Virender Aggarwal, chief of Satyam Computer Services, Asia Pacific, became the first Indian to receive the prestigious International Management Action Award of Singapore.
Fraud-hit Satyam Computer, which will soon have a new owner in Tech Mahindra, has lost about 5,000 employees during September-March period of the past fiscal.
Acting as external auditor to World Health Organisation, CAG flagged a number of risks associated with the execution of the Global Management System project, where Satyam happens to be the key contractor. The $55.5 million project was initially targeted to go live in September 2007, but was given its first extension until December 2007, then a second until March 2008 and a third until June 2008, the auditor said.
The board has approved the allotment of the shares, under the employee stock options plans of the company, Satyam said in a filing to the Bombay Stock Exchange. After the allotment, the paid-up share capital of the company stood at Rs 195,35,94,874 up from Rs 195,34,44,694, the filing added.
"Tech Mahindra is way too dependent on one sector, telecom, and one client," said an analyst. Satyam will not only give it access to different business verticals but also key clients. But Tech Mahindra have been concerned over the recent client loss Satyam has witnessed. Another big concern is the liabilities Satyam will have to face due to the 13 US class-action suits, the unresolved Upaid case, as well as lack of clarity on client and employee details.
After Tech Mahindra emerged as an investor in April, he said he travelled to meet customers, associates and teams across the world. 'All of them are interested in the future. I dream of an enterprise which remains connected to its customers, partners, influencers and the society in more ways than one,' Mahindra Satyam CEO C P Gurnani said. 'Let's make a great future together.'
It is quite a shock that that company management, mainly disgraced chairman B Ramalinga Raju, kept everyone -- seemingly --in the dark for a decade.
British foreign minister David Miliband expressed confidence that Indian authorities will deal with the Satyam case 'very clearly and very appropriately' as he underlined the need for implementation of Indian laws of corporate governance in a 'hard-headed and clear way'.
Infosys made this position clear, a day after its chairman and chief mentor N R Narayana Murthy reiterated that his company would not act on any CVs received from Satyam employees to ensure that nothing is done that would adversely impact the Hyderabad-based firm's future.
The interim management is running the day-to-day business till the three-member board appointed by the government finds a new chief executive officer as also a chief financial officer. Raju and his brother Rama Raju and Satyam CFO Vadlamani Srinivas have since been arrested and are in judicial custody.
The Satyam board said corporate governance, a clean record, management and organisational ability in operating a global company will be considered, apart from the financial bid and other technical criteria. The bidders will furnish an irrevocable and unconditional performance bank guarantee of Rs 100 crore to guarantee the deposit of funds required for the preferential allotment and the requisite escrow amounts for the public offer within four days of being selected.
The government-appointed board of Satyam Computer Services will meet on Friday to scrutinise the bids for a 51 per cent stake in the company and decide a schedule for completing the selection process.
Srinivas Vadlamani, the Chief Financial Officer of Satyam Computers, was remanded to judicial custody till January 23 by the 6th Metropolitan Magistrate on Sunday. He was later shifted to the Chanchalguda central jail, where former chairman of Satyam B Ramalinga Raju and his younger brother Rama Raju have been lodged since Saturday. Bharat Kumar said that the bail petition for all the three former officials of Satyam will come up for hearing on Monday.
Mahindra Satyam on Tuesday said it has reinstated the variable portion of salaries of employees, a move which indicates the revival of the once fraud-hit firm.
Beleaguered Satyam management, struggling to set its house in order, is facing a major challenge to fight rumours and disinformation particularly relating to employees and their salaries.
Media reports said that three IT companies, HCL Tech, Tech Mahindra and Cognizant, are in the fray for Satyam. While a HCL spokesperson said the company does not comment on speculation, Tech Mahindra officials termed the reports as baseless.
This second report is expected to go deeper into the matter and look at all new facts that may have come up.
They had approached the apex court against the August 30 order of Andhra Pradesh High Court which had rejected their bail pleas.
Last week Vineet Nayyar, the CEO of Satyam's new owner Tech Mahindra, had said Satyam has an excess staff of 10,000.
Scam-tainted Satyam Computer Services has lost its value with customers moving out of the company, according to Phaneesh Murthy, chief executive of the US-based iGate Corporation.
A Letter Rogatory is a formal request from a court in India to a foreign court for judicial assistance. To be sent through a consular or diplomatic channel, the LRs are meant to get evidence.
Fourth largest software exporter from India, Satyam Computer Services on Thursday said it would expand its global footprint by opening more delivery centres and sales offices overseas.
"We were not given to understand by any party, explicitly or implicitly, during the valuation exercise about Satyam's plans to acquire Maytas Properties," an Ernst & Young spokesperson informed Business Standard by e-mail.
The company had approached the Ministry of Commerce to extend the validity of the project for two more years, according to a senior official of the company.
A new class action lawsuit was filed in the US courts on Friday against Satyam Computer, which already has two more such suits against it there filed on behalf of thousands of investors in the American Depositary Shares of the Indian IT firm.
The official said that L&T did not jack up its stake in Satyam in recent times and the stake the group owns was acquired in phases from the secondary market. Speculations were rife that the engineering major might look at acquiring Satyam in order to strengthen its presence in the information and technology arena where it has presence through L&T Infotech, a wholly-owned subsidiary of the group.
It is not just the current employees, who are an aggrieved lot following the Satyam debacle, the former employees also hit out at the management, questioning how the top brass of the firm had no clue about the fudging of accounts.
The Central Bureau of Investigation, probing the Satyam financial fraud, arrested three employees including a top executive of the IT firm on Sunday, said CBI deputy-inspector general V V Lakshmi Narayana.
Nasdaq-listed Cognizant Technology Solutions, which did not complete the due diligence process for Satyam Computer Services, is understood to be back in the race to acquire the troubled software company.
"The statement of Satyam today is elementary. We will have to study the documents and then decide what to do next. We have to know how they (Satyam) are going to evaluate the company... One just cannot go by the lowest price, one will have to see what the benefit in it for the shareholders is," said L&T Chairman A M Naik. L&T recently hiked its holding in Satyam to 12 per cent by acquiring close to 8 per cent stake through the open market.
Gurnani succeeds A S Murthy who was appointed by the government board after the multi-crore rupee scam broke out in then Satyam Computer Services. Gurnani has been heading the global operations of Tech Mahindra.
These facilities will accommodate 3,500 employees, who will be moved to the two company-owned campuses.
The XIV additional chief metropolitan magistrate -- the designated court hearing the case of the Rs 7,800 crore (Rs 78-billion) financial fraud in Satyam Computer -- on Monday given the accused custody of the CBI, which took up investigations from the Andhra Pradesh CID last month.
The government-appointed Satyam board had recently said that it secured Rs 600-crore (Rs 6-billion) bank loans, which would help it fulfil its immediate fund requirements. The lender's board, which met on January 23 to take a call on the IHFL sale, had deferred the decision, citing the need for more information about prospective buyers.
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Corporate lawyers say the fine on independent directors will make them more cautious and some will be wary of taking assignments from companies with low corporate governance standards.
Sudip Banerjee, CEO, L&T Infotech talks about business post-Satyam, expansion plans and bigger acquisition targets.
At a time when almost 90 per cent of my Satyam friends are cribbing about the fraud and betrayal by (former Satyam chairman) B Ramalinga Raju, I have a slightly different opinion.
The second charge sheet may highlight some more financial transaction made by Raju and some of his associates.
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