Wealthcon Journal - Edition 7

www.wealthconindia.com Issue 7 | Nov.
2022
Investment
Philosophy
Page 12
New Kids On the

Block: Block-Chain
Page 62
Electric Vehicles &

Its Future
Page 69
Financial Planning
From UG and PG
Page 84
Contents
Sr. Particulars Page No.
01 From The Founder’s Desk Pg. 05

02 Editors Note Pg. 06
03 Author Profile Pg. 08
04 Financial Philosophy Pg. 12
05 Macroeconomics And Currency Market Pg. 14
06 Corporate Actions Pg. 19
07 Company Analysis - Pidilite Pg. 32
08 Company Analysis - Tata Steel Pg. 38
09 History Of Money – Bartering To Bitcoins Pg. 46
10 Gilt Funds Pg. 51
11 Critical Illness And Personal Accidental Insurance Pg. 53
12 Taxation: GST In Healthcare Industry Pg. 56
13 New Kids On the Block: Block-Chain Pg. 62
14 Electric Vehicles & Its Future Pg. 69
15 How To Teach Finance to Children : Part 2 Pg. 76
16 My Wealthcon Journey Pg. 79
17 Financial Planning From UG and PG Pg. 84
18 Lessons Learnt In Value Investing From Warren Buffet Pg. 88
19 Steps In Event Of Untimely Death Of The Investor Head Of A Family Pg. 91
20 Financial Ratios Pg. 98
21 Wealthcon Journal MCQ Pg. 107
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publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means
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any other cause.
The information provided in this publication is for informational purposes only and is not intended to be a source
of advice or credit analysis with respect to the material presented. The information contained in this publication
do not constitute any inancial advice and should never be used without irst consulting with a inancial
professional or using one's own due diligence to determine what may be best for your individual needs.
Wealthcon and the authors are providing this journal and its contents on an “as is” basis. Your use of the
information in this journal is at your own risk. The examples of mutual funds, scripts and brokerage platforms
used in this journal are for illustration purposes only and should not be considered as a basis for your own
investment decisions. Wealthcon does not endorse any mutual fund schemes, stocks or brokerage platforms.
Wealthcon and the authors do not make any guarantee or other promise as to any results that may be obtained
from using the content of this journal. You should never make any investment decision without irst consulting
with your own inancial advisor or conducting your own research and due diligence.
“WEALTHCON DOESN'T PROVIDE INVESTMENT ADVICE.

WEALTHCON IS NOT ASSOCIATED WITH ANY INVESTMENT ADVISOR”
www.wealthconindia.com Page 04
From the
Founder’s Desk
This year Wealthcon celebrates its 5th birthday. What a fantastic journey it has been! What
started as a group of 30 doctors is now a vibrant community of thousands of doctors with
50,000 bene iciaries in India and around the globe! True to its vision Wealthcon has made
thousands of doctors inancially con ident and independent, bringing inancial stability to their
personal and professional lives.
Wealthcon has successfully destroyed the myth that inance is a dif icult subject or doctors are
too busy to learn and manage their own inances. Wealthcon has strived hard to simplify
inancial learning and now stands as a strong guiding and motivating force for all involved.
After the successful “Mission 50K” last year where 50000 doctors were educated about the
basics of personal inance, this year the “Wealthcon Passive Investment” (WPI) initiative is
educating doctors about the nuances of passive investing. Through WPI, with a team of 200 WPI
speakers ready to teach WPI investment philosophy to doctors on various forums, we aim to
reach 2 lakh doctors by the end of 2022.
Wealthcon will continue to strive to empower doctors and build a community to help members
partner with each other, to share knowledge, and to tackle inancial challenges through
collective efforts that are mutually bene icial.
Dr. Ramnath Ghute (Dr. Ram)

Founder, Wealthcon
Radiologist, Mumbai
From the
Editor’s Desk
Chief Editors : Dr. Nitin Gundre
Dr. Gaurang Kadam
Dr. Santosh Jaybhaye
Dear Wealthconians,
We are proud and delighted to present to you, the seventh issue of Wealthcon Quarterly Journal. We are committed to
contribute in every possible aspect, for the inancial literacy and thereby inancial freedom of doctors.
We are extremely happy to announce and present to you in this issue, the very irst article of the new series on
“Philosophy in Finance” by none other than the master himself- Dr. Ram.
To further strengthen the fundamental analysis skills, in this issue, we will be presenting the detailed relevant
information about - Ratios in fundamental analysis, lessons learnt from Warren Buffet and corporate actions. It will be
very interesting and forwarding to read about various macroeconomic factors & currency markets, their inter-
relationship and effects on each other's. Team has taken great efforts to simplify the topics by creating diagrams & low
charts. This issue will also through light upon some of the practical scenarios like steps to be taken in the event of
untimely demise of the head of the family as well as personal accident & critical care insurances.
We are sure that you will love to read everything about- the talk of the town, the revolutionary milestone in the
automobile industry; yes, you are bang on! - The Electric Vehicles and it's future. In company analysis series this time
you will get opportunity to enjoy understanding about cyclical metal sector stock – TATA Steel and many investor's
favourite Chemical sector stock- Piddilite.
This issue will also cover in depth update about the controversial -GST in healthcare.
We thought that it's our duty to educate everyone about Block chain technologies also, as many are falling prey to the
different types of block chain related gimmicks.
We all know that- Time is the greatest compounder and well begun is half done. But unfortunately many of us didn't get
the appropriate guidance at the right time; neither during our childhood nor during our Undergraduate & post-graduate
days. So we found it worthwhile devoting articles on- Teaching inance to children and Financial planning in UG & PG
days.
We request all the readers to share your valuable feedbacks. Those will help us in further improving the journal and
thereby in Wealthcon mission to make doctors inancially literate and independent.
Words are not enough to thank our beloved Mentor, friend, philosopher, guide, visionary, life Guru- Dr. Ram. Hats off to
his passion, commitment and mission to create the difference in the lives of the doctors and help them achieve their
dream of inancial freedom.
We take this opportunity to thank our designing & administrative team for their efforts in adding colours & life to the
articles and transforming them into pleasant readable form. We would like to thank all the contributors for sharing their
inspirational and enlightening inancial journeys.
We express our deepest gratitude to all the authors for all their hard work in presenting the top quality content in the
simple most formats. We are aware that it's a herculean task to take out time while balancing the hectic post Covid
working schedule and family commitments. We are grateful to all the esteemed readers for their enthusiastic
participation and all the love & support.
We are con ident that this issue will add value to your inancial journey. Wishing you all the abundance of Health, Wealth
and Peace of mind. May you all get the inancial freedom at the earliest!
Long live Wealthcon!
Editorial Team,
Wealthcon Journal.
Team Wealthcon
Issue 7
Founder - Wealthcon Chief Admin - Wealthcon
Dr. Ramnath Ghute Dr. Shweta Matreja

Radiologist, Mumbai Radiologist, Mumbai
"If you want to have legacy then “ Imitation is the sincerest form
write something or do something of lattery that mediocrity
so that people can write about you" can pay to greatness”
Chief Editor
Dr. Nitin Gundre

Consultant Cardiac Surgeon, Mumbai
Co-Editor Co-Editor
Dr. Gaurang Kadam Dr. Santosh Jaybhaye

Urologist, Ahmedabad Obst. & Gynaec, Panvel
Contributing
Authors
Dr. Abhikant Chugh Dr. Amol Deshmukh Dr. Arnab Marik Dr. Balkrishna Nagargoje
MD (Med.), Suratgarh, Raj. Pediatrician, Navi Mumbai Radiologist, Navi Mumbai Anesthesiologist, Navi Mumbai
Dr. Darshan Kulkarni Dr. Deepak Mane Dr. Divyesh Joshi Dr. Eswaran Angappan
General Surgeon, Shahada, MH Urologist, Pune Anesthesiologist, Surat Consultant Interventional Cardiologist
Coimbatore
Dr. Gaurav Laddha Dr. Gaurav Nemade Dr. Goviind Paatil (Londhe) Dr. Harish Gopal
Pediatrician, Khamgaon ENT Surgeon, Nashik. Paediatrician, Hyderabad
Dr. Mahesh Bhirud Dr. Mamta Kane Dr. Milon V. Mitragotri Dr. Munjal Pandya
Psychiatrist, Nashik Pediatrician, Melbourne Anesthesiologist & Pain Physician Obstetrician-Gynecologist
Hubballi, Dharwad Ahmedabad
Contributing
Authors
Dr. Nalini M. Dr. Nikesh Shah Dr. Nikhil Pal Dr. Pankaj Tardeja
Pathologist, Bengaluru Orthopedic Trauma and Vitreoretina Surgeon, New Delhi Pediatrician, Abu Dhabi
Foot Ankle Surgeon, Vadodara
Dr. Parag Shah Dr. Pradip Tawde Dr. Prajakta Ahire Dr. Pranav Gupta
Orthopaedic Surgeon, Sangli Chest Physician. Nanded Anaesthesiologist, Nashik Pediatrician, Delhi
Dr. Rajeev Dwivedi Dr. Rajendra Bhatiya Dr. Rajendra Kumar Srivastava
Dr. Ramesh Hasani
Orthopaedic Surgeon, Dehradun Gynaecologist, Chopda Radiodiagnosis, Dehradun MD FNB Critical Care, Nagpur
Dr. Rashmi Alva Dr. Rutul Gandhi Dr. Sandeep Kavade

Dr. Sachin Bote
Pediatrician, Mangalore MS Ortho, Ahmedabad, Gujarat Pediatrician & Adolescent
Laparoscopic Surgeon,
Health Expert, Pune
& Urologist, Pandharpur
Contributing
Authors
Dr. Sandhyarani Shankardas Dr. Saurabh Pandya Dr. Shailesh Patil Dr. Shaukat Panjawani
Gynecologist, Kolhapur Urologist, Vadodara Paediatrician, Belagavi Pediatrician, Vapi Gujarat
Dr. Shirish Narsapur Dr Saurabh Gandhi Dr. Suma Appannanavar Dr. Supriya Kadam
Orthopedician, Bengaluru ENT Surgeon, Ahmedabad Clinical Microbiologist, Vijayawada ENT Surgeon, Thane
Dr. Suresh Naik Dr. T Sivaraj Balajee Dr. V. N. Amogh Dr. Vaidik Chauhan
General & Laproscopic Surgeon, Pune Anaesthesiologist, Chennai Musculoskeletal Radiologist ENT surgeon, Ahmedabad
Bengaluru
Dr. Vinod Dhole Patil Dr. Vivek R Nayak Dr. Yousuf Bhambhani
Family Physician, Panvel Orthopaedic Surgeon, Vasai Physician, Porbandar, Gujarat
Financial
Philosophy
Dr. Ramnath Ghute
Dr. Mamta Kane
Dr. Gaurang Kadam
"Show me the market crash and I will show a market rise"--Dr Ram
Rise is the cause of market fall. Rest all are just stories.
जात िह वुो मृ ु वुं ज मृत च |

त ादप रहायऽथ न ं शो चतमुह स || BG 2.27||
Death is certain for one who has been born, and rebirth is inevitable for one who has died. Therefore, you should not
lament over the inevitable.
One can also interpret the above shloka of Bhagvad Gita in terms of movement of market. After a market rise, fall is
certain. And after a fall, the rise is certain. Thereafter, the investors should not lament over the inevitable.
We have conditioned Wealthcon members to look for opportunities to buy in falling market.
We discourage panic discussion and intellectual gymnastics to ind the reasons of fall. I tell members that cause of
market fall is previous rise, hence, it is a waste of time to do dissection to ind the etiology of fall. And, even if someone
inds the cause of fall, what is he going to do?
First response in market fall should be to ind out opportunities. One should start buying good quality stocks.
To achieve success in markets and inance is following the basic philosophies of “Arthasutras”. One must keep things
simple and boring in investing to achieve long term success. PDF: Patience, discipline and faith is another mantra to be
successful.
1. “Buy from a Paniac, Sell to Maniac.”
The gist of the quote is to buy stocks (investments) from panicky people and sit on it till people become greedy enough to
buy them again. Markets work on sentiments of fear and greed. When the markets are down, fear takes over the human
cortical functioning and people are ready to sell stocks at dirt-cheap prices. This is the time to create wealth by buying
these stocks at cheap prices. The main work begins thereafter by sitting on the investment patiently. When the markets
will go up, people will become greedy to buy them again. This is the time to ful ill their greed by selling our stocks. This is
the best method to amass wealth.
2. “Real investment is boring if you are having thrill and fun you are not investing. If you want thrill, go to
amusement park, investing is a serious work, it needs discipline.”
To become a successful investor, one should learn the basic principles of investing and follow it with discipline. Tracking
and running after momentum stocks and speculating prices on day-to-day basis is an entertainment. Real investment is
selecting few fundamentally good stocks in uptrend and investing in them regularly via SIP and dip buying (buying
during temporary correction). There is no fun in it, it might feel boring, but it is more likely to give consistent good
returns on investment over a long term.
3. “If you drive very fast, you will reach Haridwar, instead of Agra. Greed is speed in share market.”
Physics:
Distance= Speed x Time

In this equation speed and time are interchangeable. To travel a particular distance, one can compensate low speed by
increasing time. One can also reduce the time required to cover that distance by increasing the speed.
Finance:
Target Amount= Rate of return x Time
The rate of return and time are interchangeable. For a certain amount, one can increase time horizon to compensate less
rate of return. Or one can increase rate of return to reduce the time required.
The secret of Warren Buffet's success lies in Time and Not rate of return. He doesn't consider himself as smart and
intelligent (his own self-assessment). His rate of return is modest 19 to 20%, as per the annual reports of Berkshire
Hathaway. However, he is investing since 1942 (78 years). Time and discipline has made him a successful investor.
The root cause of all evil is the SPEED. Greed makes you take high risk trades. Once you control greed and decide that you
do not want more than 20-25% annual return from the market, you stop taking high risk trades. Speed is manifestation
of GREED. Whoever tries to cross that speed limit; of more than 20-25% per year return, he / she would meet with an
accident, one or the other day. One should ix their speed and then increase the time. Greed may tempt you to increase
speed, but, you need to control it. Remind yourself that high speed can take you to Haridwar instead of Agra.
4. “If the goal is capital protection, then don't invest in share market. If the goal is capital growth, then don't
invest in debt products.”
The equity market could be irrational and volatile in the short term and the risk to the invested capital could be high. If
you need your money back in a short period for any near-term goal, do not invest in the share market. Share market
investment should always be for more than 7 years. Long duration in the market negates the effect of volatility. Time acts
as a hedge for protection.
If you want to invest to grow your capital for any long-term goals, which are more than 7 years away, like retirement,
child education, buying a home, then do not invest in debt products. Long term return in debt products is barely enough
to beat in lation, forget about capital growth.
Ironically retailers look for safety and invest in plans, policies, and debt products at the expense of capital growth for
long term goals and invest in stocks for only 2-3 years.
5. ““Overnight success is possible, but, that night is too long (20-30 years).”
One needs to learn to understand and imbibe the importance of patience to achieve success in share market. One cannot
earn pro its in a few days, it takes months and years to achieve success in the markets. People read and hear about
various success stories and successful people. They think it's very easy to do what those successful people have done
and it is easy to replicate their work and results. It's important to understand that they have worked hard for years to get
that success. What looks like an overnight success is actually years of hard work, pain and discipline. Warren Buffet has
created immense wealth not in a few days or months but over a period of years. It took patience in his investing
strategies over a period of 78 years to create wealth for him and his investors.
6. “माकटको जीतने से पहले, अपने ड़र को हराना पड़ता है।
Stock market runs on two emotions, fear and greed. There are many types of fear in the market like FOLM (Fear of losing
more money), FOLG (Fear of losing gain), FOMO (Fear of losing opportunity), etc. One has to learn to control this
emotion of fear. Because fear can lead to unwanted actions which can result in losses. Practising the teachings of
Bhagavad Gita and imbibing from good philosophical books is one of the steps to achieve that. Once you conquer these
emotions of fear and greed, one can conquer the markets.
Market rewards to people who have PATIENCE.

Market rewards to people who stick to one PHILOSOPHY of investment or trading.
Market rewards to people who have PERSEVERANCE to execute their plan. Click here to go
back to index page
Macroeconomics
and Currency Market
Dr. Nitin Gundre
Dr. Gaurav G Laddha
Dr. Suma Appannanavar
Jai and Veeru hired Basanti's Tanga to go to Thakur's haveli. On the way Jai told Veeru that Thakur is very knowledgeable
person and along with Equity he also trades in Currency market. Basanti got curious and asked them,
Basanti: What is Currency Market?
Jai: The currency market is also known as the foreign exchange market which is a one-stop marketplace consisting of
different currencies which a person from any nationality can buy and sell from any country in the world. Exchange
market operates under a whole different jurisdiction around the globe.
Basanti: Who can participate?
Veeru: Large international banks, corporations, Government entities, Retail participants and retailers as well
participate actively. In India we can trade in Currency at NSE Currency Derivatives Segment (CDS) and BSE Currency
Derivatives (BCD) through broker.
Basanti: What is timing of Currency Market?
Jai: The currency market operates 24/7 without stopping. The currency market is not only the single market that
involves exchange but is a fully- ledged network of the global market which do not work simultaneously but work quite
differently as per the time-zone mainly starting with Japanese markets followed by other places like Hong Kong,
Singapore, India, Middle East, Bahrain, United Kingdom, USA, Canada and ending with Australia.
In India Stock exchange is functional from 9:00 am to 5:00 pm for Currency pair Trading in Forex market.
Basanti: What is Currency pair?
Veeru: Currency pair in Forex market is a set of national currency of two countries which are traded and price of one
currency is measured and expressed against other currency.
Basanti: Do you know what all currency pairs are traded?
Jai: Currency pairs traded in forex include;

