Monthly Archives: August 2009

Diluted Illusions.

Illusion is a false  perception of reality.A semblance, a phantasm,that exists in imagination,but which is a misconception in reality.

An illustrative narration of this kind of wishful thinking  sent chill down my spine. I was terrified, and upset, once I heard the story of a ghostly apparition every day , when the clock struck twelve.

I , as a child , lived in a sprawling bungalow. with host of servants around. We were six , four boys and two girls, born one after another , in quick succession with very little intervals. We ,after school hours, were put to hard tasks of extra curriculum of music, and dance. We retired very tired, and fell asleep once we got into our bed.

Well this was our routine during school days. In summer we were sent to the beautifu hill station Of Coonoor. We were left free.We went on a trekking, and had the whole day at our disposal. The gardener there , used to keep us engaged with stories of ghosts. Every day , we sat round him to hear the  intersting , horrifying episodes, while our parents were busy with their social calls. The gardener, an old man, opened out of his  imagination. ,which ept us on toes.

One day , he told us of  the occupant of the house down below, who died a decade back. The English man, lived in the houise all alone. At night there was a strong hooting , around his parlour. For days he could not trace the cause . One day , he kept vigil. At midnight, a stout scotsman  walked down the alley with a cigar in his mouth, and a walking stick in his left hand. He opened all the doors of the house , one by one, wiht ease, went straight to the kitchen,  took a large piece of a baked pie, gulped it, drank hot chocolate . He  left the kitchen, with a bang, closed the door witha slam, enterd the parlour, hooted for a shiort time, then raced out of it , to the foyer,. He swiftlu passed the main entrance, locked the main door and slipped of in a hurry. The next day , it happened, the next and next, it continued, as per the timetable. The Man looked decent, educated and was in pink o his health. He was dressed in finery. The English man , got accustomed to the  schdule,that he  eschewed the fear romhis mind. He slept peacefully therinafter.

We were dumbfounded. All the six of us sat motionless. It was unbelievable, yet believable. It was an illusion, but got diluted by the  regularity and less dicey  ventures.

Interpretation Of Banking Norms

Banking and Finance is a heavy subject. Science and most recently computers, information technology have been in popular circulation , as subjects of great interest . Apart ,from being  interesting , they are lucrative . The software hype has created billionaires in a short time. No wonder ,the craze for such courses is growing in supersonic speed.

Banking  may seem old, but yet it is new. It has been in existence from time immemorial. It gets transformed  and takes up a modern perspective ,according to the period. Its norms are altered, modified , and revoked, freshly added in respect to changing eras.

This measured ramifications  render the banking subject almost new. An absolute mastery of the subject is a near impossibility.The reformations are carried out ,after thorough analysis.Committees are set up to  discern ample possibilities  and vivid scope  that are available to promulgate vast interactive transcriptions.

The committee’s are  formed ,with great care and with greater expense.It takes a minimum of three years  to present its report. The conclusions are not accepted in full form. The clauses ,which get the approval of the majority of the bankers are assimilated . The balance, is shoved into the oblivion. The regulations concerning the corporates, are widely acclaimed. The strictures that deal with credit cards system also find a cordial welcome. But , that which deals with the employees , insinuates a confusion ,so that the specific recommendations centering on these issues get buried.

The interpretation of the norms, as put forth by the  committee , differs from bank to bank. This contradictory readings jeopardise the customer. The Reserve Bank Of  India , set up the Narasimhan Committee to give a face lit to Banking concepts. Its reports , present a rare insight on the NPA’s .  Accordingly, the non performing assets ,should not find a place in the balance sheets of the banks. Banks , practised a, phenomenon,which apparently predicted a distinct distaste to their integrity. They completely cooked up accounting details. They showed in their balance sheets , that they have wiped off the non performers, by collecting their dues., which in  reality ,  was not performed. Narasimhan Committee , firmly ordered that this insincere, fictitious proposition should not be carried out. The window dressing has led to various anomalies that extend a vast deformity  and mandatory difficulties.Public sector banks in India , have come with their own definitions, which are sometimes ridiculous, but mostly very risky and erroneous.The gross default has led to  a disaster unpredictable.

Goose Is Cooked.

Loopholes in accounting has led to many fraudulent  practices.Window dressing of balance sheets, cooking up data’s, hiking sales,jacking up share prices are few insolent  intrigues that instigate deceiving measures and disintegrating materials.

Window dressing accounts for 50% of fraud in corporates.Share prices are enhanced, its valuations are hiked ,such that promoters and top management benefit most.Downturns or recession promote an acceleration in frauds .Promoters engage in misconduct,commit frauds and  they easily justify their action.When there is high profitability, smooth flourish , the mishaps are buried deep. When the  essence of   paucity is experienced,  the irregularities are thrown open.

Loan portfolios are unequally disbursed. The top brass account a very low non performing assets thus entering into a world of  notoriety.False entries  are made.Fictitious inventory is maintained in production and sales. The companies pay statutory dues forgoods not manufactured.Corporates , thus lure the investors, private equities , and mutual funds , by projecting feigned systematic profit .

Forensic experts have a lucrative tenure, as most mutual funds and private equities hire them to decipher the digressions. These agencies are making tonnes of money.

Apart from the top management,there is a widespread anomaly among the employees. The procurement related fraud are surging leading to a definite leakage of funds.

Indian companies  , awry of expenses, subdue the misconduct , by compelling the erring official to resign. This man gets a plum job in another company , commits the same mistake, but let free  for fear of  abnormal costs. This individual ,will seek job elsewhere. he will land up in a bigger company, with extended access to perform  a deeper crime.

