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1. Derivative markets
attracts a lot of
people worldwide.
Andthatisthereasonthatwe
see lot of growth in the
derivative volumes in India.
NSE only clocks around ten
lakh crore volumes per day.
On the other hand MCX
clocks around three lakh crores per day.
The numbers are too big to attract any
one.
I am fortunate enough to be trading in
the derivative markets since the birth of
derivatives in India. Derivatives started in
India on June 12, 2000 with the future
Indexlaunchedforthefirsttimefollowed
by Index options on June 4, 2001. Later
Individual securities were introduced. I
remember the day I used to operate the
single terminal of Punjab and people
from different cities across state used to
come to our office. This is thing of past,
now every smart phone has an app
installed on it and rates of derivatives can
be seen live. But till date I receive calls
when people want to understand
derivatives and different strategies. The
latest buzz is automating the strategies
through algorithmic trading. This gave
me an idea to decode the mystery of
derivatives through a chain of articles. In
this article I would enumerate the
benefitsofderivativesingeneralterms.
Derivatives are the financial
contracts which derive their
valuefromanyotherunderlying
assets. For example future
contract of currency USDINR
would derive its value from spot
rate quoted by RBI. Right now in
India Futures and options of
Currency, equity, Indices,
commodity and interest rate options are
traded. There are few more derivatives
thatarenottradedareswaps,leapsetc.
Derivatives mimic the underlying assets,
its features and volatility but they are
actually not the underlying. As they are
able to attract more and more volumes,
regulatory bodies keep tracking them
and keep amending the environment so
that they remain as shadows of the
underlying assets. Before going in details
about the products it is important to
understand why it is important to
understandderivatives
Derivatives help the investor to hedge
risk, diversify portfolio moreover they
can be used to hedge inflation and
interest rate risks. We can use derivatives
tocreateglobaldiversification.
Broader benefits of Derivatives in any
economy;
RISKMANAGEMENTMADEEASY
The biggest advantage of using
derivatives is managing the risk, bigger
traders / users / stake holders transfer
the risk to exchanges by taking counter
position. For Example a steel rolling mill
can take a short position in Ingot in
commodity markets and hedging price
risk, till the goods are sold. Same way a
goldsmith can short gold to hedge his
positionalriskofholdinggold.
As there are different participants in the
derivative markets and there is immense
liquidity provided by speculators, the risk
of investor can be transferred to a
speculatorataverynominalprice.
PRICEDISCOVERYMECHANISM
Asthemarketsarenowverycompetitive
and the world is a global village, so the
prices are supposed to be uniform across
the world. Participants of derivative
markets looks at world prices and
different world news. Even the smallest
change in the world prices or sentiments
are counted for in the derivative prices.
For example the smallest change in price
ordemand/supplyingoldin
international market is affected in the
price worldwide. This is possible only
throughpresenceofderivativemarkets.
EFFICIENCYTHROUGHARBITRAGE:
Derivative trading helps in creating
efficiency as lot of arbitrageurs trade
different world markets and they try and
capture slightest difference in prices,
thus creating efficiency. Since they are
derivative traders they need not move
underlying assets from one market to
another, but helps in creating efficiency
inthemarkets.
ADVANTAGEOFMULTIPLAYERS:
Derivative markets have the benefit of
presence of multi players, which means
that market consists of actual users,
hedgers, arbitrageurs and speculators as
well. Thus markets are seen from
different angles and immense liquidity is
available because of multiple players.
Moreover, they have the ability to short
sellaswell,whichmeansthatonecansell
first and later buy the trade as delivery is
to be provided only after a certain expiry
date. This also helps in bringing liquidity
as speculators do short sell in case they
find the prices have suddenly moved
upwards. As discussed above that
derivatives markets are mimic of
underlying but are different from the
underlying markets thus physical
movement of underlying is not a
compulsion in each and every trade. This
helpsinkeepingthetransactioncostlow.
The above facts shows the importance
of understanding the derivative markets
and also how they act as a spinal cord to
the financial eco system. They help in
providing leverage to the users though it
may add to volatility but in addition they
provideliquidityinthesystem.
