The Hindu Business Line : Big Four to Big Three now?

The holiday season has come to an end for the four friends – Divya (a journalist), Jogin (a student), Mack (an American expat working in India) and Bidyut (an economics professor). But the wine from Christmas revelry continued to flow – much like the conversation – at Mack’s place.

Jogin: How was the visit home during Christmas

holidays, Mack?

Mack: Not too memorable, mate. Most of my

friends have lost jobs and others are expecting

to lose them pretty soon.

Bidyut: Almost half a million people lost jobs in the US

in December alone. That is a gloomy picture.

Divya: Not a very bright way to start 2009.

Jogin: Absolutely. And definitely not the way

Satyam investors would have liked to. I mean,

despite all the talk of the slump, the one shield

Indian economy could boast of was its IT and

ITeS companies. Now that can be safely trashed.

Mack: But several analysts have said India’s growth

story remains intact despite Satyam. That’s positive

news as far as FIIs are concerned.

Jogin: Well scams are nothing new to global investors.

I am sure they have seen worse. Enron, WorldCom and

now, Madoff.

Bidyut: But what about the sentiments of Indian

investors. Retail investors here do not put in money just

to make a quick buck. Some of them even have

retirement plans attached to the investments.

Divya: They will always worry now, who can be

trusted and who cannot.

Mack: I wonder where the auditors fit in this whole

mess. Of course, nothing can be said until

investigations are over, but I have a nagging feeling …

Divya: Some have called the scam India’s Enron.

That scam shoved Arthur Anderson into oblivion.

Mack: The Big Five accounting firms became

Big Four after that fiasco. Will Satyam make that

the Big Three now?

Divya: The only certainty now is uncertainty.

Jogin: Such a cliché, but you have captured

the thoughts of the moment. I am waiting with

bated breath to see what will come out of fiasco.

Bidyut: Some uncertainty should disappear soon

as IT companies will be disclosing results now.

Infosys will set the ball rolling on Tuesday.

Mack: All IT companies can be sure of excessive

scrutiny from all fronts.

Jogin: Will the results take the indices up?

Bidyut: I will not put my money on that. The US

market has not been too bright after job-loss data.

And with domestic sentiments down, Monday

may open weak.

Divya: But some bear movement, especially from

domestic institutional investors, cannot be ruled out.

The government will have to show some positive

numbers soon. How else can they tout about corporate

governance and how India will not spare the guilty.

Ram with inputs from Badri

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