I had picked up Satyam Computers Ltd, at Rs.18.5 and I have said that long back during the market hours. Today also I took some chance and bought some shares at Rs.32 in the beginning of trade. Satyam Computers Ltd according to my expectations moved up by more than 40%, today as the investors rushed to buy the shares of this erstwhile blue chip company thinking of the "Golden Hand of the Government of India". The stock should move up in the near future, as the government aids stats to flow in....
The government at the centre took very a good decision to save one of the "Poster Boys of Indian IT Industry", Satyam Computers Ltd, by constituting a board and then gradually zeroing in its other operations----this is indeed a laudable step of the UPA government which should be appreciated.
We all know that because of the untiring efforts of the last few governments irrespective of their colours, the Indian IT Flag could be seen, in nook and corner of the world. Indian IT firms even conquered the coveted World Bank contracts with ease. But it is lamenting to note that off-late the UPA government has dished out very little on the plates of IT companies, inspite of them contributing more 5% to the Indian GDP and more than 40% in the services sector. So in the last few years, the UPA government has left the "IT baby in a bath tub unattended" to perish and die. The time has come for them to prove that this government is genuinely interested to save the India's reputation in the world, as an IT giant.
It would not be too much exaggeration to say that, Satyam Computers Ltd is like Taj Hotel of Mumbai which has its own iconic status developed over the years. Hence this case should be looked into in a more sympathetic way like the Mumbai attack has been segregated from other attacks. It is to be understood some rogue political outfits like the communists that the promoters have tried to "do some accounts juggling for the betterment of either Satyam Computers Ltd or Maytas Infra Ltd" not for their personal gains. In a confession Mr.Ramalinga Raju mentioned that manipulation of the accounts were done secretly to: (a) prevent any hostile takeovers and (b) get some good contracts (read overseas contracts).
Hence the said accounts has been manipulated not for personal gains but for the overall health of the company which could not be achieved at the end due to sudden change in the world events. Also too much investor activism aborted the deal of Maytas Infra deal, which was the last attempt by the Satyam management to replace fictitious assets with the genuine assets. Had Satyam Computer's management succeeded in that attempts, Satyam Computers Ltd might had been saved from this catastrophe; since the Maytas Infra Ltd's board had been convinced that the payment could be delayed.
With the UPA government virtually doing nothing for the IT sector in the last few months, the situation turned worse, as the interest costs mounted.
Now coming to the basic question whether the Indian Government should come to the rescue of this IT major and salvage India's pride in the world arena. In this context it is worth mentioning that the governments across the world never thought twice, when they awarded contracts to Satyam Computers Ltd......because of its near iconic status as the poster boys in the Indian IT industry. Hence, why should they leave now. Also, to be given a large contracts, needs lot of clouts and reputation. Moreover suddenly one cannot leave a contract and move ahead.
Satyam Computers Ltd has world class facilities and also one of the best manpower in the Indian IT sector. There will be vested interest groups or individuals like Mr.Anil Singhvi (former managing director of Ambuja Cements) who now represents RNRL, who will be there to misguide everyone. Why should whole company and its employees be targeted when its management cooked the books.....
I am also deeply anguished by comments made by Arnab Goswami and D Raja, that whole company is involved in the scam--this is false and misdirected. If anyone has the guts in Satyam, he/she should file a PIL against these people, so that they can be taught a lesson for misleading the innocent masses.
From the standpoint of hostile takeover, Mr. Singhvi will never think it prudent for the government to help Satyam Computers Ltd as because it will dim their chances to buy this world class company at the price of penny. Mr.Singhvi knows very well that if the government does not help this giant, it will not survive and then ADAG group from where this fellow hails will find it easy to net the catch without much hassle.
Anil knows everything and valuation of this company in the world market....Hence this protest against the government help. But the same UPA government (which is supported by Anil Ambani's Samajbadi Party) threw Rs.60, 000 to farmers, many of whom were alleged to be fictitious in the books. If his boss Anil Ambani was happy to see Rs.60, 000 of Indian Tax payers money being disturbed like fruits to some group in the name of farmers, then I do not understand why he should be cynical this time........Hence, it does not take too much time to understand the real cause of this opposition.
