Hidden Agenda of Sending Pranab to Rashtrapati Bhavan

Why  Pranab Mukharjee should become president of India? Sonia Gandhi has reasons:
 
The Corporate Pressure: Sonia Gandhi is always known to have good relationship with corporates since from Bofors deal. Few important decisions of Pranab Mukharjee made the eyes of corporate red. He introduced retroactive tax in the 2012-13 budget, with regard to capital gains tax payable to the government on transfer of Indian corporate assets through Vodafone-style M&A deals held abroad. This provision angered British Prime Minister Tony Blair, German Chancellor Angela Merkel and US Secretary of State Hillary Clinton had taken up the issue directly with Prime Minister Manmohan Singh. A report tells seven top US industry, trade and securities associations had sent written complaints against his 2012-13 budget to the US treasury secretary and secretary of state and wanted them to convey their concerns to the highest level of the UPA government. He was also keen in recovering the tax loss of Vodafone deal. So there was a corporate pressure to exit him from finance ministry to enjoy the loop holes of tax framework to enjoy the benefits of  tax heavens.


To make him exit from Finance Ministry: Sonia Gandhi was unhappy with Pranab Mukharjee for not convincing alleys in the recent decisions of finance ministry like the FDI in retail, foreign participation in pension fund management, foreign control in banking and insurance sectors and fuel price increase. A high inflation was seen during last couple of years leading to high interest rates which made industrial and development activities come down. This again resulted in a slow-down in FDI and FII inflows. So the prime minister and the UPA chairperson Sonia Gandhi were looking for the exit of Pranab Mukharjee from the finance ministry.

To decide the next prime minister: Yet another most important reason why Pranab Mukharjee should be the President. Definitely PM Mr Singh will make way for new face in prime minister's office in next general election. Pranab was a potential candidate after Singh. Congress does not have another unquestionable leader to replace Mr Singh as Pranab will be in Rashtrapati Bhavan. Rahul Gandhi's way to PMO will be clear now. Or it may be Sonia Gandhi, as Mr Kalam is not there to stop her from becoming PM.

What Happened to Subhiksha?

 Once a favorite model of retail success, now a study of financial failure

It was in 1996 that the idea of Subhiksha (prosperity in Sanskrit), organized retail services came to the mind of Subramanian, and IIT Madras and IIM Ahmedabad alumnus. He opened the first shop in Chennai in March 1997. By March 1999 there were 10 Subhiksha shops in Chennai. Its unique discounting model enraged the retail trade in Chennai

By 2000 Subhiksha grew to nearly 50 shops in Chennai retailing groceries and medicines. ICICI Venture's decision then to pick up a 10 per cent stake in Subhiksha for Rs 15 crore gave the retailer enhanced credibility in the market. This money was used to expand outside Chennai, into the rest of Tamil Nadu. By 2002-03, Subhiksha had 140 stores across 30 towns in Tamil Nadu. Sales grew steadily. Cash flows were reasonable and debt, at Rs 15 crore against the net worth of Rs 23 crore, was comfortable.

Tamil Nadu was not enough for the growth of Subhiksha. Subramanian wanted to expand it all over the nation. There was two choices- expand Subhiksha in one state by one and expand many states at a time. The subhiksha model proved to be successful. He choosed second option. Between late 2004 and early 2007, Rs 160 crore worth of equity was raised. That apart, a debt of Rs 220 crore and a bridge loan of Rs 125 crore (for pending raising of equity from capital markets) was arranged to fund the national rollout.

On an average, 60 to 70 stores were added in a month. The pace of rollout is evident from the fact that till September 2006, Subhiksha had a store count of just 160, but by March 2007 it had shot up to 670 and by March 2008 to 1,320. By September 2008, it was 1,650-in all 1,500 stores were added ih just 24 months. 2006-07 and 2007-08 Subhiksha doubled the stores, tripled revenues and almost quadrupled profits

At the time of tough retail competition with the entry of Reliance, Tata and Aditya Birla group into the field Subhiksha had become the country's largest mobile phone retailer with an annual turnover of Rs 1,000 crore. The performance of Subhiksha attracted the investors. Wipro Chairman Azim Premji, in March 2008, picked up the 10 per cent stake in Subhiksha that was offloaded by ICICI Venture for Rs 230 crore, pegging the company's valuation at Rs 2,300 crore.

