Bhagavad Gita: Managerial Lessons

Introduction

The Bhagavad Gita—also known as the ‘song of the lord’-- is a 700-verse Hindu scripture that is part of the ancient Indian epic Mahabharata. The Bhagavad Gita is a dialogue between the warrior Arjuna and his charioteer Lord Krishna, who is admired as an incarnation of the Hindu god Vishnu. The conversation takes place on the battlefield of Kurukshetra—about 5200 years ago-- where Arjuna is highly reluctant to fight his own relatives and teachers in the upcoming battle. Krishna uses the opportunity to teach Arjuna about dharma (righteousness), karma (action), yoga, and other spiritual concepts. The teachings of the Bhagavad Gita have had a profound influence on Hindu philosophy, spirituality, and culture, and are also respected for their universal and timeless wisdom.  According to Bhagavad Gita, every human being is a talent magnet with infinite potential to overcome obstacles and achieve extraordinary results. One needs to realize that potential by focusing attention on an ethical path--- that is meant to deliver value to Society --- and discharge duties with a complete sense of detachment—without seeking fruits of action instantaneously.  The ultimate purpose of life is to attain spiritual liberation or moksha and this can be achieved by performing one’s duties without attachment to results (karma yoga), by understanding the nature of reality and the self (jnana yoga), and by developing a deep love and devotion for the divine and surrendering oneself to its will (bhakti yoga)

Managerial Lessons

Managers can learn a lot from Gita and some of the important ones that can improve managerial efficiency and effectiveness may be recounted thus: 

No doer of good ever ends in misery

The despondency of Arjuna in the first chapter of the Gita is typically human. Sri Krishna, by the sheer power of his inspiring words, changes Arjuna's mind from a state of inertia to one of righteous action, from the state of what the French philosophers call "anomie" or even alienation, to a state of self-confidence in the ultimate victory of "dharma" (ethical action.) When Arjuna got over his despondency and stood ready to fight, Sri Krishna reminded him of the purpose of his new-found spirit of intense action - not for his own benefit, not for satisfying his own greed and desire, but for the good of many, with faith in the ultimate victory of ethics over unethical actions and of truth over untruth. Sri Krishna's advice about temporary failures is, "No doer of good ever ends in misery." Every action should produce results. Good action produces good results and evil begets nothing but evil. Therefore, always act well and be rewarded.

Focus on your duty

One of the key lessons from the Gita is to focus on one's duty or dharma and not seek personal gratification or rewards for one's actions. Everyone has a unique dharma or duty that they must fulfill in order to live a rewarding life. It is important to stick to one’s dharma and then dedicate oneself to fulfilling it with sincerity, commitment, and devotion. While doing so, one should not be attached to the fruits of one's actions or seek personal gratification from them. Instead, one should perform their duty selflessly, without any expectation of reward or recognition. This is because seeking gratification or rewards can lead to attachment, which can in turn lead to disappointment, frustration, and suffering when those expectations are not met. By focusing solely on one's duty and letting go of the desire for personal gain, one can achieve a state of inner peace and contentment.

Think long-term and do your duty

In the Gita, Lord Krishna advises Arjuna, a warrior facing a difficult decision, to focus on his duty and to act without attachment to the outcome. Similarly, managers should focus on their duties and responsibilities, and not get overly attached to short-term results or personal gain. Instead, they should consider the long-term implications of their decisions & actions, and make choices that benefit the organization. This requires managers to develop a sense of purpose and a clear understanding of their roles and responsibilities. They must also have the courage to make tough decisions, even if they are unpopular or challenging. By thinking long-term and doing their duty, managers can create a positive impact on their organizations and communities, and ultimately achieve greater success and fulfillment in their careers.

