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Old 7th January 2009, 16:28   #61
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Originally Posted by theodore_ftw View Post
..........Are you saying that the Satyam Management/Board was not aware of this? Dude, the company is declaring false profits purely to stay ahead of competition. I know everyone does it. Its just unfortunate that it became unmanageable (like the letter claims). Its a case of pure forgery of accounts and nothing else.
Frightening as to what worms are still in the woodwork.
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Old 7th January 2009, 16:28   #62
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Originally Posted by mobike008 View Post
So, pray that a reputed company like IBM or HP gobbles up Satyam.
Lets hope not HP.

HP Announces 24600 Layoffs in Wake of EDS Acquisition - PC World
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Old 7th January 2009, 16:29   #63
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Heard HP was interested to acquire Satyam or at least major stake.
HP, having eaten EDS and thereby indirectly MphasiS, has its plate full for the meantime. But then, you never know what a bargain hunter might get!
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Old 7th January 2009, 16:34   #64
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MAYTAS is nothing but Reverse of SATYAM. So fraud is his mind from day one.

I just had word with few of my friends working there, they all are waiting now for new home, as its really hard to get out and look for job.

One word, he screwed up image of Indian IT companies.
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Old 7th January 2009, 16:38   #65
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Originally Posted by VooDoo View Post
Just a little correction, it is not his money, as per his resignation letter, he wooed investors to get this money which has no trace. Given what he has done systematically over the years, you never know where this 1200 crores went.
The money was raised by pledging shares owned by promoter and pumped in to the company ( as per his own admission). as it was done to cover up inflated profits it could not be shown in books.


greed in the root cause for the demise of many great people and empires in the history.

history repeats itself
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Old 7th January 2009, 16:40   #66
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Originally Posted by diabloo
Thats a mischievous statement. Consumers buy the car, check in & out. Nothing can be hidden. Nobody to cook up the books and fool everybody.
benbsb29 was talking about awards given by auto-mags, not customer ratings. And even without the Sathyam-fiasco as an example, we all know that the auto-awards are not without their own bias - for favours received. So, IMO he does have a point.
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Old 7th January 2009, 16:41   #67
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Originally Posted by appuchan View Post

Regarding some company buying out Satyam, its highly unlikely that anybody would be interested to buy 53,000 "expensive" employees with 3% operating margin and zero bank balance.
All the best to Satyamites.

From Raju's letter it seems we still have a considerable bank balance. How did you arrive at the zero bank balance figure? Also care to explain the reason behind the term 'expensive' employees .
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Old 7th January 2009, 16:45   #68
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Originally Posted by Mission_Safari View Post
From Raju's letter it seems we still have a considerable bank balance. How did you arrive at the zero bank balance figure? Also care to explain the reason behind the term 'expensive' employees .
Kind advise my friend. Can you not make any statements in a public forum please. You might be at stake. Its always safe to be careful. My two cents
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Old 7th January 2009, 16:56   #69
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They sure are looking for places to cover, especially PwC. Arther Anderson was split into several different companies one of which is Accenture. But what has happened here is just so incomprehensible. You have one of the so called stars of Glitzy Indian IT Offshoring stories licking dirt now, I shudder to think what is the case with Maytas. Or for that matter, other such companies which have made their fortune in last 5-7 years during the stock boom period and are still family controlled. Since we indians don't believe in transparency & have such lax laws, they will surely get away, PwC will remain PwC and there will be many more Satyam coming out in open in future as well.

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Now that award body must be looking for places to hide. Who would want their golden peacock in 2009?

Yup, that's how one of the largest auditing company Aurthor Anserson is no more, they extended the same co-operation to Enron.
Europe is still awake and will shortly be reacting as they are yet assessing the damage done by this utter crap. FIIs are not known to react in a jiffy and you will see a reaction sooner than later.

http://www.marketwatch.com/news/story/collateral-damage-feared-indias-enron/story.aspx?guid={3C326377-B0BC-4CF8-A5CA-ED981643D3AA}

Bloomberg.com: Asia

UPDATE 2-India's Satyam chief quits, says profits inflated | Reuters

On the other hand, I find the below statement of NASSCOM purely laughable.

"While the law will take its own course, this incident is particularly unfortunate as the Indian information technology-business process outsourcing industry had set very high standards of ethics and corporate governance," the influential National Association of Software and Service Companies said in a statement.


"This is a stand-alone case of failure of corporate governance and it is critical that it be viewed in this light," Nasscom added.