DERIVATIVES DECODED
YEAR -1 | Vol 1 | Issue 22 | Ludhiana | Price Rs.2/- Wednesday 29 January, 2020
Brief Headlines:
MusicBroadcastrecommendedabonusissueof1shareforevery4shares
Karnataka Bank board recommended a bonus issue of 1 share for every 10
sharesheld
Torrent Pharma approves issuance of equity shares for an amount not
exceedingRs5000crore
Oil India: Company filed a plea with Supreme Court on telecom dues claimed
byDoT.
CiplagetsUSFDAobservationsforitsGoafacility
Datamatics Global - Cignex Datamatics and Relevance Lab deal not approved
bycompanyshareholders
Ashiana Housing obtained RERA registration of Phase 1 of 'Ashiana
Amantran'projectinJaipur
IL&FS Transportation arm gets Rs 144 crore as settlement from Ministry of
RoadTransport&Highways
BiocongetsUSFDAnodforDiabetesdrugDapagliflozin
GodrejPropertieslaunchesGodrejRKSatRKStudios,Chembur,Mumbai
PaisaloDigitalboardmeetingonJanuary28toconsiderandapprovetheoffer
of issue of redeemable unlisted unsecured NCDs on the private placement
basis
NipponLifeAMC:ThecompanyhassoughtSEBI'snodfortheseventhtranche
ofCPSEETF.Thecompany'sQ3PATjumped36percent.
ITI: The company said it intends to raise about Rs 1,400 crore of which Rs 607
croreshallbeutilisedforrepayingloans.
KPI Global bags an order for executing solar power project of 2.250MW
capacityunderCPPcategory
Indian Oil Corporation clarified that the company has entered into an MoU
withNationalPetroleumAuthority(NPA),Ghana
Olectra Greentech’s arm received letters of award for deployment of 555
Electric Buses from 8 Cities/ State transport authorities under FAME-II
schemeofgovernmentofIndia
CG Power - Public Prosecutor filed for Bankruptcy of company’s two Belgium
arms,hearingfixedonFebruary3
GAIL filed application with Supreme Court seeking clarification towards
AnnualLicenseFees
HDFCplanstoraiseRs2500crore
Siemens:Companysignsdefinitiveagreementforacquisitionof99.22%stake
inC&SElectricforRs2,120crore
AxisBankproposestoraisefundsuptoRs5,000croreviaNCDs
Cipla - USFDA completes cGMP inspection at Bommasandra unit with 4
observations
BajajFinance:BoardwillmullraisingfundsviaNCDsonJanuary29.
VSTTillers:SignsMoUwithCzechRepublic-basedZetorTractors
PSPProjects:CompanybagsordersworthRs358crore
Sunteck Realty entered into an agreement for joint development of
propertieswith4entities
VSTTillersenteredintoaMoUwithZetorTractorsa.s.,CzechRepublic
Axis Bank proposes to raise funds by issuing senior unsecured redeemable
NCDaggregatinguptoRs5,000crore
VarunBeveragesboardmeetingonFebruary7toconsidercapitalraising
MarutiSuzukiNEXArollsoutStylishandSportyCiazS
TVS Motor forays into electric mobility with connected and advanced
technologyscooter'TVSiQubeElectric’
Budget 2020
Increase deduction limit, say planners
Financial planners are hopeful that the
upcoming Union budget 2020 will bring some
respite to investors and taxpayers. They also
believe that it’s high time to revamp
deductions and exemptions available under
various sections of the Income-tax Act, 1961,
astheyarenotinlinewithpresent-dayneeds.
Experts also feel that the government
should look at the strategy to boost long- term
investments, especially equity, and enhance
deductionbenefitsforretiredindividuals.
Enhance80Climit
The Section 80C deduction limit of ₹1.5
lakh was enhanced through the Finance Act,
2014. But more than 25 investment products
and expenses, including the Employees’
Provident Fund (EPF), investment in equity-
linked savings schemes and children’s tuition
fees, qualify for deduction under Section 80C.
In many cases, EPF and tuition fees are enough
toexhaustthe₹1.5lakhlimit.
Other planners say that if splitting the
investments under various sections is not
possible, the ₹1.5 lakh deduction limit should
be increased. “At least an increase of ₹1 lakh
should be made in the deduction limit under
Section 80C," said Rohit Shah, founder and
chief executive officer, Getting You Rich, a
financialplanningfirm.
