Remember Me
forgot your password?

Why Bail Out?

Ramalinga Raju did a fraud. He is not alone involved and no one alone can do it. The auditors demand proof of every entry done in the books of accounts. If they couldn't notice the fraud that means either they were provided with all the proofs or their mouth was shut with money. The bank has to issue balance certificate every quarter. The balance shown was 5,300 Crore and actual balance was 350-450 Crore. How they got the certificate? or they bought it from the banks. So the bank managers are also involved. The experts allover the world who was keeping an eye on Satyam, could not doubt even some problem. In the same day when Ramalinga Raju declared about the fraud, one of the experts at one of the channel said Satyam will touch 250 - 260 in short future.

And mind you, this is not first and last case of corporate fraud. UTI also had refunded money to investors of Children Growth Fund before maturity. Though the money refunded was with interest but the promises were not kept. To pay something less than promised, that too by a government firm, is a fraud in my opinion.

Reliance had issued a bond for which company was to pay 50% of the investment every year for four years starting from 5th year. But the think bank at Reliance had put a clause that if the company wants, the amount will be refunded without interest after 4 years. The company here wished to utilise fund of crores for four years without interest. And none of the Government officers objected that, neither did any finance expert. And even after that whenever the company or group company of Ambani Brothers came to market for collecting funds, they got it. That proves we can't remember anything for a long period.

Now question which pop-ups to anyone is that corporate frauds are very common in India, should government help these companies to survive just for jobs of the employees. Now even DLF is under scanner. Funds to any industry will not create demands. If a car of say Rs. 5 Lacs is available for a discount of Rs. 25,000 , no one will rush to buy the car unless he needs it badly. And if he needs badly, he will buy even if he doesn't get the discount. Same is true for any industry.

Government need not worry about any company's future. When they earned crores of rupees they neither paid to Government except the tax nor to society except few companies did it. When they earned, they took to home, now when they lose, they are demanding from Government and company's employees by reducing their salaries.

Actually, the company should face the problems on their own. Increase and decrease in demands is a part of business. The bigs should not be helped to run their business. That will generate healthy competition among big, medium and small companies. The money for bail out will be taken from tax payers' pocket and bail out will protect only the giant companies. All the companies are manipulating their balance sheet, though may not to the extent in Satyam's case. They should not be protected.

To read more interesting articles, visit: http:Great1ShareTips.blogspot.com

To get Indian Share Market Tips, visit: http://www.ShareTipsOnline.com

Jaksha Shah
Rate this Article: 0 / 5 stars - 0 vote(s)
Print Email Re-Publish

Add new Comment



Captcha

  • Latest Investing Articles
  • More from Jaksha Shah

Start planning your future finances early with IFS

By: Laura Jane Smith | 12/11/2009
Helpful advice for future savings

Futures Trading For Beginners

By: Serge Martin | 12/11/2009
Before delving much into it, we must understand what futures trading is. Futures trading is considered an investment and therefore involves a certain risk. However, most people are not keen on the risk due to the profit involved. Today even the most seasoned investor understands that theses futures are money minting machines when done in the right way. Therefore the beginner in any futures trading needs to know that futures are not traded in the stock market.

Why Trade Futures and Options

By: Serge Martin | 12/11/2009
Futures and options are classified under the derivatives financial instruments category. The derivatives have been in operation since time immemorial and have become more popular in the recent past. This is despite the fact that they have been faced with lots of criticism, with allegations that they make the markets prone to instability due to a lack of transparency

What You Need to Fix and Flip Houses

By: James Gossette | 12/11/2009
Fixing and flipping houses requires expertise and patience. To make your every fix and flip project a success, here are some of what you might need.

What is Wholesaling Houses?

By: James Gossette | 12/11/2009
Wholesaling houses has taken the country by storm as more and more people are leaving their usual nine-to-five jobs to make money in the real estate business.

