<b>Raju warned me never to discuss business in front of familyâ</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->âRamalinga Raju wanted to be in the big league and took the wrong path to glory. To show that his company was among the IT majors he recruited thousands of extra employees. At a certain point there were about <b>10,000 extra employees who had no work. And 20 to 30 per cent of profits in software companies go into salaries</b>,â says Srini. <!--QuoteEnd--><!--QuoteEEnd-->
<b>Satyam Said to Draw SEC Scrutiny in $1 Billion Accounting Case</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Satyam Chairman Ramalinga Raju said on Jan. 7 that he had fabricated $1 billion of cash and assets, sparking an 85 percent plunge in the stock. American depositary receipts for the Hyderabad-based company trade in New York, requiring it to file financial statements with U.S. regulators and submit to their jurisdiction.
<b>âItâs too big a matter for the SEC to take a pass,â </b>said Charles Clark, a former SEC enforcement attorney who now works at Kirkland & Ellis LLP in Washington. â<b>What will make it challenging is the practicalities of investigating a fraud in a country thatâs incredibly far away</b>
....
The SEC will probably examine whether Satyamâs auditor, <b>Price Waterhouse India, overlooked irregularities and may look into what role the accounting firmâs U.S. affiliate played in checking financial reports</b>, said James Coffman, a former SEC attorney who investigated auditors including Arthur Andersen LLP.
<b>âEven if the U.S. firm didnât perform the audit, they may have been reckless in terms of signing off on the audit or knowing that the audit didnât complyâ with U.S. accounting standards,</b> Coffman said. Regulators havenât accused the auditing firm of wrongdoing in the case.
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<!--QuoteBegin-->QUOTE<!--QuoteEBegin--><!--QuoteBegin-Mudy+Jan 19 2009, 03:35 AM--><div class='quotetop'>QUOTE(Mudy @ Jan 19 2009, 03:35 AM)<!--QuoteEBegin--> My Webpage<!--QuoteBegin--><div class='quotetop'>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.<!--QuoteEnd--><!--QuoteEEnd-->
Taking the current development into consideration on Satyam It clearly is a different case of fraud and not measurable as Enron case and cannot be equated with Erons magnitude.Satyam accounts were fudged but the company did make money that was diverted elsewhere.
So this cannot impact the economy as was percieved earliar although the dent in the image is fairly visible.
When the learned Professor from IIM made the above statement he must have anticipated the Eron effect like most of the industry captains.But that is not the case now.
Satyam is not collapsing and there are takers coming forward to rectify it and soon by the end of 2009 Satyam will no longer be Satyam but merged with some other brand and peoples memory is vague this will be a thing of the past but the lessons will be surely embedded.
The global investors confidence is shaken but not broken.So gradually the bigger picture of the Indian market will prevail.
Satyam has the daunting task now to retains its employees and its customers so that the intellectual value is not damaged.
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->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-->
What is more important now is to punish every one seriously who were stake holders in the fraud and make sure that in the memory of the corporate this becomes a big example to prevent any such future episodes and those who have already gone the "RAJU" way can rectify their actions before its too late.
This needs tighter legislations on governance and the law that will make auditors responsible and not mere act as a rubber stamp.
They need Rs 150 crore to take things forward and L&T has come forward to examine the take over modalities while the government is pulling in the initial capital to keep the company floating .Kiran Karnik has also made a wise statement that Satyam will make profits in its present status.
What is to be now seen is that will the corporates break away from the nexus with political funds and politicians and build a more healthy system of market dynamics.
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->New insights into Satyam Issue -
Corporate fraud
*Â Â Â ~ $1B (~5000 Crores) are siphoned by Raju's out of Satyam in the past few years.
*Â Â Â ~13000 bogus employees are maintained in Payroll drawing ~20Crs salaries every month.
