much-needed equity to achieve
long-term growth.
 MARCH 2021 VOL. 3

RBI's Monetary Policy Review: Repo rate

unchanged at 4%, real GDP growth projected at
10.5 percent in 2021-22
The Monetary Policy Committee of the Reserve Bank of India voted unanimously to keep the
policy repo rate at 4%. RBI Governor Shaktikanta Das announced this during a press conference
on February 5, 2021.

The bank rate and the marginal standing facility rate

stay constant at 4.25%, while the reverse repo rate
remains at 3.35%.

The RBI Governor noted that the signs of recovery have

strengthened further as there is an improvement in
capacity utilisation in the manufacturing sector to
63.3% in Q2:2020-21 from 47.3% in the previous
quarter. Consumer confidence is reviving, business
expectations of manufacturing, services and
infrastructure remain upbeat and there has been
growth at a robust pace in the movement of goods and
people and domestic trading activity.

China becomes world's leading destination for

foreign direct investment, surpasses US
In 2020, China surpassed the United States as the world's top destination for new foreign
direct investment. Following the COVID-19 pandemic. According to UN figures released on
January 24, 2021, new foreign direct investments into the United States, which had occupied
the top spot for decades, dropped by 49% in 2020. China, which had been listed second for a
long time, saw a 4% rise in foreign direct investment.
The United Nations Conference on Trade and Development
commented on this. When Covid-19 first appeared in Wuhan,
it was contained using strict lockdowns. China's fast efforts
to suppress the virus and reopen its economy helped the
country's gross domestic product expand last year, even
though most other global economies shrank.
The rise in foreign investments in China in 2020 reflects the
country's shift toward the centre of a global economy long
dominated by the United States, a shift that has accelerated
since the pandemic as China has solidified its position as the
world's factory floor and increased its share of global trade.
Although China attracted more net inflows last year, the
overall stock of foreign investment in the United States
remains much larger, representing the decades it has spent
as the most appealing location for foreign businesses seeking
to grow.
 MARCH 2021 VOL. 3

Finance Ministry releases Rs. 12,351. 5 crores for

rural local bodies
On January 27, 2021, the Union Ministry
of Finance issued Rs. 12,351.5 crores to
18 states across the country for grants
to their Rural Local Bodies. The funds
will be distributed to all three levels of
the Panchayati Raj system: village, block,
and district. This is the second
instalment of the basic grants, which
were issued in the Financial Year 2020-
2021. On the recommendation of the Panchayati Raj Ministry, the Finance Ministry released the
grant to 18 states in total who issued the utilisation certificate for the first instalment.
The Finance Ministry has issued grants to RLBs on the advice of the 15th Finance Commission in
order to boost the financial viability and create community assets of the 18 states' Rural Local
Bodies. The sum would also allow resources to be pooled through state blocks and villages. The
Rural Local Bodies (RLBs) is recommended for two forms of grants by the 15th Finance
Commission.
• Basic Grants: These funds can be used by local governments for location-specific needs other
than salaries and other forms of establishment spending.
• Tied Grants: These grants are to be used by the Rural Local Bodies for the basic services of
maintenance of Open Defecation Free Status and sanitation, rainwater harvesting and water
cycling, the supply of clean drinking water.

RBI examining the need to introduce central bank

digital currency
On January 25, 2021, the Reserve Bank of
India (RBI) announced that it is examining
whether a central bank digital currency
(CBDC) is needed in India. The apex bank
indicated that if a need for digital currency
emerges, it will explore ways to make it
operational.
The Reserve Bank of India's announcement
comes at a time when private digital
currencies, virtual currencies, and
cryptocurrencies are gaining traction
across the world.

Regulators and governments in India, on the other hand, have been wary of digital currencies and
worried about the threats they pose. The fact that the Reserve Bank of India is now considering
and reviewing the possibility of issuing its own cryptocurrency demonstrates the significance of
this field in future currency regulations.
 MARCH 2021 VOL. 3

•The RBI stated that technological advancements are rapidly changing the payments landscape,
prompting central banks around the world to consider whether they can use technology to issue
fiat money in digital form. RBI Governor Shaktikanta Das, on the other hand, is said to be opposed
to private cryptocurrencies. He reiterated that the sovereign may be the country's sole currency
issuer.

•Not just the RBI, but the government as a whole has been suspicious of private cryptocurrencies,
and there is a bill in Parliament that aims to prohibit privately owned digital currencies entirely.

