Friday, January 23, 2009

Netaji Subhas Chandra Bose Jayanti



'‘..It is our duty to pay for our liberty with our own blood. The freedom that we shall win through our sacrifice and exertions, we shall be able to preserve with our own strength.... Freedom is not given, it is taken.. One individual may die for an idea; but that idea will, after his death, incarnate itself in a thousand lives. That is how the wheel of evolution moves on and the ideas and dreams of one nation are bequeathed to the next......'
Netaji Subhas Chandra Bose (Born 23 January 1897 - Presumed Dead on 18 August 1945)

Creativity



Read the notice on the poster displayed in Commercial Road Cross in Bangalore

Source: www.flickr.com

How come media did not spot Satyam fraud?


A requiem for Indian business journalism, in the delightfully breathless style of Juan Antonio Giner, founder-director, Innovation International Media:

‘Satyam’, meaning truth.

India’s fourth largest software services provider. The darling of Hyderabad.

An outsourcing company with 53,000 employees that serviced 185 of the Fortune 500 companies in 66 countries.

A company which now says 50.4 billion rupees of the 53.6 billion rupees in cash and bank loans that it listed in assets for its second quarter, which ended in September, were nonexistent.

India’s biggest corporate fraud ever.

Hell, India’s biggest fraud ever: customers, clients, shareholders, employees, families down in the dumps.

India’s Enron.

We have heard all the big questions being asked. So far.

How come the analysts did not know?

How come the auditors did not know?

How come the regulators did not know?

How come the directors did not know?

How come the bankers did not know?

Yes. But where is the other question?

How come the media did not know?

Yes.

How come the English newspapers did not know?

# Not Deccan Chronicle, not The Hindu, not The New Indian Express, not The Times of India.

# Not The Economic Times, not Business Line, not Financial Chronicle, not Business Standard, not Financial Express.

How come the foreign newspapers did not know?

# Not New York Times, not Wall Street Journal, not Financial Times.

How come the Telugu dailies did not know?

# Not Eenadu, not Andhra Jyoti, not Andhra Prabha, not Saakshi.

How come the general interest magazines did not know?

# Not India Today, not Outlook, not The Week.

How come the business magazines did not know?

# Not Business Today, not Business World, not Outlook Business.

How come the English news channels did not know?

# Not NDTV, not CNN-IBN, not Times Now, not Doordarshan News.

How come the business channels did not know?

# Not CNBC, not NDTV Profit, not UTVi.

How come the Telugu channels did not know?

# Not ETV, not Maa TV, not TV9, not TV5, not Doordarshan

So many media vehicles, but so little light on the infotech highway yet so much noise.

But who is asking the questions?

Is journalism that doesn’t shed light journalism?

Or puff?

Or PR?

Or Advertising?

Source: http://wearethebest.wordpress.com

Thursday, January 22, 2009

Obama in 2009 sounded a lot like Bush in 2001


President Barack Obama's supporters think he gave a great inauguration speech Tuesday. I disagree. So here's a challenge:

Look below to see if you can spot which passages came from Obama's 2009 speech and which were in George Bush's first inaugural speech in 2001.

(Answers at bottom)

1. "While many of our citizens prosper, others doubt the promise, even the justice, of our own country. The ambitions of some Americans are limited by failing schools and hidden prejudice and the circumstances of their birth. And sometimes our differences run so deep, it seems we share a continent, but not a country."

2. "The time has come to reaffirm our enduring spirit; to choose our better history; to carry forward that precious gift, that noble idea, passed on from generation to generation: the God-given promise that all are equal, all are free, and all deserve a chance to pursue their full measure of happiness.

3. "America has never been united by blood or birth or soil. We are bound by ideals that move us beyond our backgrounds, lift us above our interests and teach us what it means to be citizens. Every child must be taught these principles. Every citizen must uphold them. And every immigrant, by embracing these ideals, makes our country more, not less, American."

4. "What is required of us now is a new era of responsibility -- a recognition, on the part of every American, that we have duties to ourselves, our nation and the world; duties that we do not grudgingly accept but rather seize gladly, firm in the knowledge that there is nothing so satisfying to the spirit, so defining of our character, than giving our all to a difficult task. This is the price and the promise of citizenship."

5. "The enemies of liberty and our country should make no mistake: America remains engaged in the world by history and by choice, shaping a balance of power that favors freedom. We will defend our allies and our interests. We will show purpose without arrogance. We will meet aggression and bad faith with resolve and strength. And to all nations, we will speak for the values that gave our nation birth."

6. "With old friends and former foes, we will work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet. We will not apologize for our way of life, nor will we waver in its defense, and for those who seek to advance their aims by inducing terror and slaughtering innocents, we say to you now that our spirit is stronger and cannot be broken; you cannot outlast us, and we will defeat you."

1. Bush
2. Obama
3. Bush
4. Obama
5. Bush
6. Obama

By Yael T. Abouhalkah, Kansas City Star Editorial Page columnist

Official text of Barack Obama's inaugural address, Jan. 20, 2009


Inaugural address of Barack Hussein Obama

My fellow citizens:

I stand here today humbled by the task before us, grateful for the trust you have bestowed, mindful of the sacrifices borne by our ancestors. I thank President Bush for his service to our nation, as well as the generosity and cooperation he has shown throughout this transition.

Forty-four Americans have now taken the presidential oath. The words have been spoken during rising tides of prosperity and the still waters of peace. Yet, every so often the oath is taken amidst gathering clouds and raging storms. At these moments, America has carried on not simply because of the skill or vision of those in high office, but because We the People have remained faithful to the ideals of our forbearers, and true to our founding documents.

