Sunday 26 July 2020

Trading is a good idea, but trading with caution is the BEST. Don't fall prey to easy money!

The domestic equity market continued its euphoric rally with less participation from the broader indices. The bench mark indices have rallied close to 45% from the March’20 levels.



It is observed that the percentage of shares moving in tandem with Nifty50 is far lower than what it was witnessed in previous few weeks. Early June quarter results are being cheered, but a good part of Q1 outcome is yet to come and that may not portray a promising picture.

IT, FMCG and financial services, including banks, have given an early indication that all is well! 
  • IT companies managed to trim their operating costs, 
  • Banking businesses were given leeway by RBI for delay in NPA classification, 
  • Financial services witnessed people staying indoors, transacting digitally to procure insurance policies for their loved ones, along with a lot of trading and investing,
But this may not continue for long.
When ground reality catches up and life after Covid-19 becomes the new normal, the exceptional gains that are being cheered by the Street currently will lose sheen. Markets have a habit of overreacting to short-term events and that is why it would be prudent to avoid consensus views on the Street that IT, FMCG, financial services, including banks, will perform better in the near to medium term. After the country has unlocked the cases are rising every day and the businesses are not operating up to full capacities leaving everyone in tantrums.

Book profits or at least avoid them.

RBI has also cautioned retail investors to wait and watch the situations and not to become anxious on the stock markets.

It is better to keep in mind the 1992- Harshad Mehta Scam and be mindful on the company shares one is buying.


It is always prudent to make an informed decision rather than blindly following other people.
For a novice trader it is advisable to learn the various techniques like-
  • Technical Analysis
  • Fundamental Analysis and then start trading.
In the end I want to conclude that, becoming rich overnight is the riskiest thing and there are very very less chances of succeeding. 
Don’t run behind money, but master the trade money will automatically come to you.
People can get in touch with me in LinkedIN, Facebook, Instagram

PK,
PK Enterprises.

Sunday 19 July 2020

The story behind our #AllTerrainVehicle. #ATV

We were 6 friends (Myself, Chaithanya, Anirudh, Karthik, Kalyan, Mallikarjun) we were into mechanical engineering wanted to build something practical for our final year project
Most of our batch mates have decided to do some IT projects from local institutes on the design front which were theoretical in nature and would not be of any use later on. But we wanted to be different from everyone.
We had 3-4 ideas on what to build-
  • Electric bike
  • Battery bike
  • Electric auto
  • All-Terrain Vehicle(ATV)

We had zeroed on the All-Terrain Vehicle as it had many challenges and overall we would get a good practical knowledge on automobiles. The specialty of an ATV is that it runs on any type of terrain. We wanted the below points in our ATV-
  • It should be for 2 people
  • It shouldn’t look like a very big monster but sweet and small just like a battery car
ATV: Designed to travel on all types of ground, including rough grounds

Research:
From the 1st semester of our 4th year we started our research on building an ATV. We went to many colleges, universities, contacted a number students, professors to gain practical knowledge before starting our project. 
One such encounter was when we met the students of Maturi Venkata Subba Rao (MVSR) Engineering College. It is one of the famous engineering colleges in Hyderabad. The students in MVSR had made an ATV with the support of their college in about 10-12 months. 
We neither had time nor the support but we had only 2 months of time in our hands to complete the ATV. The students of MVSR college had challenged us that it is a near impossible task but we turned the odds and built an ATV in less than 2 months.
Therefore after getting some knowledge on what we wanted and where to start, we started building our ATV on 13th Feb 2012.

