Religion - the greatest among man made inventions - originated in the form of certain questions against which there prevailed scope for establishment. The establishment is reckoned as the taste of majority, at a particular time, over both tangible (physical) and intangible (spiritual) areas. Establishment itself has no consistency, as it undergoes either rejection or modification over some span of time.
India has a unique feature of welcoming foreign religions like Christianity, Islam as well as witnessing the origin and development of religions such as Hinduism, Buddhism, Jainism and Sikhism. The second set of religions are often collectively called Dharmic religions.
All religions had been influenced by the natural characteristics of the place, from where they originated. Dharmic religions recommend vegetarian style of food, which may be due to the influence of the then Indian scenario - vast vegetation. At the same time, the relatively dry places like Arab, Israel-Palestine contributed to the meat-eating habit of Christianity, Islam, and Jewish. Though the religions claim its principles as as the key way for the entire humanity, in fact, they are created for those people who originated around those places. Thus there exists the prominent distinctive feature among religions and it may be the root-cause for various cultural and religious riots.
Hinduism
Hinduism, the very ancient religion of the world, has its origin in a progressive way unlike other religions. The religion imbibed its basics far before million centuries, from the then Harappa and Indus valley civilizations. Hinduism provides a vast body of scriptures. It is impossible to define the principles and theories of Hinduism as it consists of both thesis and anti-thesis, both having the same importance. While the Dvaita (dualist theory) points out the existence of both God and human soul, the theories like Advaita (non-dualist theory) say both are same. The early Sanyasis and Gurus handled both spiritual and science theorems simultaneously. These scriptures expose a vast range of theology, philosophy, and myth providing spiritual insights along with guidance on the practice of dharma (religious living).
Among such texts, Hindus reckon the Vedas along with the Upanishads as being among the foremost in authority and antiquity. Other important scriptures include the Tantras, Puranas and the epics: the Mahabharata and the Ramayana. The Bhagavad-Gita, a deeply profound conversation excerpted from the Mahabharata, is widely seen as summarizing the spiritual teachings of the Vedas.
Brahman and Atman
According to the Advaita theologies of Hinduism, Brahman (the greater Self or God) is in the highest sense and non differentiated from the world and its beings. Brahman is also sometimes seen as synonymous with the concept of Paramatma (Supreme Spirit), whereas, Atman is deemed as one’s true ‘inner self’. Advaita philosophy declares that ultimately Brahman is beyond mere intellectual description and can be understood only through direct spiritual experience, where the 'knower' and the 'known' are subsumed into the act of 'knowing'. The goal is to "wake up" and realize that one's atman, or soul, is really identical to Brahman, the upper soul.
On the other hand, Dvaita Vedanta and related devotional schools, understand Brahman as a Supreme Being who possesses personality. In these conceptions, Brahman is associated with Vishnu, Shiva or Shakti depending on the sect. Brahman is seen as fundamentally separate from its reliant souls so, in achieving liberation, individual beings experience God as an independent being.
According to the Advaita school of philosophy, the individual self and greater Self are not fundamentally distinct. They argue that the "Self" of every individual person is identical with the greater Spirit. The Upanishads say, whoever gains insight into the depths of his own nature and becomes fully aware of the atman as the innermost core of his own Self will realize his identity with Brahman and will thereby reach Moksha. According to the Dvaita school, the atman is not identical with Brahman, which is seen as being God with personality and the atman is dependent on God. Moksha depends on the cultivation of love for God and on God's grace.
Karma, Samsara and Moksha
Karma translates literally as action, work or deed and is often described as the "moral law of cause and effect". According to the Upanishads, an individual, known as the jiva-atma, develops samskaras (impressions) from actions, whether physical or mental. This cycle of action, reaction, birth, death, and rebirth is a continuum called samsara. The notion of reincarnation and karma is a strong premise in much of Hindu thought. The Bhagavad Gita states that “As a person puts on new clothes, discarding old and torn clothes, similarly an embodied soul enters new material bodies, leaving the old bodies”. Samsara provides ephemeral pleasures, which lead people to desire rebirth to enjoy the pleasures of a perishable body. It is thought that after several reincarnations, an atman eventually seeks unity with the cosmic spirit –Brahman.
The ultimate goal of life, referred to as moksha, nirvana or samadhi, is described as the realization of one's union with God; realization of one's eternal relationship with God; realization of the unity of all existence; perfect unselfishness and knowledge of the Self; liberation from ignorance; attainment of perfect mental peace; or detachment from worldly desires. Such a realization liberates one from samsara and ends the cycle of rebirth.
Vedic Literature
While they have not been dated with much certainty, even the most conservative estimates date their origin to 1200 BC or earlier. Hindus revere the Vedas as eternal truths. There are four Vedas (called Rig, Sama- Yajus and Atharva).
The Rigveda is the first and the most important Veda. Each Veda is divided into four parts: the primary one, Samhita, contains sacred mantras in verse. The other three parts form commentaries, usually in prose, which are historically believed to be slightly later in age than the Samhita. These are: Brahmanyas, Aranyakas, and the Upanishads. The Upanishads focus on spiritual insight and philosophy whereas the Vedas focus on rituals. The Upanishads discuss Brahman and reincarnation.
