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Stock market update: Fertilizer companies are on the Run ! Should you buy it?

Fertilizers companies Coromandel Inter, FACT, Chambal Fertilizers, RCF, GSFC, Paradeep phosphates and National Fertilizer are all making a run this season. Should you add them to your portfolio? let’s find them out

On Thursday, 13 Apr, 23 Fertilizers & Chemicals Travancore Ltd was up 321 12.40% National Fertilizer Ltd was down ₹ 85.3 -0.87%, Coromandel International Ltd ₹ 927 -0.05% respectively.

Let’s look at companies Technicals one by one to find out which one to invest in

National Fertilizer Ltd

While the company has not been profitable all this while. However, The company has posted profits of 700 cr for 2022 as compared to a -95CR loss Last year. As per the price point, one should avoid making new positions.

Coromandel International Ltd

Net Profit26197208213294-181237-95700

Coromandel seems to be making a fine entry at CMP 927 however, considering the stock could be making a BEARISH Rising wedge pattern. Hence, it is not advised to make an entry in this stock.

What is a rising wedge?

A technical signal known as a rising wedge suggests a reversal pattern typically observed in bad markets. This pattern appears on charts when the price rises and the pivot highs and lows converge towards the apex, which is a single point.

Fertilizers & Chemicals Travancore Ltd

FACT seems to have taken the best of all already, Stock price currently trading at Rs320 a Piece. Already 64% up from its last low of Rs 193. It is not advised to make new positions in this stock.

The company has made over Rs 681Cr profit this year compared to 353cr Profit last year.

Chambal Fertilisers & Chemicals Ltd

The only company that seems to have the advantage of being added to the portfolio. Chambal fertilisers posted a profit of 1,184CR this year compared to 1566CR last year which seems to be a fall yet profitable still.

The price of Chambal Fert is Rs 289 and it can be a good buy still in the portfolio with targets of up to Rs 312.

Rashtriya Chemicals & Fertilizers Ltd

RCF has posted 1,041CR profit as compared to 702CR from the last year. Furthermore, the stock seems to be in the category of a buy zone. As can be seen in the start. RCF is making a symmetrical triangle pattern. To know more about this pattern, click here

Gujarat State Fertilizers & Chemicals Ltd

The company has posted a whooping profit of 1,345CR which was 891CR last year. Also, Stock seem to be on the support in a channel pattern. This can also be a decent addition in your portfolio.

Paradeep Phosphates Ltd

With only ₹ 4,402 Cr Market cap, Paradeep phosphates CMP 54 posted 330CR profit this year. Last year, PP gained 398CR which seems to be a decent fall. Considering the DII holds 20.73% of the company. we recommend this to be a decent accumulation.

Please note: Paradeep phosphates are making a descending triangle, which indicates a possible downfall. Or it has been done already, as you can see in the stock price,

Conclusion

While the sector/industry seems to be getting a lot of FII and DII attention. There are fewer stocks only which can be added to the portfolio at this time. We recommend you do your complete analysis of them before adding them. To stay updated follow us on Instagram.

This learning sharks article is of a general nature. Our articles are not meant to be investment advise; instead, we only offer analysis based on objective methods, past information, and projections from analysts. It doesn’t represent an advice to buy or sell any stock, and it doesn’t take into consideration your goals or financial position. We hope to provide you with long-term analysis that is driven by essential facts. Be aware that recent price-conscious announcements from businesses or high-quality information may not be taken into account in our analysis.

#stockmarket #sharemarket

Can I make a career in the stock market?

stock market courses

Can I make a career in the stock market after this course? ok, let’s understand this. We at learning sharks- stock market institute offers share market courses. Thriving makes you a full-time stock trader or a full-time employee.

All things considered, Yes!, you would be able to do both of them after your course at our stock market institute. Once you learn how to trade in the stock market. The cash you would be generating can not be offered in any corporate. You become your own boss.

Besides

Yet, if you see the stock market as a passion yet still want to work after the course, we respect that. You can appear for the NCFM and NISM exams for which we btw pay if you clear with about 90%. A plethora of job vacancies are open for you once you clear the exam.

Altogether, From the banking sector, Insurance companies, broking houses and research houses. Also, financial institutions &investment banking sector as a terminal operator/dealer relationship executive. Manager, executive.

Apart from this manager in RMS, executive and manager in the depository department DP. Also, executive and manager in the back-office department, technical and fundamental analyst. The best is a research analyst.

Definitely, You can become a broker or sub-broker and do business. Furthermore, you can open your research advisory company. and give research tips to your clients. The choice is yours.

Here are some of the courses that you can do to make career in the stock market

Some of the certifications that you would need to find a job are here below, to find all, click here

NISM Series I: Currency Derivatives Certification Examination

NISM Series V A: Mutual Fund Distributors Certification Examination

NISM-Series­V-B: Mutual Fund Foundation Certification Examination

NISM-Series-X-A: Investment Adviser (Level 1) Certification Examination

NISM-Series-X-B: Investment Adviser (Level 2) Certification Examination

NISM Series-XV: Research Analyst Certification Examination

If you want to apply for a job in the stock market , click here

#stockmarketjobs #sharemarketjobs #career

A Chemical Company which can make your portfolio shine

Falling wedge pattern

What is a Falling wedge pattern?

When the market makes lower lows and lower highs with a contracting range, a chart pattern arises. It suggests a possible reversal in the trend in the upward direction. That is called a Falling wedge pattern.

