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Old 24th January 2009, 05:38   #421
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Story about how the thief was also scamming using his charitable organization - click here.
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Old 24th January 2009, 06:18   #422
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Originally Posted by rajismine View Post
Hey Kreddy,

he did not have cash to pay salaries this month

could not arrange fund personally anymore

markets were down and company had to report earnings

The MAYTAS acquisiton failure along with World Bank statements led to enquiries

Some issues with Merril Lynch

Thus he had to confess under personal stress ....
This is what I still dont get....
If I were a top-notch CEO and in the same position, I would do every damn thing that I could, to avoid going to jail and risking reputation.

This would include selling everything I got, or even selling the company, for a pittance. After all Raju still has some political mileage, and it's hard to believe there was no source of funding.

I think the following are the likely options:
- He was made a fall-guy in a much wider scam which involves even bigger higher-ups - and probably told it's best for him to do so. See Abdul Karim Telgi..

- He has a massive ego, and would rather see the company(his own creation) die, rather than seeing it in other's hands.

- He believes he can still get out of this, and has amassed a huge fortune to be put to use when he gets out.

I'm no way defending Raju here - I'm only questioning the reasoning/timing behind his letter.
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Old 24th January 2009, 08:02   #423
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Originally Posted by ballkey View Post
This is what I still dont get....
If I were a top-notch CEO and in the same position, I would do every damn thing that I could, to avoid going to jail and risking reputation.
He tried it - with the Maytas buying thing in Dec - it failed.

Quote:
This would include selling everything I got, or even selling the company, for a pittance. After all Raju still has some political mileage, and it's hard to believe there was no source of funding.
The scam was in the range of 5000-7000 crore. I doubt even if Bill
Gates could sell all his personal assets to make up that kind of money.
And he can't sell the company - he was a minority stock holder in the
company. And even if he couldn't it wouldn't cover that kind of
money.


Quote:
I think the following are the likely options:
- He was made a fall-guy in a much wider scam which involves even bigger higher-ups - and probably told it's best for him to do so.
Unlikely. Surely the scam is going to be much wider, but he is going to
emerge as the key player in the wider scam.
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Old 24th January 2009, 10:24   #424
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Originally Posted by anurag_p80 View Post
Why is the stock up 30% today? Does the market know something that we dont?
I realised the reason when I read the newspaper today; L&T has upped it's stake and bought around 4 crore shares
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Old 25th January 2009, 06:26   #425
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Originally Posted by Guna View Post
I realised the reason when I read the newspaper today; L&T has upped it's stake and bought around 4 crore shares
Imagine the amount of money that has been turning hands in this scrip. On friday alone, the share traded something in the region of 70 million. For the last week, it has been churning out volumes of 30-40 million everyday - a speculators dream come true. I wish I had picked it when it was trading around the 20 levels...Sigh !!
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Old 25th January 2009, 09:57   #426
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Originally Posted by kuttapan View Post
Imagine the amount of money that has been turning hands in this scrip. On friday alone, the share traded something in the region of 70 million. For the last week, it has been churning out volumes of 30-40 million everyday - a speculators dream come true. I wish I had picked it when it was trading around the 20 levels...Sigh !!
I belive still it offers opportunity for both short term and long term returns. But yes, there is an angle of risk.
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Old 1st February 2009, 11:37   #427
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And now, the question that everyone had on their lips but were scared to ask:

Were Satyam clients dummies?- Software-Infotech-The Economic Times

No assets, no cash, no employees and now no clients. This is not a scam - this is MAGIC!
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Old 1st February 2009, 13:00   #428
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But with so many uncertainties, why are the shares still being traded at such volumes?

And the signs from L&T, what do they know that none of the others know? They were one entity who was buying Satyam shares for some time now. And now, they seems to have shown interest in a buy out.
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Old 1st February 2009, 20:09   #429
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Originally Posted by Steeroid View Post
No assets, no cash, no employees and now no clients. This is not a scam - this is MAGIC!
Cant say about Cash but Assets, employees and clients are all very much there.
Also there was substantial cash generated in mid January so that the salary and liabilities are taken care off till March.

Abhi

Last edited by akroy : 1st February 2009 at 20:10.
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Old 1st February 2009, 21:19   #430
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Reg the employees count, the PF Dept says they have accounts of only 43,000 odd employees.

