Happy 63rd Everyone!

17 08 2010

India turns 63 and while the nation celebrated it’s independence I thought Ill remind us all of the wonderful email forward I received a while back…most of you must’ve read this but its worth a second look. Here goes…

———————————————–

We live in a nation where…

We live in a nation,

Where Pizza reaches home faster than

Ambulance, police or fire brigade.

Where you get car loan @ 5%

and education loan @ 12% interest.

Where rice is Rs 40/- per kg

but sim card is free of cost.

Where the footwear, we wear, are sold in AC showrooms,

but vegetables, that we eat, are sold on the footpaths.

Where everybody wants to be famous but

nobody wants to follow the path to be famous.

Where we make lemon juices with artificial flavours

and dish wash liquids with real lemon.

Where people are standing at tea stalls reading an article about child labour from a newspaper and say, “yaar bachhonse kaam karvane wale ko to phansi par chadha dena chahiye” and then they shout ” Oye chhotu 2 chaii laao…..”.





Motorola cuts jobs – Again!

15 01 2009

Motorola Inc will slash another 4,000 jobs, or an estimated 6 percent of its workforce, and warned that it would have a fourth-quarter loss as sales of mobile phones were weaker than expected.

Analysts had been expecting a new round of job cuts at Motorola, after 6,700 employee departures in 2008, as the economic downturn and a slump in demand for mobile phones add more pressure on a company that had already been losing market share to rivals like Nokia .

Motorola said on Wednesday that the latest move brings its cost cuts to $1.5 billion for 2009 — $700 million in new savings on top of a previously announced plan for $800 million in expense cuts.

Read here for more details.





Nortel Files for Bankruptcy Protection!

15 01 2009

In another incident of the worsening global recession Nortel Networks Corp, North America’s biggest maker of telephone equipment, filed for bankruptcy protection in Wilmington, Delaware, amid the global credit crunch and declining sales.

Nortel, based in Toronto, had more than $1 billion in assets and debt, according to today’s Chapter 11 filing of its US subsidiary. The company said that several Canadian affiliates will also seek court protection.

Canadian investor Gavin Graham recalls the time when Nortel Networks Corp. was so big, with a market value of almost $250 billion, that fund managers had to own shares just to keep up with the benchmark index.

“You were pilloried if you didn’t own the stock,” said Graham, who helps oversee more than $30 billion as director of investments at Bank of Montreal Asset Management in Toronto. “Nowadays, I try not to embarrass people by asking who still owns Nortel.”

Nortel, North America’s biggest maker of telephone equipment, in business for 113 years, filed for bankruptcy protection today, capping one of the greatest corporate collapses in Canadian history. The stock fell 69 percent to 12 cents by 4:15 p.m. in trading today on the Toronto Stock Exchange, for a market value of C$60 million ($48 million).

At its peak in 2000, Nortel had annual revenue of $28 billion and employed about 93,000 people in more than 150 countries. The stock traded as high as C$1,245, adjusting for stock splits, for a market value of C$366 billion, making it the biggest company in Canada. The shares quadrupled in 1999 on expectations the Toronto-based phone equipment maker would benefit from the surge in demand for Internet-based technology.

Nortel accounted for 37 percent of the Toronto Stock Exchange 300 Composite Index, as it was called then. That created a problem for Canadian mutual fund managers, since Canadian law bars mutual funds from holding more than 10 percent of assets in any one stock.

Source:  Bloomberg

See also a timeline of events in the company here.





Satyam Chief Ramalinga Raju Resigns

7 01 2009

Chairman of Satyam Computer Ramalinga Raju has resigned from the company’s board. In a shocking disclosure, he has revealed some financial irregularities in the company, including an inflated cash balance of Rs 5,040 crore.

In reaction to Raju’s revelations, the stock was hammered by investors and it is down over 60 per cent.

Raju said that he feared takeover due to poor finance performance. Coming clean on financial irregularities, he said that the company had Rs 1,230 crore worth of understated liability as of September 30.

Raju also revealed that he tried to fill fictitious assets with Maytas deal.

Source: NDTV

Here are some excerpts from his letter to SEBI:

“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)”

“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. “

“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.”

Read the complete letter here:  Reuters

Here is the complete timeline of events.

As of this moment Satyam Shares crashed 71% to Rs 51 on the BSE.

 

 





Happy New Year!

7 01 2009

Happy New Year everyone…its 2009 btw in case you are still hungover!

First off, apologies are in order. I haven’t updated my blog in what seems like ages and truthfully it’s not that I have been lazy.. its just that I have been taking a much needed break from my computer, my work, my routine… not that blogging is a routine but booting up a PC does seem like one!

But now I am back to the grind, the work, the traffic, the mess, the chaos… so rest assured all my frustrations will be manifested pretty regularly in this blog…apart from the other stuff of course.

Thanks to all my readers who have read my blog so far, I hope you keep coming back and bring more people with you…I ll do my best to keep this as random as possible.

So what have I been upto..as I said I was on vacation but while I was on this much needed hiatus…I have noticed that a lot of new events have taken place, but yet little has changed.

No new headway with Pakistan despite the world (except China & Brazil) being on our side, security is still bad despite the recent bombings in Assam, Chidambaram is our new Home Minister but yet you do feel the same vulnerability;  Traffic is bad everywhere despite new flyovers; pollution has gotten worse despite stricter regulatory norms in place, economy is still bad despite BPO’s hiring sprees; sport still struggles in India despite new impetus provided by our boxing and shooting stars…

the same things get repeated all over again…things move so slowly and it frustrates me…the common man!

I need visionaries, i need people to inspire me, I need someone to look up to in my country…I need hope!

While I may sound pessimistic about things.. I do however keep myself happy by enjoying the the little things …

Watching India beat England for example…or SA beating AUS.. A good book (Arvind Adiga’s – White tiger…which I promise Ill review in my future posts)…Formula 1, Driving on a well laid road (which is a rarity in most cities), a bag of potato chips, drinking beer, watching House MD or Big Bang Theory…

ahh the simple things…

So with this lack of contribution of mine to my country Id like to propose the following poll..

No matter what your answers are…have a great 360 odd days ahead!





Sony cuts 8000 jobs!

9 12 2008

In what seems like another Japanese company in trouble, citing falling revenues and stronger yen, Sony Corporation plans to cut 8000 jobs. This results in them reducing their investment by 30 % in the electronics business by the fiscal end of 2010.

Sony has about 160,00 employees as of now and aims to save upwards of 100 billion yen (roughly $ 1.1 billion) by such measures which also include shutting down manufacturing plants.

This news comes after the surprise pullout of Honda from F1 citing the same reasons which was unexpected given the reaction of the FIA.

Wipro in India is also cutting costs by recruting engineers for it’s BPO division instead of the engineering division. Although the company says it will ensure that these jobs will count as valid work experience for an engineering role in the future, the situation remain bleak for the company. In a related story on IBN the BPO companies are themselves looking for a bailout from the government. According to NASSCOM the Indian BPO sector employs roughly 700,000 people. Due to the current recession, cuts of about 250,000 jobs starting 2009 is expected. Thats a whopping 35% reduction in number of employees.

Some experts suggest this recession might last for 10 years!

All I can say is that stick on to your job, cause it just got more valuable.

Do let me know how the recession is affecting you..wherever you are.