My Favorite Quote


"GO AS FAR AS YOU CAN SEE. WHEN YOU GO THERE YOU WILL SEE FURTHER"

Wednesday, January 7, 2009

Ramalinga Raju's letter to Board


Here is the text of letter written by outgoing Satyam Chairman Ramalinga Raju...

To the Board of Directors,
Satyam Computer Services Ltd. Dear Board Members, It is with deep regret, at tremendous burden that I am carrying on my conscience, that I would like to bring the following facts to your notice:

1. The Balance Sheet carries as of September 30, 2008
* Inflated (non-existent) cash and bank balances of Rs.5,040 crore (as against Rs. 5361 crore reflected in the books)
* An accrued interest of Rs. 376 crore which is non-existent
* An understated liability of Rs. 1,230 crore on account of funds arranged by me
* An over stated debtors position of Rs. 490 crore (as against Rs. 2651 [cr.] reflected in the books)
2. For the September quarter (02) we reported a revenue of Rs.2,700 crore and an operating margin of Rs. 649 crore (24% Of revenues) as against the actual revenues of Rs. 2,112 crore and an actual operating margin of Rs. 61 Crore ( 3% of revenues). This has resulted in artificial, cash and bank balances going up by Rs. 588 crore in Q2 alone.

The gap in the Balance Sheet has arisen purely on account of inflated profits over a period of last several years (limited only to Satyam standalone, books of subsidiaries reflecting true performance). What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years. It has attained unmanageable proportions as the size of company operations grew significantly (annualized revenue run rate of Rs. 11,276 crore in the September quarter, 2008 and official reserves of Rs. 8,392 crore). The differential in the real profits and the one reflected in the books was further accentuated by the fact that the company had to carry additional resources and assets to justify higher level of operations — thereby significantly increasing the costs.

Every attempt made to eliminate the gap failed. As the promoters held a small percentage of equity, the concern was that poor performance would result in a take-over; thereby exposing the gap. It was like riding a tiger, not knowing how to get off without being eaten.

The aborted Maytas acquisition deal was the last attempt to fill the fictitious assets with real ones. Maytas’ investors were convinced that this is a good divestment opportunity and a strategic fit. Once Satyam’s problem was solved, it was hoped that Maytas’ payments can be delayed. But that was not to be. What followed in the last several days is common knowledge.

I would like the Board to know:

1. That neither myself, nor the Managing Director (including our spouses) sold any shares in the last eight years — excepting for a small proportion declared and sold for philanthropic purposes.

2. That in the last two years a net amount of Rs. 1,230 crore was arranged to Satyam (not reflected in the books of Satyam) to keep the operations going by resorting to pledging all the promoter shares and raising funds from known sources by giving all kinds of assurances (Statement enclosed, only to the members of the board). Significant dividend payments, acquisitions, capital expenditure to provide for growth did not help matters. Every attempt was made to keep the wheel moving and to ensure prompt payment of salaries to the associates. The last straw was the selling of most of the pledged share[s] by the lenders on account of margin triggers.

3. That neither me, nor the Managing Director took even one rupee/dollar from the company and have not benefited in financial terms on account of the inflated results.

4. None of the board members, past or present, had any knowledge of the situation in which the company is placed. Even business leaders and senior executives in the company, such as, Ram Mynampati, Subu D, T.R. Anand, Keshab Panda, Virender Agarwal, A.S. Murthy, Han T, SV Krishnan, Vijay Prasad, Manish Mehta, Murali V. Sriram Papani, Kavale, Joe Lagioia, Ravindra Penumetsa, Jayaraman and Prabhakar Gupta are unaware of the real situation as against the books of accounts. None of my or Managing Director’s immediate or extended family members has any idea about these issues.

