AS Murthy, a vetreran of Satyam has been appointed as new CEO. Previous CEO Raju was arrested on charge of 7,000 crore fraud in company in Jan, 2009. Mr. Murthy has been associated with Satyam for 15 years and was heading company's global delivery unit.
Though it could be a concern for many that an internal face will not be able to clean Satyam's name in international community (as it is still not clear who are all were invovled in scam), it could be positive for current clients as they will be comfortable dealing with a known person than a strange new face.
Another good news for Satyam is to get sanction of Rs 600 crore of loan from banks for meeting operation expenditure of company. Company board was already putting effort to collect pending receivables from client and along with this loan, company could have enough cash in hand to plan a month wise strategy for improving situation.
What do you think? Will Satyam strike back or go down?
Showing posts with label Satyam Fraud. Show all posts
Showing posts with label Satyam Fraud. Show all posts
Thursday, February 5, 2009
Thursday, January 8, 2009
Latest Updaet on Satyam - Running post
I think it would be good for readers to see all important links for news related to Satyam at one place instead of running around in search engines. It would save a lot of effort on your side, so I have created this post for you (reversed the sequence to reflect from bottom to top with top being latest. It would be easier for you to get latest news without scrolling)-
9th Jan 2009
12. No salary for Satyam Employee for 2 months. Officials have denied any layoff but has commented that is cash position is bad. SEBI have summoned Raju at Satyam's corporate office at 4:30 PM.
11. CID has started probe into Satyam fraud after state govt gave a green flag for operation.
10. While it is recession time, things are not too bad if you are a Satyam employee and good in your area. Checkout this news about opportunities for Satyam employees.
9. Satyam's CFO who has put papers, tried to commit suicide. It is really a shame but running off like this is not going to help things. We expect cooperation from these people so that no one else in future could try this scam.
8. SEBI has seized all finance files of Satyam. Investigation has formally started with this step.
7. Infosys has instructed its HR to not hire Satyam employees. I feel sorry about Satyam employees that their association with a bad name is bringing bad time for them. Also this statement from Infosys has been criticised by Satyamites.
6. Top leaders of Satyam, new CEO Ram Mynampati including vertical and regional division heads and HR head, has vowed to stay with company in this crisis. They have committed that they won't resign and will work together to bring it out of crisis.
5. While there is news that Satyam may fire 10,000 employees in Feb, new CEO has assured that Decemeber salary of Employees has been taken care of. Main issue company is facing for its operation is liquidity crunch.
4. Hoping news for investors and traders that Satyam trading will not be suspended in India.
3. KPMG raised doubt on Raju's confession. According to them, it is no a one man show and it could be a larger crime where someone has actually pulled out the money while actual money was with Satyam. If it is true, it could act positive for Satyam as a company.
2. Satyam share plunged to 18.75 while in morning it touched lowe than 12.
1. Satyam has got a major Irish contract. Under the contract, Satyam will drive FETAC’s implementation of Business Process Management (BPM) solutions for its core business processes.
8th Jan 2009
7. Despite all speculations, LIC is not planning to sell its stake in Satyam. It could be a soothing news for Satyam investor or could start worrying LIC investors who are taking ULIP from LIC. Other institutional stakeholders like ICICI, Citigroup,Fidelity etc are evaluating their option and have not made any decision till now while Aberdeen and Swiss Finance has sold their stakes.
6. Ram MynamPati is new CEO of Satyam in place of Raju. He holded a conference on 8th Jan evening to assure investors and clients of Satyam. He also revealed that Satyam's CFO has resigned while resignation is not approved yet, may be as all senior member of company are already out of company.
5. Brokerage firms have stopped coverage on Satyam share and advising new investors to stay away from this stock.
4. Maytas Infra along with other Satyam subsidiaries will be scrutinized for its link with Satyam. It might uncover another fraud. As per recent news (8th Jan, 4:00 PM IST) RC Sinha, chairman and independent director of Maytas Infra has stepped down. Mendu Rammohan Rao, a former director on the board of scam-tainted Satyam Computer Services, has quit as the Dean of the prestigious Indian School of Business in Hyderabad.
3. Law firms Izard Nobel and Vianale & Vianale have filed class action suits in the US on behalf of those who purchased American Depository Receipts (ADRs) of Indian outsourcer Satyam Computer Services.