• U.S. Dollar versus India Rupee: USDINR
• E.U.'s Euro versus the U.S. Dollar: EUR/USD
• U.S. Dollar versus the Japanese Yen: USD/JPY
• U.K.'s Pound Sterling versus the U.S. Dollar: GBP/USD
Basanti: How is currency price quoted?
Veeru: In the currency pair the irst currency is called the Base currency and second is Quotation Currency.
Base Currency/ Quotation Currency =Value
e.g., USD/INR=80
Base Currency is always ixed to 1 unit Currency
i.e., 1 USD = Rs. 80
Jai: Can you explain, what is Dual view of currency pair to Basanti
Veeru: Yes, Dual View is important.
When you buy USDINR, Note that;
1. You are bullish on USD
2. You are Bearish on INR
If value of pair goes up then the power of Base Currency goes up while at same time Quotation Currency Weakens.
So, when –
1. Base Currency Strengthens → Base Currency can buy more units of Quotation Currency
2. Quotation Currency Strengthens→ Base Currency can buy lesser units of Quotation Currency
Basanti: You mentioned so many currency pairs out of these which are suitable for us and why?
Veeru: USD INR is the most commonly traded pair in Indian currency market. The main reason for its popularity is good
liquidity.
On reaching Thakurji's haveli, Basanti pulled Dhanno's reins and Dhanno stopped with a neigh. All three were greeted
by Ramu kaka at the entrance who offered water to them. Thakur ji welcomed them with a big smile and sat down in his
easy chair. Radha brought chai and pakora for all of them. Munching on the hot pakora Veeru asked Thakur ji,
Veeru – Who decides the rate of Currency?
Thakur ji – Reserve Bank of India ixes different currency rate on daily basis. USDINR rate ixed by RBI is called RBI's
Reference rate (Spot Rate). Every day between 11:30 am to 12:30 pm RBI sets this rate which is decided by age old
method of 'Polling' with help of contributing banks ( these banks share the two way quote for USD INR and average of
these rate is the spot rate). RBI adopts a technique called 'Crossing' to decide other major rates i.e., EURINR, GBPINR,
JPYINR.
Veeru: As you mentioned currency rate changes every day and is based on the sentiments of the contributing banks. Can
you tell what factors in luence the sentiments of contributing banks.
Thakurji: Very good question but answer is a bit complex, let me simplify it for you all. There are some factors that decide
the economy of a country and are called 'Macroeconomic factors'. They affect the currency exchange rate either directly
or indirectly. RBI can also control the exchange rate by controlling these factors.
Basanti: Thakurji, can you tell me what is exchange rate before explaining
macroeconomic factors?
Veeru: An exchange rate is a rate at which one currency will be exchanged for another currency and affects trade and the
movement of money between countries. Exchange rates are impacted by both the domestic currency value and the
foreign currency value.
Jai: Thakur ji What are these Macroeconomic Factors / Events affecting Currency Value?
Thakur ji: Well, there are factors like current account de icit, GDP, and in lation and Interest rates (lending) that
primarily affect the exchange rate and in turn affect the currency strength. Foreign Direct investors (FDI) also can affect
currency value and exchange rate. Let me tell you one by one,
1. Current Account: Current account shows trades between a country and other parts of the world. It re lects all
payments and receipts of sales and purchase of goods, services and inancial instruments between countries. In short it
is the nation's earning and spending abroad (includes total value of export and import of goods and services and
international transfer of capital).
• Current account surplus is a state of higher current account balance and denotes a healthy economy of the country
(nation's net income high i.e., difference between export and import.)
• Current account de icit indicates a deteriorating current account balance where in the country has expensive
imports and cheap exports (nations net income low) Figure 1 shows the ratio of the current account balance of
India to the Gross Domestic Product (or % of GDP) over four decades.
Figure 1: Current account surplus/de icit (% of GDP) of India 1980- 2026f
Excess of imports over exports is a key factor to track. Narrowing the trade de icit is a positive for domestic currency.
Export strengthens domestic currency while Import weakens domestic currency as import/ export is done with USD
currency. (Figure 2)
Figure 2: Effect of import and export of a country on its currency
1. Gross Domestic Product -
• Increase in GDP indicate healthy economy and hence has a positive impact on the value of currency. Attracts foreign
investments which in turn leads more money in the economy
• However, a rapid increase in GDP due to increase in in lation may have an opposite effect.
2. Interest Rates:
• Interest Rate (lending) has indirect correlation with exchange rate. Difference in interest rates of different countries is
called interest differential. Countries with higher interest attract large number of investors who seek good returns for
their investment. This makes country's currency more attractive and demand for the same increases leading to
strengthening of domestic currency. Vice versa occurs when a country has low interest rate. (Figure 3 depicts scenario
when US Fed rate is increased and relatively Indian lending rate decreased).
• RBI reviews interest rate of country: Market participants look for cues regarding the policy stance. The monetary
stance helps the participants understand the future course of action concerning the interest rate.
• Hawkish policymakers tend to focus on controlling in lation as a primary goal of monetary policy and thus increase
the interest rate.
• Dovish policymakers are more concerned with promoting economic growth and job creation and thus decrease the
interest rate.
Figure 3: Effect of low interest rate of a country on currency
1. In lation:
• High in lation is a state when prices of goods and services of a country are very high. This will impact country's
exports due to decreased demand from other countries. A Higher in lation leads to weak currency while lower in lation
leads to strong currency. Figure 4: Effect of In lation on country's currency.
• There is a moderate indirect correlation between In lation and exchange rate.
• If In lation is high →RBI takes Hawkish stance→ Domestic currency strengthens.
• If In lation is low → RBI takes Dovish stance → Domestic currency weakens.
[ Note: In lation is measured by Wholesale Price Index (WPI) and Consumer Price Index (CPI). The CPI calculates the
weighted average of prices of a basket of consumer goods and services, including costs of transportation, food, and
energy. Economists use this CPI igure to assess price changes in individuals' cost of living]
Figure 4: Effect of in lation on Currency
1. Foreign Direct Investment (FDI):
It is one of the popular sources of investment into a business by a company or individual of another country. It has been
seen that FDI affects the exchange rate to strengthen. More the FDI take interest in a country the exchange rate is
strengthened positively. Foreign Direct Investment affects Exchange Rate positively for the country. (Figure 5 Depicts
factors FDI look for in a country)
Figure 5: Factors FDI's look for in a country before investing
[Note: Nifty and USDINR – Nifty is the index that re lects India's Economy. Nifty and USDINR are inversely correlated. A
Wealthcon study has shown correlation of negative 0.6 (minus 0.6)]
Jai, Veeru and Basanti thanked Thakur ji for enlightening them about currency market and effect of macro-economic
factors on currency market.
On the way back Basanti said, Chal Dhanno aaj tuje mein currency market aur macroeconomic factors bataungi
[C'mon Dhanno today I will teach you effect of macro-economic factors on currency market”]. Jai whispered to
Veeru, yeh phir shuru ho gayi! [ Chatter box on], Basanti turned back and said Yunki, yeh kaun bola?!!” [ Who is
said this?!!]
Click here to go
back to index page
Corporate
Actions
Dr. Santosh Jaybhaye
Dr. Deepak Mane
Dr. Eswaran A.
INTRODUCTION
Corporate action are the actions / decisions taken by company management that result in material change in the
company fundamentals and in turn makes an impact on its stakeholders including shareholders as well as bond holders.
These events are generally approved by the company's board of directors; shareholders may be permitted to vote on
some events as well. Some corporate actions require shareholders to submit a response.
Corporate actions are of two different types
• Mandatory: These are applicable to all existing shareholders. For example: Stock splits, Bonus Shares, Dividends,
Merger and Acquisitions.
• Voluntary: These are available to only those shareholders who voluntarily wants to avail those actions.
For example: Follow on public offer, Offer for sale, Buy back offer, Rights issue
Now let's go into details of each of these corporate actions and its impact on shareholders
1. DIVIDEND
A. What's Dividend?
Dividend is the money distributed by company management to its shareholder as a part of current earnings or
accumulated pro it from companies' business. Dividend is one of the important criteria incorporated in MPTDS criteria
of Wealthcon to assess inancial health of a company.
B. Intention of the corporate action:
Cash dividends are a common way for companies to return capital to their shareholders in the form of periodic cash
payments.
Companies that pay dividends typically enjoy stable cash lows, and their businesses are commonly beyond the growth
stage. This business growth cycle partially explains why growth irms do not pay dividends—they need these funds to
expand their operations, build factories, and increase their personnel.
C. Procedure and Logistics:
Dividends are often paid on a regular basis, such as monthly or quarterly, but are sometimes one-time-only pay-outs,
such as after a settlement.
• Declaration date: The declaration date is the day on which the board of directors announces the dividend.
• Record date: The date of record is the day on which the company checks its records to identify shareholders of the
company. An investor must be listed on that date to be eligible for a dividend pay-out.
• Ex-date: The ex-dividend date is the trading date on (and after) which the dividend is not owed to a new buyer of the
stock. The ex-date is one business day before the date of record.
• Dividend credit date: The date of payment is the day the company mails out the dividend to all holders of record.
This may be a week or more after the date of record
D. Implications for investors:
Some investors choose high dividend yield companies and invest in them to reap periodic income. Investors have tax
liability for the dividend received
E. Impact on inancial parameters:
Impact of dividend on stock price: After a stock goes ex-dividend, the share price typically drops by the amount of the
dividend paid to re lect the fact that new shareholders are not entitled to that payment.
F. Taxation on dividend:
• The dividend received from an Indian company was exempt until 31 March 2020 (FY 2019-20). That was because
the company declaring such a dividend already paid dividend distribution tax (DDT) before making payment.
• However, the Finance Act, 2020 changed the method of dividend taxation. Henceforth, all dividend received on or
after 1 April 2020 is taxable in the hands of the investor/shareholder
• The Finance Act, 2020 also imposes a TDS on dividend distribution by companies and mutual fund houses on or
after 1 April 2020.
• The normal rate of TDS is 10% on dividend income paid in excess of Rs 5,000 from a company or mutual fund.
• The tax deducted will be available as a credit from the total tax liability of the taxpayer while iling ITR.
2. BONUS
A. What are Bonus Shares?
Bonus shares issue is a corporate action in which additional shares are given to the current shareholders without any
additional cost. This is nothing but a stock dividend, allotted by the company to reward the shareholders. Bonus shares
allotment is typically based upon the number of shares that a shareholder owns.
Bonus share issue is another way apart from dividend in which the companies distribute their cash to shareholder in the
form of free shares. These are company's accumulated earnings which are not given out in the form of dividends, but are
converted into free shares.
Companies issue bonus shares to encourage retail participation, especially when the company's price per share is very
high, and it becomes tough for new investors to buy shares and thereby increase their equity base.
The basic principle behind bonus shares is that the total number of shares increases with a constant ratio of number of
shares held to the number of shares outstanding.
For instance, if Investor A holds 200 shares of a company and a company declares 4:1 bonus, that is for every one share,
he gets 4 shares for free. That is total 800 shares for free and his total holding will increase to 1000 shares.
Important dates related to bonus for investor and their relevance to logistics of bonus credit are exactly same as we
discussed in section of dividend above in this article.
Retail investors can invest easily as the share price becomes cheaper after the bonus issue and liquidity in the market
increases.
When the bonus shares are issued, the number of shares the shareholder holds will increase, but an investment's overall
value will remain the same as share price is reduced accordingly. However, this impact is temporary and long-term
investors tend to gain when share prices rise again in the long run.
Shareholders may sell the bonus shares and meet their liquidity needs temporarily without reducing their number of
shares held in the company in long term.
Issue of bonus shares impacts the company's share price and it falls in the same proportion as the shares are issued. for
example, if bonus shares are issued in a 1:1 ratio, the share price will fall 50 percent. But the overall market capital
remains the same even if bonus shares are declared.
Bonus shares may also be issued to restructure company reserves. Issuing bonus shares does not involve cash low. It
increases the company's share capital but not its net assets.
Bonus issues do not dilute shareholders' equity, because they are issued to existing shareholders in a constant ratio that
keeps the relative equity of each shareholder the same as before the issue.
Because issuing bonus shares increases the issued share capital of the company, the company is perceived as being
bigger than it really is, making it more attractive to investors.
The following are the changes in the inancial parameters:
Hence, the Bonus issue is simply called as “Capitalization of Excess Reserves”. So inally, the cash reserves reduce and
share capital increases. But the company's market capitalization remains the same as there is opposite changes
happening in the no of outstanding shares and share price.
3. STOCK SPLIT
A. What is Stock Split?
A stock split is the corporate action taken in which a company divides its existing shares into multiple shares by dividing
its face value.
Split is usually taken when the stock price is high, making it pricey for investors to acquire. It brings down the share price
since the number of shares increases but the overall value or the market capitalization of the stocks remains the same.
The primary motive is to make share affordable to retail investors. It's done to boost the liquidity of shares and thereby
the equity base becomes wider.
Stock splits are an expensive and tedious process. The legalities behind it and regulatory approvals required are
immense.
Retail investors can invest easily as the share price becomes cheaper and affordable after the stock split and liquidity in
the market increases.
Bonus shares are bene iting to existing shareholders only while both existing shareholders and potential investors can
bene it from the stock split.
• In bonus and stock split, fundamentals of the company are not going to change, the market capital remains the
same, the revenue remains the same, and the pro it remains the same too, the only thing which will be affected is
the face value and reserves capital.
• In stock split, the face value is reduced as per the ratio, while it's not altered in bonus share issue.
• In bonus share issue, the reserves reduce and it's added to share capital, while in stock split, the reserves are not
altered and the share capital also remains the same.
• If the company goes for a stock split from the face value of 10 to the face value of 5. The number of stocks will
get double and the price will get adjusted, whereas in bonus face value remains the same but the price will get
adjusted in proportion to the bonus ratio.
4. MERGER AND ACQUISITION
The term mergers and acquisitions (M&A) refers to the consolidation of companies or their major business assets
through inancial transactions between companies. Mergers and Acquisitions are among the most effective ways to
expedite the implementation of a business plan to grow rapidly.
Merger can be de ined as the collaboration of two or more companies to form a new company in an expanded form. Here,
one company will cease to exist, and the other company will absorb the former. For example, Company A merges with
Company B to form a bigger company A, and company B ceases to exist. In a merger, the boards of directors for two
companies approve the combination and seek shareholders' approval.
Example:
Merger - Joining two or more companies to form third bigger company.

Idea + Vodafone = Vi
Acquisition, on the other hand, is de ined as a process of selling one company to another. Example Company A acquires
company B. Both these entities exist but control of management is in the hands of company A for both companies.
Acquisition - Purchasing target company. No new company formed. In a simple acquisition, the acquiring company
obtains the majority stake in the acquired irm, which does not change its name or alter its organizational structure.
Example:
Walmart acquires Flipkart.
In another process called amalgamation, both the company cease to exist and a new company (the new name would be
given) raises out. Company A and B form a new company C and cease to exist individually.
Intensions and advantages of M & A:
1. Unlocking Synergies - combined worth more than individual.

2. Higher growth
3. Stronger market power
4. Diversi ication
5. Tax Bene its
6. Eliminate competition
7. Creating a stronger brand
Types of Mergers:
1. Horizontal merger: Two companies that are in direct competition and share the same product lines and markets
2. Vertical merger: A customer and company or a supplier and company. Forward - distributor company / Backward -
supplier company
3. Conglomerate merger: Two companies that have no common business areas / Different business (Diversi ication)
4. Market extension merger: Two companies that sell the same products in different markets.
5. Co-Generic merger: Two businesses that serve the same consumer base in different ways, such as a TV manufacturer
and a cable company.
6. Product extension merger: Two companies selling different but related products in the same market (Pizza + Pepsi)
7. Forward Mergers: When an organization decides to merge with its buyers
8. Reverse Mergers: When an entity decided to merge with its suppliers of raw material
Forms of Acquisitions:
1. Stock purchase: In a stock purchase, the acquirer pays the target irm's shareholders cash and/or shares in exchange
for shares of the target company. Here, the target's shareholders receive compensation and not the target.
2. Asset purchase: In an asset purchase, the acquirer purchases the target's assets and pays the target directly.
Forms of integration:
1. Statutory: Target company does not exist.

2. Subsidiary: Target company continues functioning.
3. Consolidation: Totally new company formed.
1. Dig into memorandum to examine the object clause

2. Share a word with stock exchange
3. Draft a merger proposal
4. File an application to the high courts
5. Notice dispatched to shareholders and creditors
6. Filing of the orders with the registrar of companies
7. Assets and liabilities of both the company should be merged
8. Issue for subscription of shares and debentures
How Does M&A Activity Affect Shareholders?
Shareholders of the acquiring irm will see a temporary drop in share value. Shares in the target irm typically
experience a rise in value. Shareholders of both companies may experience a dilution of voting power due to the
increased number of shares released during the merger process.
5. OFFER FOR SALE
A. What is offer for sale?
Offer for Sale is a corporate action used by the promoters or non- promoters (holding at least 10% of the share capital of
the company) to reduce its stake in the company.
• Promoters or non-promoters do this to reduce their stake in the company.

• Sometimes, they do this to achieve the mandatory minimum public shareholding of 25%.
This is done by selling their shares in a transparent manner through the bidding platform of the exchange to the bidders
that include any market participants such as retail investors, companies, quali ied institutional buyers, and even
Foreign Institutional Investors.
Earlier in 2012, only the Promoters/Promoter Group Entities of Listed companies were allowed to act as sellers in order
to achieve the Minimum Public Shareholding of 25%. Recently, the segment has been extended to Non-Promoters of
eligible Companies holding at least 10% of the share capital of the company to of load via offer for sale.
OFS facility is available only to the top 200 companies in the share market whose ranking is based on market
capitalization.
Sometimes, this is seen as an attempt by the promoter, to sell off and get away, hence can have negative sentiments
among investors.
OFS does not result in fresh raising of funds. It results in dilution of shareholder's stake and transfer of the ownership
from one shareholder to another.
6. FOLLOW ON PUBLIC OFFER:
A. What is follow on public offer?
FPO or Follow-on Public Offer is a corporate action wherein a company that is already listed has the option to raise
additional capital by issuing fresh shares.
• To raise funds for its company, in order to be used for their expansion or business needs.
• A company dilutes its Equity by raising more shares as it might not be able to raise cash from banks or NBFC's due
to weak Balance Sheets or inadequate collaterals.
• A public limited company that has gone through the process of an IPO and is listed on the exchanges can issue
additional shares to the public by way of FPO or follow-on public offer.
• Majority portion of FPO has to be ixed for QIB's or quali ied institutional buyers. The aggregate funds which can
be raised through QIPs should not exceed ive times of the Net Worth of the issuer at the end of the previous FY.
Mostly the retail investors get discounts for the price at which they apply.
FPO results in the expansion of the capital base of the company and dilution of the EPS.
7. RIGHT'S ISSUE:
A. What is Right's Issue?
A rights issue is a corporate action through which companies can raise additional capital from their existing
shareholders.
Shareholders are invited to purchase stocks by issuing rights, and these stocks can be bought at a discounted price. This
means that the price of shares offered during a rights issue is lesser than the market price at which the shares will trade
in the secondary market on a future date. The shareholder is under no obligation to mandatorily take up this offer. They
can let the opportunity lapse, claim the offer in part or in full, or sell their existing shares to others when such an offer is
announced.
Rights issue could be done to fund expansion, improve the debt-to-equity ratio and pay off existing debt.
• Rights issues are given to shareholders in proportion to the number of shares already held by them. However,
these stocks should be in the shareholder's possession before the record date and ex-date.
• Record date: The day on which the company assesses its records to check which shareholders qualify for the
rights issue is called the record date.
• Ex-date: Shares bought on or after the ex-date, a day before the record date, are not eligible for the rights issue.
When you buy shares, it takes T+2 days for the stock exchange to settle the transaction. So, shares that are bought
on the ex-date or after will not re lect in your account on the record date, making you ineligible for the rights issue.

Bene its:
• Shareholders can get more stocks of the company at a discounted price, thereby increasing their stake in the
company for cheaper than the prevailing market price.
• Without giving up their rights in favour of new shareholders and diluting the shareholding, the existing
shareholders can retain the control of the company.
• Shareholders are imbibed with a sense of con idence in the company when shares are offered at a discounted
price in a rights issue.
• The company raises more funds without the burden of more debt, which is better for its inancial health.
Disadvantages:
• Since companies often raise funds through rights issues if they are strapped for cash, it could be a warning signal
for investors.
• The information that a company is strapped for cash negatively affects its reputation and lowers the share price.
• The overall number of shares issued by the company could increase, thereby spreading the pro it across these
shares and dealing a blow to earnings per share (EPS).
• When sold in the open market, the value of shares issued in a rights issue could dilute because of an increased
market supply.
• Shareholders may view a rights issue as a sign of a struggling company and sell their shares, which could bring
down the share price.
• In the case of companies that are growing at a slow rate, a rights issue could ind few takers.
A rights issue introduces additional shares in the market. The value of the stock, as a result, dilutes. However, if the
capital raised from a rights issue is used for the expansion of businesses, it could lead to the growth of the company, and,
subsequently, more potential returns for the investors.
8. BUY BACK OFFER:
A. What is Buy-Back offer?
Buy-Back is a process by which a company buys its shares back from the existing shareholders usually at a price higher
than the market price of share. This process is governed by the Securities and Exchange board of India (SEBI) as per
companies act and SEBI regulations.
A company carries out buyback either by Tender offer route or Open market route.
Offer Tender Route:
• In this route shareholders are invited to sell their shares at a speci ied price and within a particular time frame.
Normally the price offered is at a price higher than the market price.
• The difference between the market price of share and the offer price of the share is the premium that is paid to the
shareholders. The reason for offering the premium is to convince large number of shareholders to sell their
shares.
• Sometimes the private company directly provides a tender offer to shareholders without the consent of the
shareholders.
Open Market Offer:

• Under this route, the company purchases its shares directly from the market. The brokers of the company itself
do the transaction.
• Since a large number of shares are purchased back, so buyback of shares continues for a long period of time. The
open market makes no legal obligation on a company to complete its buyback program.
• Companies all across the world buy back shares for two main reasons: to rev up share price or to protect the
company from a hostile takeover. A repurchase or buyback is likely to impact the value of outstanding shares, the
dividend payment and organisational control. Companies tend to buy back shares when they have cash on hand, and the
stock market is on an upswing.
• A company also buys back shares to boost the value of the stock and to improve its inancial condition. Often these
shares are allocated for employee compensation or a secondary offering or toward retirement options. Or the stocks are
reissued on stock exchanges at a later time.
Major reasons for buyback:
• Buyback helps to reduce threat by the shareholders who may be looking for controlling stake in the company.
• The company may also use buyback for de-listing of shares.
• The company may go for buyback in the poor market condition as they believe that share price is undervalued to
support falling price.
• Many a time when the company has idle cash and has no other good opportunity to invest, the company utilizes it
in its own business.
• In order to participate in the program of buyback of shares, the shares should be there in the shareholders Demat
account before the exdate for the shareholders to be eligible for participating in the Buyback.
• Shares worth Rs 2 Lac can only be tendered by any individual shareholder.
SEBI guidelines on buyback of shares:
• The pre and post shareholding by the promoters needs to be disclosed by the company.
• The company is not allowed to issue the same class of shares for the coming one-year post buyback.
• The shares bought back has to be destroyed within 7 working days.