Having put these facts before you, I leave it to the wisdom of the board to take the matters forward. However, I am also taking the liberty to recommend the following steps:

1. A Task Force has been formed in the last few days to address the situation arising but of the failed Maytas acquisition attempt. This consists of some of the most accomplished leaders of Satyam; Subu D, T.R. Anand, Keshab Panda and Virender Agarwal , representing business functions; and A.S. Murthy, Han T and Murali V representing support functions. I suggest that Ram Mynampàti be made the Chairman of this Task Force to immediately address some of the operational matters on hand. Ram can also act as an interim CEO reporting to the board.

2. Merrill Lynch can be entrusted with the task of quickly exploring some Merger opportunities.

3. You may have a testatement of accounts’ prepared by the auditors in light of the facts that.I have placed before you.

I have promoted and have been associated with Satyam for well over twenty years now I have seen it grow from few people to 53,000 people, with 185 Fortune 500 companies as customers and operations in 66 countries. Satyam has established an excellent leadership and competency base at all levels. I sincerely apologize to all Satyamites and stakeholders, who have made Satyam a special organization, for the current situation. I am confident they will stand by the company in this hour of crisis.

In light of the above, I fervently appeal to the board to hold together to take some important steps Mr T R Prasad is well placed to mobilize support from the government at this crucial time. With the hope that members of the Task Force arid the financial advisor, Merrill Lynch (now Bank of America) will stand by the company at this crucial hour, I am marking copies of this statement to them as well.

Under the circumstances, I am tendering my resignation as the chairman of Satyam and shall continue in this position only till such time the current board is expanded. My continuance is just to ensure enhancement of the board over the next several days or as early as possible.

I am now prepared to subject myself to the laws of the land and face consequences thereof.

(B. Ramalinga Raju)
Copies marked to:
1. Chairman SEBI
2. Stock Exchanges

(Source: www.moneycontrol.com)

Tuesday, January 6, 2009

Barack Obama Quotes


You know, there's a lot of talk in this country about the federal deficit. But I think we should talk more about our empathy deficit - the ability to put ourselves in someone else's shoes; to see the world through the eyes of those who are different from us - the child who's hungry, the steelworker who's been laid-off, the family who lost the entire life they built together when the storm came to town. When you think like this - when you choose to broaden your ambit of concern and empathize with the plight of others, whether they are close friends or distant strangers - it becomes harder not to act; harder not to help.

BARACK OBAMA, speech, Aug. 11, 2006

Focusing your life solely on making a buck shows a poverty of ambition. It asks too little of yourself. And it will leave you unfulfilled.

BARACK OBAMA, speech, Jul. 12, 2006

When people are judged by merit, not connections, then the best and brightest can lead the country, people will work hard, and the entire economy will grow - everyone will benefit and more resources will be available for all, not just select groups.

BARACK OBAMA, speech, Aug. 28, 2006

Faith doesn't mean that you don't have doubts.

BARACK OBAMA, speech, Jun. 28, 2006

Yes, our greatness as a nation has depended on individual initiative, on a belief in the free market. But it has also depended on our sense of mutual regard for each other, of mutual responsibility. The idea that everybody has a stake in the country, that we're all in it together and everybody's got a shot at opportunity. Americans know this. We know that government can't solve all our problems - and we don't want it to. But we also know that there are some things we can't do on our own. We know that there are some things we do better together.

BARACK OBAMA, speech, Aug. 7, 2006

Making your mark on the world is hard. If it were easy, everybody would do it. But it's not. It takes patience, it takes commitment, and it comes with plenty of failure along the way. The real test is not whether you avoid this failure, because you won't. it's whether you let it harden or shame you into inaction, or whether you learn from it; whether you choose to persevere.

BARACK OBAMA, speech, Jul. 12, 2006

If we aren't willing to pay a price for our values, then we should ask ourselves whether we truly believe in them at all.

BARACK OBAMA, The Audacity of Hope

The country is not as polarized as our politics would suggest.

BARACK OBAMA, interview, Oct. 27, 2006

The evangelists' success points to a hunger for the product they are selling, a hunger that goes beyond any particular issue or cause. They need an assurance that somebody out there cares about them, is listening to them.

