More trouble is brewing for Maytas Properties Ltd, the unlisted company promoted by the family of Satyam Computer Services Ltd founder B Ramalinga Raju.
Price Waterhouse's S Gopalakrishnan was involved in the Satyam case. The other two auditors who have been found guilty by the ICAI's disciplinary committee in the Global Trust Bank case, five years after the bank had collapsed, are Price Waterhouse partner P Ramakrishna and Lovelock & Lewes employee Manish Agarwal. ICAI President Uttam Agarwal said punitive action against the erring auditors would depend upon the gravity of offence.
From a premium benchmark index stock to a penny stock and now back to the mid-cap space, the bounce-back has surprised even seasoned market players, though most of them are still wary of taking a call on the stock.
N Chandrababu Naidu wanted a judicial probe by a sitting judge into the affairs of Satyam Computer Services, Maytas Infra, Maytas Properties, the 14 companies promoted by Jaganmohan Reddy and also Heritage Foods owned by his (Naidu's) wife and family.
The Satyam Computer Services scandal, which broke out on January 7 when the company's promoter, B Ramalinga Raju, announced that there was a Rs 7,800-crore (Rs 78-billion) hole in its deposits, is certain to have made it worse. According to the 2009 Edelman Trust Barometer, as much as 49 per cent of the respondents (all drawn from the top ten per cent income bracket) expressed growing concerns about business in India.
A source close to the development pointed out that, with the newly-appointed Minister of Corporate Affairs Salman Khurshid publicly stating that Tech Mahindra would have to deal with the excess employee issue with 'sensitivity', this is one point that will surely be discussed.
Tech Mahindra's acquisition of Satyam Computer Services, according to an internal survey, has helped in restoring the confidence of the latter's clients, many of whom were thinking of terminating their ties with the fraud-hit IT firm.
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 Securities and Exchange Board of India is expected to take up two critical issues at a board meeting scheduled February 2
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.
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.
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.
Earlier this year, Tata Consultancy Services, the country's largest software exporter, launched iOn, a cloud computing service for SMBs.
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.
"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 Hyderabad-based company had posted a net loss of Rs 327 crore (Rs 3.27 billion) in the January-March period of 2011.
"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.
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.
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.
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.
Experts regretted that it has taken too long to deliver justice
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.
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.
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.
38 auditors resigned in 2022-23, compared with 46 the previous year.
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.
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 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.
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