The Naradeya Purana describes the mechanics of the cosmos. Ithihas include Mahabharatha and Ramayana. Bhagavad-Gita is an integral part of the epic Mahabharata and one of the most popular sacred texts of Hinduism and it is described as the essence of the Vedas.
Also widely known are the Puranas, which illustrate Vedic ideas through vivid narratives dealing with deities, and their interactions with humans. A more controversial text, the Manusmriti or "Code of Manu", is a prescriptive lawbook which instructs the society codes and defines caste-system.
Varnas and the Caste System
Hindus and scholars debate whether the caste system is an integral part of Hinduism sanctioned by the scriptures or an outdated social custom. Although the scriptures contain passages that can be interpreted to sanction the Varna system, they contain indications that the caste system is not an essential part of the religion, and both sides in the debate can find scriptural support for their views. The oldest scriptures, the Vedas, place little emphasis on the caste system, mentioning it rarely and in a cursory manner.
Hindu society has traditionally been categorized into four classes, called Varnas. It is argued that in ancient times, the Varnas were merely labels based upon occupation. The Varnas were Brahmins: teachers and priests; Kshatriyas: warriors and kings; Vaishyas: farmers, merchants, and businessmen; and Shudras: servants and labourers.
In the Vedic Era, there was no prohibition against the Shudras (which later on became the low-castes) listening to the Vedas or participating in any religious rite the case. But later caste-system become a prominent allegation from the cultural reformers, when it turned to be considering Shudras as lowest class and they denied of social justice.
Thursday, December 24, 2009
Making the Right First Impression in your New Job
You’ve got a new job and you’re really looking forward to giving it your best. The next step is to direct all your energies into giving your 100% in making just the right first impression on the job. This is because the first few days on a new job are crucial and set the right tone for times to come.
Here are some simple tips that can prepare you for the new job and help you to make the right first impression –
1. Dress smartly and professionally – The way you dress and your overall appearance says a lot about you degree of professionalism. Being well groomed is definitely more appreciable than having an unkempt look.
2. Value time and be punctual – In the first few weeks on the job, everything you do is under close scrutiny. Hence, make sure to reach office on time. It is also recommended to leave only around the time when everyone else is leaving.
3. Maintain a Good Attendance – Avoid being irregular especially during the first few months on the new job. By being at work on time everyday, you will display your professional attitude and create a good first impression.
4. Become a Team Worker & be friendly & positive – Don’t wait for other to approach you and make you feel comfortable. Instead, you’re the initiative to introduce yourself to your co workers. Aim at learning their names quickly. Be positive, energetic and proactive. The sooner you show your team spirit and your ability to work as a part of a team, the better.
5. Ask Questions clear your doubts & learn – The first few weeks are important as they set the tone for the future. Hence, make the most of every opportunity that comes your way. It is okay to be inquisitive and ask questions. Show your eagerness to learn and grasp as much as you can as quickly as possible.
6. Stay away from gossip – Avoid playing any role in office politics. Every organization has its share of gossip mongers and if you are able to identify them, early on, try to steer clear of them.
7. Maintain a good rapport with your boss – Every once in a while, have a light hearted conversation with your boss and let him / her know of your progress.
Here are some simple tips that can prepare you for the new job and help you to make the right first impression –
1. Dress smartly and professionally – The way you dress and your overall appearance says a lot about you degree of professionalism. Being well groomed is definitely more appreciable than having an unkempt look.
2. Value time and be punctual – In the first few weeks on the job, everything you do is under close scrutiny. Hence, make sure to reach office on time. It is also recommended to leave only around the time when everyone else is leaving.
3. Maintain a Good Attendance – Avoid being irregular especially during the first few months on the new job. By being at work on time everyday, you will display your professional attitude and create a good first impression.
4. Become a Team Worker & be friendly & positive – Don’t wait for other to approach you and make you feel comfortable. Instead, you’re the initiative to introduce yourself to your co workers. Aim at learning their names quickly. Be positive, energetic and proactive. The sooner you show your team spirit and your ability to work as a part of a team, the better.
5. Ask Questions clear your doubts & learn – The first few weeks are important as they set the tone for the future. Hence, make the most of every opportunity that comes your way. It is okay to be inquisitive and ask questions. Show your eagerness to learn and grasp as much as you can as quickly as possible.
6. Stay away from gossip – Avoid playing any role in office politics. Every organization has its share of gossip mongers and if you are able to identify them, early on, try to steer clear of them.
7. Maintain a good rapport with your boss – Every once in a while, have a light hearted conversation with your boss and let him / her know of your progress.
Youth In Politics
Ever since the poll results of the 15th Lok Sabha are out every body is talking about the young elects of the nation. These politically young (although under 40’s) are the issue in almost in all forums, blogs, print and other media. Although this 15th LS has witnessed many changes like 79 under 40’s, more than 10% of women M.P’s (58), the youngest MP Muhammed Hamdulla Sayeed (26 Years), so on and so forth. The real scenario which is ought to be changed seems to be not changed yet. Nothing has changed. The power is vested in those hands, in which it has been for so many years. Consider the names of the persons who have been embraced by the various portfolios.
