Showing clear signs of quicker recovery from the current crisis, the scam-devastated Satyam Computer Services has been awarded a fixed bid project on data modelling by a leading provider of healthcare solutions by diagnostic, treatment and preventative care.
The government has asked the investigating agency SFIO to expeditiously initiate prosecution proceedings against the guilty in the Satyam case and put the whole process on the fast track.
The Securities and Exchange Board of India is expected to take up two critical issues at a board meeting scheduled February 2
Months before the scam at Satyam had come to light with confessions of its founder and former chairman B Ramalinga Raju, the Satyam scrip had hit a 52-week high of Rs 542 in May last year. The IT firm's market capitalisation had been over Rs 36,600 crore (Rs 366 billion) at that time.
Earlier this year, Tata Consultancy Services, the country's largest software exporter, launched iOn, a cloud computing service for SMBs.
The government is likely to appoint more directors on the board of the crisis-ridden Satyam Computer Services soon. "More directors will be appointed within two days," a senior official of the Ministry of Corporate Affairs said.
Demanding a probe by central regulatory agency into the financial irregularities committed by software company Satyam Computer Services, the Bharatiya Janata Party (BJP) on Friday alleged that a scam of such proportions was not possible without the support of SEBI, MCA, Planning Commission and the Andhra Pradesh government.
Many members of the association, who had bought shares of the IT firm at Rs 540 some four months back, had suffered heavy losses when the scrip crashed to Rs 39 on Wednesday, he said.
The economic offence investigation wing of the government SFIO would take at least a year to probe the financial fraud at Satyam Computer, a senior official said on Wednesday.
The Hyderabad-based company had posted a net loss of Rs 327 crore (Rs 3.27 billion) in the January-March period of 2011.
"Whether it (stake to be offered in Satyam) is 31 per cent or 26 per cent, anybody coming in would have to make an open offer of 20 per cent in the market. Then the number of shares with the person or with the bidder could be higher than 31 per cent or 26 per cent. So that is not an issue," Corporate Affairs Minister P C Gupta told reporters in New Delhi.
The Central Bureau of Investigation on Thursday obtained specimen signatures of former Satyam Computer chairman B Ramalinga Raju and four others accused in connection with the multi-crore rupee fraud in the IT company.
"The situation is bad. Some people are leaving and some are being asked to leave. And more important, several positions are remaining vacant. The selected candidates for these posts are not coming," said an associate, as the employees are called. "There is talk now that the new company, whichever that is, will cut at least 10,000 jobs gradually. We are praying that this is unfounded," a senior associate said.
If no bid comes within at least 90 per cent of the highest bid, the highest bidder would be declared the final buyer. Accordingly, the government-appointed board and Justice S P Bharucha, the former chief justice who will oversee the bidding, will open the sealed financial bids submitted by the shortlisted qualified bidders whose technical bids have been found satisfactory, and rank them based on price only. Earlier, there was no ranking of the bids.
Experts regretted that it has taken too long to deliver justice
Company balance sheets could soon acquire a new look, with the government asking ICAI to suggest ways to strengthen reporting norms following Satyam Computer Services scandal 7. ICAI sources said the mandate from the government was to ensure that company managements did not use notes to accounts as a cover-up for misdemeanours. The special group will submit its recommendations over the next few weeks.
The Tamil Nadu government is expected to allot 50 acres of land on the Old Mahabalipuram Road, the IT corridor of Chennai, to Satyam Computer Services Ltd.
Describing the scam as 'unique', a CBI spokesman said the case has been registered against Raju, the company's erstwhile directors and its auditor under various sections of the Indian Penal Code relating to forgery and cheating. CBI has constituted a Multi-disciplinary Investigation Team headed by deputy inspector general V V Lakshmi Narayana which will be headquartered in Hyderabad to undertake a thorough probe, the spokesman said.
The scam-tainted Satyam Computer Services appears to be gearing for action after almost a month of uncertainty.
A court in Lakhimpur Kheri on Tuesday framed charges against Ashish Mishra and 13 others in connection with the October 2021 violence in Lakhimpur Kheri's Tikunia in which four farmers were killed.
Security and Exchange Board of India Chairman C B Bhave and representatives from the Reserve Bank and Corporate Affairs Ministry are likely to brief parliamentary standing committee on finance about the latest developments in the Satyam fraud case, at a meeting called on Wednesday to discuss the issue.
Midas Touch Investors Associations will move the Supreme Court against the decision of the National Consumer Disputes Redressal Commission, which rejected its plea for compensation of Rs 4,987.5 crore
With the Rs 7,800-crore (Rs 78 billion) fraud at Satyam Computer leaving India's IT sector gasping for breath, Infosys chairman Nandan Nilekani sees the fiasco as a blessing in disguise, as it will make authorities enforce better regulations and auditing mechanisms for the industry.
BSE CEO M L Soneji said the exchange was investigating the trading data of Satyam. Highlighting lack of corporate governance, he said this was an opportunity to revisit regulations to make company directors more responsible and auditors more accountable.
The Securities Appellate Tribunal on Wednesday directed the Securities and Exchange Board of India (Sebi) to allow PW cross-examination of former key executives of Satyam - former chairman Ramalinga Raju, former managing director Rama Raju, former chief financial officer (CFO) Vadlamani Srinivas and former vice-president (finance) G Ramakrishna.
A day before the second meeting of the new Satyam Computer Services board, newly-appointed director Tarun Das said the priority of the six-member team would be to protect the interest of employees, customers and investors.
Leading accounting firm KPMG on Friday said the existing management of beleaguered Satyam Computer Services should go and the government take control of the company board to save the image of India Inc.
Satyam's chief financial officer Valdamani Srinivas on Thursday sent in his resignation, giving a blow to efforts to hold the top leadership team intact, even interim CEO Ram Mynampati said efforts were on to continue with the business as usual.
"We will ensure that, to any person who has not worked according to our standards and our expectationsm severe punishment be given," ICAI President Ved Jain said after the financial wrong doings by India's fourth largest IT company were unearthed. He added that that under the Indian Penal Code any person party to a fraud or cheating can be convicted.
Breaking his silence on the embarrassing developments over the last two weeks, Raju said in an open letter to employees that 'please be assured that the Board and the leadership team are doing everything that's possible to get Satyam back on track'.
Satyam Computer Services Ltd will set up a business continuity center in Singapore, its headquarters for Asia-Pacific Region. This would be the first such center outside India.
Former Chief Financial Officer Vadlamani Srinivas has also filed a bail plea in the court.
Satyam Computer Services on Friday announced a consolidated net profit of Rs 580.85 crore (Rs 5.81 billion) for the second quarter ended September 30, a growth of 42 per cent over the corresponding period a year ago.
"Now if there is somebody who knows about the confession (and) wants to buy (or sell) at price 'X', should we as a regulator be coming in the way?" C B Bhave, chairman of Securities and Exchange Board of India, told PTI. His first reaction on receipt of Raju's e-mail was, however, that of disbelief.
Satyam Computer Services Ltd has posted a net profit of Rs 121.49 crore for the quarter ended June 30, 2003 as compared to Rs 108.44 crore for the quarter ended June 30, 2002.
In the midst of the government-appointed Satyam board finalising the bidding norms for strategic sale, Corporate Affairs Minister P C Gupta on Wednesday said preference should be given to a good technology company or a reputed industrial house to take over the IT company.
Even as Sebi officials are quizzing Satyam Computer founder B Ramalinga Raju and his brother Rama Raju at the Chanchalguda jail here, the Andhra Pradesh police are likely to make more arrests in the Rs 7,800-crore fraud involving the IT major.
In an interview, author and columnist Steve Hamm shared his thoughts on the Satyam episode, World Bank ban on Wipro et al.
The political consequences of exercising soft options in the Satyam scam would indeed cost the UPA government dearly. The YSR leadership being so close to the guilty group is something that also needs to be scrutinised. Another aspect that has received wider public disapproval is the Centre's reported plan to pump in around Rs 20 billion from public sector banks to bail out Satyam. The government's argument of saving some 50,000 'high-wage islanders' jobs by pumping pubic mon
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances