Learning
R Balakrishnan decodes annual reports

 

The Moneylife columnist shared his four decades of experience in financial markets

 

Decoding annual reports and getting behind the numbers of a company is not an easy task. R Balakrishnan, who has four decades of experience in financial markets and having been among the founding team of CRISIL (Credit Rating and Information Services), the head of research at DSP Merrill Lynch and CEO of Sahara Mutual Fund, delved into the nitty-gritties of an annual report.

 

Annual reports are generally studied from an accountant's perspective, but investors need to focus on specific areas to take their decisions. This necessitates studying annual reports from a different perspective. R Balakrishnan delineated different aspects of the annual report from an investor's perspective, highlighting the fact that though every number tells a story, every story need not be relevant. Simplifying financial statements, he explained the interrelationship between different financial statements. He deconstructed different aspects right from Director's Report, Management Discussions to different quantitative aspects.

An investor's job is incomplete unless he analyses financials of the company. Delving into the most important ratios, which need to be monitored by investors, Mr Balakrishnan pointed out that how much the shareholders do learn from the ratios can be the most critical factor. While short-listing companies, he remarked that the two most important ratios, the investors should look at are return on capital employed (RoCE) and return on equity (RoE). Highlighting the importance of RoE, he said, ''Stock prices follow RoE in the long-run. In the short run, stock prices follow anything.''

A session on annual reports is not complete without real-life examples. The second part of the seminar consisted of delving into the financials of Inox Wind and Hindustan Unilever Ltd (HUL). The Moneylife columnist took the audience through ratio calculations in a step-by-step manner.

 

Kotak Securities, one of the co-sponsors of the event, conducted a lucky draw. Three lucky attendees won vouchers for PVR.

 

R Balakrishnan was graceful enough to answer questions from an inquisitive audience, in the midst of the session. The seminar ended with Mr Balakrishnan giving his deep insights into the questions posed by the audience. He answered questions relating to issues like corporate governance, pledging of shares, and also issues relating to different sectors and red flags. Towards the end, replying to a question on debt, he remarked lightly, ''Many businessmen in India treat loans as a revenue.”

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COMMENTS

Balaji

9 months ago

I missed the event. Do you have video uploaded?
Thanks.

ch prakash

9 months ago

If U donot mind, Why don't the CDs to be given for subscribers for certain consideration.

Raveendra R

9 months ago

Wish I am in Mumbai to attend excellent session by Balakrishnan

REPLY

Nilesh KAMERKAR

In Reply to Raveendra R 9 months ago

Sir's two other similar videos are available on internet. . . Thoda-sa search karlo

ch prakash

In Reply to Nilesh KAMERKAR 9 months ago

Pl. post the links if possible

Telecom ministry assessment doubtful about 'Freedom251'

Taking the world by surprise, the firm on Wednesday launched 'Freedom 251' smartphone that, it said, has been developed 'with immense support' from the government

 

The telecom ministry has done an internal assessment on viability of the handset 'Freedom251', being touted as the world's cheapest smartphone at Rs.251 (less than $4), and found such a device cannot be offered for not less than Rs.2,300-2,400, say informed sources.
 
"An internal assessment was done by the telecom ministry from the day the phone was launched. Officials have found that such a handset cannot be offered for less than Rs.2,300-2,400," an official source told IANS.
 
Noida-based startup, Ringing Bells, which is promising the world's cheapest "Make in India" smartphone, on Friday claimed to have received nearly five crore registrations in just two days of opening up for online pre-orders.
 
Ringing Bells president Ashok Chadha told IANS that since the company will hand over 25 lakh "Freedom 251" phones to the people who have registered for it online, the firm is now considering whether to stop the registration process which was supposed to go on till 8 p.m. on February 21.
 
Taking the world by surprise, the firm on Wednesday launched "Freedom 251" smartphone that, it said, has been developed "with immense support" from the government.
 
There are, however, some apprehensions about its final appearance and performance. It looks similar to an Apple iPhone. All the icons of the built-in app are a pixel-to-pixel copy of Apple's iOS icons.
 
"Freedom 251" has a Android 5.1 operating system, a 4-inch qHD IPS display, a 3.2-megapixel primary and a 0.3-megapixel front camera.
 
The smartphone comes with pre-installed apps like Swachh Bharat, Women Safety, WhatsApp, Facebook and Twitter, among others.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

 

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Jat stir: Maruti Suzuki suspends production

Due to the Jat agitation in several parts of the state including the worst hit Rohtak, Jhajjar, Bhiwani and Sonipat, many workers in the three plants of the Maruti Suzuki remained absent

 

Maruti Suzuki India Limited (MSIL) on Saturday temporarily suspended the manufacture of cars at its facilities in Manesar and Gurgaon due to the ongoing Jat agitation, a company spokesperson said.
 
"Owing to the agitation, supplies of certain components have been disrupted. As a consequence, the company has had to temporarily suspend manufacture of cars," a company spokesperson said in a statement.
 
Due to the Jat agitation in several parts of the state including the worst hit Rohtak, Jhajjar, Bhiwani and Sonipat, many workers in the three plants of the Maruti Suzuki remained absent.
 
"Company management has decided to suspend work during B and C shifts on Saturday. Workers have been informed through SMS. The situation will be reviewed next week," worker's union leader Kuldeep Janghu told IANS.
 
He said that number of workers coming from nearby districts could not reached to factory due to Jat stir as protesters blocked rail and road traffic.
 
"The company is making efforts to arrange the components from other sources. Once the supply of components is restored, normal operations will resume," further read the company's statement.
 
The combined output from Manesar and Gurgaon is currently about 5,000 vehicles per day.
 
Haryana has been on boil with Jat community agitating demanding reservations in government jobs and educational institutions.
 
Disclaimer: Information, facts or opinions expressed in this news article are presented as sourced from IANS and do not reflect views of Moneylife and hence Moneylife is not responsible or liable for the same. As a source and news provider, IANS is responsible for accuracy, completeness, suitability and validity of any information in this article.
 

 

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