So it has been. So it must be with this generation of Americans. That we are in the midst of crisis is now well understood. Our nation is at war, against a far-reaching network of violence and hatred. Our economy is badly weakened, a consequence of greed and irresponsibility on the part of some, but also our collective failure to make hard choices and prepare the nation for a new age. Homes have been lost; jobs shed; businesses shuttered. Our healthcare ...

... is too costly; our schools fail too many; and each day brings further evidence that the ways we use energy strengthen our adversaries and threaten our planet.

These are the indicators of crisis, subject to data and statistics. Less measurable but no less profound is a sapping of confidence across our land -- a nagging fear that America's decline is inevitable, and that the next generation must lower its sights.

Today I say to you that the challenges we face are real. They are serious and they are many. They will not be met easily or in a short span of time. But know this, America -- they will be met.

On this day, we gather because we have chosen hope over fear, unity of purpose over conflict and discord.

On this day, we come to proclaim an end to the petty grievances and false promises, the recriminations and worn out dogmas, that for far too long have strangled our politics.

We remain a young nation, but in the words of Scripture, the time has come to set aside childish things. The time has come to reaffirm our enduring spirit; to choose our better history; to carry forward that precious gift, that noble idea, passed on from generation to generation: the God-given promise that all are equal, all are free, and all deserve a chance to pursue their full measure of happiness.

In reaffirming the greatness of our nation, we understand that greatness is never a given. It must be earned. Our journey has never been one of shortcuts or settling for less. It has not been the path for the faint-hearted -- for those who prefer leisure over work, or seek only the pleasures of riches and fame. Rather, it has been the risk-takers, the doers, the makers of things -- some celebrated, but more often men and women obscure in their labor, who have carried us up the long, rugged path towards prosperity and freedom.

For us, they packed up their few worldly possessions and traveled across oceans in search of a new life.

For us, they toiled in sweatshops and settled the West; endured the lash of the whip and plowed the hard earth.

For us, they fought and died, in places like Concord and Gettysburg; Normandy and Khe Sahn.

Time and again these men and women struggled and sacrificed and worked till their hands were raw so that we might live a better life. They saw America as bigger than the sum of our individual ambitions; greater than all the differences of birth or wealth or faction.

This is the journey we continue today. We remain the most prosperous, powerful nation on Earth. Our workers are no less productive than when this crisis began. Our minds are no less inventive, our goods and services no less needed than they were last week or last month or last year. Our capacity remains undiminished. But our time of standing pat, of protecting narrow interests and putting off unpleasant decisions -- that time has surely passed. Starting today, we must pick ourselves up, dust ourselves off, and begin again the work of remaking America.

For everywhere we look, there is work to be done. The state of the economy calls for action, bold and swift, and we will act -- not only to create new jobs, but to lay a new foundation for growth. We will build the roads and bridges, the electric grids and digital lines that feed our commerce and bind us together. We will restore science to its rightful place, and wield technology's wonders to raise healthcare's quality and lower its cost. We will harness the sun and the winds and the soil to fuel our cars and run our factories. And we will transform our schools and colleges and universities to meet the demands of a new age. All this we can do. And all this we will do.

Now, there are some who question the scale of our ambitions -- who suggest that our system cannot tolerate too many big plans. Their memories are short. For they have forgotten what this country has already done; what free men and women can achieve when imagination is joined to common purpose, and necessity to courage.

What the cynics fail to understand is that the ground has shifted beneath them -- that the stale political arguments that have consumed us for so long no longer apply. The question we ask today is not whether our government is too big or too small, but whether it works -- whether it helps families find jobs at a decent wage, care they can afford, a retirement that is dignified. Where the answer is yes, we intend to move forward. Where the answer is no, programs will end. And those of us who manage the public's dollars will be held to account -- to spend wisely, reform bad habits, and do our business in the light of day -- because only then can we restore the vital trust between a people and their government.

Nor is the question before us whether the market is a force for good or ill. Its power to generate wealth and expand freedom is unmatched, but this crisis has reminded us that without a watchful eye, the market can spin out of control -- and that a nation cannot prosper long when it favors only the prosperous. The success of our economy has always depended not just on the size of our Gross Domestic Product, but on the reach of our prosperity; on our ability to extend opportunity to every willing heart -- not out of charity, but because it is the surest route to our common good.

As for our common defense, we reject as false the choice between our safety and our ideals. Our Founding Fathers, faced with perils we can scarcely imagine, drafted a charter to assure the rule of law and the rights of man, a charter expanded by the blood of generations. Those ideals still light the world, and we will not give them up for expedience's sake. And so to all other peoples and governments who are watching today, from the grandest capitals to the small village where my father was born: know that America is a friend of each nation and every man, woman, and child who seeks a future of peace and dignity, and that we are ready to lead once more.

Recall that earlier generations faced down fascism and communism not just with missiles and tanks, but with sturdy alliances and enduring convictions. They understood that our power alone cannot protect us, nor does it entitle us to do as we please. Instead, they knew that our power grows through its prudent use; our security emanates from the justness of our cause, the force of our example, the tempering qualities of humility and restraint.

We are the keepers of this legacy. Guided by these principles once more, we can meet those new threats that demand even greater effort -- even greater cooperation and understanding between nations. We will begin to responsibly leave Iraq to its people, and forge a hard-earned peace in Afghanistan. With old friends and former foes, we will work tirelessly to lessen the nuclear threat, and roll back the specter of a warming planet. We will not apologize for our way of life, nor will we waver in its defense, and for those who seek to advance their aims by inducing terror and slaughtering innocents, we say to you now that our spirit is stronger and cannot be broken; you cannot outlast us, and we will defeat you.