That was the time for Subhiksha to capitalize Premji’s interest in the company. Company kept postponing the IPO. It did not want to dilute the shareholders interest. So it continued to raise money through debts. During September 2008, people lost their interest in share markets. There was a complete collapse of equity market. At the time when liquidity was tight, Subhiksha needed Rs 125 crore in cash to repay the loan.  It was due for Subhiksha to repay the bridge loan. The working capitals were diverted to rescue and expand Subhiksha with the hope of IPO in the confidence of success of the model. Working capital eroded. Many shops were closed as a rescue measure. Suppliers stopped supplying. Shops’ stands became empty. The security guards did not turned to the work. These all happened in less than 3 months. And finally in February 2009 there were not a single Subhiksha faced even cheque bounce case. Ajim Premji accused him for financial fraud. ICICI asked for detailed investigation of financial mismanagement. And he and his company became defaulter for over Rs 750 crore to 13 banks.

Probably, if IPO was done instead of postponement, equity could have been used to reduce the debt and Subhiksha would have survived.

Adopted from a case study in IGNOU MBA question paper.

An MD who does not work on Sudays

We always tend to think of highly successful people, who are the top in their line of activities. Many a times we never look into the news makers who make the news in our daily read newspapers. There are people at the top positions of the companies we know; who are inspiring and leading their life interesting. One of such news maker grabbed my attention was Mr. Y M Deosthalee, Chairman and MD of L&T Finance Holding, featured in a small column of the Business Standard recently.

Mr. Yeshwanth Moreshwar Deosthalee was at in the lead stories of business magazines with L&T Finance for an acquisition exercise by which it acquired Fidelity in India. Mr. Y M Deosthalee was CFO of the L&T earlier to his present assignments as Chairman and MD of L&T Finance Holding. He never went to a business school. But the nation has been served by his talent. He was at the committee set up by the government of India to address the liquidity crisis during the 2008 economic downturn.

To be an achiever, that too a successful CEO, one may thinks he should be a workaholic. But BS writes he is not. He goes home by 6.30. He does not work on Sundays. He also believes that one should not stick to the chair thinking he is irreplaceable. He believes there is life beyond work. He learnt Hindustani Music for three years and now music has become his passion. Shouldn’t we try to follow him?

A Non IITian Success Story

A M Naik, Chairman and MD, Larsen & Toubro (L&T) 

Success never asks for the certificates given by an institution. It is an inspiring story of Mr A M Naik (See Wikipedia), who struggled to speak in English climbed the top position in L&T, one of the prestigious corporate group of the country. This story by Shyamal Majumdar was published in Business Standard .

Consider what A M Naik has achieved in terms of making Larsen & Toubro (L&T) one of the most respected engineering conglomerates in the country. Now, consider his initial experience at L&T. Apart from the fact that he was not from any of the Indian Institutes of Technology (Naik did his mechanical engineering from Birla Vishvakarma Mahavidyalaya Engineering College in Vallabh Vidyanagar in Gujarat), his poor knowledge of English led him to make seven to eight mistakes in the first employment form he filled.


When he applied to L&T, he got a job, but the company reduced its initial offer by Rs 90 to Rs 670 a month and offered him a lower designation than what it had initially promised — all because the final interviewer thought he was a bit arrogant. Years later, Naik attributes this to a communication gap between him and the Englishman, who was the final interviewer. “I used to think in Gujarati and then translate it into English; the Englishman perhaps misunderstood what I had intended to say,” Naik said.


Naik could have easily given up on the L&T job, but didn’t, just to prove a point. He joined L&T on March 5, 1965, and became the workshop in-charge within one and a half years of joining the company. When he was not even 25, some 800 people reported to him. The rest is all too well known.


By the way title of the article was Opportunity in failures.

Big Bakra of Big Bazar

Big Bazar Great Exchange Offer

A fat lady wearing posh saree entered the Mall with an old damaged bag. It was obviously some mismatch between the how she looked and the bag she was carrying. She walked to the Big Bazar counter; instead of baggage counter she gave the bag to the person sitting in front of a computer in between the old useless household materials. He opened the bag and counted old clothes, shoes, and few books, then printed and gave her a voucher. It raised my eyebrow and I saw a board “Exchange Offer!” Exchange anything for extra 25% off. I have never seen Big Bazar doing any charity by taking your old jeans for Rs 300 or a kg of Newspaper for Rs 30 and give you something new. Kishor Biyani can never be a fool. Conditions obviously apply. The only question was what are those stars making us blind?