What are Technical Analysis Chart patterns?

A chart pattern is a shape within a price chart that helps to predict what prices will do next based on prior performance. Chart patterns are the foundation of technical analysis and necessitate a trader’s understanding of both what they are looking at and what they are looking for.

If you wanna learn about all the chart patterns for free, click here

Chemplast Sanmar Limited is a chemical firm based in India.[1] It is a leading producer of PVC resins, chlorochemicals, and pipe systems.

We recommend this stock at CMP 405, for multiple reasons. The stock has been taking a beating since its IPO listing. Fortunately, the company has been making only a profit, and it’s considered a bright addition to your portfolio.

If you know about support and resistance; you will learn, the stock is on its resistance after multiple attempts of Breaking out.

Stock Breaking out of its resistance in the chart above.

Now that you have seen it on the chart along side the Falling wedge pattern. Let’s look at the fundamental side of the Chemplasts Sanmar.

Profit & Loss

Consolidated Figures in Rs. Crores / View StandalonePRODUCT SEGMENTS

Mar 2019Mar 2020Mar 2021Mar 2022TTM
Sales +1,2541,2583,7995,8925,601
Expenses +9691,0113,1714,6954,884
Operating Profit2862476281,197717
OPM %23%20%17%20%13%
Other Income +12848457-23
Interest4895433322151
Depreciation5687131137149
Profit before tax19372547796395
Tax %39%36%25%18%
Net Profit11846410649338
EPS in Rs14.816.8830.5941.0321.38
Dividend Payout %0%0%0%0%
Compounded Sales Growth
10 Years:%
5 Years:%
3 Years:67%
TTM:3%
Compounded Profit Growth
10 Years:%
5 Years:%
3 Years:75%
TTM:-50%
Stock Price CAGR
10 Years:%
5 Years:%
3 Years:%
1 Year:-35%
Return on Equity
10 Years:%
5 Years:%
3 Years:12%
Last Year:50%
P&l of Chemplasts sanmar

Balance Sheet

Consolidated Figures in Rs. Crores / View StandaloneCORPORATE ACTIONS

Mar 2019Mar 2020Mar 2021Mar 2022Sep 2022
Share Capital +671,2741,2517979
Reserves2,4331,845-4171,6261,705
Borrowings +25382943882925
Other Liabilities +1,0492,1133,8933,0143,101
Total Liabilities3,8024,1084,4875,6015,810
Fixed Assets +2,1082,1743,1483,2593,211
CWIP1178253473
Investments1,1591,458000
Other Assets +4184671,3132,3082,525
Total Assets3,8024,1084,4875,6015,810
The balance sheet of Chemplasts sanmar

Conclusion

Now that you have seen the fundamentals and the technicals of this stock. You would see the price CMP 405 is a good price to add on. However, as a Disclaimer, we suggest you do your complete analysis before adding this stock. This is not buying financial advice, but instead merely for education purposes.

If you are new to this page, Don’t forget to check out our courses page.

To contact us, use this link.

#stockmarket #learningsharks #chemplastsanmar #fallingwedge #chartpatterns

Is it right to invest in Nestle? Buy, sell or Hold

share market articles

Checked by: Vijay Verma

NESTLE started doing business in India in 1912, importing and selling finished goods there. The business gradually increased its presence in India. Are you holding this stock?

The company has maintained its share capital and its continuous supply of FMCG made this stock a multi-bagger. If anybody had invested in this stock in 2010, this stock would have given 600% growth along with Dividends and bonuses.

Nestle CMP is Rs20338 as of Dec 13 which is almost its all-time high. Ideally is it not advised to make a new entry at this point of time? While looking at the NIFTY 50 CMP 18608 again at its all-time high suggesting the stocks would see resistance at this level.

Let’s look at the technical analysis of the stock.

Nestle stock price chart – Technical analysis

Looking at the technical analysis of the stock, the stock seems to be touching the upper band of the channel. Another entry can be taken somewhere around the support.

let’s look at the fundaments of this stock

Quarterly Results Figures in Rs. Crores

Sep 2019Dec 2019Mar 2020Jun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022
Sales +3,2163,1493,3253,0503,5423,4333,6113,4773,8833,7393,9814,0374,591
Expenses +2,4492,4552,5322,3032,6582,6562,6812,6292,9352,8743,0563,2173,580
Operating Profit7666947937488847779308489488669258191,011
OPM %24%22%24%25%25%23%26%24%24%23%23%20%22%
Other Income +564543383431302934-209211931
Interest32314141404254525244363737
Depreciation91949192919694959610610410298
Profit before tax700614704652786670812730834507806700906
Tax %15%23%25%25%25%28%26%26%26%24%26%26%26%
Net Profit595473525487587483602539617387595515668
EPS in Rs61.7449.0254.5050.4760.8950.1362.4655.8664.0340.1061.6853.4569.32
Raw PDF

