01-21-2009, 10:12 AM
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><!--QuoteBegin-Mudy+Jan 19 2009, 03:35 AM--><div class='quotetop'>QUOTE(Mudy @ Jan 19 2009, 03:35 AM)<!--QuoteEBegin-->
My Webpage<!--QuoteBegin--><div class='quotetop'>QUOTE<!--QuoteEBegin-->Undoubtedly, this is going to hurt the prospects of foreign money flowing into India in the near future as well; and it was anyway looking a little shaky in the aftermath of the Mumbai invasion and the prospect of war with Pakistan. This will help extend the liquidity crunch and will depress the stock market. After all, India, running a substantial current account deficit, has been using inflows to help fuel its rapid growth. At a time when the incoming US President is warning of trillion-dollar deficits, India is likely to suffer from a cash crunch. Thus the overall growth prospects of the country may also be affected. Thus, it is a disaster for the country on any number of fronts.<!--QuoteEnd--><!--QuoteEEnd-->
Taking the current development into consideration on Satyam It clearly is a different case of fraud and not measurable as Enron case and cannot be equated with Erons magnitude.Satyam accounts were fudged but the company did make money that was diverted elsewhere.
So this cannot impact the economy as was percieved earliar although the dent in the image is fairly visible.
When the learned Professor from IIM made the above statement he must have anticipated the Eron effect like most of the industry captains.But that is not the case now.
Satyam is not collapsing and there are takers coming forward to rectify it and soon by the end of 2009 Satyam will no longer be Satyam but merged with some other brand and peoples memory is vague this will be a thing of the past but the lessons will be surely embedded.
The global investors confidence is shaken but not broken.So gradually the bigger picture of the Indian market will prevail.
Satyam has the daunting task now to retains its employees and its customers so that the intellectual value is not damaged.
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->There may be a political angle to the Satyam scandal. <b>Professor Vaidyanathan of IIM Bangalore has raised the possibility that there is a nexus between election-bound politicians and Satyam (Impending polls may have pushed Satyam off cliff, DNA, Jan 10, 2009). There are also allegations about gigantic transfers of wealth to private hands, for instance in the under-pricing of the wireless spectrum. Surely, the politicians who enabled the skimming off of public wealth would have gained something in the process, too?</b> There is something worrying in the quality of Indiaâs democracy if it sustains ââ and in fact needs ââ such fraudulent behaviour<!--QuoteEnd--><!--QuoteEEnd-->
[right][snapback]93424[/snapback][/right]
<!--QuoteEnd--></div><!--QuoteEEnd--><!--QuoteEnd--></div><!--QuoteEEnd-->
What is more important now is to punish every one seriously who were stake holders in the fraud and make sure that in the memory of the corporate this becomes a big example to prevent any such future episodes and those who have already gone the "RAJU" way can rectify their actions before its too late.
This needs tighter legislations on governance and the law that will make auditors responsible and not mere act as a rubber stamp.
They need Rs 150 crore to take things forward and L&T has come forward to examine the take over modalities while the government is pulling in the initial capital to keep the company floating .Kiran Karnik has also made a wise statement that Satyam will make profits in its present status.
What is to be now seen is that will the corporates break away from the nexus with political funds and politicians and build a more healthy system of market dynamics.
My Webpage<!--QuoteBegin--><div class='quotetop'>QUOTE<!--QuoteEBegin-->Undoubtedly, this is going to hurt the prospects of foreign money flowing into India in the near future as well; and it was anyway looking a little shaky in the aftermath of the Mumbai invasion and the prospect of war with Pakistan. This will help extend the liquidity crunch and will depress the stock market. After all, India, running a substantial current account deficit, has been using inflows to help fuel its rapid growth. At a time when the incoming US President is warning of trillion-dollar deficits, India is likely to suffer from a cash crunch. Thus the overall growth prospects of the country may also be affected. Thus, it is a disaster for the country on any number of fronts.<!--QuoteEnd--><!--QuoteEEnd-->
Taking the current development into consideration on Satyam It clearly is a different case of fraud and not measurable as Enron case and cannot be equated with Erons magnitude.Satyam accounts were fudged but the company did make money that was diverted elsewhere.
So this cannot impact the economy as was percieved earliar although the dent in the image is fairly visible.
When the learned Professor from IIM made the above statement he must have anticipated the Eron effect like most of the industry captains.But that is not the case now.
Satyam is not collapsing and there are takers coming forward to rectify it and soon by the end of 2009 Satyam will no longer be Satyam but merged with some other brand and peoples memory is vague this will be a thing of the past but the lessons will be surely embedded.
The global investors confidence is shaken but not broken.So gradually the bigger picture of the Indian market will prevail.
Satyam has the daunting task now to retains its employees and its customers so that the intellectual value is not damaged.
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->There may be a political angle to the Satyam scandal. <b>Professor Vaidyanathan of IIM Bangalore has raised the possibility that there is a nexus between election-bound politicians and Satyam (Impending polls may have pushed Satyam off cliff, DNA, Jan 10, 2009). There are also allegations about gigantic transfers of wealth to private hands, for instance in the under-pricing of the wireless spectrum. Surely, the politicians who enabled the skimming off of public wealth would have gained something in the process, too?</b> There is something worrying in the quality of Indiaâs democracy if it sustains ââ and in fact needs ââ such fraudulent behaviour<!--QuoteEnd--><!--QuoteEEnd-->
[right][snapback]93424[/snapback][/right]
<!--QuoteEnd--></div><!--QuoteEEnd--><!--QuoteEnd--></div><!--QuoteEEnd-->
What is more important now is to punish every one seriously who were stake holders in the fraud and make sure that in the memory of the corporate this becomes a big example to prevent any such future episodes and those who have already gone the "RAJU" way can rectify their actions before its too late.
This needs tighter legislations on governance and the law that will make auditors responsible and not mere act as a rubber stamp.
They need Rs 150 crore to take things forward and L&T has come forward to examine the take over modalities while the government is pulling in the initial capital to keep the company floating .Kiran Karnik has also made a wise statement that Satyam will make profits in its present status.
What is to be now seen is that will the corporates break away from the nexus with political funds and politicians and build a more healthy system of market dynamics.