Agatha Sangma, Jyotiraditya Scindia, Sachin Pilot, R P N Singh, Jitin Prasada, Arun Yadav, Pratik Prakashbapu Patil. These names remind me of some thing. Yes, these names consist of the sir names of those who served our nation in various political cadres in the past. It seems that the family dynasty era has reentered our country. From the early 1900’s, in India, it was only the business that was run by the families and it seems now the turn came for the politics.
So nothing has changed or I didn’t see any thing new, like if it is P.A Sangma earlier it is Ms. Agatha Sangma now and Sachin pilot in the place of Rajesh Pilot. Is that a real change that is going to turn the political scenario or the pace of countries growth? These politically young scions from years are part and parcel of their family run politics in one way or the other. There may be a chance that they were accustomed to see the things from the same window, which their hierarchical heads of the family had show them. Can they come out of the vicious circles of money, political games, power, caste etc to reach the hand of the common man, to lift him from various adversities like poverty, illiteracy, basic amenities that he has been facing from the years?
The lives of many of our country’s political gurus have gone in the process of protecting their seats in politics, satisfying their whims and fancies at the cost of common man’s needs and now came the members of the same families to reinforce India. So, nothing has changed (it seems).
Wait, I for got something, it seems something has got changed. Just consider the names we have considered earlier. Agatha Sangma (Lawyer by profession and also an environmentalist) Jyotiraditya Scindia (Worked as an Investment Banker with Merrill Lynch and Morgan Stanley. MBA from Stanford), Sachin Pilot (Worked for 2 years with General Motors. Studied at Wharton Business School, Pennsylvania), R P N Singh (Graduated from St Stephen College, New Delhi), Jitin Prasada (Did his MBA from IMI, New Delhi), Arun Yadav (He is a Commerce graduate.
He enjoys cricket and badminton), Pratik Prakashbapu Patil (Diploma holder in Automobile Engineering). Yes, this is a point to be given a look. It seems that we have found a ray of hope for the uplift we have been waiting for. In the current global scenario where the neighboring countries are suffering from internal conflicts and some are piling the nuclear resources and posing a threat for India’s sovereignty and in some countries our people are being assaulted due to racial discriminations. What India needs is the proactive leadership not a reactive one which the country is experiencing hitherto. The young India is characterized by individuality, inquisitiveness and aspiration to achieve. These are the qualities that need to be adopted by the so called politically young elects of the country. May with their sound knowledge which they have gained from the premium institutes in the world and using the experiences which they have got from their families and mixing it with their intuition, these young guns can give a new face to the India by accelerating its growth pace.
Yes, there is a need for a proactive leadership rather than a reactive one and as an optimist I strongly believe that the change has begun and if not today definitely in the near future these young politicians are going to keep India in a glorified position with their educational qualifications, experience from their families and intuition.
Agatha Sangma, Jyotiraditya Scindia, Sachin Pilot, R P N Singh, Jitin Prasada, Arun Yadav, Pratik Prakashbapu Patil. These names remind me of some thing. Yes, these names consist of the sir names of those who served our nation in various political cadres in the past. It seems that the family dynasty era has reentered our country. From the early 1900’s, in India, it was only the business that was run by the families and it seems now the turn came for the politics.
So nothing has changed or I didn’t see any thing new, like if it is P.A Sangma earlier it is Ms. Agatha Sangma now and Sachin pilot in the place of Rajesh Pilot. Is that a real change that is going to turn the political scenario or the pace of countries growth? These politically young scions from years are part and parcel of their family run politics in one way or the other. There may be a chance that they were accustomed to see the things from the same window, which their hierarchical heads of the family had show them. Can they come out of the vicious circles of money, political games, power, caste etc to reach the hand of the common man, to lift him from various adversities like poverty, illiteracy, basic amenities that he has been facing from the years?
The lives of many of our country’s political gurus have gone in the process of protecting their seats in politics, satisfying their whims and fancies at the cost of common man’s needs and now came the members of the same families to reinforce India. So, nothing has changed (it seems).
Wait, I for got something, it seems something has got changed. Just consider the names we have considered earlier. Agatha Sangma (Lawyer by profession and also an environmentalist) Jyotiraditya Scindia (Worked as an Investment Banker with Merrill Lynch and Morgan Stanley. MBA from Stanford), Sachin Pilot (Worked for 2 years with General Motors. Studied at Wharton Business School, Pennsylvania), R P N Singh (Graduated from St Stephen College, New Delhi), Jitin Prasada (Did his MBA from IMI, New Delhi), Arun Yadav (He is a Commerce graduate.
He enjoys cricket and badminton), Pratik Prakashbapu Patil (Diploma holder in Automobile Engineering). Yes, this is a point to be given a look. It seems that we have found a ray of hope for the uplift we have been waiting for. In the current global scenario where the neighboring countries are suffering from internal conflicts and some are piling the nuclear resources and posing a threat for India’s sovereignty and in some countries our people are being assaulted due to racial discriminations. What India needs is the proactive leadership not a reactive one which the country is experiencing hitherto. The young India is characterized by individuality, inquisitiveness and aspiration to achieve. These are the qualities that need to be adopted by the so called politically young elects of the country. May with their sound knowledge which they have gained from the premium institutes in the world and using the experiences which they have got from their families and mixing it with their intuition, these young guns can give a new face to the India by accelerating its growth pace.
