Investment Valuation in India

The CFA Institute, USA offers 10 Tips on Avoiding Investment Fraud Understand clearly the investment strategy Match investment strategy to reported performance Watch for e-mail solicitations and Internet fraud Be wary of “sure things," quick returns, and special access Understand what, if any, regulatory oversight exists Assess the operational risk and infrastructure Ask about independent audits and who performs them Assess the personnel Perform a background check Limit your exposure Please visit the link below for the complete article. This is just the summary and the complete article is listed on CFA Institute website. http://cfainstitute.org/aboutus/press/release/09releases/20090121_01.html

IT major Satyam Computers, after being in the news for all the bad reasons has reported a major scam which left the country shocked. The major developments: Satyam Chairman B Ramalinga Raju resigns as Chairman and issues a letter stating that he has been involved in major misrepresentations of accounts. The balance sheet carries as of September 30, 2008 a) Inflated (non-existent) cash and bank balance of Rs 5,040 crore (as against Rs 5361 crore reflected in the books) b) An accured interest of Rs 376 crore which is non-existent c) An understated liability of Rs 1,230 crore on account of funds arranged by Raju d) An over stated debtor position of Rs 490 crore (as against Rs 2651 reflected in the books. For 2Q 08, “reported revenue of Rs 2,700 crore and an operating margin of Rs 649 crore (24 per cent of revenues) as against the actual revenues of Rs 2,112 crore and an actual operating margin of Rs 61 crore (3 per cent of revenue)”. “In the last two years a net amount of Rs 1,230 crore w...

Oil & Gas All’s well for India’s oil and gas future They are roughly 2,000 km apart and yet the pace of activity or the excitement in the air is unmistakably alike. While one set of them is busy scathing the rocks facing challenges in the desert region of Barmer, Rajasthan, the other is battling violent cyclone storms in water depths of 2,700 metres, off Kakinada, east coast of the Indian peninsula. These men are set to script the most exciting story in India's energy history in recent times, and are easily set to be billed as the top newsmakers of 2009. The two discoveries , RIL's offshore gas project and Cairn's onland oil discovery, are set to begin contributing to India's energy kitty in 2009-10, at a time when the country's trade deficit threatens to cause some serious concerns . India's exports have been dipping over the last few months and the slowdown in the global economy is only expected to further add to its woes. Add to it India's gargan...