CHAANAKYA

SCHOOL OF BUSINESS AND MANAGEMENT

SEPTEMBER 2021 I VOLUME 21 I ISSUE 17

Published by THE FINANCE CLUB

MBA - FINANCE SPECIALIZATION

For Private Circulation Only

Club Activities at a Glance

Alumni Speak

Faculty Speak

Understanding the Pandora Paper

Global Economic Indicators at a Glance

India on the Brink of an Unprecedented Power Crisis

RBI Begins Gradual Withdrawal of Liquidity Support

Gold ETFS

Match It!

A Bright Road Ahead for Brightcom Group

Movie Review - The Pursuit of Happyness

Artificial Intelligence Vs Human Intelligence in Finance

Deep Diving into Bad Banks

The Evergrande Crisis

Unsaid

The Tree of Happiness

Pencil Shading

TABLE OF CONTENTS

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EDITOR'S NOTE

Greetings readers! It is our pleasure to bring to you the MBA Finance Students' contributions forSeptember 2021. This issue is presented by Team Hermes, which is a group ofstudents under the mentorship of Prof. Soumik Bhusan from the MBA FinanceSpecialization. In this issue, the writers have explored a wide range ofcontemporary developments in the world of finance . The section titled “CreativeCorner” showcases the passion students have for art and poetry. We hope thatthe Newsletter will help the readers get an overview of the recent financial news.Along with every article, a “Snapshot” has been provided, which summarizes theentire article.

Team Chaanakya expresses sincere gratitude to our Dean. Dr. Jain Mathew andthe entire leadership team, Head of Specialization, Dr. Mareena Mathew, FacultyCoordinator of Chaanakya, Dr. Nisha Shankar, our expert specialization mentors,and all the contributors for their cooperation and active participation.

Wishing our readers, A happy reading

Best wishes,Team Chaanakya

I

HERMES

This issue is presented by team

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Prof. Soumik Bhusan

Navmeen Latif

M Rohit

SherleyMathews

Sarthak Khurana

Dinesh S

Nithya Shree

VajasSunny

Ramesh D Madankumar Ra

Hariharan

Snekha S

Emi Rose Pius Pinto M Keerthana

CLUBACTIVITIES

AT A GLANCE

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CLUB ACTIVITIES - SEPTEMBER 2021

Industry expert lecture - Future of Analytics in Banking and Finance

The session was facilitated by Dr. Shaleen Srivastava, Chief Manager atthe Central Bank of India, Mumbai. He emphasized the importance offinancial modeling and decision making, which has now taken a shift frombeing intuition-based to data-driven. Further, he spoke about the SpecialMention Account (SMA), risk profiling of customers, paradigm shifts inbanking, and the basic data models that are relevant to the bankingindustry. The session concluded with the Q&A session and the vote ofthanks.

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CLUB ACTIVITIES - SEPTEMBER 2021

External Input Session - Relative Valuation

The session was facilitated by Mr. Peeyush Chitlangia, Founder andDirector, FinShiksha. He explained the importance of relative valuationand how it compliments absolute valuation, practical difficulties inperforming relative valuation i.e., finding firms that are truly similar toeach other in terms of risk, size and business model. Various valuationratios like Price to Earnings (P/E) ratio, Price to Book (P/B) ratio, andother value multiples were also discussed. The session concluded with aQ&A session and the vote of thanks proposed by Dr. Latha Ramesh.

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CLUB ACTIVITIES - SEPTEMBER 2021

External Input Session - CA&MCS

The session was facilitated by Mr. Manish Bajoria, Director Finance,Amazon Pay. He gave us a presentation on a range of topics - how costplanning helps, how cost-based decision-making happens, inventoryplanning, machine learning vs traditional programming techniques inmaking use of data gathered by giving us an example of Amazon. Uponconclusion, a Q &A session was held where the queries from both thestudents and the professors were addressed by Mr. Manish.

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CLUB ACTIVITIES - SEPTEMBER 2021

External Input Session - Applications of Quantitative Analysis in theFinancial Services Industry

The session was facilitated by Mr. Karthik Prabhu (AVP at DeutscheBank, London office). He emphasized on the practical considerationsin Econometric Modelling. He spoke about how to conceptualize a model,by answering what to model, whether we have the right data and where toget the same. He provided examples, both financial and non-financial, toconvey his thoughts. Practical issues of modeling were also discussed. Hethen spoke about the process of modeling, starting from identifying thedrivers all the way to forecasting. With this, he came to a conclusion to hispresentation. Q&A, followed by the vote of thanks by Dr. Nisha Prakash

ALUMNI SPEAK

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OUR DISTINGUISHED SBM ALUMNI – ANUMOY KAR

Anumoy Kar started his career as a Credit Managerresponsible for credit underwriting and assessment in the SMEVertical of ICICI bank for exposures up to Rs. 150 Million. Inhis current role as co-founder provides Debt advisory to SMEand Mid Corporates on debt raising and structuring of fundingrequirements to suit as per client's business model

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A Q1. Brief ly explain about your professionalcareer after complet ing your MBA.

Post my MBA, I was employed with ICICIBank Ltd wherein I was a Credi t Analyst inSME Group unt i l Dec 2019. I was responsiblefor credi t underwri t ing and assessment inSME Vert ical of bank for exposures up to Rs.150 mil l ion for Tamil Nadu Region. Being acredi t analyst , my role per ta ined to thoroughdue di l igence of the borrower including butnot l imited to business of borrower, f inancialassessment and r isk assessment among others .

Q2. What are the chal lenges you have facedat the init ial stage of your professionalcareer and how did you encounter them?

Transi t ion from col lege to a formal corporateenvironment comes up with chal lenges foreveryone. Myself a lso faced chal lenges suchas the role being more of analyt ical andmult i - tasking with t ight schedules . Analyt icalper se was more chal lenging consider ingunl ike col lege where an overview of f inancials ta tements is only taught with not muchindepth focus on detai ls and rat ionale , but inbank in-depth f inancial due di l igence (balancesheet & profi t loss analysis) is carr ied out foreach borrower i r respect ive of quantum ofborrowings and the r igour of such assessmentis comparable to what a char tered account ist ra ined to do. But , due to constant learningand mentoring support of senior col leagues,could catch up the pace and in a short per iodwas able to execute independent ly . Thedegree of chal lenges wil l vary from f ie ld tof ie ld but once one understands theexpectat ions of the job role demands suchchal lenges can be overcome easi ly .

Q3. Why did you choose this career?

Banking is an integral par t of Indian economyor per se for any economy in world.

INTERVIEW WITH ANUMOY KARBanks are the biggest and largest source ofcredi t f low to business across sectors ineconomy r ight f rom a micro industry to alarge conglomerate . Banking was my passionand more so being closely being mentoredduring my col lege days (MBA) by an ex-banker , developed keen interest in the sectorand was keen to join the lending ver t ical ofbank. And to god’s grace, the second bankwhich vis i ted the campus, I got selected andalso got the desired role as wel l . Tosummarize, choosing a career in banking gaveme an opportuni ty to contr ibute to theeconomic development of India and also get a360-degree perspect ive on operat ingenvironment of different business andinteract ing with key s takeholders .

Q4. What development on the horizon couldaffect future opportunit ies business wise?

World is changing at rapid pace and inf inance sector there has been rapid changesand as a consequence new opportuni ty havecropped up in f inancial space as wel l . DataScience, AI, ML, f intech etc are some of theareas where there are enhanced opportuni t iesfor persons possessing r ight ski l l se ts . Havingsaid that , convent ional areas in f inance wil lcont inue to see opportuni t ies and overal l , thesector wil l cont inue to hire f resh brains innear term.

Q4. What development on the horizon couldaffect future opportuni t ies business wise?

World is changing at rapid pace and inf inance sector there has been rapid changesand as a consequence new opportuni ty havecropped up in f inancial space as wel l . DataScience, AI, ML, f intech etc are some of theareas where there are enhanced opportuni t iesfor persons possessing r ight ski l l se ts . Havingsaid that , convent ional areas in f inance wil lcont inue to see opportuni t ies and overal l , thesector wil l cont inue to hire f resh brains innear term.

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Habit of Reading at least one businessnewspaper dai ly

Q5. RBI ends bond purchase planmaintains state quo on rates . What's yourtake on this?

Reserve Bank of India in i ts la tes t bi-monthlypol icy review in October 2021, has decided tokeep the repo rate a t 4 .00% unchanged andstance accommodat ive. I f one reads themonetary pol icy s ta tement each t ime post themeet ing of the commit tee s ince the onset ofthe pandemic, one would observe that RBIhas been very proact ive and has not hesi ta tedto take the path of unconvent ional measuressuch as TLTRO, GSAP 1.0 and GSAP 2.0 inlarge quantum to ensure there is suff ic ientl iquidi ty in the f inancial system and alsoensuring s tabi l i ty . As the s i tuat ion tends tonormalcy as been indicated by high frequencyindicators and inf la t ion moderat ing, RBIending bond purchase plan is a r ight move asthere is suff ic ient l iquidi ty avai lable now andeven banks are f lush with l iquidi ty whichthey have been parking with RBI underreverse repo window. By ending the bondpurchase plan, RBI has s ignal led the marketthat economic act ivi ty , GST col lect ions beingrobust for s t ra ight 8 months, spending bygovernment exchequer in infra sectors are a l lon upward t ra jectory (Govt of India has a lsonot deviated from i ts projected borrowingsfrom market in H2-2021-22 thereby alsoindicat ing govt . a lso factors the increaseddirect and indirect tax col lect ions)

Q6. What are some of the ski l ls that youthink as a student with f inance asspecial izat ion should possess to get placedin better job role .

This quest ion is specif ic to the job role whichone desires to join and s ince I am not wel laverse with specif ic i ty of the different jobroles consider ing f inance is a vast domain butI can give few pointers i f someone is desirousto join banking. Few of the ski l ls are

Analyt ical Thinking – Grasp of BalanceSheet , P&L etc and relate i t to borrower’sbusiness . Solut ion Oriented Approach Abil i ty to work in teams and in t ightschedulesGood wri t ing ski l ls – Must for someonelooking roles as credi t analyst wherecontent should be precise and yet captureal l re levant aspects of borrower.Negot ia t ion Ski l ls

INTERVIEW WITH ANUMOY KAR

FACULTYSPEAK

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investment that wil l see your workforceget t ing upski l led to meet the changingdemands of your customers – yet t ra iningbudgets are cut without a second thought whenbusiness is low.

We don’t sel l our land and machinery when thegoing gets tough (and we know i t ’s only aphase) . We might offer deep discounts on ourinventory to move s tock and recover preciousworking capi ta l – that is how we wouldmanage ‘ l iquid assets’ . Human resources arethe ‘ long-term assets’ of the company and needto be respected and t reated in that manner –not as expenses to be curbed or inventory to bel iquidated to manage the t ightening leash ofworking capi ta l . After a l l managing machinerywil l help you ut i l ise 100% of the machinecapaci ty (you get what you paid for) . On theother hand, take care of your people and theywil l surpr ise you with their potent ia l and giveyou far more than what you bargained for!

