Call It Chance , Call it Fate …….


There is an element of Skill, Smart Work, and of course Hard Work behind any Fortune.And Prudence definitely helps in making and hanging onto it.But there is really another big variable……call it Chance or Fate……a combination of events that might just never again be repeated.Perhaps they are unique events meant to happen to the individual,or its all just random…..Nothing illustrates this better than the following series of events from Ramkrishna Dalmia’s life.

Ramkrishna Dalmia grew up in penury in Calcutta during the 1930s’ Depression.He was twenty-two when his father died and he had to support his mother, grandmother, three sisters and his wife in a single room that he had rented for Rs 13 per month. He was desperate to get rich quickly.

He speculated in silver and lost and suffered the humiliation of defaulting on his debts. Declared insolvent, he became persona-non-grata in the bazzar. Read more of this post

Beware Of Bad Debts.


wealthymattersAs per RBI figures, a debt of Rs. 5.65 lakh crore (a fifth of the total debt in India) was shared by 67 of the 441 top indebted companies in India at the end of the year 2014-2015. This theoretically makes these companies financially insolvent, which means that the company is no longer able to meet it’s financial obligations.

This number has increased from 49 in the previous year to 67 in 2014-2015.

The return on capital employed has hit 7.4%, barely a few basis points ahead of the average interest cost of 7.1%.This is the lowest value recorded in the decade; in 2004-05, the reported RoCE was about 18% while the interest cost was 6.9%. Read more of this post

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