Given the high cost of living, especially in
metro cities, the government should ensure
thatapersonearningupto₹10lakhshouldnot
have to pay tax after investments in various
tax-savinginstruments,addedShah.
Boostequityinvestments
Experts feel that the government should
consider making equity instruments more
rewarding for investors and simplify their
structure, especially given the current
economicslowdown.
“There’s a need to simplify equity investing
because there are a lot of things to understand
and look at before investing. For instance, the
different tax rates applicable in case of short-
term capital gains and long-term capital gains
(LTCG), the grandfathering date, exemption on
long-term capital gains up to ₹1 lakh,
implication of security transaction tax and so
on. So equity investing has not only become
costly but also more complicated. The
government should think through and simplify
equityinvestingasboostingsuchinvestmentis
theneedofthehour,"saidShah.
IncentivizeSeniorcitizens
There is no doubt that healthcare costs and
lifestyle expenses have increased significantly
year after year, and senior citizens suffer the
most on account of these. That’s why the
government needs to specifically look into the
benefits and products available for senior
citizens,saidexperts.
“Have a single tax treatment for retirement
products and may be create a separate section
for deductions (for seniors). Also, there is no
need of having different regulators for
retirement products. For instance, retirement
mutual funds are under the Securities and
Exchange Board of India (Sebi), the National
Pension System (NPS) is under the Pension
Fund Regulatory and Development Authority
and annuity plans under the Insurance
Regulatory and Development Authority of
India. This (a single regulator) will help bring
consistency in terms of products and taxation.
Asofnow,thereis‘regulatoryarbitrage’,which
isnotgood,"saidMashruwala.
Also, deductions related to seniors’
medical expenses, especially for critical illness,
shouldbeentirelytax-exempt,saidexperts.
by Nitin Shahi

2. Wednesday 29 January, 2020
STOCK REPORT
Derivative Analysis
Owner & Publisher FINDOC CAPITAL MART PRIVATE LIMITED, Printed by Rakesh Kumar Prop. of Bhagotra Printers , 111 Sukhdev Market, Back Side Kailash Cinema,
Nr. Petrol Pump, Civil Lines, Ludhiana and Published at 5th Floor, Kartar Bhawan, Nr. PAU Gate No.1, Ferozepur Road, Ludhiana. By Nitin Shahi, Editor of Findoc Prime.
More than three thousand one
hundred crore rupees digital payment
transaction took place in the current
financial year so far. Finance Ministry said,
numerous measures have been proposed
in the budget 2019-20 to promote digital
payments further. AIR correspondent
reports that nearly 11 lakh BHIM Aadhar
PaypointofsaledevicesareinIndia.
Government has taken
several initiatives in the
recent past for promotion of
digital payment and less
casheconomy.Overthepast
three years, digital payment
transactions have registered
tremendousgrowthinIndia.
Presently there are more
than 52 lakh physical or
mobile point of sale (PoS)
devices in the country. The number of
monthly BHIM - UPI transactions have
increased from over seven thousand 500
lakhs in June last year to over 13 thousand
lakhstillDecemberlastyear.
Digital transaction has brought
transparency, significantly reduced
corruption and improved public service
deliverytobenefitthepoor.
