Monday, February 13, 2017

VOX POPULI

by

S Kamat
as
Aam Admi

Issue: 188            Date:  13.02.2017

 
Contents:

1.      Narayanmurthy's Pet Pieve?
2.      Shutting Down Liquor Outlets 500 Meters Near Highways
3.      Narendra Modi Yet Again Barking Up The Wrong Tree

Narayanmurthy's Pet Pieve?

The upcoming spat between Narayanmurthy and the other original promoters of Infosys since not associated with the Co. is throwing up shades of the Ratan Tata - Mistry spat in the Tata group. The idea seems to be that if Ratan Tata got his way why should we not try the same at Infosys with Narayanmurthy leading the pack against the present CEO, Sikka and Charman, Seshashayee. This is again the classic case of backseat driving with the original founders wishing that they had the steering wheel in their hands still though their public statements would be exactly the opposite. Narayanmurthy  and his fellow brethren in this initiative should understand that they have handed over the Co. to professionals and there can be no scope to now sit on the sidelines and carp about the fine details, clothing themselves with holy statements about shareholder value and corporate responsibility. Taking potshots again at one or the other individual managing Infosys now and orchestrating comments from likely new appointees to replace the targeted individuals is showing a complete lack of responsibility and rank bad practice of management however noble the objectives of the founders may sound. There is another issue here that the Tata group is an almost a century and half old and has the track record of that period to support them and thus obtain public and/or shareholder support while in comparison Infosys has had a much smaller span of time to cultivate the same image and therefore may not be able to garner much public or shareholder backing in Narayanmurthy's present pieve. There is no doubt that Infosys has been an achiever in the Indian IT sector and has been commended for the values it upholds in terms of corporate governance and generating shareholder value. But then one must go back to the early 1980's when Indian IT was in its infancy and Cos. like Infosys who started with hardware manufacturing also struggled with prevailing conditions of rules, regulations and government bureaucracy and cut corners on following these regulations like that of excise, the income tax exemptions for the IT industry and the implementation of the STP (Software Technology Parks) policy. Also there has been a long standing comment that the amount of handholding and support that Indian IT industry got from successive governments at the Centre through the 80's and until now, if it had been made available to any other sector of Indian industry they would have achieved the same level of success and fame around the world. Thus in this context the awards and other accolades that Narayanmurthy claims that Infosys has got, one can take with a pinch of salt since many awards as we know can be bought. In the same manner the interview that Narayanmurthy gave to one of the leading financial papers on this matter seems to be bought and planted with the sole objective to make the founders look sacred and paint the present management black. Narayanmurthy needs to recognise that the IT business worldwide has changed with the developing worldwide scenarios and Infosys' present management has to deal with these matters on an ongoing basis and show the promised results over a period of time. Thus to freeze frame the accusations to one or the other issue or incident and to draw alarmist conclusions from that will only boomerang on the founders who are advancing in age and it is natural that people may draw conclusions that are otherwise on the state of the minds of the founders. It is sad to see that inspite of Narayanmurthy's high sounding words he is unable to sever his links with Infosys after publicly handing it over and stoops to define what Sikka should do in having regular meetings with a dozen or more old hands of the Co. instead of doing the job that he is paid for and that is to run Infosys. 


Shutting Down Liquor Outlets 500 Meters Near Highways

Sometimes the Supreme Court in matters of common knowledge seems to be a little deficient while on aspects of jurisprudence one would give them top marks. This comment relates to the recent judgement that bars and liquor shops within 500 meters of highways should be shut down. The objective of the judgment though laudable that drunk drivers cause accidents is at variance with the facts on the ground wherein the court should have known that across India many of the highways go through small towns and even upcoming cities. This is more so in Goa where most of the population lives on the two sides of the NH17 which more or less bisects the State and you have a 'Bar & Rest' almost every 100 meters of the 120 KM NH17 traverse through the State. Where it goes through or near the big towns like Madgaon many liquor vends, bars and restaurants serving liquor that have been there for generations would get affected by the Supreme Court judgment. Thus the judges should have taken cognizance that across India not all are open highways and therefore any notice to close down these bars and liquor vends will affect the livelihood of lakhs of people. Another point to be noted here is that for a truck driver or for that matter any vehicle driver who is a habitual drinker and/or an alcoholic the 500 meters ban is not going to make any difference since they are known to drive tens of kilometers to find a liquor shop that is open at the dead of night. Therefore it is best that the Supreme Court reviews this judgment, the sooner, the better.


Narendra Modi Yet Again Barking Up The Wrong Tree

Someone must have put in Narendra Modi's ears mid-2016 that the IT Dept. officials are not putting in the proper amount of work and are in fact slackening which may be far from what the reality was. That is why he brought in the demonetisation on Nov 8th, 2016 apart from many other weighty reasons which brought the IT Dept. a huge amount of workload. Initially it was reported that the IT Dept. has sent in 18 Lakh notices to individuals and entities whose deposits post 10th Nov 2016 to 31st Dec 2016 do not match their IT returns and are in excess of Rs. 5 Lakhs. That truth on the number of cases has also changed now with the IT Dept. stating that they are pursuing 1 crore cases. This is the actual number of cases thrown up by the data analytics tools used by the IT Dept. So the IT Dept. has another 82 Lakhs cases to go. With 18 Lakh cases the IT Dept. would have been snowed under and with the 1 crore cases it is like being hit with an avalanche or a tsunami. The truth regarding the value of deposits has also changed from Rs. 2 Lakhs initially to Rs. 5 Lakhs in the middle and now finally Rs. 2.5 Lakhs.  Narendra Modi and the BJP unfortunately keeps playing with the truth. When questioned, they would claim that the latest truth is the 'better' truth. Little do they realise that there is only one truth which is infallible and non-negotiable. The average Indian is gleeful that the IT Dept. is swamped with cases. What the Indian psyche does which the IT Dept. is fully aware of is that it gambles in the good old ‘jugaad’ way that their file or case will never be picked up by the IT Dept. Until the unlikely event moment arrives of their file or case getting picked, they deal with it in an attitude of ‘dekha jayega’ or ‘we will cross that bridge when he come to it’ – hoping against hope that the bridge never comes on their horizon. The other thing is that these 1 crore cases are supposed to involve Rs. 10 Lakh crores which is rather close to the value of the demonetised currency on Nov 8th, 2016. Thus with some conviction one can say that maybe the IT Dept. and the government is yet again barking up the wrong tree, like when all the demonetised currency came back to the banks by 31st Dec 2016, and they will find that most of these are legitimate deposits within the existing framework of IT rules and end up blaming the data analytics tools saying that it is in cahoots with the black money mafia conniving to make fools of the IT Dept. and trying to get at Narendra Modi. 

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