First I should tell how an exchange offer should work. One has an old Alto a/c car. Now he wants to buy a new Swift. He visits True Value shop. After negotiation he agrees for exchange at a price say Rs 2 lakh. This amount plus bonus if any will be deducted from the new car price say Rs 5 lakhs and he pays only Rs 3 lakhs to drive the car home. They never tell you to buy car with the price tag Rs 8.00 lakhs to get the benefit of Rs 2 lakhs so that the amount reduced does not exceed 25%.

Come back to Big Bazar. The lady exchanged the old jeans for an exchange voucher of Rs 300. To get the complete benefit she has to make the bill worth Rs 1200. Only then bill amount will be reduced to Rs 900. That means she got 25% discount. This is the maximum benefit scenario. What if she buys an item worth Rs 600? She will get a discount of 25% or Rs 150 only. To get the full benefits she fills her kart. She can’t make it exact Rs 1200. It becomes Rs1500. Then She doesn’t get 25% off, it will be Rs 300 only, i.e. 20%. Also, not all the items are under the 25% off offer, this is the maximum discount offered by them. If she had done a five-minute pre purchase research I can bet this same material would have cost less than this at some other shop. She lost old jeans and spent few bugs for this exchange offer. She ended up in purchasing 4 times the value of her old stuffs as evaluated by the Big Bazar in their convenience, without a second thought whether she is in need of what she is buying.

Congrats, Big Bakra of Big Bazar.

Online Shopping- in the way of making life more easy

I was in Hyderabad for the first time. Accommodation provided by the organization was away from the city and I did not know anything about the city. I had planned to visit some place the second day. I was shocked to know my 4 GB SanDisk Memory card of the camera was not working. It was showing memory of 1.3 TB and unable to format or recover. My schedule was little tight and I knew it could not be a fair excuse to go away from the schedule to go in hunt of new memory card. I had a good experience with Flipkart earlier to this. They had delivered most of my orders within a day. I believed in them and placed an order in the evening. The Flipkart Cash on Delivery guy was at the door of my office by 11 A.M that is 5 hrs before the 24 hours of my order.

I should appreciate Flipkart.com for bringing the change in the dimensions of the online shopping in India. Earlier to Flipkart, e-bay, India Times, Rediff Shopping were present and unable to attract the customer, may be due to the inferior quality brands they were selling through third parties. I always felt the business with these players were not as reliable as the Flipkart. Even today though Naptol, SBI Card Mega mall like shopping sites tries to provide the same materials at cheaper price due to the third party participation I never bought anything from them.

I have also tried with infibeam.com and letsbuy.com. Prices in both the shopping sites are very competitive to any of the others. But the delivery time is very high compared to Flipkart. Infibeam delivered few books in the interior city of Karnataka in 10 days were Flipkart within 3 days through courier. I purchased electronic items both with the Flipkart and Letsbuy, Flipkart COD was delivered in 1 day where Letsbuy took 7 days to deliver on COD. Advantage with the flipkart is that in all the major cities it has its own delivery services. The flipkarts self delivery service is really appreciable. Once I had doubt about the product packed due the way they have packed, the delivery guy of fliplkart asked me to open and confirm the product, and otherwise I can return without paying the amount. This can not be expected from the courier services employed by others.

Now my most of the Electronics, Durables, Home appliances and very importantly books are purchased online. I never experience the under quality products, cheating or frauds as some of my friends are frightened to do online shopping. I can even compare, read the reviews and compare prices in online shopping as against conventional shopping. It is really a hassle free.

Private Banks, Money Laundering and Frauds

Sri K. Kashivishwanath did not know that he owned a mining company. He was unaware of the continuous transactions of crore of Rupees taking place in his bank accounts. Lokayukta reports read "it has been observed that crores of rupees have been deposited in banks and also withdrawn in cash from these accounts. Such illegal money transactions have been further trailed/proceed to accounts in bank of various persons/companies/firms and others."

The same banks which creates an image that they follow a strict KYC norms by asking tens of documents for changing correspondence address legally supports illegal money laundering. One of such bank, without which this article goes incomplete is Axis Bank. Is it possible to do such transactions without the support from the bank? Definitely impossible. The banks named by the Lokayukta report are Hospet and Bellary branches of Axis Bank and

Lakshmi Vilas Bank. Times of India repor

ted "Trail of the company's Axis Bank (Bellary) accounts points to large number of suspicious cash withdrawals in denomination of Rs 9 lakh in the names of persons suspected to be benami"

Couple of years back the same leading private bank had a client Shree Om Sai Nath Car On Rent Pvt ltd. This was a chain market company, which collected a huge amount from the public. Initially cheques were duly paid by the bank. Within a year the account was freezed by the court. The bank could have shown social responsibility and could have saved hard earned money of poor people.

The similar cases also been reported by Belgaum. Sri Sai Multi Service (SMS) was another fraud company involved in the chain marketing with a full banking support from the Axis Bank, collected a huge amount from the public through its account DDs and wannabe fraudster company was raided.

I hope you have not forgotten fraud happened in City Bank in Gurgaon. The main accused of the City Bank Fixed deposit scam Sanjay Gupta of Hero Corporate Services owned two firms G2S and BG finance company. These companies were registered as consulting firms but did not have any offices. Even then these companies had accounts with Axis Bank. Police seized Rs 20 Crores from their Axis Bank account. A company no needs to have an office to open an account with Axis Bank! Finally the state run SBI officials helped the police to find the kingpin of the scam

The fraudster’s relationship with the Axis Bank does not end here. A single google search will though a lot of news of fraud companies having accounts with the Axis Bank. Kadri Police of Mangalore arrested Pravin Shetty who is said to be partner of Global Index Investment Company and seized the account with the Axis Bank. The bank which opened the account of the fraudster company was mentioned and forgotten

These banks are target driven. The top executive put immense pressure on the sales executive. Sales personals bring such customers and accounts of the fraud companies get open in the bank based on the documents submitted by them. They even satisfy the KYC norms according to the present regulation. The will power of the banker to show some social responsibility and serve the society against such frauds can only prevent such fraud accounts. In don’t think you can expect it from private banks that are running behind the numbers.

Note: This article is supported by the various news reports and the author is not influenced to write against the institutions mentioned.

Beat a Person In His Own Game

I received this story through E- Mail from one of my senior Executives, I thought of sharing this with you as it is worth reading.

A lawyer purchased a box of very rare and expensive cigars, and then insured them against fire among other things. Within a month of having smoked his entire stockpile of these great cigars and without yet having made even his first premium payment on the policy, the lawyer filed claim against the insurance company. In his claim, the lawyer stated the cigars were lost "in a series of small fires". The insurance company refused to pay, citing the obvious reason: that the man had consumed the cigars in the normal fashion.

The lawyer sued..and won! In delivering the ruling, the judge agreed with the insurance company that the claim was frivolous. The judge stated, nevertheless, that the lawyer held a policy from the company in which it had warranted that the cigars were insurable and also guaranteed that it would insure them against fire, without defining what is considered to be unacceptable fire, and was obligated to pay the claim. Rather than endure a lengthy and costly appeal process, the insurance company accepted the ruling and paid $15,000 to the lawyer for his loss of the rare cigars in the "fires".

Now the best part.

After the lawyer cashed the cheque, the insurance company had him arrested on 24 counts of arson!!! With his own insurance claim and testimony from the previous case being used against him, the lawyer was convicted of intentionally burning his insured property and was sentenced to 24 months in jail and a $24,000 fine

What Does India Need? Projectivity or Productivity?

Are you working for an Indian software company? What are you working on? A Project or an own Product?

Bill Gates is recognized for Microsoft Windows, Steve Jobs is for i-phone and i-pad, we have so many examples like this. Let me ask you now- for what product Mr Narayan Murthy recognized for? Ask yourself, take any Indian Software company and analyze for what product they are recognized for. Nokia is famous for Nokia Mobiles; Samsung is for quite much number of electronic items. Google could create a new verb. For which product do you mark Wipro? (Leave its consumer goods section). Western Products Ltd- Wipro has forgotten what is a product when it comes to Wipro Technologies. Where do its EGO laptops stand in international Market?

Have you observed one thing? We feel proud when some Indian name runs in credential when adobe acrobat initiates. We proudly announce this much percentage of yahoo, Intel, Microsoft employees are Indians. Now tell me, why still we are working on some project borrowed from those companies? Why we could not create an OS like Microsoft, Unix or Mac? Why still we are importing phones from China? Why we don’t have indigenous Chip, Mobile or Complete Desktop? Is it much difficult than an aircraft, a satellite launching vehicle or a cryogenic engine, or a super computer?

Ask CDAC or ISRO people how to work on a product? They have built indigenous products. We have cryogenic engine now! Just because USSR did not give us cryogenic technology when we asked it for! We have PARAM super computers just because USA was unwilling to provide us that technology. They worked for the nation! We, so called engineers work for company, work for project, work for service!

Narayana Murthy is our youngsters’ role model. What flashes you when we tell the name of Narayana Murthy! There could be Finacle, Tally or similar software products by Indian software units, but again they are just a service to their clients. What flashes in your mind when somebody tells Steve Jobs, Bill Gates, Larry Page, N Y Philiphs……? People who do not know English have brand name called Lenovo, which now acquired IBM’s hardware unit. The same Chinese people have Huawei; to run our internet connections we have no other option!

We Indians are masters in English have nothing! (Our software companies test communication skills in English during recruitment) Our companies work on some projects which are already researched and developed by Huawei! You learn Chinese to bring that silly project! Our knowledge in foreign language is used only for bringing or begging some projects! The same Narayana Murthy tells many of our engineering students are not eligible to be employed. Yes, our schools have prepared such graduates who can work on some project- a borrowed out sourced service! They are not prepared to work on their own product or a landmark in the technology! What else you can expect when your requirement is the same?

Work for ‘Product’vity not on ‘Project’vity!

Google SMS channels thrash MyToday?

MyToday and SMSGupshup are the ony players in the informative group SMS field. They offer SMS free daily on various topic and their revenue generated by putting oneliner ads at the bottom of such SMS. MyToday really lead the rally with 4 million subscribers and 11 millions subscriptions with a very simple website MyToday.com. Gupshup came second in the field and now the Internet giant Google also entered into SMS channels.

Google SMS Channels is a service that enables channels/groups on SMS. It's a free service that enables you to get premium content published by Google publishing partners, Google popular products (Google News, Blogger and Google Groups) and websites with RSS/Atom support for free. SMS Channels allows you to create your own channel(s) to publish content that other users can subscribe to. You don't pay anything to send or receive messages using Google SMS Channels. When you post a message to your channel, all the members of your channel get the message forwarded for free.

The main difference is that the Google allows the user to create their own channel and put it forward for the subscribers and also you can configure your interested channels online visiting to Google SMS channels. Hence you don't need to spend even a single sms to configure the sms channels.

I'm using MyToday from last 2 years and the quality of the service is not so good as it was earlier. This could be due to infrastructure problem. Google SMS channels are very systematic and it took hardly 5 minute to register, verify, search and subscribe to the services. Hence to service in this race both MyToday and SMSgupshup might have to change their complete strategies. Let us wait and see.

Related articles: MyToday is no more reliable

Vijay Malya, Tippu sword and Gandhi Memorabilia

Vijay Mallya won five heritage items that belongs to Mahatma Gandhi steel-rimmed spectacles, a pair of sandals, a Zenith pocket watch, an eating bowl and a plate in an auction by AntiquorumAuctioneers in New York for $1.8 million. Indian government tried its best to stop the auction and also offered to purchase these at the reserve price as it can't participate in an auction. After rejecting the conditions put by James Otis Indians lost hope of bringing these things back to India. But the most passionated business man Vijay Mallya brought them back to India.

Few years back in 2004 Mallya had brought sword that belongs to Tippu Sultan from an auction in London fro Rs 1.5 crores. At that time it was considered as a political drama as he was leading Janata Party in election. Now it is completely dead and there is no sign of bringing it back to active politics. Even though he used the sword for his campaign it did not do any magic. He could not make his party win even a single assembly seat.

Now winning of auction of Gandhi memorabilia can not be just considered as a symbol of status. It is now attached to patriotism. Janata party is not there in politics. Mallya is always welknown for his fashionable habits. From horse race to Kingfisher bikini callender he is always shinmes as a business celebrity. Gandhiji was against alcohol. He always used to tell India should be alcohol free. But the liquor money is now used to bring Gandhi memorabilia back to India!!

Airtel.com, Airtel.in and Domain squatting

Before going in detail I have to tell you what is domain squatting. Domain squatting is registering, trafficking in, or using a domain name with bad faith intent to profit from the goodwill of a trademark belonging to someone else. Now the question is whether the following case a domain squatting?
Let us analyse the situation. Click on Airtel.in. You will be taken to India's popular cellular service provider Airtel. Airtel is largest cellular service provider of India with more than 79 million subscribers as of November 2008. Now click on Airtel.com. You will be navigated to Vodafone Spain site. It may be a Spanish, where Airtel has no service, it still is the competitor’s website. Airtel has tough compitition with Vodafone in India. Whoever types Airtel.com and looks for Airtel detail he will be taken to Vodafone's website. Vodafone gets free traffic from Airtel.
What could be legal action? Before tell it I should also inform how I can write about this. I am a student of Post Graduation Diploma in IPR Laws in National Law School of India University, Bangalore. Now come to the case. By the definition of Domain squatting or Cyber squatting, if domain name Airtel.com is registered with bad faith intent to profit from the goodwill of a trademark belonging to someone else that is well established Airtel, then Vodafone could be asked to transfer the domain name according to the WIPO Uniform Domain Name Dispute Resolution Policy. WIPO takes care of transfer of domain names to the true trademark owner.
But this case is quite different. Look at this information:

