Adani Enterprises' signing auditor of 2018 had qualified CA in 2017.

The Morning Context's story has revealed many other startling facts. Read on:

1️⃣ Current auditor who started signing Adani Enterprises (AEL)'s financials qualified CA in 2017.

Auditors of high corporate governance standards companies having similar market cap have the following experience:

👉🏻 ITC - 33 years
👉🏻 HDFC - 29 years
👉🏻 Bajaj Finance - 28 years

2️⃣ Dharmesh Parikh & Co used to sign financials of AEL until 2017

They had to retire for FY18 due to rotation.

The new auditors Shah Dhandharia & Co. were appointed.

They have 3 partners who did their articleship at Dharmesh Parikh & Co. (previous auditors)

This shows that the rotation policy might not have been followed in essence

3️⃣ The name partner at Shah Dhandharia & Co. used to work at Dharmesh Parikh & Co.

Based on the revelations of an employee's LinkedIn profile.

Share on WhatsApp

Share on Twitter

--------

What is your take on this issue?

Personal Opinion: There is no law that is being broken here.

But AEL's spokespersons must clarify around the appointment of the auditors (who seem to be working too closely) to its shareholders.

Share

All the best. God bless you

❤️ Neeraj Arora

और हाँ, सीखते रहें, क्यूँकि सीखना शुरू तो जीतना शुरू 🚀

Feel Free to Share your Views in the comment box below! I read all the comments and try to reply to all of them.

But I thought let me talk about the biggest MISTAKES of Retail investors in the Stock Markets.

Who is responsible for our Loss in Stock Market?

It is not the market because of which we lose our money, it is US 🙋🏻‍♂️.

There are many mistakes that are committed by retail investors specifically when they are in the initial phases of their investing journey.

Want to know the biggest mistakes in Investing by retail investors here is the video. I have also discussed the solution to the problem in the video itself.

Click Here For Video

All the best. God bless you

❤️ Neeraj Arora

और हाँ, सीखते रहें, क्यूँकि सीखना शुरू तो जीतना शुरू 🚀

Feel Free to Share your Views in the comment box below! I read all the comments and try to reply to all of them.

Investing at an early age will always give you more benefits. So, do not miss this opportunity.

Just start your investing journey with me.

This is a LIMITED PERIOD OFFER.

Click here to open your Demat Account- https://upstox.com/open-demat-account/?f=MKP1​

We have tied up with Upstox to help students.

Upstox is a Ratan Tata funded startup and is one of the Highest Rated Applications in India.

Benefits of opening with us-

1. Free courses on Index Fund will be provided to each and every student who registers through us.

2. Free course on Financial Literacy

3. At the time of opening your Demat account, our team will be there to help you.

Click here to open your Demat Account- https://upstox.com/open-demat-account/?f=MKP1

If you have any queries, feel free to contact us on 9910368103 (Call/WhatsApp) | Mon to Sat | 10 AM to 6 PM.

More to read for you

Neeraj Arora

What "NOT" to do in Stock market Fall

Read more

4 years ago · 3 likes · Neeraj Arora

Neeraj Arora

The real meaning of Frugal

Rich men use most of their money to get richer. Poor men use most of their money to look richer.” -Mokokoma Mokhonoana When we say live a frugal lifestyle. Sometimes people misunderstand for buying cheap things or they think frugal is equivalent of a miser…

Read more

4 years ago · 13 likes · 3 comments · Neeraj Arora

Neeraj Arora

Savings

Savings - The ultimate tool to be financially free and create wealth. The first money lesson I taught my daughter is the concept of savings. Saving for rainy days, what we normally call emergency funds. Savings for living a life with no tension while going to sleep. This is my favourite one, saving with goals. I call it “NO TENSION FUND…

Read more

4 years ago · 5 likes · Neeraj Arora

All the best. God bless you

❤️ Neeraj Arora

और हाँ, सीखते रहें, क्यूँकि सीखना शुरू तो जीतना शुरू 🚀

Feel Free to Share your Views in the comment box below! I read all the comments and try to reply to all of them.

How does this work?