Numerous measures have been
proposed in budget 2020 to
promote digital payments further
Name
Current
Price
Market
Capitalization
Return on
capital
employed
Sales
growth
10Years
Profit
growth
10Years
HDFC Bank 1213.2 664668.16 7.69 20.48 25.82
HD F C 2395.8 414240.45 11.14 23.41 21.53
Kotak Mah. Bank 1618.35 309272.34 7.92 21.23 27.1
Bajaj Fin. 4164.35 250564.39 13.02 40.4 60.69
Bajaj Finserv 9557.6 152097.06 14.02 60.39 46.37
IndusInd Bank 1271.2 88103.57 7.62 25.43 34.64
Adani Ports 381.25 77460.54 14.72 24.77 26.02
Godrej Consumer 737.75 75421.39 20.22 22.14 28.54
Motherson Sumi 140.7 44432.13 16.91 37.7 24.81
Power Fin.Corpn. 115.85 30585.34 9.83 23.44 21.04
Muthoot Finance 751.15 30118.76 16.22 27.29 35.05
Aurobindo Pharma 511 29941.46 18.45 20.53 44.66
Page Industries 26307.15 29332.47 68.73 27.33 28.4
Cholaman.Inv.&Fn 329.45 25758.91 10.81 20.05 59.44
L&T Fin.Holdings 119.05 23867.54 10.38 281.29 103.67
M&MFin. Serv. 352.5 21776.21 11.64 22.28 23.59
Astral Poly 1148.4 17302.05 23.44 29.57 30.13
RBL Bank 336.2 17091.27 7.35 46.55 39.78
Manappuram Fin. 184.85 15619.42 15.15 37.92 41.03
WABCO India 6700.35 12703.86 23.05 20.96 22.15
Phoenix Mills 818.8 12562.76 12.09 34.82 21.84
PVR 1963.2 10077.57 19.22 24.24 34.54
Name
Current
Price
Market
Capitalization
Return on
capital
employed
Sales
growth
10Years
Profit
growth
10Years
V-Guard Inds. 229 9803.82 25.98 23.89 25.31
Avanti Feeds 688.5 9380.51 36.49 48.26 44.26
JMFinancial 103.75 8727.13 14.12 22.74 22.22
Bombay Burmah 1187.85 8287.86 40.47 39.5 76.23
PNB Housing 458.95 7718.94 9.66 39.11 35.09
Aegis Logistics 210.9 7163.57 20.92 30.72 23.22
Westlife Develop 433.8 6752.58 6.19 100.73 46.83
Can Fin Homes 470.1 6259.58 9.67 22.72 25.13
Sunteck Realty 402.95 5898.05 12.32 45.18 30.39
APL Apollo 2069.4 5146.03 19.81 29.93 42.08
Delta Corp 188.85 5116.67 15.71 22.95 42.68
Mah. Scooters 4255.4 4863.92 0.75 43.87 23.81
Indbull.RealEst. 105.7 4805.8 12.6 37.24 35.14
Just Dial 598.05 3879.66 21.93 26.36 36.51
Granules India 151.5 3851.85 14.75 22.95 49.27
V-Mart Retail 1967.8 3572.64 28.87 25.98 51.38
Cera Sanitary. 2683.2 3489.74 27.16 23.73 23.24
Kaveri Seed Co. 477 3011.26 22.28 20.1 25.07
Himadri Specialt 68.8 2880.68 25.49 20.47 21.36
Suprajit Engg. 202.8 2836.61 21.5 22.68 30.91
Bharat Rasayan 6447.75 2740.29 32.01 25.39 36.16
Nirlon 290.35 2616.63 15.97 42.82 56.12
Air India sale: EoI out, govt to completely exit airline
The Government of India (GoI) will
completelyexit AirIndia, includingin units
Air India Express (AIXL) and Air India SATS
(AISATS), in what is seen a major step to
ensure success in its second attempt at
divestingthenationalcarrier.
"The GoI has given an ‘in-principle’
approvalforthestrategicdisinvestmentof
Air India by way of transfer of
management control and sale of 100
percent equity share capital of AI held by
GoI, which will include AI’s shareholding
interest of 100 percent in AIXL and 50
percent in AISATS," the expression of
interest (EoI) document released on
January27stated.
The government has appointed EY to
advise and manage the proposed
transaction. The last date to submit the
EoI is March 17, and the government will
intimate the qualified bidders by March
31.
A successful sale of Air India is
imperative for the government to meet its
disinvestment target. Moreover, the
airline, which is dependent on
governmentlargessetorunitsoperations,
needsanewownertokeepflying.
High
Low
746.65
735.4
319.4
316.3
86.8
85.45
1,224.25
1,214.00
2,469.50
2,415.10
124.55
120.6
118.6
116.45
61.45
60.4
SBIN 30-Jan-20 318.2 1.75 0.55%
Symbol
Expiry
Date
Last
Price
Increase
in OI
AXISBANK 30-Jan-20 742.75 2.65 0.36%
HDFC 30-Jan-20 2,453.25 50.85 2.12%
4,56,88,000 41,52,000 10.00%
HDFCBANK 30-Jan-20 1,222.80 6.75 0.56%
ASHOKLEY 30-Jan-20 86.2 0.9 1.06%
TATAPOWER 30-Jan-20 61.25 0.6 0.99%
3,09,78,000 29,22,000 10.41%
IOC 30-Jan-20 118 0.5 0.43%
NMDC 30-Jan-20 123.7 0.65 0.53%
7,02,90,000 28,35,000 4.20%
Chg
(Rs.)
