Role of an Independent Director.

An Independent Director by virtue of his independence shall add value to the company by his contribution in terms of Good governance in complying with statutory regualtions, provide leadership for the company in the growth , inclucate and review ethical business practices and thinking, be responsible to the environment and society, and to uphold the interest of the shareholders.

Dhakshina Moorthy, K M

Microsoft Fraud on India.

Europe :- Microsoft was fined $612 million and ordered to come up with a version of Windows that doesn't include its media player under a penalty in Europe for monopolist trade practices.


USA :- Microsoft Pays IBM $775 Million to Settle Antitrust Claims. This is for the discriminatory pricing and overcharge claims that were highlighted in the findings in the U.S. antitrust case.


South Korea :- South Korea's antitrust watchdog fined Microsoft Corp. $32 million for alleged unfair business practices and ordered it to take corrective measures such as separating certain software from Windows and selling the software of competitors along with it.
"The Korea Fair Trade Commission found such tying practices liable because they constitute abuse of market dominant position and unfair trade practices under monopoly regulations and the Fair Trade Act," Kang Chul-kyu, the commission's chairman, told reporters.


World over Microsoft has been abusing its size and power to commit fraud (read : Unfair trade practice as mentioned) in its business. They undertake to seek as many new possible ways and means of conducting unethical business. The world over nations have declared Microsoft as bad business company.

Today, 08/12/2005 we see Bill Gates shaking hands with Indian Ministers and declaring USD 1.7 Billion investment in India during the next 4 years including some bit of donations to health programs. Lot of Applause from both the rulers and the media glorifying his action.

Little do they realise, that the said investment is by way of his own software including Operating systems, office suites, and others that don't cost anything to make a million copies. The so called investment is only notional and does not incur any real expenditure but for the copying charges.

Secondly Gates has fully understood the cheap source of manpower for writing his programmes is only from India in the future. He is planning to educate indians so that they will be useful to his company later. So Selfish as that.

More to come.

Dhakshina Moorthy, K M

Why buy SBI shares in the market instead of ICICI Bank public issue.

[1] As on Sept 2005 , the price to earning ratio or PE for State Bank of India's share is 9.80 and that of ICICI Bank is 18.20

The ICICI share market price is almost twice that of what it should have been compared to SBI earnings on earnings. The price should have been around Rs 290 per share and not Rs 544 per share trading now or the public issue price band of 505 - 550.

[2] The Price to book value ratio or PBV for SBI is 1.80 where as it is 2.90 for ICICI Bank. It is almost 40% overheated than SBI. The Share price should have been around 340 and not the dizzy 544.
It makes more sense to buy SBI shares even at the present levels of 910 per share than to buy ICICI public issue.

[3] What more , it is understood that some senior managers of ICICI Bank had even offloaded their holding even months before the public issue.

ICICI public issue could be a scam coverup.

Dhakshina Moorthy, K M

What ICICI Bank is trying to do?

ICICI Bank's Public issue opened today 01/12/2005. There were applications only for 43% of the total value. Other issues recently completed book building with in couple of hours of their opening . Classic example being ONGC issue. ICICI is trading at Rs 540 today. The offer is 505 to 550. There is hardly any scope for any gain on opening up of new shares for sale. You can as well pick shares in the market at Rs 10 less . No bothering of any allotment or not. You get confirmed stock. This may well turn out to be a big bouncer in the market in a few weeks time. There is no incentive to apply for the public issue. Ridiculous. I will not be surprised if the prices slide to 400 levels in a years time.

By the way what is ICICI going to do with these funds. Just to bring in Tier I capital - to fulfill capital adequacy norms of RBI. Nothing more. Targeting to grow like State Bank of India is foolish. SBI took more than a century to what it is today. Its strengths are totally different. ICICI can never match SBI even after a 100 years.

Forex Dilemma - 3.

Today 01/12/2005, The aluminium prices have been increased by about Rs 6000 per tonne. Reason - to par with the global prices of aluminium. This will not affect the international buyer as he buys in US Dollar. But the effect is on the indian customer who has to shell out more because the USD is appreciating against the rupee. The prices of zinc, along with gold and silver have followed suit. The prices of metals and others are increasing not because of local cost influences but because of appreciating USD. Inflation is growing rapidly because of the increases. There is deafening silence among the authorities to control the depreciation of the rupee.