Professional Documents
Culture Documents
March 2021
March 2021
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.
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.
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.
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.
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.
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.
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.
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'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.
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).
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.
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
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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IN S
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G INV
MARCH 2021 VOL. 3
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
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
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
Answers to FinFun
Crossword
ACROSS-
A1. Bankruptcy
A2.Leverage
A3. Short Squeeze
DOWN-
A4. Arbitrage
A5. Stock Bubble
A6.Earnest Money
A7.Hedge
Riddles
Technical Team
pr.fichansraj@gmail.com /fichansraj
www.fichansraj.com