Securities Premium account

I was reading this article about how Hindalco is hiding its loss due to acquisition of Novelis, how Tata hid its development charges for Indica using an innovative Securities Premium account.

Basically the asset is transferred to this account and depreciated without effecting the Profit and loss accounts. What is worse is that since Indian courts allow this scheme, more and more companies are taking the route and hiding the true shape of their balance sheet from the public.



1. How Do Crazy People Go Through The Forest ?
They Take The Psycho Path

2. How Do You Get Holy Water?
You Boil The Hell Out Of It (I love that one!)

3. What Do Fish Say When They Hit a Concrete Wall?

4. What Do Eskimos Get From Sitting On The Ice too Long?

5. What Do You Call a Boomerang That Doesn’t work?
A Stick

6. What Do You Call Cheese That Isn’t Yours?
Nacho Cheese.

7. What Do You Call Santa’s Helpers?
a Subordinate Clauses.

8. What Do You Get From a Pampered Cow?
a Spoiled Milk.

9. What Do You Get When You Cross a Snowman With a Vampire?
a Frostbite.

10. What Lies At The Bottom Of The Ocean And Twitches?
A Nervous Wreck.

11. Where Do You Find a Dog With No Legs?
Right Where You Left Him.

12. Why Do Gorillas Have Big Nostrils?
Because They Have Big Fingers .

13. Why Don’t Blind People Like To Sky Dive?
Because It Scares The Dog.

14. What Is The Difference Between a Harley And a Hoover?
A The Location Of The Dirt Bag.


India’s secret N-submarine

i was reading the press release by A. K. Antony, India’s Defence Minister:
“India’s secret Nuclear submarine project is near completion”
My views WTF:
1. If it was a secret, then why on earth are you revealing its existence.
2. What benefit does India has to gain by acknowledging that it does not have a nuclear submarine. An incomplete submarine (which is scheduled to be completed by 2012) is equivalent to no submarine for next 4 years. So what does one mean by NEAR COMPLETION?
3. If one trusts DRDO’s capabilities then definitely this submarine would be 20 years behind schedule, would be costing 10 times more than estimate and the submarine would be so rickety that Indian navy would not like to risk manning those submarines.


more gentle thoughts

The real art of conversation is not only to say the right thing at the right time, but also to leave unsaid the wrong thing at the tempting moment.

The older you get, the tougher it is to lose weight, because by then your body and your fat have gotten to be really good friends .

The easiest way to find something lost around the house is to buy a replacement .

He who hesitates is probably right.

Did you ever notice: The Roman Numerals for forty (40) are ‘ XL.’

If you think there is good in everybody, you haven’t met everybody .

If you can smile when things go wrong, you have someone in mind to blame.

Did you ever notice: When you put the 2 words ‘ The ‘ and ‘ IRS ‘ together it spells ‘ Theirs ?’

Aging: Eventually you will reach a point when you stop lying about your age and start bragging about it.

The older we get, the fewer things seem worth waiting in line for.

Some people try to turn back their odometers. Not me, I want people to know ‘why’ I look this way. I’ve traveled a long way and some of the roads weren’t paved.

You know you are getting old when everything either dries up or leaks.

One of the many things no one tells you about aging is that it is such a nice change from being young.

Ah, being young is beautiful, but being old is comfortable.

First you forget names, then you forget faces. Then you forget to pull up your zipper. It’s worse when you forget to pull it down..

Long ago when men cursed and beat the ground with sticks, it was called witchcraft. Today, it’s called golf.


India Borrows from World Bank

I was reading this news about india borrowing an additional $518 million from World Bank. Now my question is:
1. Eternal debt has already led to Pakistani currency being rated as a junk currency. Indian currency has a BB rating and any additional debt would only force Moody’s or S&P to further lower it.

2. India already has a huge forex reserve (251 USD) why does india not use it? Anyways that cash is lying idle and not earning as much interest.

If India wants to play a bigger part in the global economy, it should help World bank and other international agencies help countries suffering from stagflation, and not borrow from this pool.