Indian IT Company, Satyam's Chairman Resigns .....

[Former Member]

Just heard the news that the Satyam's chairman had resigned this morning. It's stocks have been plummeting, right now at Rs 49 I guess. Any comments on how Satyam would tackle this crisis and how this would affect the Indian IT industry.

Regards,

Imran.

[Former Member]

Raju might have diverted 7000 crores from the company. But the poor investors have lost more than 14000 crores by investing in the shares of this company believing the Corporate Governance of this company.

Should he be punished? What kind of punishement he deserves?

[Former Member]

[Rediff.com|http://qna.rediff.com/Main.php?do=getanswer&catid=10&questid=12755290&pageno=1]

Hummm Some funny discussion happened long back regarding punsihment to this crime!!

First page answers are just good !!..

Regards

Sas

[Former Member]

Hi

The staff may not get salaries for the next two months...

http://timesofindia.indiatimes.com/No_salary_for_Satyam_staff_for_2_months/articleshow/3956699.cms

Thanks,

Ravi

[Former Member]

I never believed TOI news. Itself TOI is one of the leading newspapers in fraud. They can print whatever for their publicity.

If this is so than think about Microsoft when Bill goes, think about Berkshire Hathaway when Warren goes......Company never stands over two legs, there are many in hierarchies who might be capable enough to hold up the affairs very well.

there are rumours that 10k employees might be layed off soon.

Well said Anton.

[Former Member]

More skeletons expected from out of the closet once the investigation is over.. Ramalinga Raju arrested..... wonder why no one from PWC got the rap....

If Raju cooked the books .... PWC was the chef.....

My 0.02

[Former Member]

hey..guys..

Check this news.!! iam suprised...!! World bank names Black listed Indian Companies List..!!

[World Bank Black listed List|http://ibnlive.in.com/news/world-bank-names-blacklisted-indian-it-firms/82527-7.html]

regards,

Padmashree.

[Former Member]

I remember a discussion in the Coffee Corner from a year ago, which also included UN warnings and the outlook for the IT industry in the next year if a recession hits.

This year I am feeling more optimistic and by May the markets should be on a sustainable recovery track again with the intra-market adjustments required generating work for the IT sector to show some good mid-year results which will exceed expectations; but I would still like to keep my prediction for 2050.

Cheers,

Julius

[Former Member]

Humm..:-) Great julius

Mr.Titus Eapen i dont his profession but still its really great he is expected some thing long back which is presently happening....

and you are been appreciated to remember this thread long back either

and back to the topic...

Any updates of satyam or its employees future? any one?

What i read from the articles is just like this is truning to be big and big crime of ramaraju who not only him lot many are going to caught ...

Here either ways are possible

1) He told the lie stating that no profit of 7000 crores except his creation but interogation points are

if a person earingn 7000 core of profit of which 97% are from outsourcing and maintaining 166 different bank accounts all round the globe and when funds are transfered is RBI (Reserved bank of india) closed its eyes?

and if certain amount is maintained what about INCOME TAX that TDA discounts are not submitted till now ? Is it possible to maintian IT officers all around the globe/india?

IF raju said is true that he just showed the blank papers without money then

are all the Governement officials , RBI , IT offices , All Banks , Enforcement directors all should be involved in helping him....Is it possible?????????

2) Other wise he said is lie that he owned the money but used for his own purpose to gain the money

Regards

Sas

Ps:Lack of time unable to type clearly

[Former Member]

It is a lame excuse, moreover it must have been the Indian PWC that audited Satyam's accounts!

Also, if PWC was the chef then, Raju is ____ ?

I am pretty sure that more skeletons will start tumbling out of the Indian IT industry' closet....I just pity

the employees who get sucked in by big promises.....

[matt]

>

>...I just pity 
> the employees who get sucked in by big promises.....

And the clients, of course. Without the money to pay the employees, who's going to do the clients' work? There's a lot of business/client specific knowledge tied up in the heads of those employees. Difficult and expensive to replace.

[Former Member]

Humm...One more hit to SATYAM....

Indian Government Bail'OUT' Package is now out ...Indian government rejected to approve the BAILOUT package to satyam which will lead bad way s for the corporates in future.....and now the satyam share

Rupees 22.

Regards

Sas

[former_member184657]

Happy to hear that.

If a bailout would have have happened it would be at the expense of taxpayers, which is definately not fair. Why should the whole counrty suffer because of one fraudulent man?

pk

[former_member205352]

If that bailout could have saved satyam employees then it was a good move.Else would increase unemployment.

The issue was with management why should employees pay for it ?

