Tag: Industry news.

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Paradise Lost.


Milton epitomises man’s disobedience and the loss of Paradise in his epic poem “Paradise Lost”

Satan revolts from God and draws with him a legion of angels. God drives him out of Heaven along with his crew and places him in the great deep hell.It is a place of deadliest darkness and utter chaos.

“Of man”s first disobedience and that fruit

of the forbidden tree,whose mortal taste,

Brought death into the world and all our woe.”

Milton”s Paradise Lost is being enacted by Modern Bankers.

The banking community was in an enviable status before 1930.Financial empires were built on strong fundamentals. Certain banks were based on fraud . The competence of the bankers , their influence in the society, their high ideals ,placed them in a pedestal. The profession was regarded as  a  fine vocation, with promises of lucrative  remuneration and resounding success.

During depression , the  banking system envisaged a great fall . Regulations were set in. It came under tight ropes. It became a less interesting profession. Bankers shied away from liberal lending.This period of severe security saw a rise in economic  prosperity. The growth was spectacular .

In the late twentieth century, again Banking had a radical transformation. The liberalisation found its existence. There was an enormous activity, hustle-bustle,and the industry exploded.

Anything above normal, anything exceeding its capacity, anything that is over exposed comes to a stunning halt.The recession has  set across, the meltdown  has sidelined the  industrial progress,has effaced trade priorities.Currencies have slided down,,commodities are fastly going up and  hastily. falling down . Banking has become a boring industry says Paul Krugman..

Banking ,like Satan , has pulled with it a legion of other industries and trade into an abysmal darkness. Satan tried to mend his ways to restore Paradise.The Banking sector should deliberate upon a serious financial reform to regain its fiefdom.

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A Prince Then, A Prisoner Now.


Recession is a pain.It surpasses the limit of expression. It is so intense ,that words belie.It is so excruciating ,that feelings get benumbed. It is so horrible, that apprehension surmounts.

There seems to be a void everywhere, a gloom extempore, and a gruelling confirmation all around.

It has hit hard on all classes of society.The rich ,most surprising, are most  affected, The average are in deep trouble. The wage earner has been hit hard on the face.It has deepened and made a dent so hollow in the settings of many a sound chequered person.  The pull up is extremely chaotic and gristling.

Now , coming to the other part of the tear glistening depiction ,we find an anger sparkling intervention, which explode the normal caricature. It is the Raju saga in India , Madoff  and Stanford in U.S.The three are contemporary frauds, colliding and conniving egos, and immersed in slander, deciet and misappropriation .They have squandered millions in easy swipes. They have robbed the common man of his hard earned money. They have played deftly on his ignorance. They lived in Palaltial bungalows, had heir own jets, contributed in tonnes to philanthropic causes, ran trusts,  built educational edifices, opened up hospitals for the poor.They projected themselves as the saviour of the poor, and carefully built an image of a prudent, sagaciuos,dependable expert. The world believed them, the people trusted them and their employees worshipped them. Raju, Madoff and Stanford committed perfidy in the same manner, got trapped in the same way, and are  behind the bars in the same fashion, except Stanford.

They climbed high. They rose quickly. They flew with  borrowed feathers in great haste. Up , Up, up, they soar steep into the skies. Their leap was blindening. When we see a powerful lightening , our eyesight is lost, so we slipped to perceive their shortcomings, their flaws, their cheat and their disguise.We lost track. They exploited the fluid temptations and went up in excellence, in lucrative income and in status.

Every thing has to come to an end.The three princes have to wind up their show of grandeur,as they fell in an ambush ,laid by their coterie   They were diligent in rise and tactful in fall.Raju was held by his shareholders, Madoff  was pulled by his sleeve and  Stanford was poked by his depositors. Out came the truth.

The charming princes ,who wallowed in the lap of luxury ,have landed up in a cell. They, who were in absolute  comfort, are now spending time in the illventillated smoky corner.They, who flew so steep, have fallen flat. 

Memories are short.Things transform so quick. It is hardly believable.Yet it has happened.