As future f inance managers , the quest ion weneed to ask is what kind of organizat ions arewe going to be a par t of – one where peopleare viewed as ‘expenses’ or one where they aretruly valued and t reated as ‘assets .

Managing the f inancial resources of anorganizat ion is a chal lenging task. With themult iple demands, concerns of ROI, andopportuni ty costs to be factored in , makingdecis ions on how much money to a l locatefor each business requirement is anunenviable responsibi l i ty . One of the major‘demands’ that wil l ar ise on the coffers ofthe organizat ion are those related to theHuman Resources in the organizat ion.

An interest ing paradox observed inorganizat ions is that though the employeesare cal led human ‘resources’ (akin to assetsof the organizat ion) , the mindset remainsthat HR costs are ‘sunk costs , ’ or expensesthat have to be incurred. Fundamentals ofaccount ing wil l te l l you that we ‘ invest’ inassets – yet this wisdom goes out of thewindow when we look at the ‘humanresources . ’ There is a precious lesson inpeople management that one can learn fromthe books of account ing.

We incur expenses in re turn for the valuethat is enjoyed immediately; for example -overheads l ike electr ic i ty – use i t and payfor i t . We invest in assets – things that wil lhelp generate revenue for us for a prolongedperiod of t ime; for example – machinery –that wil l help produce goods that can besold. The key quest ion to ask is , are wetreat ing our employees as those that give ustheir effor t and hence, we pay for thateffor t , or are we t reat ing them l ike assetsthat we know as we invest in them, they wil lgive more and more to the organizat ion?

Just l ike we would not think twice aboutexpenses re lated to ensuring proper upkeepand maintenance of our machinery,shouldn’t we also think of the ‘engagement ,growth and development’ of our people? HRbudgets are cr i t ical to the businessreadiness of any organizat ion – yet these arethe very budgets that are s lashed at theonset of a downturn. Training is an

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LESSONS IN PEOPLE MANAGEMENTFROM FUNDAMENTALS OF

ACCOUNTING BY PROF. MARY THOMAS

STUDENTSCORNER

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DINESH S2028028

The Indian Minis t ry of Finance ensured thatthe disclosures in the leak would beinvest igated and that i f required, legalact ion would be taken.

Key f indings - 1 . The offshore system is used by theleaders of f ive cont inents .2 . Governments only launch invest igat ionsaf ter secret documents reveal how theweal thy protect their weal th .3 . The global offshore system has centred ona few American s ta tes .4 . Bi l l ionaires re ly heavi ly on offshoref inance.5. A global search for t reasure leads to anindicted ar t dealer ' s offshore t rusts — andthe Metropol i tan Museum of Art .6 . Sanct ions imposed by the United Stateson Russian ol igarchs were effect ive.Pandora Papers - important to India?

Around 12 mil l ion papers f rom worldwideservice f i rms have been leaked, with about350 Indians among them, including AnilAmbani , Vinod Adani , Kiran Mazumdar-Shaw, Niira Radia , Sachin Tendulkar , JackieShroff , and Sat ish Sharma. Many of theindividuals ident i f ied have deniedinvolvement , and some have previously beeninvest igated by Indian authori t ies .

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What is Pandora Papers?The Pandora Papers discuss beneficial ownerswho have assets placed in an offshore t rust ,which, in col laborat ion with foreigncorporat ions, holds a var ie ty of investments ,cash, propert ies , and shareholdings on theirbehalf . These are 11.9 mil l ion s tolen/ leakeddata/f i les f rom 14 worldwide corporateservices businesses that set up around 29,000off- the-shelf corporat ions and pr ivate t rustsfor customers worldwide is not just forobscure tax jur isdict ions but a lso nat ions l ikeSingapore, New Zealand, and the UnitedStates . These agreements deal with theul t imate ownership of assets ' se t t led ' (orplaced) in pr ivate offshore t rusts , in addi t ionto the investments made by offshorebusinesses , such as cash, s tock, and realestate . In the Pandora Papers , there are a tleast 380 people of Indian descent . Thisinquiry is s t i l l underway.

Beginning on October 3 , 2021, theInternat ional Consort ium of Invest igat iveJournal is ts ( ICIJ) disseminated 11.9 mil l ionleaked documents containing 2.9 gigabytes ofdata . The leak revealed 35 world leaders 'secret offshore accounts , including pr imeminis ters , and heads of s ta te , current andformer presidents , as wel l as more than 100bi l l ionaires , celebri t ies , and businessexecut ives .The ICIJ 's news organizat ions descr ibed thedocument leak as their most comprehensiveexpose of f inancial secrecy to date , withdocuments , emails , images, and spreadsheetsfrom 14 f inancial service companies incountr ies such as Switzer land, Panama, andthe United Arab Emirates , surpassing i ts 2016publ icat ion of the Panama Papers , whichcontained 11.5 mil l ion pr ivate records (2.6terabytes) . The ICIJ s ta ted at the t ime of thepapers ' re lease that i t would not reveal i tssource for the documents .

The ICIJ es t imates that money kept offshore(outs ide the nat ion of or igin) is worthbetween US$5.6 t r i l l ion and US$32 t r i l l ion.

UNDERSTANDING THE PANDORA PAPER

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AGLOBAL ECONOMIC INDICATORS AT A

GLANCE

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With Xi J inping’s common prosperi ty campaign drawing closer demand for India’s 10-yearbonds have seen an increase.Increase in the benchmark bond yield is up with Oil and US yields and RBI’s discussionsregarding normalizat ion.Gold has a lso edged down on f i rmer dol lars leading to r ise in said bond yields .