Yes, there is a need for a proactive leadership rather than a reactive one and as an optimist I strongly believe that the change has begun and if not today definitely in the near future these young politicians are going to keep India in a glorified position with their educational qualifications, experience from their families and intuition.
STORY OF SATYAM
Satyam - All Is Well That Ends Well
In Q2, our revenue grew… on the back of a 4-per cent volume growth and rupee depreciation against the US dollar… We believe these factors will also enhance annual margin performance… I would like to emphasise that Satyam is leaving no stone unturned in our efforts to create a sound foundation for our future. Note to investors from B. Ramalinga Raju, Founder & Chairman, Satyam Computer Services, when declaring the company’s results for the quarter ended September 2008
The balance sheet carries as of September 30, 2008 inflated (non-existent) cash and bank balances… The gap in the balance sheet has arisen purely on account of inflated profits over a period of last several years (limited only to Satyam stand-alone…) Note from B. Ramalinga Raju to the Board of Directors of Satyam dated January 7, 2009
About Ramalinga B Raju
Byrraju Ramalinga Raju (born September 16, 1954) is the founder of Satyam Computers and was its Chairman until January 7, 2009 when he resigned from the Satyam board after admitting to corporate fraud. For a man who ran India's fourth biggest software exporter, Mr Ramalinga Raju was not a showy person.His bungalow in Hyderabad city's upscale Banjara Hills is an understated two-storey structure, with parking for no more than three or four cars.
Friends who have dealt with the 54-year-old chairman of Satyam Computer Services, say it is difficult to know what he is thinking behind a calm exterior. He goes for morning walks, but seldom appears at the swinging parties of Hyderabad's elite. Behind his back, they sometimes refer to him as 'the man with the Mona Lisa smile'. Mr Raju, a native of Andhra Pradesh state in southern India, had a comfortable head start: He studied abroad, obtaining a business management degree from Ohio State University.
On his return, he began his career with forays into construction. Satyam, was set up in 1987 with 20 employees as Raju spotted the opportunity in outsourced code-writing.
He was on the board of Naandi, a non-governmental organisation based in Hyderabad which does stellar work in providing clean drinking water in rural areas and supplying mid-day meals to more than a million schoolchildren across India. He also runs the Byrraju Foundation, named after his father, and an emergency ambulance service that has won global acclaim.
About Satyam Computer Services Ltd
"The truth is as old as the hills" opined Mahatma Gandhi, So a company named "Satyam" (Truth, in Sanskrit) inspired trust, Satyam Computer Services Ltd was founded in 1987 by B Ramalinga Raju. The company offers Information Technology (IT) services spanning various sectors, and is listed on the New York Stock Exhcnage and Euronext. Satyam's network covers 67 countries across six continents. The company employs 40000 IT professionals across development centers in India, the United States, the United Kingdom, the United Arab Emirates, Canada, Hungary, Singapore, Malaysia, China, Japan, Egypt and Australia It serves over 654 global companies, 185 of which are Fortune 500 corporations.
Satyam has strategic technology and marketing alliances with over 50 companies. Apart from Hyderabad, it has development centers in India at Bangalore, Chennai, Pune, Mumbai, Nagpur, Delhi, Kolkatta, Bhubneshwar, and Vishakhapatnam
Chronology of Satyam - Sr.No. Year Event
1 1987 Ramalinga Raju establishes Satyam Computer Services Ltd.
2 1991 Satyam gets listed on the Bombay Stock Exchange, IPO oversubscribed 17 times.
3 2006 Revenues cross '$1 billion.' Raju becomes Nasscom Chairman.
4 2007 Raju named Ernst & Young Entrepreneur of the Year.
5 2008 September 23 Satyam awarded with Golden Peacock Award for Corporate Governance and Compliance..
December 16 Satyam Chairman Ramalinga Raju announces plan to buy Maytas Infra and Maytas Properties owned by his sons for $1.6 billion.
December 17 Raju does a U-turn because of negative investor reaction
December 23 Satyam barred from business with the World Bank for 8 years for alleged malpractices in securing contracts. Shares fall to lowest in 4 years.
December 25 Satyam asks World Bank to apologize
December 26 Board member Mangalam Srinivasan resigns followed by exits of members Vinod Dham, Krishna Palepu..
December 30 One of Satyam's largest investors says it could sell its stake.More suitors join in the fray to acquire Satyam.6 2009
January 2 Satyam says its founder's stake fell by a third to 5.13%.
January 6 Satyam's i-bank DSPML meets Sebi, informs about accounting irregularitites
January 7 Ramalinga Raju resigns, discloses a Rs 7000-crore accounting fraud in balance sheets about cash which never existed in the company.
January 8 Satyam's bank Citibank freezes its 30 accounts. Interim CEO Ram Mynampati says company in severe cash crunch and may not be able to pay salaries. Satyam's auditor PwC faces ire.
January 9 Ramalinga Raju and his younger brother B Rama Raju arrested by Police. Central Govt disbands Satyam board, to appoint its own 10 directors.
January 10 Satyam's largest investor Lazard seeks a nomination board. SEBI grills Raju.
