Satyam Computer Services Ltd set up a learning centre for the families of Satyamites.
It is quite a shock that that company management, mainly disgraced chairman B Ramalinga Raju, kept everyone -- seemingly --in the dark for a decade.
Serious Fraud Investigation Office joins multi-agency probe.
The two firms, however, cannot be termed as auditors of Satyam as the appointment of an auditor can be done only after securing the company's shareholders' consent. Sleuths investigating the Satyam fiasco on Tuesday conducted raids at the Hyderabad office of PriceWaterhouseCoopers, Satyam's auditing firm, and are understood to have recovered several crucial documents.
The government is planning to nominate full-time directors while inducting the remaining seven members in the reconstituted board of Satyam Computer Services Ltd, said a top corporate affairs ministry official. The ministry of Corporate Affairs (MCA), which got an interim order from the Company Law Board to supersede the existing board of the Hyderabad-based company, is planning to make the announcement within a week to ensure smooth functioning at Satyam.
After waiting for months for Satyam Computer Services to honour their job offers, several wannabe Satyamites finally landed at the scam-hit company's headquarters in Hyderabad to get an assurance on their jobs. Satyam has been the preferred choice for many students and colleges alike. But over the last couple of years, the company has either reduced the intake or stopped going to institutes for recruitment. The company usually recruited in advance anticipating new projects.
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.
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.
Employees of the beleaguered Satyam Computer Services are now finding it difficult to get personal loans or pay back equated monthly instalments. Even their credit card limits have been reduced by almost 80 per cent since banks have become stringent following reports of the severe cash crunch at Satyam on the back of the admission of a financial fraud by the former company chairman Ramalinga Raju.
Satyam Computer's $75 million Directors and Officers insurance is unlikely to provide a cover against claims arising out of irregularities committed by the company's founder B Ramalinga Raju.
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 Company Law Board has asked Satyam's interim management for not implementing the decisions of the board, but has allowed it to continue its business, a senior executive of the firm said in Hyderabadon Saturday.
The team comprising advisors and inspectors from SFIO has gone to assist the officials of the Hyderabad registrar of companies, which is at present conducting investigations. Minister of corporate affairs Prem Chand Gupta had on Wednesday directed the RoC Hyderabad to look into the Satyam issue and submit a preliminary investigation report by January 14.
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.
In a bid to safeguard their firms against fraud, many multinational companies are contacting Certified Fraud Examiners for checking their accounts and financial transactions.
The eight companies, against which the ministry of corporate affairs has ordered inspection on Thursday, include Maytas Properties and Maytas Infrastructure. Following the disclosure, the MCA has asked the Registrar of Companies, Hyderabad to investigate the company, while market regulator Sebi also ordered a probe.
Andhra Pradesh Chief Minister Y S Rajasekhara Reddy on Friday said the CB-CID is independently probing the financial fraud in Satyam Computer, as it appeared likely that its founder Ramalinga Raju would be arrested.
The authorities have been witnessing significant pressure over the issue and this might be the reason for their expected move towards arresting Raju
Ram Myanampati, the interim chief executive officer of beleaguered Satyam Computer Services, on Thursday admitted that he himself is on a shaky ground.
PricewaterhouseCoopers, an advisory and consulting firm whose sister company audited the accounts of Hyderabad-based Satyam Computer Services, has a chequered past with Indian tax authorities, having admitted its "mistake" in at least two cases of tax evasion.
The hearing of the forgery case filed by British mobile solution firm Upaid against Satyam Computer Services is not scheduled for hearing during this week. This means no Satyam official -- neither B Ramalinga Raju who stepped down as its chairman after admitting to a financial fraud nor any other top executive -- is in the US for the case. When contacted, a Satyam spokesperson confirmed the development and added that Raju was 'very much' in Hyderabad.
A day after Ramalinga Raju announced his departure from Satyam Computer after admitting to the country's biggest ever corporate fraud, a website by his name, launched supposedly by his fans last week, vanished into oblivion on Thursday.
The National Stock Exchange on Wednesday removed Satyam from its benchmark index Nifty and the IT firm will be replaced by Reliance Capital with effect from January 12.
Noting that the market regulator Sebi and the Registrar of Companies are already on the job, the minister said, "As far as the auditors are concerned we have asked ICAI to take strictest possible action against the erring auditors." While a team of Sebi has already reached Hyderabad, headquarters of Satyam Computer, the government has asked the RoC to look into the matters concerning the erring company.
Software company Tech Mahindra said it may evaluate the telecom business of the Satyam Computer Services for acquisition.
Startled by the disclosure of fudging of accounts by Satyam founder B Ramalinga Raju, market regulator Sebi has ordered a probe into share market operations and inspection of the IT company.
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.
Earlier during the day, the Andhra Pradesh chief minister Y S Rajasekhara Reddy told reporters in Delhi that a CB-CID enquiry will be ordered into this 'mind-boggling' fraud, immediately. According to official sources, the CB-CID would take up the investigation only when a Government Order is issued in this regard.
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.
Millions of shareholders would be hurt by the developments as the Satyam management was not fair to them, said the official, who did not want to be named. The SFIO investigation would form part of the coordinated action by all the regulatory and enforcement agencies, the official said.
Ram Mynampati, the interim chief executive of the beleaguered Satyam Computer Services, wrote an impassioned letter to all the employees to the company, asking them to stand together in these turbulent times.
CII believes there is a need to immediately examine the loopholes in regulation, accounting, audit and governance that allowed such lapses to occur and address them with urgency. While the occurrence of such events in a major company is a matter of deep regret, CII believes it would be inappropriate for this to be the basis of questioning of general governance standards in other companies.
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.
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.
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.
'But I would not like to write it myself. I don't think it will be right.'
More trouble may be brewing for the beleaguered Satyam Computers with a Texas district court scheduled to hear on January 7, a case filed against the IT major by a small British mobile solution firm, Upaid, over the Maytas deal.
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 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.
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