Rise in 10-year Bond yield:

Due to indicat ion on the US Federal Reserves end of the easing of monthly bond purchasesleading to MCX slumps and ul t imate pr ice drop of Gold in IndiaInvestors seem to have an increased appet i te for r isk and are opt ing for other preciousmetals over gold.

Fall in Gold Prices:

Fall in FTSE prices has mainly been due to drop in NIKE’s earnings leading to a viciouscycle and pul l ing down other sports s tocks such as Puma, JD Sports , Adidas etc .FTSE was also dragged down by banking and heavyweight mining s tocks accompaniedwith r ise in inf la t ion.

Fall in FTSE

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GLOBAL ECONOMIC INDICATORS AT AGLANCE

Sensex performance can be at t r ibuted to the t racking gains of IT s tocks and a wel lsustained foreign fund inf low.

Sensex Rise

NASDAQ’s poo September performance has been at t r ibuted to the emergence of the Del tavar iant , pers is tent inf la t ion and the problems in re lat ion to the backed-up supply chain.Concerns about pol i t ical gr idlocks have also been a contr ibut ing factor a long with US’debt defaul ts .A lot of NASDAQ’s weightages is on the shoulders of technology s tocks, due to higherappeal in bonds, these s tocks recorded drops in the double digi ts fur ther leading to thefal l .

NASDAQ downward trajectory

India is a lso contending with other consumerssuch as China, the world 's top coal user , whichis under pressure to increase imports in theface of a chronic power shortage.

Impact on the economySuch shortages have occurred in the past , butwhat is unique this t ime is that coal isextremely expensive. When coal imports forpower generat ion are a t such high pr ices ,companies would ul t imately pass these costs tothe f inal consumer, resul t ing in an inf la t ionaryconsequence - both intended and unintended.

Energy is s imilar to oxygen needed for yoursurvival . I t i s just as important for economicprogress . Electr ic i ty dr ives everything; thewhole manufactur ing sector , be i t cement ,construct ion, or s teel , i s hi t when coal isscarce. The economy cannot funct ion properlyif there is a lack of energy.

India 's output has s lowed as the countryat tempts to reduce i ts re l iance on coal toachieve cl imate object ives . I t i s high t ime forIndia to make ser ious at tempts to lessen i tsrel iance on coal and adopt a more ambit iousrenewable energy plan.

According to the government , i t has beengrowing i ts e lectr ic i ty generat ing capaci ty a tan unprecedented rate . However , due to ascarci ty of coal , i t has not operated atmaximum capaci ty . While power generat ionhas grown, the growth in demand has beenconsiderably larger , and the country has had atough t ime catching up.

Government's aid during such a cris isSuccessful ly achieving a balance betweenserving the needs of i ts huge populat ion andreducing i ts re l iance on environmental lypol lut ing coal-f i red power faci l i t ies has been asignif icant issue for the government in recentyears .

The t ransi t ion cannot happen quickly, andfal lbacks are ought to occur .

India 's coal inventor ies are a t an al l - t imelow. Low coal inventor ies have beenrecorded in wel l over half of the 135 coal-f i red power faci l i t ies in the nat ion. Reportssuggest that this incident was caused by ar ise in energy requirements f rom industr iesas wel l as s low imports owing to recordhigh global costs .

What led to the power cris is?The demand for power increasedsignif icant ly as the Indian economyrecovered from a devastat ing second waveof Covid-19. Compared to the same per iodin 2019, power usage has increased by over17 percent in the las t two months alone.Simultaneously, worldwide coal pr icessoared by 40%, while India 's imports shotdown to a two-year low. The most recentweek 's import total was less than 1.5mil l ion tons, the lowest in the las t twoyears .

Despi te having the world 's fourth- largestcoal reserves , India is the world 's second-largest importer of coal . The higherinternat ional coal costs and t ransport costshave forced the operators that re ly onimported coal to reduce the generat ion ofpower, resul t ing in a greater re l iance onlocal coal-f i red faci l i t ies . And so, the powerfaci l i t ies which were previously rel iant onimports are now largely rel iant on theIndian coal suppl ies , adding fur ther s t ra inon the already overstressed domest icresources .

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AINDIA ON THE BRINK OF AN

UNPRECEDENTED POWER CRISIS

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Source: India coal cr is is brews as powerdemand surges, record global prices bi te

A complete switch to renewable energy isn ' tpossible in the near future . Current ly , non-renewable energy sources account for morethan half of India 's total power generat ion.Reports f rom experts and analysts suggestthat for India to fulf i l l i t s r is ing demand, i tmust ser iously consider a l ternat ive energysources such as solar power.

Operat ions such as dis t r ibut ion andtransmission in the power generat ion sectoralso need ser ious reforms. But with themonsoon almost over , the consumption ofpower might lessen, leading to lesserdemand.

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SHERLY MATHEWS2027735

The ar t ic le probes into India 's impendingpower cr is is . With the revival of economicact ivi ty post the devastat ing second wave,the demand for power has r isensignif icant ly while imports have droppedto two-year lows. As oxygen is to thehuman body, so is power for industr ies .The government must ser iously consideral ternat ive source of energy to ensure thatsupply matches demand.

Current ly , cases are s tar t ing to r ise even withthe high level of vaccinat ion. This poses as ignif icant r isk for the long-term and short-term growth of economies. As Central banksworldwide, especial ly those in developedcountr ies such as the US, begin to normalizetheir monetary pol icy and reduce l iquidi ty inthe economy, bond yields have r isen, andemerging market currencies have weakened.