BARACK OBAMA, The Audacity of Hope

We need to steer clear of this poverty of ambition, where people want to drive fancy cars and wear nice clothes and live in nice apartments but don't want to work hard to accomplish these things. Everyone should try to realize their full potential.


BARACK OBAMA, Daily Southtown, Feb. 19, 2005

I believe in keeping guns out of our inner cities, and that our leaders must say so in the face of the gun manfuacturer's lobby. But I also believe that when a gangbanger shoots indiscriminately into a crowd because he feels someone disrespected him, we have a problem of morality. Not only do we need to punish that man for his crime, but we need to acknowledge that there's a hole in his heart, one that government programs alone may not be able to repair.

BARACK OBAMA, The Audacity of Hope

In a country of 300 million people, there is a certain degree of audacity required for anybody to say, "I'm the best person to lead this country."

BARACK OBAMA, Washington Post, Nov. 18, 2006

My parents shared not only an improbable love, they shared an abiding faith in the possibilities of this nation. They would give me an African name, Barack, or blessed, believing that in a tolerant America your name is no barrier to success. They imagined me going to the best schools in the land, even though they weren't rich, because in a generous America you don't have to be rich to achieve your potential.

BARACK OBAMA, speech at 2004 Democratic Convention

When we send our young men and women into harm's way, we have a solemn obligation not to fudge the numbers or shade the truth about why they're going, to care for their families while they're gone, to tend to the soldiers upon their return, and to never ever go to war without enough troops to win the war, secure the peace, and earn the respect of the world.

BARACK OBAMA, speech at 2004 Democratic Convention

A good compromise, a good piece of legislation, is like a good sentence; or a good piece of music. Everybody can recognize it. They say, "Huh. It works. It makes sense."

BARACK OBAMA, The New Yorker, May 31, 2004

With the changing economy, no one has lifetime employment. But community colleges provide lifetime employability.


BARACK OBAMA, Daily Southtown, Feb. 19, 2005

People are whupped. I'm whupped. My wife is whupped. Unless it's your job to be curious, who really has the time to sit and ask questions and explore issues?


BARACK OBAMA, The New Yorker, May 31, 2004

I cannot swallow whole the view of Lincoln as the Great Emancipator.

BARACK OBAMA, Time Magazine, Jun. 26, 2005

If you're walking down the right path and you're willing to keep walking, eventually you'll make progress.

BARACK OBAMA, Bloomington Pantagraph, Feb. 25, 2005

I am not opposed to all wars. I'm opposed to dumb wars.

BARACK OBAMA, The New Yorker, May 31, 2004

Of all the rocks upon which we build our lives, we are reminded today that family is the most important. And we are called to recognize and honor how critical every father is to that foundation. They are teachers and coaches. They are mentors and role models. They are examples of success and the men who constantly push us toward it. But if we are honest with ourselves, we'll admit that what too many fathers also are is missing – missing from too many lives and too many homes. They have abandoned their responsibilities, acting like boys instead of men. And the foundations of our families are weaker because of it.

BARACK OBAMA, speech, Jun. 15, 2008

I'll be a President who finally brings Democrats and Republicans together to make health care affordable for every single American. We will put a college education within reach of anyone who wants to go, and instead of just talking about how great our teachers are, we will reward them for their greatness, with more pay and with better support. And we will harness the ingenuity of farmers and scientists and entrepreneurs to free this nation from the tyranny of oil once and for all.

BARACK OBAMA, speech, Feb. 5, 2008

I have asserted a firm conviction rooted in my faith in God and my faith in the American people--that working together we can move beyond some of our old racial wounds, and that in fact we have no choice if we are to continue on the path of a more perfect union.