Domain name: AIRTEL.COM
Host IP 212.73.32.153
Created on: 1998-12-15
Updated on: 2008-09-29
Expires on: 2009-12-14
Registrant Name: AIRTEL MOVIL, S.A.
Contact: AIRTEL MOVIL, S.A.
Technical Contact Address: Psg. Lluis Companys, 23
Technical Contact City: Barcelona
Technical Contact Postal Code: 08010
Technical Contact Country: ES
Contact Phone: +34 935074360
Contact Fax: +34 933102360

The domain name is registered very long back in 1998, when cellular service called Airtel was there in Spain. But later it is acquired by Vodafone and they took the advantage and started redirecting the traffic from Airtel.com to their Spanish site. So Airtel-India can not do anything on this issue. But the domain name Airtel.com will get expired on 14 Dec 2009. Hope Vodafone will not re-registeres the domain name and continue to use it.
What happens if Vodafone re-registeres Airtel.com even though now it does not own trademark Airtel? I have to ask our lecturer, IPR expert, advocate J Suresh to answer this question. If you know the answer you are free to write a comment.

Satyam and emergency: A real cartoon

No need to tell you Satyam story here again. Look at the photo. Ambulance, emergency number 108, then Satyam symbol- looks like a real cartoon. This photograph is of an ambulance of government of Karnataka, which the project was recently inaugurated. Satyam provides technology and call centre services for this service. Now Satyam is in need of service.

Economic Meltdown Kisses Biotechnology Research

Finally world economic meltdown kissed biotechnology too. It took time, may not be at that extent other fields are affected, but it is. There are several reasons to say it will continue even after other firms recovers.
I have some friends working for both research institutions and biotechnology companies. One of my friend in an Indian research institution tells they started re-using eppendorf tube which they have never done earlier. Instead of thrown in to dustbin, now they wash it and sterilise. This is because they are not getting sufficient fund from the corporate firms who were always in back of these research. If this continues for quite a long time they may have to stop research. That is true, research works in biotechnology requires a huge fund, that a research institution alone can not afford. So many firms and also government bodies sponsor these research as their corporate social responsibility. At this economic condition how can you expect funds?
While bio tech companies are still seems to be stable at stock market are also running short of research capital. The capital comes from investment companies and most of the investment firms are now at their worst condition. So now, the research in large bio tech firms have also lost support from capital investment firms.If research in bio tech loses support, it could be a worst hit to mankind.
Photo: part of affinity chromatography column; 2007©Akshay Bhagwat

"Satyam"- not Shivam nor Sundaram.

Satyam- a former construction company turned a Indian software giant, 4th largest IT exporter from India now at trouble. It is seeing a very tough time recently when market people did not accept Satyam's acquisition of Maytas Infrastructure and Maytas Properties where both companies are in the hold of family of Satyam's chairman B Ramalinga Raju. Satyam's this deal disturbed the basic confidence of Indian investers. You can look at the chart given here and observe more than 40% loss in just 1 week where the prices of 24th Dec compared with 16th Dec, the day before the Maytas- Satyam deal saw the red eye of investers.
The company dropped the plan to buy the two firms within hours after investors reacted angrily. But it didn't helped because it encountered another unfortunate moment- The World has barred Satyam, its top computer software services provider, from conducting any business with it for eight years. The WB has given the reasons "improper benefits to bank staff" and "lack of documentation on invoices" for taking this action. This again raised selling pressure of the Satyam shares.Even today (24 Dec) market drop and Satyam share fall are non comparable- Satyam was down 14.6 percent at 119.85 rupees at the time Mumbai market was down 0.9 percent.

Apart from these stories there are also strong reasons that Satyam's further fall that may not be able to acquire in this strange economic situation. Satyam clients General Electric, Nestle and Qantas Airways, cut its sales forecast in October. Satyam became a live example of bad corporate governance. There is no hope of Satyam becoming Shivam(auspiciousness-favorable quality of indicating successful) and Sundaram(beauty).