January 11 New Satyam Board announced, Mr. Deepak Parekh, Kiran Karnik and C Achuthan appointed as board members
Feburary 5 A S Murthy appointed as new CEO
April 16 Company Law Board approved stake sale to Tech Mahindra
The Satyam Scandal – Explained
Satyam, which ironically means 'truth' in Sanskrit, was set up in 1987 with 20 employees as Raju spotted the opportunity in outsourced code-writing. Within no time, business was booming. Andhra Pradesh, of which Hyderabad is the capital, has one of the largest pools of skilled manpower in India. Satyam would prove a doughty competitor to its rivals, pricing its services so aggressively that some thought it was prepared to go with minimum profits in order to gain customers. And it expanded aggressively overseas. When he opened his Sydney office a few years ago, he occupied premises vacated by a top global IT firm. In China, provincial leaders vied to invite Satyam to set up operations in their areas. But once Mr Raju sold shares to the Indian public in 1992 and later, went for a New York listing in 2001, pressure grew on him to improve the company's performance. Ever competitive, he was also in a rush to catch the market leaders, Tata Consultancy Services, Infosys Technologies and Wipro. Raju was obsessed with getting past the billion-dollar sales mark. When he got there, he wanted to post US$2 billion. Satyam posted US$2.1 billion (S$3.1 billion) sales in the year to March 31, 2008.With the ever-rising pressure to perform, Satyam began doctoring the books to show bigger profits, a process that began several years back.
For Satyam, the recent developments are a direct leftover of the past. In fact, the story is about a decade old. In late 1999, IndiaWorld — a largely unknown internet firm — was acquired by Satyam group company, Satyam Infoway, for an eye-popping Rs 500 crore. The consternation that accompanied this deal was not hard to comprehend. IndiaWorld had a topline of just Rs 1 crore and a net profit of an insignificant Rs 25 lakh. At Rs 500 crore, Satyam Infoway, later renamed Sify, was paying this astronomical sum not just for IndiaWorld but for a number of sites that came with it — among them were samachar.com, khel.com and khoj.com. The argument dished out was based on the potential of the internet business and the logic of eyeballs was driving this valuation story. One was not sure about the source of funds and how much money went back to Ramalinga Raju.
A few months later in 2000, shareholders of Satyam were an irate lot. At the annual general meeting (AGM) of the company in Hyderabad in May 2000, shareholders accused Satyam of withholding facts and claimed they were defrauded. This was after the merger of three subsidiaries — Satyam Enterprise Solutions (SESL), Satyam Renaissance Consulting and Satyam Spark Solutions — with Satyam Computer Services. Post merger, 8 lakh shares of Satyam Computers were allotted to C Srinivasa Raju, who was then Satyam Computers’ executive director.
Shareholders contended that SESL had made a rights issue of 12 lakh shares at par just before this merger. A third of this was bought by Satyam Computer while the remaining 8 lakh shares went Srinivasa Raju’s way after they were renounced. Once shareholders of SESL were given shares in Satyam Computers in a 1:1 proportion, Mr. Raju got 8 lakh shares at just Rs 10 each, when the shares were trading at a whopping Rs 1,600. The management of Satyam Computers, however, maintained that things were above board, though shareholders thought otherwise. The seeds of accounting manipulation in Satyam were sown several quarters before Ramalinga Raju’s communiqué to the board on Wednesday, 7th Jan-09. In 2002, the department of company affairs (DCA) was in receipt of a slew of complaints from Satyam’s shareholders that there were accounting irregularities in the company. Here, it was stated that Satyam’s directors invested unwisely in subsidiaries that were underperformers. This merely facilitated the process of tax evasion and employing methods such as writing off large amounts on depreciation.
At first blush, Raju’s statement to the board (Raju’s letter to the board Appended as Annexure I) in which he confesses to inflating profits appears a act of contrition by a man who was willing to stand up and face the music for his transgressions. If Raju was dressing up the bottom line, it was only to boost the company’s valuation and ensure that it stayed in the big league of IT services. A higher valuation also enabled Raju to borrow more money against his shareholding.
But Where Did the Money Go?
Raju claims that Satyam inflated profits for many years...
• By inflating cash and bank balances of Rs 5,040 crore (as against Rs 5,361 crore reflected in the books)
• Accrued interest of Rs 376 crore is non-existent
• Liability of Rs 1,230 crore is understated on account of funds arranged by "me"
• Debtors position of Rs 490 crore is overstated (as against Rs 2,651 reflected in the books)
but if this Rs 7,000-odd crore did not exist…
• How were the salaries of 53,000 employees being paid with a business that ostensibly survived on just a 3 per cent operating margin?
• Were there more employees on the bench (than revealed)?
• Was Raju inflating profits to boost Satyam's valuation, and borrowing money by pledging its shares?
...but if the money did exist...
• Did the Rajus use Satyam funds to build a land bank of over 6,000 acres via a web of unlisted companies?
• What happened to the funds raised? There was an ADR issue in 2001, via which Satyam raised Rs 753 crore and on March 31, 2002, Satyam became an almost zero-debt company with Rs 431 crore unutilised amount of ADR proceeds
The Cash Was King for Satyam
If Satyam was fudging profits, where were the funds for all-cash acquisitions coming from?
