sat 17/10/26- How to Select Articleship After CA Inter 

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 Vedanta Commerce Academy - Giving Right Angle to Students Life

The 5-Year Tapasya: Why CA is Not Just a Course, It's a Sacrifice

Friday, 8th October 2026 - WRITTEN BY SHARMA SIR

Every year I see 1000 students start CA. Only 50 become CA. 

What is the difference? 

Talent ? 

 Intelligence ? 

Its neither talent nor intelligence  It's DISCIPLINE.

If you are taking CA seriously, read this carefully. This is not a motivation lecture. This is the truth no one tells you on Instagram or Fb.

1) When Coaching classes is Completing the Course, YOU Should be fully Focused.

The biggest mistake CA students make - They think coaching classes will complete the course.

Coaching classes completes 60% work only, they just complete your course in best of the manner with their expertise. Your focus completes 100%.

When Sir is teaching in class, your phone should be off, your mind should be on. Don't just attend the class, absorb it. I have seen students come to Andheri from Virar, Nalasopara - travel 2 hours, but in class they are on Instagram/youtube/fb under the desk. Even if not on social media but they are not focused.  what's the use if they are not giving justice to attending lectures.

Rule at Vedanta: One lecture is equal to 3 hours revision same day. If you can't do this, you are just collecting notes, not knowledge.


(If revision not done on the same day then towards the end " Book mai sirf apni Handwriting dikhegi- yaad kuch bhi nai Rahega")


2) 5 Years Tapasya - No Celebrations

I tell all my students on Day 1 - For next 5 years, no birthdays, no Diwali parties, no New Year celebrations.

People will call you boring. Let them.

Your friends will be posting Lonavala trips photos. You will be posting Balance Sheet. That's OK.


CA demands Tapasya. Like a Rishi/Monk . 5 years of complete sacrifice. If you want to enjoy now, you will cry later. If you sacrifice now, you will enjoy for next 50 years with "CA" before your name.

No Garba during Navratri if your attempt is in November. No Dahi Handi if your attempt is in September. No Holi if your attempt is in May. Your festival is the day your result says "PASS".


3) Same Teacher for Foundation, Inter, Final - Don't Be a Subject Tourist

This is my most important advice. Don't change teachers at every level.

Today students do Foundation from one teacher in class or Youtuble/online.

Inter from another, Final from third. Then they get confused. 

Every teacher has a different method, different style.

If your Foundation base is made by one teacher, your Inter building will be strong only with the same teacher. Because he knows what he taught you, what you forgot, what your weakness is.

At Vedanta, I teach my Foundation students for 3 (cafc+inter+final) years till they become CA. I know their handwriting, I know their mistakes. That's why they clear.


Loyalty to one teacher = Clarity in concepts.


4) Stay Away From Instagram, Facebook - They Are Your Biggest Enemy

Instagram Reels are designed to destroy your attention span. Facebook is designed to waste your time.

CA needs 3 hours of continuous sitting power. If you watch 15-second reels, how will you sit for 3 hours in exam?

I tell my students - Delete Instagram for 5 years. If you need it for study updates, use it only on laptop, 10 minutes a day.

Your ID on Instagram will give you likes. Your CA degree will give you respect for life. Choose.

One more truth: 

Don't follow 10 different CA faculties on Instagram/Youtube. You will get confused and demotivated. Follow one, trust one.


5) Last 3 Months - 12 Hours a Day is NON-NEGOTIABLE

No excuses in last 3 months.

Minimum 12 hours. Not 12 hours of sitting, 12 hours of effective study.

My timetable for Final 3 months:
First slot 

5:00 AM to 8:00 AM - Theory Subject (Audit-Daily)
-------  8:00 to 9:00 - Break Time
Second slot: 

9:00 to 1:00 PM - Practical Subjects (Accounts, Costing)  -- keep shifting subjects weekly. say, for 1 full week Accounts & then next full week Costing & so on ...
------- 1:00 to 2:00 - Lunch + Sleep
Third Slot: 

2:00 to 6:00 PM - Practical subjects (Tax, FM)  -- keep shifting subjects weekly. say, for 1 full week FM & then next full week Tax & so on ...
--------- 6:00 to 7:00 - Walk / Break

Fourth Slot:
7:00 to 10:00 PM Theory Subject (Law-Daily) 


(The above sample time table is particularly for Ca Inter, CAFC & FINAL students can text me will give them their time table)


No phone in this time. Only you and your books.

If you can't do 12 hours in last 3 months, you are not ready to be a CA. Because CA exam itself is 3 hours x 16 papers (CAFC 4 + INTER 6 + FINAL 6) = 48 hours of pressure. You need stamina.

