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Economy subscriptions thoughts

Building Planes In The Air-Not Castles


The Indian sky ,which has a traffic jam , is going to be freed by the restrictions that are going to be imposed by the Oil companies on few airlines. There was  a sprout of aviation companies recently. They were having fast take offs. They grew in supersonic ” Jet” acceleration. They  took to the sky imperiously as”Kings’ ascend the throne.They were ‘Paramount ” in fame. They added “Spice” to travel.The “National Aviation’ is a big question mark.

Murali Deora , the Indian Minister for petroleum ,has come out with the details of the overdue payments by Kingfisher , leading the list with  960 crores ,followed by Jet  with750 crores,National Aviation company 472, Paramount -25.32 crores, and Spice jet -16 crores.,to three petroleum companies.If the airlines do not hasten up their repayments, then action will be taken according to the commercial agreement that was signed by the Petroleum companies and  airlines.

The datas seemed to be alarming. While the airlines are having such a neck to neck situation, how do they keep things running , not only smoothly, but making public announcements that they are going to purchase planes . They are going to enlarge the destination maps.

The financial reporter has a duty to weigh the data’s before he puts it in black and white. the reporter Of Business line a fortnight back , had come out with the purchase of ten planes by paramount Airways. the managing Director ,of the airlines, had announced that he is making waves , by introducing Business class  flights. Now ,he is getting into the arena of bringing more cities into his regime. The report was so exciting. But the Petroleum Minijster’s proposition of taking action against Paramount Airways is disarming.

King fisher Mallaya is a dare devil. He appears in the scene like an apparition and disappears in a hallucination. His King fisher airlines in sparkling red ,look so cutte. The service  is excellent. As if in a stroke, he bought the low cost airlines Air Deccan. His admiring courtship has virtually slipped to back levels when we hear about his loans. His airlines is in red.

The Jet Airways, which  revolutionised Indian air traffic,is rejected by its impressive debts.Naresh Goyal, the mentor of Jet airways , was in news when he tried to conclude Jet -Air Sahara deal.But , the deal dropped dead . Later he sacked  a fine percentage of his employees, one fine evening.When faced with stiff opposition, he shed crocodile tears , and called the dismissed  work force back. Now , he is in the limelight as a defaulter.

Business , whether it be a petty shop, or a conglomerate should propound ethics, should have a solid base, and strong fundamentals.. It is easy to build castles in the air, but not planes. Castles depict imagination,according to the saying,but planes carry flesh and blood,ambition and aspiration, love and affection. So , a better strata of reality should land before each take off.

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Trade And Commerce-The Indian Way.


Business lacks ethics, in general,more so in India.The righteous path, the direct approach, the minimum gain, and maximum satisfaction  are the four virtues of  trade. But ,such a straight forward scripture is an outdated  ,obsolete unrealistic ideal.

Commerce is a transaction, between individuals,between companies,between manufacturers,between nations.It is similar to barter of yore. In primeval ages rice was exchanged for metal, wheat was  bought by selling befitting quantity of   vegetables,fruits were procured by disposing cloth,meat was transacted for fodder, cattle were bargained for provisions. This system knew no currency,Money was an alien word. The trade had its own course of movement. There was no intermediaries, no brokers, no transaction fee, no commission, no service tax, and no sales tax. All these “no’s”,kept things in beautiful shape . The progression was present . The durability of prosperity was exemplified. There was consolation.There was enough pride. There was enormous happiness.

Later on, Trade and Commerce underwent a metamorphic transcendence. The currency was introduced, to simplify the process. Instead it muddled up the entire industry. The Pandora’s box was let open. There was an en wrapping methodology of  chaos.The currencies took different names, such as dollar, pound, lira, rupee.They also had varied values.They were in proportion to the gold reserve of the respective country.

