India- The 4th largest economy of the world, which has $1.94 Trillion of Gross Domestic Product according to data released by IMF in 2012, has always been agriculture based country where the crops have a large dependability on Monsoon. The prices of agriculture commodities have largely been a function of demand, supply, inflation rate etc. along with the rainfall which is basically a product of monsoon period. Small variation in the availability of water due to this monsoon can significantly…    Read More >>

Financial administration Financial Administration consists of two words Finance and administration. The word finance means monetary resource and administration means to organize and manage human efforts for greater objective. Thus, Financial Administration refers to making money available to multitude branches of an organization, entity, office etc. Thus, activity like Transport-roadways, railways, airways etc; PSU- SAIL, BHEL, NTPC, ONGC, IOCL etc.; Health Centers, Panchayats, Municipalities, Administration etc. Day-to-day activity of these organizations depends on availability of funds, Hence, We say financial…    Read More >>

The equity market has rallied partly on domestic hope of policy action and additional liquidity from Fed/ECB. With the Q1 earnings growth quite soft the rally has been largely a PE expansion rally and may not sustain itself in the immediate future. While the next 5% move could be on the downside I find infrastructure sector and public sector banks valued at significant discount relative to the market. These segment may not grow significantly in the near term however they…    Read More >>

On August 10th 2011, the third trading day after the S&P downgrade of the US credit rating, the treasury yields sank to record lows. The 2 year yield hit 16 bps, the lowest ever, 3 year quoted at 31 bps, 5 year yields traded at 92 bps and the 10 year yields dropped to 213 bps, finally breaking below 200 bps 2 weeks later. The treasuries rallied and the stocks crashed after the U.S rating downgrade. The markets experienced crazy…    Read More >>

26 Feb 2010 Budget Speech by Finance Minister:- “To promote savings as well as to ensure their utilization for the thrust area of infrastructure, I propose to allow a deduction of an additional amount of Rs.20,000 for investment in long-term infrastructure bonds as notified by the Central Government. This would be over and above the existing limit of Rs.1 lakh on tax savings. I am sure that these reliefs will put more money in the hands of individual taxpayers for…    Read More >>

As I write this article on 9th August, 2011 the total public debt of USA stands at $14, 590, 253, 225, 0662 according to US debt clock, including the $238 billion by which the US debt shot up as soon as the debt ceiling was raised just before August 2nd and at the current rate it is all set to grow to $15 trillion by the time 2011 ends. US debt is already hovering near to 100% of its GDP….    Read More >>

India embarked on its journey to complete full financial integration with the global markets two decades ago. After 1991, India started to adopt free market policies like liberalisation, privatisation and globalisation. During the same time it also started to shift its exchange rate policy from a pegged exchange rate to a managed float exchange rate system. In the process India achieved full current account convertibility and partial capital account convertibility. At present, India is facing many problems like high fiscal…    Read More >>

As the business environment is becoming increasingly global and companies are listing themselves in stock exchanges of various countries, the need for a common platform and framework for understanding and reporting of accounts is increasing. Looking at a broader picture, bringing about a convergence to the International Financial Reporting Standards or IFRS by various group entities will enable the management to bring all the components of the group on a common financial reporting platform. This will eliminate the need for…    Read More >>

Developed economies like US are under a liquidity trap where LM curve for the economy is nearly horizontal and no monetary policy can bring a positive impact on recession. Horizontal LM curve signifies that the economy is under liquidity trap. People are ready to accept all the money at such low levels of interest rates without spending on consumption. This money supplied through quantitative easing is pumped into the emerging markets instead of being invested back into the US economy…    Read More >>