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कोटा का विकास

2011-04-15T18:15:00.001+05:30

कोटा का विकास – समस्याएं और समाधान

- एस एन घाटिया

जब हम विकास की बात करते हैं तो सिद्धांत रूप में यह बात उभर कर सामने आती है कि विकास समस्या और समाधान की एक शाश्वत प्रक्रिया है. कोई समस्या सामने आती है और मानव मस्तिष्क प्रयास कर उसका हल खोज लेता है. लेकिन उस समाधान के परिणामस्वरूप कोई नई समस्या उत्पन्न होती है और फिर उसका समाधान खोजा जाता है. इस प्रकार समस्या और समाधान की यह प्रक्रिया शाश्वत काल से चली आ रही है. इसी सिद्धांत को ले कर सामान्य भाषा में एक कहावत भी प्रचलित है कि आवश्यकता आविष्कार की जननी है. हम कह सकते हैं कि विकास मानव स्वभाव की एक मूल प्रवृत्ति है. मनुष्य कभी भी अपनी वर्तमान स्थिति से संतुष्ट नहीं होता है और वह प्रगति की नई राह खोजता रहता है. यही कारण है कि बौद्धिक, आर्थिक, सामाजिक और सांस्कृतिक दृष्टि से अन्य प्राणियों की तुलना में मानव क्रमिक विकास के पथ पर सदैव अग्रसर रहा है और आज वह निर्विवाद रूप से सृष्टि की सर्वश्रेष्ठ कृति है.

वस्तुतः यथास्थिति से संतुष्ट नहीं रहने की प्रवृत्ति के कारण ही मानव जाति का उत्तरोत्तर विकास संभव हो सका है. समस्या और समाधान के इस कार्य-कारण संबंध से ही विकास और विनाश का अनन्य संबंध भी स्थापित होता है. ज़ब भी सुनामी या अन्य किसी विपदा से विनाश होता है तो मानव मन अपने स्वभाव के अनुरूप पुनः नव-निर्माण के प्रयास में जुट जाता है और तब तक चैन नहीं लेता है जब तक कि पहले से बेहतर स्थिति प्राप्त नहीं कर ले. साथ ही, यह भी सत्य है कि जब विकास चरम सीमा पर पहुंच जाता है तो विनाश की प्रक्रिया आरंभ हो जाती है. यही कारण है कि मानव जाति के इतिहास में कई सभ्यताओं का उत्थान और पतन हुआ. संक्षेप में, हम यह कह सकते हैं कि विनाश और विकास एक ही सिक्के के दो पहलू हैं और एक में दूसरे के बीज अंतर्निहित होते हैं.
विकास - किसकी जिम्मेदारी?

विकास की प्रक्रिया के इस सैद्धांतिक पक्ष को समझने के पश्चात यह प्रश्न उठना स्वाभाविक है कि समस्याओं का समाधान खोजने का उत्तरदायित्व किसका है? उत्तर स्पष्ट है - प्रजातंत्र के रूप में हमने लोक-कल्याणकारी शासन (Welfare State) को स्वीकार किया है. इसलिए जन कल्याण की सभी समस्याओं के समाधान खोजने और उन्हें योजना के रूप क्रियांवित करने की जिम्मेदारी सरकार की है. चाहे समस्या बिजली, पानी, पेट्रोल, डीज़ल, सड़क, शिक्षा, चिकित्सा या रोज़गार की हो, हर चीज के लिए हम सरकार का मुंह जोहने के अभ्यस्त हो गए हैं. इसमें हमारी कोई गलती भी नहीं है क्योंकि हमें यही समझाया गया है कि सरकार बनाने के लिए आप हमें वोट दो और सरकार चलाने के लिए टैक्स दो. बस, फिर आपकी सभी समस्याओं को हल करने की जिम्मेदारी हमारी है. आज़ादी के बाद कुछ सालों तक तो यह व्यवस्था ठीक-ठाक चली क्योंकि सरकार के मन में भी ईमानदारी थी और जनता मे भी सहनशीलता थी कि नई-नई सरकार है, इसे अवसर दिया जाना चाहिए. किंतु यह हनीमून पीरियड ज्यादा नहीं चला. लगभग दो दशक बाद ही सरकारी नुमाइन्दे और कारिन्दे समझ गए कि सत्ता-सुख स्थायी नहीं है और फिर संपत्ति समेटने की जो होड़ चली वह आज जग-जाहिर है. आज स्थिति यह है कि टैक्स की आमदनी का अधिकांश भाग वेतन और प्रशासनिक खर्चों में चला जाता है. विकास के लिए पैसा बचता ही नहीं है. इसलिए सरकार द्वारा ऋण लिए जाते हैं, किंतु उसकी भी सीमा हम पार कर चुके हैं. अब विकास कैसे हो? इसके लिए एक नया कंसेप्ट चालू किया गया पी पी पी – पब्लिक-प्राइवेट पार्टनरशिप. विकास की योजनाएं इतनी विशाल हैं कि अकेली सरकार उन्हें नहीं चला सकती है. अतः विकास की प्रक्रिया में प्राइवेट सेक्टर की भागीदारी आवश्यक है. आज हम देखते हैं कि रैलवे के अलावा सरकारी एकाधिकार के लगभग सभी क्षेत्र धीरे-धीरे प्राइवेट सेक्टर के लिए खोल दिए गए हैं – शिक्षा, चिकित्सा, सड़कें, बिजली, पेट्रोल-डीज़ल, बैंकिंग-बीमा, डाक व फ़ोन सेवाएं इत्यादि. प्राइवेट सेक्टर के आने के बाद इन क्षेत्रों में प्रतियोगिता बढ़ी है और सेवाओं में सुधार देखने को मिला है.

विकास का मूल आधार क्या है? अब यह अच्छी तरह स्पष्ट हो चुका है कि विकास के लिए सरकारी संरक्षण का कोई अर्थ नहीं रह गया है. वनों के विकास के लिए हमने वन विभाग बनाया और वन समाप्त हो गए. सरकारी संरक्षण की यही कहानी हम चिकित्सा, शिक्षा, सड़कों, रोडवेज़ बसों, बिजली, पानी, डाक आदि क्षेत्रों के विकास में देखते हैं. किसी भी स्थान या क्षेत्र का विकास मूल रूप से दो बातों पर निर्भर करता है. प्रथम, वहां की भौगोलिक स्थिति, जलवायु और प्राकृतिक संसाधन जैसे नदियां, समुद्र, झीलें, भूमि का उपजाऊपन, खनिज पदार्थ इत्यादि. दूसरी, उसके नागरिकों की दृढ़ इच्छा शक्ति एवं नेतृत्व की योग्यता.

विकास की प्रक्रिया के इस परिप्रेक्ष्य में कोटा संभाग की स्थिति को समझने के लिए हमें कोटा के आर्थिक व व्यावसायिक इतिहास में जाना होगा. समय-समय पर यहां की अर्थव्यवस्था को प्रभावित करने वाले कारकों के आधार पर कोटा शहर को अलग-अलग नामों से पुकारा जाता रहा है.

नन्दग्राम
ललित कला अकादमी द्वारा प्रकाशित पुस्तक The Kingdom That Was Kota के अनुसार, सन 1719 में गोस्वामी गोपीनाथजी से वल्लभ कुल में दीक्षा लेने के पश्चात, महाराव भीमसिंह I नें आधिकारिक रूप से कोटा का नाम नंदग्राम कर दिया था. उस समय सरकारी पट्टों और परवानों (आदेशों) पर लगाई जाने वाली मोहर पर लिखा होता था:

उत्कीर्ण काया सर्वदा सर्वभाविणः भजनीयो प्रजाधिपः

भीमस्य कृष्ण दासस्य राजसिंह मध मुद्रिका

तत्पश्चात, सन 1744 में श्री मथुराधीशजी के मंदिर की स्थापना पाटनपोल में हुई. लगभग दो शताब्दियों तक इस मंदिर के कारण वैष्णवों के पुष्टिमार्गीय संप्रदाय का एक प्रमुख तीर्थस्थान बना रहा. यद्यपि यह नाथद्वारा या कांकरोली की तरह अधिक विकसित नहीं हो सका, पुष्टिमार्गीय संप्रदाय की श्रद्धा का केंद्र होने के कारण धार्मिक पर्यटन स्थल (नन्दग्राम) के रूप में भी कोटा की अर्थव्यवस्था को उस समय की परिस्थितियों के अनुरूप गति मिली.

