Satyam’s Conspiracy

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post

D.Kalyani, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur


 

In 2009, Satyam scandal came into picture when founder-chairman of Satyam Computers Mr. Ramalinga Raju confessed that the company’s accounts were manipulated. He disclosed Rs.7000 crore of accounting fraud in the balance sheets. He was arrested along with his brother and other convicts by the CID of Andhra Pradesh. The main charge sheet against them ran into 2315 pages and several documents were attached to it which made it a case file of 65000 pages. It was apparent that they formulated a procedure to fudge and fake balance sheet, bank statements and records. This misconduct had caused for cessation of the fourth largest Indian IT firm.

In the special story of The Hindu, it came up with the entire timeline of the scam – from skepticism to final verdict. On April 9, 2015 all 10 accused found guilty and were sentenced to a seven year jail term by a trial court.

This scandal was an unanticipated situation which was a tussle for the whole industry because it raised questions on the accounting practices in India and made Indian IT firm to take measures to reassure top clients about the well versed accounting system at their companies.

In an article of the leading newspaper The Economic Times, has shown that Satyam scam has become a case study for IT and gave lots of lessons for the top Indian IT firms. It also called for better government regulations in the corporate world. This episode also demands for fair and ethical business practices in India. It also raises a question whether enterprise’s only and primary goal is profit making. It so then why they stress on the false objective in the public i.e. its central aim is to maintain a sustainable long term relationship with their stakeholder. It is just a publicity stunt to grab the attention of the investors.

References:

http://www.thehindu.com/specials/timelines/satyam-scandal-who-what-and-when/article7084878.ece

http://indianexpress.com/article/business/business-others/satyam-scam-all-10-accused-including-founder-b-ramalinga-raju-found-guilty/

http://articles.economictimes.indiatimes.com/2015-04-10/news/61018033_1_satyam-verdict-satyam-scandal-satyam-scam

http://timesofindia.indiatimes.com/india/Satyam-scam-case-Raju-and-other-accused-appeal-against-trial-court-judgment/articleshow/46913591.cms

http://www.hindustantimes.com/business-news/satyam-scam-court-to-pronounce-verdict-in-multi-crore-fraud-case-today/article1-1335348.aspx

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Maruti Suzuki’s Penetration

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

D.Kalyani, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur


Maruti Suzuki is expecting that its market share and margins will increase with the new product launch of Ciaz in the premium sedan segment. The company, which had lost some market share in the overall sedan market, is expected to recover some of the losses in market share (currently 37-38 per cent) ,given Ciaz has a production rate of 5,000 units a month. Sedan sales for the firm were up 21 by per cent in FY15.

On April 2, 2015 Business Standards has quoted that “Among compact sports utility vehicles (SUVs), fastest growing segment within utility vehicles, the Ertiga and Gypsy sold 50,000 units for the period April to December in FY15, with a market share of 32 per cent. Aditya Makharia of JPMorgan believes within passenger cars, crossover vehicles are expected to drive sales, with multiple launches lined up. Given the importance of the segment, Maruti Suzuki has lined up a crossover (SX4 S-Cross) and a mini sports utility vehicle in FY16.Besides, it might enter the light commercial vehicle market and will be launching a model in the current financial year.”

Apart from that, Maruti Suzuki is eyeing big on the India’s rural market. On April 5, 2015 the leading newspaper The Economics Times has mentioned that “country’s largest car maker Maruti Suzuki is targeting to increase its penetration in rural areas by over 20 per cent to have presence in 1.5 lakh villages. “
With all these moves, Maruti Suzuki is trying to make its position strong in the auto industry with the increment in its car sales and expecting long term growth. With these advancements it is trying to address the needs of urban as well as rural market.

References:

http://www.business-standard.com/article/companies/maruti-premium-vehicles-to-boost-volumes-margins-115040200916_1.html

http://economictimes.indiatimes.com/industry/auto/news/industry/maruti-to-rev-up-rural-drive-targets-1-5-lakh-villages/articleshow/46811991.cms

Abolition of Section 66A of IT Act

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post

D.Kalyani, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur


 

The Section 66A of the Information Technology Act, 2000 deals with “Sending offensive message through electronic means” reads, “Any person who sends by means of a computer resource or a communication device – (a) any information that is grossly offensive or has menacing character; (b) any information which he knows to be false, but for the purpose of causing annoyance, inconvenience, danger, obstruction, insult, injury, criminal intimidation, enmity, hatred, or ill will, persistently by making use of such computer resource or a communication device, (c) any electronic mail or electronic mail message for the purpose of causing annoyance or inconvenience or to deceive or to mislead the addressee or recipient about the origin of such messages shall be punishable with imprisonment for a term which may extend to three years and with fine.”

The act has been the subject of intense debate over the last few years, especially after social media sites began proliferating in India. Several PILs have been filed challenging the constitutionality of Section 66A of the IT Act. Supreme Court has decided to scrap Section 66A as it clearly affects the right to freedom of speech and expression enshrined under the Constitution.

