The government acted in time to stop tomorrow’s board meeting of Satyam Computer Services. Otherwise, a 3-member board would have met tomorrow, to consider the resignations of its chairman and managing director and discuss options before the company. This is the same board, down from its original strength of nine, which has presided over the worst corporate scam in the new millennium in India. Any decision of this board would have been viewed with suspicion.
News Analysis
Recent Posts
Yawning gap in Satyam’s balance sheet
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Corrected: The Assets’ side total is Rs 2889 crore and not Rs 2936 crore as was earlier stated, in the last paragraph.
Filed under: Companies, News Analysis, Balance Sheet, Ramalinga Raju, restate, Satyam, Satyam Scam, Scam
Satyam’s options are not many
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Can Satyam continue to function under a tainted board? Satyam’s board was already a thinly manned one, with just five members. Two are the promoters B Ramalinga Raju and his brother B Rama Raju who have given their resignations. Ram Mynampati is the senior executive on the board. He has been with Satyam since 1999. The company website says he is the president, commercial and healthcare, since October 2002. It is very difficult to imagine him as the interim CEO, as Raju’s letter proposes, in a situation where trust in its board has evaporated. Continue Reading →
Filed under: Companies, News Analysis, Directors, Satyam, Satyam Scam, Scam
Satyam postpones buyback meeting, bigger restructuring planned
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Software services provider Satyam Computers has postponed today’s board meeting to consider a buyback. Its chairman, B. Ramalinga Raju said that considering the questions that have been raised in the past two weeks, the need for them to be properly addressed and considering the interests of stakeholders, the company is broadening the scope of deliberations beyond a buyback.
Filed under: Companies, News Analysis, Companies Disclosures, Meeting, Satyam, Satyam Scam
Sebi’s letter to Pyramid Saimira a forgery, several unanswered questions
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“We are clear ….SEBI’s letter Forged….” That’s the blurb on Pyramid Saimira’s website, a sign of a relieved company or actually a relieved promoter that he is not under Sebi’s glare. But it would be unfortunate if the hoax perpetrated on the financial media, Pyramid’s shareholders and the market regulator Sebi were to end so tamely.
Filed under: Companies, News Analysis, forgery, Pyramid Saimira
Axon goes to HCL: the mystery gameplan?
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Today, Axon Global’s shares will stop trading on the London Stock Exchange, marking a smooth ending to a takeover, which at one time saw HCL Technologies and Infosys Technologies pitted against each other. Though the logic of the deal and its benefits for HCL has been dealt with earlier, the ease with which HCL outbid Infosys is puzzling.
Filed under: Companies, News Analysis, Axon, HCL, Infosys, M&A
Ten things to kickstart the Indian economy
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Here are some ideas to bring the economy back on the growth track. Some of these could be permanent, yet others could be temporary till the situation improves.
Filed under: Economy+Policy, News Analysis, Stimulus
Booster Dose #3: Govt lowers excise rates, big deal?
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This is the third instalment of the weekend stimulus package. The government has lowered the cenvat rate by 4% across all rate slabs: 14%, 12% and 8%. The ad valorem duty on cars has been reduced to 20% from 24%, but it is still higher compared to the highest cenvat rate.
Filed under: Economy+Policy, News Analysis, Cenvat, Economic Stimulus, Excise, Industries Number Speak
India’s top companies under Sebi’s scrutiny
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Being part of the BSE Sensex and the NSE Nifty is a privilege for a company, a sign that you have arrived. Apart from the snob value, it gives a relative boost to a company’s market capitalisation.
Filed under: Companies, News Analysis, Audit, Companies Disclosures, Corporate Governance, disclosures, Policy Corporate Governance, Sebi
HCL bids for Axon Global, teases Infosys
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HCL Technologies, as was rumoured, made its move to acquire Axon Global, spoiling Infosys’ party mood. The Delhi-based IT company has launched a counter-bid for Axon Global, which will make Axon shareholders happy, but also ups the acquisition cost for Infosys. HCL’s initial bid of 650 pence a share, through its UK-subsidiary HCL EAS, is just an invitation to start a bidding war. With just an 8.3% premium to Infy’s offer price, Infosys will most certainly make a counter-bid.