Business

Cash Flows of Companies Dry Up Due to Amid Lockdown

Published

4 years ago

May 4, 2020

MUMBAI: Cash flows, the lifeline of corporations, are drying up fast. An extended lockdown has left corporations — micro, small & medium enterprises (MSMEs) significantly — watching a bleak future. Some corporations are struggling to pay salaries to employees, whereas some are having a look at winding up operations reasonably than proceed with an unprofitable enterprise.
Companies use working capital for his or her day-to-day payments.

When accomplished merchandise are supplied, they get income. Whereas the mounted payments — resembling salaries to employees — have remained mounted even all through the lockdown, there’s been no income or cash that has come for a non-essential producer or service provider.
DPK Engineers CMD S Sampathraman acknowledged, “Cash stream is to a enterprise what blood is to the human physique. When there’s no blood circulation for a pair of minutes, we would die. My cash flows will run dry in each week.” DPK Engineers, which posted a turnover of spherical Rs 250 crore in 2017-18, is into diesel generators.

A quantity of MSMEs are coping with a hard time in drawing working capital from banks. “My banker acknowledged 10-12 days previously that he would lend 20% additional over and above the prevailing lending limit to alleviate the Covid-19 lockdown points. A pair of days previously, he acknowledged the extra limit has been slashed to 10%. Eligibility requirements proceed to be surplus of belongings over liabilities, sufficient shares and debtors (with margins of 25% and 30%, respectively) to avail the 10% additional credit score rating. These requirements are impractical when there was zero enterprise throughout the 40 days of lockdown,” acknowledged Sampathraman.

In huge corporations, there’s higher debt, nevertheless moreover they have further belongings to pledge/promote and search additional funds. These with stronger steadiness sheets have sufficient cash to keep their operations for an prolonged interval. Reliance Industries, the nation’s most valued agency, had a debt of Rs 3.36 lakh crore as of March 2021, whereas its cash and cash equivalents stood at Rs 1.61 lakh crore.

Companies like TCS, which has zero debt and strong cash flows, are increased positioned to tide over the tough enterprise setting. TCS’s cash stream from operations stood at Rs 32,303 crore in fiscal 2021. Employee costs, the very best expense of the company, comprised 42% (Rs 65,642 crore) of its revenue. TCS is a very powerful employer of coders throughout the nation with 4.5 lakh people. Nevertheless, Hindustan Unilever’s cash place as on March 31, 2021, is Rs 9,770 crore.

Kotak Securities EVP Rusmik Ounces acknowledged, “The lockdown and uncertainty of when points will get once more to normalcy have launched cash flows once more into focus. Companies having better Ebitda (earnings sooner than curiosity, tax, depreciation, and amortization) margins, a lot much less/no debt, and first-rate cash of their steadiness sheets will be prepared to local weather this half in a better methodology. From an operations perspective, corporations producing healthful working cash flows are increased positioned on these events when revenue is impacted nevertheless certain mounted costs nonetheless need to be incurred.”
In distinction to huge enterprises, a quantity of MSMEs are in dire straits.

“It’s nearly a winding-up state of affairs for 60% of them,” acknowledged Sampathraman. Solkar Photograph voltaic Commerce CMD Okay E Raghunathan is considering shutting operations altogether. “We don’t want any cash. Interval. I am planning to wind up my operations consequently of I am pushed to the wall. At one degree the pilot has to eject. I will not have the choice to run the company profitably,” acknowledged Raghunathan. “Nevertheless I will assure all my dependents are taken care of,” acknowledged Raghunathan, who has been an entrepreneur for over three a very long time and started Solkar Photograph voltaic Industries in 1984.

“One important dedication I’ve his wage, which I do not know how to pay. There’s a lot of pressure on MSMEs to cut back their drawing vitality (cash from banks). In accordance to my understanding, 70% of MSMEs will likely be unable to pay salaries this month,” acknowledged Raghunathan.

