Why investors are wary of India???

Debt flood washes over corporate sales stream – Financial Express

Debt flood washes over corporate sales stream
Baiju Kalesh, MG Arun
Posted online: 2011-11-21 01:45:42+05:30

Mumbai | Heavy loans taken by Indian companies in the past to build mobile networks, power plants, airlines and airports have come back to haunt them. Deepening economic slowdown, rising interest rates and a falling stock market, which has closed the tap to raise equity, have put question marks over profits, loan repayment capacity and growth.

In many companies, the quantum of debt has even overtaken their sales.

Bharti Airtel, India’s largest mobile telephony company by subscribers and revenues, owes its lenders R60,091 crore against sales of R59,467 crore as on March 31, while rival Reliance Communications (RCom) must repay R33,744 crore with R22,430 crore revenues, Bloomberg data show.

The companies borrowed heavily to purchase third-generation wireless spectrum and later invested in rolling out networks. Mobile telephony companies paid roughly R1.06 lakh crore to purchase 3G and BWA spectrum in 2010. Bharti Airtel did not respond to emails and telephone calls.

30 lessons from life and career of NR Narayana Murthy

Source: The Economic Times: Most read articles.

NR Narayana Murthy , who steps down as Infosys chairman on August 20, is a role model for not just what he achieved but also how he did it. Here are 30 lessons from Murthy, one for each year he spent at company.

Seize Your Gandhi Moment
Murthy, a self proclaimed socialist in the mid ’70s was jailed for 72 hours in Bulgaria. The experience taught him that entrepreneurship and job creation is the way to alleviate poverty.

You might fail, but get started
Learn from mistakes and move on. In 1976, Murthy founded Softronics, a company that lasted a year and a half. When he realised that his first venture wasn’t taking off, he moved on.

Think Big. Don’t Hesitate to Start Small
In 1981, a determined Murthy started Infosys with Rs 10,000 he borrowed from his wife. In few years, Infosys went on to become one of the largest wealth creators in the country.

Cut Yourself a Slice, Not a Large One Always
When Infosys was set up, Murthy took a pay cut while salaries of other co-founder’s were increased by 10 percent. According to Murthy, a leader needs to show his or her sacrifice and commitment.

Finding the Tea!

My poor wife was sick in bed with the flu. Being a dutiful husband, I offered to fix her some of her favorite herbal tea. I couldn’t find the tea though and went back upstairs to ask where it was.

She said, “I don’t know how it could be any easier to see. It’s in the pantry, third shelf down, in a cocoa tin marked ‘matches’ !!!

Shott vs Nott

Remember “Peter Piper picked a peck of pickled peppers” rhyme? Here is a new one to try. Enjoy!

Shott Versus Nott

A duel was fought between Alexander Shott and John Nott. Nott was shot and Shottwas not. In this case it is better to be Shott than Nott. Some saidthat Nott was not shot. But Shott says that he shot Nott. It may be that the shot Shott shot, shot Nott, or it may be possible that the shot Shott shot, shot Shott himself. We think, however, that the shot Shott shot, shot not Shott, but Nott. Anyway, it is hard to tell which was shot and which was not!

When Governments Can’t Print Money!

By – SWAMINATHAN S ANKLESARIA AIYAR, The Economic Times

The inability of countries to print their way out of debt is something markets have reckoned with only recently

We are used to the notion that companies can go bust for want of cash but not governments, since the latter can print money without limit. This may cause high inflation or even hyperinflation (as in Russia under Yeltsin or Germany in the 1920s). But as long as governments can print currency, they can spend and borrow without limit. Right?

Wrong. The panic in financial and stock markets across the globe last week reflected the growing realisation that neither the US nor major European governments can print money without limit to finance government bond issues, and so could default. The US Constitution says both houses of Congress must approve any increase in the government’s borrowing limit (or debt ceiling). If either house says no, the government cannot issue more bonds, and cannot ask the Fed to print money to buy forbidden bonds.

An experienced team behind Budget 2011

Source: Business Standard / Feb 28, 2011, 00:47

Finance minister Pranab Mukherjee has a relatively experienced team this time compared to last year’s, when both the revenue secretary, and the chief economic advisor were new. Most of the senior officials in the finance ministry had worked on last year’s Budget and are expected to provide the continuity this year as well.

Bringing tears to Indians’ eyes

Jan 21st 2011, 14:00 by S.D. | LONDON

Source: The Economist

HEADLINES about the Indian economy—particularly in the international press—have in recent times been dominated by excitement about near double-digit growth and speculation about when (and whether) India is on track to start growing faster than China. But domestically, (and now elsewhere, too) the big economic—and increasingly political—issue is a familiar one: runaway inflation.

The sunset of the decade… Captured 31 Dec 2010

Sent on my BlackBerry® from Vodafone

Grounded PIIGS

Jan 4th 2011, 12:48 by The Economist

Countries with the fastest and slowest growth forecasts

THE cost of insuring Ireland’s debt against default is now higher than insuring Argentina’s. Five-year Argentinean credit-default swaps (CDS) have been tightening, whilst Ireland’s have widened to 609 basis points, the third highest in the world, after Greece and Venezuela. GDP growth forecasts for 2011 are not much more optimistic for these European countries. According to the Economist Intelligence Unit, a sister company of The Economist, Ireland’s and Greece’s GDP will decline by 0.9% and 3.6% respectively. The PIIGS (Portugal, Ireland, Italy, Greece and Spain), find themselves among the slowest growers this year. In contrast, after avoiding recession in 2008 and 2009, and enjoying the global recovery in 2010, Qatar is set to grow by 15.8% this year. Strong growth is largely due to its liquefied natural gas (LNG) projects and an expansionary fiscal policy focused on infrastructure. China and India are also projected another year of strong growth, 8.9% and 8.6%, respectively.