Last edited by finneyp : 1st February 2009 at 21:24.
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Old 1st February 2009, 21:34   #431
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Reg the employees count, the PF Dept says they have accounts of only 43,000 odd employees.
Yes thats right and the remaining 10K are the people based out of satyam locations in other countries. Well TOI forgot the basic idea that people based out of other countries don't have to hold a PF account in India.

In fact, Times of India group never cared about the authenticity of their news' about satyam ever since this issue started. They owe a big apology to the satyamites for misleading us with lots of false news' during the initial days of this problem.

Last edited by Mission_Safari : 1st February 2009 at 21:42.
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Old 1st February 2009, 21:40   #432
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Sigh!! Anyone remember the Harshad Mehta case from the 90s?

Razu will be sentenced for 5 years, he will come out in 1 or 2 and lead a happy life ever after.

Last edited by Mpower : 2nd February 2009 at 05:48.
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Old 1st February 2009, 21:58   #433
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Hmm so much heat about Satyam. Let me share my take on a few points raised.

@ kuttapan

As against 72627285 shares of Satyam traded on the NSE on Friday, only 23.66% or 17182214 shares are deliverable!

@ Steeroid

A lot of people always suspected that Satyam was inflating its turnover. One way of doing this is through fictitious clients and contracts. If this is true, there is no income and therefore, no siphoning off of funds. The fictitious fixed depisits would then be a reflection of this income which never existed. If this is true, the true magic is = the vanishing act done by the 'fraud'. Gets curiouser and curiouser, does it not?

@ finneyp

The PF dept says there are 43,000 permanent employees for whom PF contributions are due, thereby excluding temps, trainees, interns and those who do not have to contribute to PF, e,g, employees who are not on the rolls within India.

Incidentally the PF department is totally out of line in filing their criminal complaint. The contributions for December are payable only in mid January, by that time the old board had ceased to exist and the company was being managed by a board appointed by the Government of India under the directions of the Company Law Board. M/s. Raju were not in charge of the affairs of the company on the due date for payment. Just for laughs, the Rajus could argue that the Superintendant of the Jail is responsible for the default in payment as he prevented them from going to the PF office and making the payment!!

@ HappyWheels

Uncertainity causes volatility in the scrip, providing opportunities for making money on the sharp ups and downs. See the 23.66% deliverable quantity on Friday. This means that of the people who sold the shares on Friday, only 23.66% have to deliver the shares, the others having bought it the same day, e.g. I have no shares in Satyam, I buy a 1000 shares in the morning at say Rs.45/-, then I sell then I sell all 1000 shares in the afternoon at rs.54/-, I do not have to deliver the shares as my sale is squared off against the purchase.

L&T seems to be taking a calculated gamble, after all Satyam has no liabilities like term loans etc. They have only the normal operating current liabilities.


Cheers.
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Old 1st February 2009, 22:04   #434
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Originally Posted by akroy View Post
Cant say about Cash but Assets, employees and clients are all very much there.
So perhaps what ET meant by that report were that Satyam's clients were dummies, as in bozos/morons?

As allegations of a complex money-laundering and 'hawala' operation start flying around this looks more like a complex financial Special Purpose Vehicle than a software company - what they're essentially saying is that Satyam didnt really have so many clients and that the 'clients' were created only to facilitate the inward movement of dirty money as income from Software Services.

Perhaps the taps ran dry in the light of the financial collapse worldwide, hence they couldnt keep showing so much 'income' and had to engineer a 'collapse'?

Edit: Dont mind me - I love conspiracy theories Of course they were a software company - 2 of the companies I worked for were their clients, genuine ones that had Oracle Apps implemented.

Last edited by Steeroid : 1st February 2009 at 22:20.
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Old 1st February 2009, 22:07   #435
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Originally Posted by Mission_Safari View Post
Yes thats right and the remaining 10K are the people based out of satyam locations in other countries.
Hmm... Not sure that I will buy that argument.

Not all of the remaining 10K would be non-Indians, right?

Put it in a different way. Most (at least, a significant number) of the off shore employees would have been sent after a stint in India, right? What happens to those account? Not every body would simply close those PF accounts - mostly because they would be planning to come back.
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