Be calm & remain composed

The Gita teaches that true wisdom lies in maintaining equanimity in all situations. This means remaining calm, composed, and balanced, even when facing challenges and obstacles. For managers, this can mean staying level-headed and objective when dealing with difficult situations, rather than reacting impulsively. A manager should keep his eyes focused on the goal, ignore the obstacles on the way, deal with challenges head-on in a serene way, and reach the destination. One should focus on the processes and doing one’s best rather than worrying about the challenges on the way and the possible outcomes. For managers, this can mean taking proactive steps to address challenges, rather than being paralyzed by fear of failure. If a particular chosen path is not the right way, managers should be prepared to change hats and switch gears midway. They must be open to change, willing to adapt to new situations, overcome obstacles and achieve success. There is no use getting distracted by petty office politics and ignoring the bigger picture. Such attempts will dissipate managerial energies and drag them into controversies-spoiling the show in the end. The Gita, thus, stresses the importance of maintaining equanimity in the face of success and failure. By treating both outcomes as temporary and staying focused on your work, you can avoid becoming overly attached to the results.

Gita offers a framework for self-motivation

Gita offers a framework for stimulating high levels of motivation. Otherwise, how can one explain the sudden transformation that Arjuna has gone through from a state of fear, mental agony, and hair-raising experience to one of waging a war against a battery of the most credible and competent leaders in the society and eventually winning the war? Overall, the teachings of the Gita can provide a framework for individuals to cultivate self-motivation and achieve their goals. By understanding the nature of the self, finding purpose and meaning, taking action without attachment, cultivating discipline and focus, and overcoming fear and doubt, individuals can develop a strong sense of inner motivation and drive.

Do not be attached to success or failure

The Gita teaches that attachment to success or failure is not good for managers. When managers become overly attached to the outcome of their work, they may become stressed, anxious, and unhappy. This can also negatively impact the work environment and the productivity of their team Instead, they should focus on the process, cultivate detachment, and lead with a positive attitude. By doing so, they can create a positive work environment and help their team members to achieve their best. The results of every action should not upset your mental balance nor dedication to duty. Success and failure are a part of our blissful journey in this world.

Have the right attitude to work: Nishkama Karma

Some people might argue that not seeking the business result of work and actions, makes one unaccountable. In fact, the Bhagavad Gita is full of advice on the theory of cause and effect, making the doer responsible for the consequences of his deeds. While advising detachment from the avarice of selfish gains in discharging one's accepted duty, the Gita does not absolve anybody of the consequences arising from the discharge of his or her responsibilities. Doing one's duty without attachment does not mean the abandonment or renunciation of duty in the Bhagavad Gita. Instead, it means performing one's duty with a selfless attitude, without being attached to the fruits of one's actions. According to the Gita, individuals are responsible for their actions, and they must face the consequences of those actions, whether they are good or bad. Thus, the best means of effective performance management is the work itself. Attaining this state of mind (called "nickname karma") is the right attitude to work because it prevents the ego, the mind, from dissipation of attention through speculation on future gains or losses

Possess a self-less mindset

According to the Gita, managers should define work as a means of fulfilling one's duties and responsibilities, rather than solely for personal gain or success. They should lead their teams by setting an example of selfless action and dedication to the task at hand. They should encourage team members to approach their work with a selfless mindset, recognizing that their work is a service to others and to the Divine. This can help foster a sense of purpose and meaning in their work. Managers should communicate their expectations clearly, equip the team members with the tools and resources needed to succeed. Members should be willing to always help each other and carry out their duties with dedication and mindfulness. 

Bhagavad Gita and the definition of work

ü The doer has the right to work

ü The doer has no control over the outcomes/ fruits of action

ü The doer has no control over the root causes of the fruits of action

ü There is no choice but to revel in inaction   Fear of failure and the focus on result orientation would drive people to sacrifice ethical means. ‘ I must enjoy the fruits of my action’ would compel people to focus on results ignoring the means. 