6) Rules From My Experience 

A) Write, Don't Just Read: 

CA exam is a writing exam. If you only read, you will fail. Write at least 2 answers daily. Your handwriting, your presentation, your speed - it matters. At Vedanta, we give assignments, weekly Test papers as well which is  checked by Charteted Accountants.


B) Stay Away From Negative Friends: 

If your friend says "CA bahut tough hai, nahi hoga", leave that group immediately. You need friends who say "Apna to pakka hoga". Your circle decides your result. Your thinking should be "even 2% result aaya toh bhi hum pass honge".


 CA is not difficult. CA is different. It needs a different lifestyle.


If you follow these 5 rules, I guarantee - You will clear. I have seen average students become CA with discipline, and intelligent students fail due to distraction.

Your 5 years of Tapasya will give you 50 years of respect.

Have any Queries?

MESSAGE HERE
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CA Inter Direct Entry Passing % Very Low | Why ICAI Rule 2023 Failed Students |

Why ICAI's 2023 Rule Destroyed Direct Entry Students? - The Harsh Reality of 5% Passing Percentage

Tuesday, 29th September 2026 - WRITTEN BY SHARMA SIR 

CA Inter Direct Entry Students Ka Sach - Na Job, Na Articleship, Sirf Fail?

CA Direct Entry students passing % is only 5-7%. After 2023 new rule - no articleship before Inter - students neither clear exams nor learn practical work. Full analysis by Sharma Sir.

 Let's talk the truth that no one talks about - CA Direct Entry Scheme.

If you are a graduate and you entered CA through Direct Entry, I know your pain. ICAI says Direct Entry is a good route. But the ground reality?


Passing percentage of Direct Entry students in CA Inter is just 5-7%.

Yes. Out of 100 Direct Entry students, only 5-7 clear Inter. Rest 93 students are stuck. And after 2023 rule change, their life has become even worse.


What Was The Old System (Before 2023) - Which Was Gold

Before July 2023, the rule was simple, Graduate -> Register for CA Inter -> Start Articleship Immediately (For 3 Years)

What was the benefit?

Even if that student could NOT clear CA Inter in 3-4 attempts, after 3 years he had:

a)  3 Years of practical knowledge of GST, Income Tax, Audit
b) He could get a job of Rs.35,000 - Rs.50,000 in a CA firm or company as Accounts Executive
c) He was at least settled in life. He had practical experience. He could support his family.


CA degree nahi mila, par career to ban gaya. He became a good accountant.

I have seen hundreds of such students at Vedanta Academy, Andheri. Today they are working in good companies, even without CA tag.

What Changed in 2023 New Scheme? - The Biggest Mistake

In July 2023, ICAI changed the rule, as per the NEW RULE: Graduate -> Register for CA Inter -> FIRST CLEAR BOTH GROUPS OF CA INTER -> THEN ONLY Articleship Starts.


ICAI's logic was Student should first clear Inter, then do practical training. So he can focus on studies.


It sounds good on paper. But it failed badly on the ground. 


Ground Reality After 2023 - Direct Entry Students Suffered The Most

1. No Practical Work, No Clearity in Theory - Double Loss
Earlier, student used to study Inter along with office work. He used to see GST returns, Audit files daily, so theory became easy to understand.


Now, he sits at home for 1-2 years, only studying. No office, no practical exposure. Costing, Audit, Tax - all looks like theory only. Result? He fails again and again.

2. Age Gets Wasted

A B.Com graduate at age 21 registers for Direct Entry.

Old System: By 24, he is a 3-year experienced article with Inter cleared (or at least one group).

New System: At 24, he is still struggling to clear Inter. No articleship started. CV is blank. 3 years gap. Parents pressure starts - "Kya kar raha hai?"

3. Financial Pressure

Old system me stipend aata tha - Rs.10,000-15,000. Ghar ka kharcha nikal jaata tha.

New system me - 2 saal tak koi stipend nahi, kyunki articleship hi start nahi hui. Only coaching fees and frustration.


4. Passing % Even Lower Now
Because there is no practical learning, concept clarity is zero. A Direct Entry student who never saw a Balance Sheet in office, how will he pass Audit and Accounts?


Why Is ICAI Doing This?

As a teacher of 25+ years, I will be very honest, 


ICAI tried to copy ACCA, CPA model where you finish exams fast.


ICAI thought - If we stop articleship, students will study more and clear Inter faster.

But ICAI forgot - Direct Entry students are not same as Foundation route students.

Foundation route students are 17-18 years old, fresh mind, can study 10 hours.


Direct Entry students are graduates, many are working, many come from small towns, many have weak base. For them, PRACTICAL LEARNING IS THE BEST LEARNING. They learn by doing work in office, not by sitting in library.


By removing immediate articleship, ICAI has taken away their biggest strength.


What Should ICAI Do Now? - My Suggestion to ICAI

I have full respect for ICAI. But I request Board of Studies:

1. Bring Back Old Direct Entry System: Allow articleship immediately after registration, like before 2023. At least after clearing Group 1, allow articleship. Don't force both groups.

2. If Not Immediate, Then At Least Allow After 1 Group: Student clears Group 1, start his articleship. So he gets motivation and practical exposure.

3. Increase Practical Training in Coaching: Till rule changes, we as teachers must give practical file work in class itself. Though not possible to do this with CA inter coaching but it is just my thought process.


As per latest viral updates of 25th-26th Sep 2026, ICAI is already thinking of bringing back 3-year articleship and allowing Direct Entry students to start articleship after graduation without waiting for Inter result. If this happens, it will be a blessing for Direct Entry students.


Old system was gold for Direct Entry students. New system made them unemployed at home.


Final Message to My Direct Entry Students

If you are a Direct Entry student reading this:

1.  Don't lose hope. Passing % is low because system is wrong, not because you are weak.
2.  Don't sit idle at home waiting for Inter. Join a CA firm as paid assistant or do part-time accounting work. Learn Tally, Excel, GST filing - even without articleship registration.
3.  Focus on Group 1 first - Accounts, Law, Tax. Clear Group 1, then Group 2. Don't try both groups together if you are struggling.

Your CA firm practical experience will be your backup career, even if CA takes time.

CA is not just about degree. It's about knowledge. And knowledge comes from practical work.


What is your story as a Direct Entry student? Are you facing this same problem? Comment below - I will reply to every comment personally.


Team Vedanta Academy
Mumbai's CA Institute - We Teach CA Students Only
For Free CA Inter Direct Entry Guidance - Visit Vedanta Academy, Andheri

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ICAI Brings Back 3 Year Articleship & Law Costing in CA Final | Big Update 2026

ICAI's U-Turn: Why Bringing Back 3-Year Articleship & Costing-Law in CA Final Proves Old System Was Gold

Monday, 28th September 2026 - WRITTEN BY SHARMA SIR

As per the latest discussions in ICAI Board of Studies and viral updates from 25th-26th Sep 2026, ICAI is planning to:

1.  Remove IBS (Integrated Business Solutions - Paper 6) from CA Final
2.  Bring back Corporate Law and Strategic Costing as full 100-marks papers in CA Final
3.  Make Articleship 3 years again instead of 2 years

 If this happens, CA Final will again have Law and Costing - just like the old course.


The big question every CA student is asking is, If you had to bring it back, why did you remove it in 2023?


Let's understand this honestly - what i feel as a teacher who has seen 25+ years of ICAI changes.

What Exactly Changed in 2023 New Scheme?

In July 2023, ICAI launched the New Scheme with big claims.

Before 2023 (Old Scheme):
a) Articleship = 3 Years
b) CA Final = 8 Papers including Law and Costing (SCMPE)

After 2023 (Current Scheme):

a) Articleship = 2 Years (reduced to complete CA early)
b) CA Final = 6 Papers only. Law and Costing shifted to Self-Paced Online Modules (SPOM Set A - Law and Set B - Costing)
c) Students had to do online modules at home, open-book type test.


ICAI's logic at that time was:
1.  Reduce total duration of CA course from 5 years to 3.5 years
2.  Bring parity with global courses like CPA, ACCA
3.  Give 2-year industrial training exposure
4.  Reduce pressure of 8 big papers in Final


It sounded good on paper.


It Failed because the Ground Reality was different


As a teacher i meet 1000s of CA Final students every year at Vedanta Academy, Andheri in face to face classroom & in virtual live pan India - I can tell you:

1. SPOM = No Seriousness
Law (Set A) and Costing (Set B) became online, self-paced modules. Students completed them in 2 days by just clicking next-next. No one studied Corporate Law or Strategic Cost seriously. These are core subjects for a CA. You can't make a CA who doesn't know Company Law and Costing.


2. 2-Year Articleship = Half-Baked CA
In 2 years, a student barely learns audit and tax. In first 6 months he learns basics, next 1 year he works, and then he is on leave for Final. Firms also complained - "Sir, we train them for 2 years and they leave." The quality of practical training dropped drastically. ICAI itself made eligibility criteria confusing - 3-year articleship for some, 2-year for some.


3. IBS Paper Confusion
Integrated Business Solutions (Paper 6) was supposed to be a case-study paper. But students never understood it. It was mix of all subjects. No proper study material, no past papers trend. Failure rate was high.