Profit & Loss

Figures in Rs. Crores

Dec 2010Dec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021TTM
Sales +6,2557,5158,3359,1019,8558,1759,14110,01011,29212,36913,35014,70916,348
Expenses +5,0165,9906,5097,1537,8166,6207,2927,9138,6759,44310,14911,11812,727
Operating Profit1,2391,5251,8251,9482,0391,5551,8502,0972,6182,9263,2023,5923,620
OPM %20%20%22%21%21%19%20%21%23%24%24%24%22%
Other Income +3521319787-391140177259247146-116-138
Interest1527371439192112129164201153
Depreciation128153277330338347354342336370370390410
Profit before tax1,1451,3881,5531,6781,7748141,5451,8392,4292,6732,8132,8842,920
Tax %29%31%31%33%33%31%35%33%34%26%26%26%
Net Profit8199621,0681,1171,1855631,0011,2251,6071,9682,0822,1452,165
EPS in Rs84.9199.73110.76115.87122.8758.42103.86127.07166.67204.16215.98222.46224.55
Dividend Payout %57%49%44%42%51%83%61%68%69%168%93%90%

Balance Sheet

Figures in Rs. CroresCORPORATE ACTIONS

Dec 2010Dec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021Jun 2022
Share Capital +96969696969696969696969696
Reserves7591,1781,7022,2722,7412,7213,1863,3243,5771,8221,9231,9882,232
Borrowings +09711,0501,1892018333535189147266280
Other Liabilities +1,7032,1572,3152,7562,9633,2513,4953,9074,3795,0655,7335,8606,007
Total Liabilities2,5584,4025,1646,3145,8206,0866,8107,3638,0887,1737,9008,2108,616
Fixed Assets +1,0131,5763,2043,3693,1772,8982,7302,6162,4012,3412,1792,9943,054
CWIP3491,37234429524523118894105143639246197
Investments1511343658518121,3251,7561,9792,6581,7511,464774809
Other Assets +1,0461,3201,2511,7991,5861,6332,1362,6732,9242,9373,6184,1964,556
Total Assets2,5584,4025,1646,3145,8206,0866,8107,3638,0887,1737,9008,2108,616

Cash Flows

Figures in Rs. Crores

Dec 2010Dec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Cash from Operating Activity +1,0371,1581,6931,7961,6441,0981,4661,8182,0522,2952,4542,271
Cash from Investing Activity +-446-1,528-941-441-432-70-126-131-5283-321-1,957
Cash from Financing Activity +-544323-513-580-1,635-498-666-997-1,317-3,602-1,956-2,019
Net Cash Flow47-47239775-423529674691683-1,223177-1,704

Ratios

Figures in Rs. Crores

Dec 2010Dec 2011Dec 2012Dec 2013Dec 2014Dec 2015Dec 2016Dec 2017Dec 2018Dec 2019Dec 2020Dec 2021
Debtor Days464344434454
Inventory Days82898679821031079192107107111
Days Payable10692636871949199118124115122
Cash Conversion Cycle-2032814151220-5-22-14-3-7
Working Capital Days-51-14-11-17-13-21-10-15-21-19-21-15
ROCE %161%90%62%53%56%46%54%57%71%96%139%147%

Shareholding Pattern

Numbers in percentagesDEALS / TRADES

8 recently

Dec 2019Mar 2020Jun 2020Sep 2020Dec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022
Promoters +62.7662.7662.7662.7662.7662.7662.7662.7662.7662.7662.7662.76
FIIs +12.0711.8112.1011.5112.8412.2912.4312.3112.3512.0111.6512.05
DIIs +8.929.128.718.917.757.957.927.997.898.609.148.86
Government +0.070.070.070.000.000.000.000.000.000.000.000.00
Public +16.1816.2416.3616.8216.6516.9916.8816.9316.9916.6216.4516.33

Overall the company seems good to hold. However, It might take a healthy correction. If you wanna learn about the course check out our courses page.

#stockmarket #sharemarket #nestle

Update – 15-04-23

Current Market price is 19465

News and Events

Overview of News and Events

Basics of stock market

• Why invest?
• who regulates
• financial interdependence
• IPOs
• Stock Market returns
• Trading system

• Day end settlements
• Corporate actions
News and Events
• Getting started
• Rights, ofs,fpo and more
• Notes

 
 
learning sharks stock market institute

9.1 Overview

A market participant may find it insufficient to make decisions solely on the basis of company-specific information. Understanding the events that affect the markets is also crucial. Numerous external factors, such as economic and/or non-economic events, have a substantial impact on the performance of equities and markets as a whole.

We’ll attempt to comprehend some of these events in this chapter, as well as how the stock market responds to them.

Also, interdependent financial intermediaries work together to form the ecosystem that supports the financial markets. You can learn more about these financial intermediaries and the services they provide by reading this chapter.c

learning sharks stock market institute

9.2 – Monetary Policy

One of the most crucial financial intermediaries you should be aware of is the stockbroker.

Whereas stockbroker is a business that has registered with the stock exchange as a trading member and has a stockbroking license. They adhere to the rules established by SEBI.

Your entry point into stock exchanges is a stockbroker. To begin, you must open a “Trading Account” with a broker who satisfies your requirements. Your requirement might be as straightforward as the broker’s office’s proximity to your home. At the same time, finding a broker who can give you a single platform through which you can conduct business on numerous exchanges around the world can be challenging. We’ll go over what these requirements might be later on, as well as how to pick the best broker at this time. Firstly you can conduct financial transactions in the market using a trading account. A trading account is a brokerage account that enables the investor to buy and sell securities.

The Reserve Bank of India (RBI) uses monetary policy as a tool to manage the money supply by regulating interest rates. They adjust interest rates to achieve this. The RBI is the nation’s main bank. The central bank of every nation on earth is in charge of deciding on interest rates.