For we know that our patchwork heritage is a strength, not a weakness. We are a nation of Christians and Muslims, Jews and Hindus -- and non-believers. We are shaped by every language and culture, drawn from every end of this Earth; and because we have tasted the bitter swill of civil war and segregation, and emerged from that dark chapter stronger and more united, we cannot help but believe that the old hatreds shall someday pass; that the lines of tribe shall soon dissolve; that as the world grows smaller, our common humanity shall reveal itself; and that America must play its role in ushering in a new era of peace.

To the Muslim world, we seek a new way forward, based on mutual interest and mutual respect. To those leaders around the globe who seek to sow conflict, or blame their society's ills on the West -- know that your people will judge you on what you can build, not what you destroy. To those who cling to power through corruption and deceit and the silencing of dissent, know that you are on the wrong side of history; but that we will extend a hand if you are willing to unclench your fist.

To the people of poor nations, we pledge to work alongside you to make your farms flourish and let clean waters flow; to nourish starved bodies and feed hungry minds. And to those nations like ours that enjoy relative plenty, we say we can no longer afford indifference to suffering outside our borders; nor can we consume the world's resources without regard to effect. For the world has changed, and we must change with it.

As we consider the road that unfolds before us, we remember with humble gratitude those brave Americans who, at this very hour, patrol far-off deserts and distant mountains. They have something to tell us today, just as the fallen heroes who lie in Arlington whisper through the ages. We honor them not only because they are guardians of our liberty, but because they embody the spirit of service; a willingness to find meaning in something greater than themselves. And yet, at this moment -- a moment that will define a generation -- it is precisely this spirit that must inhabit us all.

For as much as government can do and must do, it is ultimately the faith and determination of the American people upon which this nation relies. It is the kindness to take in a stranger when the levees break, the selflessness of workers who would rather cut their hours than see a friend lose their job, which sees us through our darkest hours. It is the firefighter's courage to storm a stairway filled with smoke, but also a parent's willingness to nurture a child, that finally decides our fate.

Our challenges may be new. The instruments with which we meet them may be new. But those values upon which our success depends -- hard work and honesty, courage and fair play, tolerance and curiosity, loyalty and patriotism -- these things are old. These things are true. They have been the quiet force of progress throughout our history. What is demanded then is a return to these truths. What is required of us now is a new era of responsibility -- a recognition, on the part of every American, that we have duties to ourselves, our nation, and the world, duties that we do not grudgingly accept but rather seize gladly, firm in the knowledge that there is nothing so satisfying to the spirit, so defining of our character, than giving our all to a difficult task.

This is the price and the promise of citizenship.

This is the source of our confidence -- the knowledge that God calls on us to shape an uncertain destiny.

This is the meaning of our liberty and our creed -- why men and women and children of every race and every faith can join in celebration across this magnificent mall, and why a man whose father less than 60 years ago might not have been served at a local restaurant can now stand before you to take a most sacred oath.

So let us mark this day with remembrance, of who we are and how far we have traveled. In the year of America's birth, in the coldest of months, a small band of patriots huddled by dying campfires on the shores of an icy river. The capital was abandoned. The enemy was advancing. The snow was stained with blood. At a moment when the outcome of our revolution was most in doubt, the father of our nation ordered these words be read to the people:

"Let it be told to the future world ... that in the depth of winter, when nothing but hope and virtue could survive ... that the city and the country, alarmed at one common danger, came forth to meet [it]."

America. In the face of our common dangers, in this winter of our hardship, let us remember these timeless words. With hope and virtue, let us brave once more the icy currents, and endure what storms may come. Let it be said by our children's children that when we were tested we refused to let this journey end, that we did not turn back, nor did we falter; and with eyes fixed on the horizon and God's grace upon us, we carried forth that great gift of freedom and delivered it safely to future generations. -- Barack H. Obama.

Wednesday, January 21, 2009

The Satyam Employee's Mail


It's written by a Satyam employee:

At a time when almost 90% of my Satyam friends are cribbing about the fraud and betrayal by Ramalinga Raju, I have a slightly different opinion. It's bold of me to write this in black and white but this comes straight from my heart and experience.
Let me start by quoting an example of 2006. Most of my friends were unemployed with 50-60% plus marks in BTech, with a degree from an average University and hunting madly for a job. Whether people accept it today or not but the truth remains that Satyam was the ONLY saviour and the only mass recruiter who was ready to accept students who had back logs but had cleared them and also it did not put a very strict minimum marks criterion.

And this was true not only for my small college at Lucknow but also those across India . Satyam is the fourth largest in IT in India.

Looking at India's population I really want to thank Raju for giving some 54000 Indians jobs atleast for all these years . He was the reason for the revival of confidence and the reason for the bread and butter for many a families.
Satyam training was renowned all over India. Their STC training centre created numerous love stories and unexpected rekindling of a youthful environment where girls and boys were more indepenent than their college days . I remember most of my Satyam friends felt that they made better friends at Satyam's three to six months training than those in the four years of BTech.

Unfortunately people forget to thank God in sad times . I understand that what Raju did is deplorable and unpardonable. He should have treated business more formally and not dealt with it like a family affair . He should have been strict a couple of months or years before itself. Why did he hire so many non potential candidates and keep them on bench? When were the managers and the team mates last told that if they dont work hard, they will lose their job? Business cannot be run lousily.

I have been staying with some 200 odd girls for the last 2 years and many of them are from Satyam. Moreover I network a lot and I have lots of male friends at Satyam.

