Friends,
I have written very small post on Satyam when asked for my comments and many must have frustrated while reading it that it was too small .But let me tell you that I didn't go full flow about how market will react.
But when I am seeing that market has not showed a great concern on next day and still remained above 9k it shows that market has discounted this bad news and now we need to see how market reacts next week.But when there is no big reaction the very next day it means that we should do well next week as well.
Ofcourse , the results of Dec qr which are due can take toll but Infy moving up shows that market has taken satyam news as an isolated misgovernance and has not taken it in totality for the whole sector.
I hope that that should be the case and we see a stabilization after Satyam issue comes to the fore.
Hi Rajeev,
ReplyDeleteThis was posted on rediff.com please comment.
SATYAM, The Truth - Where is the Money Gone ?
The Money as said by the Chairman, BR Raju, vanished in Escalating Costs, which became unManagable in course of time.
Means, The 8000 Crores of Losses are DISTRIBUTED among the Public thru the Software Engineers(Ofcourse, Most of Whom are Gulbarga, Davangere, Donation College and NRIQuota Engineers with FAKE Certificates.)
Check This Out moneycontrol.com/stocks/marketinfo/emc/bse/homebody.php?indcode=0&sortcode=0
SATYAM, The Truth - Where is the Money Gone ?
Company Vs EmployeeCost/Sales
Satyam - 61.01% (Rs.4965 Cr.)
Polaris - 75.05%
MindTree - 58.7%
Mastek - 60.98%
InfoSys - 49.66%
Patni Comp - 47.79%
CLEARLY, This is a HR Fraud. Had the Company Trimmed Workforce and Recruited Efficient People at Effectively Better Salaries, They could have easily Saved 25% of their Staff Costs ie Rs.1000 Cr. per Year.
Lessons to Learn for All Companies:
1. Don't Recruit Fakesters and Talentless Fellows with Inferior Technical Skills and Superior Faking Skills.
2. Networking Skills of Employees is a Superior Selfish Skill, Which Kills the Organisation.
3. Don't Recruit Incompetent Females just for making the WorkSpace Sexy.
4. Don't Accept the HR's Advice that Increasing Salaries will Attract Talent.
5. Regularly Inspect HR Managers and Fire those Helping Fakesters.
Raju! Yadha Karma Thadha Phalam.
You Encouraged Fake Resumes, And So You Faked your Balance Sheet.
But, Ultimately, Only Talent Wins.
Becoz, Talent is verily the ParamAtma (from the Bhagavad Gita).
Average Salaries at SATYAM were Rs. 9,36,800 pa . (Rs.4964.84Crores/53000)
i.e., Rs.78000 per month.
Had it been half or Rs.40000, would they have been uncomfortable in life ?
The Shameless Salary wars (instead of Price wars) snowballed into this kind of a Fraud.
Labour Costs in Agriculture over the Last 3/4 years rose to 3 times.
But that was primarily driven by the Orchestrated Construction Boom Where too the Labour Costs have risen 3 times.
The Extraordinary amount of Money thus Circulated in the Poorest Strata of the Country has actually Devalued the Rupee to 1/3rd.
India's Growth Story of 8% GDP growth is actually a Collapse of Indian Economy to 36% (108/3). Or a DeGrowth of 64%.
Do we Need this ???
All Software companies, apart from other Sectors Must DECLARE a Cut In Salaries.
Else All the Investors money will vanish in the StockMarkets.
Latest News: Satyam has 25000 of Excess/Useless Employees. The situation could be similar with all other Big IT Companies.
Dear bhargav,
ReplyDeleteFirst let me write to you that do keep writing such things even if I fail to reply or give comments.
I try to read as much as I can but sometimes I miss many things reading.Now a days I even miss reading ET and BS.
But yes, seems the salary made a big big dent in Stayam expenditure.
If average salary of Satyam is/was Rs 9,36,000/- then that is too high a salary by any Indian standard.That is real too high.....
Seems like that made a big big difference in trhe fate of Satyam.
I hope that corporate India will learn from this.
Yes, I use to have arguements with my relatives and friends on this topic that salary are very high for IT Eng.They start with min. Rs 3,00,000/- and that is high by any standard.But I got some very absurd arguements to support that high salary and hence I stopped discussing with that.
I remember when I was in India I use to have a salary of Rs 22,000/- per month , means Rs 2,64,000/-for whole year.Now that salary I reached after my employment with bank for 25 long years and when I see a new IT Eng getting Rs 3,00,000 as starting salary I was surprised to see that.Even the Bank Managers do not get more then 30,000 for 1 month.
I do not say that IT Eng shouldn;t get that salary but with a start of Rs 25,000/mn is too high which in normal course one is able to get after putting 10-15-25 yrs of service in any institution.
I don't think any Eng degree other then IT gets this type of salary in start.
I am talking of average starting salary.This is an average salary of any IT Eng.......Rs 25,000/mn..
Many may feel I am jealous of IT people but it is not so.I still feel that 3,00,000 per anumn is real big salary by any standard....
and here what we are seeing the case of Satyam which is now under the debris due to high salary....