Satyam Computer Services Limited on Friday signed a memorandum of understanding with West Bengal Electronics Industry Development Corporation Limited for setting up its development centre in Kolkata.
The Finance Ministry is evaluating options of conducting a special audit of scam-tainted IT firm Satyam Computer's accounts to ascertain the company's tax liability.
As the company's financial accounts were in question, complexities have cropped up in arranging the induction of a new investor. Though the intent was to progress in a swift manner, the board was of the view that the intricacies of diligence and need for the confidentiality of the bidders would need due consideration. Thus, it was likely to take another six to eight weeks to know who would be the strategic investor in the company.
Satyam Computer Services Ltd was beset by selling as a drop in Q3 net profit set concerns about the entire tech sector.
Satyam Computer Services Limited has been awarded new business in the manufacturing space by a fire suppression technologies and advanced building support systems major.
After charge-sheeting Ramalinga Raju and others in the multi-crore rupee accounting fraud at Satyam, the Central Bureau of Investigation is trying to ascertain the role of 'hawala' operators who allegedly brought in crores of rupees from abroad.
How many employees does Satyam Computer Services really have? Doubts over the company's claim of 53,000 employees have arisen ever since founder B Ramalinga Raju's January 7 confession to fraud.
The Board of Mahindra Satyam will meet on July 10 to clear the proposal of Tech Mahindra seeking a second round of preferential share allotment to hike its stake in the newly acquired company to about 43 per cent after an open offer evoked a weak response.
The agreement with the new owners of Satyam Computer Services will incorporate restrictions to prevent mass retrenchment of employees, according to a top functionary of the Ministry of Corporate Affairs (MCA).
Early on Monday morning, the chairman of the government-appointed board of Satyam Computer Services, Kiran Karnik, hurried into the Taj President Hotel in south Mumbai to begin one of India's strangest corporate sell-offs.
The government ordered the probe by the SFIO after receiving a report from the Registrar of Companies (RoC), Hyderabad, which inspected the books of accounts of Satyam Computer Services and eight other companies belonging to the kin of the former chairman of the IT major, B Ramalinga Raju.
Moving quickly to stabilise the fraud-devastated Satyam Computer, the government on Sunday nominated noted banker Deepak Parekh, IT expert Kiran Karnik and former Sebi member C Achuthan to the infotech company's board.
India's embattled Satyam Computer Services could become the country's first large outsourcing company to merge or be taken over amid increasing doubts over whether its founding family still controls the company.
The government is understood to have ordered a probe into Satyam Computer Services' controversial decision to buy two group-promoted companies and then reversing the deal within a few hours under pressure from investors.
Market regulator Sebi is likely to approve the Satyam Board-formulated framework to induct a strategic investor.
Back on track under the new management of Tech Mahindra, Mahindra Satyam (the new identity of information technology outsourcing company Satyam Computer Services Limited) is bullish on joining the league of its peers through its predefined three-year turnaround plan.
Following the disclosure of fraud by Raju on January 7, Gupta said the share price of Satyam Computer on the bourses dropped from Rs 188 to Rs 30.70 before closing at Rs 38.40. "It (the share) has been traded at different prices since then," he added. The new board of Satyam, headed by former Nasscom president Kiran Karnik, is trying to ensure 'continuity of business and operations of the company in the interest of its stakeholders', the minister said.
The government constituted board of scam-tainted Satyam Computer Services is looking at reducing the number of senior managers so as to ensure that the IT company is "as viable as possible" for a strategic investor.
The Andhra Legislative Assembly witnessed noisy scenes and constant exchange of words between the ruling Congress and the TDP members through the 90-minute reply by the chief minister.
Amid concerns being raised over its revival, the scandal-hit Satyam Computer on Tuesday said it has won as many as 15 new outsourcing contracts in January from clients in the United States, Europe and rest of the world.
Under the takeover code, an investor who acquires 15 per cent of a company needs to make an open offer for another 20 per cent at a price which is not less than the average share price of the previous six months. This means a buyer of more than 15 per cent of Satyam will have to make an open offer at a price almost six times Monday's closing price of Rs 57.60.
Sends team to discuss share auction with Sebi today Satyam board to sell stake via auction.
The New York Stock Exchange-listed Indian IT major Satyam Computer Services' founder and then-chairman Ramalinga Raju had shocked the world three weeks ago on January 7 with the disclosure of a massive financial wrongdoing to the tune of over a billion dollar at the company. This was followed by the NYSE suspending trading in Satyam shares the very same day.
The regulator's announcement on disclosure of pledged shares comes in the wake of the Satyam scam, wherein promoter Ramalinga Raju had pledged nearly all his shares -- whose prices he had inflated by falsifying profits. The details of disclosure, which should be made in two stages -- event-based and periodical -- will be notified shortly after amending the relevant regulations and listing agreements, Sebi chairman C B Bhave told reporters after the board meeting in Mumbai.
While the board had 'unanimously' passed the resolution for the $1.6 billion acquisition of two Maytas firms, run by Satyam founder Ramalinga Raju's family, many of the five independent directors raised concerns over the deal. The concerns related to the valuation, actual benefits to the shareholders being a related party transaction and assurance about board being used as a 'rubber stamp' and the company moving away from core business of IT.
UNITES, the union that represents workers in the IT and ITeS sector in India, has requested the CEC to invoke the model code of conduct to stall the whole process citing the scandal-hit company's legal liabilities and other ambiguities as deterrents for any potential bidder to carry an effective due diligence process. Over 2,000 Satyam employees, claims UNITES, have registered with the union since the scandal was reported on January 7 this year.
A top company official said, "We are still waiting to receive any communication from the new board. we might make a presentation to the new board."
The government is seeking to replace the 52-year-old Companies Act 1956 with new legislation, a bill for which was introduced in the Rajya Sabha in October. The proposed legislation is primarily aimed at updating corporate laws and reducing state control over the affairs of companies.
Troubled IT firm Satyam Computer is likely to witness a free fall following its chairman Ramalinga Raju's resignation and his admittance of a major accounting fraud, while analysts expect the scrip may plunge to Rs 20 levels in coming days.
At the same time, he cautioned authorities against giving corporate governance and rating awards to companies before they actually prove that they are practising the same. Pointing out that the people were taken in by the wrong numbers given by the company, he said people should always be on guard and ask more questions before making investment decisions.
A team from India's $7 billion engineering behemoth, Larsen & Toubro, which holds 12 per cent stake in Satyam Computer Services started inspecting the books of the troubled company.
B K Modi-promoted Spice Corp on Friday said it is withdrawing from bidding "for the moment" for Satyam Computer alleging non-transparency, multiple short-listing process and lack of clarity in the selection criteria.
Ahead of next month's crucial board meet that is expected to give way to a change in management, Satyam Computer on Monday said that the promoters' stake may have already reduced as a result of institutional lenders selling shares pledged with them.
The decision of Satyam Computer Services to give itself time to consider a series of options to shore up investor confidence, including steps to strengthen governance, has come as a welcome surprise to institutional investors in the company.
Following the CLB nod, the company can also publish the June 2010 quarterly numbers with the September quarter results.
Foxnews.com on Tuesday reported that the World Bank ban started in September this year "due to alleged malpractice's including bribery". The news report said the World Bank debarment -- the harshest sanction ever made by the bank since 2004 -- was meted out for 'improper benefit to bank staff' and 'lack of documentation on invoices'.When contacted, a Satyam spokesperson said that "the company does not comment on individual clients".
Media reports in Australia say the contract has now been awarded to EDS (part of IT major Hewlett-Packard). It is also understood that Satyam's new chief executive, A S Murty, had rushed to Australia last week in a last-ditch effort to retain the contract, which accounted for about 35 per cent of Satyam's revenue from Australia.
Following the order, Raju and others are likely to move the high court.
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