• Advantages of share buyback:
• Share buybacks reduce the number of shares available in the market. They increase Earnings Per Share (EPS) on
the remaining shares, bene iting shareholders. For companies loaded with cash, EPS helps as the average yield on
corporate cash investments is barely more than 1%.
• Also, when companies have excess cash, when they opt for buyback programs, the investors feel more assured.
Investors feel more secured with the fact that the companies were using the money to reimburse shareholders rather
than investing in alternative assets. This move in-turn supports the price of the stock.
• When companies go for buybacks, they tend to reduce the assets on their balance sheets and increase their return
on assets.
• There are also tax bene its associated with buybacks. When excess cash is used to buy back company stock,
shareholders have the opportunity to defer capital gains if share prices increase.
• Whenever shares of a company trade at too low a level, it usually buys back shares. Companies could also leverage
on buybacks when a recession hits the economy, a similar sort of crisis or in times of market correction.
• Buyback increases share prices. Often a reduction in the number of shares in the market leads to a price increase.
A stock trading is based a lot on supply and demand. Hence, a company can bring about an increase in its stock
value by creating a supply shock through a share buyback.
Disadvantages of share buyback:
• Share buybacks are often perceived to be 'marketing gimmick.' Investors need to be wary of this and not get into
its trap. As companies sometimes pursue buyback to boost share prices arti icially. Executive compensations in a
company are often tied to earnings metrics. If earnings cannot be increased, then buybacks can super icially
boost earnings.
• Also, buybacks can often get misleading. When buybacks are announced, any share purchase tends to bene it
short-term investors rather than long-term ones. This creates a false notion in the market about improving
earnings. A buyback ultimately ends up hurting the value.
• Some companies buy back shares to raise funds for reinvestment. According to experts, this is all good until the
money is injected back into the company. The share buybacks are often not used in ways to grow the company. In
many cases, share buybacks outnumber funds spent on research and development (R&D).
• Buybacks tend to reduce a company's cash reserves, thereby giving it less cushion in tough times. In the process,
it makes its balance sheet look less healthy.
• The number of share outstanding goes down due to the buyback of shares.
• Buyback leads to the increase in earnings per share (EPS). Since it reduces company's outstanding shares, the
impact is clearly evident in per-share measures of cash low and pro itability.
• It also leads to increase in stock price in the market. Generally, the buyback is looked upon as an increasing
con idence with the promoters.
Conclusion:
Stock buybacks are indeed a powerful way the companies can give back capital to shareholders. However, they are a less
visible way than through dividends. By understanding how buybacks work, you could understand companies' capital
return plans better and can make more informed investment decisions.
SUMMARY OF CORPORATE ACTIONS:
Corporate No of Share Market Face Share Reserves

Action Shares Price* Capital Value Capital
Dividend No Reduces Reduces No No Reduces
change change change
Bonus Increases Reduces No No Increases Reduces
change change
Stock Increases Reduces No Reduces No No
Splits change change change
Follow-on Increases No Increases No Increases Increases
Public change change
Offer
Offer for No No No No No No
sale change change change change change change
Buy back Reduces No Reduces No Reduces Reduces
offer change change
Rights Increases No Increases No Increases Increases
Issue change change
* - The change in share price mentioned above is Direct effect of the Corporate Action on the Share Price but actual
Share price change will re lect market sentiment towards the corporate action. For Dividend, Stock Split and Bonus
shares, Share price change is primarily due to corporate action implementation and doesn't depend on Purely on
Market sentiment. For Follow-on Public Offer, Offer for sale, Buy Back Offer & Rights issue it does depend on Market
sentiment.
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Company Analysis-
Pidilite
Dr. Balkrishna Nagargoje Dr. Rajeev Dwivedi
Dr. T Sivaraj Balajee Dr. Pranav Gupta
Key Statistics :-
Type - Public Limited

Industry - Speciality Chemicals
Traded as - BSE:500331, NSE:PIDILITIND, ISIN- INE318A01026
Founded in - 1959
Founder - Mr. Balwant Parekh
Headquarters - Andheri (East), Mumbai, india
Key people - Madhukar Parekh (Chairman), Bharat Puri (MD)
Key products - adhesives, construction chemicals
Website - www.pidilite.com
Key Financials :-
• Market Cap ₹ 142,524 Cr. Debt to equity 0.02

• EPS ₹ 25 Current Price ₹ 2,804
• Pro it after tax ₹ 1,269 Cr. 52 week H/L ₹ 2,895 / 1,989
• Promoter holding 69.9 % Stock P/E 108.97
• Pledged percentage 0.00 % Sectoral Index PE 22.24
• Price to book value 22.3 Dividend Payout 42.1 %
• Price to Earning 106 Book Value ₹ 126.2
• Price to Sales 12.9 Dividend Yield 0.36 %
• Return on equity 20.2 % ROCE 26.9 %
• Current ratio 1.7 ROE 20.2 %
• Int Coverage 44.3 Face Value ₹ 1.00
Introduction :-
Pidilite Industries Limited is an Indian adhesives manufacturing company whose headquarter is located in Andheri
(East), Mumbai. The company is the leading adhesive manufacturing company in India. Pidilite also ventures in
manufacture of stationary, art materials, car care products, footwear adhesives, fabric and food care products, and
speciality industrial products like pigments, textile resins, leather chemicals, waterproo ing and construction
chemicals.
Timeline : -
1959 1990 1993 1997 2000 2001 2004
Fevicol Brand Pidilite BSE listing Top 15 M-Seal Dr.Fixit 1000 cr.TO
PERFORMANCE BY INDUSTRY SEGMENT
Business segment / Product Category Percentage
Share holding
Total number of shares 508288415

Total number of share holders 579248
Subsidiaries :-
The Company has 33 subsidiaries, both direct and indirect, as on 31st March, 2022. 13 of these subsidiaries are in India
and 20 of them abroad.
Domestic Subsidiaries in Consumer and Bazaar segment registered good sales growth and healthy margins. The
Subsidiaries sales growth in Business to Business segment showed signs of revival but EBITDA remained under
pressure due to higher input costs.
Pidilite Bangladesh reported strong volume-led growth across categories with healthy EBITDA margin on back of
improved gross margin due to pricing actions and cost control measures.
Pidilite Lanka continued with its sales growth momentum in a very challenging economic environment. However, the
pro itability was signi icantly impacted due to socioeconomic and political crisis and steep currency devaluation.
Pidilite USA posted sales and EBITDA decline primarily due to moderation of demand in hobby and craft products in the
post pandemic period as well as material cost increases.
Pidilite Brazil recorded lower sales mainly on account of overall economic slowdown and higher growth in the prior
year due to iscal stimulus. Operating pro its remain low due to signi icant input cost in lation and competitive pricing
pressure.
Companys subsidiary in the Middle East reported healthy sales performance on account of good demand from re-export
market
Financials and MPTDS validity :-

Financials :
Income Statement :
MAR 22 MAR 21 MAR 20 MAR 19 MAR 18
Operating Revenue 9,921 7,293 7,294 7,078 6,078
Total income 9,957 7,372 7,444 7,225 6,227
Total expenditure 8,074 5,612 5,718 5,710 4,737
EBITDA 1,847 1,681 1,576 1,368 1,341

OTHER income 36 79 149 147 148
PBT 1,602 1,519 1,467 1,338 1,354

Tax 407 396 347 413 393
Pat 1,195 1,122 1,119 925 962
profit 1,208 1132 1,116 925 962
Liabillities : Assets :
Cash Flow : Ratios :
MPTDS Validity :
Market Cap – 142509 Cr as on date. - Valid
Price – Valid Tax – Equivocal to Valid
Dividend – Valid Sales – Valid
SWOT Analysis :
Strengths :
• Growth in Net pro it with increasing Pro it margin (QOQ and YOY)
• Company with lowest Debt among peers
• Annual Net pro its improving for last 2 years
• Book Value per share improving for last 2 years
• Company with ZERO promoter pledge
• Lion's share on adhesives and leak proof chemicals.
Weaknesses :
• MFs decreased their shareholding by 1.24% from 2017 till date
• Inef icient use of capital, shareholder's funds and assets to generate pro its – RoCE, RoE, RoA declining in last 2
years
• Negative cash low from Investing and Financial activities over last 2 years
• For the 1st time in the company's history, Debt is coming into picture for last 2 years and it's a 100% YOY
increase. DE ratio creeping up due to that from a forever Zero.
• Dividend Yield is only 0.35% and it had halved YOY and the settlement had happened only this FY, so effective
yield is only once over past 2 years. Though yield is poor, its on par with peers.
Opportunities :
• Negative to positive growth in sales and pro it with strong price momentum
• Business reaching Pre Covid levels in sales, volumes and pro its too
• JV and subsidiary investment are strong for progress to retain Numero Uno position
• Presence in 100 countries and continuing expansion, opens up a world of opportunities literally.
Threats :
• Stocks with High PE (104) and High PBR (20) indicates signi icantly high valuations.
• Entry of competitors in the segment
• Overseas subsidiaries are pressurised. Though, as the percentage of sales volume, its low, its de initely an area of
concern. Their own AR admitting it. EBITDA has decreased by 28.2% inspite of volume growth by a healthy 16.4%
• Srilankan exposure is suffering due to uncertain Geopolitical tensions and might take long time to recover.
Future Trend Prediction :
I. Technical Analysis :
a. Short term : Daily TF Analysis – Pullback opportunity
- Golden cross over is a positive short-term analysis signal
b. Medium term : Weekly TF Analysis - Bullish

- RSI & MACD indicating price strength
- Strong Momentum: Price above all moving averages
c. Long term : Monthly TF Analysis – Bullish

- ATH close in August
- Continuous uptrend from Covid dips
- No signs of slowing or consolidation
II. Fundamental Analysis :

a. Short term :
• Crude prices account for 50-60% of the COGS, so cooling crude is a plus.
• The Correction from ATH will have to be taken as an opportunity to accumulate.
• Fresh entries at ATH are nt advised that too at this valuation.
• Competitors entering segment might spurn up their expansion plans
b. Long Term :
• A very good portfolio stock with valid MPTDS criteria for long time.
• Market leader status is still undisputed.
• Ever expanding acquisitions over last decade are a good sign that the company is con ident in business
and healthy in inancials.
• Multiple new product line ups like “Dr.Cipy”, experience store initiatives as “One Pidilite store”s across
the country, “Artshaala”, a community promotion of art and crafts to keep up demand in B2C, keeps the
company relevant.
• Zero promoter pledging is a sign of healthy business.
• Increase in housing sector interest, irst post covid peak, secondly better interest rate availability, third,
government push of housing sector is an added plus to their construction chemical component.
• Since their volumes of B2C is almost 80% of sales, and growing at a healthy rate of 30%, the risk of high
volume / high value B2B is neutralised.
• ROE and ROCE might ve taken a hit due to Covid, so might settle down in the next couple of years.
• Negligible Debts creeping in over past couple of years might also be due to a lean covid year business.
• We know their ads carry a lot of quirkiness, their digital marketing team carries the same vein. Excellent
Digital presence in advertising is in sync with current trend. Accolades for the same is a testimony to
their marketing skills.
• Consistent expenditure on R&D, facility addition and machinery addition is a long term plus.
• Plans of moving to green energy incorporated into the expansion, will bring down the operating costs in
the long term/
• Staff care and CSR activities reach the masses in a positive way, improve the company's brand value in
their minds and coupled with negligible debt and zero promoter pledging, cooks up the right mix of a
pro itable business with genuine long term buying interest.
VERDICT :
Accumulate on any dips as portfolio stock.
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Company Analysis-
TATA Steel
Dr. Rajendra Bhatiya Dr. Pradip Tawde
Dr. Nalini M. Dr. Suresh Naik
NERVES OF STEEL – TATA STEEL
TATA GROUP IS A GLOBAL ENTERPRISE,

HEADQUARTERED IN INDIA.
Founded by Jamsetji Tata in 1868, with a mission 'To

improve the quality of life of the communities we serve
globally, through long-term stakeholder value creation
based on Leadership with Trust'. The group operates
across six continents and over 100 countries.
Tata Sons is the principal investment holding company and
promoter of Tata companies.
Tata Iron and Steel Company (TISCO) was founded by

Jamsetji Tata and established by Sir Dorabji Tata on 26
August 1907. TISCO started pig iron production in 1911 and began producing steel in 1912 as a
branch of Jamsetji's Tata Group.
INTRODUCTION
Tata Steel Limited is an Indian multinational steel-making company, based in Jamshedpur,

Jharkhand and headquartered in Mumbai, Maharashtra. Established in India as Asia's irst
integrated private steel company in 1907, It operates in 26 countries with key operations in India,
Netherlands and the United Kingdom, and employs around 80,500 people, Its largest plant (10
MTPA capacity) is located in Jamshedpur, Jharkhand. In 2007, Tata Steel acquired the UK-based steel
maker Corus. It was ranked 486th in the 2014 Fortune Global 500 ranking of the world's biggest
corporations. It was the seventh most valuable Indian brand of 2013 according to Brand Finance. In
July 2019 Tata Steel Kalinganagar (TSK) was included in the list of the World Economic Forum's
(WEF's) Global Lighthouse Network.
The irst steel ingot was manufactured on 16 February 1912. During the First World War
(1914–1918), the company made rapid progress.
In 1920, The Tata Iron & Steel Company also incorporated The Tinplate Company of India Ltd
(TCIL), as a joint venture with then Burmah Shell to manufacture Tinplate. TCIL is now Tata Tinplate
and holds 70% market share in India. By 1939, it operated the largest steel plant in the British
Empire. The company launched a major modernisation and expansion program in 1951. Later, in
1958, the program was upgraded to 2 million metric tonnes per annum (MTPA) project
F o rm e rly T a ta Iro n a n d S te e l C o m p a n y
L im ite d (T IS C O )
Type P u b lic
T ra d e d a s B S E: 5 0 0 4 7 0
N S E: T A T A S T E E L
B S E S E N S ECXo n s titu e n t
N S E N IF T Y 5 0 C o n s titu e n t
IS IN IN E 0 8 1 A 0 1 0 1 2
In d u stry S te e l
Iro n
Founded 2 6 A u g u s t 1 9 0 7 ; 1 1 5 y e a rs
a g oa t Ja m s h e d p u r, Jh a rk h,a n d
In d ia
Revenue ₹ 2 4 4 ,7 4 4
c ro re(U S $ 3 1b illio n ) (2 0 2[22] )
O p e ra tin g ₹ 4 9 ,5 7 7 c ro (U
re S $ 6 .2b illio n )
in c o m e (2 0 2 2[2) ]
N e t in c o m e ₹ 4 1 ,1 0 0 c ro (U
re S $ 5 .1b illio n )
(2 0 2 2[2) ]
T o ta l a s s e ts ₹ 2 8 5 ,9 4 5
c ro re(U S $ 3 6b illio n ) (2 0 2[22] )
T o ta l e q u ity ₹ 1 1 4 ,4 4 3
c ro re(U S $ 1 4b illio n ) (2 0 2[22] )
N um ber of 3 2 ,3 6 4 (2 0 2[21] )
e m p lo y e e s
P a re n t T a ta G ro u p
S u b s id ia rie s T a ta S te e l E u ro p e
T a ta S te e l L o n g P ro d u cts
T a ta S te e l T h a ila n d
N a tS te e l
T a ta T in p la te
T a y o R o lls
Ja m s h e d p u r F C
W e b s ite w w w .ta ta ste e l.c o m
4P'S ANALYSIS
PROMOTERS AND SHARE HOLDING PATTERN (%)
PRODUCTS
KEY PRODUCT RANGE OF TATA STEEL
Marketing headquarters at the Tata Centre in

Kolkata, West Bengal. It has a presence in around
50 countries with manufacturing operations in 26
countries including: India, Malaysia, Vietnam,
Thailand, UAE, Ivory Coast, Mozambique, South
Africa, Australia, United Kingdom, The
Netherlands, France and Canada
KEY MARKET SEGMENTS

•Construction , •Automotive, •General Engineering,
•Industrial Products, •Agriculture,
•Sporting Ammunition, •Electrical,
•Automotive & Fluid Handling , •Household Products,
•Of ice Products, •ICT Products,
•Consumer goods , •Packaging, lifting and excavating,
•Aaerospace, •Shipbuilding,
•Rail and defence, •Security sectors.
KEY BRANDS - Ymagine, MagiZinc , Colorcoat, ComFlor, Protact, Trisobuild, Coretinium (other
countries )
In India,
FINANCIALS
MPTDS
MARKET CAP - ₹ 129,886 Cr.
PRICE
Tax % 16% 42% 185% 41% 17%
Net Profit 17,743 9,122 1,172 8,190 41,749 39,695
EPS in Rs 11.93 9.07 1.38 6.26 32.88 32.10
Dividend
9% 15% 74% 40% 16%
Payout %
BALANCE SHEET ( Consolidated Figures in Rs. Crores)
Mar 2018 Mar 2019 Mar 2020 Mar 2021 Mar 2022
Share capital 1,165 1,158 1,145 1,198 1,221
Reserves 57,451 65,505 70,156 72,262 113,222
Borrowings 92,127 100,803 116,328 88,501 75,561
Other
Liabilities 57,999 65,320 61,520 81,948 92,417
TOTAL
LIABILITIES 208,722 232,773 249,149 243,909 282,422
Fixed assets 96,105 124,442 134,551 135,775 133,288

CWIP 16,614 18,641 19,497 19,007 22,046
Investments 17,899 5,738 6,285 10,682 13,140
Other Assets 78,103 83,952 88,816 78,445 113,948
TOTAL ASSETS 208,722 232,773 249,149 243,909 282,422
Compounded Sales Compounded Profit Stock Price Return on Equity

Growth Growth CAGR
10 10 10
6% 29% 11% 10 Years: 11%
Years: Years: Years:
5 Years: 17% 5 Years: 77% 5 Years: 11% 5 Years: 21%
3 Years: 16% 3 Years: 67% 3 Years: 44% 3 Years: 24%
TTM: 38% TTM: 79% 1 Year: -27% Last Year: 43%
SHARE HOLDING PATTERN
Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Aug
2020 2020 2020 2020 2021 2021 2021 2021 2022 2022 2022
Promoters 34.41 34.41 34.41 34.41 34.41 34.41 34.41 33.92 33.92 33.92 33.92
FIIs
12.39 11.84 11.45 16.87 18.56 21.94 22.38 21.36 22.87 21.95 21.76
DIIs
29.66 29.79 29.87 25.84 25.16 19.28 18.28 18.11 20.41 19.01 18.37
Government
0.22 0.22 0.25 0.25 0.25 0.10 0.10 0.10 0.10 0.10 0.01
Public
23.32 23.73 24.02 22.62 21.62 24.27 24.83 26.51 22.70 25.02 25.94
TATA STEEL – COMPETITORS
4 Major Domestic Rivals

SAIL
JSW
ISPAT
ESSAR STEEL
Rest are small mills which together accounts for 30% of Total Market share.
TATA STEEL – FUTURE PROSPECTS
Tata Steel has announced a huge capex of ₹12,000 crores for FY23. Out of this, Rs. 8,500 will be
invested in India and the balance will go towards enhancing the European operations.
Furthermore, the steel maker spent ₹12,100 crores on the acquisition of troubled state-owned
Nilachal Ispat Nigam Limited. This will give Tata a dedicated site to produce long steel products.
Over the next ive years, the company has planned a large capital investment of ₹50,000-60,000
crores. This will make it reach a capacity of 35 million tonnes by 2025. The long-term target of the
company is 40 million tonnes by 2030.
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History Of Money –
Bartering To Bitcoins
Dr. Rutul Gandhi
Dr. Pankaj Tardeja
Money—in some form or another—has been part of human history for at least the past 5,000 years. Before that time,
historians generally agree that a system of bartering was likely used.
Bartering is a direct trade of goods and services; for example, a farmer may exchange a bushel of wheat for a pair of shoes
from a shoemaker. However, these arrangements take time. If you are exchanging an ax as part of an agreement in which
the other party is supposed to kill a woolly mammoth, you have to ind someone who thinks an ax is a fair trade for
having to face down the 12-foot tusks of a mammoth. If this doesn't work, you would have to alter the deal until someone
agreed to the terms.
Slowly, a type of currency developed over the centuries that involved easily traded items like animal skins, salt, and
weapons. These traded goods served as the medium of exchange (even though the value of each of these items was still
negotiable in many cases). This system of trading spread across the world and still survives today in some parts of the
globe.
One of the greatest achievements of the introduction of money was the increased speed at which business, whether it
involved mammoth-slaying or monument building, could be done.
1. Introduction to the history of money

Money, whether it's represented by a seashell, a metal coin, a piece of paper, or a string of code electronically mined by
computer, doesn't always have value. Its total global value—currently estimated to be around $418 trillion—depends
on the importance that people place on it as a medium of exchange, a unit of measurement, and a storehouse for wealth.
Money allows people to trade goods and services indirectly. It helps communicate the price of goods, and it provides
individuals with a way to store their wealth.
2.Understanding the History of Money

Money is valuable as a unit of account—a socially accepted standard by which things are priced and with which payment
is accepted. However, throughout history, both the usage and form of money have evolved.
Though the terms "money" and "currency" are often used interchangeably, several theories suggest that they are not
identical. According to some theories, money is inherently an intangible concept, while currency is the physical
(tangible) manifestation of the intangible concept of money.
By extension, according to this theory, money cannot be touched or smelled. Currency is the coin, note, object, etc. that is
presented in the form of money. The basic form of money is numbers; currently, the basic form of currency is paper
notes, coins, or plastic cards (e.g., credit or debit cards).
Money has been around for centuries, evolving and changing with the times.
3.Historical development of currency

Some of the earliest currencies were objects from nature. A notable example is cowrie shells, irst used as money about
1200 BCE. Although they may seem a pretty random choice, the shells had a number of advantages: they were similar in
size, small, and durable. While the mollusks that produce the shells are found in the coastal waters of the Indian and
Paci ic oceans, the expansion of trade meant that even some European countries accepted cowrie shells as currency.
Shells in the form of wampum (tubular shell beads) were used as money by Native Americans. Another currency from
nature was whale teeth, which were used by Fijians. And the people of Yap Island (now part of Micronesia) carved huge
disks of limestone that eventually became currency and remain part of the island's culture.
The ancient Egyptians were some of the irst people to develop a system of writing and recording. They also had a
complex system of trade and commerce. One of the ways they were able to trade was by using bartering.
In exchange for goods, the Egyptians would exchange items such as food, livestock, and slaves. They also used
commodities such as salt, copper, and gold as currency.
One of the most famous ancient Egyptian coins is the diorite sphinx. It is estimated to be around 4,500 years old. The
sphinx is a statue of a king or pharaoh with a recessed mouth, meant to depict the god Apis.
4.Leather money
About the 6th century BCE leather and animal hide began to be used as currency. Early ancient Rome reportedly used
this type of money. It was also found in such areas as Carthage and what is now France, and Russia is believed to have
used leather money into Peter the Great's reign (1682–1725 CE). The Chinese emperor Wudi (reigned 141–87 BCE)
created currency out of skins from his personal collection of white stags. It was fringed and decorated with elaborate
designs. Although no longer used, leather money may have left a lasting legacy: some believe it gave rise to the use of
buck as slang for dollar.
5.The role of gold and silver in money

