Hi Friends,

Even as I launch this today ( my 80th Birthday ), I realize that there is yet so much to say and do. There is just no time to look back, no time to wonder,"Will anyone read these pages?"

With regards,
Hemen Parekh
27 June 2013

Now as I approach my 90th birthday ( 27 June 2023 ) , I invite you to visit my Digital Avatar ( www.hemenparekh.ai ) – and continue chatting with me , even when I am no more here physically

Sunday, 19 August 2018

WHY BUY WHEN YOU CAN LEASE ?


EESL :  Put it off indefinitely !

---------------------------------


Business Line ( 18 Aug ) carries following news :


Highlights :


·      In Jan 2018 , its paid up capital was Rs 460 cr

·      Revenue : Rs 1200 cr in 2016-17  /  Rs 1400 cr in 2017-18


·      Revenue target :  Rs 3000 cr in 2018-19

·      Capital Expenditure proposed for 2018-19  :  Rs 6,000 cr


·      Amount to be raised through DEBT  :  Rs 4,800 cr ( 80 % of Rs 6,000 cr )

·      Comprising : Domestic Borrowing of Rs 2,000 cr / Rs 2,000 cr of Bonds



I suppose , EESL needs that Rs 6,000 cr of Capital Expenditure to “ BUY “ , those ELECTRIC CARS ( each priced at Rs 11 lakhs ) from TATA and M&M


But , if it were to “ LEASE “ those cars ( from TATA / M&M ) , instead of “ BUYING “ , then I suppose EESL would NOT need that CAPITAL EXPENDITURE !


If anything , it might have a monthly “ LEASE INCOME “ ( through sub-leasing of those cars to various Govt Depts ) which would be far in excess of the “ LEASE RENT “ that it would pay to TATA / M&M  !


A positive “ Working Capital “  !


I , once again urge Shri Saurabh Kumarji , to go through my suggestions in following emails :


EESL : Grab this chance !  [  01  Aug  2018  ]

You may be able to :

·      Avoid market borrowing of Rs 4800 cr at 12 % interest

·      Service additional Equity


·      Avoid IPO

19  Aug  2018









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