While third quarter results do not reflect it, the sector's reluctance to cut interest rates points towards either high NPAs or wrong strategies.

Are banks hiding something?

Business Standard

On January 13, Price Waterhouse, the independent auditor of Satyam withdrew its audit reports on financial statements issued by Satyam. Dismayed investors and general public are still debating on how an auditor can withdraw a report that was relied on by investors.

Too early to nail Satyam auditors

As the economic data for the fourth quarter of countries get released, the picture becomes steadily grimmer. The numbers for the US, released last week, showed a 3.8 per cent quarter-on-quarter decline, following a decline in the previous quarter. This was actually better than the general expectation of a 5 per cent decline, a difference explained by higher than anticipated inventory accumulation. This bodes ill for the next quarter, as companies cut production until inventories are drawn down.

Precipitous decline

The issue of whether or not input tax credits are available under the relevant provisions on service taxes paid on outward transportation has long been a contentious one under service tax law. The underlying provisions themselves have undergone changes over time, in order to limit the benefit to specific situations. However, a recent decision of the Tribunal appears to have the effect of allowing the benefit even to situations other than those covered above.

Input credits on transportation costs

The Satyam fiasco has brought to the fore the role and responsibility of independent directors on a company&rsquo;s board. The Securities and Exchange Board of India introduced the concept of &ldquo;independent directors&rdquo; in clause 49 of the listing agreement with a lot of expectations from them and active participation in the board proceedings. Sebi&rsquo;s initiative is based upon the recommendation of Ramesh Chandra Committee which drew heavily on the Sarbines-Oxley Act of USA and which came out in the wake of large scale financial failures in USA.

Role of independent directors under lens

At the annual World Economic Forum (WEF) meet at Davos, Commerce Minister, Kamal Nath expressed optimism that India will grow at 7-8 per cent during the current financial year and that India&rsquo;s recovery will be faster than the rest of the world. He was also upbeat about the growth prospects during next year at about the same 7-8 per cent.

Nath's optimism at Davos just wishful thinking

Why Pranab Mukherjee was chosen to present the interim budget instead of P Chidambaram is not clear.

A K Bhattacharya: Curious choice

The time is opportune for realty firms to switch over to building affordable houses.

M Govinda Rao: Combating slowdown - Realty rummage

I was speaking with R Balakrishnan of Centrum Finance, a long-time market watcher. He had two things to say of interest. One is that analysts have stopped commenting on the quality of accounts and management. And perhaps this is the wake-up call we&rsquo;ve been waiting for.

Govindraj Ethiraj: A dream run comes to an end

Credit in Latin, the embattled British Prime Minister Gordon Brown said at Davos, means &ldquo;belief&rdquo; and &ldquo;trust.&rdquo; Faced with a barrage of questions from a hostile domestic media at Davos on his alleged inability to manage the worst economic crisis and loss of &lsquo;trust&rsquo;, Brown offered some new wisdom. What the world is witnessing at this juncture, he said, is nothing but a new form of &ldquo;financial mercantilism.

D Ravi Kanth: Globalisation in retreat

India&rsquo;s patents office, or the Office of the Controller General of Patents, Designs and Trademarks to give its full title, was one of those dreary government departments, badly-equipped and poorly-staffed, its decrepit state of little interest to officialdom &mdash; or to the media &mdash; till January 1, 2005. That&rsquo;s when India introduced product patents on pharmaceuticals, food and chemicals under its World Trade Organization (WTO) obligations. Things had to change because the big boys of the global pharmaceutical and chemical industries were descending on this country to seek marketing rights and patent protection along with our home-grown drugs industry.

Latha Jishnu: The IAS grabs the patent office too

One of the unexpected consequences of the global financial crisis has been the rapid shift in the preferences of depositors from private and foreign banks towards public sector banks. If banks can have a liquidity problem, depositors seem to be saying, it is safer to be with a public sector bank.

Flight to 'safety'

The minimum support prices (MSP) of rabi crops, including wheat, have been hiked by wide margins yet again. Though the government has gone by the recommendations of the Commission for Agricultural Costs and Prices (CACP) &mdash; and not stepped them, as is often done in an election year &mdash; the hike is substantial enough to have noticeable implications for food management. The wheat MSP has been raised by Rs 80 a quintal, while that for pulses upped by Rs 130 to Rs 170 a quintal.

Food mountain coming up

There is a strong case for making greater use of monetary instruments at this juncture.

Ajay Dua: Making the stimulus package work

The Supreme Court asks the Law Commission to devise ways to hack forensic weed.

M J Antony: Cost of wasteful litigation

A five-year attempt to equip the country with a modern drug regulatory system which, among other things, addresses the problem of spurious and substandard drugs, has come to naught. A bill introduced in 2007 to comprehensively amend the Drugs and Cosmetics Act of 1940 is unlikely to be passed by the present Lok Sabha whose life is as good as over.

Subir Roy: Let a hundred spurious medicines thrive

There's little doubt the existing self-regulatory system isn't working but simply introducing new rules isn't going to help unless there is effective enforcement.

Debate: Do India's audit rules need to be overhauled?

Google, the online giant, appears to have mastered the art of marketing without issuing a single statement. Only the secrecy and magic surrounding Apple products can give it a fight. Take, for instance, the media buzz about the Google phone. The media, including blogs, went into overdrive for almost a year, trying to outdo each other with bits and pieces of the phone &mdash; including images.

Another googly from Google?

The trade data for December came as something of a relief. Even though exports declined over December 2007, they did so by a modest 1.1 per cent in dollar terms, which is quite a contrast to the 12 per cent and 10 per cent year-on-year declines seen during October and November, respectively. However, given the sharp depreciation of the rupee during the year, the rupee value of exports actually increased by a healthy 22 per cent over the year.

Trade stresses

A company I once worked in was acquired by a subsidiary of a company that was listed on the New York Stock Exchange (NYSE). As a result, we suddenly had to put in place systems and processes that were compliant with (a) those of the new parent and the parent&rsquo;s parent; and (b) the Sarbanes-Oxley Act (SOX).

Kanika Datta: Compliance is more than paperwork

While outplacement is a relatively new concept in India, it helps boost morale at the time of layoffs.

Shyamal Majumdar: Softening the job loss blow

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