2009-01-14 06:13:20 - Stocket market ballooning in the last three years with foreign funds entry and exit without any guide-lines and their liberal injection and withdrawal made Indian stock market a volatile bourse which became too sensitive to its operation:
India Inc flummoxed in melancholy mood after melodram of Satyam and rising the India fiscal crunch has put companies in incinerate and is inadvertently unable to give strength to its growth:
RBI with repro rate has made India Inc availablecredit from banks more than Rs 3,20 000 Cr:
Further Rs 52000 Cr are more to be added to the pond of nationalised bankers kitty for lending as banks to raise credit growth to 24 % an extra of four percent and government is keen to revive growth:
Banking is among the most robust sector in India inc which can create fiscal jugglery and may report better turnover but less profit margin this year:
India Inc looking for working capitals are DLF to raise Rs 1700 Cr from their bankers,Unitech look for Rs 800 Cr,Tata Communication interested in selling its stake in Tata Teleservices of Rs 430 Cr to meets its working capital,to NTT-DOCOMO:
Many medium scale reality companies look on to their big players for their sale of projects to cut loss in credit crunch statewhich has dampened demand and plague cash flow of Indian Inc:
Tata Motors to raise 2704 Cr from Public issue to consolidate its position when the automobile industry is in deep trouble due to weak demand of sales which is likely to skid to 18% and metals shall also take beating in process:
Satyam computer services,formerly a India's gem in IT services company with 185 clients and hundred are from best 500 companies of the globe started its fiasco with inflated profits and fictious turnover to make easy money by boosting its capitalisation in stock market is clear case of misrepresentation of the company's intrinsic value:The book value of the company is under 50 which means it has reserve five folds than its sharholding:
Promotors who had their shareholding of 25% in the year 2001came down to less than 9% in year 2008 reflects that the promots sold their holding in market:
Satyam company asked DSP Merrill Lynch to search for buyers and in turn Tech Mahindra and HCL asked for cash flow,cash reserve details and in lieu of unanswered queries the fudgeting of accounts came to open:
Similarly when the world bank on 12 Jan Monday, officials said that action against five entities in India, including Wipro Technologies, and an individual has been taken. India Inc more fiscal irregularity came to surface at the time when Satyam fiasco did not dilute to its level:
These companies were found offering out of way benefits to Bank staff, and many entities and individual were also found to have violated norms of funding of the Procurement Guidelines or the Consultant Guidelines. Hence the action against them was taken by the World Bank authorities.
In World Bank red list , are Megasoft, which became the third Indian software vendor to have attracted the Bank's ire, and two other entities Nestor Pharmaceuticals and Gap International are non-IT entities.
An indiviual,Surendra Singh was also barred from doing business with the Bank for violating guidelines.World bank has earlier barred Wipro for four years beginning June 2007 for providing improper benefits to Bank staff. Now ,Megasoft has also been barred for a similar period beginning December 2007 for participating in a JV with Bank staff while also conducting business with the Bank."The bank has decided to make public the names of all the companies that have been debarred from receiving direct contracts from the Bank group under its corporate procurement programme," said World Bank in a statement late last night."Our inability to get future business from World Bank will not adversely affect our business and results of operations," said Wipro, while commenting on the World Bank action.
Megasoft officialssaid , "The debarment will not have any revenue implication for the company."