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Links

Linkfest:October 27,2016

Some stuff I am reading today morning:

Full Text of Cyrus Mistry’s Letter to Tata Sons Board (Quint)

Diwali Special with Market Stalwarts (Money Control)

Axis Bank : Off the Mark (Mint)

Don’t good governance norms apply to Tata Group? (Sucheta Dalal)

Interview with Sunil Singhania (Forbes)

Japanese take refuge in Indian yields (Bloomberg)

10 Smart Reasons to buy the Indian Gold Coin (FE)

Why are hedge funds hiring poker pros? (Alpha Pages)

What every young investor needs to do (LinkedIn)

The $108 Billion Man who has beaten the market (Climateer)

Categories
Excerpts

The 1.18 Lakh Crore Hole in the Tata Group

In an email letter to the members of the Tata Sons board and the trustees of the Tata Trusts, Cyrus Mistry, the recently sacked chairman of the company has referred to himself as a “lame duck” chairman.

In the letter, Mistry lists several instances in which his powers were diminished. He mentions that after his appointment, the Articles of Association were modified, “changing the rules of engagement between the trusts, the board of Tata Sons, the chairman, and the operating companies”.

This, the letter says, severely constrained the ability of the group to engineer the necessary turnaround. Mistry lists the several financial challenges facing group companies, such as Indian Hotels Company Ltd., Tata Capital Ltd., Tata Power Company Ltd. and Tata Motors Ltd. Mistry says in the letter that the capital employed in these “legacy hotspots” rose from Rs 1.32 lakh crore to Rs 1.96 lakh crore between 2011 and 2015. He adds that this figure is close to the networth of the group which is at Rs 1.74 lakh crore. The letter also says “a realistic assessment of the fair value of these businesses could potentially result in the write down over time of about Rs 1.18 lakh crore”.-from Bloomberg 

Categories
Image

This is what hyper inflation looks like

Hat Tip: William Easterly

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Categories
Cartoon

Then & Now

Then:

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Now:
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Categories
Links

Linkfest: October 26,2016

Some stuff I am reading today morning :

The idea of Tata is dead (ET)

IPO Review: PNB Housing Finance (OneMint)

IPO Review: Varun Beverages (BL)

India’s Bollywood Pratfall (Bloomberg)

Mark Mobius offers stock tip as Diwali gift (RJ)

Ayush Mittal:India’s Best MicroCap Investor (Value2Wealth)

Bank Manager’s language (Subramoney)

Correlations don’t last forever (TRB)

Is your workplace a “Super Chickens” experiment? (RetireBy40)

How to mentally overachieve using Darwin’s tricks (FS)