I have seen how people tail gate to Satyam, how they give their swipe cards to others to swipe it on their behalf, how female employees have gone home sharp at 6am irrespective of when they landed at office, how employees sit at home for months at a stretch, prepare for all kind of post graduate entrance exams and still enjoy a full month's pay, how often they went for movies at local theatres at office hours, how often employees went to office just to sign on registers in the morning and at evening, how often they faked their certificates, how often they put unlimited fake medical and house rental bills.

How can we blame just one man when EACH AND EVERY person was disloyal? How can we exclude Auditors like PwC ? How can we exclude the Board of Directors who have washed their hands off so clean? How can we exclude banks who gave hefty loans without true verfication? How can we exclude the Chief Minister of AP who allowed leniency for Raju's fellow businessman?

How can we exclude managers who were never able to trace which bench employee under him had been away from office for how long?

Yet how can people forget this is the same man whose ideas and potentials gave them an identity for the past several years? How many couples found the right match at an IT industry , courtesy Satyam and how many Andhra farmers benefited from their crores of investments in Satyam shares .How can people forget that Satyam launched its offices right at the doorsteps of a residential colony, where people can simply walk to work?

The most gruesome experience that I can recollect was when a Satyam tag wearing person was waiting to attend an interview and I overheard him saying that he was in a business meeting at the My Home Satyam (Madhapur) office when he was sitting right infront of me at a totally different company. When employees themselves show such a lousy attitude and dont care a damn for the brand that they carry around their neck, how can they expect others to care?

I am not saying that ALL Satyam employees are bad. I have known very dedicated people too, but my point is very clear, before pointing fingers at others, introspect .There are thousands of people who have completed certifications at the cost of Satyam, got trained at Satyam.

Satyam made several freshers stand on their feet to get better jobs elsewhere across the globe and attain onsite exposure through Satyam.

What Raju did was to keep the business of Satyam going at any cost. I see a very smart man in him when he understood that he should rather accept his mistake than be caught by the USA laws . I see a selfish father in him too that he put a lot at stake for Maytas. However, he resigned with a lot of dignity and his letter of resignation shows humility. It takes a mammoth amount of courage to accept your mistake in public at a time when the media is ready to blow everything out of proportion. If humans dont make mistakes who else would?

My last salute to this man is for creating such mass employment in India for 57k employees and 57k families when even opening a beetle(pan) shop in a lane in India is a challenge !! Thanks to him for creating income for all the thousands of families who benefited through food chains, the tiffin wallahs, the transport people and all those who made money by renting their houses.

I read he donated Rs 1200 crores from his personal pocket to give the January salary of his Satyam employees. Today Satyamites call Raju a FRAUD.

The true and loyal Satyamites surely have all the reasons to say this word. But all the rest who sucked every rupee out of Satyam without doing any value addition need to understand - who was a bigger fraud.

Friday, January 16, 2009

Recession news


1. This is the first time after Second World War, top industrialized nations slide simultaneously into recession. This is the worst recession since 1929 depression.

2. JP Morgan reported 76% fall in profit and bank wrote down $2.9 billion of assets. EPS is 7 cents Vs 86 cents. Bank of America will be saved by American Government as it landed in trouble due to Merrill Lynch.

3. US Job losses: 20 lakh Americans lost jobs in 2008 and another 30-50 lakh Americans are expected to lose jobs in 2009.

4. The European Central Bank (ECB) cut interest rate to 2%.

5. Google shut down six products to concentrate on core competency i.e. search and ads and lay off 100 employees (to cut costs) for the first time in the Company history.

6. UK: 14,000 people will lose jobs in England in this week. England GDP is expected to contract by 1.5% in 2009. According to ILO estimates, 30 lakh people will lose jobs by the end of 2010 in England. 60% fall in mortgage lending.

7. USA: 5 lakh Americans applied for first time unemployment benefits in USA. 23 lakh American homeowners faced foreclosure proceedings in 2008. The Federal budget deficit will increase to more than $1 trillion.

8. Japan: Mitsubishi Financial Group will report $3.2 billion loss in its portfolio. Sharp fall in Machinery orders reported. Abu Dhabi wealth fund lost $125 billion in 2008 in Gulf.

9. The world economy is heading for zero growth in 2009 – United Nations.

10. Commodities: “It will take at least one to two years for the global economy to regain the strength needed to support new mining projects” – Rio Tinto CEO.

11. Scam: HSBC and UBS are struck in $3.2 billion losses in Madoff scam.

Courtesy: Stockmarketguide.in

Recession news: (Difficult to digest)


1. Canada’s iconic technology Company, Nortel Networks, filed for bankruptcy. Huge blow to Infosys and Wipro. Skype legend Morten Lund also announced bankruptcy in Denmark due to bad investments in a newspaper.

2. Economy is moving from bad to worse – European Union.

3. Germany economy contracted by 2% in the last quarter. China is now the third largest economy in the world after USA and Japan. Germany fell to 4th place due to shrinking GDP.

4. Deutsche Bank is expected to announce $6.4 billion losses in this quarter.

5. Retail sales were dropped by 2.7% in December (estimates 1.2%). That is the difference between estimates and reality. It is difficult to digest when actual number will come out. Sixth consecutive fall in retail sales in USA is due to drastic fall in consumption.

6. Bankruptcies are increased by 25% in Japan. 1,362 Japanese Companies bankrupted in Japan – most after 2nd world war. Difficult to digest.

7. Barclays bank (2,500), JLR (400) and Oracle Corporation (500 jobs) will lay off more employees.

8. Citi Bank is restructuring itself to escape from bankruptcy and is now just one third of its original size.

9. Moody downgraded credit outlook of UAE Banking system.

10. Google lay off 100 employees (Google hired in the last tech slow down); Microsoft will announce large lay offs in the next week. Motorola will remove another 4,000 employees. Growth in PC shipments is dropped to almost 0% in the last quarter.

Courtesy: Stockmarketguide.in

Are we underestimating the seriousness of the economic crisis?

Before we think about future, we should know what economic experts said before Lehman bothers collapse and share market crash in 2008. I don’t know what will happen in 2009 but I completely fed up with the people’s underestimation of current economic slow down. Only time will tell whether I am underestimating /overestimating the economic crisis. Obama's stimulus policy is the last hope for global stock markets. Valuations are good but economic environment is looking much worse to justify those valuations.


NASDAQ crashed to below 1,500 levels and Dow Jones touched late November levels due to drastic fall in retail sales in USA. Simultaneously, more bad news came from Japan, Germany and Canada. India's Pantaloon Retail announced fall in sales for the first time in 4 years. Nortel bankruptcy news coupled with Citi Bank's narrow escape from bankruptcy sent tremors across the global markets. No fall in the lending of banks but drastic fall in consumption means people want to sit on cash in these troubled times.


Chart courtesy: Bloomberg.

10 Worst economic predictions in 2008: (Source: BusinessWeek)

1. “A powerful and durable rally is in the works. But it may need another couple of days to lift off. Hold the fort and keep faith” – Richard Band when Dow Jones at 12,300 in March, 2008.

2. “AIG” could have huge gains in the second quarter” – Bijan Moazami in May, 2008.

3. “Freddie Mac and Fannie Mae are fundamentally sound. I think they are in good shape going forward.” – Barney Frank in July, 2008.

4. “I am not economist, but I do believe that we’re growing” – US President Bush in July, 2008.

5. “ I think Bob Steel is the one guy I trust to turn this bank around, which is why I have told you on weakness to buy Wachovia” – Jim Cramer, CNBC Commentator in September.

6. “Existing home sales to trend up in 2008” – National Association of Realtors. These brokers same similar things all over the world.

7. “I think you will see $150 per barrel by the end of 2008” – Boone Pickens.

8. “There is growing evidence that parts of debt markets are coming back to life” – Peter Coy.

9. “In Today’s regulatory environment, it is impossible to violate rules” – Bernard Madoff. Unbelievable!

10. “I don’t expect any serious failures of large investment banks” – Ben Bernanke, US Federal Reserve Chairman. Do we need more quotes?

What happened after that?

Dow Jones collapsed to 7,500 and AIG along with Freddie Mae and Fannie Mac were saved by American Government from bankruptcy. Republican Party miserably lost in American elections.

Why am I writing about all these predictions?

Many investors blindly believe in the predictions by analysts or experts like Rakesh Jhunjhunwala and statements by PM and FM. They take their investment decisions just basing on their advice without doing proper research on the Company and economy.

Investors overreacted in October due to panic and Sensex crashed to 7,800 levels and then recovered to 10,300 by the end of December. Meanwhile, economy deteriorated further in November-December and hopes of mid-2009 recovery were permanently evaporated. Sensex moved in exactly opposite direction to economy (Just as it did in November-December, 2007 after US Subprime crisis). Will it crash once again?

7,800 levels are unreasonable levels when you compare with economic situation in October, 2008 but they will be reasonable levels for BSE Sensex in February, 2009 and those levels may become expensive ones if you think in the context of forward valuations in February, 2009.

Do you know?

40% of financial analysts are removed from jobs in the last 1 year. It is not a surprising news if you go by their analysis and comments in the research reports. Most of these analysts give recommendations in the short term context. They don’t believe in their experience and gut feeling. They don’t see bigger picture on economic happenings and what will happen after 3-4 months.

Final advice: If you are a serious investor to make big money in share markets, try to see bigger picture. Never invest in any stock just basing on someone’s recommendation. Try to develop broad knowledge on economy and Companies and work hard on research about the company, sector and economy and then take the final decision. Don’t change your decisions by short term market moves. Don't hesitate to exit when you take a bad investment decision.

How to enhance value and earnings?

Just see how Rakesh Jhunjhunwala and mutual fund managers destroyed their portfolios by blindly following long term India story. They miserably failed to spot the changing trends even in September. No doubt they will make money over long term. Is it necessary to lose 60% of portfolio value by sticking to a false perception (long term India story)?

I don’t recommend frequent buying/selling but when there is a serious economic downturn; one should learn to sit on cash. Entry at reasonable price into a stock is good but exit at ideal time is also important. It is difficult to accept our failures but necessary to restrict losses. Just see how Hutch and Ranbaxy promoters milked money by exiting at an ideal time. Just see how Nirmal Kotecha maximised his returns by exiting from SEL Manufacturing at high price. Sentiments will not work in Stock markets. Only ruthless practical investors will succeed in stock investments. We have to see how Ranbaxy promoters will play with their cash in this cashless market. They have once in a lifetime opportunity.

Q3 Results: GTL Infra, Supreme Industries and SBI Home Finance announced losses in this quarter while NIIT Tech announced disappointing results.

Courtesy: N. Venkatakrishna, stockmarketguide.in

Airbus crash lands in New York's Hudson River


More than 150 people survived a dramatic rescue after a US Airways Airbus made an emergency landing last night on the Hudson River. At least 78 people were treated by paramedics, including a flight attendant whose leg was broken.

Survivors and officials said all 150 passengers and crew of five on board left the plane through emergency exits, with some standing on the wing before being rescued by ferry boat and police launches. Chesley Sullenberger III, the pilot, refused to don a life vest and left the aircraft last.