1. You subscribe to my write-ups. (No cost at all)

2. Check your email after subscribing.

Shift Neeraj Arora Reflection From Promotion or other tabs to your Main Inbox

1. Check whether Neeraj Arora Reflection is in the promotion tab?

2. Click and Drag it to your Inbox.

3. Click yes on Do this for future Dialog box at the bottom left.

Check the instruction in the picture below.

Also - add neerajarora@substack.com to your contacts in your email account.

The first money lesson I taught my daughter is the concept of savings.

• Saving for rainy days, what we normally call emergency funds.

• Savings for living a life with no tension while going to sleep. This is my favourite one, saving with goals. I call it “NO TENSION FUND“

• Savings for investing.

Generally, people think that savings can be increased by earning more. Yes, it is true but not without controlling your expenses. Controlling your expenses depends on your

• Lifestyle.

• Overall Thought process.

No matter how much increment you can do in your income/earnings, if you are not able to control your expense, you will not be able to save more.

You can also read the article below for understanding the benefit of savings in case of a stock market fall

Neeraj Arora

What "NOT" to do in Stock market Fall

Read more

4 years ago · 2 likes · Neeraj Arora

Spending less is a behavioural thing. As Morgan Housel Wrote in his book, The Psychology of Money -

Saving is the gap between your ego and your income.

When I say spend less or control your expenses, it has nothing to do with cutting your basic expenses or buying inferior quality goods or services. You should start cutting down the expenses which are done because of our fragile egos, because of an urge to show-off, because of fear of missing out.

One more kind of expense you should control, the ones for which you don’t have money. That is the one for which you will have to take credit/debt/loan. Such expenditures, unless it is an emergency must be avoided at all costs.

No doubt we all must constantly learn new things and try to increase our active income, but in order to create wealth saving is the ultimate tool.

Even an average person with extraordinary savings can be financially free. On the contrary, a person having a high income but no savings will be a financial disaster sooner or later.

Here is another reflection you can read to understand what is the real meaning of being frugal

Neeraj Arora

The real meaning of Frugal

When we say live a frugal lifestyle. Sometimes people misunderstand for buying cheap things or they think frugal is equivalent of a miser. Being frugal is not buying cheap or low-quality products or services it is also not being a miser. Being frugal is about living a simple life and spending money where you get the maximum value out of it…

Read more

4 years ago · 11 likes · 3 comments · Neeraj Arora

Here is a tweet by Vishal Khandelwal to summarise it with a picture and a quote.

All the best. God bless you

❤️ Neeraj Arora

और हाँ, सीखते रहें, क्यूँकि सीखना शुरू तो जीतना शुरू 🚀

Feel Free to Share your Views in the comment box below! I read all the comments and try to reply to all of them.

How does this work?

1. You subscribe to my write-ups. (No cost at all)

2. Check your email after subscribing.

Shift Neeraj Arora Reflection From Promotion or other tabs to your Main Inbox

1. Check whether Neeraj Arora Reflection is in the promotion tab?

2. Click and Drag it to your Inbox.

3. Click yes on Do this for future Dialog box at the bottom left.

Check the instruction in the picture below.

Also - add neerajarora@substack.com to your contacts in your email account.

The number 1 reason is their own experience, it was either a first-hand or passive experience.

Either they have lost some money in stock markets or they have seen someone losing a fortune in stock markets.

Also, we should not forget they have also seen Banks giving fixed rates of interest above 8% or even 10%.

The second reason which is because of experience itself is lack of interest and thereby lack of knowledge of how things work in stock markets.

The idea of personal finance was not well-pitched into their ears when they were young and just started earning. Most of them start thinking about money once they were married or they had kids.

The next reason is the experience of their parents (your grandparents). Your parents were more obedient than you (in most cases).

Emotional pressures to get married early, to get a house as soon as possible, to invest in gold as an asset class, to have kids as soon as after marriage, and whatnot.

The above reasons collectively left very little to save.