Checking their duplicate  profile , then and there, will conduct a disciplined behaviour, thus instilling an undeterred confidence in the investor’s mind.

Ethic is the vital   provision in business. Confidence is the enriched quality of business. Straight movement is an emphatic  idiom of business.

The cooked goose  idiomatically depicts hidden untold slanders and  much ruptured ulcers

An Ode To Economy

A mighty blow,

A deadly shudder,

A grotesque  caricature,

Economy entreats.

A severe recession,

A fathomless submission,

A mandatory evidence,

Economy  beseeches.

A chaotic congurence,

An erratic  corruption,

A feigned pollution,

Economy  implores.

A dashing wreckage,

A dithering frigidity,

A rigid  morbidity,

Economy importunes.

A turbulent tirade,

A ghastly turmoil,

A global whirlpool,

Economy cries,

A wretched  misappropriation,

A  frenzied approximation,

A disturbed provacation,

Economy  solicits.

A defeating theorem,

A seducive logirithm,

A fumigating myriad,

Economy  weeps.

A solemn appraisal,

A definite  proposition,

A scruplous system.

Economy will rise.

A serious attempt,

A sincere work out,

An ardent programme,

Economy will grow.

A quick response,

A firm approval,

An intricate design,

Economy will thrive.

Everything Everywhere.

You find everything everywhere. You see men, animals, vehicles, carts,crossing the roads ,as they wish. There is no  adherence to traffic rules. Signals blink without any relevance to the traffickers.The one way  signs have no meaning. The Police make a ridiculous  hand movements, which provoke  ridicule.You must be taken aback, as where on earth such things take place. Your country penalises high speeding drivers, charges those who pay disrespect to traffic regulations. Even in midnights , you follow the rules meticulously. Wait for the signal, and then proceed. But , here in our country, such things never happen, if they do occur ,then it should make to the headlines of top news.Can you make out the country  with all the clues ,I have put forth. No, then , will you try again , or shall I give the answer?Well , I do not want to test your patience any more . It is India, a land of diversity.

Animals are kept in the Zoo ,quoth my friend. Yes , may be in your country, but In India , you can find them everywhere. Dogs, Cats, Cows, Donkeys, Horses, walk at ease in the Indian roads. Elephants ,reared in the temples to grace the festivals , are taken for a stroll by mahouts,round the town.With dangling bells around the neck, the gigantic elephant walks royally, but the mahouts lead them to every house,forcing them to bless the inmates, and in return, they give cash and fruits to the elephant , which is considered as divine by the Hindus.

My friend was alarmed to perceive the chaotic movement of the vehicular transport.She asked me in a subdued tone, How is it possible to drive in such confused condition?I  marvelled at her plight. I made it clear ,that Indian drivers cannot negotiate when there is perfect  discipline. They drive with pleasure, while halting for  a sudden crossing of buffaloes, an immediate protrusion of a two wheeler, an unexpected  intrusion of a bullock cart, or a tricycle.

India ,is a land bubbling with enthusiasm , teeming with population,rejoicing in disorderly sensibility.


Obama’s Strategic Move.

President Obama makes up his mind to appoint Bernanke as Fed Chairman,five months ahead .Economists feel  that he is the right choice.He faltered at the early stages, but learnt a lot by mistakes.He made a mess of the foreclosure crisis.Obama said  that his temperament, courage and creativity helped to prevent another Great Depression.

Bernanke fumbled  under pressure in not finding a way out to take over Lehman Brothers.He has revolutionary ideas.He has cut rates and opened a discount window to more firms.Economy is showing recovery, but still unemployment is looming large.He has to pay  a serious consideration in putting things together.

His performance has won him a grade of D+ -69  as calculated by the economists .He was awarded  low marks below 20.His median grade is 80.But , if he could pull back the economy to reasonable status , then he will go down in  history as one of the greatest fed Chairman.He has to deliberate on the vast expansion of the balance sheets, and  has to screw up the money supply. He has to tread a careful path.

Stock futures  pointed to a moderately high opening.Bernanke, if chosen, vows to restore”more stable financial and economic environment in which opportunity can again flourish and in which Americans hard work and creativity can receive proper awards.”

Filing Bankruptcy

Bankruptcy  brought with it a sense of shame, a degree of  ignominy,,a circumstance of disgrace, a feeling of regret and a susceptibility to embarrassment. Now , the trend has took a different turn. A twist  which accumulates a lot of convenience,which bears a stock of opportuneness which provides  a volume of accessibility to convert or more precisely minimise the debt, by gaining protection under bankruptcy.

Recession has not only affected banks, financial institutions,autos , housing , but also media.Readers Digest U.S, has filed bankruptcy under chapter 11, just to get a waiver  .If the court allows this remedial petition, its debt load will be minimised to 550$million,from 2.2 billion $.

This is only an adjustment in the balance sheet, quips ,one of the spokesmen of the company.

The other editions of Readers Digest are not affected by this move.Walter Beyleveldt,made a statement that U.S edition’s direction will not affect Australia.Handyman and Health smart magazines  subsidies of Readers Digest , Australia , have increased the revenue by 7%, resulting out of advertisement.Readers Digest ,Australia is not  in any trouble foreseen or unforeseen.

Anyway, debt is the crux of the problem. Debt strapped Readers Digest is not secure.It may be takrn up bygroup of lenders led by JP.Morgan Chase,or will seek  to take to the company public again or sell it within next few years.Ther is no paucity of visible long time stake holders.