दशहरा मेला
देश में मैसूर के बाद कोटा की ख्याति राष्ट्रीय स्तर के दशहरे मेले के कारण भी रही है. यद्यपि बदलते समय के साथ आज दशहरा मेला मनोरंजन का पर्याय रह गया है, किसी समय इस मेले का कोटा की अर्थव्यवस्था में महत्वपूर्ण योगदान हुआ करता था. इसका आरंभ एक धार्मिक मेले के रूप में सन 1723 में महाराव दुर्जनशाल सिंह द्वारा किया गया था. महाराव उम्मेद सिंह II (1889-1940) नें इस मेले का विस्तार कर इसे क्रय-विक्रय का केंद्र बना एक नया आर्थिक आयाम और अत्यधिक लोकप्रियता प्रदान की. कालांतर में इसे राष्ट्रीय मेले का दर्जा मिला.

सुगम भौगोलिक स्थिति, कृषि के लिए अनुकूल जलवायु और प्राकृतिक संसाधनों का लाभ कोटा को आरंभ से ही मिलता रहा है. ब्रिटिश शासन में दिल्ली-बंबई रैल मार्ग का निर्माण कोटा के आर्थिक विकास को सुदृढ़ता प्रदान करने में नींव का पत्थर साबित हुआ. इसके कारण कोटा की कृषि उपज और खनिज पदार्थों की पहचान देश-विदेश के बाज़ारों में हो गई. यही कारण है कि रैलवे लाइन के आसपास स्थानीय उद्योगों का विकास आरंभ हुआ.

स्वतंत्रता के पश्चात, 1948 में विलय के समय कोटा रियासत की वार्षिक आय लगभग रु. 1.25 करोड़ थी. तत्कालीन रियासत द्वारा नवनिर्मित राजस्थान प्रांत को अन्य परिसंपत्तियों के अलावा रु. 2.5 करोड़ नकद प्रदान किए गए थे.

स्वतंत्रता से पूर्व आधुनिक नागरिक सुविधाओं - नल, बिजली, शिक्षा, चिकित्सा व यातायात के साधन इत्यादि – की दृष्टि से कोटा रियासत की गिनती न केवल राजपूताने बल्कि पूरे भारत की गिनी-चुनी प्रगतिशील रियासतों में होती थी. महाराव उम्मेदसिंह II (1889-1940) के शासन काल में ही कोटा शहर में पहली बार नल-बिजली की सुविधा नागरिकों को उपलब्ध हो गई थी. सन 1909 में उच्च शिक्षा हेतु हाड़ोती का प्रथम हर्बर्ट हाईस्कूल (वर्तमान गवर्नमेंट कॉलेज) स्थापित किया जा चुका था जो कि 1956 में स्नातकोत्तर महाविद्यालय के रूप में क्रमोन्नत हो गया. इसी प्रकार लड़कियों की शिक्षा हेतु पहली बार 1916-17 में विद्यालय (वर्तमान जे डी बी गर्ल्स कॉलेज) की स्थापना की गई जो 1958 में स्नातक महाविद्यालय के रूप में क्रमोन्नत हो कर वर्तमान में स्नातकोत्तर स्तर का प्रमुख महाविद्यालय है. शिक्षा के क्षेत्र में इन प्रारंभिक प्रयासों का ही परिणाम है कि आज राजस्थान में साक्षरता की दृष्टि से कोटा का प्रथम स्थान (73.78%) है. 1940 के पश्चात, महाराव उम्मेदसिंह II के उत्तराधिकारी के रूप में महाराव भीमसिंह नें अपने पिता की प्रगतिशील नीतियों का अनुसरण करते हुए कोटा के विकास को जारी रखा. उनके समय में संचार साधनों के विस्तार पर विशेष ध्यान दिया गया और सीमेंट सड़कों का निर्माण कराया गया. इसी समय कोटा में एयरपोर्ट और महाराव भीमसिंह हॉस्पिटल का निर्माण हुआ.

कोटा स्टोन

व्यापार-व्यवसाय की दृष्टि से खाद्यान्नों, छत और फर्शी के लिए सैंड स्टोन (लाल पत्थर) और लाइम स्टोन (कोटा स्टोन) का देश के दूसरे भागों में भारी मात्रा में निर्यात आरंभ हुआ. लाखेरी में एसोसिएटेड सीमेंट कंपनी (एसीसी) की सीमेंट फैक्ट्री और रामगंजमंडी में एसोसिएटेड स्टोन कंपनी के चालू होने से स्थानीय अर्थव्यवस्था को गति मिली. लघु स्तर पर, जगपुरा में चूने के भट्टे और कैथून में कोटा साड़ी भी उल्लेखनीय हैं. यह उल्लेखनीय है कि राष्ट्रीय और अंतर्राष्ट्रीय पर कोटा की पहचान कोटा स्टोन और कोटा साड़ी के कारण भी रही है.

चंबल
एक महत्वपूर्ण प्राकृतिक संसाधन के रूप में चंबल नदी को कोटा की जीवन रेखा माना जाता है. स्वतंत्रता के आरंभिक वर्षों में चंबल घाटी परियोजना के अंतर्गत विभिन्न बांधों के निर्माण का कोटा के विकास में महत्वपूर्ण योगदान रहा है. चंबल कभी नहीं सूखने वाली नदी है. देश की प्रथम पंचवर्षीय योजना के अंतर्गत चंबल घाटी परियोजना का कार्य 1953 में आरंभ हो गया था और सिंचाई के लिए 1960 में नहरों से जल उपलब्ध करा दिया गया था. इस परियोजना के चार बांध तीन चरणों में बनाए गए थे. प्रथम चरण में, गांधी सागर डैम और कोटा बैराज का निर्माण 1960 में पूरा कर लिया गया था. द्वितीय चरण में, राणा प्रताप सागर बांध (रावतभाटा) 1970 में और तृतीय चरण में जवाहर सागर बांध 1972 में बन गए थे. लगभग एक दशक तक चंबल परियोजनाओं के विशाल निर्माण कार्यों के कारण कोटा की अर्थव्यवस्था को बल मिला. चंबल के नहरी जल की उपलब्धता से कोटा, बूंदी और बारां क्षेत्रों में विकास का एक नया युग आरंभ हुआ और कोटा चंबल के कारण भी जाना जाने लगा.

औद्योगिक नगरी
कोटा में जल और विद्युत की प्रचुरता के साथ ब्रॉडगेज रैल लाइन की उपलब्धता नें औद्योगिक समूहों को आकर्षित किया और इसी के साथ आरंभ हुआ आधुनिक बड़े उद्योगों की स्थापना का एक नया दौर. कुछ उल्लेखनीय नाम हैं - डीसीएम, जे के सिंथेटिक्स, ओरियंटल पॉवर कैबल्स, इंस्ट्रुमेंटेशन, रावतभाटा में एटोमिक पॉवर प्लांट, थर्मल प्लांट और मल्टीमेटल्स इत्यादि. इन उद्योगों की स्थापना के कारण कोटा एक औद्योगिक नगरी और राजस्थान के कानपुर के नाम से जाना लगा. इन बड़े उद्योगों की स्थापना के कारण जहां एक और कोटा के व्यापार-व्यवसाय और अनुषंगी लघु उद्योगों का विस्तार हुआ, वहीं दूसरी और बल्लभबाड़ी, बल्लभनगर, दादाबाड़ी और विज्ञाननगर जैसी बृहद नई आवासीय कालोनियों का निर्माण हुआ. आर्थिक विकास की दृष्टि से इसका लाभ सभी वर्गों को रोजगार, व्यापार और व्यवसाय के प्रचुर अवसरों के रूप में मिला.

कोटा में वर्तमान में कोई नियमित विमान सेवा नहीं है. विमान सेवा किसी भी शहर के विकास का एक मापदंड मानी जाती है. इस मापदंड पर हम कोटा को 1960 के दशक में अधिक विकसित कह सकते हैं क्योंकि उस समय यह विमान सेवा के माध्यम से दिल्ली, जयपुर इत्यादि शहरों से जुड़ा हुआ था.