Sr.No Year Acquired Firm Profession Funding
(Amount in $)
1 Apr-05 UK based Citisoft PLC Business Consulting Firm 38Mn (Paid in tranches)
2 July-05 Singapore based Knowledge Dynamcis Consulting Solution Provider 3.3 Mn (All cash deal)
3 Oct-07 UK based Nikor Global Solutions Infrastructure based management services and consultancy group 5.5 Mn (All cash deal)
4 Jan-08 Chicago based Bridge Stratergy Group Management consulting firm 35.00 Mn (All cash deal)
5 Apr-08 Caterpiller Inc Market research and customer analytics operations 95.5 Mn for both deals (all cash purchase)
S& V Management Consultants Supply chain management frim
Satyam - All Is Well That Ends Well - Continued
In Q2, our revenue grew… on the back of a 4-per cent volume growth and rupee depreciation against the US dollar… We believe these factors will also enhance annual margin performance… I would like to emphasise that Satyam is leaving no stone unturned in our efforts to create a sound foundation for our future. Note to investors from B. Ramalinga Raju, Founder & Chairman, Satyam Computer Services, when declaring the company’s results for the quarter ended September 2008
The balance sheet carries as of September 30, 2008 inflated (non-existent) cash and bank balances… The gap in the balance sheet has arisen purely on account of inflated profits over a period of last several years (limited only to Satyam stand-alone…) Note from B. Ramalinga Raju to the Board of Directors of Satyam dated January 7, 2009
About Ramalinga B Raju
Byrraju Ramalinga Raju (born September 16, 1954) is the founder of Satyam Computers and was its Chairman until January 7, 2009 when he resigned from the Satyam board after admitting to corporate fraud. For a man who ran India's fourth biggest software exporter, Mr Ramalinga Raju was not a showy person.His bungalow in Hyderabad city's upscale Banjara Hills is an understated two-storey structure, with parking for no more than three or four cars.
Friends who have dealt with the 54-year-old chairman of Satyam Computer Services, say it is difficult to know what he is thinking behind a calm exterior. He goes for morning walks, but seldom appears at the swinging parties of Hyderabad's elite. Behind his back, they sometimes refer to him as 'the man with the Mona Lisa smile'. Mr Raju, a native of Andhra Pradesh state in southern India, had a comfortable head start: He studied abroad, obtaining a business management degree from Ohio State University.
On his return, he began his career with forays into construction. Satyam, was set up in 1987 with 20 employees as Raju spotted the opportunity in outsourced code-writing.
He was on the board of Naandi, a non-governmental organisation based in Hyderabad which does stellar work in providing clean drinking water in rural areas and supplying mid-day meals to more than a million schoolchildren across India. He also runs the Byrraju Foundation, named after his father, and an emergency ambulance service that has won global acclaim.
About Satyam Computer Services Ltd
"The truth is as old as the hills" opined Mahatma Gandhi, So a company named "Satyam" (Truth, in Sanskrit) inspired trust, Satyam Computer Services Ltd was founded in 1987 by B Ramalinga Raju. The company offers Information Technology (IT) services spanning various sectors, and is listed on the New York Stock Exhcnage and Euronext. Satyam's network covers 67 countries across six continents. The company employs 40000 IT professionals across development centers in India, the United States, the United Kingdom, the United Arab Emirates, Canada, Hungary, Singapore, Malaysia, China, Japan, Egypt and Australia It serves over 654 global companies, 185 of which are Fortune 500 corporations.
Satyam has strategic technology and marketing alliances with over 50 companies. Apart from Hyderabad, it has development centers in India at Bangalore, Chennai, Pune, Mumbai, Nagpur, Delhi, Kolkatta, Bhubneshwar, and Vishakhapatnam
Chronology of Satyam - Sr.No. Year Event
1 1987 Ramalinga Raju establishes Satyam Computer Services Ltd.
2 1991 Satyam gets listed on the Bombay Stock Exchange, IPO oversubscribed 17 times.
3 2006 Revenues cross '$1 billion.' Raju becomes Nasscom Chairman.
4 2007 Raju named Ernst & Young Entrepreneur of the Year.
5 2008 September 23 Satyam awarded with Golden Peacock Award for Corporate Governance and Compliance..
December 16 Satyam Chairman Ramalinga Raju announces plan to buy Maytas Infra and Maytas Properties owned by his sons for $1.6 billion.
December 17 Raju does a U-turn because of negative investor reaction
December 23 Satyam barred from business with the World Bank for 8 years for alleged malpractices in securing contracts. Shares fall to lowest in 4 years.
December 25 Satyam asks World Bank to apologize
December 26 Board member Mangalam Srinivasan resigns followed by exits of members Vinod Dham, Krishna Palepu..
December 30 One of Satyam's largest investors says it could sell its stake.More suitors join in the fray to acquire Satyam.6 2009
January 2 Satyam says its founder's stake fell by a third to 5.13%.
January 6 Satyam's i-bank DSPML meets Sebi, informs about accounting irregularitites
January 7 Ramalinga Raju resigns, discloses a Rs 7000-crore accounting fraud in balance sheets about cash which never existed in the company.
January 8 Satyam's bank Citibank freezes its 30 accounts. Interim CEO Ram Mynampati says company in severe cash crunch and may not be able to pay salaries. Satyam's auditor PwC faces ire.
January 9 Ramalinga Raju and his younger brother B Rama Raju arrested by Police. Central Govt disbands Satyam board, to appoint its own 10 directors.
January 10 Satyam's largest investor Lazard seeks a nomination board. SEBI grills Raju.