Chg
(%)
Open
Interest
Increase
%
9,32,28,000 28,88,000 3.20%
2,52,56,750 31,48,000 14.24%
2,85,67,000 35,23,000 14.07%
10,04,13,000 58,62,000 6.20%
4,69,74,000 75,58,800 19.18%
High
Low
540.35
533.35
112.9
110.65
191.9
188.25
193.25
188.7
261
255.85
147.8
144.05
116.95
114.9
236.2
232.5
Symbol
Expiry
Date
Last
Price
Increase in
OI
ICICIBANK
30-Jan-20 534.8 -2.75 -0.51%
POWERGRID
30-Jan-20 189.1 -2.65 -1.38%
10,20,05,750 1,73,01,625 20.43%
NTPC
30-Jan-20 111.25 -1.5 -1.33%
VEDL
30-Jan-20 144.6 -4.15 -2.79%
3,06,12,600 74,16,900 31.98%
JSWSTEEL
30-Jan-20 258.1 -3.5 -1.34%
COALINDIA
30-Jan-20 189.2 -3.3 -1.71%
4,05,65,400 38,95,000 10.62%
ITC
30-Jan-20 232.75 -2.2 -0.94%
ONGC
30-Jan-20 115.5 -1.15 -0.99%
Chg
(Rs.)
Chg
(%)
Open
Interest
Increase
%
10,54,72,800 36,28,800 3.56%
6,50,26,500 52,39,500 8.76%
4,30,35,300 54,94,700 14.64%
5,00,48,000 79,16,000 18.79%
8,20,08,000 94,36,800 13.00%
Ban on upfront commission
hits new IFA registrations
The ban on upfront commission
seems to have dampened interests of
those wishing to become independent
financialadvisors(IFAs).
According to data from the
Association of Mutual Funds in India
(AMFI), new IFA registrations have fallen
55 percent in this financial year (FY20)
comparedtoFY19.
In April-December of FY19, the
mutual fund industry added 14,311 new
AMFI Registration Number (ARN) in the
individual category. In comparison, the
industry has added a mere 6,431 new
IFAsinApril-Dec(FY20).
Industry experts attributed the fall in
new IFA registrations to revision in
commission structure for mutual funds.
The recent changes in total expense ratio
(TER)structurebymarketsregulatorSEBI
may have affected the feet-on-street
fraternity. In September last year, SEBI
banned upfront commissions paid to MF
advisers. SEBI directed fund houses to
move to an all-trail model. After SEBI’s
circular, trail commissions have dropped
20-25 basis points (100 bps=1
percentagepoint).
SEBI has further trimmed the annual
TER that very large size MF schemes
would charge to 2.25 percent. Earlier,
TER was below 2.5 percent but there was
scope for market competition to
determineadvisercommissions.
With TER now reduced to critically
low levels, the adviser community is
seeing a decline in new entrants, leaving
investors all alone to decide on MF
schemes. Overall, the MF industry added
over 32,000 ARNs across all distribution
categories.
Decade old advisers have already
generated a high revenue surplus during
the erstwhile high commission structure
when the spread on a MF investment
was shallow. In the new commission
regime, it's the new age skill-based IFAs
thatarefacingtheheatalone.

3. Wednesday 29 January, 2020
MUTUAL FUND SECTION
Foreign portfolio investors have infused a net
sum of 1,624 crore rupees into the domestic
capital markets in January so far. As per latest
depositories data, Foreign portfolio investors
put-in a net of 13,304 crore rupees, in equities
and withdrew a net 11,680 crore rupees from
the debt segment between January 1 and 24.
This translates into a total net inflow of 1,624
crorerupees.
FPIs infuse Rs 1,624 crore in
Indian markets in January
The country's foreign exchange reserves rose 943 million US
Dollars to touch a life-time high of 462.16 billion US Dollars in the
weekendedJanuary17.