Despi te the market ' s overal l s i tuat ion, RBI hasstar ted to move towards pol icy normalizat ionand withdrawal of excess l iquidi ty f rom thebanking system, which can be just i f ied by theiract ions of lowering the quantum of governmentsecuri t ies acquis i t ion program (G-SAP). OnFriday, RBI 's announcement of refraining fromG-SAP came as a surpr ise . The var iable ra tereverse repo (VRRR) auct ion also resul ted in ahigh cut-off yield, which is again an importants ignal . In this l ight , a gradual r ise in bondyields to the 6.50 percent level in the comingmonths cannot be ruled out . In the short term,the act ions taken by the RBI on the l iquidi tyfront may outweigh the s ta tus quo on pol icyrates . Possible re l ief , i f any, on this f rontcould come from ei ther a mater ia l reduct ion ininf la t ion r isks or concrete developmentsregarding the inclusion of Indian bonds inglobal indices , both of which the central bankexpressed opt imism about .

IntroductionMonetary pol icy is the pol icy adopted bythe central banks of the country. Theprimary purpose of this pol icy is to controlinf la t ion. To control inf la t ion, Centralbanks usual ly a l ter interest ra tes payable forvery short- term borrowing (borrowing bybanks from each other to meet their short-term needs) or the money supply.

Heart of the matterDuring the meet ings held in the f i rs t fewdays of October , the monetary pol icycommit tee (MPC) decided to keep the reporates unchanged, keeping in mind thecountry 's economic growth andmacroeconomic out look. Gradual ly , RBI iss tar t ing to move towards pol icynormalizat ion. As the f i rs t s tep towardsthis , RBI seeks to suck out excess l iquidi tyfrom the economy by hiking the reverserepo rate . However , the MPC wil l be morepat ient about any hikes , as i t i s caut iousabout i ts current s i tuat ion and theconstant ly evolving coronavirus . The RBImessage consis tent ly emphasized nuancedand data-dependent pol icy moves ratherthan rocking the boat .

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ARBI BEGINS GRADUAL WITHDRAWAL OF

LIQUIDITY SUPPORT

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VAJAS SUNNY2028116

With the dip in coronavirus cases , centralbanks across the globe have begun tonormalize monetary pol icy to suck outexcess l iquidi ty in the economy. RBI toois planning to fol low the same. However ,the bank is current ly caut ious as thecountry is witnessing a r ise in casesdespi te high vaccinat ion rates .

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GOLD ETFS

An exchange-traded fund (ETF) thatpr imari ly t racks domest ic physical gold pr iceis known as a Gold ETF. They are gold-basedpassive investment products that invest ingold bul l ion and that are purely based ongold pr ices . In other words, a gold ETF is acommodity-based open-end fund that investsin gold. These exchange-traded funds behavesimilar ly to individual s tocks that can beexchanged on the s tock market

Although being a commodity-based t radedfund, Gold ETF funds are f requent lyemployed as an industry exchange-tradedfund. I t ' s a perfect investment s t ra tegy tobroaden one 's f inancial portfol io and urgesexposure to cer ta in sectors l ike gold mining,manufactur ing, t ransport , e tc . These t radedfunds are re la t ively s impler to get .

Gold ETFs are ideal for investors who wantto t race and ref lect the par t icular pr ice ofgold in real- t ime. Individuals who don ' t wantto have the par t icular commodity but want tospice up their income by t rading on thevaluable metal should invest in these sor ts ofexchange-traded funds.

Gold-based t raded funds have outperformedbenchmark s tock indices several t imes in thepast few years , making them an at t ract iveinvestment opt ion for conservat ive borrowers .

However , i t ' s advisable to keep theinvestment in gold within 5% to 10% of one 'stotal investment portfol io . I t ' l l help bui ld as t rong investment out l ine and maintain astable re turn.

As of October 2021, the top 5 gold ETFs interms of market capi ta l izat ion are UTI GoldShare, Bir la Gold ETF, SBI Gold ETF, HDFCGold ETF and Nippon ETF Gold. Net Asset Value (NAV) of the gold ETF ishighest for the SBI Gold ETF and the Bir laGold ETF. Compared to the two, SBI GoldETF is re la t ively bet ter as i ts marketcapi ta l izat ion exceeds Rs. 3 crores .

Gold ETFs have gained prominence due totheir performance. Moreover , such fundsare a lso an excel lent way of divers i fyingone 's portfol io . Experts suggest that i t i sideal to l imit one 's investment in suchfunds to 5-10% of the total investmentportfol io .

SARTHAK KHURANA2027803

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M ROHIT2027532

MATCH IT!Match the fol lowing:

Here are tagl ines of var ious companies match them with their respect ive company.

a . Accenture b . Bank of Baroda c . Central Bank of India d . Dr. Reddy’s Laborator ies e . HDFC Bank f . Visa g . IndusInd Bank h . American Express

1) We Understand Your world 2) Bui ld a bet ter Life around us3) Don’t leave home without i t 4) We make you feel r icher 5) India’s Internat ional Bank 6) Good heal th can’t wai t7) Everywhere you want to be 8) High Performance Del ivered

SCAN TO VIEWTHE ANSWERS

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A BRIGHT ROAD AHEAD FOR BRIGHTCOMGROUP

On January 15, 2015, a SEBI commit tee wasformed under Judge NK Sodhi 's chairmanship,who made a great a t tempt in this direct ion andnot i f ied SEBI by replacing India 's two decadesolder insider t rading s tandards. One of the recentexamples of interference by SEBI on thisgrounds is the Infosys case, where twoemployees who were involved in insider t radingmade Rs.3 Crores were suspended from thecapi ta l market .

