Satyam Chairman and MD Resigns

abk · 8th January 2009, 04:38

TrueDreamer, bravo! Wonderful post. I appreciate it very much indeed!

And I can't agree more with you over our amateurish media always on constant prowl looking out for sensational stuff, rage & flame it further with emotions and speculations. Maybe they are not to be blamed in isolation. You & I and all of us are the audience. The consumers; the customers. We have stooped too down in this consumerism hysteria especially in the last decade or two. As a consequence we are doled out what we have consciously chosen to prefer. At least the majority of the consumers. But then when the alarm bells are sounded (history repeats itself for those who do not believe in history!) we immediately look for scapegoats and advocate extreme methods of punishment on instant public judgement of the guilty whilst the left half of the brain (or is it the other half?) sleeps blissfully.

Let there be an investigation into the incident. Meanwhile, lets stop to brood over it and look inwards into ourselves. Are we responsible in some way for what is happening around us? Are we even the cause for what is happening around us? Do we turn a blind eye when investment fetches handsome returns?

Lets emerge stronger and use the incident as an effective lesson learned and act socially & ethically or more socially & more ethically not only at work but everywhere. For example, on the roads (right place to post this!

). Personally, I would hold off any judgement until all facts are brought to light. Good night!

theodore_ftw · 8th January 2009, 07:59

Quote:

Originally Posted by mobike008

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

My Bad...i thought you meant the board had no idea

. Guess the only thing to do right now is to ride out the wave (tiger)

theodore_ftw · 8th January 2009, 08:05

Quote:

Originally Posted by TrueDreamer

Good luck to all SATYAM employees, management, investors and all those who are directly or indirectly linked to SATYAM and i pray for a better solution of all of them including Mr. Raju.

P.S: I do not work for SATYAM and i am in no way linked to Satyam.

The Silent One finally speaks! Good pointers mate.

deetee · 8th January 2009, 08:08

I was shocked to see the news 'inflated' by media in the print today.
I didn't expect much ethics from TV but the local print media here in AP is making too much of an issue than what it is actually.

1. During these times , it is the responsibility of everyone (and more of media) to see that loss and damage due to rumors and speculations is as little as possible , for enough has already been done till now.

2.Media is canvassing a scam of 5000 crores and speculating another 10,000 odd by maytas-- utter nonsense. The local media here seems to have found this as nice opportunity to torture the govn. There are more articles on Govt vs Maytas projects than on what has actually happened to Satyam.

3.Sure, the satyam incident might setback Maytas operations but considering that possibility preventive actions must be taken either by Govt. or corporate india. What use is it to speculate and campaign that Maytas too is a scam? That will simply pull down shares of realty and create more loss. Speculations and rumours burn more money than actual actions .
3.Why should only Mr. Raju be highlighted. Just because he has undersigned the papers that revealed the satyam meltdown, it doesn't mean he alone has masterminded the entire thing.It's only that everything has been done with his approval as he held the chair of co. There would be more behind the screens.

4.Where from came the false bank statements that showed inflated cash reserve. Don't expect to hear that Mr.Raju & co has forged them to convince the auditor. Didn't the bankers have some role in it?And why didn't the Govt. yet issue a notice to PWC?

5.Ok, if satyam has tried to cheat , why did everyone get cheated? Is it not our responsibility to check the truth about claims made by other person before we trust them? The government has given crores and crores of land to Satyam and now that the facts have come up, it is ordering a probe as to what has happened . This is just to hide its face and divert attention. Why couldn't government keep strong tabs on the firms operating from its land?

As long as the systems don't improve their blind trust policies , these kind of incidents are prone to happen in future too.

I sincerely hope and pray things will improve in the next few weeks for way too many lives are at stake.

Whenasked · 8th January 2009, 09:06

I am not generalising..but just my observation..

during my stint in taking tech interviews for another company, 90% of the folks from Andhra had always cooked up resumes.

Never seen such a trend from other folks..so that being said..when Mr Raju decided to do some fraud like this does not even surprise me!!!

anujmishra · 8th January 2009, 09:31

In the Raju's letter it was written than no director or member of board or anybody had information regarding inflated profits.

Do Raju did all bookkeeping for Satyam? So absolutely no one has information regarding this.

I am one of the investor in Satyam's Shares. Just day before yesterday I was in profit. Now it is in deep red.

getsurya · 8th January 2009, 09:48

Dear Whenasked,

The rider ridden statement of yours stills conveys and links that Techies from Andhra(90% per YOU!!) are not geniune and so is Ramalinga Raju.

I too can make a similiar statement which is not in good flavour!

I do not want to use this forum or divert from the core topic here but request you not to vitiate the forum's objective of healthy discussion to all the topics we involve in.

Just my 2 Cents!!

w 12 · 8th January 2009, 09:51

Quote:

Originally Posted by kvish

I think govt should step in and see to it that something is done soon and get the company back in shape.
.

