The author here discusses about the illusion that is created by Indian banks in the form of inflated profits because of the mark-to-market accounting method.
According to ET Intelligence Group, in a sample of 1,925 organizations, the profits in the third quarter slumped by 48.7%. However, surprisingly there was one sector that produced excellent results, namely, banks. One wonders that when the global counterparts are doing abysmally bad, how Indian banks show such great profits? The answer lies in their accounting rules that mandate to show mark-to-market value of their bond holding. Corporations have to show the market value of their external loans. For banks, when the central banks slash the interest rates, as happens in time of recession, the market price of the bonds rises considerably resulting in capital gains. However, 24% of these capital gains have to be cannot be liquidated however it is mandatory to show them in accounting reports which projects a rosy picture about the banks which is actually not.
As rupee depreciates against dollar, the rupee value of loans of corporations increase which they are obliged to show in their reports resulting in losses which is a gain for banks. One way is to mandate organizations to declare two sets of quarterly profits, one the standard one while the other with mark-to-market adjustments to project clearer picture to investors.
The article talks about the rising topline of the BHEL but not materializing in corresponding rise in the bottomline.
Although compared to last year, the orderbook of BHEL saw an increase of Rs 1.1 lakh crore but the corresponding rise in net profit has been only Rs 791 crore (2.4%). The main reason for this is deceleration in the power capacity expansion projects which were on completion spree in last year. This requires proactive policy and close monitoring of implementation. More then that, in a short term action, increased funding has to be ensured. PFC would be a good source for short-term but not sustainable on long term basis. Also the majority of current coal based power stations are in vintage status and highly inefficient. There has to be more emphasis on coal gasification and attendant clean-coal technologies in brown-field sites to improve overall efficiency.
Finally, the power stations across the nation needs to critically check the commercial losses on account of power theft that keep the SEBs always cash-strapped, financially weak and unable to fast forward the project scheduling.
The article criticizes the current rootlessness depicted by the Indian movies and later on compares it with one of the previous “truly” post-modern movie.
In the attempt to make post-modern celluloid, Bollywood today ends up making a rootless and baseless movie with an Indian spice of flashy locations, silly/soppy songs and dizzy and dystopian dances. As an example, author talks about how a hero reaches China suddenly from Chandni Chawk without the feeling of slightest twinge. Current Bollywood language is more of Punjabi, to be precise post-modern Punjabi. Current Cinema, as against Guru Dutt’s Pyaasa and Kaagaz ke Phool, is annihilation of Indian culture.
Finally, author believes some filmmaker today should dare to capture true post-modern like the song: Seene mein jalan, aankhon mein toofan sa kyon he... which was truly post-modern; not an atyaachaar as we see today.
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