19Dec

Indian Coal Scam – Mother of all Scams

WHAT WAS THE SCAM?

Coal block is the largest political scandal till date and is referred to as the “Mother of all scams”.

Coal blocks allocations by the government between 2004 and 2009 were found to be issued without competitive bidding and at very low prices because of which government suffered a loss of roughly ₹ 10 Lakhs Crores but further amended to ₹ 1.85 Lakhs Crores by the CAG in its final draft report. Read More »

1Dec

Financial Ratios – Practical Aspects

As we all know, financial ratios are used to analyze the financial performance of a company. For this purpose many types of ratios are used like liquidity ratio which tells us the ability of a company to pay back its short term obligations and Debt ratio which tells us the mix of equity and debt. Let’s discuss each type of ratio and what purpose they serve in analyzing the statements. Read More »

22Nov

Right Issue – Practical Aspects

What will be the effect on issue of right shares? Why it is not issued in market directly? Will the shareholders be at any profit/loss? Let us move by defining it and the case onwards.

 

What is right issue of shares?

Right shares are simply the shares issued to the existing shareholders of the company at a discounted price by the company. It is called so because the existing shareholders have the “right” to buy it, sell it or ignore it. For e.g. – Say the market price of share is Rs. 1500, then the company will offer right shares at less than Rs. 1500 say Rs. 1000. Read More »

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