The steps which were important in building our ATV-
  • Design:
The design part was always the critical one. We did a lot of online research, contacted many car servicing centers, old school mechanics on how to design our ATV. The things we had in our minds was-
  • Ground Clearance should be high
  • The price of building it should also be minimal and in later stages when used for commercial purposes it should be affordable
After contacting many people, garages there came up a person (a retired mechanic) who was interested in our project and wanted to help us. We told him our idea and he helped us in the designing and also the dimensions of the ATV
The whole design took a good 15-20 days of time.
  • Purchases:
Material purchase was a very tedious task. We had to negotiate with all the vendors who sold the automobile parts. Afzalgunj is the biggest automobile market in Hyderabad. We got all the spare parts from Afzalgunj. 
  • Engine
Before going for a Royal Enfield engine we searched online for engines for close to a week. Earlier in our research we found out that we can purchase engines online and assemble it with our body. But we found out that our assumption was wrong as the dimensions, engine efficiency and other things were not in line with our requirements. Then we got it in touch with a garage owner and told him about our ATV. He gave us an idea to use the Royal Enfield Engine.
Why did we go for Royal Enfield Engine?
The Royal Enfield Classic 350cc is powered by a 346cc, single-cylinder air-cooled engine that makes 19.8bhp and 28Nm of peak torque. These specifications are in line with what we wanted and on top of that Royal Enfield Engines are heavy duty, reliable and cost effective (with the specifications we wanted)
We went to Ranigunj for the Royal Enfield engine. That is a place where we get to repair the Enfield bikes and it is a famous place throughout the city of Hyderabad. We didn’t find what we wanted. 
Then we went to Nallakunta, the garage owner told us that he will get us an engine. We waited for 3-4 days but still couldn’t get one.
Finally we bought a seconds Royal Enfield Classic- 350cc bike in Afzalgunj and dismantled the whole bike and took its engine.
We wasted a lot of time while getting the engine but yes, we learnt a lot of things from that wasted time!
  • Material for outer body, chassis:
We purchased steel, iron, aluminum at least prices from the market. We learnt negotiation skills from here.
  • Tyres:
We had to change the tyres 4 times as we used to purchase heavier tyres each time and the steering system would completely break if the tyres were so heavy. First we purchased Auto Tyres then changed it to Maruti-800 then to Tractor Tyres and then finally we got what we wanted. The tyres were bigger than Maruti-800 but smaller than Tractor!
Each time we changed the tyres we had to change the discs on which we had to mount the tyres.
  • Steering System:
We used the rack and pinion steering system. In this the steering wheel turns the pinion gear; the pinion moves the rack, which is a linear gear that meshes with the pinion, converting circular motion into linear motion along the transverse axis of the ATV (side to side motion).
We chose rack and pinion as it reduces the steering effort required to turn the wheels and the steering ratio of the vehicle is also decreased considerably. 
The steering system was broken 2-3 times, due to excess weight of the wheels. We again had aligned it by welding and all other sorts of things which was a very tedious job.
  • Braking System:
We used the Forced Oil Braking System. The rotating members of the ATV such as wheels are stopped with the engagement of brake calipers which are cooled by oil forced by a master cylinder.
The braking system also failed twice before the final one was in place
  • Suspension System:
As an ATV will be driven on all terrains i.e., both on road and off roads, suspension system plays a very critical role.  Therefore we used the best suspension systems as the vehicle encounters many shocks, vibrations. Suspension Systems used-
  • Front Independent Suspension System(i.e., independent suspension for each wheel)
  • Rear Rigid Suspension System

  • Other spare parts:
Seats, Batteries, Horn, Indicators, Fuel Tank, CNG cylinder, Cables etc.,
  • Built:
Once the design was finalized and purchases were made then came the toughest part, THE BUILDING of the ATV. We found an old used car garage near to Amberpet and started building the ATV. 
The first iteration of the chassis and the body was built in 4 days and we had to put in almost 16-18 hours per day for it to be done. The owner of the garage gave us a professional welder, cutter. They helped us a lot in building the ATV.
We were not satisfied with the first structure and dismantled the whole and started from scratch. The second iteration took about 3 days and this time we had to dismantle it as we had a change the suspension system. 
The third time we were happy with the built of the chassis as the outcome was according to the dimensions and our plan.
During this time we had differences between us as there was wastage of money, time and the pressure was building as the deadline was nearing. We sat together, ironed out the differences and again motivated ourselves to build the best ATV available in town.
  • CNG(Compressed Natural Gas):
2/3rds of the ATV was completed and still we want to improvise on it. We thought of many different things but none was feasible and affordable. Then came the thought of why can’t we use CNG to run the ATV. 
CNG is-
  • Affordable
  • Fewer emissions than gasoline(petrol, diesel)
  • Safer than Petrol
Therefore once we knew its advantages we wanted to run the engine with the CNG. Again we searched online for the CNG distributers in Hyderabad. We found one guy near to Secunderabad who is a big dealer in CNG for automobiles but he asked us a big amount of advance and we couldn’t afford that. 
We didn’t give up and searched for a week then we finally got a guy who is near to 6No. He was reasonable and he helped us a lot in aligning the CNG cylinder to the ATV engine.
We knew where to place the petrol tank but we didn’t have the idea on how to connect the CNG practically.
But by the end of the project we had a very clear idea on how to power the engine with a CNG cylinder.
  • The Final Hurdle:
The ATV has been completed and then by the time we had to start it, it was not starting. We had to turn on the keys or kick start the engine. Neither of them was working. We almost tried for 4 hours to start it. The Petrol Tank was full as well as the CNG cylinder. We didn’t have a single clue on where we went wrong. 
We thought all our dreams, hard work was shattered and we didn’t know what to do. The team fell apart and nobody had interest to take it further.
Then I and Chaithanya took the task to our chin and we found out a guy named Surya who helped us to start the ATV again. He was a bike mechanic and was very much interested in automobiles. 
In the last one week of our completion I used to wake up around 5 in the morning travel for around 50kms pickup Surya take him to our ATV so that he can do some modifications for it to get started.
After some slight modifications and getting to know the exact problem, we got the ATV up and running in 4-5 days.
As promised we completed the ATV in the scheduled time and we displayed it in our college on April 11th 2012.
  • Gains from the Project: 
On a personal front, I knew we spent a bit of extra money but I’ve learnt a lot of new things-
  • Negotiations
  • Determination
  • Handling the pressure
  • Pushing myself and not to give up!