Industry feedback was clear: 

We need CAs who know Law and Costing deeply, and who have done full 3-year rigorous articleship.


So, Is Going Back to 3 Years a Good Decision?

According to me YES. 100% Yes


A CA is not a 2-year course. CA is not about finishing early. It's about becoming an expert.


Law: 

How can a CA sign a Directors Report, handle NCLT matters, do due diligence if he has only done an online module in Law?

Costing: 

How can a CA become CFO, handle cost sheets, pricing decisions, if Strategic Cost is just an online MCQ test?

Articleship: 

3-year articleship under a good CA is where a CA is actually made. It's not a formality. It's tapasya. Reducing it to 2 years was injustice to the profession.


ICAI has finally accepted its mistake.


What Should You Do As a CA Student Now?

If you are in CA Foundation / Inter:
Don't wait for notification. Articleship will almost certainly be 3 years again. Plan your attempts accordingly. If you are planning for early industrial training - re-plan.

If you are in CA Final under New Scheme:
Don't ignore Set A and Set B. Because if Law and Costing come back as full papers, those who studied SPOM casually will suffer. Start studying Law and SCMPE properly from now.  

Final advice from Sharma Sir:
ICAI changes syllabus every 5-6 years. But concepts never change. Don't run behind scheme. Build your concepts strong in Accounts, Law, Costing, Tax. Whether it's SPOM or 100-marks paper - knowledge will be your asset.

Old system was gold because it made tough CAs. New system tried to make fast CAs. Now ICAI understood - We need tough CAs, not fast CAs.


Personally i feel ICAI is the Role model & should be followed by Foreign Institutes we should not follow them or try to bring parity with global courses like CPA, ACCA.

What is your opinion? Do you support 3-year articleship again? Comment below.

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  Crazy True Story of Negative Interest Rates

Your Bank Is Robbing You Legally

Friday, 11th September 2026 - WRITTEN BY SHARMA SIR

A) Negative Interest Rates in Deflationary Conditions.

Central Banks/RBI Pay You to Borrow?

When we hear interest rate, we think of earning money on our savings.  But what if the bank charges you for keeping your money with them? 


Welcome to the strange world of Negative Interest Rates.


1. First, What is Deflation?

Inflation is when prices go up. Deflation is the opposite - when prices keep falling. It sounds good, right? Cheaper goods? But deflation is actually very dangerous. 


Why would you buy a car today for ₹10 lakh if it will cost ₹9 lakh next month? 

You wait, infact Everyone waits. 

Demand stops. 

Companies shut down. 

People lose jobs. 

Economy freezes.

This is called the deflationary spiral.


2. What are Negative Interest Rates?

Normally, RBI/Central Banks  sets a policy rate at, say, 6%. Banks earn interest by parking money with RBI. 

In a negative interest rate policy (NIRP), RBI sets the rate at, say, -0.5%. 


This means commercial banks have to pay to keep their money parked with RBI. 


The logic is simple, Instead of paying a penalty, banks will be forced to lend that money to people and businesses, even at very low rates.


3. Why Do RBI Do This in Deflation?

In deflation, people don't want to spend or borrow. Even at 0% interest, they don't borrow because they think prices will fall further.So central banks/RBI go below zero to:

a) Force Banks to Lend ie. Punish banks for hoarding cash.
b) Force People to Spend because If your savings in the bank are reducing every month (-0.5%), you will rather spend or invest it than keep it idle.
c) Weaken the Currency Negative rates make investors sell that currency, which makes exports cheaper and helps fight deflation.


Countries like Japan, Switzerland, Sweden, and the European Central Bank (ECB) have all tried this after 2014.


4. Does It Actually Work? 

The Problem when discussed in theory, it's brilliant but in practice, it's risky.

a) Hurts Banks' Profit: 

Banks earn from the difference between deposit and loan rates. Negative rates squeeze them.
b) People Hoard Cash: 

If the bank charges you, you just withdraw cash and keep it at home in a locker. This is called the zero lower bound problem.
c) Creates Asset Bubbles:

 Cheap money doesn't go to real business, it goes to stock markets and property, creating bubbles.


Japan tried negative rates for years and still struggled to beat deflation for a long time.


5. What is the CA Exam Perspective?

Remember this line Negative Interest Rate Policy is an unconventional monetary tool used when conventional policy (cutting rates to zero) fails to revive demand in a deflationary, liquidity-trap economy. RBI has never used negative rates in India, because India has historically struggled with inflation, not deflation. 


But you must know this for global economy questions.


Conclusion: 

Negative interest rate is like giving an electric shock to a freezing economy. 

It might wake it up, or it might damage the heart. 


Central banks/RBI  use it only when all other medicines have failed.