Thus, in the midst of all the "Halla" made by the Times Today in collusion with the Mr.D Raja and a misguided Mr.Anil Singhvi regarding the very old debate of using tax payers money for "bail outs", I would respond these people saying that, this debate has long been put to "economic dustbins" world over in the last few months. Both of them and Mr.Arnab Goswami (A wrong person chosen as an anchor for today's debate in Times Today) should know that worldwide bailouts are 10 times bigger than Indian economy. The size of the entire Indian economy, where the impact of global crisis has been relatively less disastrous, pales at about one trillion dollar. To give a little history of bailout in the last few months, let me jot down a very key highlights:
In their efforts to tackle the global economic crisis, the rescue packages announced by the governments across the world has crossed $10 trillion mark ( about Rs.50,00,000 crore) - an amount equivalent to nearly 10 times the total size of Indian economy, in last December, 2008 itself. Both Mr.D Raja, representing a 19th century philosophy, and Mr. Anil Singhvi, who wants Satyam Computers Ltd to perish so that ADAG Group can buy it at the cost of penny, might have been either sleeping or training guns on some management for a hostile takeover. Moreover, such bail out amounts are believed to grow even bigger with the turmoil still being in expansion mode. A lion’s share of about three-fourth of the worldwide bailout package of about $10.1 trillion has come from the world’s biggest economy, the US, whose total national debt has also incidentally crossed the $10 trillion mark. America set the ball rolling for such packages, with the world’s largest economy announcing $700 billion plan primarily to shore up the fortunes of the country’s battered financial institutions. Taking into account other rescue acts by the US, its total bailout plan runs into more than $7 trillion. Various European nations together have come up with about $1.3 trillion in financial assistance apart from the European Commission urging the constituent countries to pledge nearly $254 billion. Further, Germany has thrown lifelines to the tune of $60 billion to save the country’s leading financial firms - Dexia Bank and Hypo Real Estate - both of which were battered by the worsening economic turmoil. While Hypo Real Estate received $50 billion, Dexia Bank got a lifeline worth about $10 billion. Among the developing nations, China has announced a massive $586 billion plan to boost its economy and the funds would be mainly utilised for infrastructure projects.
India also earlier Nationalised Insurance Companies and also loss making banks.....and how can this case be isolated when the fate of 53, 000 employees were involved. The suggestion of not helping by the government though could look apparently look Sexy, but in the real sense, this will destroy the credibility of the Indian IT sector among the world population. There is already a racial part involved in the third world countries and hence I do not know if in future, this could be used by the rulers of the western world to hoodwink their electorate, in the matters of outsourcing of IT jobs to India.
Moreover, by helping the world class companies, like Satyam Computers Ltd, the government will facilitate the flow of work to the Indian shores, during the recession, when, companies world-wide look for cheap clients to do the works for them. Indian being a cheap destination, and hence it a fact that Indian IT companies would do better than their peers in the west---India n government should not let this chance pass by.... Moreover, other major bailouts in recent times include $572 billion pumped by Ireland administration to strengthen the country’s banks, $150 billion pledged by Russia and $30 billion put in by the Poland government.
THUS IN THE LAST FEW MONTHS BAILOUT HAS BEEN A COMMON TERM ACROSS THE WORLD and how can India be aloof from what is happening across the world.
From the political standpoint the stubborn and misinformed Mr.Raja representing an old fashioned political ideology, should note that, this kind of opposition to the Bail Outs in the USA, sank the boat of Republicans and brought in a socialist in the name of Mr.Barrack Obama. By opposing the rescue package for the 53, 000 Satyam workers, he is only gambling too much with his vote banks.
Mr.Raja, it is the promoters who should be punished for doctoring the account and not the company. It is because a company consists of human resources which if utilised properly can work wonders. But if the same workforce is used for some ulterior motives then, those perpetrator should be booked but not the innocent ones.
Moreover, Mr. Raju did all he could at his disposal not for his individual benefits but for the benefit of the shareholders and employees. OR ELSE WHY SHOULD HE PLEDGE HIS VERY OWN SHARES TO GET THE MONEY FOR RUNNING OF THE COMPANY. I have never seen Mr.Raja doing some charitable work, except shouting platitudes and slogans in time and again for his own benefits or for the benefits of the party he is holding.
Mr.D Raja should know that his ideological gurus in the Peoples Republic of China CHINA announced on Friday, a huge loan package for its main aircraft maker and tax breaks for its airlines, as further evidence emerged of the industry's troubles amid the global economic crisis. China's fledgling aerospace industry hopes to take advantage of the crisis to gain a foothold in international markets at a time when US and European rivals are finding it harder to get credit. China's Vice Minister of Finance Lou Jiwei said in Beijing in 2003, that the Chinese government is prepared to inject money into the Industrial and Commercial Bank of China (ICBC) and the Agricultural Bank of China (ABC), two of the country 's "big four" state owned banks. This was at that time, the second bank bailout since the end of 2003, when China granted 45-billion-dollars to the Construction Bank and Bank of China, two other "big four" banks. Mr. Raja, are they not done by the tax payers money in China, but unfortunately we do not hear too much from you all, about all hidden cases.
In the United Kingdom, the administration announced injection of more than 100 billion dollar, with funds primarily utilised to rescue its banks. Bradford & Bingley, which was on the verge of collapse received nearly $33 billion from the administration. Mr.Raja, Mr.Anil Singhvi and Arnab Goswami, do u want to mean that the governments across the world who come in the rescue of some iconic companies are all fools and you are the ony enlightened guys over, there----you should bow your heads in shame, as you want to to push those employees in Satyam Computers Ltd in hell, who have a family to feed, a child to educate and old parents to look after----shame on you all. Your the murderers of Humanity and the ugly face of "Stalinist ideology"..........53,000 strong employees of Satyam Computers Ltd might "Spit on you" after watching your shameless faces on television channels.........
However, leaving two non-political personalities, this is expected from the leaders of a political party with an outdated ideology, some of whose leaders supported the nasty, partition of India and supported that demon known a Mohammad Ali Jinnah, saying "Just and Progressive demand of Indian Muslims".
No comments:
Post a Comment