Control your emotions

To lead a fulfilling life and to attain spiritual enlightenment, managers need to possess a positive mindset and learn to always control their emotions.  The Bhagavad Gita emphasizes the importance of not being a slave to emotions. The sacred text teaches that emotions are a natural part of human experience, but they can also be a source of suffering and bondage if one becomes too attached to them. Therefore, the Gita encourages individuals to cultivate self-awareness and self-control in order to avoid becoming enslaved by their emotions. The Gita also teaches the importance of cultivating the quality of "sattva," which is the state of purity, harmony, and balance. This can be achieved through various spiritual practices, such as meditation, self-reflection, and service to others. The Gita emphasizes the importance of self-awareness as a means of developing self-control. By observing their own thoughts and emotions, managers can become more conscious of when they are becoming reactive or emotional, and take steps to regulate their responses. The Gita encourages individuals to cultivate a state of equanimity, or even-mindedness, in the face of challenges and difficulties. Managers can practice this by maintaining a calm and composed demeanor, even in high-pressure situations. The Gita teaches the importance of seeking guidance from wise mentors who can offer spiritual guidance and support. Managers can benefit from seeking out mentors or coaches who can help them develop their emotional intelligence and spiritual awareness

Show the right path for others

According to the Bhagavad Gita, those who are in positions of authority should set a good example for others to follow.   As a manager, you can lead your followers on the right path by setting a positive example through your own actions. If you demonstrate integrity, honesty, and respect for others, your followers are more likely to follow suit. The Gita teaches the importance of self-awareness and understanding one's own strengths and weaknesses. As a manager, you can help your followers develop their self-awareness by providing constructive feedback, encouraging self-reflection, and setting realistic goals. The Gita emphasizes the importance of performing one's duty without attachment to the outcome. A manager should instill this sense of duty in their followers, encouraging them to focus on the task at hand rather than the rewards or recognition they may receive. Further, the Gita emphasizes the interconnectedness of all beings and the importance of working together towards a common goal. A manager should foster a sense of unity and teamwork among their followers, encouraging them to collaborate and support one another. he Gita emphasizes the importance of continuous learning and growth, both personally and professionally. Managers should encourage their followers to seek out opportunities for learning and development, and provide them with the resources and support they need from time to time.

Deliver what your promise and promise what you deliver?

"Whatever the excellent and best ones do, the commoners follow," says Sri Krishna in the Gita. The visionary leader must be a missionary, extremely practical, intensively dynamic, and capable of translating dreams into reality. This dynamism and strength of a true leader flow from an inspired and spontaneous motivation to help others. "I am the strength of those who are devoid of personal desire and attachment. O Arjuna, I am the legitimate desire in those, who are not opposed to righteousness," says Sri Krishna in the 10th Chapter of the Gita.

Giving back to the Society

According to the Gita giving back to society is an essential aspect of a fulfilling life. By performing selfless acts of service and using our talents and resources to benefit others, we can create a more compassionate and just society while also experiencing inner growth and fulfillment. While the Gita does not explicitly prescribe acts of charity, sacrifice, and penance for managers, it does offer principles that can be applied to their roles and actions.

ü Charity, or "dana," is the act of giving to those in need. By giving freely and selflessly, one can attain spiritual merit and gain the blessings of the divine.

ü Sacrifice, or "yajna," is the act of offering something to a deity as an act of devotion. tAll actions should be performed as acts of sacrifice, with the ultimate goal of attaining union with the divine. This can be achieved by offering one's thoughts, words, and deeds to the divine and performing rituals and ceremonies with devotion.

ü Penance, or "tapas," is the act of undergoing hardship or self-discipline in order to purify the mind and body. The Bhagavad Gita teaches that penance can help one overcome desires and attachments that prevent spiritual growth. It is seen as a means of attaining self-control, discipline, and inner strength.