Aftermath:
Many newspapers, TV channels have interviewed us on how we could build the ATV within 2 months of time with no prior experience. 
The sweetest point was Mahindra & Mahindra has asked us the patent rights for our ATV but till that time we were in different directions and didn’t file the patent. But all in all this was a game changing project of our lives.!
All the ideas, implementations we got were from the layman and not from big brands or online journals. At the end we understood that, if we are determined to do a particular work, the universe will conspire and help us to complete the job, only if we don’t give up!
The ATV is still in our college and the college management keeps it as a jewel in their crown!
For more information,
People can get in touch with me in LinkedIN, Facebook, Instagram

PK,
PK Enterprises.

Saturday 18 July 2020

“To get Game-Changing results, start focusing on Game-Changing thoughts.” Connect with PK Enterprises for more details

PK Enterprises was started with the aim of supporting the startups and enterprises in their respective domains. 

Market Development:
PK Enterprises helps companies to reach their full potential in their core business and pursue adjacencies that strengthen the core .Whether you want to grow your business in the existing market or planning to expand your business to new ones. We help our clients to grow by providing suitable strategy for their business. 

What we do?
Build a bridge from strategy to results
Make and execute decisions faster than your competitors
Define your long term talent needs

Operations Consulting:
It is important for a business to drive customer engagement with improving quality and efficiency and transforming your operations, products and services. In Operations consulting we deliver authentic results for our clients no matter how challenging the conditions they face

What we do?
Asset Life cycle management
Operating Transformational Model
Customer Experience Transformation
Operational Excellence
Procurement and Supply chain Management
Product development and Innovation
Technology support

Business Consulting:
Entrepreneurs are risk takers and niche finders! They see, grab opportunities every time and implement new ideas, new processes and new technology for the business growth. They are not afraid to venture out, make mistakes and take responsibilities for those mistakes. 
If you have an idea or a dream and want to see it develop or materialize into a business, we can help. Let us help you start and operate your business today.

What we do?
Start-Up Consulting
Business Feasibility Study
Business Plan Development
Marketing Plan Development
Location Consulting
Licenses & Permits
Web Development & Technology Solutions

Digital Marketing Consulting:
At PK Enterprises, we’ve been helping businesses grow online – so we know the niche and how to build success in digital marketing. Some of our clients “hands-on” approach, opting to execute the steps themselves or with their internal marketing teams, but they still want direction from our experts.

SEO & Digital Marketing
Increase Visibility, Increase Rankings, Increase Visitors, Increase Revenue.
A collaboration created with your needs in FOCUS
A simple way to deal with the complex road of online expansion.
Success comes as a result of a carefully planned strategy
Combining a creative approach and demonstrated Expertise.

Additionally PK Enterprises also provides assistance for the laundry businesses in the Conceptualization, Facility Planning, Operations and Laundry planning services by using emerging technologies
The various types of services that we offer are-
Market Development
Business Consulting
Technology Support
Business operations
Digital Marketing
Technology Support
Laundry Planning Consulting

Commercial Laundry Planning:
PK Enterprises provides expertise and support in all functions, either within an existing Laundry plant or with in setting up a new laundry plant or selling your laundry plant. Our services include everything from initializing the plan to design, construction and operation, to the final training of client staff
Additionally, we help many clients today in expanding their operations, while others require assistance with consolidation. Our responsibilities include budget analyses and projected impacts on productivity, customer service, quality, employees, and the bottom line.

What we do?
New Construction, Renovation, and/or Expansion of a plant
Market & Technical development support
Work Flow & Operational Analysis
Energy Conservation Studies & Recommendations
Employee Training including Management, Operations, & Maintenance
Equipment and/or Expansion ROI & Cost Analysis
Equipment Utilization Reviews
Inventory Control
Labor and Workforce Management
Long Range and Capital Planning

Equipment Maintenance and Service:
With PK Enterprises service and maintenance programmes you can improve your Laundry machinery performance and lower your costs by reducing downtime.
PK Enterprises offers a range of maintenance contracts designed to meet your exact needs. The one you choose will ultimately depend on your business requirements and the effect machine downtime can have on your business and maintenance teams.
The benefits of a planned maintenance program go beyond reducing the threat of unexpected interruptions and include:
Minimised downtime
Increased productivity
Extended equipment life
Improved safety monitoring
Enhanced budgeting and expense control
Pre-scheduled planned maintenance
Priority scheduling for emergency calls

So far:
• We’ve successfully commissioned 5 laundry setups in Telangana and Andhra Pradesh
• We’ve offered our business consulting services for the following in Hyderabad and successfully took part in starting their operations-
a. A Restaurant 
b. A Startup into IT sector
c. A Coffee Shop

For more information,
People can get in touch with me in LinkedIN, Facebook, Instagram

PK,
PK Enterprises.

Sunday 12 July 2020

Story behind our company's mascot. #LaundryMan

The story behind PKC s logo-


Apart from the logo I and Chaithanya always wanted to have a mascot for our company from the start and did a lot of background work for that. It nearly took 6 months to design the mascot and here goes the story behind the PKC Mascot.
Story:
From our graduation days, we had a thought that whenever we start our business, we should also have a mascot which is liked or recognized by everyone. We drew inspiration from the ‘Amul baby girl’ who appears in the newspapers every day with their take on current happenings across the globe. We wanted to design our mascot in such a way that people will remember our brand name not only through our services but also through the mascot as well.
I was very much interested in these types of aspects (logos, mascots and other related stuff) and also as both I and Chaithanya are Mechanical Engineers we wanted to represent the same in our mascot as well. By trade, I was a designer and I worked on software’s like Unigraphics and AutoCAD. I used to design parts of Automobiles, Boilers and many other things. Hence these designs always fascinated me.
Transformers is one such movie which very much fascinated me and led me to design our Mascot. I always wanted to create something of such type where it excites everyone by seeing it. After much thought process and research, one fine day I decided that our mascot will be- Washing Machine transforming to a Human Being
After deciding on how the mascot should be, the biggest task was- how the face should be? We wanted to get the face right and did a lot of work on it. I wanted my face to be inserted in the mascot, but that wasn’t an easy job at all. We inserted my face in all possible angles into the mascot and that was one hell of a job. We took a lot of time to design the face and at last after many iterations, my jaws were narrowed down, eyebrows were removed, mustache was removed, head went bald and boom, my face was inserted into the mascot.
This whole thing took almost 250-300 iterations and everything was done by hand. It took close to 4 months of time for the face to be finalized. The final body structure and the complete design took another 2 months of time.

Video:
Here is the video of how our Mascot turns into a Washing Machine


Comics:
We also made our customers interactive through our comic series. We have released some comic series, which attracts kids to our mascot.
We named our mascot as the Laundry Man and released many goodies of it. Most of our customers, friends, family liked it and carry those goodies with them!
At the end we were happy that many of them liked our mascot and kids now associated themselves with the mascot in some or the other way!



For more information,
People can get in touch with me in LinkedIN, Facebook, Instagram
PK,
PK Enterprises.

Saturday 11 July 2020

Facts one should know about the decontrol of fuel prices in India and other things...

What is decontrol of fuel prices and how does it actually work?



Price decontrol essentially offers fuel retailers such as Indian Oil, HPCL, BPCL the freedom to fix prices of petrol or diesel based on calculations of their own cost and profits. Essentially a factor of the price at which the source of their inputs from upstream oil companies such as ONGC Ltd or OIL India Ltd, for whom the price benchmark is derived from global crude prices.

Fuel price decontrol has been a step-by-step exercise, with the Indian Government freeing up prices of ATF (Aviation Turbine Fuel) in 2002, Petrol in 2010 and Diesel in 2014. Prior to that, the Government used to intervene in fixing the price at which the fuel retailers used to sell diesel or petrol. While fuels such as domestic LPG and kerosene still are under price control, for other fuels such as petrol, diesel or ATF, the price is supposed to be reflective of the price movements of the so-called Indian basket of crude oil (which represents a derived basket comprising a variety of ‘sour grade’ (Oman and Dubai average) and ‘sweet grade’ (Brent) of crude oil processed in Indian refineries).

Do OMCs (Oil Marketing Companies) also benefit?

The only entity that benefits at the consumers expense is the government. In fact, both the Central and State governments. OMCs, interestingly, are also among the losers from the sharp downward gyrations in oil prices. The problem for companies such as IOC or BPCL is that a continuous slide in fuel prices leads to the prospect of inventory losses. Inventory Loss is a technical term for the losses incurred when crude oil prices start falling and companies that have sourced the crude oil at higher prices discover that the prices have tumbled by the time the product reaches the refinery for processing or the finished product is ready for selling. 

Including both crude oil and products, companies such as IOC keep an inventory of about 20-50 days. For oil refiners, the inventory loss was pegged at over Rs.25,000 crore in the January-March quarter because of the 70 per cent fall in crude oil prices.

Why haven’t consumers benefited now despite the sharp fall in crude prices since February?

Crude prices nosedived from an average of about $55/barrel in February to $35 in early March, and then falling to $20 by end March as demand slumped because of the pandemic. From that point, the prices have recovered to around $40-$45 now. On the other hand, in India, retail prices of fuel were frozen for record 82-days that covered much of this period, even as the excise duty on fuels was hiked by the Centre twice. 

While the Indian Government claimed that the impact of the hike was not passed on to consumers, the latter, however, did not benefit from this fall in crude oil prices to record low levels. Apart from the Centre, a number of states too hiked the levies on auto fuels during this period. The decision to raise the duties, was taken in view of the tight fiscal situation and that retail prices were unchanged (a statement from the Finance Ministry). 

So, effectively, the excise duty hikes by the central government was to be adjusted by the OMCs against the fall in oil prices. But now, the retail prices are being progressively hiked.

As of now the current petrol and diesel prices in some of the cities in India are-



Why Petrol is not under GST?

A new taxation system known as the Goods and Service Tax (GST) was introduced in India from 16 July 2017. However, five petroleum products such as petrol, diesel, natural gas, crude oil, and Aviation Turbine Fuel (ATF) were exempted from the GST. This is because, both the Centre and states were not in favor of GST levied on the sale of petrol and diesel. By bringing petrol and diesel under the GST, the Centre could lose up to Rs.20000 crore as revenue generated through excise duty, while the states wanted to keep their revenue pool intact for any contingency.
Also, the total tax incidence of excise duty and VAT is about 45-50% on petrol, while diesel attracts about 35-40%. Under the GST, the highest tax incidence is 28%, thereby reducing the revenue generated by both the Central government and states. The GST is charged as a percentage on the ex-factory price of the commodity which could have a huge impact on the final selling price whenever the refinery price is hiked amid the rise in crude oil prices in the international market and it could be true vice versa as well.
If petrol is brought under the ambit of the GST, the final price we pay towards the purchase of petrol will certainly decline, benefiting consumers the most. All said and done, we need to see if there will be a different tax structure for petroleum products as they are a huge source of revenue for both the Centre and states.

From all the events which are unfolding and unfolded in the recent past, it is clearly visible that the fuel prices either remain in the same level or increase further on. Once the economy is back on track, it surely will take some time then we a common man can have a breather from the fuel price hike.

For more information,
People can get in touch with me in LinkedIN, Facebook, Instagram
PK,
PK Enterprises.