Government releases 13th installment worth Rs

6000 crore to states to meet GST compensation
shortfall
The Centre released the 13th instalment of Rs
6,000 crore to states on January 15, 2021 to
cover the GST compensation shortfall.
Out of the total sum, Rs 5,516 crore has been
distributed to 23 states, while Rs 483 crore has
been distributed to the three GST Council
members: Jammu and Kashmir, Puducherry, and
Delhi. Manipur, Mizoram, Nagaland, Sikkim, and
Arunachal Pradesh are the only states that have
not experienced a revenue shortfall as a result of
GST implementation.
The key highlights are;
.The federal government has released 70% of the
projected GST payout deficit to states and
territories.
• In addition to the additional borrowing
permission of Rs 1,06,830 crore given to the
States, Rs 71,099 crore has been released to the
States and over Rs 6,900 crore has been released
to the three UTs with Legislative Assembly.

India ranks 131 in UN's Human Development

Index
According to the UNDP-United Nations Development Programme survey, India is ranked 131st out
of 189 countries in the Human Development Index 2020. The index is an indicator of a country's
fitness, living conditions, and educational attainment.
According to the 2020 Human Index Survey, Indian people had a life expectancy of 69.7 years at
birth in 2019, while Bangladeshis had a life expectancy of 72.6 years and Pakistanis had a life
expectancy of 67.3 years. Bhutan is ranked 129th, Bangladesh is 133rd, Nepal is 142nd, and
Pakistan is 154th among the countries with a medium level of human growth. Norway has the
highest Human Development Index, followed by Ireland, Switzerland, Hong Kong, and Iceland.
 MARCH 2021 VOL. 3

On a PPP-Purchasing Power Parity basis, India's

gross national income-GNP per capita dropped to
USD 6,681 in 2019 from USD 6,829 in 2018,
according to a report published by the United
Nations Development Programme.
According to the study, evidence from Colombia to
India shows that land ownership and financial
protection aid in improving women's security. It
also lowers the risk of gender-based violence and
shows how land ownership can empower women.
Indigenous children in India, Cambodia, and
Thailand have shown more malnutrition-related
issues such as wasting and stunting, according to
the study.One of the major reasons for higher
malnutrition among girls than boys as a result of
shocks likely linked to climate change in India is
different responses in parental behaviour, as well as
some type of disinvestment in the health and
education of girls.

RBI makes RTGS system available 24x7

From December 1, 2020, the Reserve Bank of
India (RBI) will make the Real-Time Gross
Settlement (RTGS) system available to
customers 24 hours a day, seven days a
week, on all days of the year. RBI Governor
Shaktikanta Das made the announcement.
Customers could previously access the Real-
Time Gross Settlement system only on
weekdays from 7 a.m. to 6 p.m., with the
exception of the second and fourth
Saturdays of each month. These dates and
times were valid until November 30, 2020.
In addition, in light of the COVID-19
pandemic, the apex bank has agreed to raise
the cap for contactless card transactions at
Point of Sale (PoS) terminals from Rs 2000
to Rs 5,000 from January 1, 2020, based on
input from stakeholders.
 MARCH 2021 VOL. 3

'Invest India’ wins UNCTAD’s Investment

Promotion Award 2020
The United Nations Conference on Trade
and Development-UNCTAD has named
Invest India the winner of the 2020 United
Nations Investment Promotion Award. The
Ministry of Commerce and Industry
announced the news. The award ceremony
took place at the UNCTAD headquarters in
Geneva on December 7, 2020. The United
Nations award awards and recognises the
remarkable accomplishments of the world's
best investment promotion organisations.

Prime Minister Narendra Modi congratulated Invest India on the achievement and said that the
award demonstrates the government's commitment to make India the world's most preferred
investment destination.

Invest India: Reasons for the achievement

UNCTAD highlighted the good practices which were followed by Invest India amid the pandemic.
These practices were:
• Social media engagement
• Exclusive Investment Forum Webinar Series
• Business Immunity Platform
• Stakeholder outreach, market restoration, and supplier outreach are all goals for COVID
response teams. These teams were formed in response to the ongoing pandemic as stated in the
media.
• At UNCTAD's high-level brainstorming sessions, it shared long-term activities and methods for
investment promotion, retention, and facilitation.

