top of page

By:

Subhash Kaushik and Kishore Paknikar

21 August 2024 at 11:16:39 am

Homoeopathy, As We Know It

When NASA searches for life beyond Earth, it speaks of searching for “life, as we know it.” Those five words capture one of the most important principles of science. If life exists elsewhere in the universe, it may not resemble the life we know on Earth. Scientists therefore do not search for the unknown using yesterday’s assumptions. They search with better instruments, better questions, and an open mind. The same principle has guided every major scientific breakthrough. Every generation...

Homoeopathy, As We Know It

When NASA searches for life beyond Earth, it speaks of searching for “life, as we know it.” Those five words capture one of the most important principles of science. If life exists elsewhere in the universe, it may not resemble the life we know on Earth. Scientists therefore do not search for the unknown using yesterday’s assumptions. They search with better instruments, better questions, and an open mind. The same principle has guided every major scientific breakthrough. Every generation mistakes the limits of its instruments for the limits of nature. Microorganisms influenced human life long before the microscope revealed them. Most stomach ulcers were blamed on stress until the discovery of Helicobacter pylori changed medicine forever. Casting Aspersions The same lesson applies to homoeopathy. For more than two centuries, homoeopathy has occupied a unique place in medicine. It has been practised across the world, integrated into healthcare systems in many countries and trusted by millions of patients. At the same time, it has remained one of the most debated systems of medicine. Critics have questioned not merely whether it works, but whether it could work at all. Most medical debates begin after a treatment has shown some benefit. Homoeopathy has often been judged before the scientific discussion could move beyond its proposed mechanism. Homoeopathic medicines are diluted to such an extent that little or none of the original substance is expected to remain. If almost nothing remains, how can anything produce a biological effect? Judged by the chemistry and analytical methods available during the nineteenth and much of the twentieth century, that conclusion appeared entirely reasonable. Science, however, does not stand still. Its greatest strength is not certainty but self-correction. New instruments often compel scientists to revisit old conclusions. Advances in nanoscience, materials science and analytical chemistry now allow researchers to examine highly diluted preparations in ways that earlier generations simply could not. Research from India and other countries has reported observations, including measurable physicochemical features in some highly diluted preparations, that have reopened scientific discussion. Not every finding has been independently reproduced, and many questions remain unanswered. Yet one conclusion is becoming increasingly difficult to dismiss. The scientific basis for rejecting homoeopathy without further investigation is no longer as strong as it once appeared. Changing Perceptions Yesterday’s science asked whether homoeopathy was possible. Today’s science is increasingly asking how highly diluted preparations should be investigated using the best tools available. The placebo argument deserves similar attention. Critics frequently argue that any benefit observed with homoeopathy is simply the placebo effect. There is no doubt that placebo is real. Confidence in a physician, expectation of recovery, and the body’s own healing mechanisms influence outcomes in every branch of medicine. More than two centuries ago, physicians recognized that nature itself plays a powerful role in healing. That observation applies not only to homoeopathy but to every therapeutic system, including modern medicine. Homoeopathy has been reported to produce responses not only in adults but also in infants, animals and even plants, where expectation and belief cannot readily account for the observations. These reports do not, by themselves, prove the effectiveness of homoeopathy. Scientific conclusions require rigorous, reproducible and independently verified evidence. They do, however, raise a legitimate scientific question. If placebo cannot adequately explain every reported observation, what does? The answer cannot come from opinion. It can come only from careful scientific investigation. This is precisely how science has always progressed. It does not reject difficult questions because they challenge accepted thinking. Nor does it accept extraordinary claims without evidence. It designs better experiments. India is uniquely positioned to lead this next phase of inquiry. It possesses one of the world’s largest networks of qualified homoeopathic physicians, teaching institutions, hospitals and patients. Equally important, it has created a dedicated research ecosystem through the Central Council for Research in Homoeopathy (CCRH), the apex research organisation under the Ministry of Ayush, Government of India. Its mandate is neither to defend tradition nor to promote belief. Its responsibility is to generate credible evidence through laboratory research, well-designed clinical studies, public health investigations and collaborations with leading scientific institutions. The history of science repeatedly reminds us that ideas are not accepted because they are popular, nor rejected because they are unconventional. They are judged by evidence. Homoeopathy should be no exception. It should neither receive special privilege nor face special prejudice. It should be subjected to exactly the same standards expected of every other branch of medicine. That is the spirit in which this article has been written. One of us comes from a lifetime devoted to homoeopathic research, education and patient care. The other has spent decades in mainstream scientific research, institution building and promoting scientific temper. We share neither blind faith nor blind scepticism but a commitment to the scientific method. The larger lesson extends far beyond homoeopathy. Scientific progress depends on a willingness to revisit yesterday’s conclusions when today’s evidence demands it. Every generation mistakes the limits of its instruments for the limits of nature. The history of discovery is, in many ways, the history of overcoming those limits. Homoeopathy may ultimately confirm some long-held beliefs. It may equally challenge others. Science must remain prepared for either possibility. What it cannot afford is to stop asking questions simply because the answers appear inconvenient. Research does not exist to protect ideas. It exists to test them. Homoeopathy has earned that test. It deserves to be judged by the best evidence that twenty-first century science can generate, not by the limitations of nineteenth-century knowledge. (Dr. Kaushik is the Director General, Central Council for Research in Homoeopathy (CCRH), Ministry of Ayush, New Delhi; Dr. Paknikar is the Member, Scientific Advisory Board, CCRH, N. Delhi and ANRF Prime Minister Professor, COEP Technological University, Pune. Views personal.)