The rise in reserves was mainly on account of an increase in
foreign currency assets, which rose by 867 million US Dollars to
428.45billionUSDollars.
In the reporting week, gold reserves increased 70 million US
Dollarsto28.56billionUSDollars.
The special drawing rights with the International Monetary
Fund (IMF) were up by 3 million US Dollars to 1.45 billion US
Dollars.
Thecountry'sreservepositionwiththeIMFroseby3millionUS
Dollarsto3.70billionUSDollars.
Result Section
Bank of Baroda: Q3 loss at Rs
1,406.9 crore versus profit of Rs
736.7 crore, NII rises 1.4% to Rs
7,129croreQoQ.
ICICI Bank Q3: Net profit was at Rs
4,146.5 crore versus Rs 1604.9
crore,NIIatRs8,549.3croreversus
Rs6875.3crore,YoY
Wendt: Q3 profit dips 59.3% to Rs
2.2 crore, revenue falls 22.2% to Rs
33.9croreYoY.
EIH: Q3 profit rises 5.3% to Rs 95
crore, revenue dips 3.8% to Rs
509.5croreYoY.
JSW Steel: Q3 profit plunged
88.3% to Rs 187 crore, revenue fell
11.1%toRs18,055croreYoY.
APL Apollo Tubes Q3: Net profit
was up at RS 83.3 crore versus Rs
12.9 crore, revenue at was up Rs
2,115.9 crore versus Rs 1,691.2
crore,YoY
DCB Bank Q3: Net profit was up
12.3% at Rs 96.7 crore versus Rs
86.10 crore, NII was up 10% at Rs
323.1 crore versus Rs 293.6 crore,
YoY
Prestige Estates Q3: Consolidated
net profit at Rs 216 crore versus Rs
67.4 crore, revenue was at Rs
2,680.9 crore versus Rs 1,053.5
crore,YoY
Zensar Tech Q3: Net profit down
50.6 percent at Rs 39.5 crore
versus Rs 79.9 crore, revenue
down 4.8 percent at Rs 1,020.6
croreversusRs1,072.3crore,QoQ
Biocon Q3: Net profit down 6.6
percent at Rs 202.8 crore versus Rs
217.2 crore, revenue up 13.5
percent at Rs 1,748.1 crore versus
Rs1,540.8crore,YoY
I n d i a b u l l s Ve n t u r e s Q 3 :
Consolidated net profit down 13.7
percent at Rs 104 crore versus Rs
120.4 crore, revenue up 53.1
percent at Rs 866.8 crore versus Rs
566crore,YoY
L&T: Q3 profit rises 15.2 percent to
Rs 2,352 cr, revenue up 5.9 percent
to Rs 36,242.7 cr YoY; order inflow
at Rs 41,579 cr. Axis Bank: Q3 profit
increases 4.5 percent to Rs 1,757
cr, NII up 15.2 percent to Rs 6,453
crYoY,slippagesatRs5,124cr.
RBL Bank: Q3 profit dips 69
percent to Rs 70 cr, NII grows 40.8
percent to Rs 922.6 cr YoY, asset
qualityweakens.
Karnataka Bank: Board will
consider raising capital on January
27.
Raymond: Q3 profit jumps to Rs
197 cr versus Rs 40 cr, revenue up
12.5 percent to Rs 1,885 cr versus
Rs1,675crYoY.
Ceat: Q3 profit flat at Rs 52.8 cr,
revenue rises 1.9 percent to Rs
1,762crYoY.
Tata Communications: Q3 profit
rises 8.6 percent to Rs 58.5 cr,
revenue dips 1 percent to Rs 4,229
crQoQ.
HDFC: Q3 profit surged to Rs
8,372.5 cr versus Rs 2,113.8 cr, NII
grew 9.8 percent to Rs 3,296.7 cr
YoY.
InterGlobe: Q3 consolidated profit
jumped to Rs 496 cr versus Rs 185
cr, revenue grew 25.5 percent to Rs
9,932crYoY.
Torrent Pharma: Q3 profit rose 2
percent to Rs 251 cr, revenue fell
4.1percenttoRs1,966crYoY.
