In a letter to the Prime Minister, Reddy said though the CB-CID had been in constant touch with other investigating agencies, there were issues that needed to be looked into by central government organisations such as the Income Tax department, Enforcement Directorate, Registrar of Companies, Ministry of Company Affairs, Serious Fraud Investigation Office and the Securities and Exchange Board of India.
Global IT consulting and professional services major, Satyam on Monday announced its tie-up with Hungary's premier science and IT institute MTA Sztaki.
Satyam Computer Services expects to boost its headcount to 3,000 in China, where it plans to open its fourth development centre, and is also looking at acquisitions in Japan.
Two more directors on Monday resigned from the board of Satyam Computer Services, taking the number to three, following differences over an abortive acquisition deal involving two firms promoted by chairman Ramalinga Raju's family.
A US Securities and Exchange Commission team is in India to probe the multi-crore rupee accounting fraud at NYSE-listed Satyam Computer and is taking the help of local agencies to this end.
Satyam Computer Services on Friday received approval from market regulator Securities and Exchange Board of India to facilitate a global competitive bidding process enabling it to sell 51 per cent stake in the company to a strategic investor.
Earlier this month, the corporate affairs ministry had written to various ministries including telecom, railways and steel seeking directions for public sector units under their administrative control for exempting Satyam from submitting audited balance sheets while bidding for projects of the state-owned firms.
Terming the newly constituted board of Satyam Computer as "able", former Sebi chairman M Damodaran today expressed the confidence that the new leadership will chalk out ways to tide over the crisis.
Swinging into action on the very first day of taking charge of the scam-tainted Satyam, its three-member board on Monday announced that top management would be changed and every effort made to address the prime concern of liquidity, including asking main clients to make advance payments.
Both Raju and Gelli symbolised the so-called 'Telugu pride' in the corporate world and were considered visionaries in their respective fields of operation. They were heralded as institution-builders, but in the end their fall too was equally swift due to a set of financial frauds. Incidentally, PricewaterhouseCoopers was the auditors of both the institutions.
The National Association of Software and Services Companies, the apex body of the IT-BPO industry in India, on Wednesday expressed shock at the disclosures made by Satyam Computer Services chairman B Ramalinga Raju.
The holding is expected to come down further as the promoters has pledged the entire holdings over a period of time since September 2006. More institutional lenders are expected to exercise their option of selling the pledged shares to cover margin calls.
Satyam Computer on Monday sank deeper into a crisis with two more directors quitting the board and the company announced that lenders were possibly selling promoters' equity that is entirely pledged with them.
The XIV Additional Chief Metropolitan Magistrate on Wednesday reserved the order on the bail petitions of former Satyam chairman B Ramalinga Raju, his brother Rama Raju and ex-CFO Vadlamani Srinivas for April 25.
Three days after the World Bank decided to ban it for eight years, Satyam Computer Services today hit back and demanded an apology from the bank for "certain inappropriate statements" made by its representatives.
Satyam Computer Services on Wednesday announced that it is not going ahead with its proposed acquisition of Maytas Properties and Maytas Infra, in light of the feedback received from the Investor community.
The remaining two directors would continue to remain with the board for a period of three years and will not be counted in the maximum number of the directors that the company can have as per its Articles, the CLB order said.
At least seven companies, including Larsen & Toubro, i-Gate, Spice and Mahindra Group, have already submitted proposals to the board last week and the bids to be accepted till March 20. The board has already said that it has received adequate interest from both Indian and international bidders, including private equity firms.
Engineering major Larsen & Toubro said on Tuesday it has not received any intimation from market regulator Securities and Exchange Board of India regarding its chairman and managing director, A M Naik's comment on the Satyam issue.
Satyam Computer Services' consolidated net profit under Indian GAAP has surged 39 per cent to Rs 711.64 crore (Rs 7.1164 billion) for the year ended March 31, 2005 as compared to Rs 513.38 crore (Rs 5.1338 billion) for the year ended March 31, 2004.
India has assured the world that Satyam Computer, embroiled in fraud by founder Ramalinga Raju, will continue to provide its clients world class services.
Satyam's expanded board will meet on Saturday with the focus on raising funds to keep the business alive and may also have to deal with complaints on its choice of auditor to restate the company's financials.
Talks of a possible merger or takeover will not have credence for a while
A 20-year old man suspected to be the murderer of an Indian-techie, working with the beleaguered Satyam Computers, was arrested by the police in Little Rock in Arkansas, United States. The Little Rock Police is interrogating the suspect in connection with the killing of Andhra Pradesh engineer Akshay Vishal, who was shot dead on Tuesday, in the seventh case of young students and professionals from the state being killed in the last 14 months.
In an hour-long chat on rediff.com on Monday, Ganesh Natarajan, chairman of National Association of Software and Service Companies, replied to many queries on the Satyam scam.
Sources said that RoC Hyderabad submitted its report on Monday night to minister of corporate affairs Prem Chand Gupta and this report would be the basis for handing over the case to the Serious Fraud Investigation Office. The SFIO is already assisting the RoC in the probe, but is being formally handed over the investigations.
Andhra Pradesh Chief Minister Y S Rajasekhara Reddy on Sunday said that there was no obstacle in any law enforcing agencies, including CBI, inquiring into the Satyam fraud despite CB-CID registering a case.
Satyam Computer Services Ltd on Thursday announced that it would recruit fresh graduates in its first management graduates hiring programme outside India
The minister also said that we should not paint the entire private sector companies as villains because of one bad firm. He said that the government will take steps to restore investor confidence, but did not elaborate on the issue.
Terming the Satyam debacle as a 'black-eye',co-chairman of the country's second largest software firm, Infosys, Nandan Nilekani said on Thursday that is a setback to India's flagship IT sector. Talking about the fallout of the incident, Nilekani said, "Investors who have been shocked by this episode will obviously look for company numbers. We believe that the more data you share with the investors the better it is."
PwC's comments are still awaited. Following a letter from the Satyam chairman, who accepted that he had misrepresented facts in the company's balance sheet, role of auditors and accountants for the company has also come under scanner.
Andhra Pradesh chief minister Y S Rajasekhara Reddy said on Wednesday he was not aware of the details of the Satyam Computer financial fraud, and would take appropriate action after studying the case. Reddy was in New Delhi for a meeting with Planning Commission deputy chairman Montek Singh Ahluwalia.
It is unfortunate that Corporate India's image should be dented in this fashion; but it would be even more unfortunate if the Satyam case did not lead to a more careful scrutiny of what exactly goes on in Corporate India.
Even as most of the 50,000-odd employees at Satyam Computer Services remain concerned about job and pay cuts, 250 to 300 employees working on the Merrill Lynch project have accepted an offer from Bank of America (BofA), the bank that bought the sub-prime meltdown-hit investment bank in September last year.
Better growth is coming from outside the US - such as Canada, Australia, West Asia, China and APAC (Asia Pacific). Moreover, these are also becoming good delivery centres given the unique nature of these geographies, says Ram Mynampati.
Perhaps India did need a blow-out on a scale like Satyam to bring home the painful reality of the generally rotten state of corporate governance and the vicious promoter-politician nexus endemic across different sectors of the economy, says Arvind Singhal.
Kotak Mahindra Group MD Uday Kotak on Friday said it will be tough for stock exchanges to decide whether to stop trading in the Satyam scrip, which has fallen by over 95 per cent in a matter of two days' trading on the NSE.
Dismissing the petitions of former Price Waterhouse auditors -- S Gopalkrishnan and Talluri Srinivas who sought defreezing of their bank accounts, special judge BVLN Chakravarti considered CBI's contention that further investigations is pending in the case at this stage.
The euphoria over the Rs 181 crore (Rs 1.81 billion) net profit in October-December 2008 notwithstanding, Satyam is still not out of the woods as it faces legal and other claims that could put a burden of up to Rs 10,000 crore (Rs 100 billion) on it.
The company expects the division to add double-digit growth to the company's top line during the current financial year, he said.
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