What Jim Roger says?

What Jim Roger says?

That America is bankrupt. The American government bonds are a bloating bubble which would burst and the world will see that the bubble had nothing but air.

Why does he says so?

Becuase he feels that the bonds are overvalued. Because America on average has added debt at a rate of 1 billion dollar a year in the past few years and has currently more than 13 trillion dollars in debt.

What I feel ?

That America will continue to pass its debt to its coming generations. And till the time America can cut forests (be its own or of Iraq) to print money, America will not go bankrupt 🙂

Jim Roger Quote (on the bailout of U.S. banks):

“The Bail-out plan is a disaster. In 1929 we had a recession but after the government interfered, it became a depression. You should not interfere.”

Source: EuroBench.com

Sachin “God” Tendulkar

Sachin Ramesh Tendulkar

Nick Name	: Little Master / Tendlya / God
Born	: 24th April 1973, Mumbai, Maharashtra
Batting Style	: Right Hand Bat
Bowling Style	: Right Arm Medium, Right Arm Off Break / Leg Break / Googly
Test Debut	: India Vs Pakistan at National Stadium, Karachi, 1st Test, 1989/90
ODI Debut	: India Vs Pakistan at Municipal Stadium, Gujranwala, 2nd ODI, 1989/90
Twenty 20 International Debut	: South Africa Vs India, Only T20 at New Wanderers Stadium, Johannesburg, 2006/07
Height	: 5 ft 5 in
Education	: Sharadashram Vidyamandir School

“Every now and again, a player appears on the scene who will change the way the game is played.” – That is Sachin Tendulkar for you. This RBS commercial rightly defines the impact Sachin Tendulkar aka God has had on the Gentlemen’s game. No batsman other than Sachin has ever been spoken in the same breath as Sir Don Bradman.

Gods descend on the cricket field when the little master is in form. Those back-foot punches through the cover, slashing square cuts and leg glances are a delight to watch. It was said that when Sachin hits a square cut, the ball reaches the boundary even before you could say his name. The bowlers could not help but stare with awe when they are hit with such panache.

His century as a 19 year old against Australia at WACA is termed as one of the best innings ever to be played in Australia. I can not forget the Semi final and Finals against Australia in Sharjah or his 136 against Pakistan in the test match in Chennai. Also cherished is the century when Sachin curbed his natural instinct to play on the off side in the test against Australia as the ball was seaming viciously. He has been the leading run scorer in the 1996 and the 2003 World Cups. The list of his heroics is endless because he has scored more than 40 centuries in both Test and ODIs. He has enthralled us by scoring more than 28000 runs, combined in Tests and ODIs.

This gentleman is now more than 35 years old and has played for almost 19 years. All these years have taken a toll on his body and people are now taking names to fill his space. The maestro may himself decide to retire when he feels its right. Whenever that happens, his aura will always remain. Indian Cricket will always be indebted to Sachin. He will forever be the most revered cricketer in the world. I consider him as one of the Gems of Indian cricket.

Batting and fielding averages
	Mat	Inns	NO	Runs	HS	Ave	BF	SR	100	50	4s	6s	Ct
Tests	154	252	26	12273	248*	54.30			40	51		47	100
ODIs	417	407	38	16361	186*	44.33	19137	85.49	42	89	1785	166	122
T20Is	1	1	0	10	10	10.00	12	83.33	0	0	2	0	1
First-class	254	400	41	21036	248*	58.59			66	97			167
List A	504	492	52	19913	186*	45.25			53	107			157
Twenty20	12	12	1	386	69	35.09	296	130.40	0	3	56	7	8

Bowling averages
	Mat	Inns	Balls	Runs	Wkts	BBI	BBM	Ave	Econ	SR	4w	5w
Tests	154	126	3880	2227	42	3/10	3/14	53.02	3.44	92.3	0	0
ODIs	417	265	8009	6795	154	5/32	5/32	44.12	5.09	52.0	4	2
T20Is	1	1	15	12	1	1/12	1/12	12.00	4.80	15.0	0	0
First-class	254		7239	4116	67	3/10		61.43	3.41	108.0		0
List A	504		10185	8423	201	5/32	5/32	41.90	4.96	50.6	4	2
Twenty20	12	4	57	65	2	1/12	1/12	32.50	6.84	28.5	0	0

Stats Source: cricinfo as on 14th November, 2008

Financial Statement Treatments of Subsidiary, Joint Venture and an Associate

Subsidiary

What is a Subsidiary?

Subsidiary is an investee company when the shares held in it by the investor company gives the investor company a control of more than 50% of the votes and thus the control over the board of directors of the investee company. Such an influence by the investor company is termed as “Dominant influence / control”.

What is the treatment of a subsidiary in the financial statement?

When a subsidiary is incorporated the effect in balance sheet is seen as follows. The investment costs increase in the balance sheet – Asset side of the investor (one can also now call it a group company). This would be balanced by the share capital and the pre-acquisition reserves of the subsidiary. The consolidated value of Assets and Liabilities is then found out which represents the value of the resources controlled by the group.

But what about the portion of the subsidiary held by people outside the group? By taking the consolidated value of Assets and Liabilities in the group BS, aren’t we skewing the BS as the group only owns some percentage (> 50%) of the total assets and the rest belongs to some other stake holders?

Yes this indeed will skew the BS and thus we incorporate the line item “Minority interest” which reflects the portion of the subsidiary held by people outside the group.The Book Value of Equity of the parent company seen alone excludes the equity held by minorities. But to balance the Total Assets, Minority Interest is included as a separate line item below the Shareholder’s Equity. Now the BS is balanced. 🙂

Are there any other treatments?

The revenues, EBITDA, Net Debt etc will be consolidated. The Net income of the group will exclude the portion held by minorities. This will be shown as Minority Interest in the income statement.

For Eg:

There are two companies A and B. A is a 100 % owned subsidiary and B is an 80 % owned subsidiary.

Company	Revenue (in Rs ‘000s)	EBITDA (‘000s)	Net Income (‘000s)	Net Debt (‘000s)	Book Value of Equity (‘000s)
A	100	50	30	50	50
B	100	50	30	50	50
Group	200	100	60-0.2×30 = 54	100	100-0.2×50 = 90

Associate

What is an Associate?

When the control of the investor company is such that it owns more than 20% but less than 50% of the shares of a company (investee) then the investee company is said to be an associate of the investor company. This gives the investor company a “Significant Influence / Control” over the associate.

What is the treatment of an associate in the financial statement?

The treatment of an associate is referred to as “One Liner” treatment. In this treatment the interest in the associate is reported as a single line on the balance sheet of the group. For e.g you may find line items like “Investments in associates”  on the Asset side of the balance sheet of the group company. Thus only the share of the group in Associate is recorded on the balance sheet.

Joint venture

What is a Joint Venture?

A joint venture is an investee which is under the joint control of two or more investees.. It is a startegic alliance between two or more companies which contribute resources and share revenues along with the control they exhibit over the JV. This treatment is similar to that of an Associate.