Hey ragamuffin

His eyes twinkled with an ironic amalgamation of controlled grief and soaring hope as he stared expectedly at me through the vehicle’s window. His hair disheveled and coated with a paint of dirt danced in harmony with the faint breeze. He seemed oblivious to his leaking nose as drops of mucus made their way steadily into his mouth. He managed a weak smile, and mumbled a few words, but they were dwarfed by the din of the traffic waiting expectantly for the signal to turn green. It surprised me that this little kid could challenge that hellish cold wearing nothing but a few rags on his weak body. He pretended to clean my windshield as he continued staring at me. I tried avoiding his gaze, but every word from his mouth seemed to echo in my head. “saab, ek rupaiya do, bhagwaan aapka bhala karega. subah se kuch nahin khaya.” Not able to contain myself any longer, I turned to look for my wallet. But before I could hand over the 5 rupee coin to him, a traffic policeman came running from nowhere threatening him with his baton. With a loud mischievous laugh, the little kid ran away, making ungentlemanly gestures at the cop and shouting expletives. The signal turned green, and I drove away.

Hey ragamuffin, live for this day,
For tomorrow holds more misery for you,
Another day of dismissal and rejection,
That you’ll not want to live through.

Hey ragamuffin, don’t sleep this night,
For the morning brings more insanity,
You’ll wake up hungry, with no food in sight,
And you’ll again not see any humanity.

Corporate governance in India

Satyam row: where was corporate governance?

To quote an excerpt from the article,

“If the senior management was kept in the dark, then officials at Satyam should have at least realized that questions would be asked about an IT company buying a real estate company, especially if they are owned by blood relatives.”

I’ve had the good fortune to know and interact with several board members, executive or otherwise, in some of the family owned Indian companies. While this article expresses a certain disgust at the lack of corporate governance, I’m sure it surprises no one that this has been the trend with the contemporary Indian industry for quite some time. There have been considerable cases of public listed companies making transactions such as these without shareholder knowledge or involvement.

Take the typical public listed company in India which is controlled by a business family (promoters) by way of a majority stake ownership. The non-executive board members or directors are specifically responsible for (a) constructively challenging and contributing to the company’s vision and the strategy adopted to realize this vision, and (b) scrutinize the performance of the management in the execution of the goals and milestones agreed to by them. Quite literally, the non-executive board members are custodians of the governance process in the organization and answerable to the shareholders.

Typically, these individuals are veterans in their fields, with the substantial experience and expertise essential to provide guidance to the management and keep it in check at the same time. However, in India, these individuals tend to have strong links to the controlling business family, either through direct financial dealings or indirect. This, quite obviously, is a conflict of interest. As a consequence, there is very little opposition to the decisions made by the management (read promoter) that seem to have no interest in advancing or contributing to the company’s vision.

So the next question is what is gained through decisions like these? Promoters use this obvious lack of corporate governance in financing their other business interests and diversifying their holdings without needing to put up their own personal capital. The risk, to a large extent is mitigated, since it is now shared by all the stakeholders of the original company. One might argue that the stakeholders benefit from the upside if the company that is being invested in turns out to be a good decision. This point, of course, is debatable, since the risk assumed often outweighs any business reasoning for the investment.

Another interesting way of abusing this lack of corporate governance is funneling capital to another company majority owned by the promoter by putting up the assets of a company as collateral for a loan. To be more specific, promoter X owns majority stake in two companies, A and B. Company A is short of working capital, and is finding it difficult to raise capital based on its credit rating. Promoter X then uses company B to take a loan against its assets under the guise of an expansion, and channels this money to company B. The question then arises is how is this not caught by the auditors when then they scrutinize the balance sheets and income statements of the companies. The short answer is the conflict of interest of auditors too in this whole process.

Corporate governance is, put simply, considerably debilitated in India by the conflicts of interest between all the parties responsible for it. The way to move forward – have strong regulators and shareholder activist organizations that bring these players to task. Too unrealistic, you ask?

With non-participation, comes non-judgment

Balaram, Krishna’s brother had refused to participate in the Mahabharata, the epic war between the Kauravas and the Pandavas. The war saw many instances of deviation from the ethical rules of engagement embraced by warriors of that period. Among them, was the notorios slaying of Duryodhan, the heir to the Kaurava dynasty by Bheem, the Pandava who was younger only to Yudhishtir.

“With the luxury of your non-participation, comes the loss of your right to judge.”