About Invest India:

It is India's national investment promotion and facilitation agency, and it serves as the first point
of contact for foreign investors in the country. It is a non-profit organisation. Invest India was
established in 2009 by the Ministry of Commerce and Industry of India's Promotion of Industry
and Internal Trade Department.

MCA orders inspection of Edelweiss Asset

Reconstruction books after whistleblower
complaint to PMO
The Ministry of company Affairs (MCA) has ordered Edelweiss Asset Reconstruction Co (EARC)
when a whistleblower wrote to the Prime Minister’s Office (PMO) and also the banking concern of
Asian nation (RBI) alleging fraud against the firm. Edelweiss ARC powerfully denied all
wrongdoing and said that it was compliant with all laws in letter and spirit. CDPQ failed to
answer mails seeking comment.
 MARCH 2021 VOL. 3

To be sure, scrutiny of books doesn't mechanically

mean a firm is guilty of violating the law. It's solely
the primary step of a method during which an
investigating officer records statements of company
officers. Supporting the findings, the ministry will
suggest that the investigation be terminated or
ironed for more examination by itself. Asset
reconstruction companies are those financial
institutions that guide banks to clean up balance
sheets by buying bad assets and then look to rebuild
those assets through a raft of measures, including
finding buyers.

Section 206 (5) of the Companies Act empowers the central government to inspect the books of a
company if “circumstances so warrant”. The MCA is tasked with framing rules on how companies
can operate in India.

TPG’S RISE FUND TO INVEST 200 MILLION

DOLLARS IN AIRTEL AFRICA MOBILE MONEY BIZ

Bharti Airtel's African arm, Airtel Africa, on Thursday announced that investment firm TPG's Rise
Fund will invest $200 million in telco's mobile money business at a valuation of $2.65 billion.
Airtel Mobile Commerce BV is presently the company for many of Airtel Africa's mobile cash
operations, and is currently meant to possess and operate the mobile cash businesses across
Airtel Africa's fourteen operational countries. The increased fund can hold a minority stake in
AMC BV upon completion of the group action, with Airtel continent continuing to carry the
remaining majority stake, the phone company aforementioned in a regulatory filing.
"The transaction is the latest step in the group's pursuit of strategic asset monetization and
investment opportunities, and it is the aim of Airtel Africa to explore the potential listing of the
mobile money business within four years," Airtel said.
Raghunath Mandava, CEO of Airtel Africa, commented that In line of their vision of enhancing
financial inclusion, Airtel Africa offers a unique digital mobile financial services platform under
the Airtel Money brand. With that day’s announcement they were pleased to welcome The Rise
Fund as an investor in our mobile money business and as a partner to help them realise the full
potential from the substantial opportunity to bank the unbanked across Africa.
 MARCH 2021 VOL. 3

PNB CARDS & SERVICES INCORPORATED TO

UNDERTAKE NON-FINANCIAL SUPPORT
SERVICES
PNB Cards & Services Ltd has been incorporated
on March sixteen by the Registrar of
Corporations to undertake the non-financial
support services associated with the bank's
mastercard operation, the bank mentioned on
Wednesday during a restrictive filing. Authorised
capital of the new subsidiary is Rs 25 crore
whereas the paid up capital is Rs 15 crore.

PNB's has issued 3.5 lakh cards with portfolio size of Rs 300 crore at the tip of March 2020. The
cards are issued on VISA & Rupay. The mastercard business contributed Rs 60 crore to Rs 14739
crore operative profit and Rs 336 crore net income in FY20, in step with PNB's annual report.

ONE TIME GAINS: NBFCs SEEK CHANGE IN

ACCOUNTING POLICY
In order to reduce volatility in quarterly
earnings, non-bank lenders have approached
the Reserve Bank of India to allow amortisation
of income from sale of loan pools over the
tenure of the loan. Since Ind-AS accounting
norms provide one-time gain on loan pools, the
mechanism ends up in abnormality in financial
gain and false illustration of a company’s
performance, the non-banking finance firms
have petitioned the tally.
“We request you to consider the change in
accounting policy because of implementation of
Ind-AS, which has serious limitations.
We request you to allow gain on direct assignment transactions to be amortised in the statement
of profit and loss over the period of loans assigned instead of recognition of the gain in the
statement of profit and loss immediately upon assignment of the loans,” the letter to RBI by NBFC
industry body Finance Industry Development Council states.
The association has conjointly requested that since the gain on loan pool sales to date got
recognised as direct profit, it inflated the companies’ internet value. These gains ought to be
allowed as unearned financial gain on appointed loans.So far, non-bank lenders have taken one-
time gain on all loan sales to banks in direct assignment transactions. Before the implementation
of Ind-AS method of accounting, these gains were amortised over the lifetime of the loan.
The loan securitization increased due to stable collections and sustained investors which crossed
Rs 26,000 crore in the third quarter of this fiscal, according to a recent Crisil report. This was
higher than the cumulative Rs 22,000 crore logged in the first half, as more originators entered
the market.
 MARCH 2021 VOL. 3