[former_member184657]

sure 53,000 employees are in a soup, but should half a billion taxpayers bear the brunt of a dozen fraudulent mnangers, thus setting an example that the government endorses fraudulent activities in the country??

pk

[Former Member]

I heard employees are ready to work without pay even.....

They dont want their TREE to be collapsed before themselves....Pratically Its hard to work without pay's but satyam can turn to be PRODUCT based company from SERVICE's wright at the moment if employees can stay way from their payments quite a while..See what the new management can do

and Pk your are right.....and

Praveen your are upto extent ok but Fact is At any cost any company the ultimate sufferer's ( Mainly Disadvantages) belongs to Employees only...

Just my 2 paisa(2 cents)

Regards

Sas

[former_member205352]

but should half a billion taxpayers bear the brunt of a dozen fraudulent mnangers

Bear the Brunt ?

Your Tax wont be increased, may be some facilities for which that money could be invested will be hampered.

And thats what happens in By-elections, Isnt it ?

setting an example that the government endorses fraudulent activities in the country??

No, Government sacking and jailing Raju should set the example the other way.

[former_member205352]

I heard employees are ready to work without pay even.....

Just initial bursts of words probably.

Believe me no one will do this (there may be some exceptions surely not 53,000)

[Former Member]

Ok Agreed Praveen,

What you said is true ...So No bailout package for Satyam. Now whats next ? No Client(almost) is intrested to continue..Either they are ready but dont know how much secure the employees feel to continue there..

I dont know what happen but before so many company's approached to Take over Satyam .Now what happen? No one's name is getting outside even???

Regards

Sas

[former_member205352]

Are the exact financials of satyam out ?

[Former Member]

whom you want to point exactly?

Regards

Sas

[former_member205352]

I meant only when exact financials of satyam are out other companies can think of take over.

[Former Member]

Latest Update on SATYAM -

1) Appointment of CEO & CFO in next few days

2) The actual numebr of SATYAM employess is 40,000 only.

Ramlinga Raju used to show fictitious number of 530000 employess and used to divert funds for additional 13000 persons systematically with wrong entries every month. This makes clear that SATYAM was & still is highly profit making venture and now its liability is reduced which was inflated to excess 13000employees.

3) Raju's, ex-promoters, all acounts and properties freezed.

4) Possibility of reveryting funds back to SATYAM from wrongful accounts and STANDING of satyam is now betting breath!!!

Good work Cops!!

Regards

Sas

[sikindar_a]

wht is done is not at all acceptable and BAIL OUT if a person does the fraud why shd the GOVT Shd pay from his pocket and that too tax payers

the amount shd come from RAMALINGA RAJU danger than terrorists

some people he has done so much to the people doing 1000rs work and makeingn fraud for 100000 rs do we think this as GOOD WORK

[jurjen_heeck]

> wht is done is not at all acceptable and BAIL OUT if a person does the fraud why shd ....

About acceptable, please use all four letters for 'what' and all six for 'should'. Abbreviating like this is against forum rules (see "[Please also avoid 'txt spk'|https://www.sdn.sap.com/irj/scn/wiki?path=/display/home/rulesofEngagement]") and makes reading the posts a lot more difficult.

[Former Member]

Now that would make an interesting defense case as well: The problems were caused by G/L adjustment entries posted via SAP Mobile with sms-speak in the "amount" and "currency" fields... which were mistaken for the "long text"...

Cheers,

Julius

[sikindar_a]

sorry team member

[Former Member]

Heard that Cognizant is planning for a merger or an acquisition.

[Former Member]

I wonder if anybody would be willing to buy out or merge with Satyam. Merill Lynch who the Satyam Chairman had referred to in his resignation letter, have pulled back already. We have the top management of the company (Satyam) resigning. Last I heard (could be a rumour), that approx. 120 managers had resigned, but I am not sure if that is true.

My concern is that a close friend of mine, had joined Satyam in search of better prospects and career growth. Unfortunately, this happens. The last time I spoke to him, he seemed optimistic about the companies future. I wonder how he feels now. But that is just hard luck. I have been trying to reach him since morning with no luck.

Infact, I was thinking of buying out some shares in Satyam last week. But luckily, I was lazy enough to keep postponding that. And now I am happy that I did not. Guess, it is good to be lazy sometimes:-).

But then just picture this. You sell out everything you have buy out the shares. And one fine day we find that Satyam rised like a Phoenix. The stocks sky rocketed. And then you are RICH!!!! But then, that is just a dream?

Anybody, who might me interested in this kind of a venture? By the way is this a good time to invest in Satyam shares? No Seriously !! Do you think the company would survive this and come out a winner?

Regards,

Imran.