January 11 New Satyam Board announced, Mr. Deepak Parekh, Kiran Karnik and C Achuthan appointed as board members
Feburary 5 A S Murthy appointed as new CEO
April 16 Company Law Board approved stake sale to Tech Mahindra
The Satyam Scandal – Explained
Satyam, which ironically means 'truth' in Sanskrit, was set up in 1987 with 20 employees as Raju spotted the opportunity in outsourced code-writing. Within no time, business was booming. Andhra Pradesh, of which Hyderabad is the capital, has one of the largest pools of skilled manpower in India. Satyam would prove a doughty competitor to its rivals, pricing its services so aggressively that some thought it was prepared to go with minimum profits in order to gain customers. And it expanded aggressively overseas. When he opened his Sydney office a few years ago, he occupied premises vacated by a top global IT firm. In China, provincial leaders vied to invite Satyam to set up operations in their areas. But once Mr Raju sold shares to the Indian public in 1992 and later, went for a New York listing in 2001, pressure grew on him to improve the company's performance. Ever competitive, he was also in a rush to catch the market leaders, Tata Consultancy Services, Infosys Technologies and Wipro. Raju was obsessed with getting past the billion-dollar sales mark. When he got there, he wanted to post US$2 billion. Satyam posted US$2.1 billion (S$3.1 billion) sales in the year to March 31, 2008.With the ever-rising pressure to perform, Satyam began doctoring the books to show bigger profits, a process that began several years back.
For Satyam, the recent developments are a direct leftover of the past. In fact, the story is about a decade old. In late 1999, IndiaWorld — a largely unknown internet firm — was acquired by Satyam group company, Satyam Infoway, for an eye-popping Rs 500 crore. The consternation that accompanied this deal was not hard to comprehend. IndiaWorld had a topline of just Rs 1 crore and a net profit of an insignificant Rs 25 lakh. At Rs 500 crore, Satyam Infoway, later renamed Sify, was paying this astronomical sum not just for IndiaWorld but for a number of sites that came with it — among them were samachar.com, khel.com and khoj.com. The argument dished out was based on the potential of the internet business and the logic of eyeballs was driving this valuation story. One was not sure about the source of funds and how much money went back to Ramalinga Raju.
A few months later in 2000, shareholders of Satyam were an irate lot. At the annual general meeting (AGM) of the company in Hyderabad in May 2000, shareholders accused Satyam of withholding facts and claimed they were defrauded. This was after the merger of three subsidiaries — Satyam Enterprise Solutions (SESL), Satyam Renaissance Consulting and Satyam Spark Solutions — with Satyam Computer Services. Post merger, 8 lakh shares of Satyam Computers were allotted to C Srinivasa Raju, who was then Satyam Computers’ executive director.
Shareholders contended that SESL had made a rights issue of 12 lakh shares at par just before this merger. A third of this was bought by Satyam Computer while the remaining 8 lakh shares went Srinivasa Raju’s way after they were renounced. Once shareholders of SESL were given shares in Satyam Computers in a 1:1 proportion, Mr. Raju got 8 lakh shares at just Rs 10 each, when the shares were trading at a whopping Rs 1,600. The management of Satyam Computers, however, maintained that things were above board, though shareholders thought otherwise. The seeds of accounting manipulation in Satyam were sown several quarters before Ramalinga Raju’s communiqué to the board on Wednesday, 7th Jan-09. In 2002, the department of company affairs (DCA) was in receipt of a slew of complaints from Satyam’s shareholders that there were accounting irregularities in the company. Here, it was stated that Satyam’s directors invested unwisely in subsidiaries that were underperformers. This merely facilitated the process of tax evasion and employing methods such as writing off large amounts on depreciation.
At first blush, Raju’s statement to the board (Raju’s letter to the board Appended as Annexure I) in which he confesses to inflating profits appears a act of contrition by a man who was willing to stand up and face the music for his transgressions. If Raju was dressing up the bottom line, it was only to boost the company’s valuation and ensure that it stayed in the big league of IT services. A higher valuation also enabled Raju to borrow more money against his shareholding.
But Where Did the Money Go?
Raju claims that Satyam inflated profits for many years...
• By inflating cash and bank balances of Rs 5,040 crore (as against Rs 5,361 crore reflected in the books)
• Accrued interest of Rs 376 crore is non-existent
• Liability of Rs 1,230 crore is understated on account of funds arranged by "me"
• Debtors position of Rs 490 crore is overstated (as against Rs 2,651 reflected in the books)
but if this Rs 7,000-odd crore did not exist…
• How were the salaries of 53,000 employees being paid with a business that ostensibly survived on just a 3 per cent operating margin?
• Were there more employees on the bench (than revealed)?
• Was Raju inflating profits to boost Satyam's valuation, and borrowing money by pledging its shares?
...but if the money did exist...
• Did the Rajus use Satyam funds to build a land bank of over 6,000 acres via a web of unlisted companies?
• What happened to the funds raised? There was an ADR issue in 2001, via which Satyam raised Rs 753 crore and on March 31, 2002, Satyam became an almost zero-debt company with Rs 431 crore unutilised amount of ADR proceeds
The Cash Was King for Satyam
If Satyam was fudging profits, where were the funds for all-cash acquisitions coming from?