DHFL auditor Grant Thornton unveils another

fraud of Rs 1,424 crore
The company that is undergoing a company debt resolution process with the National Company
Law Tribunal (NCLT), is being passed as an associate administrator within the aftermath of IL&FS
crisis in 2018 and unearthing of huge fraud within the same.
The administrator of the corporate has appointed Grant Thornton (GT or dealing auditor) to
conduct investigation into the affairs of the corporate.

The administrator of the corporate received report from

the dealing Auditor, which are undervalued, fallacious and
advantageous in nature, DHFL aforesaid during a
restrictive filing. As per the findings of GT, the calculable
quantity concerned within the fraud places financial
impact of the involved transactions at around Rs 1424.32
crore (which includes Rs 29.94 crore towards notional loss
of interest on account of charging lower rate of interest),
aforesaid the corporate.
The concerned transactions occurred during 2017-18 and
2018-19.

Reliance Home Finance defaults on Rs 40 crore

loan repayment to Punjab & Sind Bank
Controlled by Anil-Ambani, Reliance Capital's subsidiary Reliance Home Capital defaulted on loan
repayment on February 15, 2021. The current amount of default stands at Rs 40 crore alongside an
interest of Rs 15 lakh.
The total obligation of the company being Rs 200 crore in a 5-year tenure secured term loan at
9.25 per cent per annum from Punjab & Sind Bank, RHFL said in a regulatory filing.
RHFL aforementioned the lenders of the corporate are already into AN Intercreditor Agreement
(ICA) for incoming at the debt resolution set up in accordance with RBI's prudent Framework for
Resolution of Stressed Assets.

This has resulted in delay in debt conjugation by the corporate,

RHFL added.
The total financial indebtedness, including short-term and
long-term debt, is Rs 13,126.94 crore, including interest
accrued up to February 28, 2021, it said in the filing.
The court order relates to a coercive stay obtained by the
Shapoorji Pallonji (SP) Group from the Delhi High Court against
RHFL in November 2019.Even as RHFL has got attractive bids
under the corporate resolution plan that is in final stages,
there could be barrier on a speedy resolution due to the court
order.
 MARCH 2021 VOL. 3

SBI, Paytm Payments Bank, PhonePe lead in UPI

transactions in Feb
PhonePe topped the app class on the UPI
platform in terms of volume and quantity of
transactions concerned.
According to the info penned by NPCI, SBI
recorded 656.92 million remission transactions
in February. It was followed by HDFC Bank
with 207.27 million remission transactions,
Axis Bank (164.27 million), Paytm Payments
Bank (149.32 million) and ICICI Bank (148.98
million).
Paytm Payments Bank LED the UPI beneficiary
class with 389.24 million transactions, which
implies cash was received by the account
holders through the UPI platform.

The dealing on Paytm Payments Bank platform redoubled by 5.5 per cent within the beneficiary
phase compared to previous month, the corporate aforementioned during a statement. PhonePe
was followed by Google Pay with 827.86 million dealing involving Rs 74,455.33 crore, Paytm
Payments Bank (340.71 million transactions, Rs 38,493.52 crore) and BHIM (20.44 million
transactions, Rs 6,379.91 crore).