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Speculation


Speculation is a game. It is highly risky and highly dangerous. It is essentially a gamble.It jacks you up to unprecedented levels. All the same it drags you into  unimaginable  destinies. The win or loss is tremendous.The heart should be strong to face both fortune and mishap.

Speculation is not for all. People with ideals and with the penchant to make money in regular phase will never opt for it. The quick money , you make in derivatives, in stocks and commodities make you swim in luxury and wallow in wealth. But ,you  tends to forget,that  the way anything comes, the way it will go. The money ,thus earned in short duration , temptsyou  to reinvest the same in  varied portfolios . So goes the investment cycle,that one day it comes to a grinding halt. The funds are nowhere to be seen. We have a bundle of papers ,called share certificates.Now even the physical handling has given way to demat procedures.You have only the account details.

A year back , you were worth about a million, but today you have less than a thousand.No one is spared from such derailment, even the investing guru, Warren Buffet and his Berkshire investment company have fallen prey to the economic Tsuanami.

2007 -2008 saw a stock market boom. As early as 2008 , there was a down turn. Money started diffusing, Stocks withered. Nothing could stop the fall. A sad sordid state of affairs moves on. The loss is spine breaking, heart rending, and nerve racking. The abstract pain has surmounted the physical suffering. The vicious circle goes on with full vigour and with high tenacity.The gruesome ,gripping circumventions plague the silhouttes and nestling spaces.

Let us learn a lesson from Twain’s nugget, better not to speculate when you can afford, and when you cannot.Let us keep what we have safely in our niche and lie down peacefully, till something changes for the better.

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Air Asia


A  low cost airline run with great morale and grit. I flew in this airline day before yesterday. It was a perfect journey. The fare was damn cheap. The timing was ideal, as I prefer morning travel.The precision of take off and landing was fine tuned. The service was without any fanfare.

I travelled from Tirichirapalli to Kualalumpur on 23/02/2009. The checking time was 45 minutes before departure.I took an early ride from Madurai  to Tirichirapalli.Traversing the bumpy road  was tiring and tested my patience,as the ride took more than three hours. I rushed into the checking zone,as I was exactly 45 minutes from the departure schedule. I was allowed a 15 kg luggage , as the airlines feel excess weight burns extra fuel. A very apt information,that has to be followed every where. Metaphorically speaking, an excess of anything  either baggage or wealth ,or even so possessiveness drags us below, and makes unnecessary  bondage. This airline seems to teach us the most essential practicalities of life ,by asking us to carry less baggage. Less of anything is truly enjoyable and good for the system.

At 9.25 a.m ,the flight took off. It was smooth flying therafter.The crew came with snacks and drinks at regular intervals. They were very cordial .The plane was clean and a no smoking instruction was upheld. I had a peaceful reading for two and half hours.Then fell asleep. I woke up to the announcement that in few minutes we would be landing in Kualalumpur. The Captain made a neat landing . The passengers  descended from the air craft in an organised manner. There was no mad rush, no loud chatter, no frequent announcements.Everything was in order, in total harmony ,and in limited scope.

I congratulate   the CEO of Air Asia and  pass on my applause to the airline’s team work .

Well done.

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No Job


In the world of plenty,

There is no job.

In  the world of bribery,

There is no job.

In the world of  deceit ,

There is no job.

In the world of destitution,

There is no job.

In the world of  frenzy,

There is no job.

In the world of impracticalities ,

There is no job.

In the world of terror ,

There is no job.

In the world of manipulation,

There is no job.

In the world of anarchy,

There is no job.

In the world of tedium,

There is no job.

In the world of frailty,

There is no job.

In the world of insight,

There is no job.

In the world of introspection,

There is no job.

In the world of  sarcasm

There is no job.

In the world of wilderness,

There is no job.

In the world of fantasy,

There is no job.

In the world everywhere ,

There is no job.

A dismal cry,

Rants in the air.

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The software Hype.