Sr.No Year Acquired Firm Profession Funding
(Amount in $)
1 Apr-05 UK based Citisoft PLC Business Consulting Firm 38Mn (Paid in tranches)
2 July-05 Singapore based Knowledge Dynamcis Consulting Solution Provider 3.3 Mn (All cash deal)
3 Oct-07 UK based Nikor Global Solutions Infrastructure based management services and consultancy group 5.5 Mn (All cash deal)
4 Jan-08 Chicago based Bridge Stratergy Group Management consulting firm 35.00 Mn (All cash deal)
5 Apr-08 Caterpiller Inc Market research and customer analytics operations 95.5 Mn for both deals (all cash purchase)
S& V Management Consultants Supply chain management frim
Satyam - All Is Well That Ends Well - Continued
26/11 – Mumbai Terror Attacks
Thoughts from tonight’s terrorist attacks in Mumbai city…
The news was shocking. But the loud explosion sounds were scary and reminded me of the afternoon from the Mumbai ‘93 blasts.
I would say, this terror strike has been the most gruesome. The modus operandi of random firings, grenade attacks and taking foreigners as hostages seem to have created more panic than location based bomb blasts.
Something to focus on – this time the terrorists have attached the most posh area of the city and kept their focus on hotels and not market places or railway trains. Keeping in mind the locations they attacked the hotels at a good time – when most people are back in their rooms.
Arnab Goswami of Times Now took a good stand of not showing the gruesome visuals of the dead terrorists and also not sharing details of the army/ats plans to attack the oberoi/trident and taj to flush out the terrorist.
Encounter Specialist Vijay Salaskar and ATS Chief Hemant Kalaskar, ACP Ashok Kamate, Additional Commissioner Ashok Kamte – We salute you to have given a brave service to the city of Mumbai.
Hats off to the TV channel reporters for getting as close to the strike locations braving the cross-firing and grenade attacks and sending in LIVE reports to the viewers.
An intensive twitter network helped share news and touch base with loved ones when typically during these times phone lines get jammed right away.
In these times of recession when businesses don’t see a great future certain business sectors like hotels & travel are going to be hit further after these terror strikes. I am sure we will hear of cancellations and poor business in the next few weeks.
And lastly, my heartfelt condolences to all those who may have lost a loved one in these attacks. Meanwhile we Mumbaikars, being the toughies we are I am sure will be back at work very soon putting these attacks once again in the history of the many other terror strikes.
The news was shocking. But the loud explosion sounds were scary and reminded me of the afternoon from the Mumbai ‘93 blasts.
I would say, this terror strike has been the most gruesome. The modus operandi of random firings, grenade attacks and taking foreigners as hostages seem to have created more panic than location based bomb blasts.
Something to focus on – this time the terrorists have attached the most posh area of the city and kept their focus on hotels and not market places or railway trains. Keeping in mind the locations they attacked the hotels at a good time – when most people are back in their rooms.
Arnab Goswami of Times Now took a good stand of not showing the gruesome visuals of the dead terrorists and also not sharing details of the army/ats plans to attack the oberoi/trident and taj to flush out the terrorist.
Encounter Specialist Vijay Salaskar and ATS Chief Hemant Kalaskar, ACP Ashok Kamate, Additional Commissioner Ashok Kamte – We salute you to have given a brave service to the city of Mumbai.
Hats off to the TV channel reporters for getting as close to the strike locations braving the cross-firing and grenade attacks and sending in LIVE reports to the viewers.
An intensive twitter network helped share news and touch base with loved ones when typically during these times phone lines get jammed right away.
In these times of recession when businesses don’t see a great future certain business sectors like hotels & travel are going to be hit further after these terror strikes. I am sure we will hear of cancellations and poor business in the next few weeks.
And lastly, my heartfelt condolences to all those who may have lost a loved one in these attacks. Meanwhile we Mumbaikars, being the toughies we are I am sure will be back at work very soon putting these attacks once again in the history of the many other terror strikes.
Christmas Articles
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Christmas Stars
Sparkling Christmas stars are exclusively designed to add distinctive charm and elegance to the home decor on the special occasion of Christmas. These stars are adorned with beautiful embellishments.
Hanging Balls
The mesmerizing artistry done to create these dazzling designer Christmas balls. Accentuated with golden bow, the hanging balls are is certain to give an exclusive look to the environs.
Tassels
Create a magical as well as gracious atmosphere with decorative tassels. Accentuated with interesting and unique embellishments, the tassels are perfect make any decor more attractive.
Boxes & Baskets
Bring a royal touch to the gifts with boxes and baskets for those special ceremonial occasions. Our splendidly designed boxes and baskets are perfect for those who like to present gifts stylishly.
Stocking Holders
Simple yet very cute stocking holders reflect strong style statement and elegance to the decor of the room at Christmas. They are tastefully designed and aptly complimented by contrasting strings.
send enquiry
Candle Holders
Extremely beautiful and luxurious candle stand made of finest material give an amusing sheen to the room. These functional pieces will automatically grab the attention towards them.
Holy Crosses
Impressive holy crosses made with qualitative termite proof wood is given refine and detail treatment with some intricate carvings on it. Statue of Jesus gives gives a peaceful and enchanting look.
Wednesday, December 23, 2009
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