The Cash Flow Statement is one of the three most important financial statements of a company.
The other two being P&L Statement and the Balance Sheet.
Balance Sheet shows us the assets and liabilities of the company and is very important to look at when analyzing cash flows.
Cash position of a company has an inverse relation with Assets and a direct relation with Liabilities.
For e.g., you BURN cash to acquire an Asset. So when Assets increase, the cash position DECREASES.
On the corollary, an increase in Liabilities INCREASES the cash position.
Many investors don't understand this relationship.
Hence, a fresh debt issue - which is a liability, and not positive for the financial health of the company - actually increases the cash flow on the cash flow statement!
Hindenburg Research is a firm that looks for highly leveraged, absurdly valued companies that may undergo a price correction (or even a collapse) in the future.
They’re named after the Hindenburg airship, that went down in flames on 6 May, 1937.
First, let's understand why RBI intervenes to defend the rupee in the first place.
A weak currency worsens our fiscal deficit, fuels inflation and slows down international trade.
Clearly, RBI has a mandate to improve the situation on behalf of the GoI and the citizens of India.
Forex market is highly volatile and a breeding ground for speculators. This is why the FX market is the most liquid in the world with around $7.5 trillion (with a T!) in daily turnover.
So, RBI has to control speculation in the USDINR segment to ensure stability of the Rupee.