Acts of charity, sacrifice, and penance can also be incorporated into a manager's approach to leadership. For example, a manager could donate a portion of their salary to a charitable cause or volunteer their time to help others in need. They could also make sacrifices in their personal or professional life in order to benefit their team or organization, such as working longer hours to meet a deadline or taking on additional responsibilities to support their colleagues. Managers can engage in acts of penance by reflecting on their actions and behaviors, identifying areas where they can improve, and taking steps to address any shortcomings. This could include seeking feedback from their team members, attending professional development programs, or engaging in regular self-reflection and meditation practices.

Disinterested work and detached involvement in work

A concept which is described as "disinterested work" in the Gita where Sri Krishna says, "He who shares the wealth generated only after serving the people, through work done as a sacrifice for them, is freed from all sins. On the contrary, those who earn wealth only for themselves, eat sins that lead to frustration and failure. “Detached involvement in work is the key to mental equanimity or the state of "nirdwanda." This attitude leads to a stage where the worker begins to feel the presence of the Supreme Intelligence guiding the embodied individual intelligence. Such de-personified intelligence is best suited for those who sincerely believe in the supremacy of organizational goals as compared to narrow personal success and achievement

Harness the power of the human mind

The Gita emphasizes the importance of controlling the mind to achieve success. The mind is the most powerful tool we have, but it can also be our greatest obstacle if we allow it to be ruled by negative thoughts and emotions. By learning to control the mind and direct it towards positive goals, managers can overcome obstacles and achieve success. According to Gita, success comes not just from external factors like hard work and skill, but also from internal factors like mindset and attitude. By harnessing the power of the mind through control, detachment, selflessness, and adaptability, managers can achieve their goals and create a more fulfilling and successful career.

. Intensions Are Your Expressions

Gita says “your intentions should be clear, practical, and achievable and should differentiate you from others. Power of intention is the success mantra for attaining any desired task.  Look for the bigger and harmonious picture, put your egos aside. Spirituality leads to social harmony and realizes the ultimate destiny of human beings as a result of self-assessment and self-determination. One should practice steadiness of mind through YOGA. With the steadiness of mind one can calm the emotions and increase one’s Viveka or buddhi with vichikshana  if you surrender before the Lord, you can leave your EGO at the gate and begin to see the big picture, and perform your duties with complete detachment. When Arjun reached the battlefield he lost his courage to fight when he saw his young and old relatives as his opponents and felt that he will have to kill them. He resisted fighting and dropped his arms. That time Lord Krishna directed him and said that he should focus on his goal.

Achieving success

The Gita emphasizes the importance of focusing on your duty, or dharma. Managers should prioritize their responsibilities and focus their efforts on fulfilling their duties to the best of their ability.  The Gita teaches that managers should identify what is truly important in their work and prioritize those tasks above others. By focusing on what is really important, managers can ensure that they are making the most effective use of their time and resources. Managers need to set realistic goals that align with their competencies and resources. By setting achievable goals, managers can avoid frustration and maintain motivation as they work towards their objectives. They should also learn to live with the present moment and not worry about the past or future. By being fully present and focused on the task at hand, managers can improve their efficiency and productivity. While trying to meet goals, managers need not turn themselves into racehorses. While it is important to work towards specific goals, managers should also recognize that the outcome is not entirely within their control. By embracing detachment, managers can reduce stress and maintain a clear and focused mind. They should also cultivate self-awareness and strive to understand their strengths, weaknesses, and tendencies. By doing so, they can work to improve their performance and make better decisions. The Gita emphasizes the importance of cultivating discipline in all aspects of life, including work. By cultivating discipline, managers can improve their efficiency and effectiveness. Managers should also strive to build positive relationships with their colleagues and team members. By doing so, they can create a supportive and collaborative work environment that fosters creativity, productivity, and success. At a personal level, managers should seek opportunities for lifelong learning and continuous personal growth. By continuously expanding their knowledge and skills, managers can become more effective leaders and achieve greater success. Overall, the Gita teaches that achieving success requires a combination of focused action, self-awareness, discipline, positive relationships, and a commitment to lifelong learning. By applying these teachings, managers can improve their performance, build successful teams, and achieve their goals in the workplace.

The curious case of a falling knife

 Digging the grave

Accidents do occur routinely. Stock markets are no exception. Here accidents happen daily. By nature, stocks are volatile. They swing from one end to the other every second. People profit from those pendulum swings. To make money, it is natural for some evil minds to inject poison into the system. They float wild rumors. They accuse the promoters. They create smoke around a stock. Often such claims are buttressed by sponsored research reports. To bring in credibility, they seek help from foreign brokerages. Carefully designed media leaks happen, citing some kind of siphoning of funds in a company. Independent directors, auditors, and other related parties are influenced to put in papers. You would see a flood of reports citing fraudulent practices in a targeted company. Reputed analysts are hired to plant doubts in the minds of the gullible public through popular media. Rating agencies begin to downgrade the stock almost simultaneously. In short, every attempt is made to create panic and kill the stock.

Smokescreen

Fund managers begin to flee at the first sign of trouble. Looking at the noise levels, they try to wash off their hands by putting the stock in flames. Huge bulk sell orders appear on the screen—mostly carried out by hedge funds. Shorts get created in numbers that would numb the senses of any sensible investor. Analysts rush to prepare negative reports and begin to release them daily—highlighting the alleged fraudulent practices inside the company. It would look like the best on-the-spot report—a kind of financial health report-- of what’s happening at the company headquarters. Interviews with disgruntled employees would see the light of day suddenly. By any chance, if the company fails to make interest payments on time, that would grab the attention of the whole world. The opposition would begin to blame the Government in power and demand stern action Professors (who never made a penny in the stock markets by the way) financial journalists and self-declared experts would pronounce judgment on the stock and reduce its price by a minimum of 50 percent. (Foreign professors are the preferred lot here because we tend to believe the foreign-origin product has good quality—for reasons not known to me)

The falling knife

Now is the time for the bulldozer to decimate the stock. Everyone is rushing to the exit door. No one wants to buy. The heavy downpour of sell orders sinks the stock to its lowest levels. Fresh 52-week lows happen almost every day. The stock volumes would touch sky-high levels. The weak hands would run for cover. The stronger ones would wait for some positive news to come. In the interim, technical analysts would cry from the rooftop (after creating huge short positions in the stock) advising investors to stay away from the stock. ‘It’s a falling knife, so do not ever dare to touch it’ is the standard phrase that gains circulation. They see to it that there is no demand created for the stock by badmouthing the stock in every news channel throughout the day (of course to safeguard their short positions that would yield juicy profits only when the demand disappears completely). True to their predictions, the stock would sink further and further. The promoter in the interim is dragged to the street and is made to answer embarrassing, prohibitive, nauseating questions of all kinds. Fear, anxiety, and financial loss would compel the Promoter to brief the Media with all kinds of presentations made in a hurry. The scene gets murkier and murkier as Analysts dig deep into the presented data and uncover earth-shaking revelations of all kinds. The stock would now become a bottomless pit, having lost its sheen and value beyond recognition. The once-upon-a-time stock market darling would now turn into an ugly duckling that the Promoter himself would be scared to touch.

Stock on the stretcher

One fine morning the RBL stock started falling in a big way. The stock fell to its lowest level of Rs 85. Everyone said it is another Yes Bank. The reasons cited looked quite convincing (at that time) and the Market believed it. Mr.Ahuja the erstwhile MD was asked to go on long leave suddenly by the Reserve Bank. A similar move was made in the case of Yes Bank too. There was a sudden flurry of activity questioning the credentials of the bank. Analysts started questioning the asset quality, the inadequate provisions being made, and the poor net interest margin growth. The Market began to take an X-ray of the reduced holdings (though a minuscule change) of both the DIIs and FIIs in the most recent quarter. Suddenly the armchair professors found loopholes in the return ratios of the Bank. The stock started touching new lows with each passing day. Mr. Ahuja tried to salvage the situation by giving a series of interviews with the news channels. The experts now took the root of psychology to pronounce the sudden and premature death of the stock—saying that the body language of Mr. Ahuja was nervous and shaky, implying that he was trying to hide more than what the market wanted to know.