The RBI must strike a balance between growth and inflation when determining interest rates. Simply put, if interest rates are high, borrowing costs are also high (particularly for corporations). Corporations cannot expand if borrowing is difficult. If businesses don’t expand, the economy sputters.

 

On the other hand, borrowing is simpler when interest rates are low. This results in more money in the pockets of businesses and customers. With more money comes more spending, which causes retailers to raise prices, which causes inflation.

The RBI must carefully set a few key rates and take into account all the variables to achieve balance. Economic chaos can result from any inequity in these rates. The following are the important RBI rates that you should monitor:

Repo Rate: Banks can borrow money from the RBI whenever they need to. The repo rate is the interest rate at which the RBI lends money to other banks. The cost of borrowing is high when the repo rate is high, which causes the economy to grow slowly. In India, the repo rate is currently 8%. Markets disagree with the RBI’s decision to raise repo rates.

Reverse repo rate – The reverse repo rate refers to the interest rate at which the RBI borrows money from banks. Banks are happier to lend money to RBI than to a corporation because they are confident that RBI won’t default when they do so. However, the amount of money available in the banking system declines when banks decide to lend money to the RBI rather than a corporate entity. Reverse repo rate increases tighten the money supply, which is bad for the economy. Right now, the reverse repo rate is 7 percent.

Every bank must abide by the cash reserve ratio and maintain funds on deposit with the RBI (CRR). The CRR affects how much they keep in reserve. The economy suffers because more money is removed from circulation as CRR rises.

Every two months, the RBI meets to discuss rates. The market keeps an eye out for this important event. Interest-rate-sensitive stocks from a variety of industries, including banks, automobiles, housing finance, real estate, metals, etc., would be the first to respond to rate decisions.

9.3 – Inflation

Inflation is the term used to describe a steady increase in the average price of goods and services. The value of money decreases as inflation rises. If everything else is equal, inflation is to blame for the price increase if the price of 1 kg of onions went from Rs. 15 to Rs. 20. Although inflation is unavoidable, a high inflation rate is not preferred because it might cause economic unrest. A high inflation rate typically sends the markets the wrong message. Governments strive to bring inflation down to a manageable level. An index is typically used to calculate inflation. Inflation is rising if the index increases by a certain percentage point, and it is cooling off if the index decreases.

There are two types of inflation indices – The wholesale Price Index (WPI) and Consumer Price Index (CPI).

WPI, or the wholesale price index The wholesale price index, or WPI, tracks changes in wholesale prices. It tracks pricing fluctuations when commodities are exchanged between businesses rather than with actual clients. WPI is a straightforward and useful method of calculating inflation. However, it may not accurately reflect consumer inflation if institutional inflation is recorded here.

As I write this, the WPI inflation for May 2014 stands at 6.01%.

Consumer Price Index (CPI)– The CPI, on the other hand, captures the effect of the change in prices at a retail level. As a consumer, CPI inflation is what really matters. The calculation of CPI is quite detailed as it involves classifying consumption into various categories and subcategories across urban and rural regions. Each of these subcategories has its own index. This means the final CPI index is a composition of several internal indices.

The computation of CPI is quite rigorous and detailed. It is one of the most critical metrics for studying the economy.  A national statistical agency called the Ministry of Statistics and Programme Implementation (MOSPI) publishes the CPI numbers around the 2nd week of every month.

9.4 - Index of Industrial Production (IIP)

A short-term gauge of how the nation’s industrial sector is doing is the Index of Industrial Production (IIP). The Ministry of Statistics and Programme Implementation releases the information each month, along with data on inflation (MOSPI). The IIP, as its name suggests, measures production across all industrial sectors in India while maintaining a constant benchmark. India currently uses the reference period of 2004–2005. The base year is another name for the reference point.

The ministry receives production data from about 15 different industries, compiles it, and then publishes it as an index number. If the IIP is rising, this is a good sign for the economy and markets because it denotes a dynamic industrial environment (as production is rising).

To sum up, an upswing in industrial production is good for the economy, and a downswing rings an alarm. As India is getting more industrialized, the relative importance of the Index of Industrial Production is increasing.

The RBI is under pressure to lower interest rates if the IIP number drops. The following graph displays the percentage change in IIP over the previous year.

9.5-Purchasing Managers Index (PMI)

The purchasing managers’ index (PMI) is a measure of business activity used to assess the health of the nation’s manufacturing and service industries. This indicator is based on a poll, and the respondents, who are frequently buying managers, offer input on how their opinions of the company have evolved over the past month. Manufacturing and services each receive their survey. Using the survey’s data, a single index is produced. New orders, output, business expectations, and employment are typical survey topics.

 

An economic indicator called the purchasing managers’ index (PMI) aims to gauge business activity in both the country’s manufacturing and service sectors. This survey-based indicator captures how respondents—typically purchasing managers—perceived their company’s performance over the previous month. Each of the service and manufacturing industries are surveyed separately. The survey’s statistics are all compiled on one index. The survey frequently covers topics like new orders, output, business expectations, and employment.

 

Typically, the PMI value ranges from 50 to 60. Readings above 50 imply an economic expansion, while readings below 50 suggest a downturn. A result of 50 also indicates no change in the economy.

9.6 – Budget

The Ministry of Finance discusses the finances of the nation in depth during a budget. The Finance Minister delivers the budget on behalf of the ministry to the entire nation. The budget contains significant economic and policy announcements that have an impact on a range of market sectors and industries. Consequently, the budget is essential to the economy.