औद्योगिक रुग्णता
राजनैतिक इतिहास की तरह, आर्थिक इतिहास में भी उत्थान और पतन का क्रम देखने को मिलता है. इन्हें तेजी और मंदी के आर्थिक चक्र कहते है. 1980 के दशक में श्रमिक आंदोलनों और अन्यान्य कारणों से कोटा में औद्योगिक रुग्णता का जो दौर आरंभ हुआ वह कोटा की अर्थव्यवस्था के लिए घातक सिद्ध हुआ. एक के बाद एक, लगभग सभी प्रमुख उद्योग रुग्ण होते गए. 1970 के दशक के पश्चात कोटा संभाग का विकास लगभग थम सा गया था. कोई नए उद्योग या विकास की सरकारी परियोजनाएं यहां नहीं आ रही थीं. कुछ विश्लेषक इसका एक मुख्य कारण इस संभाग को विरोधी राजनीतिक दल का गढ़ होना भी मानते हैं. जनमानस में यह एक सामान्य धारणा बन गई है कि प्रदेश का मुख्यमंत्री जिस क्षेत्र का होता है वहां का विकास अधिक होता है.

शैक्षणिक नगरी
जैसा कि कहा जाता है, जब विकास का मार्ग अवरुद्ध हो जाता है तो कोई नई राह खुलती है. औद्योगिक रुग्णता के फलस्वरूप उत्पन्न आर्थिक मंदी से उबरने के लिए कोटा में कोचिंग संस्थाएं विकसित होने लगीं. व्यक्तिगत परिस्थितियों के कारण 1984 में श्री वी के बंसल द्वारा जे के कॉलोनी के एक गेरीज में शुरू की गई कोचिंग कक्षाएं आज एक विशाल उद्यम के रूप में विकसित हो चुकी हैं. सन 1986 में कोटा के एक कोचिंग छात्र को आइ आइ टी (I.I.T.) की प्रवेश परीक्षा में शीर्ष स्थान प्राप्त होने के बाद यहां कोचिंग उद्यम द्रुत गति से विकसित होने लगा. इंजीनियरिंग और मेडिकल इत्यादि की प्रवेश परीक्षाओं की तैयारी के लिए इस समय बाहर के लगभग 70,000-80,000 छात्र अध्ययन करते हैं जिनका कोटा की अर्थव्यवस्था में लगभग रु.600 करोड़ वार्षिक का योगदान है. कोचिंग संस्थाओं नें इस व्यवसाय में लगभग रु.500 करोड़ का विनिवेश किया हुआ है. मोटे रूप से, कोचिंग छात्रों की वृद्धि दर लगभग 10 प्रतिशत वार्षिक है. इसमें कोई संदेह नहीं है कि कोचिंग उद्योग के कारण कोटा की अर्थव्यवस्था को एक नई गति मिली है और अखिल भारतीय स्तर पर अब शैक्षणिक नगरी के रूप में इसकी ख्याति स्थापित हो चुकी है. कोटा के कोचिंग उद्योग की बढ़ती हुई ख्याति से प्रभावित हो अमेरिका से श्री एरिक बेलमेन नें व्यक्तिगत रूप से 2008 में कोटा आ कर विशेष रूप से यहां की बंसल क्लासेज की कोचिंग प्रणाली का नजदीक से अध्ययन किया. उनकी विश्लेषणात्मक रिपोर्ट को India's Cram-School Confidential: Two Years, One Test, 40,000 Students Town Fills With Teens Studying Full-Time For a College Entrance Exam; 'Bansalites Rock' शीर्षक से अमेरिका के प्रमुख दैनिक समाचार पत्र “वाल स्ट्रीट जरनल” (30 09 2008) में प्रकाशित किया गया. इस रिपोर्ट में कोटा की अर्थव्यवस्था पर कोचिंग उद्योग के प्रभाव को निम्नलिखित शब्दों में व्यक्त किया गया है: Cramming has been the salvation of Kota, an industrial center in the 1970s that then fell on hard times. In the past three years, new malls, restaurants, hotels, Internet cafes and clothing stores began to spring up to serve the 16- and 17-year-old cram kids. Many homeowners have added second and third floors to rent out to students.

Balwan Diwani, manager of Milan Cycle, a bike shop in Kota, says bicycle sales have surged to more than 2,000 a year from fewer than 200 five years ago. Mamta Bansal, no relation to the school founder, quit her job as a maid to start a service to deliver boxed lunches and dinners to 30 students as they study. "We try to make what their mothers would cook for them," she says. "I have had to learn how to make dishes from Gujarat, the Punjab and southern India."

Local schools also have benefited: Cram students have to attend regular classes so they can pass their high-school exams and graduate. Some high schools have early morning classes so cram students can finish early and move on to cramming.

"There used to be a lot of hooliganism and goons," says Pradeep Singh Gour, director of the Lawrence and Mayo Public School in Kota. "Now the entire city is like a university campus."

कोचिंग के कारण बढ़ती हुई ख्याति के कारण विगत कुछ वर्षों से कोटा को व्यावसायिक द्वेष से प्रेरित राजनैतिक पक्षपात का सामना करना पड़ रहा है. इस पक्षपात के प्रमुख उदाहरण हैं - कोटा के स्थान पर जोधपुर में आइ आइ टी (I.I.T.) की स्थापना करना और इंजीनियरिंग व मेडिकल प्रवेश परीक्षाओं के केंद्र कोटा में नहीं रखना. यद्यपि इस वर्ष के बजट में यहां आइ आइ आइ टी (I.I.I.T.) की स्थापना की घोषणा की गई है, यह भविष्य के गर्भ में है क्योंकि पहले आइ आइ टी भी कोटा को देने की घोषणा की गई थी किंतु अंततोगत्वा इसे जोधपुर को दे दिया गया. इन नकारात्मक परिस्थितियों के बावजूद, कोटा की कोचिंग संस्थाओं की गुणवत्ता व यहां के कठोर प्रतिस्पर्धात्मक वातावरण के कारण छात्रों की संख्या में प्रति वर्ष वृद्धि हो रही है. गत वर्ष (सितंबर 2010) में, कोटा की एक अग्रणी कोचिंग संस्था कैरियर प्वाइंट (Career Point Infosystems Ltd.) नें इक्विटी शेयर्स की पब्लिक इश्यू के माध्यम से पूंजी बाजार में प्रवेश किया था जिसे निवेशकों का बहुत अच्छा समर्थन मिला. कहा जाता है कि शेयर बाज़ार का रुख आर्थिक स्वास्थ्य का सही संकेतक होता है. इस दृष्टि से इस पब्लिक इश्यू को मिला प्रोत्साहन कोटा की कोचिंग संस्थाओं के लिए और अंततः यहां की अर्थव्यस्था के अच्छे स्वास्थ्य का सूचक है.

इस लेख के आरंभ में पब्लिक प्राइवेट पार्टनरशिप के माध्यम से आर्थिक विकास का उल्लेख किया गया था. न केवल कोचिंग उद्योग में अपितु उच्च शिक्षा के क्षेत्र में भी हम पाते हैं कि निजी क्षेत्र द्वारा कोटा में इंजीनियरिंग, डेंटल, मैनेजमेंट और सामान्य विषयों के महाविद्यालयों की स्थापना की जा चुकी है. इसी प्रकार, चिकित्सा के क्षेत्र में भी कॉरपोरेट हॉस्पिटल्स कार्य कर रहे हैं. निजी क्षेत्र में ही, मल्टी स्टोरी बिल्डिंग्स और टाउनशिप्स की संख्या में भी तेजी से वृद्धि हो रही है.

