DomainK Posted January 11, 2009 Posted January 11, 2009 Some US law firms will file class action suit (one already has) on behalf of the US investors who bought Satyam's shares on NYSE. Irrespective of whether it goes to court or not, its going to cost Satyam heavily.
Ram Posted January 11, 2009 Posted January 11, 2009 Some US law firms will file class action suit (one already has) on behalf of the US investors who bought Satyam's shares on NYSE. Irrespective of whether it goes to court or not' date=' its going to cost Satyam heavily.[/quote'] Well, there's the accounting firm's role too in it, not just Satyam's.. I get what you're saying, but the future isnt as disastrous as you've made it sound to be. Its not like Satyam wont be there in 2 months or something.
DomainK Posted January 11, 2009 Posted January 11, 2009 Well, one sign that Satyam will exist is that its shares are being traded easily still. Someone is buying Satyam off the market. But no one knows who. Someone has got some schemes. This is like a Jhon Grisham novel now. So many twists and thrills.
beetle Posted January 11, 2009 Posted January 11, 2009 New Satyam board to take stock of situation shortly NDTV Correspondent Sunday, January 11, 2009, (Hyderabad) The government has acted swiftly just days after the Rs 7000 crore Satyam fraud came to light. It has appointed a new board bringing together highly respected individuals from the fields of Finance, IT and Law. HDFC Chairman Deepak Parekh, former NASSCOM chief Kiran Karnik and former SEBI member C Achuthan constitute the new board. Making the announcement, Minister of Corporate Affairs PC Gupta said, the government agencies have began probe into the Satyam fraud in a coordinated way and have made "commendable progress". Speaking to NDTV, Minister of Corporate Affairs PC Gupta said, "No actions are being ruled" on Satyam front. "We are keeping all the options open," he said, when asked about whether the government is looking at bailing out the embattled IT company, which is facing a liquidity crisis. The newly appointed board will meet over the next 24 hours to decide on a future course of action and will also take a call on who else to include in the new board. The board takes over at a time when the fate of almost 50,000 employees remains unclear with liquidity being a serious concern. Investor confidence is also rock-bottom. "Will ensure there is business continuity. It's important to maintain customer confidence. Will get the company back on track," said Kiran Karnik. On Friday, the government had disbanded the board of Satyam Computer for "failing to do what they were supposed to". Meanwhile, Satyam's fallen promoters Ramalinga Raju and his brother Rama Raju will spend the next two weeks in judicial custody at the high security Chanchalguda prison in Hyderabad. They have been remanded to judicial custody till January 23. They were interrogated for 18 hours on Saturday and their bail pleas have been rejected. V Srinivas, the chief financial officer of Satyam was also arrested late Saturday night. While Raju's counsel is expected to apply for bail on Monday, police will push for custody. The CID has raided various associate companies of Satyam. The stock market watchdog SEBI has also filed a petition to interrogate Ramalinga Raju. Meanwhile, the CID has formed teams to arrest the other directors of Satyam Computer and auditors of PricewaterhouseCoopers who have been listed as the accused in the case.
beetle Posted January 11, 2009 Posted January 11, 2009 The business plan of Raju Satyam Computer Services’ vision statement, displayed prominently on its website, says ‘Business Transformation. Together’. It extols the virtues of what it calls ‘Execution: Ordinary people doing extraordinary things’. And it says the company’s objective is to ‘Demystify business challenges’. These are important clues in deciphering what Ramalinga Raju did. He clearly transformed the way of doing business, although it’s uncertain whom he was referring to when he used the word ‘Together’. He probably meant the auditors. He was also an ordinary guy, rising from humble beginnings and going on to do extraordinary things like a Rs 7,000-crore swindle. And nobody can deny that he has neatly executed the company. But it is the third mission statement that is important. The biggest challenge in business is to make profits. Ordinary people go about making profits in a very complex way. They start off by producing something and then trying to sell it. They spend a lot of effort in cutting costs so that expenses are less than revenues so they can earn a profit. Raju’s genius lay in cutting through all that complexity and deciding on a profit number right at the beginning. Sources say he had outlined his business model long ago when he was at Harvard. One evening, out drinking with a friend, Raju allegedly scribbled the plan, after six pegs of Bourbon, on a table napkin. Since he then omitted to pay for the booze, the guy he was drinking with kept the napkin. “I now understand what Raju meant when he said he was riding a tiger,” said his friend smugly. “It’s a very difficult habit to get rid off. You start off in a small way by not paying for the booze and before you know it, you’ve swindled a billion dollars.” Be that as it may, thanks to the friend we now have the original business plan hatched by Raju at Harvard. Here it is: Step 1. Think of a very large profit number. Take a sheet of paper and write it down. Then add some numbers for your expenses and revenues. Call this your Profit and Loss Account. Next, put down random numbers as the cost of buildings and computers. Insert liabilities and capital. Label it a balance sheet. Name the company ‘Truth Ltd’. Step2. Get a top auditor, but first make sure he’s blind, deaf and dumb. Pack your board with top independent directors, preferably sleepy ones. Arrange to get international prizes for corporate governance and entrepreneurship. List the company on the New York stock exchange. You are now in big business. As you can see, this did demystify business challenges considerably. There are also other theories. Some believe that Raju, the pioneer of outsourcing, took his job very seriously. He had been very upset with the frauds at Enron and WorldCom. During the current credit crisis, he was saddened by revelations about the huge swindle committed by banks in the US. “We too can do this thing,” he is reported to have muttered. "We need to outsource this stuff as well." “When the Bernie Madoff scandal erupted, Raju got a painting of Bernie and hung it up on his wall,” said a source. “‘My hero,’ he would gush, standing misty-eyed in front of the picture.” That’s why, said the source, Raju confessed to the scam, just as Madoff had done. He added, “Raju is a proud man these days because he has successfully outsourced fraud." What about the position of investors, whom Raju has let down so badly? “I think the best position now for investors is the missionary position,” said an investment advisor, “They should pray.” “They could also start collecting Satyam balance sheets,” he added, pointing out that these could soon become collectors’ items, “because they are works of art.”:hysterical::hysterical::hysterical: And finally, observers say that Professor Krishna Palepu of Harvard, who specialises in corporate governance and was an independent director on Raju’s board till recently, will be using Satyam as a case study in his lectures this summer. Manas Chakravarty is Consulting Editor, Mint
Lurker Posted January 11, 2009 Posted January 11, 2009 Well, there's the accounting firm's role too in it, not just Satyam's.. I get what you're saying, but the future isnt as disastrous as you've made it sound to be. Its not like Satyam wont be there in 2 months or something. Satyam is finished. A couple of months back it was Black listed by World Bank when some of Satyam's employees were involved in moving around of sensitive data without consent of the client. This not only ensured Satyam was kicked off from World Bank but also pretty much shut Satyam out of every financial establishment of the world. I must say I am not surprised. Out of the top 4 IT giants Satyam was easily the worst. They couldnt hold a candle to TCS and Infosys. Nothing more than a glorified body shopper Satyam was a classic example of being in the right place at the right time, and not exactly a company with vision. Of course this doesnt mean that Satyam employee was any less than an Infy employee but Satyam management was any day cr@ppier than say an Infy management. I say good riddance. We need good Indian IT companies not some pretenders. xxx
Ram Posted January 11, 2009 Posted January 11, 2009 Aha... So beetle has finally managed to remember ICF again.. :D
Ram Posted January 11, 2009 Posted January 11, 2009 Satyam is finished. A couple of months back it was Black listed by World Bank when some of Satyam's employees were involved in moving around of sensitive data without consent of the client. This not only ensured Satyam was kicked off from World Bank but also pretty much shut Satyam out of every financial establishment of the world. Lurks, Satyam employs a lot of vendors to get its work done. If I am right, even though that person involved in the WB episode was on Satyam's payroll, he was contractual employee or something. I must say I am not surprised. Out of the top 4 IT giants Satyam was easily the worst. They couldnt hold a candle to TCS and Infosys. Nothing more than a glorified body shopper Satyam was a classic example of being in the right place at the right time, and not exactly a company with vision. Of course this doesnt mean that Satyam employee was any less than an Infy employee but Satyam management was any day cr@ppier than say an Infy management. I say good riddance. We need good Indian IT companies not some pretenders. xxx Oh Come Lurks... That is unfairly harsh..
flamy Posted January 11, 2009 Author Posted January 11, 2009 What about the position of investors, whom Raju has let down so badly? “I think the best position now for investors is the missionary position,†said an investment advisor, “They should pray.†“They could also start collecting Satyam balance sheets,†he added, pointing out that these could soon become collectors’ items, “because they are works of art.â€:hysterical::hysterical::hysterical: Manas Chakravarty is Consulting Editor, Mint :cantstop::cantstop::cantstop::cantstop::cantstop::cantstop::cantstop:
Lurker Posted January 11, 2009 Posted January 11, 2009 Lurks, Satyam employs a lot of vendors to get its work done. If I am right, even though that person involved in the WB episode was on Satyam's payroll, he was contractual employee or something. Which would make Satyam's position actually worse. From a top notch company it will come across as a pretender who was basically a body-shopper(which it is). Satyam would be charging WB say 100$/hr and utilizing a sub-standard company by paying them about 75$/hr. So not only was Satyam caught with touching and moving sensitive data it will also be thought of as a company who was falsely charging the clients. This is not to say Satyam is the only company that does this but there is absolutely no glory in being caught doing sub-contracting. Oh Come Lurks... That is unfairly harsh.. I concede it is harsh but not too off-base. Satyam, even though it is a multi billion company, was simply never in the same league as TCS/Wipro/Infy. Harsh but true.
Macj Posted January 11, 2009 Posted January 11, 2009 So Satyams CEO cooked the books conned millions of investors. So what? Satyam's consultants cook their resumes, cook their references, cook their experiences, Satyam's management supported this cooking. When you run employment checks on their history, it stops when the experience reads 'India PVT Ltd', no company to verify. That particular group seem to be greedy, and they arrive in droves, 90% of Satyams consultants are from that state.
Guest dada_rocks Posted January 12, 2009 Posted January 12, 2009 http://www.dailypioneer.com/143633/Zero-to-Rs-755-crore-in-1-year!.html Will someone throw this minister inside bar please.. HOw abouotuse of some truth serum on Sharad Pawar, after all Telgi under Narco test took this thugs name time and again..
gs Posted January 12, 2009 Posted January 12, 2009 So Satyams CEO cooked the books conned millions of investors. So what? Satyam's consultants cook their resumes, cook their references, cook their experiences, Satyam's management supported this cooking. When you run employment checks on their history, it stops when the experience reads 'India PVT Ltd', no company to verify. That particular group seem to be greedy, and they arrive in droves, 90% of Satyams consultants are from that state. Hate to make such blanket statements, but I agree with this to a great extent. You would have to see this"cooking" in places like New Jersey to believe it !!! :--D
DomainK Posted January 12, 2009 Posted January 12, 2009 As time passes, corporate india will feel the blow. I would like to satyam finished. On one hand I would like to see satyam finished as satyam surviving will leave a very bad example. On the other hand i pity those innocent unsuspectong investors who invested in satyam in good faith. The auditors who certified the accounts hiwever must be made example of.
Ram Posted January 12, 2009 Posted January 12, 2009 As time passes, corporate india will feel the blow. I would like to satyam finished. On one hand I would like to see satyam finished as satyam surviving will leave a very bad example. On the other hand i pity those innocent unsuspectong investors who invested in satyam in good faith. The auditors who certified the accounts hiwever must be made example of. Once again, just because a few individuals conspired to manipulate the company’s books does not mean the whole company has to go down. Those individuals will hopefully pay the price for the financial mismanagement, but Satyam as an entity should survive. And its not just investors, you musnt forget the 50,000 odd high-paying jobs that are at stake here.
Guest dada_rocks Posted January 12, 2009 Posted January 12, 2009 When a state can shame Bihar in matters of fake certificate that state has to be one of a kind. Andhra Pradesh achieved this dubious distinction. Sorry andhra guys don't kill the messenger my own state is not any better on that count.
Guest dada_rocks Posted January 12, 2009 Posted January 12, 2009 Man I used to put ISB ahead of IIMs but this incident has changed my mind.. I had this educational break with managament degrree in mind in couple of years and institute in my mind was ISB Hyderabad. Word is ISB's top professors were on the board and on the audit of Satyam. All these guys are culprit. Suhel Seth writes: PricewaterhouseCoopers and their ilk are more dangerous than the Rajus of the world because they have sacrificed their core belief system: which is honesty. I am surprised why their partners have not been arrested.
flamy Posted January 12, 2009 Author Posted January 12, 2009 damn, even I was looking at ISB :| and oddly enough I'm not offended when u accuse AP. I guess I'm more Bangalorean than Teluguite. Maan, being an Indian fux up ur identity eh? :D I just know I'm Indian, everything else is just being pedantic.
jf1gp_1 Posted January 12, 2009 Posted January 12, 2009 As time passes' date=' corporate india will feel the blow. I would like to satyam finished. On one hand I would like to see satyam finished as satyam surviving will leave a very bad example. On the other hand[b'] i pity those innocent unsuspectong investors who invested in satyam in good faith. The auditors who certified the accounts hiwever must be made example of. what about the 50k + employees
Macj Posted January 13, 2009 Posted January 13, 2009 damn, even I was looking at ISB :| and oddly enough I'm not offended when u accuse AP. I guess I'm more Bangalorean than Teluguite. Maan, being an Indian fux up ur identity eh? :D I just know I'm Indian, everything else is just being pedantic. Arent you from Karachi? Some told me you were the camera man when Chand Nawab was doing his Bi'dness.
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