Companies which have increased working capital cycles are a lot much less strained in such events. Traditionally, sectors like FMCG, IT, pharmaceuticals, agrochemicals, two-wheelers, and gasoline, which have increased cash flows and lesser Capex requirements, will be a lot much less impacted throughout the shut to time interval. Nevertheless, sectors which will be extraordinarily capital-intensive and have extreme mounted costs will uncover it troublesome to deal with this troublesome half of Covid-19.

“Sectors which may face cash stream points throughout the very shut to time interval are aviation, smaller NBFCs, capital objects, improvement, resorts, infrastructure, metals, precise property, and textiles,” acknowledged Ounces of Kotak Securities. Sampathraman acknowledged the federal authorities ought to spend $500 billion on doles to poor, security of livelihood of employee and short-maturity infrastructure initiatives with big rural employment alternate options, like registering and promoting ‘Geographical Indications’ completely free.

Related Topics:Business Companies Coronavirus COVID-19 Lockdown

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Manvendra Chaudhary

Manvendra Chaudhary, with over 5 years of professional experience as CEO of Unique News and Megalent Marketing, shares insights on life, business, and health for your success.

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World

More Trouble For Microsoft, OpenAI: Eight US Newspaper Publishers File Lawsuit For Copyright Infringement

Published

2 days ago

May 4, 2024

Manoj Nair

More Trouble For Microsoft, OpenAI: Eight US Newspaper Publishers File Lawsuit For Copyright Infringement

Trouble for Microsoft and OpenAI over copyright infringement is not coming to an end, as they face several lawsuits for violating copyrights.

On Tuesday, eight US newspaper publishers sued Microsoft for illegally reusing articles in AI products.

The 98-page long lawsuit further accused the tech companies of attributing erroneous information to the publishers.

The eight newspapers that have filed the lawsuits include the New York Daily News and the Chicago Tribune.

They allege that OpenAI’s ChatGPT used their copyrighted articles to perfect its language models without permission.

The lawsuit was filed in a New York federal court on Tuesday. The publishers claim that OpenAI’s large language models, GPT-2 and GPT-3, were perfected using datasets containing text from their newspapers.

The language models are designed to produce text based on human inputs and reproduce copies of the publishers’ works. Microsoft has been indicted for using newspapers for its Bing search index but seldom provided links to the original articles. Four months ago, The New York Times also filed a lawsuit against OpenAI, accusing the tech giant of using data from its past content. It also asked for consent for usage, criticizing the use of full article excerpts in chatbot responses.

The latest lawsuit filed by the eight news outlets also demanded consent and fair value for using their content to perfect the AI language models. The lawsuit alleged that the AI tools literally regurgitate their content without directing users to the content source.

The lawsuit filings stated, “This lawsuit arises from defendants purloining millions of the publishers’ copyrighted articles without permission and without payment to fuel the commercialization of their generative artificial intelligence products, including ChatGPT and (Microsoft’s) Copilot.”

The eight newspapers that instituted the lawsuits are as follows:

The New York Daily News and The Chicago Tribune, both owned by Alden Global Capital
The Orlando Sentinel
The Sun Sentinel
The San Jose Mercury News
The Denver Post
The Orange County Register
The St. Paul Pioneer Press

OpenAI’s Response

OpenAI did not directly respond to the accusations but stated that it takes great care to support the news and media outlets. It also stated it is in continuous partnerships and conversations with various news outlets around the world to explore new opportunities, discuss problems, and seek out solutions.

Microsoft also stated that OpenAI has entered into fruitful partnerships with a number of publishers, which includes The Financial Times, The Associated Press, Spanish conglomerate Prisa Media, and Germany’s Axel Springer.

Net Worth

Alan Patricof Net Worth 2024: How Much is the American Investor Worth?

Published

3 days ago

May 3, 2024

Vishnu Chaudhary

Alan Patricof Net Worth 2024: How Much is the American Investor Worth?

Who is Alan Patricof?

