Team-BHP - Satyam Chairman and MD Resigns

he seldom says,
I am now prepared to subject myself to the laws of the land and face consequences thereof.
Dear TrueDreamer this saga reminds me old scam of Tick wood plantation,the current one is modified one.Let the Law take care of such criminals.

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I agree but is hanging Mr Raju the solution ? Also even sending him to jail would be worthless unless the regulators and law wants to set this as an example as this is not going to make any big difference to the investors who lost their hard earned money.

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Originally Posted by MontyKING (Post 1122323)

The government should stepin and stop companies from laying off employees (point in general). Companies should settle for lower margins rather than issuing pink slips.

I read somewhere that the real profit margin for Satyam for the last quarter was a mere 3% !! How can they reduce that any further?? The company has no cash reserves to sustain the operations at a loss, all the promoters/major shareholders have either pledged or are selling off their stake in distress sale. Lets get real, the writing is on the wall.

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Originally Posted by TrueDreamer (Post 1122224)

I agree but is hanging Mr Raju the solution ? Also even sending him to jail would be worthless unless the regulators and law wants to set this as an example ...

There can be no solution; jailing a murderer does not bring back a life --- but of course an example should be set, and of course criminal fraud should be punished with imprisonment. What else? a pat on the back and tell him to be more careful next time?

I don't often have to convert rupees to UK pounds these days to get a grip on value, but this one, 7000 crore, I had to write out the zeros and --- it's in the order of a billion pounds, if I got it right?

As to the damage done... well, I have seen a comment already on The Register: Sci/Tech News for the World that made me very sad. The damage is to the whole of India, and it would seem very likely that customers will not move to Satyams's competitors here, but they may well take their business elsewhere. The damage to one of India's leading internation sectors could be immense. I really, really hope that it is not.

My first reaction to the news, by the way, was that the auditors should be taken out and shot.

Dear BHPians -

As a Satyam Employee, the downfall has started.

My HDFC Titanium Card limit has been reduced to INR 11000 from INR 1 Lakh with an outstanding of INR11000. So basically i cant use the card!

Others have had their limits reduced from INR 3 Lakhs to INR 5000!

I got to know from a reliable source @ HDFC that all Loans (Home, Auto, Personal) for Satyam Employees have been stopped effective immediately.

I have already called HDFC and told them to shove the card since i am very much impressed with the service that they have provided.
They should review the limits based on the usage and the payment frequency and not on where the employee works! And the best part is that when you call up the helpline they have a standard response "HDFC Bank reviews the limits on the cards at regular intervals". I guess this was a trigger for them to start delimiting the cards to reduce chances of fraud.

In fact going from this experience i have also moved all funds from my HDFC Salary Account incase they decide to freeze them during any investigations. I would highly recommend the same to other BHPians who are employees of Satyam and have salary accounts. You CANNOT TRUST HDFC. Better to be safe than sorry. :Frustrati

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Originally Posted by spadival (Post 1122372)

spadival, my point was in general, not meant for satyam. Other companies ,who have performed quite well in past few years, are quite desparate to maintain their margins at any cost (even layoffs). So this is distressing.

Cheers
MK

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Originally Posted by HappyWheels

EDIT: Satyam say that they went by the auditors statements and PWC say that they made the statement based on the data they were provided! Talk about passing the buck, this is a 7,000 Crore buck!

I spoke to a friend of mine who is a CA and works for an auditing firm. He was telling me that when doing audits they dont really have access to all the data, and in a lot of cases they are dependent on the data which are provided to them by the company. Its usually a case of trust which is relied upon, except when some doubt arises.

This is definitely not the case, these guys usually have full authorization to ask for whatever data that may be relevant to the scope of Audit.
In fact IMO often these auditors get into trivial details harassing the employees, rather than looking for what they are really supposed to focus on.

You mean companies with Indian damagers (err managers!), whose IQ/EQ/GQ etc etc is smaller than the size of a peanut. Frankly speaking, the cost cutting is only true to die hard extent where they had leveraged their position in the market too much. Look at any indian company (be it IT or consulting or retail or anything else). Since Indian management mantra is not to layoff, they are now down to cost cutting so that everyone has a sucker of a job to carry on with. Because their stupid managers didn't have the audacity to say to their superiors that they are overstaffed and kept hiring from B schools & engineering colleges. I hate it when a mechanical or civil or electrical or some other type of engineer is hired by an IT company because they need the bloody numbers to sell their projects and cripple the rest of the areas in engineering and economy. Do you know for a fact that there are hardly any new mining engineers in the current generation. If that doesn't affect economy & other far more critical sectors, I don't understand what will. Companies India and abroad are dying to get engineers in other crucial fields and here we are debating how & why a company is sinking and why government should protect it. Yes, there will be job losses, but that is how capitalism is. You earn for your innovation and you pay for your mistakes. Reminds me of a proverb...

For want of a nail the shoe was lost.
For want of a shoe the horse was lost.
For want of a horse the rider was lost.
For want of a rider the battle was lost.
For want of a battle the kingdom was lost.
And all for the want of a horseshoe nail.

PS : Anyone who is looking to nuke me for accusing 'Indian Managers', disclosure (really?!) is that I am, despite being an Indian, not proud of our achievements because they have led us to a point where we are in a herd mentality which is causing new ideas and innovation to die. This driven by greed mantra of winning projects doesn't make me proud of my origin at all. As much as all are not the same type, the good type is too rare these days. Anyway, enough of bashing, I am signing out of this depressing thread for good now. Have a nice day or night folks, whatever it is at the moment. Chao.

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Originally Posted by MontyKING (Post 1122552)

If one sees carefully there is no need for cost cutting measures,speaking honestly like cases of Enron etc,all employees incl.CEO used to get more salary then they deserved,this applies to all IT guys working in India,sorry but this is HARD FACT.What our member Aerohit said is 100% true

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Obviously there is a flaw in the global system that allows an American to get paid more than an Indian for the same amount of work. This imbalance and 50-year-old-flaw is slowly changing for the good as the world wakes up and realize how poorer countries have been victims of "dollar" hegemony and unfair Tarriffs for a Century!

here this also applies to earning factor as well,don't miss beautiful post of this guy,worth a read indeed.
http://www.team-bhp.com/forum/shifti...ur-jobs-7.html

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Originally Posted by TrueDreamer (Post 1122224)

Just heard that an arrest warrant has been issued against Mr. Raju by the centre.

Sure about this ?

Anyway, as mentioned earlier, auditors also work on the basis of trust and DO NOT have FULL access to all data. They might have been fallen off with whatever the management provided/fed them with.

Question now comes is where has the MONEY disappeared ? Another PONZI scam in here, but in a sohpisticated way ?

My heart goes for all the satyamites. Limits down, fear of job lossess, depression and much more. Take care of yourselves guys. Family is more important in life than anything else.