The board, whose size was doubled with the induction of three members on Thursday, is likely to elect a new chairman to steer the company out of the financial mess that its founder Ramalinga Raju led it into.
Satyam is likely to see its clients as well as employees deserting it soon due to the competitive wooing by rivals and top IT firms like Infosys would continue to shore up their market share, analysts at Forrester Research said in a report. "Many employees told Forrester that it's too early to comment, but they will weigh their options almost on a daily basis," they added.
Ruling out a government takeover of Satyam Computer Services, Commerce and Industry Minister Kamal Nath on said it is corporate India that must respond to the issue of governing business firms.
Satyam's last month's gaffe of transferring funds to promoter group companies by buying stakes in the latter already raised a stink. It led us to doubt the faith that investors had put on a company's management, its independent directors, auditors, consultants and rating agencies.
"There will be some 10,000 IT professionals working out of a total 53,000 at Satyam and we are concerned about their future," state IT minister Debesh Das said in Kolkata on Friday. Meanwhile, Das said the slowdown in IT sector had helped the state government in a way.
The agency was probing the rotation of funds and the role of front companies used in rotation of funds, sources said. They added that the conduct of the regulators was also being probed and, if need be, some officials may also be probed. Experts, including CAs from the Institute of Chartered Accountants of India and the Institute of Cost and Works Accountants of India are assisting the CBI in probing the role of regulators in this case.
The new Companies Bill, which is likely to be tabled in the Winter Session of Parliament, will contain provisions to rule out a recurrence of the Satyam episode which shattered the confidence of India Inc, Minister of State for Corporate Affairs Salman Khurshid said on Thursday.
Global IT giant IBM is understood to be the front-runner to acquire Satyam Computer Solutions, a company it named as one of its main competitors in a filing to the New York Stock Exchange in February. The US major, said sources close to the developments, has begun discussions with Satyam's government-nominated board and expressed its desire to acquire a majority stake in the company. A team of investment bankers and lawyers from the US and Europe has been brought in.
Satyam Computer Services, a leading global IT services company, on Wednesday signed an estimated $200 million (around Rs 900 crore) five-year contract with California-based Applied Materials
IT major Satyam Computer Services Ltd on Monday announced the launch of its development centre in Mississauga, Ontario, Canada.
Satyam Computer Services Ltd said Giga Information Group named it 'Top choice for SAP support' among offshore service providers.
The Satyam case is unprecedented in the sense it highlights how a sluggish judicial process has thwarted the efforts of a government authority to attach financial assets of a scam-tainted corporate entity, says Paranjoy Guha Thakurta.
The Mumbai-headquartered company now has an employee strength of 84,000 serving 540 clients across 46 countries. Its revenues are at $2:7 billion.
The country's top life insurer, which has over four per cent stake in Satyam, however, ruled out joining the race for acquiring the troubled IT firm, either alone or with L&T.
IT major Wipro on Wednesday ruled out taking over scam-hit Satyam Computer or Maytas Infra.
The Satyam incident did not come as a bolt from the blue for the Bangalore-based IT-BPO union, who had written to the IT industry body Nasscom, the Prime Minister, IT Minister and Ramalinga Raju himself to conduct an inquiry into the affairs of the company in 2008.
Terming Satyam's shocking disclosure of about the Rs 8,000-crore (Rs 80 billion) financial fraud as a 'one off case', corporate leaders today expressed confidence and said it will not damage the image of India Inc.
Reacting strongly to the Satyam fiasco, IT major Infosys has said the fraud is a deliberate act and should be treated under criminal provisions.
The Sixth Additional Chief Metropolitan Magistrate on Wednesday allowed Securities and Exchange Board of India (SEBI) to quiz Satyam Computer's former CFO Vadlamani Srinivas and ex-Price Waterhouse partners S Gopalakrishan and Talluri Srinivas.
In June last year, Tech Mahindra completed acquisition of Mahindra Satyam -- erstwhile Satyam Computer Services -- to become India's fifth largest software services firm. Mahindra is also the Chairman of Tech Mahindra.
A United States firm has moved the Indian Supreme Court for permission to use the confessional statement of its scam-tainted joint venture partner Satyam's founder Ramalinga Raju in its shareholding dispute.
Satyam Computer could have been hurtling down today, what with its none-too-impressive results, but a balance sheet clean-up initiative garnered positive market focus for the company.
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Ramalinga Raju founded Satyam in 1987.
Mahindra Satyam (formerly Satyam Computer) on Wednesday reported a consolidated loss of Rs 124.60 crore for the year ended March 2010.
Satyam Computer Services Ltd and Ansys Inc formed a strategic alliance that will help customers accelerate product innovation, time-to-market and quality.
B Ramalinga Raju, the disgraced founder of the erstwhile Satyam Computer Services, and his family members wrongfully gained Rs 2,743 crore (Rs 27.43 billion), the Central Bureau of Investigation (CBI) said.
Mahindra Satyam has reportedly requested Khurshid to take up the issue of taxation with the Finance Ministry as it would be unjust to tax income that was never there.
The Enforcement Directorate in October last year had filed the complaint against Raju and 212 others, including 166 companies, before the XXI Additional Chief Metropolitan Magistrate Court cum Special Sessions Judge here for allegedly laundering funds under a 'corporate veil' to perpetrate the accounting scam that rocked the business world in 2009.
The Supreme Court bench comprising Justice Deepak Verma and Justice Dalbeer Bhandari issued notices to the five accused on a petition filed by CBI.
Mahindra Satyam, the rebranded Satyam Computer Services, is set to position itself as an information and communication technologies (ICT) company.
HCL, MindTree in the fray. The company is reportedly in talks with Delhi-based HCL Technologies and Bangalore-based MindTree. HCL, with whom discussions are on for a cash-less merger, seems to be the front-runner, investment banking sources said.
The company is planning to add a net of 7,000 employees in the next fiscal.
The Hyderabad-based company may generate about $12 million revenues during the current financial year from its South African operations against $4 million in 2006.
IT services provider Satyam Computers Services Ltd said on Monday it has entered into an agreement with The University of Melbourne for enabling students of the varsity to do software development internship with the company each year.\n\n
By all accounts, Satyam (now known as Mahindra Satyam) is out of the woods. Losses have been cut. The hole caused by Ramalinga Raju's misdemeanours has been plugged.
Special court will announce judgement in Satyam case on Dec 23.
Satyam Computer on Friday said it has shortlisted three candidates for the post of CEO and CFO and was close to arranging funds to meet immediate requirements like salary payments, while dispelling doubts about the total employee strength of 53,000.
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 NYSE also warned that an 'LF' indicator would be appended to the company's trading symbol and profile, date and news pages provided by the Exchange, Satyam announced in a filing to the BSE and NSE on Tuesday.
The hearing on framing of charges against ten accused in Satyam Computers multi-crore accounting scam was deferred to August 31.
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