While the use of metal for money can be traced back to Babylon before 2000 BCE, standardized and certi ied coinage
may not have existed until the 7th century BCE. According to many historians, it was during this time that the kingdom of
Lydia (in present-day Turkey) issued the irst regulated coins. They appeared during the reign (c. 610–c. 560 BCE) of
King Alyattes and were made of electrum, a natural mixture of gold and silver. Crudely shaped like beans, these coins
featured the royal symbol, a lion. Alyattes' son, Croesus (reigned c. 560–546), reformed the kingdom's currency,
introducing silver coins and gold coins. Soon such currency began appearing elsewhere.
Lydia's currency helped the country increase both its internal and external trading systems, making it one of the richest
empires in Asia Minor. Today, when someone says, "as rich as Croesus", they are referring to the last Lydian king who
minted the irst gold coin.
Gold standard
Unsurprisingly, currency comes with a number of problems, one of which concerns iat money. This is currency that is
issued on the “ iat” (decree) of a sovereign government and, unlike gold and silver coins, has no intrinsic value. Countries
can thus issue such money at will, and some did (and do), potentially making the currency worthless. This became such a
problem that in 1821 the United Kingdom—then the leader in international inance—introduced the gold standard. In
this monetary system, the standard unit of currency is typically kept at the value of a ixed quantity of gold, which
increases con idence in international trade by preventing governments from excessively issuing currency. Eventually,
other countries, including Germany, France, and the United States, adopted the gold standard. However, the system had
its drawbacks. Notably, it limited a country's ability to isolate its economy from depression or in lation in the rest of the
world. After the Great Depression (1929–c. 1939), countries began to rethink the gold standard, and by the 1970s gold
was no longer being tied to currency. Since then there have been a number of extreme cases of hyperin lation. A notable
case is Zimbabwe in the early 2000s, when the country issued currency in denominations as high as $100
trillion—which was worth about a loaf of bread.
6.Paper Money
During 1260 CE, the Yuan dynasty of China moved from coins to paper money. By the time Marco Polo—the Venetian
merchant, explorer, and writer who traveled through Asia along the Silk Road between 1271 and 1295 CE—visited
China in approximately 1271 CE, the emperor of China had a good handle on both the money supply and its various
denominations.11 In fact, in the place where modern American bills say, "In God We Trust," the Chinese inscription at
that time warned: "Those who are counterfeiting will be beheaded."
Parts of Europe were still using metal coins as their sole form of currency until the 16th century. Colonial acquisitions of
new territories via European conquest provided new sources of precious metals and enabled European nations to keep
minting a greater quantity of coins.
However, banks eventually started using paper banknotes for depositors and borrowers to carry around in place of
metal coins. These notes could be taken to the bank at any time and exchanged for their face value in metal—usually
silver or gold—coins. This paper money could be used to buy goods and services. In this way, it operated much like
currency does today in the modern world. However, it was issued by banks and private institutions, not the government,
which is now responsible for issuing currency in most countries.
The irst paper currency issued by European governments was actually issued by their colonial governments in North
America. Because shipments between Europe and the North American colonies took a long time, colonies often ran out
of cash. Instead of going back to a barter system, the colonial governments issued IOUs that traded as currency. The irst
instance was in Canada (then a French colony). In 1685, soldiers were issued playing cards denominated and signed by
the governor to use as cash instead of coins from France.
7.The Evolution of Banking over Time

Banking began when empires needed a way to pay for foreign goods and services with something that could be
exchanged easily. Coins of varying sizes and metals eventually replaced fragile, impermanent paper bills. Coins,
however, needed to be kept in a safe place, and ancient homes did not have steel safes. Wealthy people in Rome stored
their coins and jewels in the basements of temples. They were given a sense of security by the presence of priests or
temple workers, who were assumed to be devout and honest, and armed guards.
Historical records from Greece, Rome, Egypt, and Babylon suggest that temples loaned money in addition to keeping it
safe. The fact that temples often functioned as the inancial centers of their cities is a major reason why they were
ransacked during wars.
i.Banking in the Roman Empire

The Romans, who were expert builders and administrators, extricated banking from the temples and formalized it
within distinct buildings. During this time, moneylenders still pro ited, as loan sharks do today, but most legitimate
commerce—and almost all government spending—involved the use of an institutional bank. The Roman Empire
eventually crumbled, but some of its banking institutions lived on in the form of the papal bankers that emerged in the
Holy Roman Empire and the Knights Templar during the Crusades. Small-time moneylenders who competed with the
church were often denounced for usury.
ii. Adam Smith Gives Rise to Free-Market Banking

Banking was already well-established in the British Empire when economist Adam Smith introduced his invisible hand
theory in 1776. Empowered by his views of a self-regulated economy, moneylenders and bankers managed to limit the
state's involvement in the banking sector and the economy as a whole. This free-market capitalism and competitive
banking found fertile ground in the New World, where the United States of America was about to emerge. Initially,
Smith's ideas did not bene it the American banking industry. The average life span of an American bank was ive years,
after which most of the banknotes that it issued became worthless. A bank robbery also meant a lot more then than it
does now in the age of deposit insurance. Compounding these risks was a cyclical cash crunch in America.
Alexander Hamilton, the irst secretary of the U.S. Treasury, established a national bank that would accept member
banknotes at par, thus loating banks through dif icult times. After a few stops, starts, cancellations, and resurrections,
this national bank created a uniform national currency and set up a system by which national banks backed their notes
by purchasing Treasury securities, thus creating a liquid market. The national banks pushed out the competition
through the imposition of taxes on the relatively lawless state banks.
iii. Merchant Banks Come Into Power

Most of the economic duties that would have been handled by the national banking system, in addition to regular
banking business like loans and corporate inance, soon fell into the hands of large merchant banks. During this period,
which lasted into the 1920s, the merchant banks parlayed their international connections into political and inancial
power. These banks included Goldman Sachs; Kuhn, Loeb & Co.; and J.P. Morgan. Originally, they relied heavily on
commissions from foreign bond sales from Europe, with a small back low of American bonds trading in Europe. This
allowed them to build capital.
At that time, a bank was under no legal obligation to disclose its capital reserves, an indication of its ability to survive
large and above-average loan losses. This mysterious practice meant that a bank's reputation and history mattered
more than anything else. While upstart banks came and went, these family-held merchant banks had long histories of
successful transactions. As large industries emerged and created the need for major corporate inancing, the amounts of
capital required could not be provided by any single bank, so initial public offerings (IPOs) and bond offerings to the
public became the only way to raise the required capital. Successful offerings boosted a bank's reputation and put it in a
position to ask for more to underwrite an offer. By the late 1800s, many banks demanded a position on the boards of the
companies seeking capital, and if the management proved lacking, then they ran the companies themselves.
iv. J.P. Morgan Rescues the Banking Industry

J.P. Morgan & Co. emerged at the head of the merchant banks during the late 1800s. It was connected directly to London,
then the world's inancial center, and had considerable political clout in the United States. Morgan & Co. created U.S.
Steel, AT&T, and International Harvester, as well as duopolies and near-monopolies in the railroad and shipping
industries, through the revolutionary use of trusts and a disdain for the Sherman Antitrust Act. It remained dif icult,
however, for average Americans to obtain loans or other banking services. Merchant banks didn't advertise, and they
rarely extended credit to the “common” people. Racism was also widespread. Merchant banks left consumer lending to
the lesser banks, which were still failing at an alarming rate.
The collapse in shares of a copper trust set off the Bank Panic of 1907, with a run on banks and stock sell-offs, which
caused shares in general to plummet. Without a Federal Reserve Bank to take action to stop the panic, the task fell to J.P.
Morgan personally. Morgan used his considerable clout to gather all the major players on Wall Street to deploy the credit
and capital that they controlled, just as the Fed would do today.
v. The End of an Era, the Birth of the Fed

Ironically, Morgan's move ensured that no private banker would ever again wield that much power. In 1913, the U.S.
government formed the Federal Reserve Bank (the Fed). Although the merchant banks in luenced the structure of the
Fed, they were also pushed into the background by its creation. Even with the establishment of the Fed, enormous
inancial and political power remained concentrated on Wall Street. When World War I broke out, the United States
became a global lender, and by the end of the war, it had replaced London as the center of the inancial world.
Unfortunately, the government decided to put some unconventional handcuffs on the banking sector. It insisted that all
debtor nations pay back their war loans—which traditionally were forgiven, especially in the case of allies—before any
American institution would extend them further credit. This slowed world trade and caused many countries to become
hostile toward American goods. When the stock market crashed on Black Tuesday in 1929, the already-sluggish world
economy was knocked out. The Fed couldn't contain the damage, which led to some 9,000 bank failures from 1930 to
1933.
New laws emerged to salvage the banking sector and restore consumer con idence in it. With the passage of the Glass-
Steagall Act in 1933, for example, commercial banks were no longer allowed to speculate with consumers' deposits, and
the Federal Deposit Insurance Corp. (FDIC) was created to insure accounts up to certain limits.
vi. World War II and the Rise of Modern Banking

World War II may have saved the banking industry from complete destruction. For the banks and the Fed, the war
required inancial maneuvers involving billions of dollars. This massive inancing operation created companies with
huge credit needs that, in turn, spurred banks into mergers to meet the demand. These huge banks spanned global
markets. More importantly, domestic banking in the United States inally settled to the point where, with the advent of
deposit insurance and widespread mortgage lending, the average citizen could have con idence in the banking system
and reasonable access to credit. The modern era had arrived.
vii. Banking Goes Digital

The most signi icant development in the world of banking in the late 20th and early 21st centuries has been the advent
of online banking, which in its earliest forms dates back to the 1980s but really began to take off with the rise of the
internet in the mid-1990s. The growing adoption of smartphones, mobile banking and digital payments further
accelerated the trend. While many customers continue to conduct at least some of their business at brick-and-mortar
banks, a 2021 J.D. Power survey found that 41% of them have gone digital-only.
viii. The Bottom Line
Banks have come a long way from the temples of the ancient world, but their basic business practices have not changed
much. Although history has altered the iner points of the business model, a bank's purposes are still to make loans and
to protect depositors' money. Even today, where digital banking and inancing are replacing traditional brick-and-
mortar locations, banks still exist to perform these fundamental functions.
8. Credit cards
While credit has existed for ages, the irst universal credit card was not introduced until 1950. That year Americans
Ralph Schneider and Frank McNamara founded the Diners Club. Other cards were soon created, and in 1959 American
Express debuted a plastic card. We have IBM to thank for the magnetic stripe on credit cards, which was introduced in
the 1960s to contain account information.
Because of the stripe, merchants no longer needed to make phone calls to obtain authorization from credit companies.
In the 1990s, cards began to have chips embedded in them to encrypt their information, providing even greater security.
Other changes involved account balances. In the beginning, credit card users were required to pay the full balance at the
end of the month. Eventually, American Express allowed consumers to carry balances—though interest was
applied—and other credit companies quickly followed. Customers took advantage of this development—maybe a little
too much. In 2017 American consumers were carrying $1 trillion in credit card debt.
9. Bitcoins
Bitcoin is a digital currency system created in 2009 by an anonymous computer programmer or group of programmers
known as Satoshi Nakamoto. The currency is not issued by a central bank and is not regulated, though a decentralized
network of computers keeps track of transactions. Users of Bitcoins are anonymous, known only by their digital wallet
ID. The value of Bitcoins is determined by bidding, similar to the way stocks are valued. How are Bitcoins created? In a
process called mining. This involves a race between computers to solve complex math problems and thus verify blocks
of transactions. While that may sound easy, it isn't. It's estimated that nearly seven trillion attempts may have to be made
before a solution is discovered. In the end, the owner of the winning computer gets newly created Bitcoins, and the
system is made more secure.
10.Conclusion
The history of money is still being written. The system of exchange has moved from swapping animal skins to minting
coins to printing paper money, and today, we appear to be on the cusp of a massive shift to electronic transactions.
Ancient transaction forms have been co-opted: for example, bartering still occurs on the margins in some markets such
as the business-to-business (B2B) space and some consumer services. The monetary system will surely continue
evolving as long as humans require a medium of exchange.
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Gilt Funds
Dr. Gaurav Nemade

Dr. Sandhyarani Shankardas
GILT IS THE NICKNAME OF GILDED EDGE CERTIFICATES

TYPE OF FUND: DEBT FUND.
INVEST IN GOVERNMENT SECURITIES.
Gilt funds are debt funds that invest primarily in state and central government securities and bonds. They are having
varying maturities. The government bonds used to be issued in golden-edged certi icates. The nickname gilt comes from
gilded edge certi icates.
As per Sebi norms, gilt funds have the mandate to invest at least 80% of their assets in government securities. These
funds have no risk of non-payment of interest or principal amount but get affected by interest rate movements as the
Government borrowing typically happens to be for a longer duration.
Types of GILT funds:
1. Gilt funds – Invests a minimum of 80% of its assets in Government securities. This implies 20% can go anywhere
(again the cocktail problem)
2. Gilt with ten-year constant duration – This fund is the same as above with the added clause that the
maturity(Macaulay's duration) is at least ten years. By de ining the duration, the entire risk pro ile of this fund changes.
How do GILT mutual funds work?

Whenever the state or Central Government requires funds, it asks The Reserve bank of India (Government's bank). The
RBI collects funds from other banks and insurance organizations and lends it to the state and central government . In
exchange, the RBI issues g-sec or government securities with ixed tenure. The gilt funds subscribe to these securities.
Once the security matures , the fund returns it and receives a payout. Back in the early 19th Century, when the
Government would borrow money, they would do so by issuing a bond (a physical paper), on which the terms of the
borrowing were written and signed. The edges of such a bond were laced in Gold, to showcase the sanctity of
Government borrowing. Such bonds issued by the Government were called the 'Gilt-edged bonds', because of golden
edges. The presence of Gold does not eliminate the credit or interest rate risk, at the end of the day, this technically is still
a bond. However, the fact that the borrower is the Government implies that there is virtually zero Credit risk, because,
well, the Government cannot default on debt obligations. The legacy continues, and even today, the bonds issued by the
Government are called a GILT, there is no gold lacing today, but the Sovereign Guarantee still exists. Now, as you can
imagine, a mutual fund that invests predominantly in Government bonds or Gilts is called a 'Gilt Fund'.
Investors should keep in mind that since these schemes invest in government securities, they have zero default risk.
However, they have a very high-interest rate risk. In fact, government securities set the tone for interest rates in the
money market and economy. The mostly traded 10-year government security is considered the benchmark. Its yield
movement sets the tone for trading in the bond market. For example, traders look for trading opportunities based on the
spread or interest rate difference between government bonds and corporate bonds or between the 10-year bond and
other government bonds.
It is extremely important to time the entry and exit in these schemes because they are extremely sensitive to interest
rate movements. They do very well in a falling interest rate regime, but they suffer and start giving negative returns one
the rates start hardening. When the Reserve Bank of India (RBI) starts reducing rates, the demand for government
securities issued earlier goes up because they carry a higher interest rate. When the demand goes up, their price goes up
and yields fall. This is called the inverse relationship between the price and yield of bonds. However, when RBI pauses on
rates or starts hiking policy rates, the opposite trend happens. Since the new bonds will carry a higher interest rate,
demand for older bonds drops or traders sell them. This results in their prices dropping and yields going up.
As said earlier, a falling interest rate regime is great news for gilt funds. In tandem with the price of bonds, the net asset
value (NAV) of these schemes also goes up. Finally, invest in gilt funds only if you can keep track of the interest rate
movements and time your entry and exit in these schemes. Always remember their extreme sensitivity to interest rate
movements in the economy. This means gilt schemes may start going up or down, depending on the interest rate
outlook. The RBI action might come later.
Advantages of Gilt Funds

• Suitable when interest rates in the economy are expected to come down
• Ideal for an investment horizon of at least 3-5 years
• Might see volatility during times of important economic events
Gilt Funds have zero credit risk because they lend to the government. However, they are extremely sensitive to interest
rate changes in the economy because of their long lending duration. As a result, these funds can be extremely volatile in
times of important economic events.
We at Wealthcon, do not advise investing in gilt funds because of its volatility issue. The primary reason for a debt
component in portfolio is to provide it stability and returns above bank deposits. We can achieve this by investing in just
short-duration funds for your medium-term goals and liquid funds for your short-term goals. The rest should not be
encouraged.
References:
www.valueresearchonline.com
economictimes.indiatimes.com
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Critical Illness And
Personal Accidental
Insurance
Dr. Vivek R Nayak
Dr. Vinod Dhole Patil
Dr. V.N. Amogh
1.What is critical illness cover?
Critical illness cover will pay out a cash lump sum (tax-free) to you, if you're diagnosed with a serious medical issue to
cover the high expenses of the disease. The good thing is that this lump sum payout is in addition to any of your
Mediclaim or health insurance policy .
2. Why should one buy a Critical illness bene it?
A Critical Illness bene it can help you cover expenses like doctor consultation fees, the cost of medicines, and more. You
can use the money from a critical illness bene it to cover ambulance costs and room rent along with pre and post-
hospitalisation expenses. Besides, if you have any outstanding loans like a home loan or a car loan, the payout can help
with dealing with the EMIs and also provide income in dif icult times.
3.List of illness covered :
Exclusion criteria
1.Pre-Existing Conditions or conditions connected to a Pre-Existing Condition will be excluded.
2.Existence of any Sexually Transmitted Disease (STD) and its related complications or Acquired Immune De iciency
Syndrome (AIDS) or the presence of any Human Immuno-de iciency Virus
3.Self-in licted injury, suicide, insanity and deliberate participation of the life insured in an illegal or criminal act.
4.Drug abuse
5.War
6.Aviation
8.Treatment for injury or illness caused by activities such as hunting, mountaineering, steeple chasing, professional
sports, racing of any kind, scuba diving, aerial sports, activities such as hand-gliding, ballooning, deliberate exposure to
exceptional danger.
9.Radioactive contamination due to nuclear accident.
10.Failure to seek or follow medical advice, the Life assured has delayed medical treatment in order to circumvent the
waiting period or other conditions and restriction applying to this policy.
11.Any treatment of a donor for the replacement of an organ.
12.A congenital condition of the insured.
PERSONAL ACCIDENTAL INSURANCE
Accidental bodily injury directly resulting in the Death or disablement to insured person
Table of Bene its Percentage of Capital Sum Insured:

1. Accidental Death 100
2. Permanent Total Disability:
a. Loss of sight (both eyes) 100 percent
b. Loss of two limbs 100 percent
c. Permanent Total and absolute 100 percent
disablement as certi ied by
Medical Practitioner
3. Permanent Partial Disability:
4. Temporary Total disablement: bene it at the rate per week for period of con inement or part thereof 1% of C.S.I or
Rs 5000/- whichever is lower for 104 weeks max
Additional Bene its of Personal Accident Insurance Policy:

• Hospital Daily Cash
• Ambulance Expenses
• Transportation or Repatriation of Mortal Remains
• Fractures
• Burns
• Family Transportation Allowance
• Education Advantage: In case of an unexpected demise of the policyholder, the cost of education of the
dependent child is covered up to a speci ied limit.
• Loan Protector: In the event of unexpected demise or lifelong disabilities, a lump sum amount (speci ied in
the policy schedule) is paid.
• Adaptation Allowance (also known as Home Alteration and Vehicle Modi ication Bene it): Some insurers may
offer this bene it. In case of permanent total disabilities or dismemberment due to an unfortunate event,
money has to be spent to modify one's house and/or vehicle is also covered
DOCUMENTS REQUIRED FOR CLAIM PROCEDURE
Death Claim Permanent Total Temporary T otal Disablement

disablement/Permanent Partial
Disablement
Duly illed up claim form Duly illed up claims form Duly illed up claims form
Death Certi icate

Original FIR Original FIR and Panchnama Original FIR and Panchnama

Original Panchnama Hospital discharge card Hospitalization Report

Post mortem report Original Certi icate from Doctor of Hospital discharge card
Govt. Hospital stating the degree of
disability

Termination letter for claim under Original Certi icate from Doctor
“Loss of Employment” of Govt. Hospital stating the
degree of disability

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Taxation:
GST In Healthcare
Industry
Dr. Yusuf Bhambhani
Dr. Shailesh Patil
BASIC CONCEPT OF GST
Taxes are broadly classi ied into Direct Tax (tax imposed directly on the Taxpayer and paid directly to the Government
eg. Income-tax) and Indirect Tax (tax paid by the consumer to the Seller, who pays it to the Government). In Pre-GST
regimen goods were taxed by the both Central and State Government through Central Taxes and State Taxes respectively
as shown in the igure.
Goods and Services Tax (GST) is a comprehensive indirect tax on manufacture, sale and consumption of goods as well as
services and is one of the biggest indirect tax reforms in our country and it replaces all indirect tax (as mentioned above)
levied on goods and services by the Central and State Governments. GST is expected to make India as One nation – One
Tax – One market and to reduce cascading effects (tax on taxes), tax evasion by using more technology for governance,
reduce Cost and complications of Compliances…etc.
GST is levied and collected as three different components which are