[Former Member]

since there seems to be a serious lag between email publication of forum entries and web publishing I opened another thread on the same topic with some additional thoughts....

I hope this will be solved soon since this is really confusing (while I write this here, the forum index shows zero replies while this thread already has a reply).

Sorry for the duplication of the topic,

anton

-

---

Paste from Anton's duplicate post (because of the current delay problems):

>

> it would be kind of frightening to me if such a topic fell prey to censorship. Is it prohibited in RL SAP coffee corners to discuss actual issues of the industry per se (one of which of course is a developing story of a major player in that market)?
> 
> I am assuming for the moment being that it was just a technical issue which removed that thread.
> 
> Actually, there is a remarkably open letter of the chairman of Satyam, B Ramalinga Raju, directed at his board as well as at major stock exchanges (i.e. the public), where he's confessing serious fraudulent facts.
> 
> [Ramalinga Raju owns up in letter to the Satyam board|http://www.dnaindia.com/report.asp?newsid=1219557]
> 
> 
> One thing that immediately comes to my mind whenever such issues surface, is the question what Corporate Governance Activities and Legal Provisions like SOX are good for, when such major cases happen at a constant rate, seemingly totally unaffected by measures mentionend earlier.
> 
> How could, for instance, the actual company in question ever get their accounting certified if the facts presented by the chairman are true? I mean, the auditor of Satyam, as can easily be found out, is no 'rural Indian start-up' but a well respected international firm.
> 
> Is SOX really just there to tell the simple employee like me that accepting an invitation for a business dinner worth than 30 euros might be regarded as an act of corruption and therefore has to be kind of reported, which in turn requires an expensive and complex IT system to handle?
> 
> Strange but interesting. What do you think?
> 
> anton

Edited by: Julius Bussche on Jan 7, 2009 10:33 AM

[Lakshmipathi]

Dear Imran

How the impact would be on IT industry is a secondary question. What would be the fate of the employees ?? In such a scenario, either Sathyam will have to shut down all their operations or to send most of their employees out, at the worst case.

[Former Member]

>

> Dear Imran
> 
> How the impact would be on IT industry is a secondary question.  What would be the fate of the employees ??  In such a scenario, either Sathyam will have to shut down all their operations or to send most of their employees out, at the worst case.

Well said Lakshmipathi,

Thats true ...But is really situation that worst ?

Regards

Sas

[Former Member]

>>Thats true ...But is really situation that worst ?

Atleast not yet

Just had a chat with one of my friends working in Satyam. He fears the future is not very promising with Satyam stocks plumetting to a record low of 39 INR.

Regards

Jai

[former_member184657]

Got a copy of the resignation letter. Almost reads like the script of a Hollywood Wallstreet movie.

pk

[Former Member]

Check Satyam Chairman's [Resignation Letter|http://ibnlive.in.com/pdf/RRaju-resignation-letter.pdf].

It will solve ur query..!!!

But in IT industry, anything can happpen..!!

Already talks ON for Merging..!!

regards,

Padmashree.

[Former Member]

> What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years.

There was something similar going on in the forums, but we stopped it.

[former_member184657]

Merging???

It will be taken over for peanuts!!!!

@JB: Always reading between the lines and co-relating with host of other things.

pk

Edited by: kishan P on Jan 7, 2009 3:40 PM

[Former Member]

thx Julius for merging my duplicate post into this thread. and btw, all the best for 2009 to you, and of course everyone else in here.

anton

[Former Member]

Ya i got one thing in discussion with my friend Colleague working for satyam who says

'Are tell me now which client will give us the project although we stay'....thunders the situation

Regards

Sas

and regarding the resignation letter who ever reads no one can digest the fact!!

[Lakshmipathi]

I heard from friends circle that after this unwanted happenings, some 50 to 70 peoples have been sent out today (7th Jan'09) and further understand that it will become even worse in the days to come.

[Former Member]

-- I still wonder how could PWC is out of focus in media. After all they are Auditers.

-- Employees may struggle in medium term, but will should find similar placement soon.

-- I used to think, Employees come and go companies are for ever... but its going reverse.

[Former Member]

Shares of Satyam Computer on Friday got battered even further in opening trade and witnessed a level of Rs 6.30, a dip of as much as 85 per cent from its last close on the National Stock Exchange.

The scrip which had witnessed nearly 78 per cent fall in the previous trading session (on January 7), got hammered further and touched an intra-day low of Rs 11.50 on the Bombay Stock Exchange and Rs 6.30 on the NSE.

Regards

Dinesh

[Former Member]

there are rumours that 10k employees might be layed off soon. I wonder how easily the market will handle this.

anton