उक्त विश्लेषण से स्पष्ट है कि कोटा के आर्थिक विकास में (विशेष रूप से स्वतंत्रता के पश्चात) इसकी भौगोलिक स्थिति, जलवायु, प्राकृतिक संसाधनों, कृषि योग्य उपजाऊ भूमि, जल स्त्रोत खनिज संपदा का विशेष योगदान रहा है - चाहे वह 1950 का दशक हो या फिर 1960-70 के दशक या वर्तमान काल. इन सभी अनुकूल तत्वों के कारण कोटा के विकास की अपरिमित संभावनाएं हैं. किसी समय यह माना जाता था कि कोटा में उद्यमिता (entrepreneurship) की कमी है. किंतु यहां के संसाधनों से आकर्षित हो बाहर के उद्यमियों के आने, शिक्षा के विकास और स्वस्थ प्रतिस्पर्धा के कारण स्थानीय उद्यमिता भी विकसित हुई है और कोटा के सतत विकास की संभावनाएं प्रबल हैं.

National Symbols of India

2010-01-26T12:04:00.010+05:30

Happy Republic Day

As we celebrate our 60th Republic Day, here is something really important.

It is true that all of us are fully grown up and knowledgeable individuals.

There is no denying the fact that we have grown wiser too, with so many happenings and revelations since 1947 on the political and international arena.

So talking about national symbols and patriotism may sound somewhat naive.

We don't need any coaching and least of all any spoon-feeding!

Nonetheless, there is always need for refreshing our knowledge from time to time.

So, back to basics once again...

May be, at least it reminds us of our happy school days when we used to be so innocently enthusiastic about Republic Day and Independence Day parades, celebrations, debate competitions, tournaments, races, matches, jhankis, patriotic songs, laddus, live commentary and speeches from the ramparts of Red Fort through All India Radio!

Presuming, all this makes you nostalgic about school days, I am tempted to append below the first Republic Day speech by Dr. Rajendra Prasad, the first President of India.

All of us are already familiar with Pt. Nehru's famous and emotive speech Tryst With Destiny.
So, let us have a look at this historical speech by Dr. Rajendra Prasad also.
Jai Hind...Jai Hind...Jai Hind

NATIONAL SYMBOLS OF INDIA

National Flag
The National Flag is a horizontal tricolour of deep saffron (kesaria) at the top, white in the middle and dark green at the bottom in equal proportion. The ratio of width of the flag to its length is two to three. In the centre of the white band is a navy-blue wheel which represents the chakra. Its design is that of the wheel which appears on the abacus of the Sarnath Lion Capital of Ashoka. Its diameter approximates to the width of the white band and it has 24 spokes. The design of the National Flag was adopted by the Constituent Assembly of India on 22 July 1947..

Apart from non-statutory instructions issued by the Government from time to time, display of the National Flag is governed by the provisions of the Emblems and Names (Prevention of Improper Use) Act, 1950 (No. 12 of 1950) and the Prevention of Insults to National Honour Act, 1971 (No. 69 of 1971). The Flag Code of India, 2002 is an attempt to bring together all such laws, conventions, practices and instructions for the guidance and benefit of all concerned.

The Flag Code of India, 2002, took effect from 26 January 2002 and superseded the 'Flag Code-Indias' as it existed. As per the provisions of the Flag Code of India, 2002, there are no restrictions on displaying the National Flag by members of general public, private organisations, educational institutions, etc., except to the extent provided in the Emblems and Names (Prevention of Improper Use) Act, 1950 and the Prevention of Insults to National Honour Act, 1971 and any other laws enacted on the subject.

National Bird
The Indian peacock, Pavo cristatus, the national bird of India, is a colourful, swan-sized bird, with a fan-shaped crest of feathers, a white patch under the eye and a long, slender neck. The male of the species is more colourful than the female, with a glistening blue breast and neck and a spectacular bronze-green tail of around 200 elongated feathers. The female is brownish, slightly smaller than the male and lacks the tail. The elaborate courtship dance of the male, fanning out the tail and preening its feathers is a gorgeous sight.

National Flower
Lotus (Nelumbo Nucipera Gaertn) is the National Flower of India. It is a sacred flower and occupies a unique position in the art and mythology of ancient India and has been an auspicious symbol of Indian culture since time immemorial.

India is rich in flora. Currently available data place India on the tenth position in the world and fourth in Asia in plant diversity. From about 70 per cent geographical area surveyed so far, 47,000 species of plants have been described by the Botanical Survey of India (BSI).

National Tree
Indian fig tree, Ficus bengalensis, whose branches root themselves like new trees over a large area. The roots then give rise to more trunks and branches. Because of this characteristic and its longevity, this tree is considered immortal and is an integral part of the myths and legends of India. Even today, the banyan tree is the focal point of village life and the village council meets under the shade of this tree.

National River
The Ganga or Ganges is the longest river of India flowing over 2,510 kms of mountains, valleys and plains. It originates in the snowfields of the Gangotri Glacier in the Himalayas as the Bhagirathi River. It is later joined by other rivers such as the Alaknanda, Yamuna, Sone, Gaumti, Kosi and Ghaggar. The Ganga river basin is one of the most fertile and densely populated areas of the world and covers an area of 1,000,000 sq. kms. There are two dams on the river - one at Haridwar and the other at Farakka. The Ganges River Dolphin is an endangered animal that specifically habitats this river.
The Ganga is revered by Hindus as the most sacred river on earth. Key religious ceremonies are held on the banks of the river at cities such as Varanasi, Haridwar and Allahabad. The Ganga widens out into the Ganges Delta in the Sunderbans swamp of Bangladesh, before it ends its journey by emptying into the Bay of Bengal.

National Aquatic Animal

River Dolphin is the National Aquatic Animal of India. This mammal is also said to represent the purity of the holy Ganga as it can only survive in pure and fresh waters. Platanista gangetica has a long pointed snout and also have visible teeth in both the upper and lower jaws. Their eyes lack a lens and therefore function solely as a means of detecting the direction of light. Dolphins tend to swim with one fin trailing along the substrate while rooting around with their beak to catch shrimp and fish. Dolphins have a fairly thick body with light grey-brown skin often with a hue of pink. The fins are large and the dorsal fin is triangular and undeveloped. This mammal has a forehead that rises steeply and has very small eyes. River Dolphins are solitary creatures and females tend to be larger than males. They are locally known as susu, because of the noise it makes while breathing. This species inhabits parts of the Ganges, Meghna and Brahmaputra rivers in India, Nepal, Bhutan and Bangladesh, and the Karnaphuli River in Bangladesh.

River dolphin is a critically endangered species in India and, therefore, has been included in the Schedule I for the Wildlife (Protection) Act, 1972. The main reasons for decline in population of the species are poaching and habitat degradation due to declining flow, heavy siltation, construction of barrages causing physical barrier for this migratory species.

National Animal
The magnificent tiger, Panthera tigris is a striped animal. It has a thick yellow coat of fur with dark stripes. The combination of grace, strength, agility and enormous power has earned the tiger a place of pride as the national animal of India. Out of eight races of the species known, the Indian race, the Royal Bengal Tiger, is found throughout the country except in the north-western region and also in the neighbouring countries, Nepal, Bhutan and Bangladesh. To check the dwindling population of tigers in India, 'Project Tiger' was launched in April 1973. So far, 27 tiger reserves have been established in the country under this project, covering an area of 37,761 sq km.

National Fruit
A fleshy fruit, eaten ripe or used green for pickles etc., of the tree Mangifera indica, the mango is one of the most important and widely cultivated fruits in the tropical world. This juicy fruit is a rich source of Vitamins A, C and D. In India there are over 100 varieties of mangoes, in different sizes, shapes and colours. Mangoes have been cultivated in India from time immemorial. The poet Kalidasa sang its praises. Alexander savoured its taste, as did the Chinese pilgrim Hieun Tsang. Mughal emperor Akbar planted 100,000 mango trees in Darbhanga, Bihar at a place now known as Lakhi Bagh.

National Game
India has conquered the podium when it comes to the game of Hockey. Our nation has an excellent record with eight Olympic gold medals. Indian hockey's golden period was from 1928-56, when the Indian team won six successive Olympic gold medals. Team also won the 1975 World Cup besides two more medals (silver and a bronze). The Indian Hockey Federation gained global affiliation in 1927 and joined the International Hockey Federation (FIH). Thus began the history of Indian Hockey Federation as India entered the Olympics to begin its golden saga. The tour was a huge success with India winning 18 out of the 21 matches and the legendary Dhyan Chand was the cynosure of all the eyes scoring over 100 goals out of the total 192 goals scored by the Indian team. The match began in Amsterdam in 1928 and India went on a winning spree in Los Angeles in 1932 and Berlin in 1936 and thus bagged a hat-trick of gold medals at the Olympics.