Alan Patricof is a prominent figure in the American investment landscape, renowned for his contributions to venture capital. With a career spanning over four decades, Patricof has been instrumental in shaping the growth of numerous global companies, including America Online, Apple Computer, and Audible. His legacy extends beyond business, with involvement in community organizations and government initiatives.

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Alan Patricof Career

Alan Patricof’s career in venture capital began in the industry’s early days. He founded Patricof & Co. Ventures Inc., a precursor to Apax Partners, one of the world’s leading private equity firms. Later, he established Greycroft Partners, focusing on early and expansion-stage investments in digital media. Throughout his career, Patricof’s vision and leadership have played a pivotal role in advancing the venture capital field.

Alan Patricof’s Net Worth

As of May 3, 2024, Alan Patricof’s estimated net worth stands at over $1 million. His wealth is derived from various investments, including holdings in Boston Properties Inc. and successful ventures in digital media. Despite humble beginnings, Patricof’s entrepreneurial spirit and strategic acumen have propelled him to financial success.

Alan Patricof Age

Born in 1934, Alan Patricof is currently in his late eighties. Despite his advanced age, he remains active in the business world, leveraging his wealth of experience to mentor emerging entrepreneurs and drive innovation.

Alan Patricof Family: Wife and Children

Alan Patricof has been married to his wife Susan for over 48 years. Together, they have three children and seven grandchildren. Family holds great importance to Patricof, and he credits his upbringing and heritage for shaping his values and work ethic.

Alan Patricof Height and Weight

While specific details about Alan Patricof’s height and weight are not readily available, his stature in the investment community is undeniable. Patricof’s impact transcends physical measurements, as he continues to leave a lasting legacy in venture capital and philanthropy.

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Net Worth

Stephen M. Ross Net Worth 2024: How Much is the Chairperson of The Related Companies Worth?

Published

4 days ago

May 2, 2024

Vishnu Chaudhary

Stephen M. Ross Net Worth 2024: How Much is the Chairperson of The Related Companies Worth?

Who is Stephen M. Ross?

Stephen M. Ross, the Chairperson of The Related Companies, is a distinguished figure in the real estate sector, renowned for his significant contributions and profound impact. Born on May 10th, 1940, in Detroit, Michigan, Ross embarked on his journey into real estate at a young age, demonstrating remarkable diligence and entrepreneurial spirit. Despite initially pursuing a career as a tax attorney, Ross soon discovered his genuine passion for real estate investment, laying the foundation for his illustrious career.

Stephen M. Ross Career

Ross’s career trajectory is marked by pioneering ventures and transformative projects. In 1972, he founded The Related Companies, which initially focused on subsidized low and moderate-income apartments. Over the years, Ross transitioned to higher-profile projects, including the iconic Hudson Yards development, valued at over $7 billion. His visionary approach and strategic partnerships have cemented his reputation as a prominent figure within the real estate industry.

Stephen M. Ross Net Worth

As of 2024, according to Celebrity Net Worth, Stephen M. Ross’s net worth stands at an impressive $10 billion, solidifying his status as one of the wealthiest individuals globally. Ross’s wealth accumulation is attributed to his unparalleled success as a real estate mogul, with an estimated annual income of nearly $700 million derived from royalties on his diverse property holdings. His continued involvement in the real estate sector, with ongoing projects in New Jersey and Florida, further contributes to his substantial net worth.

Stephen M. Ross Age

Currently, Stephen M. Ross is 83 years old, born on May 10th, 1940. Despite his age, Ross remains actively engaged in his professional pursuits, demonstrating resilience and dedication to his craft.

Stephen M. Ross Family: Wife and Children

Ross’s personal life is characterized by familial bonds and enduring relationships. He is happily married to Kara Ross and is the proud father of four children. Ross’s commitment to family values underscores his holistic approach to life and business.

Stephen M. Ross Height and Weight

Physically, Stephen M. Ross stands at a height of 6 feet 2 inches (1.88m) and maintains a healthy body weight of around 72 kg. Despite his busy schedule, Ross prioritizes his health and well-being, engaging in activities such as volleyball and tennis.

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