If you will check at your place you will find

1. Fixed Deposits

2. Recurring Deposits

3. Gold.

4. Insurance as an investment.

These are considered safe. Our parents are looking for the safety of their capital. At the same time, they go for advance loans in the open market at 2% per month, or they will participate in unorganized “CHIT FUNDS” popularly known as “committee” in North India.

The concept they completely ignore while taking money decisions

1. Investing in equity is investing in a business.

2. Time-value of money.

3. Power of compounding.

4. The “house” is not an investment.

5. Risk of taking huge loans for housing and the effect of EMI on their daily life.

6. One day they will stop working for sure and then they will need money to live the life for which they were saving.

We can change their mindset gradually by talking to them and discussing the basic concepts with them. Please note that it took them years to build this mindset, changing it will take time and effort.

All the best. God bless you

Neeraj Arora

और हाँ,

सीखते रहें, क्यूँकि सीखना बंद तो जीतना बंद

Shift Neeraj Arora Reflection From Promotion or other tabs to your Main Inbox

1. Check whether Neeraj Arora Reflection is in the promotion tab?

2. Click and Drag it to your Inbox.

3. Click yes on Do this for future Dialog box at the bottom left.

Check the instruction in the picture below.

You need to understand the basics of money and investing and you should be a continuous learner for this. You should have strong willpower and intent to learn about money.

Let me tell you a simple thing, it has got nothing to do with your formal education or your profession. I will explain this with an example in the video.

Learn the basics of

• Life-Insurance

• Medical Insurance

• Emergency fund.

• Opportunity fund.

• Equity Investing

Learn to accept that you can’t pick individual stock so either you learn how to do it and till the time you are doing it, you will invest through mutual funds.

Learn to use the services of good financial advisors.

Learn where are you can go wrong. Learn how people lost their money in individual and public scams.

Learn about risk.

Question get quick rich schemes

Learn how to set financial goals.

Learn different means to achieve different types of financial goals.

Learn how debt can destroy your life.

You can learn these things from our free fin91 Community.

The biggest financial mistake is we stop learning or we don’t learn at all about money. Don’t do it!

Regards

Neeraj Arora

Rich men use most of their money to get richer. Poor men use most of their money to look richer.” -Mokokoma Mokhonoana

When we say live a frugal lifestyle. Sometimes people misunderstand for buying cheap things or they think frugal is equivalent of a miser.

Being frugal is not buying cheap or low-quality products or services it is also not being a miser.

Being frugal is about living a simple life and spending money where you get the maximum value out of it.

Value in terms of serving the purpose, saving the time, value in terms of how it is going to affect your mental and physical health.

Buying things just because everyone has one is not what a frugal person does.

A frugal person avoids wastage, utilise the existing goods in the best possible manner.

Just for example.

What do we need to keep ourselves fit.

Exercise daily for 30 to 40 minutes. You can do this without any equipment(s), or you can just go for some basic things like a set of dumbells, or a yoga mat.

What you don’t need

• A costly pair of shoes

• A great health tracking device.

• Costly gym membership.

• A costly and great looking lower.

• An amazing set of headphones to listen to music while working out

• 4 to 5 apps that can help you in your workout.

Advantages of being Frugal

• You will save a lot of time.

• You will save a lot of mental energy.

• You will live in peace.

• You will be happier.

• You will be more satisfied.

• You will save more, invest more and create enormous wealth.

• Your Patience will increase.

• Overall your physical health will also improve as frugality will let you avoid some unhealthy habits and purchases.

How to be Frugal

• Delay gratifications

• Avoid wastage

• Delay your luxury buying decisions.

• Don’t buy/spend because someone else is doing it. His income levels or his needs or wants may be different from yours. You don’t know whether he is using his own money or borrowed money.

• Don’t follow influencers, who just show off stuff or unnecessary promote brands which they themselves are not fans of.

• Don’t try to copy your favourite social medial influencer.

My Wealth Disclosed

Read more about savings here

Neeraj Arora

Savings

Savings - The ultimate tool to be financially free and create wealth. The first money lesson I taught my daughter is the concept of savings. Saving for rainy days, what we normally call emergency funds. Savings for living a life with no tension while going to sleep. This is my favourite one, saving with goals. I call it “NO TENSION FUND…

Read more

4 years ago · 4 likes · Neeraj Arora

I am not saying that you should become some monk or start living like one. Frugality (The quality of being frugal) is about living life to its fullest (may sound contradictory) but only in terms of things that really matter to you.