What a Company's Balance Sheet Doesn't Tell You

The strongest-looking balance sheets can sometimes conceal the greatest risks.

AI generated image
AI generated image

Imagine a person named Bharath who wants to buy a house. He visits a bank and tells the bank that he earns Rs 1 lakh per month and has savings of Rs 10 lakh. On paper, Bharath appears financially strong.


However, Bharath forgets to mention that he is involved in a court case where he may have to pay Rs 20 lakh in damages. He has also guaranteed a friend's loan of Rs 15 lakh, and if the friend fails to repay, Bharath will be responsible. Suddenly, Bharath's financial position looks very different.


This simple example explains what often happens in the corporate world. Many large companies report healthy profits and strong balance sheets, but certain risks remain hidden in the notes to accounts rather than appearing directly in the financial statements. As chartered accountants, we call these hidden exposures the "ghosts" in the balance sheet.


One common example is contingent liabilities. Suppose Bharath receives a notice from the Income Tax Department claiming additional tax of Rs 5 lakh. Bharath disagrees and challenges the demand in court. Since the outcome is uncertain, he does not record it as a liability today. Instead, he merely discloses it.


Companies follow the same accounting principles. A company may be facing tax disputes worth hundreds or even thousands of crores, but these amounts may appear only in the notes to accounts. Investors who look only at profits may miss these important risks.


Another area of concern is related-party transactions. Assume Bharath owns a shop and frequently buys goods from his brother's company. If he pays a higher-than-market price to help his brother earn more profits, his own business suffers.


Similarly, some companies enter into transactions with promoter-owned entities, subsidiaries, or group companies. While many such transactions are legitimate, excessive dealings can sometimes raise questions about transparency and whether shareholder interests are being protected.


A third hidden risk involves guarantees and commitments. Imagine Bharath signs as a guarantor for his cousin's bank loan. Today, Bharath owes nothing. However, if the cousin defaults, Bharath must repay the entire loan.


Many large companies provide guarantees for subsidiaries, joint ventures, or group entities. These guarantees may not appear as debt on the balance sheet, yet they can become major liabilities in the future.


Investors should also be cautious about complex group structures. Suppose Bharath owns five small businesses. One business is profitable, while the other four are making losses. If someone only looks at the profitable business, they may believe Bharath is financially secure.


Similarly, large corporations often operate through multiple subsidiaries and associate companies. Losses, borrowings, or financial difficulties in one entity can eventually affect the entire group.


This is why smart investors do not stop at the profit and loss account. They read the notes to accounts, examine contingent liabilities, review related-party transactions, and study auditor observations.


The lesson is simple: if you were lending money to Bharath, you would want to know not only what he owns but also what risks he may face in the future. The same principle applies when investing in companies.


A balance sheet can show strength, but the real story often lies in the fine print. The hidden risks may not be visible today, yet they can significantly affect a company's future. For investors, identifying these "ghosts" before they emerge is one of the most important steps toward making informed and responsible investment decisions.

 

(The writer is a Chartered Accountant based in Thane. Views personal.)


Comments

bottom of page