Last decade saw a leap and a hike . Leap was predominant. Hike was unbelievable.Yet there it was very much in black and white.

The word software was a mantra much chanted, much raved about and much admired.If you are a software professional , then you are  a highly placed individual, earning  in six figures, and have an inflated ego .You command a a respect in society.

Commerce , science and literature  were pushed into  oblivion. Commerce became a subject for  clerks and lower ranked officers. Study of science would make you a teacher or at the maximum you rise up to  the status of a Professor, and languages give you no value.

Software grew up as a wonder ware. It attracted many young minds, not for the interest it proposed , but for the money it promised.It did pay as per the  trust, and did advance more prospective discernment.

Of late ,the over enthusiastic  tech savy  aspirants are disappointed by the economic downturns. This phenomenon has reduced the outsourcing formulas and programming assignments.In turn , there is a large scale job displacement, and larger wage reduction.The software companies have felt the jolt and  many are in the verge of closing down. The swift wealth  acquired ,has lead them  to plausible well being and impossible fudging and rigging.Their outlook has undergone a massive superficial alteration. They speak money, think money and breathe money.  The abnormal salary and wages have rendered them super humans, thoroughly away from idealism ,  closely into materialism.

 A mercenary minded breed has been evolved by  the new found technology. This branded genre has lost the human values, has deviated from prescribed norms, and worked towards flaw in character and flayed towards transitory peripherals.

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So Called Big Shots.


Satyam’s fraudulent saga started off with a mild  twitter, developed into a harsh manoeuvre, and culminated into a huge disaster.The corporate world  is rocked by the eruptions and corruptions.

The whole episode was  a high drama, unbelievable, yet  cannot be disregarded, contemptuous, yet cannot be   neglected, but  the startling catastrophe has left us dumbfounded and shaken.

Ramalinga Raju is not the only one  with a tag of a fraud in the corporate world. He has many  co parceners and coagulant deceivers who are still to be exposed. Exposed they may be, but  they try to sit pretty over the crimes ,cheats, and deceits, putting up a gleeful countenance, professing a good samartian prima facia,and moving about with imperial gleam and decorum.

The Southern Petro chemicals , called as SPIC, the gigantic fertiliser company down South India, is a bag of such ,, fraudelent devices, misappropriation of funds,  severe   digressions, untoward manipulation and unexpected scheming.

SPIC, owes Rs 2845 crore to a consortium of 30 Banks.  It is alarming and apprehensive, at the same time.The CEO , Annamalai Chidambaram Muthiah , had been the President of Federation of Indian chamber of Commerce., President of Board of  control for cricket for India, a best race horse owner,had been a member of Prime Minister’s Advisory council on trade matters.His qualifications may extend to a lengthy draft, but they failed to impress his Bankers.

His companies are in red. The Mercantile Credit Coporation , a much ebullient finance company was wound up ,because of mismanagement by his son Ashwin Muthiah and son in law Jawahar Vadivelu. The funds were discreetly transferred to private coffers, the depositors were thrown out without mercy. The arbitration ended in a miserable fiasco.

Spic ,with its baffling loan poses a depressing dilemma to the financial institutions. The Big Shot  is trying to alienate his properties,  driving hard to change the prime lands in his name to the custody of his spouse, thus eluding the deadly grasp of the Banks, tribunals and Private bodies.

Ramalinga Raju can be commended for his disclosure.  A.C. Muthiah can be applauded for his concealment.

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Satyam Hang Out.


The Satyam board has been disbanded, A new 3 member  directors have been appointed . The fresh team has met with an agenda to track down the misappropriatio. If the receivables ,as stated  by the fraud management is true, then there is adequate liquidity, according to Mr. Deepak Parekh.

Yes, one man will gulp all the available food, with the help of his confident coteries. He  gets choked and spits out the unneeded. He falls sick, is hospitalised ,is given proper medication and walks out  with stately poise. This is what I perceive as the aftermath of the Satyam eruption.