All the best

Regards

Neeraj Arora

सीखते रहें, क्यूँकि सीखना बंद तो जीतना बंद

Cryptocurrencies fall under the definition of Virtual Digital assets. Explained in the end.

Deduction of Expense

No deduction in respect of any expenditure (other than the cost of acquisition) or allowance or set-off of any loss shall be allowed to the assessee under any provision of the Act while computing income from the transfer of such asset.

For example - You purchased cryptos worth ₹ 1,00,000, sold them for ₹ 1,50,000. Suppose you also paid some amount of ₹ 5,000 as a fee for maintaining your crypto account.

Your profit is ₹ 50,000 and it will be taxable @30% Flat. ₹ 5,000 paid as the fee will not be allowed as a deduction. Only the cost of Acquisition of ₹ 50,000 will be allowed as a deduction.

Set-off of losses

No set-off of any loss arising from the transfer of virtual digital assets shall be allowed against any income computed under any other provision of the Act and such loss shall not be allowed to be carried forward to subsequent assessment years.

In simple words, if there is a loss on the transfer of a virtual digital asset, it will be a dead loss and it cannot be used to reduce or set off from any other income.

For example, your income under salary head is ₹ 10,00,000 and your loss in crypto is ₹ 2,00,000 you cannot say that your income is ₹ 8,00,000.

Applicable from 1/4/2022

All these changes are applicable from 1/4/2022 onwards.

TDS on cryptocurrency - Section 194S

Section 194S has been inserted to provide for deduction of tax on payment for the transfer of virtual digital assets to a resident at the rate of one per cent of such sum. 

No tax is to be deducted in case the payer is the specified person and the value or the aggregate of such value of the consideration to a resident is less than Rs. 50,000 during the financial year.

In any other case, the said limit is proposed to be Rs. 10,000 during the financial year.

Specified Person

For the purposes of the said section, it is proposed to provide that 'specified person means a person:

1. being an individual or Hindu undivided family whose total sales, gross receipts or turnover from the business carried on by him or profession exercised by him

   does not exceed one crore rupees in case of business or fifty lakh rupees in case

   of the profession, during the financial year immediately preceding the financial year in which such virtual digital asset is transferred;

2. being an individual or Hindu undivided family having income under any head

   other than the head 'Profits and gains of business or profession'

Gifting of virtual digital assets

Virtual digital assets as a gift will be taxable and are included in the definition of property.

If the aggregate value along with other moveable property without consideration exceeds ₹ 50,000 then the entire amount will be taxable.

If received for consideration and the difference between consideration and fair market value exceeds ₹ 50,000 then also the entire amount will be taxable.

Meaning of Virtual Digital Asset -

a virtual digital asset is proposed to mean

A.

• any information or

• code or

• number or

• Token

  • (not being Indian currency or any foreign currency),

• generated through cryptographic means or otherwise, by whatever name called,

• providing a digital representation of value which is exchanged with or without

  consideration, with the promise or representation of having inherent value, or

• functions as a store of value or a unit of account and

• include its use in any financial transaction or investment, but not limited to, investment schemes and

• can be transferred, stored or traded electronically.

Cryptocurrency will fall in the above meaning.

B.

• Non-fungible token and;

• any other token of similar nature are included in the definition.

C.

• any other digital asset, as the Central Government may, by notification in the Official Gazette specify:

Provided that the Central Government may, by notification in the Official Gazette, exclude any digital asset from the definition of the virtual digital asset subject to such conditions as may be specified therein.

Basically, Central Government has full power to declare something as VDA, Also government can exclude anything from the definition of VDA.