The Secrets to Finding Motivated Sellers

By: James Gossette | 12/11/2009
As a real estate investor, one of the best ways to earn money without making huge risks is to wholesale houses.

Steps in Rehabbing Homes

By: James Gossette | 12/11/2009
If you want to transform a handyman special or a distressed property into a gorgeous home, one of the first things you should look into is the house’s exterior.

Some Myths About Rehabbing Houses

By: James Gossette | 12/11/2009
Despite the economic slowdown, a lot of people are still venturing into rehabbing houses because it is actually is a rewarding form of investing.

Gold

By: Jaksha Shah | 13/04/2009 | Investing
Gold is one of the chemical elements. Gold's chemical symbol is Au and its atomic number is 79. Gold does not interact with other chemicals or compounds. Gold doesn't tarnish and even the strongest acids have no effect. Thus, gold lasts forever - and stays shiny the whole time!

Indian Middle Class and Expenses

By: Jaksha Shah | 09/02/2009 | Personal Finance
Consumer outlook survey was made by KSA Technopack recently. In this survey 60,000 people from 20 cities of India were covered. That showed that citizens expenses towards food is declining and that for mobiles, internet and servant, which are status symbols, are on increasing.

Sony Ericsson Gaming Handset

By: Jaksha Shah | 09/02/2009 | Cell Phones
To support the gaming experience, Sony Ericsson F305 also provides a 2 inch screen and built-in stereo speakers. Plus - if you’re not happy with the 8 hour game-play battery life, you can always get yourself the Power Pack CPP-100 to receive a power boost.

Flextreme From General Motors

By: Jaksha Shah | 28/01/2009 | Cars
The Flextreme’s proposed 34 mile all-electric, emissions-free range doesn’t sound like much, but for the person commuting to work, it should cover the vast majority of commutes. I can imagine that when someone pulls up at their place of business, electrical outlets will be available to recharge the Flextreme during the 9-10 hours the person is at work. Once home, they can recharge their car again.

Why Bail Out?

By: Jaksha Shah | 11/01/2009 | Investing
Government need not worry about any company's future. When they earned crores of rupees they neither paid to Government except the tax nor to society except few companies did it. When they earned, they took to home, now when they lose, they are demanding from Government and company's employees by reducing their salaries.

Ktm Duke 690

By: Jaksha Shah | 24/12/2008 | Motorcycles
KTM, Austria's sports bike maker, is planning to launch its bike as a joint venture with Bajaj in India. Initially KTM will launch Duke 690 in the Indian motorcycle market. KTM Duke 690 will largely be developed at Bajaj’s Chakan, India plant and will be marketed through Bajaj’s Probiking showrooms. This joint venture of KTM and Bajaj may be extended to manufacture scooters as well.

Real Estate Market in Gulf

By: Jaksha Shah | 24/12/2008 | Real Estate
The oil-rich Gulf region was considered to be immune to the problems of the financial meltdown. However, the global financial crisis is knocking on the doors of the Gulf region and the first tremors are causing a panic in the job market. The Indian expats are the worst affected with thousands losing their jobs already, according to some reports. In UAE alone, there have been about 800 job cuts in the real estate sector whereas banks have laid off a few hundred more. The impact of the financial m

Suzuki Zeus

By: Jaksha Shah | 18/12/2008 | Motorcycles
Just after a few weeks after the launch of the Suzuki Heat, the company has launched its new model Suzuki Zeus in the Indian market. Suzuki Zeus, the latest bike from Suzuki Motorcycles India Pvt Ltd has been launched. The 125cc single cylinder Suzuki Zeus comes at a price of around Rs 46,000. The bike had a soft launch earlier this year.

Submit Your Articles Free: Signup
Article Categories




Use of this web site constitutes acceptance of the Terms Of Use and Privacy Policy | User published content is licensed under a Creative Commons License.
Copyright © 2005-2008 Free Articles by ArticlesBase.com, All rights reserved. (0.18, 6, w1)