After this judgment, there is a mixed reaction from different parts of the country. Some people think this verdict will allow messages that can degrade a person’s reputation. Another school of thought is that this will put an end to the vague and arbitrary rule which attacks the right to free speech. There are some other provisions in IT Act and IPC which deal with unlawful content.
References:

http://www.livemint.com/Politics/xnoW0mizd6RYbuBPY2WDnM/Six-cases-where-the-draconian-Section-66A-was-applied.html?utm_source=copy

http://www.thehindu.com/news/national/supreme-court-strikes-down-section-66-a-of-the-it-act-finds-it-unconstitutional/article7027375.ece

http://timesofindia.indiatimes.com/india/Section-66A-quashed-Citizens-can-still-be-arrested-for-online-posts/articleshow/46683200.cms

http://economictimes.indiatimes.com/news/politics-and-nation/legal-experts-have-mixed-responses-over-abolition-of-section-66a/articleshow/46683197.cms

Enlargement of Paytm with Ratan Tata as an Advisor

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post

D.Kalyani, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur


On 13th March 2015, Mr. Ratan Tata’s personal investment in the mobile commerce company Paytm has made headline in the digital economy of India although the investment amount was not disclosed. With this investment, Tata has made five investments in the flourishing domestic e-commerce sector in the last seven months: online marketplace Snapdeal, jewelry e-tailer Bluestone, online furniture store Urban Ladder and auto classifieds portal CarDekho. Apart from that, Mr. Tata had also taken up the advisory role venture capital firm Kalaari Capital.

Paytm Founder and CEO, Vijay Shekhar Sharma had also expressed his pleasure to have Mr. Tata as an advisor for Paytm. Its aim is to grow the number of mobile wallets to 100 million by the year-end from 25 million active wallets, with an average wallet balance of Rs 150.

Other than facilitating a mobile commerce platform, it works in mobile recharges, tickets and deals. It has also tied up with the likes of taxi hailing app Uber, ticket booking portal Bookmyshow, travel booking platform MakeMyTrip and food ordering service FoodPanda among others.

Paytm has announced that it will introduce Immediate Payment Service (IMPS) on its platform, wherein users can use mobile wallets to transfer money to any bank account. The company will also open about 50,000 retail outlets where users can load cash in their mobile wallets. In order to avail the wallet to bank account transfer facility, a user has to be mobile or e-mail verified and registered on the system for over 45 days. The balance in the Paytm wallet must be a minimum of Rs. 2,000 and the transaction amount should exceed Rs 1,000. The daily upper limit for wallet to bank account transactions is Rs 5,000 and the monthly limit is Rs 25,000, the company said in a statement.

With all these moves, Paytm is going to make big in domestic m-commerce which enables users an efficient mobile payment platform.  Ratan Tata’s bullish step clearly shows India’s fast-growing e-commerce market.

References:

http://profit.ndtv.com/budget/ratan-tata-invests-in-mobile-commerce-firm-paytm-746370

http://indianexpress.com/article/business/companies/ratan-tata-invests-in-paytm-takes-up-advisory-role/

http://www.hindustantimes.com/business-news/ratan-tata-invests-in-paytm-joinsas-adviser/article1-1326103.aspx

Prohibition of Usage of Private Email Networks in Government Offices

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

Kalyani, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur

By disclosing an ‘E-mail Policy of Government of India’ and ‘Policy on use of Information Technology resources of Government of India’, the present government of India has clearly stated that e-mail services provided by NIC (National Informatics Centre) shall be used for official communication. In addition to that, government will be monitoring online activities of the bureaucrats on official computers and can block content which it feels is adversely affecting the productivity of the officers. NIC has a right to “access, review, copy or delete” any kind of electronic communication such as files, e-mails and internet history, for “security-related reasons” with prior intimation to the user.

As part of these notifications, Government of India has officially banned the use of private e-mail networks like Gmail and Yahoo for official purpose. The step was taken to subsidize the government’s concern over foreign servers of Gmail and Yahoo and to stop instances of US snooping.

The terms of access to social media sites from government networks are also included in the policy. Users will always work under “high security settings”. They should not post any offensive, threatening, defamatory, bullying, racist, hateful, harassing, obscene material on Twitter or Facebook. The users are not allowed to make any comment or post which can be harmful for the organization’s reputation.

All these measures will reduce the misuse of the official network. It will also ensure secure and proper usage of government’s IT sources by restricting spoofing of confidential data and sharing of passwords in the government email services. This policy enforcement will increase the productivity and keep the official activities under control in an organization.

References:

http://articles.economictimes.indiatimes.com/2015-02-28/news/59612813_1_e-mail-policy-gmail-and-yahoo-narendra-modi-governmento

http://timesofindia.indiatimes.com/tech/tech-news/Gmail-banned-in-government-offices/articleshow/46407967.cms

http://www.techworm.net/2015/03/india-bans-gmail-yahoo-live.html

Decline in Coffee Export

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

D.Kalyani, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur


India, world’s sixth largest exporter of Coffee has seen a 27 percent decline in coffee export due to turbulent global pricing and supplies of older coffee crops. According to the Coffee Board of India, in the month of January 18,475 tons of coffee has been sold to other countries while last year it was around 25,355 tons for the same period [Economics Times, 09-02-2015]. India’s overall coffee production is estimated to be reasonably good at 3.31 lakh tons this year as against 3.04 lakh tons last year, according to Coffee Board of India [India Infoline News Service, 10-02-2015]. In January this year, the major importers of coffee from India were Italy (3,785 tons), followed by Turkey (1,645 tons), Germany (1,460 tons) and Ukraine (999 tons).

Though there is an increase in the export of instant coffee from 2,182 tons to 5,328 tons, there is a significant decline in the exports of Arabica and Robusta by 47% and 30.5% respectively for the same period.

One of the reasons behind the drop in coffee exports is the volatility in the coffee prices in the past two months due to production concerns in Brazil. This volatility has made the traders cautious. Another reason behind the drop is the depleting supply of old crops in the domestic market. The farmers are also reluctant to release the new crops as they are worried about the slow paced movement in the price of this commodity.

According to officials, farmers are waiting for good prices to sell their new crop in the market. This situation may lead to shortage of supply of coffee at domestic front as well as overseas. Green Coffee (Arabica) can be stored for almost a year but when it is stored for a prolonged time its quality decreases distinctively. So, the cost of storing the beans for a long period might increase. Thus, huge storage costs might affect the price of coffee adversely in the long run.

References:

http://economictimes.indiatimes.com/industry/cons-products/food/coffee-exports-drop-by-27-per-cent-in-january-on-sluggish-prices/articleshow/46173552.cms

http://www.indiainfoline.com/article/news-top-story/india-s-instant-coffee-exports-at-5-328-tons-in-jan-115021000117_1.html

http://www.reuters.com/article/2015/02/04/india-coffee-exports-idUSL4N0VE3BF20150204

From a startup to Market Leader

The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

D. Kalyani, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur
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Rocket Internet backed startup, FoodPanda has acquired its rival JustEat in India. Apart from India, this online food ordering platform has bought six food delivery startups in Asia. It bought companies in Malaysia, Singapore, Philippines, Pakistan, Hong Kong and Thailand. According to the sources of Business Standard [February 07, 2015], it could be around $500 million, although the companies didn’t disclose the value of deal. With these acquisitions, Rocket Internet now has food delivery business in 39 countries.

With this deal, JustEat has received minority holding in the FoodPanda. FoodPanda India will take charge of the operations of JustEat India, keeping it as a separate brand and later look for merger. Post this inclusion, Foodpanda has 250 employees in India. In November, 2014 FoodPanda also acquired TastyKhana which gave returns of around $15-$25 million.

With all these possessions, FoodPanda has become market leader of South Asia in online food delivery sector. It has surpassed its rival Zomato which also provides the platform to order food online, with 30,000 restaurants in 39 countries. FoodPanda will definitely benefit if the food delivery business continues with its exponential growth. With the approach of Internet business model, Rocket Internet has significant enhancements in their offering and services, which will attract investors to invest in startups to transform them into leading online entities.

References:

http://www.business-standard.com/article/companies/foodpanda-in-acquires-just-eat-india-115020600730_1.html

http://economictimes.indiatimes.com/news/emerging-businesses/startups/foodpanda-gobbles-up-rival-justeat-india-combined-entity-to-have-250-employees-in-india/articleshow/46151647.cms

Android – security issues on older versions

 

Android – security issues on older versions

The following article is my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.

D. Kalyani, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur

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On 13th Jan, 2015 BBC News channel came up with the story that Google has stopped providing the security updates for the older version of the smartphones having android operating system. Around 60% of all android users having Android 4.3 or older are exposed to the risk. They have also mentioned- “The shift was brought to light by security experts who found vulnerabilities in the WebView component of Android 4.3 aka Jelly Bean. WebView is used to display webpages on an Android device”. On 24th Jan, 2015 NDTV showed news coverage on Google’s response over worldwide security concerns – “the recently reported WebView security flaw that affects devices running Android 4.3 Jelly Bean and older versions, a flaw that potentially puts over 900 million users at risk. The statement is essentially a follow-up to the Android security team’s earlier response that it is up to OEMs to address the issue, and that the company has already addressed the issue with the release of Android 4.4 KitKat and Android 5.0 Lollipop”.

 

Because of the company’s decision, millions of people who are using android phones and tablets can be easily attacked by hackers. Though Andrian Ludwig – Android Security Officer recommended people having android 4.3 or older version phones, to use chrome or Mozilla firefox browsers to mitigate the risk; but still the users continue to be under threat.

 

References:

http://www.bbc.com/news/technology-30795253

http://gadgets.ndtv.com/mobiles/news/google-responds-to-concerns-over-widespread-android-webview-vulnerability-653232

http://www.cnet.com/news/google-leaves-most-android-users-exposed-to-hackers/