With money’s advent, the hornet’s nest was resurrected.The business practice assumed a significant deviation from the accepted norms. The Indian way was a predominant throttle that dumped the integrity,and sincerity to the gra ve.The Indian businessman took law unto his hands. He hoarded goods, shelved them in godowns, bribed the officials, and entered into unholy nuances thus demeaning the sanctity of business. Trade , is a child’s play in his hand.Commerce is a puppet like show to this Indian tradesman. He makes politicians dance to his tunes.The cabinet is at his beck and call.The policies are framed as per his wish. The rules are amended as per his whims. The reinforcement of schedules are according to his fancy.The banking sectoe are under his thumbs. The stock exchange dangles to his nods and nots.A dissenting voice is subdued either by force or by money.

The Indian top businessman moves about in kingly dimension. The export and import are a branch of his manipulating majors. Thr tricks he let loose are impressively baffling.The  scheming ,he  deploys  are insensitively wicked.The connivance, he converges is irradically contemptuous.Yet he makes merry,at the expense of his nation. Yet he revels in gaeity at the cost of the people.Yet he enjoys ultimate bliss  foresaking the prosperity of the country.

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Textile Industry- No Growth- Value Abundant.


A large scale erosion has taken place, shelving the once promising textile industry to the back quarters. Textile manufacturing carried a significance in the industrial revolution  experienced  all over the world. It threw  huge employment opportunities. It gave rise to a cluster of high profiled ancillary industries. It proved to be a safe bet to the bankers . It earned in volumes , making the promoter extremely rich , and the worker extraordinarily flushed with funds.

The charm of this cloth and yarn manufacturing process , was lost , when the reflection of high wage structure, high rate of interest, high cost of power, and still higher cost of raw material  loomed large.. The Western countries , once a haven for textile manufacturing, lost its wicket and was bowled over., by these rising claims.

The Indian Manufacturing enjoyed a monopoly for a few decades . The victim of the high inputs was the centres located in North and West. They were knocked down  The industry, turned south. The  Textile sector was flourishing for decades down South , but succumbed to the escalation very quickly, leaving a vast work force bereft of food and finance. The promoters , who once spun money , have run away from the avenue for fear of imprisonment , as their liabilities have mounted so progressively .

The Southern India  Textile show  now ,is the grapple of awesome predictions, mangling cotton parties, manipuating financiers , harried workers, irritated creditors . This suffocation has made the industry , which was a cynosure of all eyes before, as an itching , irksome depiction .

One cool spot amidst  the hot desert is the appreciation of the land which hosts the textile mills, The mills in Mumbai, have assumed a sky rocketting value , as the premises have been drawn to city , duet o  expansion . Land is a rarity in Mumbai. These lands , in hectares were bought at throw away prices  long ago, have reached a high value  that is unbelievable and unthinkable. So , is the proposition down South. A land which was acquired in hecatares for a few hundred , is being quoted in millions and billions. The scenario of manufacturing hubub has assumed the back drop of real estates nad pose an exorbitancy and expensiveness almost unheard of.

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Airlines Making Loss


A global loss of 9 billion dollars is blinking hard at the airline industry. Reasons  impacting this huge loss are global recession,cost of government micro regulation,crazy taxation and partners abusing the monopoly  power.Air cargo demand is expected to decline by 17%. Passenger demand is expected to fall by 8%. Fuel accounts for 23% of operating cost.The crude oil fell to 51$ and now has climbed up to 70$.

The industry , which got an abnormal lift  in recent years , is falling into a disorganised shape , as there is no uniformity  among various operations spread all over the world.The partnership and consolidation  worked out well for a few years. Now , there is an assumption of setback, as most airlines have made huge losses in the operating year.

Airlines need the same commercial freedom as most other industries enjoy. To get into the road of prosperity, we need a prosperous trade and a juvenile manufacturing accessibility. It is business which brings in wide travel, and extra circulation of money to sustain the expenditure.When this commercial activity spells gloom , the traffic gets minimised , leading to less flights , which in turn protrudes into lesser income.

The maintenance of this high profile travel cart is extraordinarily high. The salary and perks of  the flight officers, the air hostess’ , the stewards , and the ground staff, also call for a gross disposition of funds. The air tax and air congestion charges,  provoke the operators to charge the passenger a voluminous amount , that unnerves the travellers. The tax portion , is equal to another ticket cost. The wary passenger, shies away from this high handed expense , resorts to other modes of transport.