Post Indian Independence; the Indian team achieved another hat-trick of gold medals at the 1948 London Olympics, 1952 Helsinki Games and the Melbourne Olympics.

During the Golden Era, India played 24 Olympic matches, won all 24, scored 178 goals (at an average of 7.43 goals per match) and conceded only 7 goals. The two other gold medals for India came in the 1964 Tokyo Olympics and the 1980 Moscow Olympics.

State Emblem
The state emblem is an adaptation from the Sarnath Lion Capital of Ashoka. In the original, there are four lions, standing back to back, mounted on an abacus with a frieze carrying sculptures in high relief of an elephant, a galloping horse, a bull and a lion separated by intervening wheels over a bell-shaped lotus. Carved out of a single block of polished sandstone, the Capital is crowned by the Wheel of the Law (Dharma Chakra).

In the state emblem, adopted by the Government of India on 26 January 1950, only three lions are visible, the fourth being hidden from view. The wheel appears in relief in the centre of the abacus with a bull on right and a horse on left and the outlines of other wheels on extreme right and left. The bell-shaped lotus has been omitted. The words सत्यमेव जयते (Satyameva Jayate) from Mundaka Upanishad, meaning 'Truth Alone Triumphs', are inscribed below the abacus in Devanagari script.

REPUBLIC DAY MESSAGE BY THE FIRST PRESIDENT OF INDIA
DR.RAJENDRA PRASAD

We must re-dedicate ourselves on this day to the peaceful but sure realization of the dream that had inspired the Father of our Nation and the other captains and soldiers of our freedom struggle, the dream of establishing a classless, co-operative, free and happy society in "his country," "We must remember that this is more a day of dedications than of rejoicing - dedication to the glorious task of making the peasants and workers the toilers and the thinkers fully free, happy and cultured," he added.

Even before the Independence of India from the British rule on August 15, 1947, January 26th was celebrated in a different context। “It was the Lahore Session of the Indian National Congress at midnight of December 31, 1929 - January 1, 1930, that the Tri colour flag was unfurled by the nationalists and a pledge taken that every year on January 26, the "Independence Day" would be celebrated and that the people would unceasingly strive for the establishment of a Sovereign Democratic Republic of India”.

India became a Republic and the constitution came into force on January 26, 1950. The Constituent Assembly was convened and appointed a committee with Dr.B.R. Ambedkar, as Chairman to draft the Constitution. India declared herself to be a Sovereign Democratic Republic. The Indian Constitution, the longest in the world, consists of 397 articles and 12 schedules. It provides for a single citizenship for the whole of India.

Aano bhadra krtavo yantu vishwatah.- RIG VEDA
"Let noble thoughts come to me from all directions"

Satyam - another Enron!

2009-01-07T21:17:00.000+05:30

With discloures today in the resignation letter of Ramalinga Raju (Satyam's founder and Chairman), the worst fears have come true - the company is not cash rich but cash-stripped. The resignation letter answers most of the questions posed in the earlier post on this blog.

In a moment of truth, Ramalinga Raju has revealed on 07 January 2009 that the balance sheet of the company is a cooked one. Obviously these revelations in a ripple effect will have far reaching consequences on the markets. But the touching part in Raju's resignation letter is when he says, "...neither me, nor the Managing Director took even one rupee/dollar from the company and have not benefitted in financial terms on account of the inflated results."

The full text of Ramalinga Raju's resignation letter is appended below.

Taking the confessions in the letter at face value, it would appear that the company was trapped in a vicious cycle of cash crunch which was aggravated further year after year by pushing the real problem under the costly carpet. In the days to come, investors with their money trapped in the company will be eagerly watching the developments. Though in due course the law will have its course against the promoters, the moot point is whether the investors will get back their money? But then that is the risk of investing in equities!

It is said you can fool a few persons once but not all the people all the times. What is most shocking in the Satyam episode is that erudite academicians on the board, seasoned investors, professional portfolio managers, bankers, due diligence experts, legal eagles, vigilant auditors and stringent regulators in all parts of the world were simply blindfolded year after year in succession. Really dumbfounding!

The morale of the story is that equity investment is not for the gullible ones!!

____________________________________________________________________

Text of letter released by the Bombay Stock Exchange.
-------------------------------------------------------------------------------------------------
To the Board of Directors
Satyam Computer Services Ltd.

From B. Ramalinga Raju
Chairman, Satyam Computer Services Ltd.

January 7, 2009

Dear Board Members,
It is with deep regret, and tremendous burden that I am carrying on my conscience, that I would like to bring the following facts to your notice:
1. The Balance Sheet carries as of September 30, 2008
a. Inflated (non-existent) cash and bank balances of 50.40 billion rupees ($1.04 billion) (as against 53.61 billion reflected in the books).
b. An accrued interest of 3.76 billion rupees which is non-existent.
c. An understated liability of 12.30 billion rupees on account of funds arranged by me.
d. An overstated debtors position of 4.90 billion rupees (as against 26.51 billion reflected in the books)
2. For the September quarter (Q2) we reported a revenue of 27.00 billion rupees and an operating margin of 6.49 billion rupees (24 pct of revenues) as against the actual revenues of 21.12 billion rupees and an actual operating margin of 610 million rupees (3 percent of revenues). This has resulted in artificial cash and bank balances going up by 5.88 billion rupees in Q2 alone.
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 standalone, books of subsidiaries reflecting true performance). 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. It has attained unmanageable proportions as the size of company operations grew significantly (annualized revenue run rate of 112.76 billion rupees in the September quarter, 2008, and official reserves of 83.92 billion rupees). The differential in the real profits and the one reflected in the books was further accentuated by the fact that the company had to carry additional resources and assets to justify higher level of operations -- thereby significantly increasing the costs.
Every attempt made to eliminate the gap failed. As the promoters held a small percentage of equity, the concern was that poor performance would result in a take-over, thereby exposing the gap. It was like riding a tiger, not knowing how to get off without being eaten.
The aborted Maytas acquisition deal was the last attempt to fill the fictitious assets with real ones. Maytas' investors were convinced that this is a good divestment opportunity and a strategic fit. Once Satyam's problem was solved, it was hoped that Maytas' payments can be delayed. But that was not to be. What followed in the last several days is common knowledge. I would like the Board to know:
1. That neither myself, nor the Managing Director (including our spouses) sold any shares in the last eight years -- excepting for a small proportion declared and sold for philanthropic purposes.
2. That in the last two years a net amount of 12.30 billion rupees was arranged to Satyam (not reflected in the books of Satyam) to keep the operations going by resorting to pledging all the promoter shares and raising funds from known sources by giving all kinds of assurances (Statement enclosed, only to the members of the board). Significant dividend payments, acquisitions, capital expenditure to provide for growth did not help matters. Every attempt was made to keep the wheel moving and to ensure prompt payment of salaries to the associates. The last straw was the selling of most of the pledged share by the lenders on account of margin triggers.
3. That neither me, nor the Managing Director took even one rupee/dollar from the company and have not benefitted in financial terms on account of the inflated results.
4. None of the board members, past or present, had any knowledge of the situation in which the company is placed. Even business leaders and senior executives in the company, such as, Ram Mynampati, Subu D, T.R. Anand, Keshab Panda, Virender Agarwal, A.S. Murthy, Hari T, S.V. Krishnan, Vijay Prasad, Manish Mehta, Murali V, Sriram Papani, Kiran Kavale, Joe Lagiola, Ravindra Penumetsa; Jayaraman and Prabhakar Gupta are unaware of the real situation as against the books of accounts. None of my or Managing Director's immediate or extended family members has any idea about these issues.
Having put these facts before you, I leave it to the wisdom of the board to take the matters forward. However, I am also taking the liberty to recommend the following steps:
1. A Task Force has been formed in the last few days to address the situation arising out of the failed Maytas acquisition attempt. This consists of some of the most accomplished leaders of Satyam:, Subu D, T.R. Anand, Keshab Panda and Virender Agarwal, representing business functions, and A.S. Murthy, Hari T and Murali V representing support functions. I suggest that Ram Mynampati be made the Chairman of this Task Force to immediately address some of the operational matters on hand. Ram can also act as an interim CEO reporting to the board.
2. Merrill Lynch can be entrusted with the task of quickly exploring some Merger opportunities.
3. You may have a restatement of accounts' prepared by the auditors in light of the facts that I have placed before you.
I have promoted and have been associated with Satyam for well over twenty years now. I have seen it grow from few people to 53,000 people, with 185 Fortune 500 companies as customers and operations in 66 countries. Satyam has established an excellent leadership and competency base at all levels. I sincerely apologize to all Satyamites and stakeholders, who have made Satyam a special organization, for the current situation. I am confident they will stand by the company in this hour of crisis.
In light of the above, I fervently appeal to the board to hold together to take some important steps. Mr. T.R. Prasad is well placed to mobilize support from the government at this crucial time. With the hope that members of the Task Force and the financial advisor, Merrill Lynch (now Bank of America) will stand by the company at this crucial hour, I am marking copies of this statement to them as well.
Under the circumstances, I am tendering my resignation as the chairman of Satyam and shall continue in this position only till such time the current board is expanded. My continuance is just to ensure enhancement of the board over the next several days or as early as possible.
l am now prepared to subject myself to the laws of the land and face consequences thereof.
(B. Ramalinga Raju)
Copies marked to:
1. Chairman SEBI
2. Stock Exchanges