Ramaling Raju has devoured 7000 crores , has disclosed the fudging ,has surrenderd to judicial custody , and has gone behind the bars. A beautiful myth and a strange reality get mixed up.

The Government has released the step up process and as the rescue is definite, the shares are moving up fast. Why  do we act like  in such a quixotic manner?

Protecting the shareholders ,  caring the employees, and  holding the image up is thoughtful and  appreciable.  But how is the government going to do?

Setting right the financial, is an onerous job. The government appointed Board will get the least cooperation from the finance department of Satyam. Will stern orders bear fruit?

Restoring the good will , is still more a grave task. The credentials  pose a big question. The World bank has cancelled its contracts. The faith in the company is lost. No one will dare revert to Satyam to process their business.

Making it move in the right track is the most terrible  detonation . How well  can they do?Mobilising liquidity, putting  the bank balance straight,protecting the staff , prolonging the terms of result tabulation , will take its toll . Deepak Parekh, in the helm of affairs, has to spend many a sleepless night and many a nerve breaking hour to tally the workings.

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Satyam -Conscience =Raju


Ramalinga Raju has resigned from Satyam Computers. He is the author of inconsiderate  delivery, infidel attributions ,insincere associations,and incongruous methods.

He has done much harm to India.His confession that balance sheet at September 30/2008, has inflated  non existing cash and bank balance of50.40 billion rupees, understated a liability of 12.3billion rupees and overstated  debtors position of 4.9 billion rupees .

It is a shame on Ramalinga Raju., who has made the announcement with “deep regret and tremendous burden that I am carrying on my conscience.”

Regret , burden and conscience- the three words carry a lot of impregnable interpretations.

Toying with integrity, rigging the financial ,squandering investor’s money, overhauling the personal stature, deriding the sentiments  and then move like a “Holy Cow”, signals a nasty ,notorious plague.

He is prepared to face the law of the land and consequences thereof.

Did he think once about his shareholders and 53,ooo employees , once , in times of pristine glory?

Never did he. The indifference to the investing community  by his emboldened attempt to transfer huge funds to the family owned subsidiary Mayatas has brought the ruin.

Now , what was the Board doing all these years?

What did the auditors scrutinise  all these years?

What did the accountants  account all these year?

What did  SEBI , the regulating body  watch  all these years?

We have to conclude , that not only Ramalinga Raju knew about it, The Board ,whose members come from a high profiled background were well aware of it, the auditors have professionally lent a helping arm, the accountants have contributed their might , in cheating the investor in particular and the public at large.

What did they avail for rendering such ignominious services?Must be a handsome reward for expressing sacrilegious lies.

Kitties  got filled up. Honesty got dried up.

Strange are the ways of getting rich. This is the behavioural tendency of the “Nouveau Riche.” A traditional rich  will act with reverential morality and dutiful righteousness.

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Botch In Indian Corporate Governance.


An emerging industrial super power India is at crossroads, after the disaster of Satyam’s undermining ,disgraceful move to shift 1.6 billion to its Mayatas projects.

The integrity is at question, the audacity is at question, the Board is at question,the transparency is at question,,and the investors interest are at question.

The Indian corporate scenario was stagnant till 1990.After liberalisation, this sector has changed. India with 20 million shareholders, is one of the largest emerging markets in terms of  the market capitalisation.

The Confederation Of Indian Industry,took a special initiative to protect the small investor,and promote transparency within business and industry.

The Securities Board of India announced strict governance for public listed companies. More powers were entrusted to the Securities Board , after the Harshad Mehta  scam in 1992.

Amendments were made in clause 49 to move Indian companies rapidly up the business scenario. Foreign Direct Investments were  freely allowed.

 Indian companies grew in stature. The Information Technology sector made a rapid stride. Indians made good of the opportunity, There was a large scale take over of overseas companies by Indian business.

The Jaguar deal  is a fine instance of this elaborate agenda.

The Satyam episode has ploughed deep into the investor’s confidence, has ransacked the enthusiasm of the overseas financial institutions and has etched a black impression on the nascent corporate Indian culture