The new CEO picked up by the RBI (by a strange coincidence he was the administrator for Yes Bank previously—and hence the Market issued the judgment order even before he started his innings) who took over the reins from the Promoter had the PSU background—thereby meaning that the knowledge and experience of the incumbent not at all suitable for running a private sector bank. The Market was reading all these signals in a negative way compelling the stock to sink to its lowest level in over a decade—falling from Rs 165 (52-week high was 265) to Rs 85 in a short span of time (30 days).

Catch the falling knife?

You need muscles of iron and nerves of steel to catch a falling knife during all this controversy. The weak hands exited quickly. Technical experts enjoyed the enormous juice from the shorts daily. They tried every trick in the book to spell doom for the stock. Asset quality is poor; promoter is fraudulent books are cooked up; SEBI has gone into a deep slumber, RBI is looking the other way etc. Fund managers waited for the right moment to make their grand entry. FIIs also waited in the wings to pounce on the stock after it sank without a trace. Within a month the dust settled down. Reports came out saying that the books were not cooked. The return ratios are comparable to any other mid-sized bank. The new CEO is very capable and will be able to turn it around. Within 45 days, the stock regained its lost glory.

Key Takeaways

If you are patient enough to keep away from the noise levels created by the Market during a 3-month period where all the drama happened, you would have not lost anything. In fact, you would have made a decent return on your original investment. It is true that the journey from 169 to 85 and back to 170 levels is quite scary for faint-hearted souls. But a seasoned investor should learn how to cope with the excesses created by market participants for personal gains. You need to keep your ears and eyes wide open in order to read between the lines carefully and make prudent moves. A Falling knife would yield fantastic returns, if you are able to pick it from reasonably low levels in small quantities (as a thumb rule never buy a falling knife till it loses a minimum of 50 percent) and keep on increasing the load with every subsequent fall—and hold it till the time the rebound happens. RBL is not an exception; there are many other strong cases to cite in favor of falling knives. For example, software stocks have been beaten out of shape till recently. Everyone turned negative and most of the stocks have hit bottom levels for nearly 6 to 9 months. Persistent Systems touched 3200 and bounced back to the 5000 level; LTI Mindtree went below 4000 and bounced back to the 4900 level and the list is endless. Whenever the noise levels around a stock or a sector reach a high decibel level, remember, it is time for you to take notice and begin to load your portfolio (in small lots in a staggered manner) for a possible rebound sooner than expected.

Vedanta group in Trouble?

 The metal king of India

The stock has given stellar returns for over a decade. The Promoter has rewarded the shareholders consistently. Record dividends have been paid year after year. In fact, the dividend payout ratio is the best in the industry. The group never faced a resource crunch in its entire life. Thanks to the liberal interest rate scenario till recently, one phone call would bring global investors to its door. A series of acquisitions had put the  Vedanta group on the global map. The man heading the show—Mr. Anil Agarwal-- is named: ‘the metal Kind of India’. 

The man in a hurry

Undoubtedly, the Vedanta group was always investor-friendly. It was able to get the Authorities, the regulators, the Bankers & the Fund Managers on its side effortlessly whenever it made a big move. Many a time, the local and central governments had gone out of their way to clear the hurdles faced by the group. Easy funding, friendly governments, and flexible rules and regulations have compelled the Company to acquire all kinds of mineral resources left and right. People hailed the ‘golden touch’ of the Promoter and glorifying research reports greeted the investors almost every quarter. In the interim, the global metal cycle also turned positive, yielding astronomical returns.  Not surprisingly, the stock enjoyed a dream run for many, many years