To further demonstrate this, consider that raising the taxes on cigarettes was one of the budget’s July 2014 expectations. . The Finance Minister increased the taxes on cigarettes during the budget, as was to be expected, which increased the price of cigarettes. A higher cigarette price has the following effects:

It goes without saying that this is debatable, but higher cigarette prices deter smokers from purchasing cigarettes, which lowers the profitability of cigarette manufacturing companies like ITC. Investors may want to sell shares of ITC if profitability declines.

Because ITC is an index heavyweight, the markets will decline if traders start selling ITC.

ITC traded 3.5 percent lower after the budget announcement for this specific reason.

 The budget is released every year during the last week of February. However, under some rare circumstances, such as the election of a new administration, the budget presentation may be postponed.

SIDHU MOOSE WALA STOCK MARKET PORTFOLIO

Sidhu moosewala portfolio in the stock market.

With the tragic ending, a hero who had left us. Sidhu moosewala was known for his bold attitude. He wasn’t just a singer, he was an icon to many. After his tragic death his fans got angry and shared their grief over tweets.

A lot of famous celebrities has shown their condolences. Sidhu Moosewala was better known by his stage name Sidhu Moose Wala. he was a politician and a congress supporter.

Word on the street is that Sidhu Moosewala was heavily invested in the stock market and was at a loss. He used to invest in the Indian stock market. Although, he was not a trader but an investor.

We tried to contact many people to confirm the news. However, this is not true. The word on the street is just a rumour. Sidhu moosewala was not invested in the stock market. Neither did he face any losses.

However, if you are interested in investing in the stock market. Do visit our website to learn more.

#sidhumoosewala #stockmarket #investing #news

Key to BUDGET DOCUMENTS

BUDGET 2021-2022

  1. The list of Budget documents presented to the Parliament, besides the Finance Minister’s
    Budget Speech, is given below:
    A. Annual Financial Statement (AFS)
    B. Demands for Grants (DG)
    C. Finance Bill
    D. Statements mandated under FRBM Act:
    i. Macro-Economic Framework Statement
    ii. Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement
    E. Expenditure Budget
    F. Receipt Budget
    G. Expenditure Profile
    H. Budget at a Glance
    I. Memorandum Explaining the Provisions in the Finance Bill
    J. Output Outcome Monitoring Framework
    K. Key Features of Budget 2021-22
    L. Implementation of Budget Announcements,2020-2021

The documents shown at Serial Nos. A, B, and C are mandated by Art. 112,113 and 110(a)
of the Constitution of India respectively, while the documents at Serial No. D(i) and (ii) are
presented as per the provisions of the Fiscal Responsibility and Budget Management Act,

  1. Other documents at Serial Nos. E, F, G, H, I, J, K and L are in the nature of explanatory
    statements supporting the mandated documents with narrative in a user-friendly format suited
    for quick or contextual references. The “Output Outcome Monitoring Framework” will have
    clearly defined outputs and outcomes for various Central Sector Schemes and Centrally
    Sponsored Schemes with measurable indicators against them and specific targets for FY
    2021-22. Hindi version of all these documents is also presented to the Parliament. The Budget
    documents can be accessed at http://indiabudget.gov.in.
    2.1 A brief description of the Budget documents listed above is as follows:
    A. Annual Financial Statement (AFS)
    The Annual Financial Statement (AFS), the document as provided under Article 112, shows
    the estimated receipts and expenditure of the Government of India for 2021-22 in relation to

estimates for 2020-21 as also actual expenditure for the year 2019-20. The receipts and
disbursements are shown under three parts in which Government Accounts are kept viz.,

(i) The Consolidated Fund of India,

(ii) The Contingency Fund of India and

iii) The Public Account of India.

The Annual Financial Statement distinguishes the expenditure on revenue
account from the expenditure on other accounts, as is mandated in the Constitution of India.
The Revenue and the Capital sections together, make the Union Budget. The estimates of
receipts and expenditure included in the Annual Financial Statement are for expenditure net
of refunds and recoveries.
The significance of the Consolidated Fund, the Contingency Fund and the Public Account
as well as the distinguishing features of the Revenue and the Capital portions are given below
briefly:

(i) The Consolidated Fund of India (CFI) draws its existence from Article 266 of the
Constitution. All revenues received by the Government, loans raised by it, and also
receipts from recoveries of loans granted by it, together form the Consolidated Fund of
India. All expenditure of the Government is incurred from the Consolidated Fund of
India and no amount can be drawn from the Consolidated Fund without due authorization
from the Parliament.


(ii) Article 267 of the Constitution authorises the existence of a Contingency Fund of India
which is an imprest placed at the disposal of the President of India to facilitate meeting
of urgent unforeseen expenditure by the Government pending authorization from the
Parliament. Parliamentary approval for such unforeseen expenditure is obtained, expost-facto, and an equivalent amount is drawn from the Consolidated Fund to recoup
the Contingency Fund after such ex-post-facto approval. The corpus of the Contingency
Fund as authorized by Parliament presently stands at `500 crore.


