Reasons for rupee depriciation 1. Rise in Current Account Deficit as compared to the GDP 2. Rise in global OIL prices.

And due t increase in demand of oil higher imports. 3. FII outflows from equity market due to highly volatile equity market. Thus dollars flow out of the country creatin 4. Exporters holding o to dollars thereby restricting the supply of dollars in the Indian market. 5. Sluggish Growth and low industrial production. RBI Measures RBI has ordered exporters to turn in their dollar earnings in the country. Increased the FDI in various sectors Controlled borrowing by banks in international market Restricted investment by Indian Companes abroad Restricted outward remittances by Indians Restricting gold imports Redirecting Oil imports from other venues like Iran which may reduce the Oil bill.

NSEL Crisis NSEL issued a directive to its members that all contracts have to be settled within 11 days or a (T+10) basis and tha It also restricted traders from putting buy or sell trades at the same time to square off the exposure to the market This caused panic where most traders were interested only in longer term contracts. There were contracts that co Soon after the new rule was announced trading volumes dried up on the exchange as traders failed to roll-over po This forced NSEL to suspend trading in most contracts and put a 15-day moratorium on settlement of existing con Under the guise of spot trading, NSEL was offering forward trading facility to investors without proper margin and The reserve fund had only 60crs which was highly insufficient to fullfill dues of approx 5600 cr rupees.

Solution Settleing dues of small time investors first According to the plan submitted to the autorities the dues will be settled on a weekly basis over a period of 7 mon

Other major financial Events Syrian crisis which led to slow down in G20 talks. Attacks on Syria which has led to political disruptions and may gi Microsoft acquired Nokia BRICS to raise $ 100 bn as a sink fund against currency crisis. US Fed announcement of bond buy back led to high volatility in the international bond market. Leading to a lot of

low out of the country creating a demand for dollars as the supply becomes less and thus in turn weakening rupee.

days or a (T+10) basis and that too on payment against delivery basis. ff the exposure to the market. There were contracts that could be settled even 30 days after the trades were done s traders failed to roll-over positions and demanded settlement of trades. on settlement of existing contracts. rs without proper margin and settlement systems. x 5600 cr rupees.

y basis over a period of 7 months

olitical disruptions and may give a rise in Oil prices for India

nd market. Leading to a lot of currency depriciation of emerging economies.

n weakening rupee.

Ratios Current Ratio= Current Assets/Current Liabilities Total Asset Turnover= Sales/TA Debt Equity Ratio= Long Term Debt/Shareholders Equity BEP(Basic Earning Power)= EBIT/TA ROE= Net Income/ Shareholder's equity PE ratio = Price per share/ EPS Book Value per share= Shareholder's equity/ No of Shares outstanding EPS = (EBIT-I)(1-T)/Shares outstanding TVM

F V = P V (1+ i )

( 1 + i )n - 1 FVA = PMT i 1 - ( 1 + i )- n PVA = PMT i

Others FCF= PAT+ Dep - Capex - Net Working Cap Terminal Value = FCF/WACC-g