Clearly, NASSCOM doesn't understand or wants to hide that fact that Indian IT & BPO outsourcing companies use underhand tactics to win projects and then try to run the business with ineffiecient hands. For once, I do know how one certain company hired absolutely crap manpower to run a project which they were completely unable to handle and were certified incapable by their foreign auditors. Alas, some under the table tactics saved the day for the executives but it is still running by short-changing here and there. Examples are aplenty and you don't need to look behind the corners with microscope to find these parasites. They are walking-talking all around you screwing the complete ecosystem of Indian Business.

PS: News - Banker Merrill Lynch terminates Satyam ties.


Quote:
Originally Posted by theodore_ftw View Post
US would start waking up in a couple of hours....But i guess Europe is still awake! ...

... They are asking the obvious question....Is it really true that he did not know all this was happening?

I don't think its possible. I feel Raju is just being used as a scapegoat. Everyone would have been hand in glove with this inflated books build up over the years.

Last edited by given2fly : 7th January 2009 at 17:00.
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Old 7th January 2009, 17:03   #70
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Default Absolutely SHOCKING

Bhpians pls read the letter Chairman Raju wrote to its board.

It is absolutely shocking to say the least.

MK.
Attached Files
File Type: pdf Satyam_Computer_Chairman Raju's Letter to its board.pdf (157.3 KB, 182 views)
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Old 7th January 2009, 17:11   #71
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Scary state of affairs indeed, but honestly its not entirely unexpected, and whats worse is that Satyam is not the only company to have cooked its books. Everyone who has even a little exposure to the corporate world knows the kind of shenigans that these honchos cook up. Lets face it, some of the largest Indian cos have feet of clay.

Satyam was plain unlucky to have been caught, but dont for a minute think that this is the end of it.

As regards the role of the auditors, well, what else do you expect? Their modus operandi is very simple. They are not designed to find instances of fraud. In most cases, they rely on the management declarations, and they do insert the disclaimer that the books seem to be accurate based on the information that is supplied by the management. No one expects fraud on this level. Cases such as these blowing up are few and far between. Other cos who cook their books either do not do it to such an extent, or ensure that they balance the books in subsequent years.

As regards all the Satyam employees, our sympathies are with you. Hope this moment of darkness passes soon, and things start looking better before long.
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Old 7th January 2009, 17:17   #72
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an excerpt from ET article:
"..
During the period from December 23, 2008, to January 5, 2009, the Trust Company sold 38.97 lakh Satyam shares held by DSP Merrill Lynch, 74.15 lakh shares held by DSP Blackrock and 47.06 lakh shares held by Deutsche Bank.

The company has also sold 50.02 lakh shares of Satyam held by HDFC Mutual Fund and 35 lakh shares held by IL&FS Financial services, the filing added.
.."
The original article

Imagine what would have been the fate of HDFC mutual fund had they not sold their 50.02 Lakh shares when the price was hovering around Rs.150.

Surely the top corporates knew something very sinister is going to come off Satyam crisis. So , they have taken their gaurd but the loosers here are company employees and small scale investers.
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Old 7th January 2009, 17:20   #73
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If the award given by auto-mags is fraud (that means a lemon was given the award), customer will know immediately in the test-drives, discussion forums. That magazine loses credibility. Just like 'Golden Peacock' award for Satyam.

Has a 'Golden Peacock' happened to auto-mag awards? If no then this is a baseless & unwarranted comments about awards given by auto-mags.
Quote:
Originally Posted by supremeBaleno View Post
benbsb29 was talking about awards given by auto-mags, not customer ratings. And even without the Sathyam-fiasco as an example, we all know that the auto-awards are not without their own bias - for favours received. So, IMO he does have a point.
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Old 7th January 2009, 17:23   #74
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Originally Posted by Samurai View Post
Yup, that's how one of the largest auditing company Aurthor Anserson is no more, they extended the same co-operation to Enron.
ARTHUR ANDERSON. I was working for the Andersen Consulting group which broke away and spun off into Accenture, sad to lose that nametag initially but very happy later on.

In this case it looks like Price Waterhouse Coopers (PwC) are Satyam's auditors. Given the size and scale of creative accounting implemented in Satyam's books I really wonder whether they can indeed claim ignorance. Forget golden peacocks - somebody should give PwC the Golden Egg.
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Old 7th January 2009, 17:24   #75
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Originally Posted by theodore_ftw View Post
Sorry to disagree with you on this Mobike, but i am putting a quote from Raju's Letter to the Satyam Board below
Amit, I am also a receipient of that letter. What i meant was regular employees will have absolutely no clue what is happening at the Board level and this would be same across any company.

So whatever fraud has happened it was at a board level and poor employees have to bear the brunt of it.

Let's see how many employees are finally left once the dust settles from the proclaimed 53K
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