BARACK OBAMA, speech, Mar. 18, 2008

If those Republicans come at me with the same fear-mongering and swift-boating that they usually do, then I will take them head on. Because I believe the American people are tired of fear and tired of distractions and tired of diversions. We can make this election not about fear, but about the future. And that won't just be a Democratic victory; that will be an American victory.

BARACK OBAMA, speech Nov. 10, 2007

America, our work will not be easy. The challenges we face require tough choices, and Democrats as well as Republicans will need to cast off the worn-out ideas and politics of the past. For part of what has been lost these past eight years can't just be measured by lost wages or bigger trade deficits. What has also been lost is our sense of common purpose - our sense of higher purpose. And that's what we have to restore. We may not agree on abortion, but surely we can agree on reducing the number of unwanted pregnancies in this country. The reality of gun ownership may be different for hunters in rural Ohio than for those plagued by gang-violence in Cleveland, but don't tell me we can't uphold the Second Amendment while keeping AK-47s out of the hands of criminals. I know there are differences on same-sex marriage, but surely we can agree that our gay and lesbian brothers and sisters deserve to visit the person they love in the hospital and to live lives free of discrimination. Passions fly on immigration, but I don't know anyone who benefits when a mother is separated from her infant child or an employer undercuts American wages by hiring illegal workers. This too is part of America's promise - the promise of a democracy where we can find the strength and grace to bridge divides and unite in common effort.

BARACK OBAMA, DNC speech, Aug. 28, 2008

Life doesn't count for much unless you're willing to do your small part to leave our children – all of our children – a better world. Even if it's difficult. Even if the work seems great. Even if we don't get very far in our lifetime.

BARACK OBAMA, speech, Jun. 15, 2008

Our government should work for us, not against us. It should help us, not hurt us. It should ensure opportunity not just for those with the most money and influence, but for every American who's willing to work. That's the promise of America - the idea that we are responsible for ourselves, but that we also rise or fall as one nation; the fundamental belief that I am my brother's keeper; I am my sister's keeper.

BARACK OBAMA, DNC speech, Aug. 28, 2008

Nothing can stand in the way of the power of millions of voices calling for change.

BARACK OBAMA, speech, Jan. 8, 2008

We will remember that we are not as divided as our politics suggests; that we are one people; we are one nation and together, we will begin the next great chapter in the American story with three words that will ring from coast to coast, from sea to shining sea:-- Yes. We. Can.

BARACK OBAMA, speech, Jan. 8, 2008

I refuse to be lectured on national security by people who are responsible for the most disastrous set of foreign policy decisions in the recent history of the United States. The other side likes to use 9/11 as a political bludgeon. Well, let’s talk about 9/11. The people who were responsible for murdering 3,000 Americans on 9/11 have not been brought to justice. They are Osama bin Laden, al Qaeda and their sponsors – the Taliban. They were in Afghanistan. And yet George Bush and John McCain decided in 2002 that we should take our eye off of Afghanistan so that we could invade and occupy a country that had absolutely nothing to do with 9/11. The case for war in Iraq was so thin that George Bush and John McCain had to hype the threat of Saddam Hussein, and make false promises that we’d be greeted as liberators. They misled the American people, and took us into a misguided war. Here are the results of their policy. Osama bin Laden and his top leadership – the people who murdered 3000 Americans – have a safe-haven in northwest Pakistan, where they operate with such freedom of action that they can still put out hate-filled audiotapes to the outside world. That’s the result of the Bush-McCain approach to the war on terrorism.


BARACK OBAMA, speech, Jun. 18, 2008

We need not throw away 200 years of American jurisprudence while we fight terrorism. We need not choose between our most deeply held values, and keeping this nation safe.

BARACK OBAMA, speech, Jun. 18, 2008

we can reclaim the idea that here in this country, you can make it if you try. In the end, that's all most Americans are asking for. It's not a lot. You don't expect government to solve all your problems. You want to be self-reliant and independent. You want to be responsible for your own lives and take care of your own families. But what you do expect is a government that isn't run by the special interests. What you do expect is that if you're willing to work hard, you should be able to find a job that pays a decent wage, that you shouldn't go bankrupt when you get sick, that you should be able to send your children to college even if you're not rich, and that you should be able to retire with dignity and security.