United Spirits: Q3 profit jumped
15.2 percent to Rs 232 cr, revenue
increased2.9percenttoRs2,587.6
crYoY.
JK Paper: Q3 profit rose 18.3
percent to Rs 131.8 cr, revenue
dipped 5.6 percent to Rs 820.6 cr
YoY.
Music Broadcast: Q3 profit dipped
37.8 percent to Rs 10 cr, revenue
declined 20 percent to Rs 69.6 cr
YoY.
Tata Steel Long: Consolidated net
lossatRs112.2cragainsttheprofit
of Rs 25.7 cr YoY in Q3.
Consolidated revenue at Rs 999.3
cragainstRs260.8crYoY.
HG Infra: Q3 net profit (RD) fell 5.6
percent to Rs 33.5 cr against Rs
35.5 cr YoY. Revenue (GU) climbed
3.8 percent to Rs 571.5 cr against
Rs550.8crYoY.
Shanthi Gears: Q3 net profit (RD)
fell 38 percent to Rs 6.1 cr against
Rs 9.8 cr (YoY). Revenue (RD) came
atRs58cragainstRs61.5cr(YoY).
V2 Retail Q3: Net profit down 12%
at Rs 21 crore versus Rs 23.6 crore,
revenue down9.1%at Rs 219 crore
versusRs241.1crore,YoY
CCL Q3: Consolidated net profit up
44.1% at Rs 47 crore versus Rs 32.6
crore, revenue up 28.8% at Rs
302.7 crore versus Rs 235 crore,
YoY
International Monetary
Fund, IMF chief Kristalina
Georgieva today said growth
slowdown in India appears to
betemporary.
Speaking at the World
Economic Forum (WEF) 2020
at Davos, she said the world
appears a better place in
January 2020 compared to
what it was when IMF
a n n o u n c e d i t s Wo r l d
Economic Outlook in October
2019.
She said the factors driving
this positive momentum include receding trade
tension after the US-China
first phase trade deal and
synchronized tax cuts, among
others. She, however, said 3.3
percent is not a fantastic
growth rate for the world
economy.
On Monday, the fund
lowered growth estimate for
the world economy to 2.9
percent for 2019, citing
negative surprises in few
emerging market economies,
especially India. The IMF also
revised downwards its
forecastforIndiato4.8percentfor2019-20.
Growth slowdown in India appears
to be temporary, says IMF chief
Forex reserves rise to
462.16 bn in the week
ended Jan 17
SchemeName AuM(Cr) 1Y 2Y 3Y 5Y 10Y
AxisLongTermEquityFund-GrowthELSS 21,472.82 22% 8% 16% 10% 18%
AdityaBirlaSunLifeTaxRelief96 -GrowthELSS 10,029.20 10% 1% 12% 9% 13%
ICICIPrudentialLongTermEquityFund(TaxSaving)-GrowthELSS 6,707.34 13% 4% 10% 7% 13%
DSPTaxSaverFund -GrowthELSS 6,259.99 20% 3% 11% 10% 14%
FranklinIndiaTaxshieldFund-GrowthELSS 4,123.88 9% 1% 8% 6% 13%

4. Wednesday 29 January, 2020
Trade FinanceCash flow is the lifeblood
of a business – and managing
cash flow is fundamental for
the long term viability of any
b u s i n e s s , e s p e c i a l l y
companies in the SME
segment. Maintaining
adequateliquidityatalltimes
and at the same time it is
importanttofocusonthecostoffunds.
Traditionally, companies which are
involved in cross border trade
(exporters & importers) Letter of
Credit and Performance Guarantees
from Banks is the primary source of
financing Working Capital needs. Not
manypeopleareawarethatcompanies
involved in cross border trade can
access alternate means of financing
through AIF Funds and Export Finance
corporations located in the various
countries. In our series on “Trade
Finance” we would be like to
share how companies can
benefit by availing funds
through Supply chain finance
“SCF”
SCF offers a solution, as it
provides a robust way of
bridging the gap between
incoming and outgoing
payments. SCF is, in essence, a means
of optimizing working capital and
reducingsupplychainrisk.
SCF connects buyers, sellers and
financial institutions onto one
platform. This optimizes working
capital for both buyers and suppliers; it
helps buyers accelerate cash flow, and
gives suppliers access to lower
financing costs as well as providing
visibility into outstanding customer
invoicesandtimingofpayment.
This has several benefits. For
buyers it can improve financial metrics
such as days payable outstanding
(DPO), as well as freeing up cash that
would otherwise be trapped in the
financial supply chain – cash that can
thenbeinvestedbackintoabusinessto
fuel growth. For suppliers, SCF can
mitigate the effect of payment term
extensions and help accelerate their
owncashflow.
For businesses operating on thin
margins, the ability to improve cash
flow without increasing debt can be
invaluable – even multinational giants
such as Nike and Volvo have reaped the
benefitsofSCFinrecentyears.
Supply Chain Finance - An elegant
solution
Freeing up working capital is
perhaps one of the best ways for a
company to achieve growth, both by
improving access to ready funds and by
b u ild in g st ro n ger, h ea lt h ier
relationships with suppliers. These
kinds of relationships, based on mutual
trust and good will, can give businesses
of all sizes a real competitive edge, not
justwhenitcomestoprocurement,but
ateverystageofthesupplychain.
To summarise, Supply Chain
Financing, which could result in huge
savings in cost of working capital which
can be as high as 50% in certain cases.
The initiators of it have to be the large
companies and it helps in the growth of
net sales. Implementing Supply Chain
Financing also disproportionately
benefits the smaller companies.
However, if the large companies don’t
do it, it raises the cost of financing so
much,thatitcripplestheentiresystem.
By Shammi Khanna
President
at Findoc Financial Services Group
The wisdom tooth
UBUNTU
I Am because we are ; DESMOND
TUTU
In the society and the corporate
world there is no space for the word
“I”, it is always better to use the word
“we” and work as a team. One will not
remain happy for a long time on a
personal accomplishment, but if it is a
team effort he would always cherish
the journey to success. It is always the
team performance that brings laurels
and happiness, though there may be
players who may have to perform
extraordinarily but that doesn’t mean
that the performance of one player is
ofnorelevance.
ItremindsmeofoneAfricanstory;
An anthropologist who had been
studying the habits and culture of a
remote African tribe and he was
working there for quite some time. He
proposed a game to the children living
inAfricantribe.
he put together a basket filled with
sweets and delicious fruits from
around the region and wrapped it in a
ribbon.Heplacedthebasketalittlefar
away from children under a tree and
then the man drew a line in the dirt,
looked at the children, and told them
to run when he tell them to start, run
to the tree and whoever gets to the
basket first will win the basket of
sweetsanddeliciousfruits.
Than he told them to run, he was
surprised to see that they all took
each other’s hands and ran together
to the tree. Needless to say that they
reached together. Then they sat
together around the basket and
enjoyedtheirtreatasagroup.
The anthropologist was shocked.
He asked why they would all go
together when one of them could
have won all the fruits for
themselves?
A young girl looked up at him and
said, “Ubuntu” which means How can
oneofusbehappyifalltheotherones
aresad?
Here is how Desmond Tutu
explainedtheconceptofUbuntu
Africans have a thing called
ubuntu. We believe that a person
is a person through other
persons. That my humanity is
c a u g h t u p , b o u n d u p ,
inextricably, with yours. When I
dehumanize you, I dehumanize
myself. The solitary human
beingisa contradictioninterms.
Therefore you seek to work
for the common good because
your humanity comes into its
o w n i n c o m m u n i t y, i n
belonging. byNitinShahi
MF SEBI
Date Equity Debt
22-Jan-20 -423.47 3,308.77
21-Jan-20 -251.06 1,810.26
20-Jan-20 -1,019.71 1,372.16
-2000
-1000
0
1000
2000
3000
4000
20-Jan-20 21-Jan-20 22-Jan-20
Equity Debt
-1,500.00
-1,000.00
-500.00
0.00
500.00
1,000.00
1,500.00
2,000.00
20-Jan-20 21-Jan-20 22-Jan-20 23-Jan-20
Equity Debt
FII SEBI
Date Equity Debt
23-Jan-20 1,497.17 255.51
22-Jan-20 28.75 926.86
21-Jan-20 1,696.53 -1,163.65
20-Jan-20 1,301.46 93.12