 
Vedanta Academy, Andheri East, Mumbai - 25+ Years | Only CA

B) Why would Bank charge you for Saving money? Sounds Crazy, but Japan and Europe did it to fight deflation. click to read more...

Just Imagine this,
You deposit ₹1,00,000 in your bank for 1 year & after 1 year you check your balance

It's ₹99,500.

₹500 is gone. No fraud. No hidden charges. The bank says, "Thank you for banking with us.". This is your negative interest.

I would slap the manager if this happens to me.

But this is not a story. This happened to millions of people in Japan, Switzerland, and Germany.

This is the most insane experiment in modern economics.

The Villain here is Deflation, The Silent Killer

We all hate inflation. Samosa in my child hood  ₹1, now it's ₹15


But economists fear deflation more than inflation.

In Japan in the 1990s, something terrifying happened. Prices started falling. And they kept falling for 20 years.

Why is falling price bad? 

let me tell you a real story so that you actually understand that deflation is more scary than inflation.

A young couple in Tokyo in 1998 wanted to buy a flat for ¥30 million. Their father said, Wait for 6 months, it will be cheaper.

6 months later, it was ¥28 million. 

Then they thought,  Let's wait 6 more months. Then it was ¥26 million.

They waited for 10 years. They never bought the house. They never bought furniture. They never spent.

When 12 crore people think like this, the entire country stops spending. Shops close. This is deflation. It's not a discount sale. It's an economy in coma.

Real Madness, Let's Go Below Zero!

By 2014, Japan had tried everything. Interest rate was already 0%.  0% means Free money. Still, nobody was borrowing.

Then the central bankers did something that broke 5000 years of banking history.

They said, if 0% doesn't work, let's do -0.1%."

This was like telling a patient in coma,

"We will now give you an electric shock."

The idea was evil and genius at the same time:

If you are a bank CEO and you park ₹1000 crore with the Central Bank/RBI, you will have to pay ₹1 crore as a penalty every year. Would you do that? Answer is No. You would run and give loans to anyone - even to a chaiwala at 1% interest, just to avoid the penalty.

And if you are a common man and your savings are melting every month, you will quickly withdraw and buy a car, a phone, anything, rather than losing money by keeping it in Bank.


Spend! Spend! Spend! That was the plan.

Did The Shock Work? The Funny Twist

What did people actually do?
In Switzerland, rich people bought bigger home safes. Safe sales went up by 300%. People thought, "Why to keep mpney at  bank & allow them to rob us? Its better to keep cash under our pillow for free.

In Germany, banks were scared to charge common people, so they only charged big companies. Small banks started dying because their profit vanished.

And the funniest part?

In Denmark, some banks started giving negative interest home loans. This means, you take a loan, and the bank pays you interest every month.  People were getting paid to take debt.


It was a complete madhouse.

The Lesson for us,
Did negative rates cure deflation? 

The answer is  Thoda sa, but with huge side effects.

It's like chemotherapy for the economy. 

It might kill the disease, but it also kills healthy cells (banks' profits, people's savings habit).

And negative interest rate is the proof of how scared central banks were, they were ready to break the basic rule of money just to make humans spend again.


India will probably never need this. We have the opposite problem - our samosa will never get cheaper. But as a future CA, you must know how crazy the world can be to revive economy.

C) Dark side effects of negative interest on economy?

1) It Kills Pensioners
Your grandfather lives on FD interest. If interest is negative, his retirement savings melt every year. In Germany, old people protested on streets against ECB (European Central Bank). It's a tax on the honest saver to help the reckless borrower.

2) Zombie Companies Are Born
When loan is almost free, even dead companies don't shut down. In Japan, they call them zombie firms- companies that should have died 10 years ago but are alive only because loan is free. This kills innovation.

3) Cash Becomes King
Economists thought people are modern but they were Wrong. When Germany's banks hinted at charging savers, people withdrew physical cash. There was a shortage of €500 notes and 1000-franc notes. Central banks realized: you cannot go below -1%, otherwise everyone will just keep cash in a trunk.

This limit is called the "Effective Lower Bound."

Could This Happen in India?
Almost impossible in next 20 years. India is a young country with 140 crore people who want to spend. We have structural inflation in food, oil, housing. RBI's biggest headache is controlling inflation at 4-6%, not fighting deflation.

But there is ONE scenario - 

If AI & automation destroy millions of jobs very fast, & demand collapses suddenly then even RBI might have to think the unthinkable.

As a future CA, you should watch the 10-year bond yield of Japan and US. That's the early warning signal.

The Philosophical Question
If you lend money, you get more back. Time has value.

Negative rates broke that rule. Time has negative value. The future is worse than today.

Isn't that scary? It means the central bank has no hope left in the future.