• CGST: Central Goods and Services tax – Central govt. portion of the revenue
• SGST: State Goods and Services tax – State govt. portion of the revenue
• IGST: Integrated Goods and Services tax– Common revenue, total of CGST and SGST, levied and Collected by
Central Govt. State's portion is re-distributed among states, at a later point of time.
GST is applicable on all supplies except for Petroleum products (eg.Crude oil, high speed diesel, motor spirit or petrol),
natural gas, aviation turbine fuel, electricity and alcoholic liquor. They may be brought under the preview of GST by the
Government in future.
Goods and Services Tax council (GST Council) is an apex constitutional body under the virtue of Article 279A(1) of the
Constitution. It is a joint forum of the Centre and the States consisting of
• Union Finance Minister – Chairperson
• Union Minister of State, In-charge of Revenue of inance – Member
• Minister In-Charge of Finance or Taxation or any other Minister nominated by State Government Members
The GST Council makes recommendations on everything related to GST including laws, rules and rates etc. GST Council
can recommend exemptions to the Government, and the Government under Section 11 may exempt speci ied
goods/services from GST if it is satis ied that it is necessary in the public interest.
GST in Healthcare
The Central government understanding the importance of health and services supplied by health service sector has
exempted the health care service from the levy of GST, to make the health care services more affordable to the public at
large. (Noti ication No. 12/2017- Central Tax (Rate) New Delhi, the 28th June, 2017). The following are the Goods (Table
1) and Services (Table 2) related to Healthcare which are exempted from GST.
Table 1: Goods related to Healthcare which are exempted from GST
Table 2: Services related to Healthcare which are exempted from GST.
Table 3: List of medicines which are taxable (Noti ication 02/2017 CT-rate)
7TH GST COUNCIL MEETING RECOMMENDATIONS & NOTIFICATIONS
47th GST Council Meeting and made certain decisions & recommendations on 28th & 29th of June, 2022 under GST Law,
2017
Table 4: 47TH GST COUNCIL MEETING RECOMMENDATIONS & NOTIFICATIONS
S no.DescriptionExisting tax rateNew tax rate1Ostomy Appliances 12%5%2Orthopedic appliance- Splints and other
fracture appliances, arti icial parts of the body; other appliances which are worn or carried, or implanted in the body, to
compensate for a defect or disability; intraocular lens12%5%5 IGST on import of Diethylcarbamazine (DEC) tablets
supplied free of cost for National Filariasis Elimination Program. 5%NILC.4:3Common bio-medical waste treatment
facilities for treatment or disposal of biomedical waste, so as to allow them ITC.NIL12%C.4:5Room rent (excluding ICU)
exceeding Rs.5,000/0 per day per patient charged by a hospital shall be taxed to extent of amount charged for the room
at NIL5% without ITC.E.2: 10Services in form of Assisted Reproductive Technology (ART) /In vitro fertilization (IVF)
are covered under the de inition of health care services for the purpose of exemption under GST.--NIL
Table 5: Taxation on the healthcare services of Mr XYZ
It has to be noted that the medicines used for in-patient care by the hospital are exempted as a part of health care
services by the clinical establishment, but medicines bought from counter sales are taxable. Also the stay and food
supplied to the attenders/accompanying person/s is also taxable. Related to plastic surgery, cosmetic procedures and
hair transplant are taxable unless it is done to restore or to reconstruct anatomy or functions of body affected due to
congenital defects, developmental abnormalities, injury or trauma.
In summary, most of the health care services are exempted from GST to a larger extent with some exceptions as
summarized in the following table.
Referrences
1. Singhania VK. Students' Guide to GST & Customs Law. 3rd ed. New Delhi: Taxmann Publications (P.) Ltd.
2. https://taxguru.in/
3. https://taxinformation.cbic.gov.in/
4. https://www.taxmann.com/research/gst
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New Kids
On the Block :
Block-Chain
Dr. Harish Gopal.
Dr. Goviind Paatil (Londhe).
Dr. Sourabh Gandhi.
Blockchain: Introduction, De inition and History
Introduction:
Blockchain, sometimes referred to as distributed ledger technology (DLT), makes the history of any digital asset
unalterable and transparent through the use of a decentralized network and cryptographic hashing.
A simple analogy for how blockchain technology operates can be compared to how a Google Docs document works.
When you create a Google Doc and share it with a group of people, the document is simply distributed instead of copied
or transferred. This creates a decentralized distribution chain that gives everyone access to the base document at the
same time. No one is locked out awaiting changes from another party, while all modi ications to the document are being
recorded in real-time, making changes completely transparent. A signi icant gap to note however is that unlike Google
Docs, original content and data on the blockchain cannot be modi ied once written, adding to its level of security.
De inition:
A blockchain is a distributed database or ledger that is shared among the nodes of a computer network. As a database, a
blockchain stores information electronically in digital format.
Blockchains are best known for their crucial role in cryptocurrency systems, such as Bitcoin, for maintaining a secure
and decentralized record of transactions. The innovation with a blockchain is that it guarantees the idelity and security
of a record of data and generates trust without the need for a trusted third party.
One key difference between a typical database and a blockchain is how the data is structured. A blockchain collects
information together in groups, known as blocks, that hold sets of information.
Blocks have certain storage capacities and, when illed, are closed and linked to the previously illed block, forming a
chain of data known as the blockchain. All new information that follows that freshly added block is compiled into a
newly formed block that will then also be added to the chain once illed.
History :
Cryptographer David Chaum irst proposed a blockchain-like protocol in his 1982 dissertation "Computer Systems
Established, Maintained, and Trusted by Mutually Suspicious Groups." Further work on a cryptographically secured
chain of blocks was described in 1991 by Stuart Haber and W. Scott Stornett.
The irst decentralized blockchain was conceptualized by a person (or group of people) known as Satoshi Nakamoto in
2008. Nakamoto improved the design in an important way using a Hashcash-like method to timestamp blocks without
requiring them to be signed by a trusted party and introducing a dif iculty parameter to stabilize the rate at which blocks
are added to the chain. The design was implemented the following year by Nakamoto as a core component of the
cryptocurrency bitcoin, where it serves as the public ledger for all transactions on the network.
In August 2014, the bitcoin blockchain ile size, containing records of all transactions that have occurred on the network,
reached 20 GB.
In January 2015, the size had grown to almost 30 GB, and from January 2016 to January 2017, the bitcoin blockchain
grew from 50 GB to 100 GB in size. The ledger size had exceeded 200 GB by early 2020.
The words block and chain were used separately in Satoshi Nakamoto's original paper, but were eventually popularized
as a single word, blockchain, by 2016.
Industry trade groups joined to create the Global Blockchain Forum in 2016, an initiative of the chamber of digital
commerce.
Technology-Principles & Real-world Applications
What is blockchain?
It is a Decentralised Distributed Transparent Digital Ledger. An online distribution system which stores information
based on interconnected blocks which are accessible to all.
How is blockchain created?
It is a Chain of many digital blocks with the irst block being called the Genesis Block.
Each block contains three things:
1. Data -It is the information we store on blocks and that depends upon the type of blockchain e.g., cryptocurrency;
stores information of sender, receiver and transactions.
2. Hash of that block - It's Fingerprint of that block, it's always unique for each block and helps to identify that block.
3. Hash of its previous block which connects the current block with remaining blocks of blockchain.
• To change Hash of a single block it requires 10 min approximately.
• Blockchain works on peer to peer consensus, that means there is no central power ,all information is available
for everyone. You need 50% consensus to make any change in data/Hash of a single block. This makes it very
dif icult for someone to hack or alter data. It's immutable.
What are the applications and uses of Blockchain technology?
Blockchain applications go far beyond cryptocurrency and bitcoin. With its ability to create more transparency and
fairness while also saving businesses time and money, the technology is impacting a variety of sectors in ways that range
from how contracts are enforced to making government work more ef iciently.
Blockchain technology can be used in various ields like

• Money transfer
• Smart contracts
• Internet of Things (IoT)
• Healthcare
• Logistics
• Non-fungible tokens (NFTs)
• Government
• Media
Money transfer through blockchain technology eliminates bureaucratic red tape, making ledger systems real-time and
reduces third-party fees. Blockchain can save the largest banks a lot of money. Many inancial institutions started using
blockchain to ef iciently transfer money.
Blockchain smart contracts are like regular contracts except the rules of the contract are enforced in real-time on a
blockchain, which eliminates the middleman and adds levels of accountability for all parties involved in a way not
possible with traditional agreements. This saves businesses time and money, while also ensuring compliance from
everyone involved. Blockchain-based contracts are becoming more and more popular as sectors like government,
healthcare and the real estate industry.
The Internet of Things (IoT) is the next logical boom in blockchain applications. Blockchain infused IoT adds a higher
level of security to prevent data breaches.
Blockchain in Healthcare, though early in its adoption, is already showing some promise to reduce healthcare costs,
improve access to information like health insurance of patients, past history and treatment records, pharmaceutical
drugs supply-chain transparency and distribution etc.
Blockchain in logistics
A major problem in the shipping industry is the lack of communication and transparency due to the large number of
logistics companies and multiple hands involved in supply chain management. Shipping giant DHL is at the forefront of
blockchain-backed logistics, using it to keep a digital ledger of shipments and maintain integrity of transactions.
Blockchain is not only safe, but a cost-effective solution for the logistics industry.
Blockchain in government can help to secure government documents, improve bureaucratic ef iciency, accountability
and reduce massive inancial burdens. Blockchain may also revolutionise our elections. Blockchain-based voting could
improve civic engagement by providing a high level of security and incorruptibility that allows voting to be done on
mobile devices. Blockchain technology may solve many problems in media like data privacy, royalty payments and
piracy of intellectual property by providing data integrity and transparent ledger system.
Non-fungible Tokens (NFTs) are digital items, like music, art, GIFs and videos that are sold on a blockchain, ensuring
that a sole owner can claim full rights to it. Due to blockchain technology, consumers can now claim sole ownership over
their digital assets.
ADVANTAGES OF BLOCKCHAIN:
Enhanced security
Your data is sensitive and crucial, and blockchain can signi icantly change how your critical information is viewed. By
creating a record that can't be altered and is encrypted end-to-end, blockchain helps prevent fraud and unauthorised
activity. Privacy issues can also be addressed on blockchain by anonymizing personal data and using permissions to
prevent access. Information is stored across a network of computers rather than a single server, making it dif icult for
hackers to view data.
Greater transparency
Without blockchain, each organisation has to keep a separate database. Because blockchain uses a distributed ledger,
transactions and data are recorded identically in multiple locations. All network participants with permissioned access
see the same information at the same time, providing full transparency. All transactions are immutability recorded, and
are time- and date-stamped. This enables members to view the entire history of a transaction and virtually eliminates
any opportunity for fraud.
Instant traceability
Blockchain creates an audit trail that documents the provenance of an asset at every step on its journey. In industries
where consumers are concerned about environmental or human rights issues surrounding a product — or an industry
troubled by counterfeiting and fraud — this helps provide the proof. With blockchain, it is possible to share data about
provenance directly with customers. Traceability data can also expose weaknesses in any supply chain — where goods
might sit on a loading dock awaiting transit.
Increased ef iciency and speed
Traditional paper-heavy processes are time-consuming, prone to human error, and often requires third-party
mediation. By streamlining these processes with blockchain, transactions can be completed faster and more ef iciently.
Documentation can be stored on the blockchain along with transaction details, eliminating the need to exchange paper.
There's no need to reconcile multiple ledgers, so clearing and settlement can be much faster.
Automation
Transactions can even be automated with “smart contracts,” which increase your ef iciency and speed the process even
further. Once pre-speci ied conditions are met, the next step in transaction or process is automatically triggered. Smart
contracts reduce human intervention as well as reliance on third parties to verify that terms of a contract have been met.
In insurance, for example, once a customer has provided all necessary documentation to ile a claim, the claim can
automatically be settled and paid.
DRAWBACKS OF BLOCKCHAIN
Each coin has a lip side. Blockchain is a notch above its infancy today, and there are some drawbacks with the technology
that needs to be handled before it can be widely used for everyday transactions.
Scalability – Blockchain's application Bitcoin is massively popular. However, it can only handle seven transactions per
second, where Hyprledger can handle 10,000 and Visa 24,000. The practical use of blockchain gets a bit hard to imagine
with the issue of scalability in view. Each participant node needs to verify and approve a transaction, and so one Bitcoin
exchange can take up to several hours.
Storage – Since blockchain databases are stored inde initely on all network nodes, the issue of storage surfaces. With
the increasing number of transactions, the size of the database will only expand, and there is no way personal computers
can store unlimited data which just gets appended. To put this in perspective, the Ethereum blockchain is increasing at
the speed of 55 GB/year.
Privacy – Data on a public blockchain is encrypted and anonymous, but lies in the hands of all nodes in the network. So,
everyone in the network has rightful access to this data. There is a possibility someone could track down the identity of a
person in the network through transactional data, just as web trackers and cookies are used by businesses normally.
This proves that blockchain is not 100 percent secure, unfortunately.
Regulations – Regulatory regimes in the inancial arena are a challenge for blockchain's implementation. Blockchain
applications will have to lay down the process of pinpointing the culprit in case a fraud takes place, which is a bit of a
challenge. Other regulatory aspects of blockchain technology will need to be laid down irst in order to facilitate its
broad adoption.
Security – Satoshi Nakamoto highlighted the '51% attack' when he launched Bitcoin. The attack can be simply put like
this – if 51% of the nodes in a network lie, the lie will have to be accepted as truth. Therefore, everyone in the network
will have to continually have a watch on it to perceive any unwanted in luence.
FUTURE OF BLOCKCHAIN
1. Use in Digital Advertising
Digital advertisers and brands are facing several challenges in the form of bot traf ic, payment inef iciencies, lack of data
transparency, etc. With some industry players indulging in malpractices to drive pro its, it has become ever so important
for others to take corrective measures. Decentralized veri ication can address issues in payments and fake traf ic. This
makes the future of blockchain in digital advertising quite imminent.
2. Implementation in Finance
Security, and transparency are two of the underlying features of Blockchain, and the inance world was amongst the
early adopters in this revolution. With blockchain implementation, sectors like trade inance witnessed reduced
processing time, eliminated paperwork, and became cost-ef icient while maintaining security and trust.
In inance, there is always a risk of manipulation of data and information. With the help of distributed ledgers,
companies have been able to remove such intermediaries that hold central control over databases. Any change or
modi ication in the ledger goes through multiple participants on the network and is veri ied through consensus.
3. Consolidation of Cloud Storage
Cloud storage and cybersecurity are two such areas that can signi icantly harness the potential of blockchain to enhance
its value proposition. Centralized servers have always been prone to attacks and data theft, but blockchain
implementation has the potential to considerably bring down such threats. Cloud storage and development are
becoming a norm and with such scale, there is going to be a need for robust and secure systems.
4. Supply Chain Management
It may sound strange, as to how can blockchain possibly impact the supply chain sector but companies, such as Walmart
have successfully used blockchain technology in the various cycles of their supply chain. This has helped them in
authenticating the product quality and anticipate delivery schedules, hence impacting the overall value delivered to the
consumer. Retail businesses have been able to track the origin, quality, and shelf-life of products with the help of
blockchain implementation.
5. Revolutionizing the Travel Industry
One more surprising application of blockchain is in the travel industry. There are few players in the industry that have
been experimenting with such applications to make travel more cost-effective. It is a well-known fact that travel and
tourism are run by intermediaries and middlemen. This increases the price of any purchase in this domain by a
signi icant number.
These companies are working on developing systems that can connect the seller and the buyer directly through a
network. The outcomes of these experiments have been reassuring and tourism is quite likely to become a large-scale
adopter of blockchain technology.
6. Implementation in Banking and Insurance
Like other aforementioned legacy businesses, blockchain technology has been making a notable presence in the
banking world. Barclays was one of the earliest banks to deploy distributed ledger systems in its processes.
Many banks have been bene itting from the full-scale implementation of blockchain. In insurance, the emergence of
smart contracts has led to many exciting possibilities. The insurance industry is heavy on documentation and
paperwork, which always makes the processes slower. But with decentralized ledgers and smart contracts, the industry
is looking towards a massive facelift.
7. Internet of Things
IoT networks and products collect a massive amount of data to enhance user experience. Blockchain networks can
protect this data and create better automation within the services of the IoT network. As the technology evolves, its
interaction with IoT networks will also evolve and more possibilities will surface.
Blockchain is making its space in almost all sorts of industries and there will be a huge demand for blockchain engineers
and developers across all these markets. By 2024, Blockchain is expected to become a $20 billion market.
The current global situation has also created a space for remote blockchain jobs. Even government of ices and public
banks are adopting this technology at scale and trying to keep up with changing trends in the market. Security and
transparency are crucial for all businesses processes and the adoption rate of blockchain networks is further solidifying
the fact.
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Electric Vehicles
& Its Future
Dr. Ramesh Hasani Dr. Darshan Kulkarni
Dr. Saurabh Pandya Dr. Shirish Narsapur
Introduction
Electric cars have come a long way from the irst electric carriages. They have a history which is more than 180 yrs. old as
of today. Akin to the market movements, EVs have seen lots of ups and downs, with having nearly a 30% share in the
vehicle market during the early 1900s to virtually disappearing form the roads with the advent of ICE (Internal
Combustion Engines) which relied on gasoline (petrol). Decades later, growing environmental concerns gradually
spurred their revival along with excellent technological advances and currently their growth isn't gradual anymore.
According to Bloomberg New Energy Finance estimates, by 2040, EVs would have captured 50% of the world vehicle
market. Here is a quick look back on the electric vehicle's past.
Types of EV
Solar, Hybrid & Battery power electric vehicles
History of EV in India
1996 – Scooters India Pvt. Ltd made the irst electric vehicle in India which was a 3-wheeler named VIKRAM SAFA.
2000 – BHEL made an 18-seater electric bus which became very popular.
2001 – REVAi (erstwhile Reva) manufactured by Reva electric Car Company in Bangalore, paved the way for EVs in India.
Environmental Impacts of EV.

Although EVs have much smaller environmental footprints in comparison to the ICE vehicles as they have little or no
tailpipe emissions and reduce dependence on petroleum, impacts of greenhouse emissions and health problems related
to it, aspects of their production can induce similar, less or alternative impacts. We can broadly divide the impacts into
positive and negative ones.
India automotive parts industry- turnover 3.95 lakh crores (USD 57B) 2018-19. 2.3% to India's GDP, 25% to
manufacturing GDP. Employment to 50 L people. Exports worth >1 lakh crore (USD 15.16B). 30% export revenue from
powertrain related components for ICE vehicles. Currently 2W penetration 2.5% and EV penetration 1%.
Major changes:
1. Niti Aayog—electrify 3W by 2023 and 2W by 2025. Aim for 40% EV penetration of mass mobility vehicles
(2W,3W, buses) by 2030. (Global forecast is 30% by 2030).
2. Emergence of connected, shared and autonomous mobility, mixture of EV, ICE, Ethanol-blending, Hydrogen \
powered vehicles.
3. In EV, cost composition heavily skewed towards battery pack and software.
4. Lesser number of components, so less maintenance and aftermarket sales. Traditionally after-market sales
67k crore (USD10.1B). So, decline in replacement revenue.
5. Composition of accessories may change, less dashboard accessories and more infotainment for passenger
seats, more telematics.
6. Govt linking subsidies with level of localization of automobile.
7. Lithium-ion battery manufacturing started from scratch.
Key areas
1. Investment in R&D.
2. Focus on components having higher cost composition in EV powertrain
3. Securing supply of raw materials, lithium, cobalt, rare earths.
4. Forging right partnerships
5. Skilling initiatives
Potential:
Crisil--- EV components market revenue 4300 cr, likely to increase at CAGR 76% to 72500 cr by 2027. EV share from 1%
to 11%. Batteries would make 60% of EV component revenue, drivetrains 15%, electronics 15% and others 10%.
So established ICE OEMs and New-age pure-play EV makers will compete.
90% of EV component supplies will be for 2W and PV.
Snapshot of Basic Fundamentals of top EV companies
Govt. Policies regarding EV
The GOI is committed to the Paris Agreement and has plans to make a major shift to electric vehicles by 2030. Offering
$1.4 billion in subsidies to buyers, hike on import tariffs to increase manufacturing of these vehicles by domestic
companies. Focus is to electrify public transportation. $140 million to develop charging infrastructure which should
further help the development of the EV industry in India.
Energy Ef iciency Services Limited (EESL) is procuring 10,000 number of EVs from reputed manufacturers for
distribution to Government Departments on rental model and upfront sale model.
Union Govt. programs and aims
NEMMP – National Electric Mobility Mission Plan - aim of improving the national fuel security through the promotion of
hybrid and electric vehicles.
FAME – Faster Adoption & Manufacturing of (Hybrid) & Electric vehicles - provides incentives for purchasing electric
vehicles.
GEC – Go Electric Campaign – Launched most recently by the Union Minister of Transportation Shri. Nitin Gadkari,
emphasizes on use of electricity as main source of energy over fossil fuels.
No only has this facilitated increase in EV production and usage in India, it has also helped the economy grow with
multiple supportive and ancillary companies enhance their production and sales such as Power generation companies,
charging stations, Lithium-ion battery companies, chemical companies, car software design companies etc.
Charging Infrastructure for Electric Vehicles
To fast-track the adoption of EVs in India, the government is planning to install up to 70,000 EV chargers across the
country in the next few years. At least 22,000 EV charging stations will be set up using the facility of 70,000 petrol
pumps. For this, oil companies like Indian Oil Corporation and BPCL have already pledged to use their outlets to set up
17,000 EV charging centers.
Companies are tying up with startups to tap into this opportunity. Hero Electric has already announced a collaboration
with Bengaluru-based EV charging start-up Charger to establish one lakh charging stations across India.
Top 5 EV charging station companies in India
EV Space
Chemicals
Chemicals companies have entered the lithium-ion battery business, where they plan to build an integrated business
which includes cell manufacturing, battery recycling, and battery production. The top stocks involved in this space are
Tata Chemicals, Gujarat Fluorochemicals, Neogen Chemicals, and recently listed Tatva Chintan Pharma. Gujarat
Fluorochemicals is in the process of setting up an integrated battery chemicals complex. Meanwhile, Tatva Chintan
Pharma is India's sole distributor of chemicals used in zeolite crystals for the manufacturing of detergents, air puri iers,
and dietary supplements.
Auto Ancillaries
Indian auto ancillary companies are working with global players in areas like wiring harnesses, rearview mirrors,
cockpits, bumpers, and more. Companies including Sona BLW Precision, Motherson Sumi, Suprajit Engineering, Minda
Industries, and Fiem Industries have announced acquisitions of EV tech companies or are ramping up their component
business with an eye on the global market as well.
Software
Automobile companies are investing more in R&D. Spending by auto companies is expected to increase by 6.5% on
average, with a focus on software. The company is engaged with leading OEMs and systems suppliers for the
development of next-generation hybrid vehicles. Meanwhile, L&T Technology's focus on disruptive businesses give it an
edge over peers. It has invested in electric, autonomous and connected vehicles, medtech, 5G, arti icial intelligence, and
digital products.
PET Films
Did you know that thin polyester (PET) ilms with packaging are used in electric vehicle industry? Polyester ilm is used
in lithium-Ion batteries, and also used to control energy and power density and to increase the safety and life cycle of the
battery.
Here is a glance on these companies' MPTDS and MDSPORT validity.