BARACK OBAMA, speech, Aug. 2, 2008

As President, I'll invest in renewable energies like wind power, solar power, and the next generation of homegrown biofuels. That's how America is going to free itself from our dependence on foreign oil – not through short-term gimmicks, but through a real, long-term commitment to transform our energy sector.

BARACK OBAMA, speech, Jul. 31, 2008

You don't defeat a terrorist network that operates in eighty countries by occupying Iraq.

BARACK OBAMA, DNC speech, Aug. 28, 2008

The government can't solve every problem, but an enlightened government can make sure that people can work hard for their dreams and achieve them.

BARACK OBAMA, Ladies' Home Journal, Sep. 2008

When you start just focusing exclusively on trying to tear the other person down instead of what you are going to do on behalf of the American people to deal with this economy, then that's not serving Democrats, that's not serving Republicans, that's not serving anybody.

BARACK OBAMA, speech, Sep. 6, 2008

This country of ours has more wealth than any nation, but that's not what makes us rich. We have the most powerful military on Earth, but that's not what makes us strong. Our universities and our culture are the envy of the world, but that's not what keeps the world coming to our shores. Instead, it is that American spirit - that American promise - that pushes us forward even when the path is uncertain; that binds us together in spite of our differences; that makes us fix our eye not on what is seen, but what is unseen, that better place around the bend.

BARACK OBAMA, DNC speech, Aug. 28, 200

Friday, January 2, 2009

Lincoln's Failure and Successes

Below is one version of the so-called "Lincoln failures" list, shown in bold type. It's often used to inspire people to overcome life's difficulties with Lincoln as a model. Then look at the right column with other facts from Lincoln's pre-presidential life. History professor Lucas Morel compiled this comparison from the Chronology in Selected Speeches and Writings/Lincoln by Don E. Fehrenbacher, ed., 1992.
YEAR FAILURES or SETBACKS SUCCESSES
1832 Lost job
Defeated for state legislature
Elected company captain of Illinois militia in Black Hawk War
1833 Failed in business Appointed postmaster of New Salem, Illinois
Appointed deputy surveyor of Sangamon County
1834 Elected to Illinois state legislature
1835Sweetheart died
1836 Had nervous breakdown Re-elected to Illinois state legislature (running first in his district)
Received license to practice law in Illinois state courts
1837 Led Whig delegation in moving Illinois state capital from Vandalia to Springfield
Became law partner of John T. Stuart
1838 Defeated for Speaker Nominated for Illinois House Speaker by Whig caucus
Re-elected to Illinois House (running first in his district)
Served as Whig floor leader
1839 Chosen presidential elector by first Whig convention
Admitted to practice law in U.S. Circuit Court
1840 Argues first case before Illinois Supreme Court
Re-elected to Illinois state legislature
1841 Established new law practice with Stephen T. Logan
1842 Admitted to practice law in U.S. District Court
1843 Defeated for nomination for Congress
1844 Established own law practice with William H. Herndon as junior partner
1846 Elected to Congress
1848 Lost renomination (Chose not to run for Congress, abiding by rule of rotation among Whigs.)
1849 Rejected for land officer Admitted to practice law in U.S. Supreme Court
Declined appointment as secretary and then as governor of Oregon Territory
1854 Defeated for U.S. Senate Elected to Illinois state legislature (but declined seat to run for U.S. Senate)
1856 Defeated for nomination for Vice President
1858 Again defeated for U.S. Senate
1860 Elected President

Lincoln achieved the great feat of becoming the President after overcoming "failures for 11 times in his life". If he had quit without trying again when engulfed with failures, he wouldn't have become the President of America. No wonder "FAILURES ARE THE STEEPING STONE TO SUCCESS".