Archive for January, 2009

Can Terror ever be removed from the face of earth?

Monday, January 12th, 2009

Terrorism public policy police terrorist societal analysis terrorizing dangerous boyfriend girlfriend husband wife in-laws lawyers tenant landlord lender bank lendor lendee parent child teacher perpetrators India world USA us Pakistan state removed eradicatedCan Terror ever be removed from the face of earth? Really speaking, it is totally impossible to remove terror from the face of earth. Terror has been there from the origin of the earth. It is about transfer of property away from the deserved. It later on went on to become state policy, when terror was used to extend empires. Now, expecting mankind to unlearn the fruits of terror is neigh impossible. However, there maybe a possibility to keep the common man sufficiently away from the precincts of terror.

 

Who is a terrorist?

 

Well there are 2 kinds of terrorists:

(a)                Brand A (alienated): Ones who are motivated by reason other than direct gains (indirect gains to their family members and perpetrators are there). Here the victims usually do not have any option since the terrorist has no prior or future (proposed) dealing with the victim.

(b)               Brand B (societal): Ones who stand to gain directly from terrorism, with the victim going to lose some value. This being a resolvable position, usually the victim succumbs to the threat and chooses the lower (in his eyes) of the 2 or more proposed losses (scenarios).

 

Which is more dangerous?

 

Well the Brand A terrorism is pronounced to be more dangerous by most of the people, mostly, since there is not much room for negotiations with them. However, actually the second one is usually the root cause of most terrorism, since when consistently Brand B terrorism brings fruit to people, they move towards the Brand A Terrorism.

 

What is actually Brand B Terrorism?

 

It starts from anything like your landlord terrorizing you or your tenant terrorizing you. It could be a lendor or the lendee. It could be your boyfriend terrorizing you or your girlfriend. It could be your husband, wife, in-laws or every parent or child. And when the public recourse is full of leeches a lot of people succumb to this brand of terror. Here, are laid the roots of a terrorist. Anyone who learns that the world can give you something that you don’t deserve by terrorizing it, has become a terrorist. And sadly, the people expected to protect you have for their own reason become part of the whole deal and join in to take their piece of cake from the situation. And these are none other that the Police, the Lawyers, and others who are excepted to make life easy for you in these circumstances.

 

Can terrorism be removed?

 

Well, since any action against the Brand A community (possible terrorists) usually would justify the crucification analogy drilled into the heads of terrorist, since it would touch a lot of innocent people, you can’t possibly cure terrorism by force. And use of force would mean other people getting subject to force would harbor grievances against the force and may end up siding with the terrorists. Unbridled love can only stop terrorism. However, in this world with its shortages providing unbridled love to people, who are idling their time and have no positive value or contribution is tough. However, the means is to provide love to people who bring some value to the world, however, small it may be. And on top of it, protect them from those who are not ready to add value but who want to steal value. This is a tough call.

 

So what’s the deal?

 

It means, that to root out terrorism, we only need to fortify, purify and speedify our justice delivery system and to allow no tampering with it. Well that is so easy and yet sounds so out of reach at the same time….

 

 

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    Will Satyam book building effect Indian software industry?

    Monday, January 12th, 2009

    B Ramalingam Ramalinga Raju Satyam Computer services Chairman CEO analysisYes and No!

    Recap: B. Ramalingam (Ramalinga) Raju and Rama Raju the entrepreneurs behind India’s No. 4 company Hyderabad based Satyam Computer Services, a Global IT giant (No. 1, 2 and 3 are Infosys, TCS, and Wipro) have announced that they have been fudging their books. B. Ramaligam Raju was the Chairman of Satyam Computer Services, and Rama Raju (his brother) was the Managing Director. So, I present a simple analysis on how it would affect various relationships like company-shareholders, share markets, balance sheet figures/ analysis, public-private companies, foreign investors, mergers, employees, clients, lenders and finally Satyam itself. So off we go…

    Will it affect the share market?

    Satyam was listed in BSE, NSE, and NASDAQ, so surely, the score of armchair entrepreneurs who rely on the books to place their bets would surely be affected. Since books are their only means to analyze a company. However, it is the share market, which affects such companies and not the vice versa. So, accept for the share price of Satyam this should not affect the share market. Thumbs Up.

    Does this mean that we can’t rely on the balance sheet figures any more?

    Well, book building is not as new a phenomenon as newspapers would have us believe. It has always been the public company’s bane that it never reflects it’s true worth on paper. No public company will show an accurate account of what it’s worth. It is like a movie heroine who would always present a larger than life figure. Since, we do not complain about a movie heroine till she’s caught in her own web, similarly we would only criticize the company which over hinges or over leverages its worth. Usually, these company’s skeletons tumble out after persistent market downturns. So in no way are such company’s responsible for the downturns. So go on and rely on the balance sheets, but watch out for companies that regularly and consistently over perform, without having any special USP/ innovative products to justify the same.  Thumbs Up.

    Do all companies cook their balance sheet to upscale their achievements?

    Sad, but true for all public companies. Same as the reverse is true for all private companies (unless they plan to go public sometime in future). Thumbs Down.

    Would this affect Indian software industry?

    Employee POV:

    Well employee morale surely goes down and this would reflect in their work. The competitors’ employees’ salaries also would get squeezed because of (a) excess manpower availability and (b) perception that the company’s margins are lower that what is shown. Finally, the IT profession, currently highly valued by public would go lower are some other careers come back in reckoning (is the marriage market listening?). Thumbs Down.

    Investor POV:

    Well from the investor POV (point-of-view) surely it would mean a temporary slowdown on Buying and Mergers. However, anyway, investors scrutinize such companies very thoroughly and would usually spot the fudging. Neutral.

    Client POV:

    From Client/ customer’s POV, it should not affect since the company did not shortchange it’s customers. However, some large project customers may be cautious about the continuity of the company. However, since a company is an Entity on it’s own. Hence it should survive this. Thumbs Up.

    Lender POV:

    It indeed is a troublesome thought that the company seems to be totally bankrupt. Which would mean, that it could get cash strapped enough, to be unable to pay the salaries in the short term. But if it manages this phase it can pull back, since it is not a product or a core-industry company but a services company. And services companies don’t have any heavy incubation periods. Or in other words there is no product life cycle it can get caught in. However, because of the same reasons the margins are usually low, since their assets keep getting revalued at current prices (salaries keep getting revised to suck any extra profits). Some people may disagree with this – but the truth is that if the salaries of the staff are not revised the top-management revises theirs, so rarely would you find extra cash with such companies. Thumbs Down.

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