Why should the government step in to rescue the company?

In a free market economy ,, companies start & fold up all the time. Why should tax payers money be used to prop up private companies, caught cheating?

Btw, when the going was good , the IT czars & nasscom used to proclaim from the rooftop that IT industry has bloomed , as government has not interfered.

Now why would they need governments help , as soon a rotten apple is found?

Privatisation of profits and nationalisation of losses is crony capitalism at its worst.

jassi · 8th January 2009, 09:52

If Satyam is listed in the US, then they are also subject to SOX act, which was exclusively designed to prevent ENRON like meltdowns. If Satyam is SOX compliant (??), then I am not sure how they managed to do so!!

My sympathies to all satyamites, lets hope you guys get out of this soon. I am guessing a lot of huge IT vendors who sell to satyam, will be losing business (worth millions of dollars) and not making their targets. A ripple effect for sure !!

edit - even if they are not listed in US, but are outsourcing business from other SOX compliant companies, they still need to submit a SAS 70 (statement of auditing standards)

lambuhere1 · 8th January 2009, 10:30

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*************

PS. I am not sure about the authenticity of the information listed above. Kindly make your own judgement, after doing research

theodore_ftw · 8th January 2009, 10:34

Quote:

Originally Posted by jassi

If Satyam is listed in the US, then they are also subject to SOX act, which was exclusively designed to prevent ENRON like meltdowns. If Satyam is SOX compliant (??), then I am not sure how they managed to do so!!

My sympathies to all satyamites, lets hope you guys get out of this soon. I am guessing a lot of huge IT vendors who sell to satyam, will be losing business (worth millions of dollars) and not making their targets. A ripple effect for sure !!

edit - even if they are not listed in US, but are outsourcing business from other SOX compliant companies, they still need to submit a SAS 70 (statement of auditing standards)

Yes the SOX act is applicable to Satyam as well....i have seen media reports that the US judicial system is also looking at investigating and probably initiating criminal proceedings. But not sure how much that would be effective on India!

Steeroid · 8th January 2009, 10:39

Quote:

Originally Posted by jassi

edit - even if they are not listed in US, but are outsourcing business from other SOX compliant companies, they still need to submit a SAS 70 (statement of auditing standards)

HAHA! I had a meeting with the PwC chaps just a couple of weeks back when they were pushing for SAS 70 compliance even though it is not required for us "because its benefits are immense" - just goes on to show how audits and compliance statements are just money-spinners with no real use to anyone.

DKG · 8th January 2009, 10:42

I think its important that as ordinary citizens we don't lose perspective.

Along with the other IT biggies Satyam was involved in huge value creation and was pivotal in boosting the Indian IT industry. The core business must be robust for the company to not only grow to its present size but also earn an enviable list of top clients. The problem is not with the core business.

Two fields in the marketplace that reflect a highly disturbing core is the stock market and the real estate industry. Neither of these are based on strong fundamentals. They both hinge on hype. Hype that can be created by the few in terms of investors who can drive the indices and market prices of land. The stock market allows obscene creation of wealth for the few who can play it well. That money in turn gets siphoned into boosting real estate values through acquisition which can further be cashed in.

Raju obviously fell into the latter game moving away from the core fundamentals of his original business. What is Maytas? Run by two rich kids with zero track record, getting Machilipatnam port and the Hyderabad Metro and other crucial projects. On merit? Afraid not

Its the unhealthy nexus of politics and business that drives the real estate business, something which may be the case across India. And the stock market is a mere tool to leverage to generate wealth not through value creation but hype.

The game as I see it is

Politicians siphoning out tax payer money through cooked projects, usually very large infra projects.

These crooks need another crook by way of an infra company to help them launder the money

Playing the stock market to generate wealth is an easy game for a few big investors or companies. High market cap gives a company leverage to borrow even bigger amounts of money

Raju may be a crook or got caught amongst a bunch of political crooks who made sure he did what he did to survive.

srishiva · 8th January 2009, 10:42

I hope Infosys, TCS and Wipro who might get the Satyam's customers will also be considerate towards Satyam's employees. I don't think they deserved this especially during this bad job market.

ballkey · 8th January 2009, 11:25

Quote:

Originally Posted by w 12

Why should the government step in to rescue the company?

.. <snipped>

Privatisation of profits and nationalisation of losses is crony capitalism at its worst.

I dont agree with this. The Indian government & society has greatly benefited from the IT revolution, that which Satyam was part of. Even if they do not generate employment to the scale India needs, they were fantastic as a PR vehicle. The whole perception of India being a dusty backward 3rd world hell-hole was turned around by this movement.