Saturday 4 July 2020

The base price of petrol is at a paltry Rs.18, the consumer is ending up paying a whopping 275% in taxes to central and state governments combined.

Imported crude oil caters to about 85% of India’s fuel requirements, and import dependency is seen to fall due to muted demand. Global crude oil prices have been tanking for a while now and yet, fuel prices in India have remained firm. Does it make sense?
Read through to get a sense of how actually the dearest commodity for a common man is priced by the Indian government.
We all know that crude oil isn’t the end product. It’s an intermediary that requires additional refining. We don’t get petrol or diesel, right off the bat. We need to pump crude through a processing facility, hoping to turn it into a consumable product. And herein lies the key distinction.

The pricing methodology-
Pic1: General comparison of fuel prices in India, Jan-July 2020.

Pic2: Break up of various parameters that are involved while calculating the fuel prices. (July2020)



Pic3: Comparison of Excise Duty and VAT between Nov2014 to Jul2020

Pic4: How much tax a person who is living in DELHI is paying per liter of Petrol and Diesel

Excise price hike

With the May 4 2020 decision of state governments to raise VAT and it is more than 30% on petrol in almost every state in India. 

Similarly, the Centre's decision to raise excise duties on petrol and diesel by Rs.10/1L and Rs.13/1L, respectively had taken up the component of this tax on retail prices by Rs.32.98/1L on petrol and Rs.31.83/1L on diesel.

So the total tax component (Centre and state in Delhi) is Rs.49.42/1L on petrol and Rs.48.09/1L on diesel. Compare this with the base price of the two products today and the tax load becomes clearly visible. The base price of petrol currently is mere Rs.17.96/1L and diesel just Rs.18.49/1L.
These two taxes cumulatively account for 69% of tax which is higher than anywhere else in the world. The same is taxed at 19% in the US, 47% in Japan, 62% in UK and 63% in France. The government does not pass on the benefit of lower crude oil prices to the customer.
It is to be noted that Indian consumers continued to pay Rs.70/1L even when crude oil prices hit a paltry $20/barrel on April 12.



Why prices are so high in India?

Although the crude oil prices are hovering around $40 - $50 per barrel as opposed to $107 per barrel in 2013-14, the petrol prices are at all-time high. Prices of petrol and diesel in India have witnessed a steady increase in the past four years as the government has hiked excise duties on fuels a dozen times in this period. 

As a result, the current NDA government gets Rs 10 per litre excise duty more on petrol than what the UPA government got in 2014. For diesel, the government gets almost Rs 11 per litre more than the previous government. 

Aside from slight variations in the price due to currency exchange rates and other international reasons, what is creating a gigantic wall of difference in fuel prices before and after 2013-14 are the increased rates of excise duty imposed by the government.

The decision of the government to raise excise duty levels on petrol and diesel by historic high levels has taken up tax component on retail price of auto fuels closer to 70 per cent level.

What this means is that the bulk of the retail price a common man pays to get fuel is tax and if government would not have targeted petrol and diesel to raise revenue every time there is a pressing need for it, the fuel prices in India today would have mirrored retail prices prevailing decades ago (in 2003) and closer to what consumers in oil rich countries in the Gulf pay.

Indians pay more tax on petrol than anywhere else in the world is no surprise. Owing to low direct tax collection, the government has to ramp up tax collection through indirect sources and fuel is a good source for the same.

Opposition parties are unitedly protesting the rise in fuel prices and participating in the nationwide shutdown which was called by the Congress party last week. The peculiar thing about the price hike is that the countries which buy petrol from India are selling it at a price lower than India.

Auto fuels comprise 20-30% of revenue of state governments while it forms a significant portion of excise revenue for states. As these fuels are still out of GST raising duties is easier for both the center and states that target the product to raise revenue whenever there is an emergency. 

But high set price of fuel also adds inflationary pressure on the economy that would just not be right at this juncture when the country is fighting the coronavirus outbreak.

In the end I want to conclude by saying that-

May your happiness increase like FUEL PRICES in India


In the next article I am going to discuss on why the government taps on the fuel prices while it wants to increase its revenues and many more interesting things on the dearest commodity for a common man.


For more information,
People can get in touch with me in LinkedIN, Facebook, Instagram
PK,
PK Enterprises.