The Airbus A320 had taken off from New York’s LaGuardia airport six minutes earlier, bound for Charlotte, North Carolina, when it hit a flock of birds that disabled two engines, officials said. The pilot told the passengers to brace for impact before the aircraft glided on the Hudson River just off Manhattan’s West 48th Street. The Federal Aviation Authority said the plane was aloft for only about three minutes.

Jeff Kolodjay said that he heard what sounded like an explosion a few minutes after take-off. “The engine blew. There was fire everywhere and it smelled like gas,” he said.

The pilot radioed the control tower, asking to return to LaGuardia. He was given clearance. The last transmission between the pilot and controller was the controller’s order to divert to Teterboro, an airstrip in New Jersey, for an emergency landing. At that point the aircraft’s radio fell silent.

After landing on the Hudson, the aircraft, surrounded immediately by commuter ferries and later by rescue boats, floated downstream as hundreds watched from office towers overlooking the Hudson.

As the passengers clambered out on to the wings through the emergency exits, the aircraft began to sink and the cabin started filling with water.Some of the passengers slipped and tumbled into the freezing river with temperatures plunging below minus 6C (21F). Rescuers in Coast Guard vessels and ferry boats arrived, opened the door and pulled passengers in yellow life vests from the aircraft. It eventually sank. Witnesses said the pilot showed great skill guiding the plane down, hitting the water at an estimated speed of 140 knots.

“I see a commercial airliner coming down, looking like it’s landing right in the water,” said Bob Read, who was in his office in Manhattan. “This looked like a controlled descent.”

Captain Sullenberger's wife Lori said: “When he called me he said, 'There’s been an accident. At first I thought it was minor, but then he told me the circumstances and my body started shaking and I rushed to get our daughters out of school.”

Government officials do not believe the crash is related to terrorism.

Joe Mazzone, a retired Delta Air Lines pilot, said it was not unusual for birds to strike aircraft. In fact, he said, if there are birds in the area when a plane prepares for take-off, the tower will alert the crew. “They literally just choke out the engine and it quits,” Mr Mazzone said.

LaGuardia airport has a long history of aircraft ending up in the river. The runways are built out over the water and have been criticised repeatedly for being too short. The New York authorities decided it would be too costly to extend them.

— In 1992, 27 people died when a US Air Fokker F28 toppled into the river at the end of the runway after struggling to take off because of ice on the wings. The water was only five feet deep but the fuselage broke up and turned upside down.

— In 1989, a US Air flight bound for Charlotte, North Carolina, the same destination as the aircraft in yesterday’s crash, rolled into the East River after aborting take-off. Three people died.

— In 1959, an American Airlines aircraft crashed on approach into the East River, killing 65 of the 73 people on board.

Source: TimesOnline

Wednesday, January 7, 2009

Satyam Ramalinga Raju resigns

January 7, 2009: Satyam Computer Services Ltd. Chairman Ramalinga Raju resigned after saying he falsified accounts and assets, sending shares of the Indian software services provider to a record decline.

Raju, 53, unsuccessfully tried to sell two companies to Satyam last month in a final attempt to plug 50.4 billion rupees ($1.04 billion) of “fictitious assets” on the company’s balance sheet, Hyderabad-based Satyam said in a statement today. Profits from the main business have been inflated “over a period of last several years,” Raju said in a letter to the board.

The transactions started to unravel after shareholders vetoed the sale of two construction companies, four directors quit the company and the World Bank barred Satyam from bidding for contracts. India’s markets regulator C.B. Bhave said the event is of “horrifying magnitude” as Satyam dragged down the benchmark stock index already hit by a record slump last year.

“This is a black day for India, the software sector and corporate governance claims,” Arun Kejriwal, founder of Kejriwal Research & Investment Services, said in Mumbai. “If at all there’s an event that could be the biggest setback for corporate India, it is this.”

Shares of Satyam, which means “truth” in Sanskrit, plunged 69 percent to 55 rupees in Mumbai trading. The Sensitive Index tumbled 4.3 percent.

‘Non-Existent’

Of the reported cash and bank balances of 53.61 billion rupees on Sept. 30, 50.4 billion rupees was non-existent, Raju said in the letter sent to the Bombay Stock Exchange.

Operating margin at Satyam, India’s fourth-largest software exporter, in the quarter ended Sept. 30 was 3 percent of revenue, instead of the reported 24 percent, Raju said in the letter. The company’s revenue was 21 billion rupees, 22 percent less than the inflated figure of 27 billion rupees that had been reported.

Raju arranged 12.3 billion rupees “to keep operations going” at Satyam over the last two years by pledging the founders’ shares and raising funds from other sources, he said.

“What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years,” Raju said. “It was like riding a tiger, not knowing how to get off without being eaten.”

‘Easy Target’

The founders’ concern was that a poor performance, combined with the fact they held a small stake in the company, would make Satyam an easy target for a takeover, exposing the inflated figures, he said.

Satyam yesterday denied a report that the company received a merger offer from Tech Mahindra Ltd., an Indian software-services provider controlled by Mahindra & Mahindra Ltd. and partly owned by BT Group Plc.

Tech Mahindra termed the report of a proposed all-stock merger as “speculative.”

Earlier in the week, MindTree Ltd. denied a report it was one of two smaller rivals in talks for a merger with Satyam. The Hyderabad-based company is in talks to merge with smaller rivals including HCL Technologies and MindTree, the Business Standard reported on Jan. 5, citing unidentified people at investment banks.

Raju’s attempts to “keep the wheel moving” at Satyam was finally derailed as lenders sold most of the pledged shares because of margin calls, he said.