Reserve Bank imposes Rs 2 cr penalty on SBI

Reserve Bank of India on Tuesday obligated a
penalty of Rs 2 crore on State Bank of India
for dispute of norms, as well as specific
directions to the investor on remuneration to
its staff within the variety of commission. The
penalty has been obligatory for dispute of
sections of Banking Regulation Act and its
specific directions of RBI issued to the bank
on payment of remuneration to staff within
the variety of commission The penalty has
been obligatory for dispute of sections of
Banking Regulation Act and its specific
directions of RBI issued to the bank on
payment of remuneration to staff within the
variety of commission, in line with an unleash
The action relies on deficiencies in restrictive compliance and isn't meant to pronounce upon the
validity of any dealings or agreement entered into by the bank with its customers.According to the
discharge, the statutory examination of the bank with relevance its monetary position as on March
31, 2017 and March 31, 2018 and therefore the Risk Assessment Reports (RARs) and examination of
the correspondence with the bank relating to payment of remuneration to its staff within the
variety of commission, discovered dispute of the provisions of the Act and therefore the
directions.
 MARCH 2021 VOL. 3

A show cause notice to the bank was issued, and when considering its replies, RBI came to the
conclusion that "the charges were corroborated and secured the imposition of financial penalty",
the discharge aforementioned.

Gold loan offtake slows in Q4 as price comes

down
Demand for loans against gold jewelry has
weakened, as a point fall in gold costs means
borrowers need to pledge a lot of and lenders
need to regulate the worth of the
collateral.Commercial banks and non-bank
lenders might need to outfit their policies
during this phase attributable to the autumn in
gold costs, aforementioned consultants.
Gold loans extended by the country's industrial
banks had augmented 132% last year in keeping
with the newest credit growth information
from the banking company of the Republic of
India. This helped banks grow their loan books
at a time once loans to several alternative
sectors were getting on risk aversion and
quality quality issues.
But now, the worth of the collateral against the loans has fallen, because the gold value born
from Rs 51,000 per 10 gm at the start of January to Rs 45,000 presently.
With access to simple liquidity and cheaper rates compared to NBFCs and personal financiers,
heaps of borrowers were emotional to banks for gold loans and additionally had several new
borrowers attributable to the crisis, aforementioned another banker. Moreover, what intercalary
to the comfort was the rising gold costs that intercalary worth to the collateral.
NBFCs specialising in gold loans aforementioned the impact on demand wouldn't last long, as
they expect a booming economy to spice up credit necessities. They expect their gold loan assets
under management (AUM) for the continuing quarter to probably return down by 1.5-2% thanks
to the correction in gold costs, however develop then.

Performance of unsecured loans worsening says

India Ratings
With deteriorating monetary conditions of borrowers, the performance of unsecured assets
categories, as well as microfinance loans and unsecured business loans, is worsening in keeping
with a report by Asian country Ratings and analysis. For secured plus categories it's a stable
performance outlook given the recovery within the economy in FY22.
The Reserve Bank of India's moratorium on compensation of loans has delayed the strain in these
segments wherever delinquencies haven't nonetheless stable and better loan losses square
measure expected to pass off in FY22, it said.
 MARCH 2021 VOL. 3

The agency noted that vehicle loans -- as well

as loans for business vehicles, rider vehicles
and two-wheelers -- have a stable plus
performance outlook, given the pickup in
economic activities witnessed within the last
half of FY21.
As per the report, digitization initiatives also
are expected to assist with higher portfolio
observance and in reducing soft delinquencies.
"The focus has shifted to assembling quality
secured loan portfolios, upping method
potency and automating client follow-ups".

Indian securitisation transactions predominantly involve plus categories wherever the borrowers
square measure either tiny and small enterprises/ businesses, or happiness to low and middle-
income households, it said.
The report additionally shows the severity of the impact of the pandemic on their financial gains
is likewise because the impact of the moratorium and financial measures on their credit behaviour
has been varied.
Featured
Articles
Featured
Articles
 A N A L Y S I S
By Aastha, Khushi, Mannat
(Social Wing)

Being a part of the corporate world, it is imperative for a person to understand the importance of
staying ahead of the curve. But since the business is dynamic in nature, changes outside one’s
control are constantly influencing the business and its work. If the required attention is not given
to identify and understand these external factors, one could be leaving money on the table—or
worse, endangering the business itself. The PEST analysis helps entrepreneurs discover which all
factors could impact their businesses and help in the formation of strategies to adapt to those
changes.

Originally developed in 1967 by Harvard professor Francis Aguilar, PEST analysis is a strategic
planning tool, helping organizations to identify and evaluate threats and opportunities of the
business. PEST is an acronym describing 4 primary external factors that influence the business
environment: Political, Economic, Socio-cultural, and Technological. Basically, this type of
analysis helps one determine how these factors will affect the performance and activities of the
business in the long term. It is often used in collaboration with other analytical business tools like
the SWOT analysis and Porter’s Five Forces to give a clear understanding of a situation and
related internal and external factors.