Only strict uptrends in PTDS are considered valid. Market cap less than 10000 cr is labelled Not Applicable (NA) in
MPTDS. Incomplete data for last 5 years in Motherson Sumi hence labelled NA in MDSPORT
Future of EV
The Indian automobile industry is currently the world's 5th largest and slated to be the third largest by 2030.
Requirement of mobility is said to change dramatically in the near future to cater to the requirement of 1.30 billion
population. 84% of India's oil requirement is imported all of which goes into transportation needs. Major chunk of the
most polluted cities of the world are in India. Air pollution brings health hazards including respiratory and skin diseases
blood diseases and cancer.
All cars use Diesel /Petrol /LNG/ CNG i.e., non-renewable resources all of which will end one day though not probably in
our lifetime. Private sector has accepted the inevitability of the dominance of electric vehicles. Pizza giants like Dominos
and many other food joints who have their own delivery services have completely shifted to Ev's while many companies
like Amazon, Swiggy, Zomato, IKEA etc. also are changing over to them.
India as a whole has 1.5% of electric vehicles while Delhi has 9%. This was a market of US dollars 5 billion in 2020 slated
to be 47 billion in 2025 that is cagr of 44%. Electric 2-wheeler sales have risen by 145% in the last 2 years. Indian Oil
Corporation plans 10000 charging stations in the next 3 years, many at existing petrol stations.
BP plans 7000 in the next 3 years. Many private players are entering the fray. NHAI is planning charging stations on all
Highways at 40 to 60 km distance many of them will be solar powered. Although the charging infrastructure in India is
miniscule at present it is growing exponentially every year.
Out of 430000 electric vehicles sold last year 18000 were cars and rest were mopeds two wheelers and three wheelers.
Today 1% of two wheelers are electric and this igure will reach 15% by 2025. Amitabh Kant the CEO of Niti Aayog has
said that the transition to electric vehicles will be a game changer but it has to come hand in hand with increased in
electricity production.
The way ahead solutions
Extensive electri ied accessible cheap public transport promoting last Mile connectivity is the need of the hour to reduce
the dependency of personal transport be it car, two wheelers or three wheelers, may they be fuel burning or electri ied.
Investment in local research and development required to bring the prices down.
Sensitization and education of the public is needed to promote the electric vehicles responsibly and not as a panacea to
all problems. Viable electricity production and pricing including moving to renewable energy platform like solar and
wind and maybe moving to nuclear power. Retro itment of EV kits to older cars can bring costs down.
Battery swapping can reduce the range anxiety and overcome lack of charging infrastructure. Chetan Maini of electric
car Reva fame has already started it in Delhi.
Wealthcon View
India needs to be genuinely EV ready by setting up the proper infrastructure and necessary technology to support EV
manufacturing. Also, provisions must be made so that old vehicles can be converted into hybrid ones through
retro itting so as to reduce the rising pollution levels.
From a inancial view point to extract an advantage from this whole business is a mess. On one hand we have traditional
auto makers and automobile auto ancillary component manufacturers who are plunging head irst into the business. On
the other we have a host of start-ups with surprisingly high amount of funding ready to derail the big players. In such a
scenario picking the right stocks to ride the EV boom is a big headache.
Mutual Funds would possibly be an answer but till date there is only one - MIRAE ASSET Global electric and autonomous
fund of funds ETF. This shows that even Mutual Funds are wary of investing based on pure EV play.
EV stocks are expected to become multi-baggers in the years to come and its not just the vehicles but the entire EV space
as slowly but steadily there has been a transition from ICE (internal combustion engines) to electric ones. Investing in
the right stock in this sector can create a fortune. It will be prudent to wait and watch.
Conclusion
Electri ication is inevitable although it won't replace fuel cars completely, for example can you imagine going to war with
electric tanks in Ladakh!! Even the most optimistic estimates put that the world's largest electric car market the USA
will achieve 50% electri ication by 2025. Of course, as research and development improve technology and experience
improves, we will see improvement in the cost, range and overall peace of mind, but this technology will take time to
evolve solidify and trench itself irmly in our mindset. There will be many twists and turns on the way.
However, it a consensus opinion that battery electric vehicles are probably a stop gap option till something more
practical like Hydrogen Fuel Cell vehicles or [don't laugh] nuclear powered vehicles arrive. Maybe not in our lifetime.
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How To Teach
Finance to Children :
Part 2
r. Sandeep Kavade
D
Dr. Sachin M. Bote
Entrepreneurship is seen a buzz word since Shark Tank blazed on our television sets. Hearing stories of Unicorn start-
ups and 20 something old with net valuation of 1k crore of valuation are the new glamour stories in town.
Everybody wants their kids to have that wonderful idea which will give him instant fame and success. Entrepreneurship
courses are presented as magic pills to activate some nascent gene in our kids and next generation will be illed with
Musk, Bezos making billion dollars a day.
Let us irst understand qualities required to become Entrepreneurs

• Conviction
• Innovative thinking
• Persistence
• Problem Solving
• Team Building
• Resilience
• Effective communication
• Handling failure
Entrepreneurs often have big ideas and even bigger goals and most certainly think outside of the box in their journey to
meeting those goals.
Indian parents want security to be the foremost quality in their child's future. Uncertainty in child's future worries us.
Indian children even though talented in their ield take time to get of their parent's shadows, especially when parents
are doctors.
Teaching entrepreneurship may not make your kids the next Musk or Bezos but will set then on a lifelong pathway of
independence. Entrepreneurial skills force them to keep on learning and problem solving. Such a person always
achieves far better than whatever raw talent they have.
For developing entrepreneurship in kids irst we need to change our parenting outlook
1) Children should be allowed to fail

We must focus on efforts or by our children and not only on the results they achieve. As parents we must stop
comparison to peers and help them develop their own unique voice.
2) Novel situations bring newer challenges

Struggle is a teacher and children must be allowed to struggle against problems and not just spoon-fed solutions.
3) Ensuring safety in not synonymous with closeting child from world

Children must be allowed to face the world as it is. When we closet then in our gated societies away from realities of life,
they may be safe for time being. However as grow out of this protection many times they cannot take even basic
decisions independently.
4) Allow children to challenge you and your opinions

Many parents great that when children go out in world, they will be outspoken, it will encourage children to challenge
parents, and home traditions. It is important to teach how to put point across without belittling others. This must not
come at the cost of their ability to express opinions. However wrong you may feel, children must be allowed to test their
views in the world. This experiential learning will stay with them for lifetime.
5) Mistakes are good

when they irst try there will be many mistakes some very foolish ones. Discuss their planning, their approach with
them. Please do not criticise only because results were not favourable.
6) Motivation by involvement, praise

Value and praise their independence. When they are trying out in newer challenging ields appreciate their efforts. Be
involved as a team member, guide, thinking board etc. The world has enough opponents to throw at them, you don't need
to become one more.
7) Share your concerns with them

If you think children are mistaken or on wrong path, share your concerns with them. Ask them how they envision
solutions to your worries. Listen to them with open mind. If you have contrary view, share it but the decision must be the
child's.
8) Don't worry what your peers' relatives say

Most of your peers have the same mentality as you. They too value security and comfort zone overgrowth. Avoiding risk
never allows growth and entrepreneurship. However, managing risk must be learned.
9) Keep company of people who encourage such thinking

Around us there are many silent heroes. The humble entrepreneur who achieved success beyond his humble
background. Take children to meet such role models, instead of following temporary social media stars.
• Entrepreneurship will need knowledge about Finance. They should know how to handle the income, expense and
saving. so, to make your kids realise this thing you need to show them by example.
• If you want your kid to have a business then irst involve them in the family budget. Because they need to handle a
big business budget, company budget when they become entrepreneur. With this involvement they will learn
about planning for expenses, saving for future.
• For any business discipline, goal planning is important. Teach them that investment and saving should be goal
based, disciplined and automatic.
• Show them how you have planned for future investment, their education, your retirement, and any medical
emergency.
• Ask them to make a small budget for their expenses.
• Small step towards becoming entrepreneur is to have own bank account and management of inances by own. So,
start with their bank account.
• Children about 10 years: you can open bank account on their name. give them monthly pocket money. ask them to
deposit that money into their bank account, show them physical process of depositing money into Bank. show
them online process of transfer of money from the bank account. take them to ATM and show them how to
withdraw money from the ATM by using ATM debit card. highlight the importance of password and keeping
personal information safe.
• Give them reward if they make their budget and follow it. ask them to show you their monthly expenses and saving.
Ask them to make up small picnic plan and fund it from their saving. encourage them to plan expenses of picnic.
• For any business loan is essential, so they should know about good loan, bad loans. Explain them different types of
loans like education loan, home loan, car loan etc teach them how to use loan judiciously. Never overindulge into
loan. debt free life is bliss
• Show them how much EMI you are paying for different types of loan and why some loans may be helpful like home
loan
• Adolescent kids: you can teach basics of mutual fund sip, diversi ication of asset, goal-based investment, basic of
stock market.
• Encourage them to have active participation in Wealthcon FINE group which will develop their skill to become
leader and Entrepreneur.
Practical ideas to encourage Entrepreneurship among children:
Children should be shown live example.
Visual memory has more impact
Show them working of any Industry, business nearby your place like big
Milk dairy sugar plant, cotton Industry etc
Explain them how they procure raw products, how the processing goes on and how management handles account and
manpower, labour.
Teach them to treat subordinate, labourer with respect.
Character is not assessed by how people behave with their superior or colleague but how they behave with their
subordinates.
Take them to paper Industry, shoes Industry, biscuit Industry. Show them it is working pattern.
Children will correlate well because it is related to their day-to-day usage.
We should encourage school management, teachers to arrange school business trip to such industries
Entrepreneur have always been outliers in society. It is very easy to hear about Bill Gates, Mark Zuckerberg today when
how they dropped out of school to make their billions. Now imagine your 20-year-old son or daughter deciding to take a
break from education to pursue their dreams, how really would you feel. Let us be the parents who nurture
entrepreneurial life skills in our children along with passion for learning, academic or otherwise.
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My Wealthcon
Journey
Dr. Prajakta Ahire
I, being anesthesiologist, always understood limitations of private practice from beginning. And to reduce the
dependency on medical practice I started inding out ways to create parallel source of income.
I started regular mutual fund investment in 2013 and found it interesting that my money is earning money for me. I
wished to explore the topic of money management but I had no clue from where to begin. When I would talk with my
colleagues and friends about it or share market I realized that they don't talk, they are not comfortable disclosing that
they invest in direct equity.
Somehow with the help of a senior and respectable colleague I started direct equity investment but I was not aware what
I am doing.
I started reading whatever I could and but it was all scattered. And then came Nashik 2017 wealthcon…. things started
changing for good after that.
Dr. Ram, founder of Wealthcon, younger than many sitting in hall when told that he has already achieved inancial
freedom everyone including me was astonished. When he systematically showed difference between direct and regular
mutual funds, my arguments of 'its ok to give 1% to agent, ultimately my money is growing 'just vanished like a camphor.
I was not aware that I am witnessing a beginning of history. I attended couple of physical conferences of wealthcon in
Mumbai. Now I knew what I want and how to reach there.
Then came a TMP…. I attended TMP in Mumbai. But I was not convinced about it…my mind would think, how can one put
10 lacs in a single trade ? But Ram sir's con idence, grit, conviction and hardwork for teaching proved me wrong. I started
doing TMP trades.
I am a TMP guide now…and it gives me immense happiness when I add value to my scholar's life. There are other
intangible bene its too there in my life because of association with Wealthcon… To name few...
1.Healthcon meets – It was easiest way for me to learn about exercise, diet and sleep from expert itness enthusiast
doctors of wealthcon. All these meets keep me motivated to remain physically it.
2. Mind management - BAT, ATAA technique, last hour of tmp session really helps me managing other non- inance fronts
of life.
3.Simplism, Bhagvad Geeta, Students of Dr Ram channels – Messages of these groups help me in exploring the domain of
'I don't know that I don't know '…they are de initely a value addition.
4. Many punchlines of Ram sir help managing day to day dif iculties. e.g. 10% people will always betray you, focus on
worthy people. Don't stop doing good karma. Accidents happen at top.
Everyone is at different phases of evolution . Now I have started thinking, dreaming big with a long-term vision …. not
only in inance but overall in my life.
बडा सोचो लं बा सोचो !