A comfort becomes a costly nuisance. A strictly positive travel has assumed a negative trend ,driving the enthusiastic persons far away from the vicinity of air travel. Wooing the customer was a difficuly once, but driving them away by spiralling fare has become a facility  easy.

A congregagtion of airline operators should  be called for. The imposition of uniform fare  should be implied. The airlines should cut short their extravagancy in deputing staff by minimising the necessary personnel to a single flight, providing  healthy food , not sumptuous delicacies, and extending comforts not luxuries to the travellers. The timing of the flights will be for a minimum of 50 mins and a maximim of 36 hours. These bouts of travel can be well managed with pleasure  by the promulagation of strong basic amenities well afforded and right diet well prepared.

Will the airlines look into these aspects keenly ?

 

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Relaxing For Reliance, Taxing The Mass.


The major policy decision of the newly formed Indian government is to free fuel prices from State.Oil minister Deora told reporters “It will go to cabinet.It will be discussed soon, within six weeks. The main beneficiary  is Reliance Industries, which will reopen its retail network.

As congress has formed the government on a strong base, away from the communist clutches , the market based fuel pricing will turn out a reality soon. The subsidies that were imposed to keep the price under control will be withdrawn.The wide fiscal deficit that arose out of artificial suppression of fuel price would be reduced , if the state delints itself from fixing prices.

Market driven pricing also will curb the use of fuel in India.These aspirations of the congress government will find a swift approval in Parliament. But the uproar and upheaval among the mass are hard to predict.

India , is a thickly populated country, with the majority depending on public transport. Once the subsidies are taken back , the fuel will surge high , resulting in the increase of fare in transport systems. The elections  are over, and the people have voted congress to power, with the desire that a stable federal government will bring growth and prosperity to the nation. This immediate decision of Manmohan singh  cabinet ,is a bot from the blue. The governance , instead of aiding the mass, is allowing a giant industrial power to renew its retail network, thus working significant profit.

The major oil companies . Indian oil, Bharat Petroleum, and Hindustan Petroleum corporation , stocks rose between 8-15%.Deora has assured that the he will see to it that fuel reach people at the right time and at the right price.

The sustenance of deregulation is  a big question. How long? and How well?.Crude oil is  making a forward move. When the price reach a high of 75$ , the plug in of deregulation will phase out. Kerosene prices are sold in  public retails with a huge subsidy , will shoot up , leading to a chaotic trend , as the majority depends on it . The extension of price hike in this sector . that is kerosene , will trigger a mass agitation. It looks like a political blunder.

Governance is a sure ,spectacular ,eventful ,sprightly affidavit. The essence of it lies not in haphazard  ,hurried provisions but in meticulous ,well planned, thorough thought out operations.Majority and strong base should not be misunderstood to be autocratic  and  dictatorial evidence.

 

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Debt Recovery Tribunal Of India


The Debt Recovery Tribunal Of India , DRT in short, has been biased in resolving the cases. It has not held a balanced view, nor taken a juxtaposed decision in most references. It has all along been the voice of the banks and financial institutions,however much the defaulting companies have a strong  base and just arguments. I used to wonder , then why this body has been set up , with branches and with officials picked from the judiciary and Banks.The enormous expense incurred due to the formation of this tribunal could have been avoided. The representation of the institutions ,to this tribunal, is just an eye wash, and a mere time consuming tactics.

My sincere advice to the companies is never become a defaulter, if at all you slip into negatives, try to pay the amount that which the bank demands , and come out honourably. Do not wait for any mercy, any compassion, any consideration. The lenders never will , nor the tribunal ever would. Arguing the case , is an additional burden to the already battered company. By burden , I mean , the finances and the mental turmoil.

