Employees of Satyam Computer were in disarray following their Chairman B Ramalinga Raju's resignation after the firm admitted to financial wrong-doing, leaving the entire business world of the country shell-shocked.
Satyam's newly-appointed CEO A S Murty has received a thumbs up from the company's board, which is "very happy" with the way he has shaped up so far in dealing with the evolving situation in the firm.
Second-quarter net profit plunges to Rs 23 crore (Rs 230 million) from Rs 98 crore (Rs 980 million) in first quarter.
The Institute of Chartered Accountants of India has found two top officials of Satyam Computer Services and four auditors of Price Waterhouse prima facie guilty in the Rs 7,800-crore (Rs 78 billion) fraud case, a top ICAI official said.
Independent directors of Satyam were not involved in the multi-crore accounting fraud in the IT company and were kept in the dark by founder-chairman B Ramalinga Raju, the Serious Fraud Investigation Office has concluded.
The crux of the problem it appears is one of "trust" and the perception that a unilateral decision was taken by the board, allegedly to favour Raju's sons' companies.
Satyam's revenue per employee is low, but manpower rationalisation can solve only part of the problem, says Shyamal Majumdar.
Satyam Computer Services Ltd on Wednesday announced approval of Sponsored American Depository Shares issue against the existing equity shares of the company.
The Company Law Board earlier this year, extended the deadline for filing of restated accounts from December 2009 to June 30, 2010.
Following the disclosure of the Satyam scam, the corporate affairs ministry asked the SFIO to probe the books of accounts of 325 companies including those connected with Satyam and family members of B Ramalinga Raju. For instance, the official said in the accounts of a company named Swarnamukhi Green Field Pvt Ltd, the cost of land has been shown as Rs 15,00,000 but it was sold for Rs 3.5 crore (Rs 35 million).
Mahindra Satyam is the first Indian IT company to have a global tie-up with Vision Solutions and both the companies have already started delineating a joint go-to-market plan to tap into the multi-million dollar HA and DR markets.
Amid reports that education-focused IT firm Educomp too fudged accounts just like Satyam Computer did to inflate stock prices, the government on Tuesday said it would seek information from the company.
In the three months since the scam, Satyam's employee strength has reduced from 53,000 to 50,000, said a senior ministry of corporate affairs official. "Satyam continues to have strong revenues. The difference between its turnover and the next highest is around 10-15 per cent," he said. He did not disclose his idea of the revenue and net profit, saying it would interfere with the ongoing process for selling a strategic stake in Satyam.
BJP leader and a former MP Kirit Somaiya, president of the forum, told reporters that the matter was mentioned before the court on Wednesday and the counsels for the forum argued the urgency of the case before Chief Justice Swatanter Kumar and Justice D Y Chandrachud. Advocates Darshan Mehta and Nishant Shashidharan appeared for the petitioners.
Fraud-hit IT outsourcing company Satyam Computer Services Limited (rebranded as Mahindra Satyam) is getting itself back on track, and inching closer towards acquiring the multi-million multi-year contracts it lost from Telstra and Merrill Lynch, according to a source close to the development.
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.
Former Chief Justice S P Bharucha to oversee selection process, guide govt-nominated board.
The MCA has written letters to various ministries following a request by the Satyam board that public sector undertakings should not insist on the financial statements and other information like details of turnover from the company while seeking bids.
Satyam Computer Services will scrap the variable pay policy and introduce a revenue-linked allowance from next month for a section of associates in a bid to minimise cost.
The government on Wednesday said there would not be any delay in constituting the new board of Satyam Computer and exuded confidence that the incoming management would retain the existing staff.
The "cleaning up" or restating of scam-tainted Satyam's accounts is expected to take at least six months as the newly-appointed auditing firms will have to scrutinise the company's fudged numbers back to 2002, a top source said.
All the three tax-free enclaves were given formal approval, which would have lapsed by end of this month. While the ministry granted extension of time 'on file', the decision has to be ratified by the inter-ministerial Board of Approval which is meeting here on June 17.
Sources said, though the board did not meet officially on Monday, the members were engaged with some of the prospective lenders to overcome the financial problems.
Upaid has filed for damages exceeding $1 billion on charges of forgery, fraud and breach of contracts. The cases have been filed in a federal court and a state court in Texas, USA. The legal teams of UK-based Upaid and Satyam Computer Services are holding talks for an out-of-court settlement of a case filed by the UK-based mobile payment services firm. The hearing of the case is on June 1.
Indian shares listed on the American bourses settled mostly in the red, while Infosys defied the trend, after the New York Stock Exchange halted trading in Satyam Computer at its bourses.
F1 is the highest class of single-seater auto racing sanctioned by the Federation Internationale deRs Automobile.
Analysts are optimistic on absorption of new clients, growth possibilities under Tech Mahindra. For Tech Mahindra, the biggest positive is that the two companies have synergies in service offerings and client portfolio, says Sabyasachi Satpathy, director and co-founder, Mindplex Consulting. Satyam will give Tech Mahindra capabilities in enterprise resource planning, systems integration, as well as vertical expertise in the embedded, manufacturing and insurance space.
The petition was filed before a magistrate court here seeking permission for interrogating Raju, his brother Rama Raju and Satyam's former CFO Vadlamani Srinivas while they are in judicial custody. Raju's lawyer had earlier sought a day's time to file a counter petition, following which the court posted the matter for hearing on Friday. However, it has now been posted for hearing on January 19.
A week after B Ramalinga Raju, the promoter of Satyam Computer Services, confessed to manipulating the accounts for several years, Price Waterhouse, external auditors of the Hyderabad-based software services firm, said its audit report should not be relied upon.
The chartered accountants body ICAI on Tuesday constituted a six-member special committee to look into the auditing of crisis-hit Satyam Computer, whose disgraced founder chairman Ramalinga Raju has confessed to fudging accounts.
A union of IT and BPO workers has written to the Election Commission to halt the sale process of fraud-hit Satyam Computer until a new government takes over and current investigations being carried out by CBI reach a logical conclusion.
With the developments in Satyam Computer unfolding shocking irregularities, Wipro Technologies, a NYSE-listed company, on Wednesday said this incident is one of its kind and is unlikely to affect the industry.
"The new owner has lost no time in communicating that it is performance which will matter," the official said. Those employees who are not pliable enough to meld in these new roles may be asked to leave the company, he said, adding that integration was on the cards in verticals like telecom, which is the core strength of Tech Mahindra. Meanwhile, Ram Mynampati -- former Satyam executive director -- is understood to have quit the company.
Sources close to the development said that as of now, the court has advised the company to wait for the judgment of a similar case that is pending before Andhra Pradesh high court.
Meeting agenda to go beyond buyback.
Satyam Computers' independent directors are mounting pressure on founder B Ramalinga Raju to reveal details of the controversial board meeting that proposed the acquisition of two promoter-related companies, after a director resigned yesterday owning moral responsibility.Directors want Satyam's founders to make public the minutes of the meeting at which around Rs 5,500 crore of the company's cash was proposed to be paid to acquire Maytas Infra and Maytas Properties.
The fraud was disclosed by Satyam founder Ramalinga Raju himself in January.
The government said on Wednesday its 'job is done' in handling the crisis-ridden Satyam, which posted a standalone net profit of Rs 181 crore (Rs 1.81 billion) in October-December quarter, and the company board can decide on sending back the nominee directors. Following disclosure of accounting fraud by founder chairman of Satyam, B Ramalinga Raju, on January 7, the government superseded the board of the IT company and appointed its own nominees to run the company.
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