Brightcom Group s tock has la te ly been in highdemand af ter the f i rm announced on September17, 2021, that i ts board of directors had approvedthe al locat ion of warrants and equi ty shares toSebi regis tered FPIs and other investors .

Brightcom Group's board of directors approvedgrant ing 1,50,00,000 warrants a t Rs 37.77 each(face value of Rs 2) , convert ible into anequivalent number of equi ty shares , to ShankarSharma on a preferent ia l basis on September 16,2021.Sharma is the vice chairman and joint managingdirector of investment management business Firs tGlobal .

The board also authorized issuing 14,01,50,000equi ty shares through a preferent ia l a l locat ion atRs 37.77 to 29 Sebi regis tered FPIs and otherinvestors , for a total of Rs 529.34 crore .

Brightcom Group Ltd is a service businesslocated in India . The company is divided intotwo segments: digi ta l market ing and sof twaredevelopment and offers digi ta l market ingservices as wel l as computer sof tware andservice development . In addi t ion, the f i rmprovides information technology instal la t ionand outsourcing services . I t servesbusinesses , agencies , and web publ icat ionsal l around the world with digi ta l market ingsolut ions. I t special izes in enterpr iseresource planning (ERP) solut ions,Microsoft , and open-source systemsdevelopment and del ivers corporate solut ionopt ions. The Digi ta l Market ing Segmentgenerates the majori ty of the company'sincome.

Moneyworks4me's research of BrightcomGroup Ltd.’s f inancial performance over thelast ten years suggests that i t i s a below-average long-term investment . However , tomake a prof i t , you must make sure you buy atthe r ight pr ice .

On the BSE, shares of Brightcom Group(previously Lycos Internet) remained t rappedin the 5% upper c i rcui t for the s ixth t radingday, c losing at Rs 64.45. In the las t month,the shares of the information technology (IT)software products f i rm have increased by 81percent .

The business announced the preferent ia la l locat ion of 140.15 mil l ion equi ty shares toforeign portfol io investors (FPIs) and otherinvestors on September 16, 2021, a t a pr iceof Rs 37.77 per share . Shankar Sharma wasalso given 15 mil l ion warrants a t a pr ice ofRs 37.77 per share , convert ible into anequivalent number of equi ty shares on apreferent ia l basis .

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A BRIGHT ROAD AHEAD FOR BRIGHTCOMGROUP

Citrus Global Arbi t rage Fund, CalypsoGlobal Investment Fund, NavigatorEmerging Market Fund, ConnecorInvestment Enterpr ises , and LGOF GlobalOpportuni t ies , among others , are among theinvestors .

The business said i t would ask shareholdersto approve the proposed offer ing andal lotment of equi ty shares and warrants on apreferent ia l basis via a postal voteprocedure.

Brightcom's board authorized thepreferent ia l a l locat ion of 11,96,25,000equi ty shares to 15 non-promoter a l lot tees a ta previous board meet ing on July 13, 2021.Fol lowing that , the company's general bodyaccepted i t in an EGM on August 5 , 2021.

The proposal was made pr ior to execut inganother corporate act ion for a bonus issue,with the record date set for August 20, 2021,and the pre-bonus share capi ta l pr ic ing set a tRs 31.17 per share .

However , said al locat ion could not becompleted in t ime for the bonus deadl ine. Toprevent any legal issues ar is ing from thisscenario, the business has decided towithdraw the proposed preferent ia l issuethat was announced on July 13, 2021, andinstead proceed with a new al locat ion ofequi ty shares a t a revised pr ice .

PIUS PINTO2027624

Brightcom Group's consol idated net prof i tincreased 4.11 percent to Rs 105.55 crorein Q1 June 2021 over Q1 June 2020,thanks to a 2 .27 percent increase in netsales to Rs 654.05 crore .

Brightcom Group is a global conglomeratethat focuses on ad-tech, new media, andInternet of Things (IoT)-based enterpr ises ,par t icular ly in the digi ta l ecosystem. Thecompany serves 40 bi l l ion impressionseach month, enabl ing businesses ,agencies , and web publ ishers throughoutthe world to sat isfy their digi ta l market ingdemands.

VAJAS SUNNY2028116

Chris topher . Chris , evicted from society andbounced from shel ter to shel ter , maintainshis digni ty , resolve fai th , love, andindependence.

Money is important in "The Pursui t ofHappiness ," as i t i s in real l i fe . But i tmat ters more openly in this f i lm than i t doesin most Hollywood s tor ies about the poor ,owing to the fact that Chris ' s pursui t ofhappiness eventual ly becomesinterchangeable with his pursui t of money.He doesn ' t just want a bet ter , more securel i fe for himself and his chi ld . The ending (Iwon' t give too much away) had me in tears ,happy tears . I recommend this f i lm toanyone who enjoys f i lms that have a genuinestoryl ine and leave you with a posi t ivefeel ing. This f i lm is wel l worth seeing. Wil lSmith is a fantast ic actor , and the real- l i feperson who inspired this f i lm should be veryproud of him. This f i lm wil l play with youremotions. You' l l cry and laugh along withthe characters . "You have earned the r ight tobe happy."