D) Indian Companies That Became Zombies (Before IBC Killed Them)

Zombie Companies are firms technically dead but kept alive by cheap bank loans.
Such companies are unable to cover interest from operating profit (EBIT < Interest) for 3 consecutive years, surviving only via evergreening - new loans to pay old interest.


Japan's negative rates made banks evergreen loans to firms with EBIT< interest for 3yrs to avoid NPAs. 

15-20% Listed companies became zombies, hoarding talent, undercutting healthy firms, causing 30yr stagnation. India uses IBC to kill them.


IBC - Insolvency and Bankruptcy Code, 2016  is India's Brahmastra against zombies. 

Before IBC, banks couldn't kill them. After IBC, they can.

1) Bhushan Steel - 

The King of Zombies
Debt: ₹56,000 crore. 

Profit for 5 years straight? Zero.
How it survived: Banks kept giving new loans from 2012-2017 just to show their old loans as performing. SBI, PNB all trapped.
End: Tata Steel bought it in 2018 under IBC. Now it's alive and healthy. This was IBC's first big kill.

2) Essar Steel
Debt: ₹54,000 crore. 

The Ruia brothers kept it alive for years through political influence and bank evergreening.
Fun fact: When it finally went to NCLT(National Company Law Tribunal), Arcelor Mittal paid ₹42,000 crore. 

Banks took a 40% haircut, but at least the zombie died.


(Haircut means the bank voluntarily accepts less money than it is owed to close a bad loan forever).


3) Jet Airways - The Flying Zombie
Naresh Goyal's Jet stopped making operating profit after 2007. 

For 12 YEARS it flew on bank money.
Banks gave loans because "it's too big to fail, 16,000 jobs." 

In 2019, SBI finally pulled the plug. It died.
Lesson learned here is, Sometimes killing the zombie is better than saving jobs temporarily.

4) Videocon Industries - Venugopal Dhoot's Empire
Debt: ₹59,000 crore. 

From oil to DTH to mobiles, everything was funded by debt, no profit.
Banks kept it alive because Dhoot was powerful. Finally went to IBC in 2018. Vedanta bought it for peanuts - ₹2,962 crore for ₹59k crore debt! 95% haircut.

5) Amtek Auto Auto parts company. 

Debt ₹12,700 crore. 

For 3 years, interest was more than profit.
This was a classic evergreening case where banks hid it as a "standard asset" till RBI's AQR (Asset Quality Review) in 2015 by Raghuram Rajan caught them.

How RBI Killed The Culture
In 2015, RBI Governor Raghuram Rajan did a surgical strike called AQR. He forced banks to stop lying and declare these zombies as NPAs.

AS  a Result our banks' NPAs shot up from 4% to 11% overnight. 


Everyone panicked. But it was like cleaning a wound though painful but necessary.


Then in 2016, Modi government brought IBC. 


Rule was simple: 

If you don't pay for 180 days, you lose your company. No more "bhai-bhai" with bank manager.

This is why India did NOT become Japan.

Your takeaway as a future CA:
When you do an audit, always check this ratio: Interest Coverage Ratio

= EBIT / Interest Expense.
If it's < 1 for 3 years = Red flag. It's a zombie.

Negative effects of zombie companies:

Negative effects of zombie companies go far beyond one bankrupt firm. 


They rot the whole economy.


1) Productivity Collapse
Zombies have very low productivity but they don't exit. Money, land and labour stay locked with them. New productive firms can't get resources. Japan's productivity growth fell to near zero in 2010s for this reason.


2) They Kill Healthy Competitors
This is the most unfair part. A zombie restaurant gets loans at 0.5% to cover losses, so it sells thali at ₹80 below cost. 

You run an honest profitable restaurant selling thali at ₹120. 

Customers go to the zombie. You die even though you are better. This is called congestion effect.


3) Talent Wastage
Young engineers and CAs join zombies for lifetime job security. They spend 10 years doing nothing productive just pushing file, no innovation, no learning.  Japan lost a generation of entrepreneurs this way. 


If Toshiba's dead suppliers had closed in 2005, those engineers could have built Sony's EV division.


4) Banks Become Weak
Banks keep evergreening to hide NPAs. Their balance sheets look clean but are actually full of poison. They stop lending to new startups because their capital is stuck. This is why Japan's bank lending to new businesses fell 40% between 2000-2015.


5) No Innovation, No Growth
This creates the Lost Decades. 

US had creative destruction: 

Dead companies die, new ones like Tesla are born. 

Japan had destructive preservation: 

Dead companies live, new ones never get funding. 


As a result Japan missed the internet, smartphone and AI wave.