A latest new clipping , brought ,to light  .discrepancies of a case settled. The central Bureau of investigation, has taken action against the erring officials. The Bank has claimed an amount, compensating to the value of the security. The DRT recovery officer, has undervalued the security and settled thes case. This is the complaint of the bank. The bank feels that the officers of the tribunal must have been bribed by the defaulter. .It may be a correct assumption, or may be a false statement. We should not make comments , as the matter is in the court.

Well, will the Central Bureau of investigation take a similar step, if the affected company puts forth an accusation?If the company also tells that the deciding authority has had underhand dealings with the bank,so the case has been given a wrong direction ,what will happen? The issue would have not come to the table,and would have been thrown into the drain.

The Presiding Officer, the recovery officers, the inspectors , should have a penchant for truth,,a valid discretion for merit, a disdain for illegalities and a strength to shun nefarious activities.

Let us wait for the dawn of truth and justice.

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Economy subscriptions thoughts

State Bank Of India -High And Dry


The influence of State bank Of India , though for negative reasons, is so deep , that I am finding it difficult to wean away from it.

Royalty brings with it grandeur. Massive enormity forces us to give respect. Extensive reach enables us to admire. The core activities make us realise the vitality. The powerful interaction leads us to ease. The flow of wealth renders us awestruck. This is the normal consequence of anything true and great.

State bank Of India , to many like me , presents a not too  affable experience and an infuriating reminiscence. The attitude towards the constituents is animosity. The sanction of loan is subjected to unusual tardiness. The facilities are split, broken , and delivered in fragments. The assurance from the customer is verified, , crosschecked , scrutinised umpteen times. But their confirmation , is a dangling dilemma, concurring to the notifications.They take much, but disburse little. While processing the loan,they  pose to perform undue  caution, enacting lot of fuss, impelling extra stress .

Gaining entry into the portals . is a strain irrespective of merit and genuinity. I took pride ,when I became a constituent of State bank Of India , twenty years back. But , I regretted  this step  , after a few months of my dealings. The  accessibility was so difficult. Every small references has to be sent to the Local head office. The Branch , the Regional Offices are a dummy existence. A wholesome expense is met in maintaining such inert offices which are under spineless officials, who  find safe hideout in the omnipotent Local Head office.

The General Managers ,  are tied up  with issues , that they are hard pressed for time. The Presidents and Prime Ministers, of nations, meet people, hear their grievance , in the midst of heavy schedule. The high up officials  of this bank , have no free time to  lift their head to acknowledge a person. Such is their busy work out.  It seems that tough programmes enforced to take major policy decisions  make them unapproachable.These pretensions are amusing

 In places , of worship, in venues of  exhibitions , in areas of public meetings, the entry is difficult but the exit will be easy . But, in State Bank, getting into it is tedious. Getting out is alarmingly painful . The strength , the valour, the tolerance, the  money , all get sucked up . The customer is a skeleton of his self , both physically and in spirit.

  Gandhiji  has said, that for any business to thrive the customer is important.It is the other way round in State bank Of India.

 

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State Bank Of India’s Pathology


 

My nineteen years interaction with The State Bank Of India , prompts me to do a research on its abnormal behaviour. The structural pattern of the  bank , may look extremely  solid  and very strong, but in actuality is full of  eccentric porous  and very weak. The functional procedures ,may appear grand and highly disciplined, but in reality is flippant and extravagantly  chaotic.

Pathology is a medical speciality.It consists of anatomical ,clinical, forensic, veterinary, and plant studies.The pathologists are physicians ,who diagnose and characterize disease in living patients by examining biopsies or body fluids.

State Bank’s pathology  is a financial speciality. It considers the credit worthiness, background ,requirement, potentiality .  capacity of the creditor. The appraisal officer , conducts a thorough survey of the intricate details and ratifies the proposal.This is the original worksheet and a normal spread out of any financial institution  But  State Bank has its own formulas. Anomalies and  infringements creep in. The financial pathology undergoes a change. The identities reveal a catch. There is no thumb rule, in extending loan.The extension is lengthened  to high flung industrialist. The limit is curtailed to humble upcoming entrepreneur. The imposition of regulations vary according to specific norms ,formatted by the Committee.  No official takes up the responsibility for the alarming discrepancies.  They place  the claim  on the committee.This proves to be a peculiar significance.