2. Satyam was listed in New York stock exchange. It halted trading for Satyam in US as well as Amsterdam in Europe. National Stock Excahnge of India has removed Satyam from its Nifty 50-share index. BSE may follow later. Also it could be that Satyam is de-listed from stock exchanges.
1. SEBI announced that it will take strict action against Satyam Chariman for fraud. It even gave hint that it could be removed from Nifty and trading could be stopped for its share.
Till 8th Jan 2009
1. Ruchika Sharma has comiled a very nice list of events along with dates as it unfolded. It is a must start for reading and getting a history feed of what all has happened with Satyam till 8th Jan,2009.
(Plesae help me by leaving comments if you find any good link which should be here)
9th Jan 2009
12. No salary for Satyam Employee for 2 months. Officials have denied any layoff but has commented that is cash position is bad. SEBI have summoned Raju at Satyam's corporate office at 4:30 PM.
11. CID has started probe into Satyam fraud after state govt gave a green flag for operation.
10. While it is recession time, things are not too bad if you are a Satyam employee and good in your area. Checkout this news about opportunities for Satyam employees.
9. Satyam's CFO who has put papers, tried to commit suicide. It is really a shame but running off like this is not going to help things. We expect cooperation from these people so that no one else in future could try this scam.
8. SEBI has seized all finance files of Satyam. Investigation has formally started with this step.
7. Infosys has instructed its HR to not hire Satyam employees. I feel sorry about Satyam employees that their association with a bad name is bringing bad time for them. Also this statement from Infosys has been criticised by Satyamites.
6. Top leaders of Satyam, new CEO Ram Mynampati including vertical and regional division heads and HR head, has vowed to stay with company in this crisis. They have committed that they won't resign and will work together to bring it out of crisis.
5. While there is news that Satyam may fire 10,000 employees in Feb, new CEO has assured that Decemeber salary of Employees has been taken care of. Main issue company is facing for its operation is liquidity crunch.
4. Hoping news for investors and traders that Satyam trading will not be suspended in India.
3. KPMG raised doubt on Raju's confession. According to them, it is no a one man show and it could be a larger crime where someone has actually pulled out the money while actual money was with Satyam. If it is true, it could act positive for Satyam as a company.
2. Satyam share plunged to 18.75 while in morning it touched lowe than 12.
1. Satyam has got a major Irish contract. Under the contract, Satyam will drive FETAC’s implementation of Business Process Management (BPM) solutions for its core business processes.
8th Jan 2009
7. Despite all speculations, LIC is not planning to sell its stake in Satyam. It could be a soothing news for Satyam investor or could start worrying LIC investors who are taking ULIP from LIC. Other institutional stakeholders like ICICI, Citigroup,Fidelity etc are evaluating their option and have not made any decision till now while Aberdeen and Swiss Finance has sold their stakes.
6. Ram MynamPati is new CEO of Satyam in place of Raju. He holded a conference on 8th Jan evening to assure investors and clients of Satyam. He also revealed that Satyam's CFO has resigned while resignation is not approved yet, may be as all senior member of company are already out of company.
5. Brokerage firms have stopped coverage on Satyam share and advising new investors to stay away from this stock.
4. Maytas Infra along with other Satyam subsidiaries will be scrutinized for its link with Satyam. It might uncover another fraud. As per recent news (8th Jan, 4:00 PM IST) RC Sinha, chairman and independent director of Maytas Infra has stepped down. Mendu Rammohan Rao, a former director on the board of scam-tainted Satyam Computer Services, has quit as the Dean of the prestigious Indian School of Business in Hyderabad.
3. Law firms Izard Nobel and Vianale & Vianale have filed class action suits in the US on behalf of those who purchased American Depository Receipts (ADRs) of Indian outsourcer Satyam Computer Services.
2. Satyam was listed in New York stock exchange. It halted trading for Satyam in US as well as Amsterdam in Europe. National Stock Excahnge of India has removed Satyam from its Nifty 50-share index. BSE may follow later. Also it could be that Satyam is de-listed from stock exchanges.
1. SEBI announced that it will take strict action against Satyam Chariman for fraud. It even gave hint that it could be removed from Nifty and trading could be stopped for its share.
Till 8th Jan 2009
1. Ruchika Sharma has comiled a very nice list of events along with dates as it unfolded. It is a must start for reading and getting a history feed of what all has happened with Satyam till 8th Jan,2009.