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"If you l ike i t , go ahead and get i t .Regardless of what I say or what everyoneelse says." This is the s tory of a man wholives in mediocri ty , works as a salesman, anddares despi te facing numerous problems onevery front of his l i fe . Dares to have bigdreams. This is an admirably unsent imentalbiopic with an outs tanding performance. I t ' san excel lent f i lm that demonstrates that i fyou work hard for something, you wil lachieve success . Wil l Smith and his son,Jaden, br ing to l i fe the t rue s tory of a fa ther-son family s t ruggl ing to c l imb the ladderfrom the bot tom. I bel ieve that chi ldrenshould watch this f i lm so that they wil lreal ize how for tunate they are in their l ives ,and that i t i s not easy for parents to s t ruggleal l of the t ime. This is a f i lm that is based ona t rue s tory. The f i lm addresses a specif icviewpoint , focusing, as the t i t le suggests , onthe const i tut ional r ight to "pursue" happinessrather than the r ight to be happy.

In this way, the f i lm can avoid focusing onracism and how i t affects achieving theAmerican Dream. Instead, the relat ionshipbetween father and son takes center s tage,despi te the ups and downs of family andeconomic instabi l i ty , with s tunning resul ts ."The Pursui t of Happiness" fol lows Chris ashe loses his apar tment due to bad luck, a fewstupid moves, and a shrew for a wife , Linda,and joins the ranks of the homeless , i f not thehopeless , with his 5-year-old son,

MOVIE REVIEW- THE PURSUIT OFHAPPYNESS

AI cannot ful ly ass is t with numerous f inancialregulatory issues; human intel l igence issometimes preferable . As a resul t , they are bothequal ly vi ta l .

They cannot think and analyze the pros and consdespi te being fed with information. Such ananalysis is very crucial to make an apt decis ion.Another special ty about humans is that each oneof us has different EQ and IQ levels and canlearn and process information in a uniquemanner . Humans can learn gradual ly f rom theirexperiences whereas machines cannot . Butmodern invent ions lack emotions and hence maycreate problems. Human capi ta l is very importantbecause i t has the capabi l i t ies to think rat ional ly ,make sui table decis ions, and then respond.Therefore , i t i s very evident that human capi ta lcannot be completely replaced. Hence, i t i s safeto conclude that they contr ibute equal ly to theupl i f tment of any organizat ion or the technologyworld in general . I f both of these elements learnhow to coexis t , the world around us wil l witnessgreater progress and developments in f inance aswell as a l l industr ies . This wil l lead to improvedaccuracy and integri ty in the work environment .C

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Artif ic ia l intel l igence or AI is a vi ta lcreat ion that includes invent ing machines ,robots , sof tware, e tc . Art i f ic ia l intel l igencehas var ious advantages. I t can perform tasksfaster and quicker than a human brain. AIcreates a way for in-depth learning and hencei t would be less faul ty . Diff icul t tasks can bedone very eff ic ient ly using an AI system.This technology is made use of in manybusiness sectors , mainly, the heal th caresector . AI forms the root for machine learning,ar t i f ic ia l neural networking, and var iousother technologies . Many such innovat ionsare introduced to subst i tute for humanintel l igence. Human intel l igence, on the other hand, isi r replaceable by i tself . A person can absorb,ref lect , understand, adapt to c i rcumstances,and make appropriate decis ions. Art i f ic ia lintel l igence is a supplement to , not areplacement for , human intel l igence. ThoughAI has contr ibuted to many extraordinaryinvent ions, they are s t i l l far beyond whathuman brains are capable of .In the f ie ld of f inance, both human andart i f ic ia l intel l igence are essent ia l . Becausef inance is an organizat ion 's l i feblood, i t ' scr i t ical to keep t rack of a l l f inancialt ransact ions. There wil l be count lesst ransact ions for a large corporat ion. As aresul t , i f we apply ar t i f ic ia l intel l igence, i twil l be s imple. They can t rack and record al lt ransact ions in one go.There wil l be s i tuat ions wherein we have tomake balanced decis ions. In such scenarios ,AI might not be of much help. Even thoughmany such invent ions can perform taskssimilar to a human brain, they lack commonsense - one of the key factors that makes adecis ion relevant to the circumstance. Forexample,

ARTIFICIAL INTELLIGENCE V/S HUMANINTELLIGENCE IN FINANCE

EMI ROSE2027952

RAMESH D2028124

Two, i t grows increasingly hesi tant to taker isks . In other words, i t ’s off ic ia ls that arehesi tant to lend to businesses that look to behazardous for fear of exacerbat ing analready high proport ion of non-performingassets (NPAs). The s i tuat ion is a l i t t le morecomplex from the government 's andtaxpayer 's perspect ives . After a l l , whetheri t ' s recapi ta l iz ing PSBs with problematicloans or providing securi ty receiptguarantees , the money comes fromtaxpayers ' pockets . While recapi ta l izat ionand s imilar promises are sometimes referredto as "reforms," they are only band-aidsolut ions. The only long-term opt ion is forPSBs to enhance their lending operat ions. THE INITIATIVEThe projected Bad Bank is crucial forseveral reasons. For s tar ters , i t removes afundamental s tumbling block to India 'sprogress in recent years : increased r iskaversion in the banking industry. This r iskaversion s temmed mainly from theaccumulat ion of non-performing assets inthe system due to excessive lending from2008 to 2012. The volume of bad loans, onthe other hand, had a negat ive impact on thef low. As a resul t , a one-t ime t ransfer ofassets outs ide of the bank 's balance sheets iscr i t ical , a l lowing the banks to focus ent i re lyon lending. In contrast , the bad bank workswith recovering dues through l iquidat ion,asset res t ructur ing, or other measures .I t ' s a lso crucial to note that the removal ofassets f rom bank balance sheets does notimply that the money owed wil l not becol lected - the mechanism is set up such thatthe bad bank wil l pay the banks and buythese NPAs while working to recover themoney owing to them. C

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INTRODUCTIONA bad bank (also known as an assetreconstruct ion company) is a corporatestructure that separates i l l iquid and high-r iskassets owned by a bank or f inancialinst i tut ion, or maybe a consort ium of banksor f inancial inst i tut ions (usual ly non-performing loans) .