What is a committee? It is basically a group of people officially delegated to perform a function , such as investigating,considering, reporting  or acting on a matter.The committee has on board ,human beings  with life and blood. It does not comprise of demigods, who descend from the other world,who are unaware of the idiosyncrasies of the commercial and industrial genre.Unfortunately , the Committee behaves in a quixotic manner , completely irrelevant to the day to day progressions. It also succumbs to pressure and acts  in a perplexing autocratic deviation

.Medical pathology facilitates treatment , by making a serious attempt to acquire knowledge  related to human disease.

State Bank Of India’s  pathology obstructs  prosperity  by creating a series of harassment  to diffuse  stoicism  leading  to cutomer’s  extinction.

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State Bank Of India’s Lexicon


Compiling  a wordbook is a tremendous task. A lexicon consists of the vocabulary of a particular language, persons,field, social class,etc. State bank Of India , has formatted a beautiful glossary of terms pregnant with meanings , connotations and latent inferences , which could be understood only by its officers. The interpretation of the terms are entirely  mind blowing . Never would have anybody , with the reasonable level of education, and a rational degree  of comprehension , accept the indications of the reputed bank’s presentation, nor would have thought or more so dreamt of the definitions of certain common phrases and terminologies.

The experience , I  am having with this presitigious bank , would make anyone spellbound and speechless. Such are the whims and fancies of the officials. A two and half a year back , I got a statement from the branch , of which I am a constituent, that there is no due in my  company’s loan account. This , unobtrusively , I procured to finalise my company’ s balance sheet. Well, the job was done .  The filing of returns and other routione check ups were accomplished by my auditors.So far , so fine.

The gigantic Bank , the biggest in Asia, came with a powerful thunderbolt . almost as massive as its size, calling me to pay further amount, a lumpsum , saying I have not repaid to the ” Full satisfaction ” of the Bank.The penetration has created a dent in my complacence. I fumed ,I shook in  anger.What is their intention?What do they want from me?More money, more money. more money.Where to get? How to get?Why should I pay?. My ramifications  have fallen into deaf ears.This is a typical illustration of their inventory of words. Many more  are there to prove my point, but I restrain myself from exhibiting this one vital concordance.

The lexicon of State Bank Of India,is a worthy contribution to society in general and to the financial institutions in particular. The dictionary is an asset to the world.It should find a place in every library .

Kudos to State Bank Of India .

Long Live the Officials.

May their tribe increase.

God be with them

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Economy subscriptions thoughts

Infosys Too


Infosys falls short of expectation. There are no exceptions to this economic recession. The dogma every rule has an exception, has proved false.The downbeat is remarkable. The earnings per share has dwindled.The operating margins have slipped.Revenue for the year would fall.

The dependence on outsourcing gave an unexpected prosperity to the Information technology in India. There was a belief that Information technology was the sunrise indudtry of the world. There was a mad rush to computer engineering, computer applications  in colleges, pushing behind conventional subjects like civil, mechanical and electrical.

The boom was unprecedented. The salary and perks for these outsourcing professionals was amazing .The engineers  earned in lacs. The sudden spurt in economic setup, made the young very tall . They disregarded  discipline, set aside the principles and marched towards lavish spending deriding modesty.

The other professionals were not recognised by the crowd. The age old vocation like medicine , auditing,law , and teaching were thrown into darkness. Their remuneration was not in parity to fresh upstarts. A decade of glory is slowly drawing to a close. The bubble has bursted, The high style has to embark on humility.

The major Information Technology companies have not given out  rosy results.They are wallowing in unforeseen trouble. The Satyam episode has cracked down the faith in them.

It is time for these big outsourcers to think differently. They have to deviate from this cult and etch out a living of their own, How long can they rely on other countries?  It is colonisation in a subtle way. We , knowingly or unknowingly, have subscribed to the fancies of U. S and other European countries.