(iii) Moneys held by Government in trust are kept in the Public Account. The Public Account
draws its existence from Article 266 of the Constitution of India. Provident Funds, Small
Savings collections, income of Government set apart for expenditure on specific objects
such as road development, primary education, other Reserve/Special Funds etc., are
examples of moneys kept in the Public Account. Public Account funds that do not
belong to the Government and have to be finally paid back to the persons and authorities,
who deposited them, do not require Parliamentary authorisation for withdrawals. The
approval of the Parliament is obtained when amounts are withdrawn from the
Consolidated Fund and kept in the Public Account for expenditure on specific objects.
The actual expenditure on the specific object is again submitted for vote of the Parliament
for withdrawal from the Public Account for incurring expenditure on the specific objects.
The Union Budget can be demarcated into the part pertaining to revenue which is for
ease of reference termed as Revenue Budget in (iv) below and the part pertaining to
Capital which is for ease of reference termed as Capital Budget in (v) below.

(iv) The Revenue Budget consists of the revenue receipts of the Government (Tax revenues
and other Non-Tax revenues) and the expenditure met from these revenues. Tax
revenues comprise proceeds of taxes and other duties levied by the Union. The
estimates of revenue receipts shown in the Annual Financial Statement take into account
the effect of various taxation proposals made in the Finance Bill. Other non-tax receipts
of the Government mainly consist of interest and dividend on investments made by the

Government, fees and other receipts for services rendered by the Government. Revenue
expenditure is for the normal running of Government departments and for rendering of
various services, making interest payments on debt, meeting subsidies, grants in aid,
etc. Broadly, the expenditure which does not result in creation of assets for the
Government of India, is treated as revenue expenditure. All grants given to the State
Governments/Union Territories and other parties are also treated as revenue expenditure
even though some of the grants may be used for creation of capital assets.
(v) Capital receipts and capital payments together constitute the Capital Budget. The capital
receipts are loans raised by the Government from the public (these are termed as
market loans), borrowings by the Government from the Reserve Bank of India and
other parties through the sale of Treasury Bills, the loans received from foreign
Governments and bodies, disinvestment receipts and recoveries of loans from State
and Union Territory Governments and other parties. Capital payments consist of capital
expenditure on acquisition of assets like land, buildings, machinery, equipment, as
also investments in shares, etc., and loans and advances granted by the Central
Government to the State and the Union Territory Governments, Government companies,
Corporations and other parties.
(vi) Accounting Classification
• The estimates of receipts and disbursements in the Annual Financial Statement and
of expenditure in the Demands for Grants are shown according to the accounting
classification referred to under Article 150 of the Constitution.
• The Annual Financial Statement shows, certain disbursements distinctly, which are
charged on the Consolidated Fund of India. The Constitution of India mandates that
such items of expenditure such as emoluments of the President, salaries and
allowances of the Chairman and the Deputy Chairman of the Rajya Sabha and the
Speaker and the Deputy Speaker of the Lok Sabha, salaries, allowances and pensions
of the Judges of the Supreme Court, the Comptroller and Auditor-General of India
and the Central Vigilance Commission, interest on and repayment of loans raised
by the Government and payments made to satisfy decrees of courts etc., may be
charged on the Consolidated Fund of India and are not required to be voted by the
Lok Sabha.


B. Demands for Grants


(i) Article 113 of the Constitution mandates that the estimates of expenditure from the
Consolidated Fund of India included in the Annual Financial Statement and required to
be voted by the Lok Sabha, be submitted in the form of Demands for Grants. The
Demands for Grants are presented to the Lok Sabha along with the Annual Financial
Statement. Generally, one Demand for Grant is presented in respect of each Ministry
or Department. However, more than one Demand may be presented for a Ministry or
Department depending on the nature of expenditure. With regard to Union Territories
without Legislature, a separate Demand is presented for each of such Union Territories.
In Budget 2021-22 there are 101 Demands for Grants. Each Demand initially gives
separately the totals of

(i) ‘voted’ and ‘charged’ expenditure;

(ii) the ‘revenue’ and the
‘capital’ expenditure and

(iii) the grand total on gross basis of the amount of expenditure

for which the Demand is presented.

This is followed by the estimates of expenditure under different major heads of account.

The amounts of recoveries are also shown.
The net amount of expenditure after reducing the recoveries from the gross amount is
also shown. A summary of Demands for Grants is given at the beginning of this
document, while details of ‘New Service’ or ‘New Instrument of Service’ such as,
formation of a new company, undertaking or a new scheme, etc., if any, are indicated at
the end of the document.


(ii) Each Demand normally includes the total provisions required for a service, that is,
provisions on account of revenue expenditure, capital expenditure, grants to State and
Union Territory Governments and also loans and advances relating to the service.
Where the provision for a service is entirely for expenditure charged on the Consolidated
Fund of India, for example, interest payments (Demand for Grant No. 37), a separate
Appropriation, as distinct from a Demand, is presented for that expenditure and it is not
required to be voted by the Lok Sabha.

Where, however, expenditure on a service includes both ‘voted’ and ‘charged’ items of

expenditure, the latter are also included in the Demand presented for that service

but the ‘voted’ and ‘charged’ provisions are shown separately in that Demand.

C. Finance Bill
At the time of presentation of the Annual Financial Statement before the Parliament, a
Finance Bill is also presented in fulfilment of the requirement of Article 110 (1)(a) of the
Constitution, detailing the imposition, abolition, remission, alteration or regulation of taxes
proposed in the Budget. It also contains other provisions relating to Budget that could be
classified as Money Bill. A Finance Bill is a Money Bill as defined in Article 110 of the Constitution.