The roadblocks

The Adani group fiasco suddenly shifted the attention of investors towards Companies that fuelled the growth engine through debt (the group borrowed $10 billion to fund the acquisitions) On close examination, the Vedanta group became the first victim of this newfound enthusiasm of Bears who made a killing by shorting Adani stocks during February 2023. As a result, the mining giant has grabbed the news headlines for all the wrong reasons. Everyone is putting a question mark over the Group’s ability to clear the huge pile of debt, including $ 500 million to be paid on 31st December 2023 and a $ 1 billion bond payment maturing in January 2024. Once the bear hammering began, investors have conveniently forgotten the $ 2 billion debt cleared by the Group in a span of 11 months. Still the outstanding debt to the tune of $7.7 billion, they say is humongous, and in a rising interest rate scenario, the Group will not be able to raise resources to the tune of $2 billion due to be cleared before the end of 2023—to be precise, $500 million between July and September and the balance before the end of the year. The Bears have already planted doubts in the minds of worried investors successfully – questioning the ability of the company to clear $3.9 billion debt during 2024-25 and $4.7 billion debt in 2025-26.  With a mere $500 million in its kitty, the parent company Vedanta resources will not be able to meet its obligations, unless there is a big fundraising exercise. Like the Adani group, the Vedanta group also will not be able to raise funds and once the doubts began to crop up, the stocks witnessed a free fall. 

The reversal of fortunes

In a smart move, Mr. Anil Agarwal who owns 64.92 percent of Hindustan Zinc Ltd (HZL) (29.54 held by the Government of India) tried to offload the mining resources of Vedanta Ltd in South Africa and Namibia for $3 billion The Centre’s opposition to the Company’s proposal to sell its zinc assets to HZL came like a bolt from the blue. The regulator, SEBI, has been approached to stop the deal from happening soon. The concerns aired by the Centre, though not convincing at this stage, had put a spanner on the plans of Vedanta resources to come out of the crisis quickly. After the Centre’s announcement, HZL stock has been mercilessly hammered down by the Bears.  

An opportunity or a trap?

The foreign currency bonds in the interim have been beaten out of shape, quoting at a mouth-watering discount of over 30 percent. When questioned by a journalist recently, Mr. Agarwal was unable to answer why the Government is opposing the move to transfer Vedanta’s zinc assets to HZL. After having paid stellar dividends year after year running to over $6 billion –nearly 10 times the acquisition price paid to the GOI—why the deal has not been cleared and is opposed vehemently, the promoter himself is not very sure. He has no clue as to why the company is not getting a free hand to do what it wants to do in the best interests of all the shareholders.   Against this backdrop, let us try to assess the situation in a balanced, rational, and unemotional manner through a series of questions:

1.    Has the promoter failed to deliver what has been promised any time before?

2.    Is the Group a wealth creator or destroyer?

3.    Has the shareholders suffered serious losses due to manipulation in share prices any time before?

4.    Is the promoter involved in any scandal before?

5.    Is there any question mark over the accounting practices of the Group?

6.    Are the banks, financial institutions or financiers failed to receive payments from the Company any time before for any reason whatsoever?

7.    If the zinc assets of Vedanta are transferred to HZL, is there any inherent loss to the existing shareholders of both companies?

8.    Will it be possible for the parent company to raise resources and repay loans as per schedule?

9.    Having faced headwinds several times before, is the company (Vedanta Ltd) not fully equipped to handle the downward cycle in metal prices going forward?

10. With a cash cow in its kitty (HZL) is the Group as a whole really in trouble—either in raising resources from Indian/Foreign Banks or making payments to bondholders going forward?

The 25 to 35 percent fall in the prices of HZL and Vedanta Ltd looks unwarranted as of now. The Bears in the market basically love hazy, foggy situations like this where there is a lot of noise created by analysts, technical experts, journalists, and armchair pundits—giving outlandish reasons of all kinds. For the discerning investor, of course, there is always money to be made from such panic situations.