Satyam scam prompts companies to come clean
15 Jan 2009, 1301 hrs IST, Surya R Kannoth, ET Bureau
Satyam scam prompts companies to come clean
MUMBAI: The recent Satyam scam has encouraged more companies to proactively come out with timely divulgence of information, thus calling for tighter
disclosure norms.
On Thursday, Tanla Solutions, denying market rumours, clarified that none of it promoters' shareholding has been pledged with any financial institution, bank or any other entity as security for any financing lines. In a notice to the exchanges it stated, the promoter directors, and their respective spouses, have no other material business interests other than the shareholding in Tanla Solutions Ltd. The stock was trading at Rs 42.10, down 7.78%. The stock hit an intraday high of Rs 44 and low of Rs 41.10.
Meanwhile, IT solutions provider Info Drive announced the reconstitution of its audit sub-committee on Thursday. The company's shares were down 5.81 per cent at Rs 20.25.
Earlier, Pyramid Saimira, which was in the news for its promoters offloading their stake, later clarified that some financial institutions had sold off the pledged shares of the two promoters against short-term loans taken by the company to overcome a liquidity crunch.
In another development, Rolta India faced the same fate with rumours floated of promoters pledging shares being offloaded by some institutions and that some of the independent directors of the company have resigned. Rolta denied the rumours as baseless and reconfirmed that none of the pledged shares were sold.
Siemens was in focus ever since it decided to transfer stake in Siemens Information Systems to its parent Siemens AG. After the business was transferred, the stock price took a huge beating - falling almost 30% with the market concerned about the valuations and questions raised about the company's disclosure practices and the transfer of value businesses to its German arm. However, the stock was on recovery mode after it disclosed its valuations.
On Jan 12, Bangalore-based Wipro said it was banned in June 2007 for four years for offering World Bank employees stock in its initial share sale in the US in 2000, which took a toll on the company's shares. The purchase didn't violate any ethics or conflict of interest policies, Wipro said. Wipro's disclosure came after the World Bank decided to publish the names of all the companies it barred from contracts, including Satyam Computer Services.
<b>Indian software engineer shot dead in US</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Hyderabad An Indian software engineer working with scam-hit <b>Satyam Computer Services was shot dead </b>by unidentified assailants in Arkansas in the US. Akshay Vishal, 26, was shot in his legs in Little Rock, Arkansas on Tuesday, his father Lakshman Murthy, a BSNL employee, said in Hyderabad.
Vishal sustained multiple injuries in the attack by suspected Afro-American men and was operated upon in a hospital in Little Rock but succumbed to injuries, he said.
"He was near his home when somebody perhaps demanded some money. He was fired at and bullets hit him in the leg. Due to this, his arteries bled profusely which led to kidney failure," Murthy said.
<!--QuoteEnd--><!--QuoteEEnd--><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Police search for murder and robbery suspectLittle Rock police are on the hunt tonight for a man who killed three people in less than 30 days! Two of those deaths happened just this week at two Little Rock apartment complexes. Officers say the same person is responsible for at least 12 robberies around the city. Officers are gathering leads to catch the killer.A Little Rock man who would've turned 27 next month died Wednesday after police say a serial robber shot him at the Asbury Apartment complex Tuesday. Itââ¬â¢s the latest in a series of armed robberies police believe the man has committed.No one answered the door of <b>Akshaya Nandam's Little Rock apartment. Neighbors say he lived there with his girlfriend before getting gunned down while returning from the store."I heard him beating on the doors downstairs and he was moaning and growing</b>. <!--QuoteEnd--><!--QuoteEEnd-->
Give money when you get mugged, never refuse take my advise. Money you can make again.
Keep gun or base ball bat or pepper spray at home handy all the time.
<b>Director says Satyam viable, no govt bailout plan - report</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Fraud-scarred Satyam Computer Services is a financially viable company and there is no plan for a government bailout, the Times of India newspaper said on Thursday, quoting a newly appointed director.
"Taking money from the government will send a wrong signal," Kiran Karnik told the paper, amid speculation that the state will have to step in to rescue the firm.
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The three-member board was working towards making Satyam financially viable before considering any sale or merger, the paper said.
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<b>Satyam's stock market value has dived to less than $450 million from more than $7 billion six months ago</b>.<!--QuoteEnd--><!--QuoteEEnd-->
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--> <b>Satyam probe turns to role of banks in fraud</b>
The probe into the Satyam (SATYAM.BO : 20.3 -9.65) scam has turned the spotlight on banks as investigators and its newly appointed auditors verify the company's numerous accounts. The government is trying to ascertain how much cash actually exists in Satyam's accounts, whether the bank certificates presented to auditors were forged, and whether bank employees colluded with company officials.
Satyam has claimed deposits of nearly Rs 180 crore for the year ended March 2008 in international branches of several global banks. These include <b>Banco do Brasil, BNP Paribas, Citibank, Citibank International, China Merchants Bank, Dresdner Bank, HSBC Bank, Kookmin Bank, KSB Bank, Mitsui Sumitomo Bank, UBS, UniCredit Banca, United Bank, Wachovia Bank and Woori Bank.</b>
The company has stated that another Rs 3,308.41 crore had been parked in long-term fixed deposits. Although the break-up of these investments is not available, Satyam has listed Bank of Baroda, BNP Paribas, Citibank, HDFC Bank, HSBC and ICICI Bank (ICICIBANK.NS : 408.65 -32.45) as it principal bankers.
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<!--QuoteBegin-->QUOTE<!--QuoteEBegin--> <b>Satyam needs Rs 150 cr, Govt says no bailout</b>Â
Satyam (SATYAM.BO : 20.3 -9.65)'s senior management executive Ram Mynampati has informed the government that the troubled IT firm would need Rs 150 crore to meet insurance liabilities of its US employees.
"We have received a mail or two from Mynampati. They indicated that they would need something of the order of <b>Rs 150 crore to take care of the health insurance liabilities of the employees in the US," </b>Economic Affairs Secretary Ashok Chawla said in New Delhi.
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<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Why no action against Maytas?</b>
Pioneer News Service | New Delhi/Hyderabad
<b>Companies can divert âSatyam fundsâ</b>
More than a week after the Satyam scam broke out, the authorities have not bothered so far to launch any crackdown against Maytas Infra and Maytas Properties, which are controlled by ex-Satyam chairman Ramalinga Rajuâs two sons.
The inaction of the authorities is glaring because of the uproar that the two companies were favoured by the Andhra Pradesh Government and awarded huge contracts worth thousands of crores.
<b>Even though Andhra Chief Minister YSR Reddy has said his Government would review projects allotted to Maytas Infra and Maytas Properties but nothing has been done to stop the two companies to divert âSatyamâ funds that may have been put into their coffers by Ramalinga Raju. </b>
There have been no reports of any raid on Maytas Infra offices to seize any incriminating papers that could have possibly thrown light on the Satyam scam and financial dealings of the two companies.
Eyebrows have been raised over reports that Maytas Infra, whose shares hit the lower circuits for the sixth day in a row on Thursday, is likely to sell its stakes in projects worth thousands of crores to two Hyderabad firms.
The inability of Maytas Infra to raise funds following the Satyam scandal may be a possible reason for selling its stakes in the two projects. But it is feared that without verifying the accounts of Satyam and Maytas, the latter should not be allowed to dispose of any assets or projects. With orders of over Rs 13,000 crore, Maytas Infra badly needs around Rs 1,200 crore in working capital, but few banks or institutional investors are willing to do any business with any firm owned by Rajuâs family.
âIt is not the question of only Satyam fraud, there are larger issues involving how Maytas Infra acquired land and projects. Unless a probe is carried out to unearth the truth, Maytas should not be allowed to sell assets or stakes,â a chartered accountant commented<!--QuoteEnd--><!--QuoteEEnd-->
These politicans will steal money before it will go down.
Shame on you YSR and Moron Singh.
<b>Raju warned of 'takeover by IBM' to push for Maytas deal</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Hyderabad/New Delhi Satyam's disgraced chairman Ramalinga Raju had made an emotional pitch that the company faced a takeover threat from IBM and their likes, to avert which he wanted the board's support to diversify into other areas.
<b>Returning from the US ahead of the December 16 meeting</b>, wherein the company decided to go in for the Rs 8,000 crore acquisition of two firms related to his family, Raju had told the board that IBM and another company are going to take over the Indian IT firm because of its strong cash balances, a member present at the meeting said.
Raju also warned that after the takeover of Satyam, pink slips could be issued by the acquirer to enhance profits, the member said on the condition of anonymity.
To avoid this, Raju urged the members, in an informal pitch before the meeting commenced, to take what is known in the corporate world as a 'poison pill'. His suggestion was that Satyam should enter sectors where IBM and their likes would have no interest, to deter hostile takeovers
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It means before Dec 16, he had parked his money abroad. Indian Government had not touched Matyas, it means they are helping fraud to continue and they are giving very good coverup.
<b>Satyam Seeks Emergency Bank Funds, Says Itâs Looking for CEO</b> <!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>State Farm Mutual Automobile Insurance Co</b>., the largest home and auto insurer in the U.S., yesterday canceled its Satyam contract, dealing a blow to the Hyderabad-based companyâs efforts to persuade customers it can fulfill their orders. Satyam needs clients including FIFA, soccerâs governing body, to keep paying after the government ruled out a bailout and the company said it may take three months to sort out its accounts.
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Ram Mynampati, removed from the board after a three-day stint as interim chief executive officer, and executive Virender Aggarwal are meeting with customers in the U.S. and Singapore, the company said.
<b>Bloomington, Illinois-based State Farm </b>told Satyam on Jan. 15 that it was terminating the order. âThe current uncertainties surrounding Satyamâs future and potential impact to State Farm resulted in this decision,â spokesman Jeff McCollum said in an e-mail yesterday.
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Mark Mobius, who oversees about $26 billion in emerging- market stocks as executive chairman of Templeton Asset Management, said his fund sold all its shares in Satyam and didnât lose money because it âgot out early.â
<b>âWe have analysts on the ground and we had been suspicious for a while</b>,â he said in Kuala Lumpur today. âSo we were gradually reducing what we had there.â
...
Dilbagh Gill, Satyamâs head of sport, spent two days in Zurich this week with <b>FIFA</b> officials, he said. Satyam, the first Indian company to sponsor a<b> World Cup,</b> is meant to be FIFAâs official information-technology provider until 2014.
<b>Nestle SA</b>, the worldâs largest food company and a Satyam client, said this week it is considering alternative solutions to avoid disruption of information-technology operations. <b>Telstra Corp</b>., Australiaâs largest telephone company, said Satyamâs disclosure will be a factor when it cuts two of its four major IT suppliers this year
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Good lesson to other IT companies.
Where is hidden money ?
<b>Satyam, Wipro lose over $4 bn on US bourses in one week</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->The market capitalisation of another IT major Wipro, which has been debarred by the World Bank from receiving any contracts till 2011, tumbled as much as $1.5 billion during the same period.
Meanwhile, the total valuation of 16 Indian stocks listed as American Depository Receipts (ADRs) on NYSE and Nasdaq, plunged six billion dollars in one week.
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<b>Satyam's 50 acre land for IT park to go to Indian Navy</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Hyderabad, Jan.18 (ANI): A 50-acre land, which was previously allotted to the fraud-hit Satyam Computers to set up an Inofrmation Technology (IT) Park at Kapuluppada village near Visakhapatnam, is now being handed over to the Indian Navy<!--QuoteEnd--><!--QuoteEEnd-->
<b>Satyam money was siphoned off, not inflated</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Neither me nor the managing director took even one rupee/dollar from the company and have not benefited in financial terms," he had said. But preliminary investigations of the Registrar of Companies (RoC), a copy of which is with the Hindustan Times, clearly state that Raju and his accomplices had utilised the "<b>cash reserves of the company to acquire controlling interest by purchase of shares in two other companies, owned and controlled by persons closely related to the promoter director of the company</b>.
" While the RoC report did not name the companies, a senior official in the ministry of corporate affairs told Hindustan Times that the companies were Maytas Infrastructure and Maytas Properties, both founded and promoted by the Raju family. In fact, the Serious Fraud Investigation Office (SFIO), a multi-disciplinary quasi-judicial agency, has been specifically asked to find out whether "there was any siphoning of funds of the company".
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This fraud is similar to what COngress Party leader and defense minister Jagjivan Ram and son did in 1970s.
Now, I think West will use this scandal to twist India's arm on Pak issue.
My Webpage<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Undoubtedly, this is going to hurt the prospects of foreign money flowing into India in the near future as well; and it was anyway looking a little shaky in the aftermath of the Mumbai invasion and the prospect of war with Pakistan. This will help extend the liquidity crunch and will depress the stock market. After all, India, running a substantial current account deficit, has been using inflows to help fuel its rapid growth. At a time when the incoming US President is warning of trillion-dollar deficits, India is likely to suffer from a cash crunch. Thus the overall growth prospects of the country may also be affected. Thus, it is a disaster for the country on any number of fronts.
So who should take the ultimate blame, other than the Raju brothers? The SEBI, for lax oversight? The auditors, whose job it is to figure out any dubious things in the books? Isnât the then Finance Minister ultimately responsible, the Harvard-trained P Chidambaram? Or the Commerce Minister, Kamal Nath? How about Oxford-trained Manmohan Singh? It was on their watch that this large crime was committed. If people take their responsibilities seriously, the Prime Minister and the former Finance Minister should resign in shame.
There may be a political angle to the Satyam scandal. <b>Professor Vaidyanathan of IIM Bangalore has raised the possibility that there is a nexus between election-bound politicians and Satyam (Impending polls may have pushed Satyam off cliff, DNA, Jan 10, 2009). There are also allegations about gigantic transfers of wealth to private hands, for instance in the under-pricing of the wireless spectrum. Surely, the politicians who enabled the skimming off of public wealth would have gained something in the process, too?</b> There is something worrying in the quality of Indiaâs democracy if it sustains ââ and in fact needs ââ such fraudulent behaviour<!--QuoteEnd--><!--QuoteEEnd-->
Hello, Moron Singh is shameless. He is friend of terrorist and crooks, afterall he is babu appointed as PM of India.
<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><b>Govt orders serious fraud probe into Maytas firms</b>
pioneer.com
PTI | New Delhi
The Government Monday ordered a 'serious fraud' probe into Ramalinga Raju's family promoted Maytas Properties and Maytas Infrastructure as it suspected "nexus" between these two and events in Satyam Computer.
"Inspectors investigating the matter in Satyam have informed that there seems to be a nexus between the events that have taken place in Satyam and... Maytas Properties and Maytas Infrastructure," Corporate Affairs Minister PC Gupta told reporters here.
He said that it was necessary to obtain information, records and books from the above two companies. The Government has "approved and authorised the SFIO inspectors to obtain such books, records, papers as they deem necessary of Maytas Properties and Maytas Infrastructure," he said.<!--QuoteEnd--><!--QuoteEEnd-->
Indian Government gave them sufficient time to hide and destroy paper and money.
The real scam is MAYTAS. SATYAM is a gambit where you sacrifice a pawn to get a bigger objective. the fraud in MAYTAS is bigger and more involved. By diverting the attention on SATYAM the other one gets less exposure.
This is from different reports on Satyam and Maytas
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Satyam, India's No. 4 software services exporter, has been battling for survival since Raju resigned as chairman earlier this month, revealing profits had been<b> falsified for years and that $1 billion of cash on the books did not exist</b>.
Investigators looking into the <b>fraud have found a maze of about 300 companies related to Raju that were used to siphon as much as $1 billion in cash from Satyam,</b> the report said, citing a senior official involved in the inquiry.
In the letter, Raju said about $1 billion of Satyam's cash was "non-existent" and that he had falsified its profits for years to avoid losing control of the company.
<b>The New York Times report</b>, citing the person involved with the investigation, said <b>the entire $1 billion Raju said was faked might have actually been earned by the company but then skimmed from it</b>.<!--QuoteEnd--><!--QuoteEEnd-->
YSR Reddy's Sakashi Newspaper and Elections funds to Congress Party are direct beneficiary.
Maytas had received lot of Indian Government direct construction contracts all over India. To gets these contracts, they were greasing IAS officers and politicans.
from pioneer.com
<i>âRaju Raju, Yes Baba, Cheating us, No Baba, Telling Lies, No Baba, Open Your Accounts, Ha Ha Haâ.</i>
<i>âRaju Raju sat up on the wall, Raju Raju had a great fall, balance sheet died, shareholders cried, Raju Raju made a big fraud.â</i>
full-form for Satyam: â<b>S</b>tealing <b>A</b>nd <b>T</b>ransferring <b>Y</b>our <b>A</b>ll <b>M</b>oneyâ.
<i>âRaju tumhare daant toh motiyo se chamak rahe hain? (Raju, your teeth are sparkling like pearls), to which Raju replies âChamke kyu na?
Maine apni hi company ka paisa jo khaaya hai </i>(Why won't they sparkle, I have gobbled up my own firm's money).
Today's Special'. <i>This includes 'Eggsagerated Hyderabadi Biryani, Inflated Omelette, Overstated Receivable Samosa, Understated Chicken Tangri, Interestless Butter Naan and More Debt Pakora.'
'Chief C®ook as Raju Bhai, Chief Food Taster as SpiceWater Inc and licence has been renewed by Dependent Directors'.</i>
<i>Main Hoon Scam, Main Hoon Scam, Main Hoon, Main Hoon, Raju Scam...," "Daaku, oye raju fraud na kariyo...Market doob jata hai," and "Satyam Facts: Rise, rise and fall."</i>
<i> "Raj Raju Ramalinga, Tara ram pam pam," "Paison ne bulwaya, Hazir hun mein aya," "Hun Scammers ka Scam, akal ka dushman," </i>
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