Reduced Holdings

SRSR Holdings Pvt., which holds the founding family’s stake, reduced their holding to 3.6 percent from 5.13 percent, Satyam told the Bombay Stock Exchange yesterday. Of the 3.6 percent, 1.7 percent is pledged with lenders, it said.

The stake sales by the families of Chairman Raju and his younger brother, manager director Rama Raju, reduced their holdings to below levels held by institutional investors including Aberdeen Asset Management Plc. Funds run by Aberdeen own 6.6 percent of Satyam, according to data compiled by Bloomberg until the end of October.

Raju scrapped the planned acquisition of Maytas Properties Ltd. and Maytas Infra Ltd. last month, less than 12 hours after announcing it, after the company’s ADRs plunged.

Separately, the World Bank Dec. 23 declared India’s fourth- biggest software-services provider ineligible for contracts for eight years, alleging “improper” benefits were given to the bank’s employees.

Satyam was founded in 1987 by Ramalinga Raju and Rama Raju and counts ArcelorMittal, the world’s largest steelmaker, and Nissan Motor Co., Japan’s third-biggest carmaker, among its customers.

“This company had a five-star independent board and it had a leading auditor and still it managed the con,” said Tarun Sisodia, a Mumbai-based analyst with Anand Rathi Securities Ltd. “So the question is why only Satyam, why not every other company.”

Courtesy: Harichandan Arakali for Bloomberg

Tuesday, January 6, 2009

How to Go Green

"Going Green" doesn't have to be a daunting task that means sweeping life changes. Start by planting a tree in your backyard or neighbourhood. It's good for the air, the land, can shade your house and save on cooling and they can also improve the value of your property.

When taking a short trip, choose to walk or cycle. This reduces carbon emissions considerably.

Staying within the speed limit and smoothly accelerating can save upto 25 per cent of a vehicle's typical gasoline use.

Switching off one bulb for one hour saves upto 22,000 watts per year.
Lighting an empty office wastes enough energy to boil water for a 1000 cups of coffee and doubles a company's annual electric bill

Plug your computer, monitor and other home appliances into a power strip and turn them off when not in use- don't leave them in sleep mode. Sleep mode adds immensely to the electricity bill and unnecessary greenhouse gases.

Recharge your batteries. Batteries contain heavy metals, such as mercury and cadmium, which have become a major source of contamination in dump sites. They either break apart and are released into the soil or are incinerated and the deadly heavy metals are released into the air.

Plastic bags are not biodegradable. Even if they say they are, they do not decompose fully. Also the ink is made up of cadmium, and is highly toxic when it is released. Whereas paper bags are reusable and biodegradable. If your purchase is small don't take any bag, this alone could save hundreds of millions of bags. Bring a cloth bag when you shop, or use string bags.

Our oceans provide the earth with most of our oxygen, moisture, and weather patterns. To keep our oceans clean we have to start with our beaches. When you go to the beach you can help by bringing a trash bag and spend a little while picking up litter, or you can join a beach clean-up crew.

As little as ten years ago there were over 1.5 million elephants on the earth. Today there are only 750,000. By the year 2,000 they may become extinct. Over 80% of the ivory that is taken, is from elephants- Americans buy 30% of it. Over 6.5 million dolphins have been killed by tuna fisherman. To help you can: not buy endangered animal products.

Do not dump oil, grease, antifreeze, pesticides, fertilizers, paints, cleaners, and other toxic household products down the storm drain. These drains, found in the gutters on the sidewalk, are not treated by the sewage treatment plant--they go straight into rivers, lakes, and maybe even the ocean! By putting these toxic chemicals down the drain, there is a great biological threat to marine life.

Use CFC free products. ChloroFluoroCarbons destroy the ozone layer, which protects us from harmful UV rays.

One less meat-based meal a week helps the planet and your diet. For each hamburger that originated from animals raised on rainforest land, approximately 55 square feet of forest have been destroyed.

Recycling just the Sunday papers would save more than half a million trees every week.

You can reuse gift bags, bows and event paper, but you can also make something unique by using old maps, cloth or even newspaper. Flip a paper grocery bag inside out and give your child stamps or markers to create their own wrapping paper that's environmentally friendly and extra special for the recipient.

Nearly 90% of plastic water bottles are not recycled, instead taking thousands of years to decompose. Buy a reusable container and fill it with tap water, a great choice for the environment, your wallet, and possibly your health.

Brush without running your tap dry. You'll conserve up to five gallons per day if you stop.

Adjust your thermostat one degree higher in the summer and one degree cooler in the winter. Each degree celsius less will save about 10% on your energy use!

If you must water your lawn, do it early in the morning before any moisture is lost to evaporation. Have a few weeds? Spot treat them with vinegar. Not sure if you should rake? Normal clippings act as a natural fertilizer, let them be. If you've waited too long, rake by hand — it's excellent exercise.

Most lighters are made out of plastic and filled with butane fuel, both petroleum products. Since most lighters are considered "disposable," over 1.5 billion end up in landfills each year. When choosing matches, pick cardboard over wood. Wood matches come from trees, whereas most cardboard matches are made from recycled paper.

Source: Green.NDTV

Eco Challenges

Pollution: Each kind of pollution- air, noise, water- has significant impacts to our everyday lives, affecting all living and non-living factors in the biosphere and the atmosphere and also involve socio-economic factors. These impacts have caused significant changes to the environment we are living in.

