Sunday, March 06, 2016

Video 1: Concept of IRR for a Startup CXO without finance and mathemati...





IRR means internal rate of return and is a measure of financial attractiveness of an existing, planned business or investment option. There are two videos and this is the first. It is meant for a person without much finance or mathematics background. Please see the link of speech notes on google drive to understand the flow of the aspects covered in the video.

Sunday, February 28, 2016

Significance of MS Excel financial model for a startup business





https://drive.google.com/file/d/0B0F5ZCsTvPP2a3VUUENWSGtHd1U/view?usp=sharing


Sunday, May 24, 2009

Macro-level perspective of Indian Oil and Gas sector

1. Primary energy consumption: What is the primary energy consumption of India? What is the past growth rate and what is projected future growth rate?What is the coorelation with GDP? WHat is the energy intensity of Indian GDP? What is the trend in energy intensity? What is India's rank in global primary energy consumption?What is the Indian consumption as the percentage of global consumption? Where is the rank moving? Where is the percentage moving?
2. Composition of primary energy consumption

Wednesday, May 20, 2009

Ethanol blending

1.Specifications: What are the specifications of ethanol for blending with MS? Is there any processing required for normal ethanol to be suitable to blend with MS? What is unit cost of such processing?
2.Industries: What are the sources of ethanol such as sugar, beat, etc?
3.Production: What is ethanol production in India? What is the trend in production and what are growth projections? Is it concentrated or dispersed? Is the industry organized or scattered?
4. Blending: Ethanol can be blended only with MS or other fossil fuels as well? What is the maximum percentage of blending?
5.Impact on MS quality - Does ethanol blending have any positive/negative impact on performance of automotive? Is there any established user preference?
6. Market: How is ethanol disposed otherwise? Exported? Which are consumer industries? What is their demand and growth trend? What is the price affordability of these industries?
7. Requirement: How much ethanol is available for automotive use? What is the MS sales in India and what is the growth rate? At given percentage, what is the total ethanol requirement at national level? Since ethanol is related to agricultural output, is there is cap on how much volume can be made availble? How can this cap be influenced?
8. Impact on imports: How much crude will be saved if ethanol blending achieves full potential? What would be the value or Forex saved at current price? What percent of current account deficit will vanish?
9. Logistics: Where the blending will take place? In refinery? In terminal or depot? In the ethanol factory? At the retail outlet? Is there uneven distribution of ethanol production? Who will carry ethanol from factory to the blending location? How to ensure regular supply?
10: Transaction: Who purchased the ethanol? Refinery? OMC? RO owner? Who will sell? Trader? Factory?
11. Price build-up: Market price or base price, plus processing and QC cost , plus transport cost, plus taxes
12: Economics: At what price (of MS) will it make sense to blend ethannol? At what price will it make sense to sell ethanol to OMC? Is there a critical crude price which determines economies of blending?
13: Projects: Should capacities dedicated for ethanol making come up? What should be typical size? How much should be the total capacity of all such units looking at demand -supply gap and economics? How much investment this means? In how how many years?
13 Regulation:Should there be a law to mandate ethanol blending? Should there be a policy framework for holistic ethanol blending program?

Level playing field in retail sector

Transmission tarrifs

Marketing and pricing freedom under NELP

Logic of import and trade parity prices

The subsidy labyrinth

Price differential between MS and HSD

Unintended subsidy on diesel

1. What is total HSD consumption in India? What is the past trend? What are projections for coming future?
2. What are the main consumer segments of HSD? What is share of automotive HSD and that of unintentionally subsidized other HSD? What is the share of commercial, household and industrial HSD consumptions?
2.1 Do these segments such as household diesel generator, etc deserve subsidy?
3.The HSD is sold at artificillay lower prices, at least as compared to MS. In this case, in what terms is the unintended subsidy? Is it in the form of lower taxes or price less than cost? How much tax collection government is forgoing on this account? How much "less profitable" or loss making HSD sale is per unit? Would the subsidy impact nullify if taxation on HSD is made at par with MS?
4. What is the volume of such HSD? What is the current (subsidized) price? What should be the unsubsidized price? What is annual subsidy volume? What is total subsidy value for unintended use?
4.1 Can there be a mechanism to direct the subsidy to only automotive users? How can such mechanism be made foolproof from diversion?
5. Who is bearing this subsidy? Oil companies? The government? The users of MS or other products? Upstream companies?

Downstream dilemma

1. Should gasoline be priced at a higher level than diesel?
2. Is the subsidy to non-automotive diesel consumption desired?
3. Should the urban middle class enjoy LPG subsidy?
4. Can the SKO consumption be converted to LPG for BPL families?
5. Should the prices of MS, HSD, LPG and SKO be decontrolled?