A complete evaluation of the major influencing areas that affect the sector in which an
organization is positioned, as well as the organization itself, can facilitate more effective and
efficient strategic planning. This planning can be adapted to maximize the organization’s ability to
capitalize on conditions as they exist, and to be better prepared for emerging changes, allowing
the organization to stay ahead of competitors.PEST analysis works best and in full potential when
the environmental factors are analyzed from the perspective of the business’ resources,
capabilities, and core competences.

The political aspect of PEST Analysis focuses on the aspects in which government policy and/or
changes in legislation affect the economy, the industry, and the organizations. Areas of policy that
may particularly affect an organization include tax and employment laws. The general political
climate of a nation, as well as international relations, can also immensely influence the
organization.

The economic portion of the analysis targets the key factors of interest and exchange rates,
economic growth, supply and demand, inflation and recession.
 MARCH 2021 VOL. 3

The social factors that may be included in a PEST Analysis are demographics and age distribution,
cultural attitudes, and workplace and lifestyle trends.

The technological component considers the specific role and development of technologies within
the sectors of industries and organization, as well as the wider uses, trends, and changes in
technology. Government spending on technological research is also an important factor in this
area

Even if a company has all the information required about the quality of infrastructure, the extent
of funds, and the employee talent available, it may not be fully aware of the external environment
in which it is to operate or launch a new project. It can even predict future prospects of a project
or product by studying the PEST factors. Here are some benefits that we can gain from the
findings of a PEST Analysis:
Provides an understanding of the wider business environment.
Encourages the development of strategic thinking.
Straightforward and only costs time to do.
May raise awareness of threats to a project.
Helps an organisation to anticipate future difficulties and take action to avoid or minimise
their effect.
Helps an organisation to identify and exploit opportunities to the full extent.
 MARCH 2021 VOL. 3

How does PEST Analysis work?

For carrying out the PEST analysis, one is
required to carry out research and gather data
which can vary from being 10 years old to
sometimes only a month old depending on the
requirements of the study. It works on the
principle the more information, the more
accurate would be the final results. Once the
information and database are collected,
predictions are made for the future only after
analysing the data collected.

The process involved in exploring a firm's

external macro-environment involves five main
stages: Identifying PEST factors, analyzing
possible effects on the firm, categorizing into
opportunities and threats, prioritizing factors,
and developing corrective or preemptive
strategic action.

As stated, PEST stands for Political, Economic, Social and Technological, the assessment should
be made considering these four categories of PEST. Political factors include regulations, political
parties and relevant bills, the business can check whether they are in its favour or against it.
How would they hinder the company growth etc? Similarly, the business can apply these
questions to the other components of PEST analysis and make proper business decisions, no
matter what the industry is.

After this, the firm can categorise these into threats and opportunities and take actions on them
accordingly.

This can be explained with the help of an example. In today's time, the crypto-currency industry
is booming. People are buying more Bitcoin, and with the payout on this being high, people are
looking to expand in this area. When we compare it to the past, it has been rocky, but always
there. A study and knowledge about what the trend has been in a particular industry in terms of
political, technological, economic and social factors, one can decide whether to jump into this
for the long haul or for the time being. A comparison of what a The particular industry had 10-12
years back to what it has at present, has the growth slowed down during the time or are more
companies entering can also help.

Conclusion
So all in all, apart from internal factors and resources, there exists several other macroeconomic
factors that have an intense influence on the performance of the business. These factors must be
analyzed thoroughly to determine their relation and effect on the organization's success. PEST
analysis is a marvellous tool to understand and identify the significant changes that carry the
potential to impact the businesses' performance. It offers comprehensive results when combined
with SWOT and Porter’s Five Forces. One cannot stop an occurrence but being aware of it can
save and build the business. PEST Analysis helps an organization in recognizing and capitalizing
on opportunities posed by existing conditions in the business environment. It enables one to
curate a strategic response plan for the change and use it in the most favourable way. Alone
preparation of a plan has never guaranteed success, proper execution is the key to it.
 E S T O R S 'C
V

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T HE I

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BUD

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G INV
 MARCH 2021 VOL. 3

TATA CHEMICALS LTD. PROFILE AND ANALYSIS

PROFILE

Tata Chemicals Ltd. is a Global Indian

company with interests in chemicals, crop
protection and specialty chemistry products
headquartered in Mumbai, India.