(Plesae help me by leaving comments if you find any good link which should be here)
Wednesday, January 7, 2009
Fate of Satyam after Raju Resigns
This is today’s shocking and hot news for India. Chairman B. Ramalinga Raju’s admission that Satyam Computer Services Ltd’s Balance Sheet was completely fabricated got the stock
Crashing down by 66.5 per cent to Rs 40 from Wednesday’s high of Rs 188.70 (check here)
Company share hit a lowest of Rs 30, while previous 52 week low was marked at 114, as details of the extent of fraud perpetrated by the promoters shook the stock market.
Not only the prices of own company share but this news has brought down the whole Sensex. The BSE IT Index plunged 7.70 per cent and BSE Realty tumbled 11.20 per cent.
Satyam fraud raised question over corporate governance of other companies also, especially IT. The Satyam fiasco has left a big question mark on corporate governance in India while sending a negative signal to the foreign institutional investors, analysts said. Company was already in news for bad governance over decision to invest in family business and 8 year ban from World Bank. Check my previous post on this topic.
The Satyam story poses a big question over the credibility of auditors in general, as PricewaterhouseCoopers was auditor of the company. The bankers to Satyam included Bank of Baroda, BNP Paribas, ICICI, HDFC, Citi Bank, HSBC.
Chairman’s letter to the company board and SEBI revealed a fraud of unprecedented proportions. Raju stated that Satyam’s balance sheet as on Sep 30, 2008, carries an inflated (non-existent) cash and bank balances of Rs 5,040 crore (as against Rs 5,361 reflected in the books). Further, it carries an accrued interest of Rs 376 crore which is non-existent. The books carry an understated liability of Rs 1,230 crore on account of funds arranged by Raju, and an over stated debtors position of Rs 490 crore (as against Rs 2,651 crore in the books).
The Securities and Exchange Board of India on Wednesday said it would take all steps under the law for which it has started discussions with government and bourses. As Raju mentioned in his letter that neither he nor managing director have been benefited from this and it is a result of inflated profits company was showing over the past few years (source unknown, and I am not responsible for validity of this statement).
There may not be much impact on the other IT companies, except a bad name in general for Indian corporate and one may see Infosys, Wipro or TCS go up in next trading sessions. Companies in competition of Satyam overseas can look it as opportunity as management will take some time to get hold on company and it may not pursue its growth that aggressively like it was doing before. It can act as advantage for Satyam’s competitors.
Crashing down by 66.5 per cent to Rs 40 from Wednesday’s high of Rs 188.70 (check here)
Company share hit a lowest of Rs 30, while previous 52 week low was marked at 114, as details of the extent of fraud perpetrated by the promoters shook the stock market.
Not only the prices of own company share but this news has brought down the whole Sensex. The BSE IT Index plunged 7.70 per cent and BSE Realty tumbled 11.20 per cent.
Satyam fraud raised question over corporate governance of other companies also, especially IT. The Satyam fiasco has left a big question mark on corporate governance in India while sending a negative signal to the foreign institutional investors, analysts said. Company was already in news for bad governance over decision to invest in family business and 8 year ban from World Bank. Check my previous post on this topic.
The Satyam story poses a big question over the credibility of auditors in general, as PricewaterhouseCoopers was auditor of the company. The bankers to Satyam included Bank of Baroda, BNP Paribas, ICICI, HDFC, Citi Bank, HSBC.
Chairman’s letter to the company board and SEBI revealed a fraud of unprecedented proportions. Raju stated that Satyam’s balance sheet as on Sep 30, 2008, carries an inflated (non-existent) cash and bank balances of Rs 5,040 crore (as against Rs 5,361 reflected in the books). Further, it carries an accrued interest of Rs 376 crore which is non-existent. The books carry an understated liability of Rs 1,230 crore on account of funds arranged by Raju, and an over stated debtors position of Rs 490 crore (as against Rs 2,651 crore in the books).
The Securities and Exchange Board of India on Wednesday said it would take all steps under the law for which it has started discussions with government and bourses. As Raju mentioned in his letter that neither he nor managing director have been benefited from this and it is a result of inflated profits company was showing over the past few years (source unknown, and I am not responsible for validity of this statement).
There may not be much impact on the other IT companies, except a bad name in general for Indian corporate and one may see Infosys, Wipro or TCS go up in next trading sessions. Companies in competition of Satyam overseas can look it as opportunity as management will take some time to get hold on company and it may not pursue its growth that aggressively like it was doing before. It can act as advantage for Satyam’s competitors.
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