Corporate governance

PR disaster for PM Modi

PM Modi’s public relations machinery has made fatal mistakes.

Restrict promoters power to invest company’s money

In my earlier post, I had given some suggestions with respect to pledging of shares by promoters. Some other related issues have also to be taken care of.

SEBI asks promoters to reveal pledged shares information

It seems that after the Satyam fiasco, SEBI is asking promoters to reveal information about pledged shares. I do not think that this step will do any good. Promoters will reveal the information and after some time people will forget about it.

Getting banned by World Bank is OK

It was reported that Wipro was banned by the World Bank for two reasons as follows:

How Airtel increases it revenues by cheating customers?

Are there more skeletons in corporate India’s balance sheet? Sure there are. Everybody knows that practically everybody cooks up their balance sheets. Most ofthe time the objective of closly held companies is to reduce profits so that they pay less tax. But a lot of companies want to show ever increasing returns to boost up the share prices just like what Raju of Satyam was aiming at. With higher valuations, companies can raise more money or the promoters can sell their stakes at a higher price.