6) Deflation Trap
Zombies overproduce to show sales and get more loans. Too much supply with no demand keeps prices falling. Falling prices make people postpone buying, which hurts healthy firms more.


For India: If we allow evergreening like before 2016, our IBC would have failed and we would be next  Japan. 


As a CA, when you see Interest Coverage Ratio <1 for 3 years plus continuous refinancing, you must flag it. its a Zoombie company.

 

SUMMARY

01

Introduction to negative interest rates

Negative interest rates in deflationary conditions mean central banks charge commercial banks a fee to store cash, forcing them to lend money and encouraging people to spend instead of saving.


When an economy faces falling prices—known as deflation—people stop buying things. They wait for prices to drop further. This stops economic growth. To fix this, central banks/RBI lower interest rates below zero.

02

What Is Deflation?

Deflation is a general drop in the prices of goods and services. While lower prices sound good, a deflationary spiral is dangerous.

When prices fall, businesses make less money. They cut jobs or lower wages. People have less money, so they buy even less.

03

 What Are Negative Interest Rates?

Normally, banks earn interest when they keep their extra money safely stored at the central bank.

Under a negative interest rate policy (NIRP), the central bank charges the commercial bank a fee instead.

Think of it like a parking fee for your cash. The central bank wants to punish banks for hoarding money.

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How the Policy Works

Central banks use negative rates to break the deflation cycle through these steps:
Banks must pay: Commercial banks lose money by keeping cash at the central bank.
Lending increases: To avoid these fees, banks lend money cheaply to businesses and people. Spending rises: Consumers borrow money at low rates to buy houses, cars, and goods.
Prices stabilize: Increased demand stops prices from falling further, which helps stop deflation. 

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A few major economies tried this strategy when inflation stayed too low: 

The Eurozone: 

The European Central Bank introduced negative deposit rates in 2014 to fight low growth and falling prices. 

Japan: 

The Bank of Japan adopted negative rates in 2016 to push banks into lending more. Switzerland and Denmark: 

Both used negative rates to stop foreign money from rushing into their currency and making it too strong. 

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conclusion:

The idea sounds smart but negative interest rates create major problems: 

Hurting Bank Profits: Banks cannot easily pass negative rates on to regular savers without causing people to withdraw physical cash. Lower profits mean banks lend less over time. 

Cash Hoarding: People and businesses might pull their money out of banks and store physical cash in private vaults to avoid fees. Risky Investments: Desperate for returns, investors chase risky assets like stocks or real estate, which can create dangerous financial bubbles.

Negative interest rates are a high-risk tool used during severe deflationary traps. They force money to move through the economy when normal tools fail. However, they can stress the banking system and lead to unintended financial bubbles if used for too long.

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WHY GOVERNMENT ENTERING OUR CLASSROOMS.

Taught for 25 + Years. Today I Feel, Chosen the Wrong Field.  

Monday, 7th September 2026 - WRITTEN BY SHARMA SIR

 I still remember my first batch in 1999.

1 student "Himanshu Asrani". One small room at my Home. One 5X5 foot white Board. No AC. No marketing.

But there was honesty. There was respect for a teacher.

Today, after more than 25 years, after teaching thousands of CA students, after seeing my students become CAs, CFOs, and parents once my students who now send their children to me - I am saying this with a very heavy heart:

I feel I have chosen the wrong field.       

Not because teaching failed me. But because we, as an industry, have failed teaching.

Why is the Government Entering Our Classrooms Now?

Today the Central and State Governments want to interfere in our working. They want to make rules for us, audit us, control our fees, our timings, our admissions.

Why did this day come?

Because of some class owners who are not Teachers. Those who made education a real estate business.

Because of their misdeeds, today an honest teacher who teaches 40 students with all his heart is also being called a looter.

The government thinks we are all the same. And honestly, can we blame them? We never stopped those wrong people ourselves.

My Appeal: Let's Shut Down for 6 Months

I know this will sound shocking. Many of my friends will call me mad.

But I appeal to all coaching class owners in Maharashtra and India - let us voluntarily stop our operations for 6 months to 1 year.

Let us close our shutters. Let us go home.

And let us give this time to the Government. Let the colleges and schools handle it. Let the government teachers take the responsibility they are paid for.

I want to see what happens in those 6 months.
1) Will a college professor teach FR till 10 PM at night to clear a student's doubt?

2) Will a school give personal attention to a repeater student who has failed twice?

3) Will the system stand without us?
In 6 months, doodh ka doodh, paani ka paani ho jayega.

Parents will understand. 

Students will understand.

And most importantly, the Government will understand  who is a real teacher, and who is a businessman wearing a teacher's mask.

This is Not Against the Government

Please don't misunderstand me. This is not a protest against the government.