Updates

The government has proposed to issue a Digital Rupee, or Central Bank Digital Currency (CBDC), in the fiscal year 2022-23. Additionally, the Budget also proposed imposing a tax of 30 per cent on virtual assets, effectively legitimising trading of private cryptocurrencies and non-fungible tokens. This is broadly in line with the Centre’s plans to have a fiat digital currency while disallowing the use of private virtual coins as legal tender. -

Source - https://indianexpress.com/article/explained/union-budget-2022-cryptocurrency-taxation-digital-rupee-explained-7751213/

Those who started investing when NIFTY was at 18K plus must be feeling disturbed. You must be seeing losses all over your DEMAT account. First of all these losses are just paper losses, nothing more than that.

What action you should take right now? Review the stocks or Mutual funds you started investing in and try to find out the rationale/goals/thought process with which you invested in them.

Ask yourself whether you researched properly before investing if the answer is yes and there are no red flags in the company just stay invested.

If you invested on "BORROWED CONVICTION" learn from your mistakes, reflect upon them. Don't worry almost everyone has committed this blunder once in their investing journey.

Check such stocks in your portfolio, do some basic research on it and decide whether you want to stay invested in them or not. "It cannot fall further" is not true at all. If the business is not good at all it can go to zero or a single-digit value.

It is ok to book losses and exit from bad businesses, it is like paying fees for stock market lessons.

Believe me or not, the biggest reason for investing in bad businesses is the urge to earn fast and a high rate of return, which can be done once or twice but is not sustainable at all.

Control your return expectation and invest carefully.

These are my thought for average retail investors like me. If you liked it, follow me on @neerajarora91 for stuff like this on Personal Finance and Investing.

Keep this in mind! Always!

What a wonderful thought by Morgan Housel.

Do you ever feel - “I must have purchased quality stocks during the 2008 crisis or the 2020 crisis?” Then the above quote is for you.

Whenever we look at a past decline it looks like an opportunity, we say काश तब invest किया होता!

But when we see the markets going down in front of us or when someone talks about it that it will fall in future, we take it as a risk.

Be Fearful When Others Are Greedy and Be Greedy when others are fearful - Warren Buffet

Thoughts on “Buy the dip”

Here is another one from the one and only Vishal Khandelwal.

Buying on dips or declines is not as simple as it seems. I am not a big fan of the deeply discounted prices, but you must go slow when you are buying on dips.

Also, be mentally prepared even the greatest of the business can keep dipping for a few days in a row. Don’t go all in.

How much will the market fall?

Believe me, no one knows it. Go slow.

Another one

What not to do when the market is falling?

• Don’t sell in panic.

• Don’t borrow for investing with the thought that the market will recover soon.

• Don’t stop your SIPs in your equity mutual funds.

• Don’t let temporary falls affect your mental health at all.

• Don’t use your emergency funds to invest in falling stocks.

• Don’t fall for FOMO when markets corrects.

A stock can be priced very high because of temporary news but if the business is not good stay away. In the same way, stock can be beaten down in prices because of temporary events, it does not mean you should sell it.

The bottom line is - Focus on Business, not on the prices

Cash is the king

Buffett's large cash balance not only insulated Berkshire from the broader market turmoil, but it also gave the group the optionality to take advantage of others' weaknesses. Buffett explained this principle in a meeting with the University of Maryland students in November 2013:

"BRK always has $20 billion or more in cash. It sounds crazy, never need anything like it, but some day in the next 100 years when the world stops again, we will be ready. There will be some incident, it could be tomorrow. At that time, you need cash. Cash at that time is like oxygen.

When you don't need it, you don't notice it. When you do need it, it's the only thing you need. We operate from a level of liquidity that no one else does. We don't want to operate on bank lines.

Something like that will happen maybe a couple of times in your lifetime. Two things when it happens again - don't let it ruin you, and if you have money/guts, you'll have an opportunity to buy things at prices that don't make sense. Fear spreads fast, it is contagious. It doesn't have anything to do with IQ. Confidence only comes back one at a time, not en masse. There are periods when fear paralyzes the investment world. You don't want to owe money at that time, and if you have money, then you want to buy at those times. Be greedy when others are fearful and fearful when others are greedy."

Holding cash gives you options and freedom. You might miss out on some market gains in a bull market, but how can you put a price on cash's optionality in a recession?