It has specialised in producing glass,

pharma, detergents, chemicals required by
bakeries & other industries with similar
interests. The two domains in which
TATACHEM works is Basic Chemistry –
Alkali, Hydrogen, Salt Products & Specialty
Chemistry – Agro, Nutritional, Material,
Energy Sciences.

Tata Chemicals Ltd., incorporated in the year 1939, is a Mid Cap company under the parent
organisation Tata Group conglomerate. It has been extending its services to various international
organisations. The company is one of the largest chemical companies in India with operations in
India, Europe, North America and Africa. Rallis India, Magadi Soda Co., Homifield International,
Grown Energy are some of its subsidiaries.

ANALYSIS

As per March 2020, it had a turnover Rs 2920.29 cr, total expenses of 2202.25 cr and a net profit
of Rs 671.82 cr.
TATACHEM has been performing at an appreciable pace since the past 3 months.
Following are some of the key insights and ratios: -

1. PE Ratio: 2.36
2. EPS (Rs): 261.66
3. M Cap (Rs Crores): 15,769.41
4. Sectoral M Cap Rank: 3
5. Div Yield (%): 1.78

(*All ratios and metrics are as per 21st Feb 2021)

TCL has delivered an ROE of 54.32% in the year ending Mar 31, 2020 outperforming its 5 year avg.
of 24.18%.
(Source: Consolidated Financials)
 MARCH 2021 VOL. 3

Comparison with Peers on Metrics

Shareholding Pattern in TCL

Returns
FIN
FUN
 Solve a crossword

ACROSS:
Q1. The conclusion of an untreated insolvency.
Q2. Amount of debt utilised by a firm to finance assets.
Q3. In January 2021, a series of X occurred on shares of GameStop, primarily triggered
by the Reddit forum WallStreetBets. Identify X.

DOWN:
Q4. Purchase and sale of an asset in order to earn profit from a difference in its price,
in different markets.
Q5. Wall Street Crash > X > Great Depression. In the above chronological order, identify
the economic event X that took place in American stocks
Q6. Security deposit made to a seller that represents a buyer’s good faith to purchase a
house/real estate.
Q7. A way of protecting oneself against financial loss or other adverse circumstances.
 MARCH 2021 VOL. 3

Let's solve some Riddles

Q1. A baseball bat and a ball cost $1.10 together, and the bat costs $1.00 more than
the ball, how much does the ball cost?
Q2. I give away half my money and spend half of what I have left. I lose $5. I'm left
with $5. How much did I start with?
Q3. Would you have more money if you had a million dollars today, or a penny today
that doubled in value every day for 30 days?
 MARCH 2021 VOL. 3

Answers to FinFun
Crossword

ACROSS-
A1. Bankruptcy
A2.Leverage
A3. Short Squeeze

DOWN-
A4. Arbitrage
A5. Stock Bubble
A6.Earnest Money
A7.Hedge

Riddles

A1. The ball costs 5c.

(Not 10c. One dollar more than 10c is $1.10, $1.10 + 10c is $1.20 One dollar more than 5c is $1.05.
The sum of which is $1.10.)
A2. $40
A3. A penny (after 30 days it would be worth $5,368,709.12)
 Editoral Team

Aarushi Agarwal Deewanshi Narula Payal Dugar

Abhishek Pandey Eesha Goyal Pooja Bahadur Mathur
Adhiraj Rao Gaurang Kanodiya Priyanka Singhal
Aditi Garg Harsh Agarwal Saanya Khunger
Aditya Kukreja Harshita Goel Sachin Reddy
Agrita Arora Japneesh Singh Arora Sanchi Chawla
Aman Vedanth Jayesh Rungta Sanjana Singh
Agarwal Lavina Garodia Simran Sadhwani
Anirudh Verma Mansha Khanna Shauryee Bhatnagar
Anuj Mittal Manuj Bengani Vaani Kaushik
Anvi Garg Mayank Kedia Vanshika Gupta
Arihant Daga Nidhi Yadav Vartika Sethi
Arihant Jain Pallav Saha Vipul Bharti
Bharat Surana

Technical Team

Nishchhal Goel Harsh Agarwal Bharat Surana

Khatwang Gupta
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