Wednesday, October 15, 2014

Counting in Hindi

One of the Aryabhatiya’s most frequently quoted verses is the second verse from the ‘Ganitapada’, or mathematics, section. Clark translates it thus:

The numbers eka [one], dasa [ten], sata [hundred], sahasra [thousand], ayuta [ten thousand], niyuta [hundred thousand], prayuta [million], koti [ten million], arbuda [hundred million], and vrnda [thousand million] are from place to place each ten times the preceding.


Friday, September 12, 2014

Criteria for buying a house

A house is possibly the biggest investment in the life of a middle-class guy. And a decision this big requires careful consideration. Here's my list so far:
  • Low-rise (low maintenance)
  • 1000 sqft (atleast)
  • Car park (some open space would be good)
  • Ready-to-move in
  • Not next to main road
  • Good approach road
  • Easy access to supermarket, hospital, school etc.
  • Balcony receives maximum amount of sunlight

 Important considerations

  • 10A (Ampere) connection in every room for easy vacuum machine connection and Airconditioner
  • 10A connection for washing machine, dryer and dishwasher in utility area
  • 10A for refrigerator, oven and mixer in kitchen
  • Running a 5A line on sine-wave inverter will save sensitive electronics from voltage fluctuations.
     

Budget

For a monthly installment of Rs.11000 (rent amount in the area), time period being 240 months, and interest rate 8% p.a, interest compounding Quarterly, Maturity value of Recurring Deposit is Rs. 6479546.67 (http://www.investmentyogi.com/rd-calculator/) . This amount therefore is a good ballpark figure for the budget.

Thursday, July 24, 2014

RCOM plans to reduce 40k crore debt. How does it work?

I came across this article about how RCOM is planning to reduce its debt
http://www.financialexpress.com/news/reliance-communications-plans-to-reduce-manpower-by-35005500/1267740
Question is - how did it end up with such a high pile of debt? Is it fine for a company to have such huge debt and still declare profits? Averaging a 1k crore per year PAT over last five years, it'd take it atleast 40 yrs to turn profitable in absolute numbers. What kind of accounting is this?

 Payment of only interest will lend a person perpetually in debt. It's not a good idea for credit card (unsecured loan); can't be any better for corporate loan (secured loan). Not sure this should be "a normal practice" - declaring profitability with such huge debt. What kind of assets have a useful life of 40years? This business doesn't look viable even on paper. How did lenders agree for such a loan? Banks won't give even home loan for more than 20years period.