This is a request to the government: Please, you take charge.

And this is an appeal to my fellow teachers: For once in 25 years, let us be united. Not for fees. Not for admissions. But for our Respect & Dignity.

If we do not take this bold step today, tomorrow there will be so many rules that an honest teacher will not be able to teach at all.

I have given 25 years to this field. I don't want the next 25 years of young teachers to be spent in filling government forms instead of checking students' copies.

With pain, but with hope,

Sharma Sir s Vedanta Academy
Giving Right Angle To Students Life
Andheri East, Mumbai

If you are a teacher and you agree with me, please share this. Not for me, but for our profession

 

REGULATE PRIVATE SCHOOLS & NOT PRIVATE COACHING CLASSES

Friday, 31st August 2026 - WRITTEN BY SHARMA SIR

Why is Government Behind Private Coaching Classes? Regulate Private Schools of Politicians First.
Government says it wants to regulate private coaching classes.

My question is - Why?

Who is preparing students for IIT-JEE, NEET, CA, UPSC, MPSC? Is it schools? Is it colleges? No.

It is the private coaching class teacher who is working 14 hours a day, checking papers whole night, making notes on Sunday while schools are closed.

Schools and colleges have failed to prepare students for tough professional exams. Everyone knows this. A student goes to college only for attendance. Real learning happens outside school/college in a small coaching classroom with efficient hardworking teacher.

And government wants to regulate such Hardworking & Honest institutions?

Who owns a private coaching class?
A teacher. A middle-class man who was good at one subject. He made his hobby his profession. He didn't inherit money. He built his class from zero. One bench, one board. His only capital is his knowledge and his hard work. He pays rent, he pays tax, he gives results.

Who owns a private school?
In 80% cases in Maharashtra and India, a private school is owned by a politician, his wife, his brother or his trust.  

A coaching teacher started teaching because he loved teaching.
A politician started a school because he loved earning.

Please Compare & everyone will understand the reality:

1) Private Coaching:
Fee: Rs. 15,000 - 60,000 per year for rigourous 8 hrs per day for all 7days in a week & 30 days in a month till completion of syllabus with weekly test & after completion of syllabus 2 mock test. Even after this if student fails, parents question teacher. If result is bad, class shuts down next year. Full accountability.

2) Private School owned by Politician:
Fee: Rs. 1,00,000 - 3,00,000 per year. 

6 hours working per day with one or two proxy lectures on atleast 3 times in a week.

At time of admission huge Donation is also taken, Uniform, shoes, books - all from their own shops. Conducting exams, checking papers but If student fails, they say "your child is weak". No accountability. And you cannot even complain because owner is a local MLA.


Which one needs regulation, private schools or private coaching classes?

Government wants to put CCTV, fix fees, fix timings, register every coaching class. Why? Because coaching classes are soft targets. They are run by honest teachers who will stand in line and fill forms.

Can government dare to put same rules on private schools?

Can government dare to ask a politician-owned school:

1) Show your actual profit?
2) Why are you charging Rs. 50,000 for a school trip?
3) Why is your teacher getting Rs. 15,000 salary when you charge Rs. 1 lakh fees from more than 2000 students?

Because coaching class owner is a teacher. He has no political power.


Private school owner is a politician. He makes the rules.


what nobody wants to address:
Coaching classes exist because schools have failed. If schools taught well, no student would need to go to coaching at 7 AM in the morning and then again at 6 PM in the evening.

Instead of improving schools, government wants to close the only place where actual learning is still happening.

Don't regulate coaching classes. Support them.

If you really want to regulate, start with private schools where education has become a real estate business. Start with colleges where professors don't take lectures for months.

A coaching class is not a business. It is the last classroom in India where a teacher still teaches with honesty because his name is on the board, not a trust's name. 


Regulate the businessmen who became educationists for money. Spare the teachers who made their passion as profession & not bussiness. These Businessmen includes some coaching classes also  who for their personal gains run integerated courses. we are against such institutes. Take action against them but dont target all coaching classes.


Please, please dont politicise these views & try to support, please spare us & target those who are not doing any value addition to students life. India's future generation will be in darkness if this proposed bill becomes an ACT.

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 REVIEWS

31/8/26 (sunilsunildalvi@gmail.com) 

"I totally Agee with your thoughts. By taking lectures from 7am to 9pm , teachers of coaching centre works throughout his life with minimal earnings "

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PROF. SUNIL DALVI  

 04/09/26 (heenatharia7@gmail.com)

"As a student perspective the concepts which we couldn't understand in school/colleges were taught with examples and logic in classes. Teachers of coaching classes solves doubts of each and every student,  give personal attention and as well motivate them."

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CA HEENA THARIA