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.
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.
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.
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.
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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.
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 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.
"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, which is one of the strategic partners for WEF annual meeting at Davos, hosted one of the first company receptions for this year's meeting on January 22.
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.
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.
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.
Raju was arrested by the Crime Investigation Department of Andhra Pradesh Police two days later along with his brother.
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.
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.
Sudip Banerjee, CEO, L&T Infotech talks about business post-Satyam, expansion plans and bigger acquisition targets.
The second charge sheet may highlight some more financial transaction made by Raju and some of his associates.
Mahindra Satyam will be able to keep its revenue in the range of $900 million to $1.1 billion, says a study by Forrester, an IT research firm. However, the report stated that clients are still unclear about what is happening in the company.
Different investigating agencies -- Securities and Exchange Board of India, Registrar of Companies and Serious Fraud Investigation Office -- are looking into the fraud and 'I assure you that those found guilty would be meted out severe punishment.'
The 6th additional chief metropolitan magistrate rejected Sebi's plea for taking the Raju brothers into custody for a day and returned as 'not maintainable' the petition filed by SFIO seeking six days custody of Ramalinga and Satyam's former CFO Vadlamani Srinivas. The three were, meanwhile, sent to judicial remand till January 31.
The minister further said running the operations of the company and inquiry against people involved in the accounting fraud are two different things and should be viewed separately separately. The new board of Satyam met twice and appointed global accountancy firms KPMG and Deloitte to re-state the accounts of the IT company.
As many as 120 questions have been put together by the experts and the CID team, which is trying ascertain if Satyam's founder Ramalinga Raju siphoned off the company's money through benami transactions. Sources in the CID said the questions were designed based on documents seized during raids at Raju's home and office on January 10 and 11. Raju, on January 7, disclosed that he had for years inflated Satyam's profits and created fictitious assets where none existed.
Engineering and construction major L&T on Tuesday said Satyam Computer Services, which is rebranded as Mahindra Satyam, has kept its shareholders in the dark about it's performance.s
While welcoming the reconstitution of the scam-tainted Satyam board, the Nasscomchairman Ganesh Natrajan on Monday said the apex body had advised its members to desist from making "unsolicited offers" to the customers of the beleagured company, which has earned the dubious reputation of being 'India's Enron'.
Former Department of Economic Affairs Secretary E A S Sarma on Friday claimed that the regulatory agencies, including SEBI, had ignored his warnings about the financial irregularities committed by Satyam.
The beleaguered Satyam Computer Services on Thursday said its top leaders have pledged to remain with the company and work jointly to steer the organisation through the crisis.
Head of investor relations T A N Murti allegedly indulged in insider trading during the sacm.
The merger process started four years ago, with the acquisition of Satyam in April 2009.
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