*   ~120 Crores were invested into Y Jagan (YSR's son) company by a Mauritius company. Prior to that Central Minister Premchand Gupta stated that Satyam money is moved to Mauritius. http://andhrajyothy.com/mainshow.asp?qry...n/20main49
Land mafia connenction
*Â Â Â What will happen to the ~6000 acre land pool owned by Maytas properties? ~240 companies are registered under Maytas brand to evade Urban Land Ceiling Act.
*Â Â Â What will happen to ~10,000 acre land purchases (thru binamy names and GPAs). How this money will be pooled? May lead to life threats to Raju family.
Money Laundaring
*   Money route is India (blk) >> Mauritius >> India (whte) ... who helped this? How did they move thousands of crores in this route?
*Â Â Â How is this money spent? EJ Activities? Further RE investments? Politics?
Politics
*   Why TRS (telangana) is not confirming its coalition partnership with TDP and LEFT parties... Is TRS still hoping to make a deal with INC???
Media
*Â Â Â Eenaadu - Pro TDP. Against Raju and Against YSR. Trying to bring down YSR Govt with this issue. Bad blood in Margadarsi chitfunds issue.
*Â Â Â Andhrajyothy - Left Wing and Against INC. Wants to defame YSR with this issue. Bad blood in Krishna Maadiga issue and Sakshi news paper issue. Partly owned by MIM???
*Â Â Â Andhrabhoomi - Right leaning editorials. But YSR supporter when it comes to politics. Trying to limit this issue to Rajus.
*Â Â Â Saakshi - YSR's own news paper (Owned by Y Jagan). It will be interesting to see how much Satyam money went to this news paper.
<b>Focus on ex-Satyam honchos' assets</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->In a significant development in the ongoing Satyam saga, the company law board on Wednesday placed restraints on the bank accounts and assets of the erstwhile top management and directors of the company. The board also ordered erstwhile Chairman Ramalinga Raju, B Rama Raju, Rammohan Rao Mynampati, Srinivas Vadlamani and G J Jayaraman to disclose their bank accounts, movable and immovable properties by February 20.<!--QuoteEnd--><!--QuoteEEnd-->
It tooks lazy babus to act on assets or Babus and Congress Party gave them sufficient time to hide money.
<b>Two PwC auditors arrested</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->The Andhra Pradesh Crime Branch-Criminal Investigation Department (CB-CID) on Saturday arrested two senior Price Waterhouse (PW) auditors â<b>chief relationship partner S. Gopalakrishnan and engagement leader Srinivas Taluri </b>â in connection with the Rs 7,136-crore Satyam fraud case. The police had picked them up on Friday night for questioning.
The two auditors have been charged with cheating and criminal conspiracy. CB-CID sources said they are investigating if they accepted bribes from the Satyam management, in which case they will be charged on that count, too.
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<!--QuoteBegin-Mudy+Jan 25 2009, 12:52 AM-->QUOTE(Mudy @ Jan 25 2009, 12:52 AM)<!--QuoteEBegin--><b>Two PwC auditors arrested</b><!--QuoteBegin--><div class='quotetop'>QUOTE<!--QuoteEBegin-->The Andhra Pradesh Crime Branch-Criminal Investigation Department (CB-CID) on Saturday arrested two senior Price Waterhouse (PW) auditors â<b>chief relationship partner S. Gopalakrishnan and engagement leader Srinivas Taluri </b>â in connection with the Rs 7,136-crore Satyam fraud case. The police had picked them up on Friday night for questioning.
The two auditors have been charged with cheating and criminal conspiracy. CB-CID sources said they are investigating if they accepted bribes from the Satyam management, in which case they will be charged on that count, too.
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[right][snapback]93757[/snapback][/right]
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The Institute of Chartered Accountants of India has been working like a typical governmental organization. It failed to take any action against PwC in Global trust bank case even after almost five years. There is a lack of sensitivity on 'Conflict of Interest' among Indian auditing fraternity. A large number of CAs from PwC are active members of ICAI. 3 CAs have been arrested in Satyam case so far - CFO and 2 PwC partners. ICAI must revamp its working style otherwise CA profession will lose all its respect.
â30-villaâ Raju dethrones Nizam
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->--
B. Ramalinga Raju has houses â 30 of them villas â spread over 62 countries, the Enforcement Directorate (ED) and the revenue intelligence directorate have claimed after examining documents found by the Andhra CID.
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The fallen IT czar donated around Rs 340 crore worth of gold to temples in Andhra over the past 10 years.
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Raju appears not only to have gifted gold but also wore a lot of it: his personal jewellery, which includes rings, bracelets, chains, diamond-studded watches and other items, is worth about Rs 75 lakh, ED officials have said.
The investigators have claimed that the former Satyam chief had a Swiss telescope that costs Rs 1.12 crore. âI love star gazing,â
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Other disclosures covered Rajuâs wardrobe: 625 pairs of suits, many of them kept in the closets of his foreign villas, 321 pairs of shoes and 310 belts, according to the investigators.
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âAt least 75 to 110 clients are suspected to be fictitious, having made average payments of up to $5 million over the past eight years,â an ED official said, adding that a specific number of such clients was not mentioned.
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He was living large. But he will get away, Queen will protect him, he just had to name one or two villas on Queens dogs and cats name.
ED officials can use this investigation for shopping. I don't understand why Embassy can't do this job.
Finally something to cheer about in IT thread <!--emo&:ind--><img src='style_emoticons/<#EMO_DIR#>/india.gif' border='0' style='vertical-align:middle' alt='india.gif' /><!--endemo-->
India to follow $2,000 car with $20 laptop
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->India is planning to produce a laptop computer for the knockdown price of about $20 (â¬16, £14), having come up with the Tata Nano, the worldâs cheapest car at about $2,000.
The project, backed by New Delhi, would considerably undercut the so-called â$100 laptopâ, otherwise known as the Childrenâs Machine or XO, that was designed by the Massachusetts Institute of Technology of the US.<!--QuoteEnd--><!--QuoteEEnd-->
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Indiaâs âSakshatâ laptop is intended to boost distance learning to help India fulfil its overwhelming educational needs. It forms part of a broader plan to improve e-learning at more than 18,000 colleges and 400 universities. However, some analysts are sceptical that a $20 laptop would be commercially sustainable and the project has yet to attract a commercial partner.
A prototype will go on show at a National Mission on Education launch in Tirupati, Andhra Pradesh, tomorrow. Pioneered in India by scientists at the Vellore Institute of Technology, the Indian Institute of Science in Bangalore, the Indian Institute of Technology in Madras and at the state-controlled Semiconductor Complex, the laptop has 2Gb Ram capacity and wireless connectivity. <!--QuoteEnd--><!--QuoteEEnd-->
The much-touted Indian Rs500-1000 ($10-$20) laptop, eagerly awaited by the global computer industry, was unveiled yesterday, turned out to be a 2 GB of memory storage device, which sounds more like a pen drive that has to be connected to a laptop or a desk computer in order to access information stored in it.
The storage device, which is 10 inches long and 5 inches wide, was showcased yesterday at Tirupati in the presence of union HRD minister Arjun Singh, education joint secretary S K Sinha in the Venkateshwara University campus.
The so-called laptop, developed by students from Vellore Institute of Technology, scientists in Indian Institute of Science, Bangalore and IIT-Madras with the help of companies like Semiconductor Complex, will be on display in Tirupati on 3 February, at the launch of the National Mission on Education through Information and Communication Technology. (See: India to unveil laptop costing Rs500)
The government had said that for the moment, the laptop will cost Rs1,000 ($20) but with mass production the cost will come down to half, but yesterday even this storage device has been priced at around Rs1,400 ($30) when most pen drives containing 2GB of memory cost half of that.
The data containing storage devised can be plugged on to a normal computer to access the information already stored on it and the ministry was at a loss to explain why this storage device was all the time being touted as a laptop.
The idea that this device can be connected to the Internet for educational purposes in the vast hinterland of India, that too at a very low cost, goes to show that the education ministry is either computer illiterate or it is an election gimmick in view of the upcoming elections in May.
This publicity, which caught the attention of the computer world globally was totally uncalled for since India has made long strides in developing the supercomputer on its own and has the fifth fastest supercomputer in the world behind the US, France, China and Russia.
Same I told my friends, something fishy here, I hope its not a picture of laptop on cardboard. Media and Babus are just dumbo boxes. <!--emo&--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo-->
It was all about pen drive.
Now Cloud Commuting is hot, We will see Pinhead Babus will charge Clouds with tax bills. <!--emo&--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo-->
When nalayak Babu run ministry and do Press release .... <b>The story behind the $10 'laptop'</b> <!--emo&--><img src='style_emoticons/<#EMO_DIR#>/biggrin.gif' border='0' style='vertical-align:middle' alt='biggrin.gif' /><!--endemo-->
HYDERABAD: The Assembly was rocked on Monday over the fraud in Satyam Computers and the special favour âshownâ by the government to Maytas Infra Limited in awarding projects worth over Rs. 20,000 crore and allotment of huge chunks of lands to it.
The storm was triggered off by a charge levelled by Leader of the Opposition N. Chandrababu Naidu that Chief Minister Y. S. Rajasekhara Reddy and his son Y. S. Jagan Mohan Reddy floated 14 companies to keep âthe ill-gotten moniesâ received from âshady dealsâ they had struck with Satyam and Maytas.
<b>Satyam employees in Green Card fix</b><!--QuoteBegin-->QUOTE<!--QuoteEBegin-->"It is possible that Satyam's I-140 petitions, whether pending or approved, will be denied or revoked for fraud. An essential piece of an I-140 petition is the petitioner's showing that it has the ability to pay the beneficiary's proffered wages. Satyam has admitted to accounting fraud, meaning that the I-140 petitions all necessarily relied on fraudulent documents," Rizzo said.
"I think the chances of I-140 revocation, even for approved petitions, are quite high. Even though it is not the employees' fault, the petition is filed by the employer and one of the key requirements in an I-140 is the employer's submission of evidence of its ability to pay.
"USCIS regulations require that evidence of ability to pay be submitted in the form of audited financial statements, federal income tax returns, or an annual report filed with the SEC. Clearly any of these documents would have contained fraudulent financial information. It is not only the beneficiary's fraud that would invalidate a petition but the petitioner's as well," she said.
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The American Competitiveness in the Twenty First Century Act (AC21) permits post-6th year H-1B extensions in three-year increments <b>if their I-140 petition has been approved, and whose priority date is not current. But if the USCIS cancels their I-140 approval later, the employees lose their legal status. They have to start the labour certification process all over again.</b>
comments in rediff
<!--QuoteBegin-->QUOTE<!--QuoteEBegin-->Satyam is in the process of sending all consultants on bench to India. A lot of my friends were working in Peoria, IL for Caterpiller and they were hired in the US. Some of my friends have kids that are US citizens and go to school here.
Now, <b>Satyam is forcing them to resign or go to India</b>. How can employees that were hired in the US go to India in the middle of a school year? What about their commitments? The credit card bills? The car payments? The student loans? The Green Card Applications?
Satyam's management is showing a very callous attitude and forcing their associates to either go to India or resign. In fact Satyam does not even have a point of contact in the US. Most associates are desperately calling people in India and unfortunately for them, the management is not picking up their phones. There is zero accountability in Satyam today.
Satyam is worse than any desi consulting company <b>today forcing people to go on leave without pay if they not have projects. Frankly, this itself is an immigration violation and the DHS should investigate Satyam for not paying associates while on bench</b>.
Satyam is the worst company in this planet and beyond.<!--QuoteEnd--><!--QuoteEEnd-->
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