Deforestation: They are the earth’s largest depository of natural resources and house half of the planet’s dryland species. But man’s greed is putting a saw through the fragile ecosystem and over the years half of the world’s forests have been transformed into a concrete jungle. Indiscriminate felling of trees for fuel and timber or for housing and agriculture purposes has gone on unabated despite the clichés mouthed by environmentalists and a line of successive governments.

Soil Erosion: Floods and soil erosion are two of India's greatest problems. Neither is new, but there can be no doubt that in recent years floods are taking an increasing toll on crops and the rapid progress of soil erosion in different parts of the country has caused grave concern. India is thought to be losing 4.7 billion tons of topsoil a year, mostly through water erosion. Its monsoonal climate, with the concentration of rainfall during a few months of the year, leaves its exposed soils vulnerable to erosion. About 60 percent of soil that is washed away ends up in rivers, streams and lakes, making waterways more prone to flooding and to contamination from soil's fertilizers and pesticides. Soil erosion also reduces the ability of soil to store water and support plant growth, thereby reducing its ability to support biodiversity.

Land Degradation: Decline in land quality caused by human activities has been a major global issue during the 20th century and will remain high on the international agenda in the 21st century. The importance of land degradation among global issues is enhanced because of its impact on world food security and quality of the environment. High population density is not necessarily related to land degradation; it is what a population does to the land that determines the extent of degradation. People can be a major asset in reversing a trend towards degradation. However, they need to be healthy and politically and economically motivated to care for the land, as subsistence agriculture, poverty, and illiteracy can be important causes of land and environmental degradation.

Waste Management: Urban India is likely to face a massive waste disposal problem in the coming years. Until now, the problem of waste has been seen as one of cleaning and disposing as rubbish. But a closer look at the current and future scenario reveals that waste needs to be treated holistically, recognising its natural resource roots as well as health impacts. Waste can be wealth, which has tremendous potential not only for generating livelihoods for the urban poor but can also enrich the earth through composting and recycling rather than spreading pollution as has been the case. Increasing urban migration and a high density of population will make waste management a difficult issue to handle in the near future, if a new paradigm for approaching it is not created.

Increasing Energy Consumption: India faces a huge energy deficit: till 2001, only 44 per cent of Indian households had access to electricity. But consumption’s galloping: between 1947 and 2001, India’s per capita power consumption rose from 15 to 592 units. If India has to move ahead economically, it must find ways to bridge the deficit.

High Carbon Emissions: Carbon dioxide emissions are causing the Earth’s climate to change and warm, which will have catastrophic results if we do not act to reduce them. Carbon dioxide emissions in our atmosphere are at their highest levels in recorded history, spanning over 650,000 years. The effects of climate change can be seen now. Temperatures are increasing, glaciers are receding at unprecedented speeds and storms are becoming more frequent and severe.

Source: Green.NDTV



Eco Trivia



Ice caps are white, and reflect sunlight, much of which is reflected back into space, in turn cooling Earth; but with the ice caps melting, the only reflector is the ocean. Darker colors absorb sunlight, further warming the Earth.

Scientists blame global warming for the declining penguin population, as warmer waters and smaller ice floes force the birds to travel further to find food.

Stressed by cyanide fishing, harbor dredging, coral mining, deforestation, coastal development, agricultural runoff, careless divers, and now global warming, there is a devastating loss of coral across the world.

With accelerated global warming, and the ice covering melting, the earth would be absorbing more sunlight, and is on its way to becoming hotter than before.

Due to global warming the polar ice cap in the Arctic region is shrinking and rupturing; if this continues, summers in the Arctic would become ice-free by the end of this century.

Everytime we burn oil, coal and gas to generate electricity and power, we produce the heat trapping gases that cause global warming.

Deforestation is one of the main causes of atmospheric carbon dioxide; burning and cutting millions of acres of trees each year, it is responsible for 20-25 per cent of all carbon emissions.

Water vapor is the most prevalent and most powerful greenhouse gas on the planet; it holds onto two-thirds of the heat trapped by all the greenhouse gases.
Every week about 20 species of plants and animals become extinct!

Rainforests are being cut down at the rate of 100 acres per minute!

One-third of the water used in most homes is flushed down the toilet.

A single quart of motor oil, if disposed of improperly, can contaminate up to 2,000,000 gallons of fresh water.

Plastic bags and other plastic garbage thrown into the ocean kill as many as 1,000,000 sea creatures every year.

A modern glass bottle would take 4000 years or more to decompose -- and even longer if it's in the landfill.

Recycling one glass bottle saves enough energy to light a 100-watt bulb for four hours

Energy-saving lightbulbs last around ten times longer than ordinary lightbulbs- over 10,000 hours.

A laptop is more environment friendly than a desktop. It consumes five times less electricity.

An aluminum can that is thrown away will still be a can 500 years from now!

A single tree will absorb one ton of carbon dioxide over its lifetime. Shade provided by trees can also reduce your air conditioning bill by 10 to 15 per cent.

Tissue paper is a major source of waste. It takes 60,00,000 trees to make 1 year's worth of tissues for the world.

A ton of recycled paper equals or saves 17 trees in paper production.

A plant on your desk acts as a natural filter, absorbing airborne pollutants and computer radiation while replenishing oxygen levels.

Lawns only need watering once a week, post rain only after two weeks. Do watering early morning for minimal evaporation and water conservation.

Crawling traffic contributes eight times as much air pollution as traffic moving at regular highway speed.

Avoiding just 10 miles of driving every week would eliminate about 500 pounds of carbon dioxide emissions a year!

Turn off the tap when brushing your teeth and soaping your hands. This can save around 16 litres a day. That's 11,000 litre of water per person per year.

A dripping tap can waste over 20,000 litres of water every year.


Source: Green.NDTV