panch-tattva/post result…infosystch

Friends,

Infosystch has given result as per the pratice and happens to be the one to kick start the season. It is remarkable that ’satyam’ episode has not done any harm, it has demonstrated that it is above controversies.

In fact the delay in result announcement in todays times of IT enabled book-keeping facilities and communications give an impression that the managements require time for dressing up books. The fact is that Indian managemnts think that its them who are working and giving out profits to shareholders and have right to decide how much to give them. These people forget that its them who sink businesses but are first to save themseleves when boats sink. You have an end less list of failed industrialists but their private fortunes are ever greater. If not for cooking books how else it may be so.

The ’satyam’ case is a case of excessive attempt at doing it or foolishly doing it. If any honest attempt is made to find out ,not less 80pc Indian companies will show that there account statements are not 100pc factual. They are fudged for income tax evasion. They are fudged for befooling banks in to giving loans when the company is about to be sunk by promoters. You may take case of a group or two in steel/ispat sector .

It would therefore be OK to ask the companies to give the unaudited account for the quarter within two weeks or declare a date within the extended time of three weeks to give the preliminery account. The revenue figures and the out-put figures should be mandatorily given for every month within the next months first fortnight.

Any way, please note the advice under ‘panch-tattva’ after the third quarter result:

INFOSYSTCH @1220 (131208) gets 1045 panch-tattva point and you may buy and retain ,and sell only after it has crossed Rs 1500/- per share.

This share will keep indices at respectable level.It’s results show that all is not unwell around the world.Also ,if ’satyam’ has brought the ugly side of Indian mangements to light , ‘infosys’ shows the way how busines should be conducted, recorded and reported.A good fall out of the recent happenings will be that companies overall will be less prone to deviate from the factual position in respect of accounts and book keeping.

HariOm,
krsnaKhandelwal

panch-tattva talk…IIP numbers

Friends,

IIP numbers for Nov 08 show 2.4pc growth. Since it is growth it does not metter as the the mood is sombre and negative number would have affected badly.

The call rate is at 4pc and the rupee is at 48.84 to a dollar. The 364 Day treasury bill yeilds 4.8pc.10yr gild yield is at 6.45pc. The crude is at about 40 dollars/bbl. Had it not been for ’satyam’ the damage to market would only have been lower if at all.

Satyam’s new masters have met and still don’t have any concrete thing to tell except that the govt would facilitate immediate funding requirement of the company so that it may run its normal operations. In my openion it would have been better to concentrate on the quantifying the damage and ascertaining the assets now with the company. This can be done quite easily. When this is known , the company should have been offered to the best bidder.who would have offered to buy a certain number of shares from present share-holders in a price band. This would have made them step in to shoes of earstwhile promoters. As a seperate excercise, the recovery of wrongly transferred assets and money of the company should be attemted.A fatherless company is difficult to be guided. The care-takers can go only upto a point. An adopting father is better than a ‘nanny’ for the orphaned child.

Let us see if some stability is returned today.

HariOm,
krsnaKhandelwal