It has become a inancial, physical and spiritual journey now.
Thank you Dr. Ram. Thank you Wealthcon.
My Wealthcon
Journey
Dr. Divyesh Joshi
I was a passive investor about two years back. Having inherited stocks in SIP and regular mutual funds suggested by ऐरा,
ु ैरा , PMS with 2-½% management fees, number of ignorance policies with different insurance companies
ग़रैा, नथख
including ULIPS.
Surat doctors had a group to discuss about stocks “Docs in Stocks”. Someone from the group suggested to me about
joining Wealthcon and I did that. It was my irst stepping stone.
While going through the messages of the Wealthcon group, one ine day I came across TMP course, where I applied with
full con idence of not getting selected. To my surprise, I was selected.
My training started with making the payment for the course. I did not know how to transfer the money by net banking.
For me net banking was just paying bills without standing in a queue. After the payment was done, I received the irst
email about what is the program, which also had a word FNO. I started shivering since FnO was a taboo for me. I called Dr
Ram Sir, told that I don't want to continue this program. It is not meant for me since I had to learn from the basic course.
He said no refunds. I told he can use the money for the basic course. But he also said you will “learn” a lot from TMP (He
didn't say “earn” a lot). The Pentadal was already formed and there was one person from Surat. I knew him so I called
him. He encouraged me saying that you already paid for the course, why don't you continue. He was Dr Brijesh Sapariya.
The rest is history. I completed TMP course from August to October 2020 (Volatility batch). I tried to learn every day and
it was good since I was a blank paper for equity and FnO.
I stopped the PMS, SIPs, surrendered the various ignorance policies and took redemption from mutual funds by visiting
local of ices of each mutual funds personally. I opened three accounts in Zerodha, namely mine, my spouse and my HUF.
I did every assignment of the program since unfortunately I had a lot of time due to lock down due to Covid. Since there
was zero road traf ic accidents the bread-and-butter of a trauma surgeon was lost but I had the capital and got
conviction and courage from the mentor Dr Ram Sir.
At my age when people shift from equity to debt, capital growth to capital protection, I became an active investor and
passive trade with motto of “pro it with peace”.
Suddenly one good day, my PPF account of HUF got matured and the corpus was shifted to my savings account. HUF
become a businessman for FnO, earning nearly ₹50,000 per month. I also did CT, PEFG, AIC, BG and Tuesday Meets,
anything and everything that was offered by Dr Ram Sir. I also became a guide for all the following batches of TMP.
My Wealthcon
Journey
Dr. Amol Deshmukh
Friends,
I am very much lucky to have very close friend and my undergraduate batchmate Dr.Balkrishna Nagargoje.
He use to tell us (way back in 2017) that investment and insurance should not be mixed. You must buy term insurance
separately and investment must be separate.He use to tell me about Ram sir. Actually at that time even share market
docs Whatsapp group was not formed.
Then Ram sir announced Pune's irst conference of Wealthcon in 2017.Due to some unavoidable reasons I couldn't
attend that but soon in January 2018 Ram sir announced Annual conference at Kokilaben Ambani Hospital, Mumbai. I
attended that and after that my eyes were opened suddenly, I got exposed to new world of inance.I was nowhere in
equity (direct shares) and was having couple of ignorance policies
( luckily).Saving and investing for me at that time was limited to regular mutual funds investment for 80c only.Ram Sir's
POPS and PONS, class signature, CAARE, MPTDS was very new thing for me.
Actually I had opened DMAT account in IIFL in 2006.At that time I was not even able to understand the language of
trading terminal of that broker. I purchased few shares of course as per broker advice on phone call and without zero
knowledge of equity market.Then my father in law transferred his physical shares worth Rs 1.5 lacs ( Reliance) in my
account as he wanted to Dematerialize it.My Relationship manager did fraudulent F&O transactions in my account
without my knowledge and all my shares got liquidated within 2 days.Imagine my father in law's shares getting
liquidated in my account. After that I kept that account dormant and with some pressure tactics on relationship
manager I could recover 1 lac from him.
But after 2018 conference, it gave me con idence to invest in equity market again.While returning from conference only
we (Panvel Gang) started talking about economy, MPTDS,CAARE etc. Thus we changed our class to wealthy class as per
Ram Sir's class signature( Wealthy people discuss about economy,GDP, Fiscal de icit according to class signature of Ram
sir).I immediately opened another DMAT in Zerodha and transferred remaining shares ( bacha ,kucha) from IIFL to
zerodha.Afterthat I closed IIFL DMAT account. Surrendered all ignorance policies. Converted all mutual funds to direct
mutual fund. I did it for my in laws as well for my brother in law as all of them having regular mutual funds.
I attended all the conferences in Mumbai after 2018.Then Ram sir announced 1 st batch of TMP.We all Panvel Gang
joined again and did TMP in 1st batch only. But actually that time I couldn't understand TMP concepts to the level which
will give con idence to take trades.
Then Ram sir took refresher course for our batch and after that I started taking TMP trades. Subsequently Ram sir made
me Guide for new TMP batch and I am guide till today from that time.
After that Ram sir announced Wealthcon club formation all over India. He got four applications from Panvel and all got
sanctioned .But it was not possible to run four clubs in Panvel. So we merged it one and very close friend and my UG
batchmate Dr.Vinod Dhole Patil became Club admin and we all Panvel Gang was there with him.It was the irst club
inaugurated by auspicious hands of our Mentor Ram sir and most thrilling for me was giving speech in front of him. From
that day I became of icial Wealthcon speaker.
I have attended maximum Tuesday meets as well as Basic investor course.
Then sir started speak mind channel and which was giving feelings of my inner voice and I was seeing changes in mine.
Then covid came and Ram sir started Bhagwad GEETA sessions online. I attended almost all the sessions live .I use to
write notes after every session of it.It has transformed my life completely. 100 plus sessions on Bhagwad GEETA has
been taken by Ram Sir. After its completion I became nervous as I was missing those 6.20 am sessions.
After that Ram sir started Simplism sessions and taught us many life lessons, meditation and tracking. It was again
amazing.
My Wealthcon
Journey
With Members demand again Ram sir started BHAGWAD GEETA sessions in September 21.
I was so happy to hear this and again I got opportunity to clear my concepts of “way of life”.
This time Ram Sir gave me opportunity to take BHAGWAD GEETA sessions (As he was not well)...
It came as a sudden shock and surprise and I just said yes to him ,but later on I just became blank because taking session
GEETA was not easy for me.But I accepted it. I took 10 sessions, and after that Ram sir continued again. But unfortunately
it couldn't got complete this time. Friends for recording 20 minutes video I was taking 3-4 hours to prepare myself. I use
to send videos to Dr.Vinod Dhole Patil and Natasha madam at 2 am for editing. Still Natasha Madam was editing it and Dr
Vinod was posting it at 6.20 am sharp. It was very amazing experience .I use to go in different plane of thought process. I
couldn't believe that It is me who is speaking (after watching videos again).
Then Ram sir announced mission 50 k ,that is teaching inance to 50 thousand Doctors.
As a part of this he made me faculty to speak in basic investor course. So Ram sir has given me so much apart from
inancial knowledge that I can't imagine.Wealthcon is my life now and RAM sir is my lifelong Guru and Mentor. RAM (
Ram Sir and many of Wealthcon friends) had made deep impact on me in all spheres of life. I am lucky to be part of Panvel
GANG.
In all I was novice before Wealthcon from that I became Active investor,CT/ PEFG tiger,TMP tiger , TMP guide,
Wealthcon club member, Faculty/ Speaker for Wealthcon platform and Most important Bhagwad GEETA session writer.
This journey shall continue forever. We will celebrate Wealthcon Conference at Wankhede stadium in near future.
Longlive wealthcon!
My Wealthcon
Journey
Dr. Rashmi Alva
I am a pediatrician working at a medical College, and had zero knowledge of inance. My new year resolution for 2021
was inancial literacy, and unlike the usual new year resolutions, this time I was determined. I set forth the usual way by
following some you tube videos and making notes!! It was a slow process. One such Sunday afternoon when I was
watching such video and getting frustrated (yes, Sunday afternoons are the time that mothers get for their personal
work!), out of the blue I remembered my husband telling me way back about a inancial group only for doctors. His friend
Dr Ranjan had told him about it and I conveniently had forgotton about it!!! I wasted no time in googling the key words,
inance for doctors and found WEALTHCON!! (Google tussi great ho!!)
During the initial month just kept reading messages in the passive investors group, goldmine channel( which is actually
a inancial goldmine!) Started attending Tuesday meets and dragged my hubby too to attend it! learnt quite some basics
in Tuesday meets. Then cool trading was announced and attended it in march. Actually found it a little dif icult to
understand and follow as I was a total novice, but one month of just going through the messages in the cool trading group
and studying the charts posted helped.
In the mean time in april, TMP course was announced and I blindly illed the form without even knowing what it actually
is!! As by this time I had understood the culture of wealthcon and had experienced Ram sir's teaching, so had no doubt
that it would be worth every penny! After going through the selection process I got accepted for the course. But I never
anticipated that it would change my life!!.
The course started with a whirlwind of classes, introduction of new words like greeks, which was all greek and latin to
me. It all made sense eventually, as Ram sir doesn't leave it till it makes sense to everyone. After my postgraduation I
don't remember having studied so much and making notes!! Truth be told, I wish I had studied this sincerely in my mbbs
and MD!! (I have to keep this article away from my kids now!!) TMP is a revelation!! It gives you the whole inancial
knowledge on a platter!! Extremely dif icult concepts of futures and options are taught in a very easy way. The cherry on
the cake is being added to the main TMP group after the course. Such supportive friends, every question answered
immediately in the middle of the night too, the camaraderie, absolutely amazing! Then my daughter too got added to the
FINE group, stated by Dr Ram for children 7th std onwards. So the whole family started learning about inance. Then AIC
( active investors course) course was announced and i plunged in immediately. That was an added bonus to TMP
knowledge for long term investing!
Wealthcon is actually not only about inance, it is so much more than it. Finance is only a small part of it. It is about
empowering doctors! I was always looking forward to contribute more inancially to my family, but wealthcon has
ensured that I contribute not only towards inance but also lead a harmonious life through channels like Bhagwadgita,
Simplism, Students of Dr Ram.
Feeling inancially empowered means a lot, especially for females in this era. It opens a lot of alternate doors for us.
During this Diwali family get together one senior member of the family who is a inancial consultant remarked to his wife
that he found his next consultant in me! From being a big zero in inance to whom BSE, NSE, nifty and sensex numbers
made no sense, to talking luently about FNO, fundamentals of companies, joining the men( yes, still predominantly a
bastion of men) in inancial discussion, to this compliment from a person dabbling in stocks for 30 years, I have come a
long way in less than two years. This is purely because of wealthcon. I couldn't have done it otherwise in such a short
period of time. I have to admit that I had also joined another online course in the beginning and till date haven't gone
beyond listening to the irst chapter!! I didn't need to! I would just say Dr Ram has empowered me!
Join wealthcon, add value to your life.
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Financial Planning
From UG and PG
Dr. Nikhil Pal
Dr. Arnab Marik
FINANCIAL PLANNING FROM UG.
Entering an undergraduate course in Medicine is an exciting experience. It is the start of your career. Most of your time
will be consumed by your educational and personal interests. Few fortunate persons receive inancial training prior to
this stage of life and begin their inancial journey early. As you attain legal major status, a plethora of inancial options
open up for you. Our aim in this article is to provide simple and effective ways of starting your inancial journey. Very few
start earning from the age of 18 years= However, not earning doesn't mean that inancial planning cannot start.
At WealthCon we believe in the principle of starting with the end in mind. Financial planning too needs this approach.
The irst step in doing so is inding out how much capital (money) you can spare. This can be done by budgeting. As most
of you will be sustaining your expenses with the pocket money provided by your parents, budgeting will be a good way
to learn how to manage expenses within your means. A smart person might end up saving a small fortune in doing so. We
will discuss later how this fortune can be increased or used.
Next step is creating a list of goals (wishes) which require capital more than what your future salary can provide.
Example - Funds for studying abroad, funds for marriage. Once a goal is decided, you need to calculate the time available
to achieve this goal. When a inancial goal has a long timeline, it is easier to achieve, however we need to be aware that
in lation can change (in late) the value. It is prudent to calculate the future value of your goal based on the current
approximate value and the average in lation. E.g.: A goal costing 10 lakhs today will cost 68.5 lakhs after 25 years if
in lation is at 8%. We can do manual calculation but you can use an online in lation calculator website
(https://mf.nipponindiaim.com/knowledge-center/tools/in lation-calculator).
One goal which many tend to ignore is health insurance. A major illness in a family is the most common cause for pushing
a family into debt. Purchasing health insurance should be the irst priority. Purchasing it as early as possible has
following bene its
• Your insurance cost is low as young individuals are at less risk of having major illness.
• Your pre-existing disease (PED) waiting period starts early.
• You can avail deduction in income tax for the entire amount of insurance paid.
• Lastly, your countdown of the moratorium period (8 yrs. of continuous cover) starts early - According to IRDAI
rules, no claim can be rejected after 8 years of continuous cover.
WealthCon suggests individual policies of at least 10 Lakh each (Base Policy). For additional cover, Super Top Up policies
are available at fraction of cost of base policy. Care should be taken not to purchase a Top Up policy. The basic difference
between Super Top Up and Top Up policy is that a Top Up policy can be availed only after the bill crosses the base policy
amount, leaving you to bear the expense equal to base policy amount in case of multiple hospitalization's and
exhaustion of the base policy. Further details can be read in WealthCon Journal - Issue 3.
An example is given below using a base policy of 10 lakhs and additional cover of 20 lakhs.
After purchasing health insurance, depending on the time left for the corpus to be saved, varying investment
instruments are available.
As you will have limited time to learn various investment tools, the simplest way to invest is regular SIP (Systematic
Investment Plan) in an ETF (Exchange traded funds). An ETF follows an index and invests in its constituents mirroring
their percentage in the index. The most commonly traded ETF are -
1. Niftybees (Follows Nifty 50),
2. Juniorbees (Follows Nifty next 50),
3. Goldbees (Follows Gold) and
4. Liquidbees (Invests in Overnight Bonds).
Diversi ication into varying asset classes is a good way to create a strong portfolio. Investing in a 40%:40%:10%:10%
ratio in the above EFT will provide good diversi ication with good returns. The ratio mentioned is a bit aggressive and
has been suggested as starting early has time (biggest hedging tool) on your side minimizing the risk. Additionally the
ETF tracks an index which automatically discards underperforming constituents. ETF are best purchased using a
DEMAT account with a discount broker.
At WealthCon we promote spending on products of need (PON's - e.g.: food, house and clothes) and refrain from
spending on products of prestige (POP's - e.g.: luxury car, luxury mobile). This can help in increasing your savings which
in the long run will be exponentially increased, if invested properly.
The above steps, if implemented, will be a signi icant step towards inancial independence. These steps are simple and
can be easily implemented by the majority of members.
Advanced members and members with signi icantly larger corpus/ savings can go through the next section.
FINANCIAL PLANNING FROM PG.
Getting into a postgraduate course in medicine is exhilarating. As you reach this stage of life, you start earning and have
additional personal responsibilities. There is a saying - It's never too late to begin. It isn't too late to start inancial
planning, if you haven't started yet.
The initial steps of creating a balance sheet, assessment of your savings and enumeration of your inancial goals are
essential and have been elaborated in the prior section.
Few members might get married. This brings another dimension to your inancial planning and provides novel
opportunities.
A member should irst ensure that they and their spouse (where applicable) are adequately covered by health insurance
as elaborated in the previous section.
Once this area of unexpected expense is covered, we can now direct attention to wealth creation. This is where our goal
list comes into picture. Wealth creation can be done by decreasing your tax liability and/or increasing your income.
We will divide the discussion on the basis of marital status as a spouse brings in more opportunities in investing.
We will discuss steps applicable to both married and unmarried members irst.
As you pursue your post-graduation, you may have some career goals like having your own practice or setting up your
own hospital. These might be capital intensive. Being a doctor loans can be easily availed however for loan approval your
credit rating is viewed along with your last 3 years income tax returns. As you will receive a stipend, it is prudent you use
this opportunity and ile your income tax return. Doing so you will have 3 years of income tax ilings by the time you
complete your residency.
Another way to increase your credit worthiness (Credit rating - CIBIL / Experian score) is by using credit cards
judiciously. Credit Card can be a double edged tool. The best way to use it to your advantage are
1. To utilize less than 30% of your total credit limit (Sum of credit limits of all credit cards).
2. Early / timely payment of credit card bills (within the credit free period). Best is if paid within 1-2 days of
credit bill generation.
3. Never use the EMI option.
4. Judiciously increase the credit limit even if offered.
5. Can help to separate business expenses from personal expenses.
Further knowledge can be gained by going through an article on credit cards in WealthCon Journal - Issue 3.
Members crossing basic exemption limit of 2.5 Lacs, can invest up to 1.5 lacs (12,500 / month) in ELSS (Equity Linked
Saving Schemes) to decrease tax liability. Selection of an ELSS can be done by using the CAARE-SA criteria. The criteria is
discussed in detail in WealthCon Journal - Issue 5. ELSS has been discussed in detail in WealthCon Journal - Issue 4.
SIP in ETF is a good investment plan at this stage of life too as it needs minimum time investment. This remains the same
as discussed in the undergraduate section.
Married members can explore the following options

1. Create a HUF (Hindu Undivided Family). Further details can be read in WealthCon Journal - Issue 4.
2. If one of the spouses is a homemaker - then they can take loans from family members to start a business.
As your capital increases, you can diversify your investment into GRED - Gold, Real-estate/ USDINR, Equity and Debt
products. ETF investment detailed above should take care of all except real estate. Members with signi icant capital can
invest in stocks directly too. Interested members should use the MPTDS criteria to select 2-3 stocks from each sector.
They can start regular (monthly) investment in selected MPTDS stocks.
PPF investment is not suggested as it is a wealth protection product and ideally suitable for older members. You can
however create a PPF account and maintain it by making a yearly contribution of ₹ 500. This will keep the PPF account
active and during the last 5 years prior to maturity it can be used as a debt product. Having a simultaneous ELSS
investment of 12500/ month will complete your Section 80C exemptions and provide the best reduction of tax liability
with maximum return.
Term Insurance has not been discussed as it is needed when you have liabilities, even if you are married. The maximum
term insurance issued is 20x of your annual income. Buying it early will give you a low premium for life, but with low sum
insured. It can be taken when you start your practice and have a reasonably good income. If taken early, one can opt to
take another term plan later in life when their income and liabilities have increased. In case you opt for a second term
plan, you need to declare the other term plan to both the new and old companies.
Following are few thumb rules you can implement
1. 50, 30, 20 Rule: Divide your income into 50% Needs (Groceries, Rent, EMI), 30% Wants (Entertainment, Vacation) and
20% Savings (GRED). At Least try to save 20% of your income.
2. 6X Emergency Rule: Once you start having a steady income, you can park 6 months monthly income in an Arbitrage
fund or liquid fund or 50% in both. This will act as an Emergency Fund for unexpected loss of employment or medical
emergency. The arbitrage fund is an equity mutual fund and is tax ef icient. Liquid fund is a similar mutual fund but is a
debt product and requires >3 years of holding to be tax ef icient.
3. 40% EMI Rule: Never go beyond 40% of your monthly income into EMIs.
These are not exhaustive and have been mentioned on the basis of assumption of less time availability of members for
inancial activities. Members having time to devote to learning can join WealthCon telegram groups to learn further.
SUGGESTED FURTHER READING
1. Financial Jargons Simpli ied. WealthCon Journal Vol 1 Issue 5, Jan 2022 Page 21
2. Basics of Financial Planning. WealthCon Journal Vol1 Issue 1, Dec 2020 Page 23
3. Good Loans, Bad Loans. WealthCon Journal Vol 1 Issue 2, March 2021 Page 10
4. POPs and PONs. WealthCon Journal Vol 1 Issue 2, March 2021 Page 25
5. Life Insurance-The Conclusion. WealthCon Journal Vol 1 Issue 2, March 2021 Page 49
6. Health Insurance. WealthCon Journal Vol 1 Issue 3, June 2021 Page 61
7. How to Select Stocks: MPTDS. WealthCon Journal Vol 1 Issue 5, Jan 2022 Page 34
8. How to select Mutual Funds WealthCon Journal Vol 1 Issue 5, Jan 2022 Page 39
9. Exchange traded Funds. WealthCon Journal Vol 1 Issue 5, Jan 2022 Page 52
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Lessons Learnt In
Value Investing
From Warren Buffet
Dr. Rajendra Kumar Srivastava
Dr. Supriya Kadam
Warren Buffett is regarded today as the greatest investor of all time. His timeless philosophy of value investing has
proven relevant and pro itable in all types of markets and inancial environments. With his great vision and strategies,
he has converted holding company Berkshire Hathaway into a powerhouse today.
However Value investing stems from the ideas of Benjamin Graham and David Dodd mentioned in their book “The
Intelligent Investor”.
So what is value investing?
Value investing is an investment strategy that involves picking stocks that appear to be trading for less than their
intrinsic or book value. Value investor's believe that market overreacts to good and bad news, resulting in stock price
movements that do not correspond to a company's long-term fundamentals. The overreaction offers an opportunity to
pro it by buying stocks at discounted prices—on sale.
Mr. Warren Buffett was a student of Mr. Graham and is the biggest proponent of value investing. However, what makes
him so successful? According to inancial experts, despite being simple, he believes in doing things patiently and
differently.
There are some basic rules he follows which are much needed for any person who is on the path of starting his inancial
journey
1. Invest in what you understand

2. Read, read and read extensively for new investment ideas
3. Diversi ication is good but only up to a point. After that you do not have risk reduction but you have risk substitution.
4. Don't follow the herd; you will never make money
5. Always take a very long term approach to investing in equities. Buffet loves to say that his investment time frame is
“forever”.
6. Time in the market is more important than timing the market. Nobody caught the top and the bottom of the market
consistently and nobody will. As long as you can buy good stocks at reasonable valuations and attractive prices, it is
good enough to create wealth over the long term.
7. Treat stocks the same way as you would treat a bargain sale of furniture. Chase value at lower prices.
8. Buffett believes that if you have a great idea then you must be able to explain it to a ifth grader with a piece of chalk.
9. The earlier you start off on equities the better.
10. Be paranoid about losing money. It is OK to lose money occasionally in equities as long as the lesson is not lost!
Once Buffett determines the intrinsic value of the company as a whole, he compares it to its current market
capitalization—the current total worth or price.
How is intrinsic value calculated? An investor must determine a company's intrinsic value by analysing a number of
business fundamentals including earnings, revenues, and assets. And a company's intrinsic value is usually higher (and
more complicated) than its liquidation value, which is what a company would be worth if it were broken up and sold
today. The liquidation value doesn't include intangibles such as the value of a brand name, integrity of management etc.
which is not directly stated on the inancial statements. Value investors use inancial ratios such as price-to-earnings,
price-to-book, debt-to-equity, and price/earnings-to-growth, free cash low to discover undervalued stocks.
Price-to-Earnings Ratio: A low P/E ratio might indicate that the current stock price is cheap relative to earnings and
helps to ind undervalued stocks.
Price-to-Book Ratio: The P/B ratio is a good indication of what investors are willing to pay for each dollar of a company's
net value. To a value-seeking investor, a company that trades for a P/B ratio of 0.5 is attractive.
Debt-to-Equity Ratio: A high debt-equity ratio means the company derives more of its inancing from debt relative to
equity. Too much debt can pose a risk to a company if they don't have the earnings or cash low to meet its debt
obligations. The debt-to-equity ratio can vary from industry to industry.
Free Cash Flow: Free cash low is the cash left over after a company pays for its operating expenses and capital
expenditures (CapEx). Free cash low shows how ef icient a company is at generating cash to reward shareholders
through dividends and share buybacks.
PEG Ratio
The PEG ratio provides a more complete picture of whether a stock's price is overvalued or undervalued by analyzing
both today's earnings and the expected growth rate. Typically a stock with a PEG of less than 1 is considered
undervalued since its price is low compared to the company's expected earnings growth. The PEG for a given company
may differ signi icantly from one reported source to another.
Margin of safety: The difference between the market price and intrinsic value of the stock Graham calls it the "margin of
safety".
The Moat: This term frequently used by Mr. Warren Buffett is a measure of a company's competitive advantages over
other companies.
Buffett's Methodology: In his vast analysis, few of the things which Mr Warren Buffet also sees before investing in a
company are:
1. Company Performance: Buffett always looks at ROE to see whether a company has consistently performed well
compared to other companies in the same industry.
2. Company Debt: The debt-to-equity ratio (D/E) should be low.
3. Pro it Margins : A high-pro it margin indicates the company is executing its business well, but increasing margins
mean management has been extremely ef icient and successful at controlling expenses.
4. Is the Company Public? Buffett typically considers only companies that have been around for at least 10 years and is
listed.
The ideal time to sell a stock is when the shares are overvalued relative to the intrinsic value of the company.
What are qualities of Value investors?
1. Value investors focus on intrinsic value and buying when convinced there is a substantial margin of safety and selling
when the margin of safety is gone.
2. Value investors pride themselves on conducting in-depth, proprietary, and fundamental research.
3. Value investors spend far more time analysing and understanding micro factors, such as a company's competitive
advantages and its growth prospects and invest with a multiyear time horizon.
4. Value investors act only when able to draw conclusions at variance to conventional wisdom, resulting in buying stocks
that are out-of-favor rather than popular. They have portfolios with fewer, but larger, positions than is the norm.
5. Value investors focus on avoiding permanent losses rather than minimizing the risk of stock-price volatility.
6. Value investors consider stock investing to be a marathon, with winners and losers among its practitioners best
identi ied over periods of several years, not months.
No single stock metric can determine with 100% certainty whether a stock is a value or not. The basic premise of value
investing is to purchase quality companies at a good price and hold onto these stocks for the long-term. Many value
investors believe they can do just that by combining several ratios to form a more comprehensive view of a company's
inancials, its earnings, and its stock valuation.
Those who want to be value investor should focus on intrinsic value, margin of safety, moat of company and should have
patience and commitment to hold the share for long term. Happy investing.
References
1. investopedia
2. https://www.investopedia.com/articles/fundamental-analysis/09/ ive-must-have-metrics-value-investors.asp)
3. https://www.investopedia.com/articles/fundamental-analysis/09/value-investing.asp
4. https://www.investopedia.com/articles/01/071801.asp
5. “The Intelligent investor” – Book by Benjamin Graham and David Dodd
6. “The art of value investing” - Book by John Heins, Whitney Tilson).
7. International Conference KNOWLEDGE-BASED ORGANIZATION Vol. XXI No 2 2015
VALUE INVESTING - ESSENCE AND WAYS OF FINDING UNDERVALUED ASSETS

Elitsa PETROVA “Vasil Levski” National Military University, Veliko Tarnovo, Bulgaria
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Steps In Event Of
Untimely Death Of
The Investor Head
Of A Family
Dr. Mahesh Bhirud
Dr. Munjal Pandya
जात िह वुो मृ ु वुं ज मृत च |

