[ECM]

Today evening One business media channel was reporting some story in Maytas where its turnover jumped from 220 odd crores to 1600 crs,few other points they also raised,check it out.

[Zappo]

Looks like Satyam has 1700 crores as receivables as of date (Deepak Parekh's statement in today's ET online edition). Now that actually sounds pretty good. I am sure that Oct onwards (new quarter) they would have collected receivables till at least mid to end November when all of a sudden things went into a tizzy. So if 1700 crores is the receivables for Dec and Jan till date I think it will be fairly safe to assume that quarterly revenues are well above 2000 crores. Thats pretty much in line. Hmmm... there are some pointers here I guess.

[typeOnegative]

Originally Posted by Thad E Ginathom

After being given a fair trial.
..... So, yes, I'd take them out and shoot them!

Shoot people if they are proved guilty. But a blanket statement like what you are making is not very nice. I think this forum has enough educated people like you who can be objective and wait for things to clear up.

There are some ways in which money can be taken out without the auditors knowing (to the best of my limited knowledge):

1. If the banks collude
2. If the money is taken out after the audit

Please remember that the last quarterly audit, which is more of a review, was in September. Mr. Raju had quite some time to take out the money. While the auditors may have colluded or been grossly negligent, we do not know that yet. Even Mr. Raju needs to be heard out before he is judged.

Will you retract your statement and apologize if the auditors are proven innocent?

[DKG]

Sometime back I had suggested Satyam's client base and employees are split into a new company leaving the liabilities and assets in another. Interestingly ET carries an article today suggesting something similar

I personally feel that unless the client base and employees are unhinged immediately from the financial mess Satyam will start losing its core value soon ie both clients and employees

[srishiva]

Originally Posted by DKG

Sometime back I had suggested Satyam's client base and employees are split into a new company leaving the liabilities and assets in another. Interestingly ET carries an article today suggesting something similar

I personally feel that unless the client base and employees are unhinged immediately from the financial mess Satyam will start losing its core value soon ie both clients and employees

They cannot split. They have to start a new company and convince clients to move their business to the new company. They have to spend on capital costs etc., which is not a small thing. It will not be smooth transition to the clients. They would like to move the business to some new vendor which would be easier for them.

The assets that Satyam holds cannot be split also. Its like starting a new company with people as the only transferable assets.

[DKG]

I have zero knowledge of company laws in India and how this can be done but can't the liabilities and assets remain as one entity which leases the assets to a new division comprising the client base and employees?

Satyam's creditors may not approve initially but unless the cash flow issue is resolved immediately you will have a deadlier problem of employees and clients leaving, which no doubt would bury the company. And if that happens then creditors lose even more.

If the revenue stream of the core business gets reinstated quickly by way of divesting the client and employee base with infusion of fresh capital then the company as a whole has a fighting chance of weathering this fiasco. Creditors could actually look forward to securing their stakes once the core fundamentals are in order.

Just a thought, perhaps too simplistic

[manolin]

There are lots of problems- the fresh company being a subsidiary of Satyam does not solve any problems...Satyam will then be asked to pay its debtors from its assets, which will include its subsidiaries.

and if the service contracts are comprehensive enough, there should be provisions in them to prevent unilateral assignment of satyam's rights in them.

[Thad E Ginathom]

Originally Posted by typeOnegative

... ... ... Will you retract your statement and apologize if the auditors are proven innocent?

Of course! But I think it much more likely that they'll squirm out through some sort of "to the best of our knowledge and ability and with the information available to us blah blah".

[typeOnegative]

Originally Posted by Thad E Ginathom

Of course!

Thank you.

Originally Posted by Thad E Ginathom

But I think it much more likely that they'll squirm out through some sort of "to the best of our knowledge and ability and with the information available to us blah blah".

A statutory audit is done "to the best their knowledge and ability and with the information available to them". Your cynicism is understandable though.

In any case, shooting someone is still too strong a punishment.

Cheers.

[amtak]

I am proud to say that I work with Mr. Basab Pradhan.

[typeOnegative]

Good for you Amtak.

Why is Phaneesh Murty on that list?

[Thad E Ginathom]

Originally Posted by typeOnegative

Thank you.


A statutory audit is done "to the best their knowledge and ability and with the information available to them". Your cynicism is understandable though.

In any case, shooting someone is still too strong a punishment.

Cheers.

I do not approve of capital punishment: my shooting would be strictly metaphorical!

Notwithstanding the get-out clauses, they have patently failed to protect the shareholders, to whom I would guess (as a non-lawyer) their first duty lies.

[typeOnegative]

Originally Posted by Thad E Ginathom

I do not approve of capital punishment: my shooting would be strictly metaphorical!

Fair enough.

Originally Posted by Thad E Ginathom

Notwithstanding the get-out clauses, they have patently failed to protect the shareholders, to whom I would guess (as a non-lawyer) their first duty lies.

The whole point is whether the auditors failed the shareholders or whether it was someone else who did. What has not been very clearly identified is whether it was an accounting issue or plain and simple robbery.

[Thad E Ginathom]

True. It is a major feature of this 'fraud' that no-one seems to know what it was yet.

We must just wait and see...

[spadival]

For a start, I think they should change the name of the company. Brand Satyam is dead and buried. Also, the board should shave off the top level leadership, probably from the VP level onwards - especially those who sold their stock options last year, including that Mynapathi chap. There is no way someone at a VP level wouldn't have known whats going on!!