(References using Indian numerical system of crores and lakhs have been converted to international system)

Satyam, World Bank and media hype!

2008-12-29T17:18:00.000+05:30

Satyam Computer Services Ltd. (Satyam) has recently been too much in the news for all the right and wrong reasons. Nonetheless, each new piece of information has raised more questions, leaving a lot many questions unanswered. Sitting in remote corners away from the corporate corridors, individual investors are the most confused creatures with all sorts of news items coming in quick succession. This article seeks to analyse the spate of news items from individual investor's perspective about the wrong-doings of Satyam and the severe punishment meted out to the Company by its institutional investors.
The story of Satyam started in June 1987 when it was incorporated as a private limited company at Secunderabad in Andhra Pradesh. Satyam became a public limited company in 1991. Thereafter, the company never looked back and it did have an upward graph continuously on all business parameters. Rather, the company did have a meteoric rise under the leadership of Ramalinga Raju, the founder and chairman of the company supported by Rama Raju, the co-founder and the CEO. Performance-wise Satyam claims to be “... one of the youngest IT service companies to reach US $1 billion in annual revenues”. Its revenue exceeded US$1 billion in 2006. Today Satyam is a global business and information technology services company. In its Annual Report for the year ended 31 March 2008, Satyam claims to be a global organization on the basis of the following facts:
Associates >51,000 (over 60 nationalities)
Revenues in USD >2,000,000,000 (2008 Fiscal)
Customers: 654 (Including one-third of the Fortune Global & US 500 companies)
Geographies: 63 (Number of countries)
Global Solution Centers: 31
Listings: NYSE, US and Euronext, Amsterdam, Europe in addition to BSE and NSE in India.

Like a bolt from the blue, the things at Satyam suddenly took an ugly turn on 16 December 2008 when the company announced a US$1.6 bn deal to acquire Maytas Properties and Maytas Infrastructure, companies run by Ramalinga Raju's sons B Rama Raju and Teja Raju. The business of Maytas Properties is urban infrastructure development and Maytas Infra is into infrastructure construction and asset development. The official line of argument was that the proposed take-over deal would work as a diversification to mitigate the business risk of Satyam's core business of IT services.

According to the announcement made on 16 December 2008, Satyam would have acquired 100 per cent shares of the unlisted Maytas Properties for US$1.3 bn and 51 per cent of construction firm Maytas Infra for US$300 mn. Satyam’s founder and Chairman B. Ramalinga Raju and other insiders hold 36 per cent stake in Maytas Infra and 35 per cent in Maytas Properties. As regards the funding of the proposed deal, Satyam planned to fund 75 per cent of the acquisition with cash available on its balance sheet and the rest by raising debt. Satyam planned to acquire 31 per cent in Maytas Infra from its promoters (who are also promoters of Satyam) at a price of Rs 475 a share. Satyam also planned to make an open offer for an additional 20 per cent at a price of Rs 525 a share.

Had it been a boom time in the market, the investors would not have paid any heed to this intra-group deal because such transactions are commonplace in the corporate world. But this time two factors worked against Satyam. Firstly, these are highly depressed times for capital markets and secondly, the foreign institutional investors (FIIs) have a substantial exposure to Satyam. The very fact that the FIIs have a substantial exposure to Satyam, the motives of the company were under their close scrutiny. Obviously, the Board's decision to acquire closely-related family companies angered investors. They started offloading their holdings and drove down Satyam’s American Depository Receipt (ADR) value by a record 55% on 16 December 2008, i.e., the day of announcement of the company’s plan to buy Maytas Infra and Maytas Properties. The foreign shareholders construed the deal in utter disregard of corporate governance. The FIIs found it shocking that Satyam management did not deem it appropriate to take the proposal to the so-called minority shareholders whose stake in the Company is many times more than that of the promoters.

In this context, it is revealing to have a look at the shareholding pattern at Satyam. According to a Forbes report, “large investors including Aberdeen Asset Management, Fidelity and ICICI Prudential hold roughly 60.0% of Satyam, dwarfing the 8.3% stake held by the family of the company's founder and chairman, Ramalinga Raju, and leaving the company vulnerable to a hostile takeover."
The shareholding pattern on 31 March 2008, as reported on the Company’s website, was as under:
Shareholding Pattern of Satyam Computer Services Ltd.
Promoters 8.74%
Domestic Institutions 13.00% (MFs. 4.88%, Fin. Inst./Banks 0.09%, Ins. Cos. 8.03%) Foreign Institutional Investors 48.22%
Bodies Corporate 0.59%
Individuals 8.75%
NRIs, Foreign Nationals & Trusts 1.24%
Shares held by Custodians and
against which Depository Receipts
have been issued. 19.46%
TOTAL 100.00%
The latest news reports indicate that now even this 8.74 per cent holding of promoters in Satyam is questionable. It is reported that the promoters had pledged their shares to raise loans and those shares have been sold by the lenders as a part of Margin Call procedure.

When the announcement about Mytas-acquisition was made Indian markets were already closed on 16 December 2008. The next day Indian bourses also reciprocated to the price erosion on the NYSE. Satyam shares closed down by 30.22% at Rs 158.05 on 17 December 2008 touching an intraday low of Rs 153.80. It was the lowest level touched by Satyam shares in the last five years. The stock had a 52-week high of Rs 544 on 30 May 2008.

In a knee-jerk reaction, the company immediately announced withdrawal of its proposal to acquire two Maytas companies. Srinivas Vadlamani, Chief Financial Officer, Satyam Computer Services Ltd. said in a brief statement, “Based on input from our shareholders and investors, we decided to call off the Satyam-Maytas acquisition. Satyam has called this (29 December 2008) board meeting to consider the proposal for buy-back of shares.”

Soon after the Maytas fiasco, there followed a series of comments and articles by the financial news reporters, analysts, securities firms and brokerage houses condemning Satyam as the fit case of bad corporate governance. It is ironical that Satyam was awarded the Golden Peacock Global Award for Excellence for Corporate Governance in September 2008. Also, to quote from Satyam’s website, “Your Company retained its eminent position in the 2008 Investor Relations Global Rankings for the Asia, Pacific and Africa Region and won the following recognitions:
• IR Website: Top 5 in region
• Corporate Governance Practices: Top 2 in region
• Financial Disclosure Procedures: Top 5 in region; First in Technology; and First in India.”

