Shuchi Nahar's Weekend Blog!

Pharma Sector uptrend 2020 Shuchi. P. Nahar Road to 2020 As the industry embarks on its road to 2020, it has taken a giant leap in understanding the newer technologies of genomics, proteonomics, etc., which have led to the production of new medicines, diagnostic tools and lines of research. However, there is still a lot to learn about the human body and even better things lie ahead. Companies will have to re-evaluate their product portfolio, pipeline and development strategy. They will need to revise their budgeting and forecasting processes, billing and payment systems, and almost everything about the way they have been going to the market. We believe there are a number of things companies can do to equip themselves for the journey to 2020 and increase their chances of reaching the end of the road in a good shape.The Indian pharmaceutical industry has contributed immensely not just to Indian but to global healthcare outcomes. India continues to play a material role in manuf

Understanding the details of Cashflow Shenanigans (Part-3) Shuchi. P. Nahar Link to Part-1:  https://myweekendspot.blogspot.com/2020/01/catch-trend-its-all-about.html Link to Part-2:  https://myweekendspot.blogspot.com/2020/01/checklist-to-understand-recording-of.html This blog is in the series of my previous three blogs. This blog will help an individual to understand the manipulation done in cash flow statement and help an investor to analyze the statements and be wary of cash flow shenanigans. With so many recent financial frauds going undetected, investors are increasingly questioning the value of the accrual-based figures shown on the Statement of Income. Time and time again, companies have duped investors by recording revenue too soon or hiding expenses. Some sophisticated investors claim that they realize that earnings can be manipulated and therefore put more faith in the “purer” cash flow from operations. While that’s certainly a step in the right direction, be extra

Checklist to understand Recording of Revenue in Financial Statement (Part-2) In continuation of my previous blog post... https://myweekendspot.blogspot.com/2020/01/catch-trend-its-all-about.html?m=1 Investors  rely  on  the  information  that  they  receive  from  corporate executives  to  make  informed  and  rational  securities  selection  decisions.  This  information  is  assumed  to  be  accurate,  whether  the news  is  good  or  bad.  While  most  corporate  executives  respect  investors  and  their  needs,  some  dishonest  ones  hurt  investors  by  misrepresenting  the  actual  company  performance  and  manipulating the  company’s  declared  earnings. Below mentioned are some of the shenanigans done by companies to attract investors and cheat them by manipulating numbers. All the below described pointers cover the frauds that take place due to manipulating Revenue line item in the financials of the companies. RECORDING REVENUE TOO SOON Techniques to Record Revenue

Financial Shenanigans to be traced over the years (Part-1) Link for Part-2: https://myweekendspot.blogspot.com/2020/01/checklist-to-understand-recording-of.html Link for Part-3: https://myweekendspot.blogspot.com/2020/01/understanding-details-of-cashflow.html Follow for more updates:  @ shuchi_nahar While most companies act ethically and follow prescribed accounting rules when reporting their financial performance, some take advantage of gray areas in the rules (or worse, ignore the rules altogether) in order to portray their financial results in a misleadingly positive way. Management’s desire to put a positive spin on financial results has been around as long as corporations and investors themselves. Dishonest companies have long used these tricks to prey on unsuspecting investors, and it is unlikely that they will ever cease to do so. The lure of accounting gimmickry is particularly strong at companies that are struggling to keep up with their investors’ expectations or

New realities of Banking industry  in India Shuchi.P.Nahar India’s  banking  sector  is a study in contrasts: it supports the world’s fastest-growing large economy but is grappling with challenges that test its strength and resilience. Primary among them is the burden of distressed loans. According to Reserve Bank of India (RBI) data, the value of banks’ gross nonperforming assets (GNPA) and restructured assets reached $250 billion in April 2019 and has been growing by almost 25 percent year on year since 2013. State-owned banks account for more than three-fourths of the stressed-asset load, which is now far higher than their net worth. Provision levels are inadequate because these banks hold only 28 percent of GNPAs and restructured assets as provisions. There is a gap of close to $110 billion between the system’s stressed assets and the provisions made. These problems  are  considerably  less  severe  for  private  banks. Banking industry are very crucial to the eco

Book: Shoe Dog - by Phil Knight(co-founder NIKE )  Summary :Shuchi.P.Nahar I ncredible book about Phil Knight  the Co-founder of Nike.  He clearly explains the struggle to build a brand,a business and to execute the idea into implementation. This book is a master piece for one to understand how management of business takes place, how a business is build from scratch to an empire.  Stanford graduate, after a year in the army, he was looking for meaning and had what he called “a crazy idea” Blue Ribbon — Early Beginnings Blue Ribbon (and later Nike) was always cash strapped, until it finally went public (decades later), because every cent was reinvested in ordering/producing more shoes and the company was doubling in size every year. Back then Venture Capital was non-existent and banks would reject Blue Ribbon, as they “didn’t have enough assets”, despite their insane growth. Strapped on money the company always kept super lean, working from storage rooms, surrounded b