D. Statements mandated under FRBM Act.
i. Macro-Economic Framework Statement
The Macro-Economic Framework Statement is presented to Parliament under Section 3
of the Fiscal Responsibility and Budget Management Act, 2003 and the rules made thereunder.
It contains an assessment of the growth prospects of the economy along with the statement of
specific underlying assumptions. It also contains an assessment regarding the GDP growth
rate, the domestic economy and the stability of the external sector of the economy, fiscal
balance of the Central Government and the external sector balance of the economy.

ii. Medium-Term Fiscal Policy cum Fiscal Policy Strategy Statement
The Medium-Term Fiscal Policy Statement cum Fiscal Policy Strategy Statement is
presented to Parliament under Section 3 of the Fiscal Responsibility and Budget Management
Act, 2003. It sets out the three-year rolling targets for six specific fiscal indicators in relation to
GDP at market prices, namely (i) Fiscal Deficit, (ii) Revenue Deficit, (iii) Primary Deficit (iv)
Tax Revenue (v) Non-tax Revenue and (vi) Central Government Debt. The Statement includes
the underlying assumptions, an assessment of the balance between revenue receipts and
revenue expenditure and the use of capital receipts including market borrowings for the creation
of productive assets. It also outlines for the existing financial year, the strategic priorities of
the Government relating to taxation, expenditure, lending and investments, administered pricing,
borrowings and guarantees. The Statement explains how the current fiscal policies are in

conformity with sound fiscal management principles and gives the rationale for any major
deviation in key fiscal measures.

2.2 Explanatory Documents:
To facilitate a more comprehensive understanding of the major features of the Budget,
certain other explanatory documents are presented. These are briefly summarized below:

E. Expenditure Budget
The provisions made for a scheme or a programme may be spread over a number of
Major Heads in the Revenue and Capital sections in a Demand for Grants. In the Expenditure
Budget, the estimates made for a scheme/programme are brought together and shown on a
net basis on Revenue and Capital basis at one place. Expenditure of individual Ministries/
Departments are classified under 2 broad Umbrellas (i)Centres’ Expenditures and (ii) Transfers
to States/ Union Territories( UTs). Under the Umbrella of Centres’ Expenditure there are 3
sub-classification (a) Establishment expenditure of the Centre (b) Central Sector Schemes
and (c) Other Central Expenditure including those on Central Public Sector Enterprises(CPSEs)
and Autonomous Bodies.
The Umbrella of Transfers to States/UTs includes the following 3 sub- classification:

(a) Centrally Sponsored Scheme
(b) Finance Commission Transfers
(c) Other Transfer to States
To understand the objectives underlying the expenditure proposed for various schemes
and programmes in the Expenditure Budget, suitable explanatory notes are included in this
volume.

F. Receipt Budget
Estimates of receipts included in the Annual Financial Statement are further analysed in
the document “Receipt Budget”. The document provides details of tax and non-tax revenue
receipts and capital receipts and explains the estimates. The document also provides a
statement on the arrears of tax revenues and non-tax revenues, as mandated under the
Fiscal Responsibility and Budget Management Rules, 2004. Trend of receipts and expenditure
along with deficit indicators, statement pertaining to National Small Savings Fund (NSSF),
Statement of Liabilities, Statement of Guarantees given by the government, statements of
Assets and details of External Assistance are also included in Receipts Budget. This also
includes the Statement of Revenue Impact of Tax Incentives under the Central Tax System
which seeks to list the revenue impact of tax incentives that are proposed by the Central
Government. This document also shows liabilities of the Government on account of securities
(bonds) issued in lieu of oil and fertilizer subsidies in the past. This was earlier called ‘Statement
of Revenue Foregone’ and brought out as a separate statement in 2015-16. This has been
merged in the Receipts Budget from 2016-17 onwards.
G Expenditure Profile

(i) This document was earlier titled Expenditure Budget – Vol-I. It has been recast in line
with the decision on Plan-Non Plan merger. It gives an aggregation of various types of

expenditure and certain other items across demands.
(ii) Under the present accounting and budgetary procedures, certain classes of receipts,
such as payments made by one Department to another and receipts of capital projects
or schemes, are taken in reduction of the expenditure of the receiving Department.
While the estimates of expenditure included in the Demands for Grants are for the
gross amounts, the estimates of expenditure included in the Annual Financial Statement
are for the net expenditure, after taking into account the recoveries. The document
makes certain other refinements such as netting expenditure of related receipts so
that overstatement of receipts and expenditure figures is avoided. The document
contains statements indicating major variations between BE 2020-21 and RE 2020-21
as well as between RE 2020-21 and BE 2021-22 with brief reasons. Contributions to
International bodies and estimated strength of establishment of various Government
Departments and provision thereof are shown in separate Statements. A statement
each, showing (i) Gender Budgeting (ii) Schemes for Development of Scheduled Castes
and Scheduled Tribes including Scheduled Caste Sub Scheme (SCSS) and Tribal
Sub Scheme (TSS) allocations and (iii) Schemes for the Welfare of Children are also
included in this document. It also has statements on (i) the expenditure details and
budget estimates regarding Autonomous Bodies and (ii) the details of certain important
funds in the Public Account.