What is more intriguing is that Satyam management did not come out with any further explanation about its two actions with regard to Maytas acquisition. The top level management at Satyam comprises the following members of the Board:

Executive Directors:
1- Ramalinga Raju, founder and chairman
2- Rama Raju, co-founder and CEO
3- Ram Mynampati, member of the board and president
Non-Executive Directors:
4- Prof. Krishna G. Palepu (since resigned effective from 28 December 2008)
5- Vinod K. Dham - Independent Director (since resigned effective from 28 December 2008)
6- Prof. M. Rammohan Rao - Independent Director (since resigned)
7- T. R. Prasad - Independent Director
8- Prof. V. S. Raju - Independent Director
9- Dr. (Mrs.) Mangalam Srinivasan – Independent Director (since resigned on 26 December 2008)

Talking of corporate governance at Satyam, Prof. Krishna G. Palepu (non-executive director) offers courses on Corporate Governance at Harvard Business School. The independent director, Prof. M. Rammohan Rao, is the Dean at the eminent Indian Business School, Hyderabad. He is also a member of government's appointment committees for positions such as the RBI deputy governor, Sebi chairman and Telecom Regulatory Authority of India (Trai) chairman. Another independent director Dr. (Mrs.) Mangalam Srinivasan has held senior academic positions at the University of California at Berkeley, American University in Washington DC, and Harvard University. Similarly, Prof. V. S. Raju, independent director on Satyam’s board, is the ex-director of IIT. T R Prasad is the ex-cabinet secretary and Vinod K Dham is considered as the father of Intel's Pentium chip. With such a galaxy of non-executive/independent directors, it is really ironical that matters of corporate governance have come to such a sorry pass at Satyam!

Sensing the Maytas episode to be merely a tip of the iceberg, reporters and analysts started further digging up. It was revealed from the transaction details that the top management executives of the Company sold as many as 4,57,978 shares during the period April-December 2008. It is now any body's guess that no purchases of Satyam shares were made by the top executives during this period. The details of share sales by Satyam executives are as under:

1- Srinivas Vadlamnani- Chief Financial Officer 92,358 shares
2- Ram Mayanampati -President/member of board 80,000 shares
3- V Murali Head – Commercial & Contract Management 60,000 shares
4- Manish Mehta- Global Head - SAP 48,000 shares
5- M Pavan Kumar- Chief Technology Officer 40,000 shares
6- A S Murthy- Head – Delivery & Leadership Development 36,605 shares
7- Papani Sriram Prasad - Head – Enterprise Applications 30,500 shares
8- Hari T - Chief Marketing Officer 28,000 shares
9- G Jayaram - Company Secretary 26,015 shares
10- Kiran Cavale - Head – Business Intelligence 16,500 shares
TOTAL SHARES SOLD 4,57,978

In a news report on 23 December 2008, Mr. T R Prasad, one of the Independent Directors, was quoted “saying the board hadn’t fully signed off on the $1.6 billion, or Rs7,568-crore, valuation placed on the two companies by Satyam management.” Similarly Prof. V S Raju, another Independent Director, is also quoted saying, “There were several suggestions from the board members regarding valuation and those were to be taken up during the due diligence process, which was yet to be done,” said V.S. Raju, a former director of Indian Institute of Technology, Delhi. “Now that the deal has been called off, all such discussions are academic in nature.” However, the Company spokesperson simply commented there is no official information regarding these matters.

Meanwhile, the severest blow came to Satyam from the World Bank on 23 December 2008. In a statement the World Bank informed that it banned Satyam for eight years, alleging “improper'' benefits were given to the World Bank's employees and for failing to maintain documentation to support fees charged for its subcontractors. Consequently, next day Satyam shares were once again hammered down on the bourses. Again, Satyam management declined to comment on this news item saying it is not Satyam’s policy to comment on client- related matters.

The news about the World Bank’s ban on Satyam was reported extensively throughout the world. But the version of facts was different because every reporter has his/her own perspective of looking at the matter. For example, Financial Times from UK reported on 24 December 2008 that “the World Bank has barred India's Satyam Computer Services from doing business with it for eight years, in one of the severest penalties by a client against a large Indian outsourcing company.” However, additional inputs came from Taiwan (http://www.etaiwannews.com/) which reported on 24 December 2008, “The bank (World Bank) said it suspended relations with Satyam in February and made the decision permanent in September.”

This additional input aroused my curiosity because if the ban on Satyam related to September 2008 and February 2008, why it is being highlighted so prominently now in December 2008? I started rummaging more news reports about Satyam and the real break came through the report of IDG News Service. Unlike the FT in the UK, the Boston headquartered IDG News Service reported all the pertinent facts with regard to the World Bank statement about Satyam through its Bangalore Bureau in India on 23 December 2008. The additional input provided by the IDG News Service report was that – “And Upaid Systems Ltd., a mobile payments company, is suing Satyam on charges of fraud, forgery and breach of contract.”

What is interesting about the IDG News Report is that it invites comments from the readers and interestingly enough one reader, though anonymously, provided a clue that - “Who fact checked this because it is false . Go to http://web.worldbank.org/external/default/main?pagePK=64148989&piPK=64148984&theSitePK=84266&theSitePK=84266&contentMDK=64069844&querycontentMDK=64069700&sup_name=SATYAM&supp_country ……and see for yourself. There are many companies that have been debarred from the World Bank. Satyam is NOT one of them!” - By Anonymous on December 23, 2008, 5:12 pm.

On following this link, it is found that Satyam’s name is nowhere mentioned in the list of Debarred Firms on the World Bank’s website. All the attempts to search information about the ban on Satyam Computer Services Ltd. were met with the automated response on the screen saying 'no matching results found'. The latest addition in the World Bank’s current list of ineligible firms on its website is a Korean firm with ineligibility period from 31 July 2008 to 31 July 2012. May be the list is not updated or Satyam’s case does not fit in this category of debarred firms!

As regards Satyam’s soured business relationship with the British firm Upaid Mobiles, Upaid released a statement in London on 25 December 2008: “That Satyam would proceed with a transaction that seems so clearly designed to deplete its assets in advance of a judgement, rightfully concerns Upaid that Satyam may be willing to engage in fraudulent transfers to avoid its legal obligations.” It is pertinent to mention here that Upaid filed a lawsuit in the Texas court against Satyam in April 2007 seeking damages of at least $1 billion on the allegations of fraud, forgery, misrepresentation and breach of contract involving transfer of intellectual property rights issues. All these allegations are in the context of a project the firms jointly worked on in late 1990s when Satyam was an outsourcing vendor for Upaid.

It was on 26 December 2008 that Satyam came out publicly seeking an apology from the World Bank. It claimed that the statements by World Bank representatives to the media are inappropriate and therefore the World Bank should withdraw the statements, issue an apology for the harm done to the company due to World Bank's actions, and provide Satyam with a full explanation of the circumstances that necessitated the public statements. Satyam further advised the World Bank that it would evaluate all possible options in view of both the Bank's inappropriate public statements and its response to Satyam's requests. This delay in demanding the apology is understandable because the Company might have taken legal opinion about its line of action apart from weighing the pros and cons of client sensitivity. However, the World Bank declined to accept Satyam’s demand for apology as the Bank stood by its statement about the ban.

Another significant development on 26 December 2008 was the resignation of Dr. (Mrs.) Mangalam Srinivasan, one of the Independent Directors on Satyam's Board. Of course, in between there were reports quoting the independent directors that they were not informed about the real reasons of the World Bank’s sanctions against the Company. Subsequently, another two directors, viz. Prof. Krishna G. Palepu (non-executive director) and Vinod K. Dham (independent director) also resigned effective from 28 December 2008. And, now there is a news report that Prof. M Rammohan Rao has also resigned from the posion of Independent Director on Satyam's board.

All these media reports have raised a number of questions in the minds of individual investors:
1. If Satyam was debarred way back in February/September 2008, what prompted the World Bank to prominently highlight this fact so late in December 2008?
2. If Satyam was debarred way back in February/September 2008, why all the analysts at the brokerage firms and financial reporters were silent till 23 December 2008 about the far reaching consequences on the fortunes of Satyam because of the World Bank's action against Satyam?
3. Whether the timing of this announcement by the World Bank in December 2008 was engineered to put Satyam in discomfiture, particularly in the wake of Maytas fiasco?
4. Whether the World Bank was prompted to issue such a damaging statement in December 2008 at the behest of vested interests?
5. Why Satyam was silent till 26 December 2008 about such a disparaging statement of the World Bank against it? Was it merely due to consideration of straining relations with an important client like the World Bank?
6. Why the independent directors chose to remain silent about the Maytas fiasco and the World Bank episode till these matters were ferociously pursued by the media in the second half of December 2008?
7. Why all of a sudden the management decided to call a Board meeting on 29 December 2008 for considering buy back of shares?
8. If the promoter stake was reduced to only 8.74%, why the FIIs with higher holdings did not ask for seats on Satyam’s Board?
9. It is reported that the Board meeting scheduled on 29 December 2008 has been postponed to 10 January. In a crisis-ridden situation like this, is it not appropriate to hold a Board meeting immediately and discuss strategies to control the damage to the Company’s reputation?
10. What is the role of independent directors - whether the independent directors can really be independent and vigilant?