HOW BAD BANKS AFFECT THE INDIANECONOMY A bad bank is a f inancial organizat ion thattakes up non-performing assets (NPAs) onother banks ' books to c lean up their balancesheets and restore normal operat ions. Badbanks wil l " take over exis t ing debt , managei t , and sel l i t to buyers to real ize the value ofs t ressed assets ," as Union Finance Minis terNirmala Si tharaman put i t . The idea of es tabl ishing a bad bank wasproposed as a way to c lean up the balancebooks of banks that were burdened by non-performing assets (NPAs). According to RBIdata , SCBs' gross non-performing assets(NPAs) increased from Rs 3.23 lakh crore a tthe end of March 2015 to Rs 10.36 lakh croreat the end of March 2018. This r ise wasprimari ly due to the t ransparent recogni t ionof s t ressed assets as non-performing assets(NPAs). NPAs have decreased to Rs 8.34 lakhcrore (according to provis ional s ta t is t ics) asof end-March 2021, thanks to thegovernment 's recogni t ion, resolut ion,recapi ta l izat ion, and reform pol icy.

WHAT IS GOOD ABOUT A BAD BANK Any bank can take a few blows, but what i fthe number of "bad loans" (or loans that wil lnot be repaid) increases dramatical ly? In thiscircumstance, the bank may be forced toclose. Two things happen in regularfunct ioning as the proport ion of problematicloans r ises — they are commonly calculatedas a percentage of total advances ( loans) .One, the bank in quest ion becomes lessprofi table due to having to ut i l ize some of i tsrevenues from other loans to compensate forthe poor loans.

DEEP DIVING INTO BAD BANKS

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i t to expand high and took debts cont inuously.This gave raise to the debt growth model ofChina. Thus, China came up with Three redl ine Pol icy to control the amount owed by thebig real es ta te developers . This inducedEvergrande to sel l i ts propert ies a t discount toincur as much money to keep the business l ivebut fa i led to meet i ts target and interestpayments .

Consequences:The Chinese Government has pushed $14bi l l ion cash into the banking sector to keep theeconomy stabi l ized. As, most of theconstruct ion projects are hal ted, the demandfor the bui lding mater ia ls may decrease andthis wil l impact the countr ies that export suchkind of mater ia ls to China posing an economicslowdown. To prevent these happenings in thefuture , the government should focus ondeveloping al l regions in equal and encouragepeople to invest money in a l ternat iveinvestments .

Evergrande is the second largest propertydeveloper company in China. I t was foundedby Hui Ka Yan in 1996. I t se l ls apar tments tomost of the upper- and middle- incomepeople . I t has a lso spread i ts business rangefrom weal th management , e lectr ic cars , foodmanufactur ing and owns a footbal l team –Guangzhou FC.

About the cris is:Evergrande group was borrowing money frombanks to work on i ts real es ta te projects –houses and resident ia l apar tments . I t decidedto expand aggressively to become one of theChina’s biggest companies borrowing morethan $300 bi l l ion. In recent , i t fa i led to makeinterest payments and resul ted in hal t ing ofproject work due to the inabi l i ty to paybackthe suppl iers . This a lso affected the suppl iersas they may also miss their interest paymentsto the banks on the loans borrowed by them.Many people have paid advance to buy thehouses bui l t by the group and some of themhave taken loan from banks. This has madediff icul t for banks to lend fur ther loans andhas held back loans to other propertydevelopment companies to prevent more badloan creat ion.

Cause of the cris is:The boom in real es ta te business s tar ted inthe la te 1990. The companies took the chanceof this opportuni ty and s tar ted to bui ldhouses for the middle-class people . Thegovernment a lso s tar ted to earn revenuesel l ing lands to the real es ta te companies .This led to intense growth of the land andproperty pr ices . This is the s i tuat ion whichEvergrande thought to make use of

THE EVERGRANDE CRISIS

MADANKUMAR RA2028030

CREATIVECORNER

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M KEERTHANA2028060

UNSAID

A Mind with a thousand thoughts ,With a voice in the head,And the words that are lef t unsaid;Stuck in a deep hole of s i lence Not real is ing that there was another world Behind the s i lent doors , where the wind washeard And seas hi t the shores . I can see two roads behind the door Two roads that are diverged, and I I took the one less t ravel led by,To leave al l behind, to speak the unsaid To overcome this s i lence, to s tep into a sky I took a s tep to the road not taken To feel l ike a bird, and learn to f ly;I t r ied to be s t ronger , A bi t more than I was yesterday;Trying to sharpen the new found wings Leaving behind the things that weren’t meantto be Now, the mornings aren’t the same, I am f inding the lost words in form of sani tyReal ised unsaid things are l ike a sunset Because, Every sunset is an opportuni ty to reset .

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ATHE TREE OF HAPPINESS

NAVMEEN LATIF 2027644

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NITHYA SHREE2027557

PENCIL SHADING

THE EDITORIAL TEAM

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Head of SpecializationDr. Mareena Mathew

Faculty Co-ordinatorDr. Nisha Shankar

Ronit Choudhury Merlin George Priyanka M

RupshaBandyopadhyay

Manish Reddy K