Thursday, January 29, 2009

Sve Shekar Dramas Free Download

Thursday, January 29, 2009
S.Ve Shekar is Actor Turned Politician who has staged about 4000 dramas.I have almost managed to listen to all of his dramas.The spontaneity of Sve Shekar is impeccable and i hereby give u the link for free download of my favourite dramas of Sve Shekar.


Wednesday, January 28, 2009

Satyam Scandal!!!!!

Wednesday, January 28, 2009
Satyam has been topping the media charts for the last few weeks and have been rattled by a series of shocks. The whole mayhem started with the announcement & subsequent cancellation of Maytas(Reverse of the name 'Satyam') acquisition, it was followed by World Bank contract termination & allegation of bribery by Satyam and then came the resignation of 4 independent directors from its board. Then the Satyam CEO Ramalinga Raju made a press release that Satyam's books were fudged; that they have been reporting inflated revenue/margins for the last few years and the stated cash reserves of $1.2B are non-existent. The overall revenue impact of this fraud was a whopping Rs.8000 Crores. This is the biggest corporate scandal in Indian history. This whole episode has not only impacted Satyam but this has created lot of negative publicity for Indian IT and Industry as a whole and impacted its corporate reputation.

Here's a summary of the misreported amounts claimed by Raju in his letter to the Satyam Board:

1. The Balance Sheet carries as of September 30, 2008
  • Inflated (non-existent) cash and bank balances of Rs.5,040 crore (as against Rs. 5361 crore reflected in the books)
  • An accrued interest of Rs. 376 crore which is non-existent
  • An understated liability of Rs. 1,230 crore on account of funds arranged by me
  • An over stated debtors position of Rs. 490 crore (as against Rs. 2651 [cr.] reflected in the books)

2. For the September quarter (02) we reported a revenue of Rs.2,700 crore and an operating margin of Rs. 649 crore (24% Of revenues) as against the actual revenues of Rs. 2,112 crore and an actual operating margin of Rs. 61 Crore ( 3% of revenues). This has resulted in artificial, cash and bank balances going up by Rs. 588 crore in Q2 alone.

What annoys me about this whole incident is how can a company with $2B revenue get away with $1B+ mis-reporting/fraud. Here are some questions that pop-out of my mind from this greatest scandal ever made:

  • Satyam is a publicly listed company in both India and US and are bound by Indian/US (GAAP) accounting standards.As I am in the field of auditing, I am not in a position to comment on the Indian accounting standards, however US GAAP standards and SoX regulations are very stringent. They need to go through several mandatory 3rd party audits as well. Given this how can Satyam fudge their books?
  • This whole mis-reporting has been going on for a few years now. How can the external auditing company(PWC) make a mistake and not find this out all these years. If it has been consistently missing all these quarters then its an 'incident' not an 'accident'.
  • I guess most of these inflated amounts have been reported in terms of inflated revenues for each of the quarters. Auditors are required to validate the customer invoice amounts, receivables, outstanding amounts, bank statements etc and tally them with each other? How can a gap of tens of millions dollars each quarter not be noticed by the auditors?
  • If a company claims to have $1.2B of cash reserves they need to report and provide proofs of how the amount is invested/maintained to Auditors and also provide it as part of their regulatory filings. How can a company conceal a whopping $1B cash surplus without showing proofs of existence?
  • The additional revenue reported will attract Income tax. It will be interesting to see if Satyam paid tax on inflated amounts. Wouldn’t IT department/RBI scrutinize their bank accounts, Forex transactions, annual/quarterly reports to validate the tax collections?
  • He has not only inflated the number of employees from 40,000 to 53,000 but he has also inflated the salaries to mint a whooping amount of Rs.20 crores yearly.I still wonder how he had opened such a number of bank accounts in fictitious names.

Based on the above thoughts, I feel that the auditing firm has received some kick-backs and is involved in the whole fudging exercise. There is no way this could have been pulled off without involvement of Auditor. I wouldn’t also be surprised if Satyam provided falsified proof for some of these claimed investments (Auditor could infact have guided Satyam on the same so that they are on the safer end).

The obvious fact is that numbers were inflated to drive up the stock price. The whole story of pledging stocks to financial institutions and using that money to run the company (as stated in his letter) sounds very fishy to me. I doubt if that mortgaged money has been used in Satyam's operations,I’m sure that at least a sizeable portion of that is stacked away safely most likely outside India. Here again the question that comes to my mind is when an individual is pledging stocks and borrowing a money of Rs.1,200 crores($250M+) how did it not come under IT purview? There is a possibility that IT dept/political big-wigs could have a hand in this.

I pray for the well being of the 40,000 Satyam Employees whose future has become uncertain because of a single person.L&T (Larsen&Toubro) and few other corporates are in a plan to take over Satyam.May that soon happen and bring happiness in the face of those employees!!!!


12 Favourite Songs of the Indian Mozart A.R.Rahman

Listen to these songs,he is right.These are the some of the best compositions made by great musicians.


BGM of the film 'Thiruda Thiruda'

I give u the link for free download of BGM of the film 'Thiruda Thiruda'.
Direction:Mani Rathnam