Evidently, there are a lot many unanswered questions than what has been fed by the analysts/media to the individual investor community.
As per latest reports, the institutional investors are in search of a suitor who can take over Satyam. If materialized, it would be a sort of record in the Indian corporate history - a company, founded and fostered by a family is forced to parts its ways with the founder promoters at the instance of outsider shareholders! Looking to the meager and questionable stake of founder promoters (8.74%), there should be no surprise if there is a change in the management of Satyam!

Global Financial Crisis & Indian Financial System

2008-12-21T12:39:00.001+05:30

My friend Prakash wrote to me on 25th 0ctober 08 from the USA that conditions in the US are very very bad. No assurance of market, job and wages. Its greater than depression. Govt does not know how to handle the situation. For the last 20 years, US borrowed and spent money as if there was no tomorrow. Now they are bankrupt. Its a life time depression for our generation. Indian economy will suffer much more. The Banking sector in US has lost confidence. Even the Banks among themselves don't believe each other. Indian economy will sufer much more. Our (Indian) size of economy is very small and survival will be difficult. Prakash ended his commentary about the US economy with his philosophical touch, "...any way days will pass on."

The disastrous happenings in the USA have impacted the world economy with a cascading effect. Though I have been reading about the bad shape of the US economy, nothing has been in such plain and simple but razor sharp words coming from an onlooker at the site of the financial Tsunami. It was shocking and also somewhat amusing to read about this sorry state of the Big Brother. However, I did not agree with his views about the Indian economy and immediately responded, "As regards the financial turmoil, you are right - it is an unprecedented recession born out of all sorts of excesses through out the world. But it is not going to be long drawn like the Great Depression of 1930's particularly because now there is a high level of communication and co-operation among the governments to deal with the situation. Though there is no material change in the fundamentals, the confidence is shaken due to exposure of the big names in the global financial markets. So the first priority is to restore the public confidence in the financial institutions. This can be done by the governments with a pragmatic approach. In India the situation is not that bad because the financial system is so far insulated. Of course, the problem of liquidity will be there in the system due to flight of FII funds from the markets. But then, it can be sorted out with the government support and right approach."

This analysis of the situation was based on my close acquaintance during the four-year assignment in investment banking at London during the start of boom years. Having been brought up in my banking career at an ultra-conservative public sector Indian bank, it was a revealing experience for me to watch the exotic and daredevil working of the global banking giants. There were frequent occasions at the official Cocktail Receptions as also casual evening meetings in the bars/restaurants to discuss about the day's working and, more importantly, businesswise what's new happening in different banks and financial institutions. During these informal chats, instinctively I would try to convince my counterparts about the virtues of conservative appproach in a risky profession like banking and finance. But often my advocacy of conservatism would meet with a rebuff about the Hindu rate of gowth.

Now when the financial Tsunami has struck both sides of Atlantic, my belief in the efficacy of financial conservatism is fully justified when recently I read a report on IBN Live News dated 08 December 2008 titled 'Morgan Stanley slams RBI for easing norms' as reported by Dinesh Narayanan/Forbes-Network18. The report highlighted that the RBI's prudential norms are far stricter than what many developed countries apply to their banks. Its caution was vindicated recently when Indian banks remained reasonably insulated from toxic assets that brought down hallowed financial institutions in advanced markets.

This report was in the context of the Reserve Bank of India's announcement on the 6th December 2008 allowing banks to restructure real estate loans on softer terms and relaxed norms for recognition of bad loans owed by other borrowers. It is interesting to note that the analysts at Morgan Stanley were not happy in their report about relaxations in the prudential norms by the Reserve Bank of India.

However, the big confirmation about the conservatism of Indian financial system comes from the New York Times reporter Joe Nocera. Recently Joe came to Mumbai hoping to learn about the current state of Indian business in the wake of both the credit crisis and the terrorist attacks of 26 November 2008. To his surprise, he found that the banking regulator in India was just opposite of Alan Greenspan. He candidly admits, "India had a bank regulator who was the anti-Greenspan. His name was Dr. V.Y. Reddy, and he was the governor of the Reserve Bank of India. Seventy percent of the banking system in India is nationalized, so a strong regulator is critical, since any banking scandal amounts to a national political scandal as well. And in the irascible Mr. Reddy, who took office in 2003 and stepped down this past September, it had exactly the right man in the right job at the right time.
“He basically believed that if bankers were given the opportunity to sin, they would sin,” said one banker who asked not to be named because, well, there’s not much percentage in getting on the wrong side of the Reserve Bank of India. For all the bankers’ talk about their higher lending standards, the truth is that Mr. Reddy made them even more stringent during the bubble.
Unlike Alan Greenspan who didn’t believe it was his job to even point out bubbles, much less try to deflate them, Mr. Reddy saw his job as making sure Indian banks did not get too caught up in the bubble mentality. About two years ago, he started sensing that real estate, in particular, had entered bubble territory. One of the first moves he made was to ban the use of bank loans for the purchase of raw land, which was skyrocketing. Only when the developer was about to commence building could the bank get involved — and then only to make construction loans. (Guess who wound up financing the land purchases? United States private equity and hedge funds, of course!)"
"Then, as securitizations and derivatives gained increasing prominence in the world’s financial system, the Reserve Bank of India sharply curtailed their use in the country. When Mr. Reddy saw American banks setting up off-balance-sheet vehicles to hide debt, he essentially banned them in India. As a result, banks in India wound up holding onto the loans they made to customers. On the one hand, this meant they made fewer loans than their American counterparts because they couldn’t sell off the loans to Wall Street in securitizations. On the other hand, it meant they still had the incentive — as American banks did not — to see those loans paid back."
"Seeing inflation on the horizon, Mr. Reddy pushed interest rates up to more than 20 percent, which of course dampened the housing frenzy. He increased risk weightings on commercial buildings and shopping mall construction, doubling the amount of capital banks were required to hold in reserve in case things went awry. He made banks put aside extra capital for every loan they made. In effect, Mr. Reddy was creating liquidity even before there was a global liquidity crisis."

In the boom periods conservatism is considered as an anachronism. The virtues of conservative approach look good only in the agenda for discussions at conferences and seminars. Aggressive marketing becomes the norm in the financial markets. The well-known credit weaknesses are interpreted as normal market practices when the goal is ever increasing slice of market share for the bank/financial institution. When the going is good we often hear experts telling us that regulations restrict entrepreneurial spirit and make the managements risk averse. The historical perspective of the twentieth century clearly indicates that the clasical route of business cycles passes through conservatism - good times - exuberance - complacency - laxity - weakening of checks and balances - bubbles - financial Tsunami - chaos. Then in the falling markets and sluggish economy, we realise the virtues of conservatism. Finally we return to conservatism and embark on a new cycle. These milestones on the route of business cycles are best illustrated by the Glass-Stegall Act which was passed in 1933 and repealed in the new millennium. Having repealed it, we are now again taking regulatory steps to have something like Glass-Stegall Act in place to separate ownership of investment, insurance and banking functions!

Brick by brick we build protective walls around us out of necessity. Protective walls bring prosperity, which in turn leads to complacency and gradually we tend to get rid of protective walls for entering into risky ventures. So long as the going is good, we want the governments to keep their hands off our risk appetite. When we are hit badly in our risky ventures, we instinctively seek regulatory support and protection from crisis! The synthetic generation of our financial products is now at a turning point, where conservatism and prudence will again be highlighted and dynamism (aggressiveness) will take a back seat in the financial decisions. QED!