While it might be painful to hold a lot of cash in the short term, it will undoubtedly pay off for patient, long-term investors.

- Source

My own Experience

The most important asset when the stock market is falling is cash. Always set aside some cash in 100% liquid funds. I prefer to keep it in a savings bank account. You might feel a little surprised at this idea, because this cash will not earn you anything, but you will realise the importance of this cash when the stock market falls and you will have some amount to invest.

This is not at all an attempt to time the market.

It is like an opportunity fund to be utilized when markets give chance. It can be tempting to invest all of your assets in stocks during a bull market. People ignore the value of cash in the portfolio. Keeping cash helps in avoiding the overvalued companies and also gives an opportunity to buy quality ones when opportunity knocks on the door.

Suggested Reading - The importance of Saving

Neeraj Arora

Savings

Savings - The ultimate tool to be financially free and create wealth. The first money lesson I taught my daughter is the concept of savings. Saving for rainy days, what we normally call emergency funds. Savings for living a life with no tension while going to sleep. This is my favourite one, saving with goals. I call it “NO TENSION FUND…

Read more

4 years ago · 2 likes · Neeraj Arora

Neeraj Arora

How to be patient in stock markets?

Click on the button below to share this post More to read for youWant to read Neeraj Arora Reflections Letters Free of Cost? Just type in your email address and you will get it in your inbox. All the best. God bless you ❤️ Neeraj Arora और हाँ, सीखते रहें, क्यूँकि सीखना शुरू तो जीतना शुरू 🚀…

Read more

4 years ago · 7 likes · Neeraj Arora

I personally follow this rule and it has helped me a lot. People regret not having cash in their portfolios.

How you can learn about stock markets?

By writing or recording your feelings and thoughts about the current dip. Writing about your urges to sell or exit at low prices. Reflecting upon your decisions in the past. Basically create a journal of your stock market experiences and learn from your own experiences and mistakes.

All the best. God bless you

❤️ Neeraj Arora

और हाँ, सीखते रहें, क्यूँकि सीखना शुरू तो जीतना शुरू 🚀

Feel Free to Share your Views in the comment box below! I read all the comments and try to reply to all of them.

How does this work?

1. You subscribe to my write-ups. (No cost at all)

2. Check your email after subscribing.

Shift Neeraj Arora Reflection From Promotion or other tabs to your Main Inbox

1. Check whether Neeraj Arora Reflection is in the promotion tab?

2. Click and Drag it to your Inbox.

3. Click yes on Do this for future Dialog box at the bottom left.

Check the instruction in the picture below.

Also - add neerajarora@substack.com to your contacts in your email account.

How is your experience?

What are your learnings?

Reflect on your mistakes during your investing journey. Note down your feelings. Create an Investing feeling journal. For example, you purchased a stock and it went down because of serious management related issues. You must write down your reasons for buying such a stock. What was the feeling just before buying it? Who motivated you to buy it? Ask questions to yourself about it and write completely honest answers and you will learn a lot.

Some of you might have sold a great company only after earning 10 to 20 % from it. In this case also, write down your thoughts on why you sold it, what motivated you? Asking questions will lead you to your problems and then you can find solutions for the same.

if you were lucky enough to be invested in markets in March 2020, there was a lot to learn and reflect on. I wrote almost thrice a week from March 2020 to August 2020. It gave me immense knowledge. I got to know so much about myself as an Investor. 

Reflect and Write on all your Investing decisions. Whether they were good or bad. You will learn a lot about investing and most importantly about yourself. 

Most of you reading must have applied for an IPO recently. Reflect upon your decision of applying for it. Reflect upon your decision of holding it or selling it at loss.

This is not at all an attempt to time the market.

It is like an opportunity fund to be utilized when markets give chance. It can be tempting to invest all of your assets in stocks during a bull market. People ignore the value of cash in the portfolio. Keeping cash helps in avoiding the overvalued companies and also gives an opportunity to buy quality ones when opportunity knocks on the door.

I personally follow this rule and it has helped me a lot. People regret not having cash in their portfolios.