Bhagavad Gita: Chapter 2, Verse 27
Death is certain for one who has been born, that which has a beginning, has an end… Death becomes a surety, at the
moment life is born. But death of a family member, especially when untimely, is a disastrous event. And what if the
person died was an investor head in the family? It brings in lot of challenges to the family. The investments get locked in
shares, mutual funds, real estate, bank accounts, etc. One report says nearly a trillion means 100 thousand crores of
rupees are lying unclaimed in various investment products in India like banks, EPF, PPF, Mutual funds, LIC, and many
other entities!!
In such situation, the family members can follow certain steps to claim the investments.
To begin with, prepare a list of all assets, investments and the related documents, like-
One can contact a lawyer to get genuine advice and prepare some legal documents required to claim the investments. It
requires to submit a transmission form to transfer the invested units into a family members account. This transmission
form can be obtained from the broker or AMC (Asset Management Company) websites. One can directly contact the
broker or AMC via email or a written letter to obtain such information too. Here we will consider example of HDFC
mutual fund house and Zerodha broker for the required procedures, which are more or less similar for other brokers
and AMCs.
If the deceased had invested in shares and funds with a broker, to claim the shares and funds of an account holder at
Zerodha, the dependents or relatives need to open an account with the broker if s/he doesn't have one and provide the
broker with the following details by creating a ticket.
1. A copy of the death certi icate of the deceased holder duly notarized/attested by a Gazetted Of icer. Death
Certi icate carries name, date and time of the death, very important for life insurance; details need to be
checked properly.
2. Will: Probate needs to be obtained from the court, which authenticates the will. If the person didn't make will,
(died intestate), legal heirs need to get succession certi icate from the court.
3. Legal Heir Certi icate: it is to be obtained from local Tehsildar, after submitting copies of ID proofs of family
members who are alive and inancial instruments. It usually takes 3 months.
4. PAN number of the deceased person (mandatory)
5. Client id of the deceased person (if available). Client ID is the ID used to login the account. Client ID, DP
(depository participant) ID, demat ID can be found in the console account information section.
6. Mobile number of the deceased person (if available)
7. Email id of the deceased person (if available)
8. Client Master Report(CMR) with DP seal and signature of the joint holders or nominee or
successor/applicant, in case the applicant(s) has/have a DEMAT account with some other DP of CDSL /
another depository. If the applicant(s) has/have a Demat account with Zerodha (same broker), then the CMR
is not required. The Depository Participant (DP) is the link between the investor, company and CDSL (Central
Depository Services Limited). Client master report or CMR copy is the PDF document which contains all the
details about the client who has opened a Demat account with brokers in India. It includes your Demat account
number, date of birth, bank details, nomination, etc. To get your CMR copy from Zerodha, irst, log in to kite.
Then go to Console - Under Console - Go to accounts - Under accounts - Go to documents. In documents, click
selected documents as “Zerodha CMR Copy”. A copy will be mailed to you in a few hours.
9. Surviving holder/s, Nominee/s, Successor/s ID proofs.
10. Surviving holder/s, Nominee/s, Successor/s cancelled cheque or bank statement.
Having this much information is not suf icient but you can face multiple scenarios under which claims are processed
after the account holder's death. They are as follows:
1. When the deceased's account has no holdings and no funds- Here the successor or the nominee has to simply
send an account closure form and a copy of the death certi icate of the deceased to close the account. The
forms have to be sent to Zerodha head of ice via post, registered post, speed post or courier.
2. When a joint demat account holder exists- When one of the joint account holders passes away, the surviving
holders need to send the above-mentioned documents plus Transmission Request Form duly illed in –
Annexure 7.2 and DP ID and client ID of both, deceased and survivor. The surviving holder(s) can transmit
securities to an account opened in their names only. The transmission process takes 15 days to complete.
Lock-in shares will be moved to the nominee/successors CDSL Demat accounts only.
away, the nominee should send
3. When the account holder has appointed a nominee- When the account holder passes
s.
above mentioned documents plus Transmission Request Form (TRF) to transfer the securitie
- here are two scenarios that the
4. When the account holder has not added a nominee to their account but has holdings
successor has to consider
r has to send to the broker head
A. If the holdings and funds value is equal to or less than Rs. 5 lakhs, then the successo
Any one of the following documents:
of ice, Transmission Request Form duly illed in – Annexure 7.1 (TRF) and
ate value, duly notarized

(a) Letter of Indemnity executed by the applicant(s) on non-judicial stamp paper of appropri
(Annexure – 7.3)
(b) An Af idavit from the applicant executed on non-judicial stamp paper of appropriate value and notarized (Annexure
(c) A copy of Family Settlement Deed duly notarised or attested by a Gazetted Of icer and executed by all the legal heirs of
the deceased provided that the Family Settlement Deed clearly vests the securities in favour of the person seeking
transmission in his/her name.
(d) Vesting of securities in favour of the person seeking transmission in his/her name is not contingent upon any other
onerous conditions in such Family Settlement Deed.
The Family Settlement Deed is considered as a NOC if the division of shares as per the deed is amongst more than one legal
heir.
B. If the holdings and funds value is more than Rs. 5 lakhs, then the successor has to send the following forms to our head
of ice.
1. Transmission Request Form duly illed in – Annexure 7.1 (TRF)
2. Any one of the: (a) A Succession Certi icate, (b) A Letter of Administration, (c) A Probate of the will of the
deceased (All of these can be obtained at district courts)
In case of mutual fund investments, transmission process, various scenarios and documentation requirements are:
a. Letter from surviving unit holders or nominee/s or claimant/s requesting for transmission of units.
b. Death Certi icate in original or photocopy duly notarized or attested by gazette of icer
c. Bank Account details of the new applicant as per Annexure-I along with attestation by a bank branch Manager and
cancelled cheque bearing the account details and account holders name.
d. KYC of the surviving applicant/s, if not already submitted.
1. Transmission in case of Joint Holder being the claimant- needs to send all the above-mentioned documents
2. Transmission where mode of holding is single and there is a nominee registered- needs to send all the above-mentioned
documents
3. Transmission to claimant/s, where nominee is not registered and no Joint holders- needs to send all the above-
mentioned documents plus
A. Indemnity Bond from legal heir/s - Annexure II (On stamp paper of value Rs. 500).
B. Individual af idavits from legal heir/s - Annexure III (On Stamp paper of value Rs. 100).
C. If the transmission amount is below Rs 2 Lakh: any appropriate document evidencing of the claimant/s with the
deceased unit holder/s. (Passport Copy, ration card or any other document evidencing the relationship)
D. If the transmission amount is Rs 2 Lakh or more: Notarised copy of Probated Will, or Legal Heir Certi icate or Succession
Certi icate or Claimant's Certi icate issued by a competent court, or
Letter of Administration, in case of Intestate Succession.
4. Transmission in case of HUF, due to death of Karta:

HUF, being a Hindu Undivided Family, the property of the family is managed by the Karta and HUF does not come to an end
in the event of death of the Karta. In such a case, the members of the HUF will appoint the new Karta who needs to submit
following documents for transmission:
a. Letter Requesting for change of Karta.
b. Death Certi icate in original or photocopy duly notarized or attested by gazette of icer or a bank manager.
c. Duly certi ied Bank certi icate stating that the signature and details of new Karta have been appended in the bank
account of the HUF - Annexure I
d. KYC of the new Karta and KYC of HUF
e. Indemnity bond signed by all the surviving coparceners appointing the new Karta - Annexure IV. (On stamp paper of
value Rs. 500)
f. In case of no surviving co-parceners AND the transmission amount is Rs 2 Lakh or more OR where there is an objection
from any surviving members of the HUF, transmission shall be effected only on the basis of any of the following mandatory
documents: i. Notarized copy of Settlement Deed, or ii. Notarized copy of Deed of Partition, or iii. Notarized copy of Decree
of the relevant competent Court
For the investments in Bank Accounts, FD:
In case of various liabilities:
Similar steps can be useful for the following conditions

- Pension: Transferring pensioner's name is now decentralized, and respective bank needs to be contacted for the
same. If the legal heir has his/her account in the same bank, the transfer becomes easier.
- Central Government Health Schemes: The spouse has to be a nominee. Expense bills need to be submitted with
legal heir certi icate and notarized. No objection certi icate (NOC) on stamp paper from children, within 3
months of the death. Card name change is done, only after pension transfer.
- Property: In absence of will, ownership should be registered with legal heirs: surviving spouse/ children, with
help of lawyer. Try to avoid re-registration to avoid repeated registration fees.
-Insurance:
Medical and Life Insurance: Contact company directly
Vehicle Insurance: Agent can be contacted for transfer of name
As they say, Prevention is better than cure. So, for safety purposes one can have information shared with spouse, joint
holder, nominee or successor.
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Financial
Ratios
Dr. Milon V Mitragotri
Dr. Parag Shah
Dr. Nikesh shah
Types of Financial Ratios
1. Pro itability Ratios

2. Leverage Ratios
3. Valuation Ratios
4. Operating Ratios
The Pro itability Ratios
1. measure the pro itability of the company. 2. convey how well the company can perform in terms of generating pro its
which helps in business expansion and also bene its Shareholders
1. EBITDA Margin (Operating Pro it Margin)

2. PAT Margin
3. Return on Equity (ROE)
4. Return on Asset (ROA)
5. Return on Capital Employed (ROCE)
example of Reliance Industries Limited,
EBITDA Margin:
Operating Revenues = [Total Revenue – Other Income]
Operating Expense = [Total Expense – Finance Cost – Depreciation & Amortization]
EBITDA, = [Total Revenue – Other Income] – [Total Expense – Finance Cost – Depreciation & Amortization].
[698672– 17928] – [588077 – 1 – 29797] = [680744] – [558279] = 122465 Crores
Hence the EBITDA Margin is: 122465 / 680744 = 17.99%
PAT (Pro ite after tax) Margin:
PAT margin gives the overall

PAT Margin = [PAT/T otal profitability of the irm For FY22: 67845 / 698672 =
Revenues] 9.71%
Return on Equity (RoE):
Return on Asset (RoA):
Net income for FY 22 = Rs.67845 Crs

And Total average assets (FY21 and FY22) = Rs.1409343.5 Cr.
RoA = [67845 + 6.8] / 1409343.5
~ 67851.8 / 1409343.5 = ~4.81%
Return on Capital Employed (ROCE):
Pro it before Interest & Taxes = Rs.84142Crs
Overall Capital Employed = Short term Debt + Long term Debt + Equity
Short Term Debt: Rs.78606 Cr Long term borrowing: Rs.224883 Cr

Shareholders equity = Rs.6765 Cr
Overall capital employed: 78606+ 224883 + 6765 = 310254 Crs
ROCE = 84142 / 310254 = 27.12%
The Leverage Ratios
(solvency ratioso or gearing ratios) 1. measures the company's ability (in the long term) to sustain its day to day
operations. 2. measure the extent to which the company uses the debt to inance growth.
For the purpose of discussion, we have chosen a company having high leverage i.e. Adani Enterprises(Annual statement
2022)
Note: Always compare the ratio with its competitors and also year to year.

Operating Ratios(Activity Ratios) (management Ratios)
It measures the ef iciency at which a business can convert its assets (both current and noncurrent) into revenues and
suggest how ef icient the management of the company is.
Example: PIDILITE INDUSTRIES
Fixed Assets Turnover

Average Noncurrent assets 5428.93 + 5202.64 = 10631.57 -> Divide by 2 = 5315.78
Total revenue is 8570.54
so ixed asset turnover ratio is 8570/5315=1.61
A higher ratio is generally favoured
Working Capital Turnover
Working Capital = Current Assets – Current Liabilities.
Calculation for PIDILITE INDUSTRIES Limited.
revenue from operations for is Rs.8340 Crs.
Hence the working capital turnover ratio is: = 8340 / 869.5 = 9.6 times

Total Assets Turnover
Total Asset Turnover = Operating Revenue / Average Total Assets
The average total assets for Pidilite is as follows –
Total Assets for FY 21 = 7623 and for FY 22 = 8423 so average asset is 8023 Cr
Operating revenue (FY 22 ) is Rs. 8340 Crs.
Hence Total Asset Turnover is: = 8340 / 8023 = 1.04 times
Inventory Turnover Ratio

Hence the Cost of Goods Sold = Cost of materials consumed + Purchase of stock in trade + Stores & spares consumed +
Power & Fuel + labour
= 4174+637+45+78+116 —> COGS= Rs.5050 Crs
average inventory for the FY21 and FY22. – Inventory for the FY21 is Rs.498 Crs and for the FY22 is Rs.712 Crs. The
average inventory works out to Rs.605 Crs
The Inventory turnover ratio is:
= 5050 / 605 = 8.35 times ~ 8.0 times a year
This means PIDILITE INDUSTRIES turns over its inventory 8 times in a year or once in every 1.5 months.
Inventory Number Of Days
Accounts Receivable Turnover Ratio
Naturally a high number indicates that the company collects cash more frequently.
From the balance sheet we know,
Trade Receivable for the FY21 : Rs.999 Cr and for the FY22 : Rs. 1157 Crs
Average Receivable : Rs. 1078

Operating Revenue for the FY22 : Rs.8340 Crs
Receivable Turnover Ratio is:= 8340 / 1078 = 7.7 times a year ~ 8.0 times
This means PIDILITE receives cash from its customers roughly about 7.7 times a year or once every month and a half.
Days Sales Outstanding (DSO)
The Valuation Ratio
The Valuation ratios - compares the cost of security with the perks of owning the stock..
Valuation ratios are usually computed as a ratio of the company's share price to an aspect of its inancial performance.
Three important valuation ratios:

1. Price to Sales (P/S) Ratio
2. Price to Book Value (P/BV) Ratio and
3. Price to Earnings (P/E) Ratio
PIDILITE Is taken as example.
On 14 sept 2022,PIDILITE trades at Rs 2870 per share.
Total number of shares outstanding in PIDILITE which is 50,79,78,280 or 50.8 cr

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Wealthcon
Journal MCQ
Dr. Shaukat Panjwani
Dr. Abhikant Chugh
Dr. Vaidik Chauhan
Q1. What is the Wealthcon recommended method of passive investment:
(a) buy only with SIP (b) buy only at DIP

(c) buy whenever possible (d) buy with SIP and add on DIP
Q2. What is absolutely necessary before entry into any investment for a WPI:
(a) CAGR (b) Analysing Macroeconomic Conditions

(c) Chart analysis (d) Exit plan
Q3. What does ‘E’ stand for in WC CAARESA criteria for MF selection:
(a) Earning per share (b) Earning Ratio

(c) Expense Ratio (d) Exit Ratio
Q4. Wealthcon MDSPORT criteria is used to screen from:
(a) Large CAP shares only (b) Mid CAP shares only
(c) Blue-chip shares only (d) All type of shares
Q5. In WC MPTDS criteria what is not true:
(a) MPTDS is passive method to screen MFs for long-term investment

(b) TDS stands for Tax Dividend and Sales
(c) M is for Market Cap more than 10000 CR
(d) Annual review of MPTDS portfolio is enough for WPI
Q6. The risk in terms of variability in security’s total return due to some exogenous factors is known as:
(a) Non diversi iable risk (b) Systematic risk

(c) Unsystematic risk (d) None of these
Q7. Which criteria of MDSPORT has limitation for banking sector?
(a) Market Cap (b) D/E ratio

(c) OPM (d) Tax Growth Rate
Q8. The smallest unit of capital is known as:
(a) Debenture (b) Share

(c) Bond (d) Deposit

Q9. The Market of initial public offerings where any new share is issued known as:
(a) Secondary market (b) Money market

(c) Primary market (d) None of these
Q10. Health of the company is suggested by which parameter?
(a) ROCE (b) OPM

(c) D/E ratio (d) All of the above
Q11. Which of the following entity can open a PPF account?
(a) Individual person (b) HUF

(c) Both (d) None
Q12. Which market provide inance for short term purpose?
(a) Money market (b) Capital market

(c) Both of these (d) None of these
Q13. The creditorship security with speci ied period, ixed rate of return,
low capital uncertainty with perfect income certainty is known as:
(a) Debentures/Bonds (b) Preference shares

(c) Ordinary/Equity Shares (d) All of these
Q14. The process of buying a security or asset in one market at lower price and selling the same in another market at a
higher price is known as:
(a) Bargaining (b) Insider trading

(c) Arbitrage (d) None of these
Q15. The method of converting the amount of future cash into an amount of cash and cash equivalents value in present to
make them comparable to take sound decisions is known as:
(a) Compounding (b) Annuity

(c) Discounting (d) None of these
Q16. If a person has ₹10 lakh on maturity in NPS, what will be the taxable amount?
(a) 6 lakhs (b) 4 lakhs
(c) 7 lakhs (d) 10 lakhs
Q17. The technique used for printing “RESERVE BANK OF INDIA’ appearing on the face of the currency notes is
(a) Intaglio printing (b) Micro lettering

(c) Latent printing (d) Screen printing
Q18. In October 2021, RBI increased the IMPS limit from 2 lakhs. What is the new limit of IMPS transfer?
(a) 4 lakhs (b) 5 lakhs

(c) 8 lakhs (d) 10 lakhs

Q19. Fraudsters often use a device that can be installed at gas pumps or ATM machines to collect card data. What is the
name of the device?
(a) Skimming (b) Phishing

(c) Spoo ing (d) SIM Swap
Q20. What does ‘Amrit Kaal’, a word used by FM while presenting the Union Budget 2022-23 in Parliament, refer to?
(a) Period from 70 years to 90 years of India’s independence

(b) Period from 75 years to 100 years of India’s independence
(c) Period from 75 years to 125 years of India’s independence
(d) Period from 75 years to 80 years of India’s independence
Answers:
1-d, 2-d, 3-c, 4-d, 5-a, 6-b, 7-b, 8-b, 9-c, 10-d, 11-a,
12-a, 13-a, 14-c, 15-c, 16-a, 17-a, 18-b, 19-a, 20-b
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Vote Of
Thanks
Dr. Ramnath Ghute (Dr. Ram) Dr. Shweta Matreja

Founder, Wealthcon Consultant Radiologist, Mumbai.
Consultant Radiologist, Chief Administration &
Mumbai Programme Co-ordinator, Wealthcon
On behalf of Team WealthCon, our heartfelt appreciation to our editors,

all contributing authors and reviewers.
EDITOR
Dr. Nitin Gundre
CO-EDITORS - Dr. Gaurang Kadam & Dr. Santosh Jaybhaye
CONTRIBUTING AUTHORS
Dr. Abhikant Chugh Dr. Nalini M. Dr. Sandhyarani Shankardas
Dr. Amol Deshmukh Dr. Nikesh Shah Dr. Saurabh Pandya
Dr. Arnab Marik Dr. Nikhil Pal Dr. Shailesh Patil
Dr. Balkrishna Nagargoje Dr. Pankaj Tardeja Dr. Shaukat Panjawani
Dr. Darshan Kulkarni Dr. Parag Shah Dr. Shirish Narsapur
Dr. Deepak Mane Dr. Pradip Tawde Dr. Sourabh Gandhi
Dr. Divyesh Joshi Dr. Prajakta Ahire Dr. Suma Appannanavar
Dr. Eswaran Angappan Dr. Pranav Gupta Dr. Supriya Kadam
Dr. Gaurav Laddha Dr. Rajeev Dwivedi Dr. Suresh Naik
Dr. Gaurav Nemade Dr. Rajendra Bhatiya Dr. T Sivaraj Balajee
Dr. Goviind Paatil (Londhe) Dr. Rajendra Kumar Srivastava Dr. V.N. Amogh
Dr. Harish Gopal Dr. Ramesh Hasani Dr. Vaidik Chauhan
Dr. Mahesh Bhirud Dr. Rashmi Alva Dr. Vinod Dhole Patil
Dr. Mamta Kane Dr. Rutul Gandhi Dr. Vivek R Nayak
Dr. Milon V Mitragotri Dr. Sachin Bote Dr. Yousuf Bhambhani
Dr. Munjal Pandya Dr. Sandeep Kavade
Thank you for reading

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Mobile No. +91-9644329999 Email Id - wealthconindia@gmail.com
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www.wealthconindia.com Issue 7 | Nov.

New Kids On the

Electric Vehicles &

Sr. Particulars Page No.

01 From The Founder’s Desk Pg. 05

www.wealthconindia.com Design : www.manojasrani.in

“WEALTHCON DOESN'T PROVIDE INVESTMENT ADVICE.

Dr. Ramnath Ghute (Dr. Ram)

Long live Wealthcon!

Dr. Ramnath Ghute Dr. Shweta Matreja

Dr. Nitin Gundre

Dr. Gaurang Kadam Dr. Santosh Jaybhaye

Dr. Rashmi Alva Dr. Rutul Gandhi Dr. Sandeep Kavade

जात िह वुो मृ ु वुं ज मृत च |

1. “Buy from a Paniac, Sell to Maniac.”

Distance= Speed x Time

Target Amount= Rate of return x Time

6. “माकटको जीतने से पहले, अपने ड़र को हराना पड़ता है।

Market rewards to people who have PATIENCE.

Basanti: What is Currency Market?

Basanti: Who can participate?

Basanti: What is timing of Currency Market?

Basanti: What is Currency pair?

Basanti: Do you know what all currency pairs are traded?

Jai: Currency pairs traded in forex include;

Basanti: How is currency price quoted?

Veeru – Who decides the rate of Currency?

Figure 1: Current account surplus/de icit (% of GDP) of India 1980- 2026f

Figure 2: Eﬀect of import and export of a country on its currency

1. Gross Domestic Product -

Figure 3: Eﬀect of low interest rate of a country on currency

1. Foreign Direct Investment (FDI):

Figure 5: Factors FDI's look for in a country before investing

Corporate actions are of two diﬀerent types

B. Intention of the corporate action:

D. Implications for investors:

E. Impact on inancial parameters:

A. What are Bonus Shares?

B. Intention of the corporate action:

C. Procedure and Logistics:

D. Implications for investors:

E. Impact on inancial parameters:

A. What is Stock Split?

B. Intention of the corporate action:

C. Procedure and Logistics:

D. Implications for investors:

E. Impact on inancial parameters:

Merger - Joining two or more companies to form third bigger company.

Walmart acquires Flipkart.

Intensions and advantages of M & A:

1. Unlocking Synergies - combined worth more than individual.

1. Statutory: Target company does not exist.

1. Dig into memorandum to examine the object clause

How Does M&A Activity Aﬀect Shareholders?

5. OFFER FOR SALE

A. What is oﬀer for sale?

B. Intention of the corporate action:

• Promoters or non-promoters do this to reduce their stake in the company.

D. Implications for investors:

E. Impact on inancial parameters:

6. FOLLOW ON PUBLIC OFFER:

A. What is follow on public oﬀer?

B. Intention of the corporate action: