Satyam Computer Services’ new board held its first press conference, where it faced a barrage of questions. Towards the end, Deepak Parekh, eminent banker and a special director on Satyam Computer Services’ board lost his cool. After spending some few hours in the company today, the enormity of the task seemed to have sunk in.
Satyam Scam
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Wipro barred from World Bank contracts
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“Wipro discloses vendor status with World Bank”. That’s the headline of the release issued to the Bombay Stock Exchange. But for Satyam’s run-in with the World Bank, few would have opened the attachment. Its contents are a shocker The World Bank has declared Wipro ‘ineligible’, in June 2007, to bid for direct contracts for four years ending in 2011. Ineligible is a mild term for a ban, which is what it is. Wipro’s disclosure shows a can of worms waiting to be prised open in several parts of corporate India. Continue Reading →
Filed under: Companies, News Analysis, Companies Disclosures, Corporate Governance, disclosures, Satyam Scam, Wipro, World Bank
Satyam’s new board inspires confidence, but needs reinforcements
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The government moved swiftly and nominated three directors for the new board of Satyam Computer Services. Satyam’s three new directors are HDFC chairman, Deepak Parekh, a veteran businessman and troubleshooter; Kiran Karnik, Nasscom’s past chairman and CS Achuthan, the former presiding officer of the Securities Appellate Tribunal. These are good choices to inspire confidence.
Filed under: Companies, Quick News, Board, Policy Corporate Law, Satyam, Satyam Scam, Scam
Satyam’s board dismissed, government nominated board to step in after a week
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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.
Filed under: Companies, News Analysis, Corporate Governance, Regulatory, Satyam Scam, Scam
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’s shocking admission: revenues, profits and cash inflated
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Satyam Computer Services is staring at a big hole in its books, due to falsification of accounts over a number of years, by its promoters. Even as the seriousness and extent of the problem will emerge over the next few weeks, the company could even be staring at bankruptcy, unless a quick bailout is arranged.
Filed under: Companies, Top News, Companies Disclosures, Ramlinga Raju, Satyam, Satyam Scam, Scam
Satyam promoter’s stake falls after lenders sell pledged shares
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The reason for the possible dilution of Satyam Computer Services has become clear now. Satyam’s promoter has said that the entire stake held by SRSR Holding Pvt Ltd (a promoter group holding company) has been pledged to institutional lenders. Since the share price has been declining, these lenders have been selling shares to cover the margin shortfall.
Filed under: Companies, Top News, pledge, Satyam, Satyam 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
Satyam Computer proposes buyback, will have limited impact
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Satyam Computers has entered into damage control mode, proposing a buyback to return cash to shareholders. The IT services major recently proposed a buyout of two group firms –Maytas Properties and Maytas Infra- in the construction and infrastructure business. The move angered shareholders who went on a selling spree, from which its shares are yet to recover.