These profound words were uttered by Krishna to his brother Balaram, when Balaram raised exception to his use of deceit in orchestrating Duryodhan’s slaying by Bheem.

As Indians, we all are witness to the alarming incompetence and total apathy of our politicians regularly on display in our great democracy. The recent terrorist attacks on Mumbai have underscored the ineffectiveness of our political system in dealing with crises of any kind, be it one of national security or national pride. We all seethe in fury as think about these sub-humans pretending to be our leaders, yet we fail to realize that these individuals symbolize the degeneration that has engulfed us all, not just the select few ruling this nation.

Today, you and I don’t feel enough, or even at all, for that 5 year old boy barely clothed in rags begging at the traffic signal. Do we even think about what he will grow up thinking, when every single day he is being kicked at, spitted on, and constantly subjected to a barrage of expletives? What will this kid’s mental makeup be when he’s twenty years old? What will his perception of this world be? And then we complain about ruthless twenty year olds walking with AK56s through the city massacaring “innocent” people.

Do we think twice about paying the traffic policeman twenty rupees to avoid getting a ticket? Or think twice about sounding our horn in a residential area that clearly has a no horn sign? Do we even know whether there are any negative points awarded by a traffic violation in India? You and I fuel this underground economy that subsists on bribery at every level.

We have grown up abhorring some of the pretenders being holy men, and have always looked at any self-proclaimed individual with certain skepticism. Yet, when it comes to any “sadhu” or “sadhvi” involved in terrorism, we readily surmise that our establishment is anti-hindu and is involved in appeasement of minorities, never for once realizing that there might be an element of truth and evidence in those allegations.

We claim to be hindus and muslims, yet we have never bothered to know what they stand for, what our holy books proclaim. We sing praises of capitalism and shun socialism, but when was the last time you read about what these philisophies propounded?

You and I don’t participate in this society called India. Yet we reserve our right to judge what it has become.

Of heroes and absolutes

“My name is Maximus Decimus Meridius, commander of the Armies of the North, General of the Felix Legions, loyal servant to the true emperor, Marcus Aurelius. Father to a murdered son, husband to a murdered wife. And I will have my vengeance, in this life or the next.”

Gladiator – The story of the Roman general who became a slave, who became a gladiator – a gladiator who defied the emperor. A story accentuating that aspect of man’s eternal morality that justifies victory of good over the evil, of the moral over the immoral. A story depicting the invincibility of man’s courage, motivation, and ambition over seemingly insurmountable obstacles. A story of one man’s greatness evolving out of the desire to be reunited with his murdered family, and see to their commemoration. A story of a society turned rancid by petty ambitions, scheming politics, excessive hedonism and necrophilia. A story of a true hero’s fight for the upholding of his principles, and pursuit of that moment of finality that justifies his immortality forever.

Gladiator – The story of a hero. We all love heroes because of their abilities to astound, fascinate, stupify our faculties of reasoning by their acts of extreme consequences fuelled by their pereception of society’s founding principles and morality. We love heroes because they ignite our inherent passion and desire to oppose and struggle against any form of establishment and conformance. We love heroes because their singular devotion to their ideals, because of their knowledge and confidence in a definite path to the achievement of the ideals, and because of their often successful ventures in uniting with these ideals. We love heroes because while they’re everything we are not, they are everything we aspire to be.

Most of our heroes, or villians for that matter, have been propounders of theories and ideas gearing towards extremism. Interpreting extremism as hot blooded violence in this context would be inaccurate, for what is meant here is extremism of ideas, be they of peace, violence, romance, happiness and such. Ever heard of a hero who compromised on his ideals, his principles and yet lived up to the concept of heroism as defined by society? The hero, of our society has ideas dealing with absolutes, ideas that are either black or white. And his heroism, in our eyes, is qualified, justified by his abilities to translate those absolutes into actions.

So we have heroes leading armies of a handful soldiers against enemy armies numbering in thousands. We have heroes who challenge dictators, notwithstanding the fact that in a dictatorship, the dictator is the absolute. We have heroes who find their ways through the most complicated of mazes, even when they have no eyesight. Our heroes are absolutes, or people who challenge absolutes. As someone once said, heroes are ordinary people who behave ordinarily in extraordinary circumstances…

“Ultimately, we’re all dead men. Sadly, we cannot choose how but, what we can decide is how we meet that end, in order that we are remembered, as men. “

Follow

Get every new post delivered to your Inbox.