(iii) Scheme Expenditure

Scheme expenditure forms a sizeable proportion of the total expenditure of the Central
Government. The Demands for Grants of the various Ministries show the Scheme expenditure
under the two categories of Centrally Sponsored Schemes and Central Sector Schemes
separately. The Expenditure Profile also gives the total provisions for each of the Ministries
arranged under the various categories- Centrally Sponsored Schemes, Central Sector
Schemes, Establishment, Other Central Expenditure, Transfer to States etc. and highlights
the budget provisions for certain important programmes and schemes. Statements showing
externally aided projects are also included in the document.

(iv) Public Sector Enterprises

A detailed report on the working of public sector enterprises is given in the document titled
‘Public Enterprises Survey’ brought out separately by the Department of Public Enterprises. A
report on the working of the enterprises under the control of various administrative Ministries
is also given in the Annual Reports of the various Ministries circulated to the Members of
Parliament separately. The annual reports along with the audited accounts of each of the
Government companies are also separately laid before the Parliament. Besides, the reports
of the Comptroller and Auditor General of India on the working of various Public Sector
Enterprises, are also laid before Parliament.

(v) Commercial Departments

Railways is the principal departmentally-run commercial undertaking of Government. The
Budget of the Ministry of Railways and the Demands for Grants relating to Railway expenditure
are presented to the Parliament together with the Union Budget from the financial year 2017-
18 onwards. The Expenditure Profile has a separate section on Railways to capture all the
salient aspects of the demand for grants of Railways and other details of interest regarding

Railways. The total receipts and expenditure of the Railways are, incorporated in the Annual
Financial Statement of the Government of India. Details of other commercially run departmental
undertakings are also shown in a statement. Expenditure is depicted in the Expenditure Profile
and Expenditure Budget, net of receipts of the Departmental Commercial Undertakings, in
order to avoid overstatement of both receipts and expenditure.

(vi) The receipts and expenditure of the Ministry of Defence Demands shown in the Annual
Financial Statement, are explained in greater detail in the document Defence Services
Estimates presented with the Detailed Demands for Grants of the Ministry of Defence.

(vii)The details of grants given to bodies other than State and Union Territory Governments
are given in the statements of Grants-in-aid paid to non-Government bodies appended
to Detailed Demands for Grants of the various Ministries.
H. Budget at a Glance

(i) This document shows in brief, receipts and disbursements along with broad details of
tax revenues and other receipts. This document provides details of resources transferred
by the Central Government to State and Union Territory Governments. This document
also shows the revenue deficit, the gross primary deficit and the gross fiscal deficit of
the Central Government. The excess of Government’s revenue expenditure over
revenue receipts constitutes revenue deficit of Government. The difference between
the total expenditure of Government by way of revenue, capital and loans net of
repayments on the one hand and revenue receipts of Government and capital receipts
which are not in the nature of borrowing but which accrue to Government on the other,
constitutes gross fiscal deficit. Gross primary deficit is gross fiscal deficit reduced by
the gross interest payments. In the Budget documents ‘gross fiscal deficit’ and ‘gross
primary deficit’ have been referred to in abbreviated form ‘fiscal deficit’ and ‘primary
deficit’, respectively.

(ii) The document also includes a statement indicating the quantum and nature (share in
Central Taxes, grants/loan) of the total Resources transferred to States and Union
Territory Governments. Details of these transfers by way of share of taxes, grants-inaid and loans are given in Expenditure Profile (Statement No.18). Bulk of grants and
loans to States are disbursed by the Ministry of Finance and are included in the Demand
‘Transfers to States’ and in the Demand ‘Transfer to Delhi’ and Transfer to Puducherry’.
The grants and loans released to States and Union Territories by other Ministries/
Departments are reflected in their respective Demands.
The Budget of the Central Government is not merely a statement of receipts and expenditure.
Since Independence, it has become a significant statement of government policy. The Budget
reflects and shapes, and is, in turn, shaped by the country’s economy. For a better appreciation
of the impact of government receipts and expenditure on the other sectors of the economy, it
is necessary to group them in terms of certain economic magnitudes, for example, how much
is set aside for capital formation, how much is spent directly by the Government and how
much is transferred by Government to other sectors of the economy by way of grants, loans,
etc. This analysis is contained in the Economic and Functional Classification of the Central
Government Budget which is brought out by the Ministry of Finance separately.

I. Memorandum Explaining the Provisions in the Finance Bill

To facilitate understanding of the taxation proposals contained in the finance Bill, the provisions
and their implications are explained in the document titled Memorandum Explaining the
Provisions in the Finance Bill.

J. Output Outcome Monitoring Framework

Outcome Budget with Output-Outcome Monitoring Framework(OOMF) for Central Sector
Schemes(CSs) and Centrally Sponsored Schemes(CSSs) with financial outlay of `500 crore
each, the output-outcome monitoring framework with itemized expenditure of the schemes
will be prepared by the respective Ministry/Department and the same will be presented in the
Parliament along with the Detailed Demand for Grants(DDG).

K. Key Features of Budget 2021-22

The Document is a snapshot summary of the economic vision of the Government and the
major policy initiatives in the thrust areas of the economy for growth and welfare. Major
milestones achieved in fiscal consolidation and management of the Government finances
along with a bird’s eye view of the key budget proposals for the fiscal year 2021-22 are
also included in the document.

L. Implementation of Budget Announcements 2020-21
The Document summarises the status of implementation of the announcements made by
Hon’ble Finance Minister in the Budget Speech 2020-21.