And the problem with Satyam now is a lack of credibility, due to which debtors,customers may desert it. Banks wont lend to it, acquirers wont touch it for now. This is where the Government can help; they can ensure that Satyam remains solvent, and has the operating capital and the leadership that would enable them to pull-through. Notwithstanding the dubious books, they still seem to be a profitable company, albeit with thin margins. If Ratan Tata gets hundreds of crores in subsidies for setting up a Nano plant, why not Satyam?

8th January 2009, 04:38	#106
abk BHPian Join Date: Sep 2008 Location: NOIDA / Gurgaon Posts: 277 Thanked: 15 Times	TrueDreamer, bravo! Wonderful post. I appreciate it very much indeed! And I can't agree more with you over our amateurish media always on constant prowl looking out for sensational stuff, rage & flame it further with emotions and speculations. Maybe they are not to be blamed in isolation. You & I and all of us are the audience. The consumers; the customers. We have stooped too down in this consumerism hysteria especially in the last decade or two. As a consequence we are doled out what we have consciously chosen to prefer. At least the majority of the consumers. But then when the alarm bells are sounded (history repeats itself for those who do not believe in history!) we immediately look for scapegoats and advocate extreme methods of punishment on instant public judgement of the guilty whilst the left half of the brain (or is it the other half?) sleeps blissfully. Let there be an investigation into the incident. Meanwhile, lets stop to brood over it and look inwards into ourselves. Are we responsible in some way for what is happening around us? Are we even the cause for what is happening around us? Do we turn a blind eye when investment fetches handsome returns? Lets emerge stronger and use the incident as an effective lesson learned and act socially & ethically or more socially & more ethically not only at work but everywhere. For example, on the roads (right place to post this! ). Personally, I would hold off any judgement until all facts are brought to light. Good night!
	() Thanks

8th January 2009, 08:08	#109
deetee BHPian Join Date: Oct 2007 Location: Hyderabad Posts: 485 Thanked: 1,593 Times View My Garage	I was shocked to see the news 'inflated' by media in the print today. I didn't expect much ethics from TV but the local print media here in AP is making too much of an issue than what it is actually. 1. During these times , it is the responsibility of everyone (and more of media) to see that loss and damage due to rumors and speculations is as little as possible , for enough has already been done till now. 2.Media is canvassing a scam of 5000 crores and speculating another 10,000 odd by maytas-- utter nonsense. The local media here seems to have found this as nice opportunity to torture the govn. There are more articles on Govt vs Maytas projects than on what has actually happened to Satyam. 3.Sure, the satyam incident might setback Maytas operations but considering that possibility preventive actions must be taken either by Govt. or corporate india. What use is it to speculate and campaign that Maytas too is a scam? That will simply pull down shares of realty and create more loss. Speculations and rumours burn more money than actual actions . 3.Why should only Mr. Raju be highlighted. Just because he has undersigned the papers that revealed the satyam meltdown, it doesn't mean he alone has masterminded the entire thing.It's only that everything has been done with his approval as he held the chair of co. There would be more behind the screens. 4.Where from came the false bank statements that showed inflated cash reserve. Don't expect to hear that Mr.Raju & co has forged them to convince the auditor. Didn't the bankers have some role in it?And why didn't the Govt. yet issue a notice to PWC? 5.Ok, if satyam has tried to cheat , why did everyone get cheated? Is it not our responsibility to check the truth about claims made by other person before we trust them? The government has given crores and crores of land to Satyam and now that the facts have come up, it is ordering a probe as to what has happened . This is just to hide its face and divert attention. Why couldn't government keep strong tabs on the firms operating from its land? As long as the systems don't improve their blind trust policies , these kind of incidents are prone to happen in future too. I sincerely hope and pray things will improve in the next few weeks for way too many lives are at stake.
	() Thanks

8th January 2009, 09:06	#110
Whenasked BHPian Join Date: Apr 2007 Location: Bangalore Posts: 71 Thanked: 4 Times	No sympathy for satyam I am not generalising..but just my observation.. during my stint in taking tech interviews for another company, 90% of the folks from Andhra had always cooked up resumes. Never seen such a trend from other folks..so that being said..when Mr Raju decided to do some fraud like this does not even surprise me!!!
	() Thanks

8th January 2009, 09:31	#111
anujmishra Senior - BHPian Join Date: Jun 2008 Location: Bangalore Posts: 1,290 Thanked: 492 Times View My Garage	In the Raju's letter it was written than no director or member of board or anybody had information regarding inflated profits. Do Raju did all bookkeeping for Satyam? So absolutely no one has information regarding this. I am one of the investor in Satyam's Shares. Just day before yesterday I was in profit. Now it is in deep red.
	() Thanks

8th January 2009, 09:48	#112
getsurya Senior - BHPian Join Date: Aug 2008 Location: Hyderabad Posts: 1,641 Thanked: 1,929 Times View My Garage	Dear Whenasked, The rider ridden statement of yours stills conveys and links that Techies from Andhra(90% per YOU!!) are not geniune and so is Ramalinga Raju. I too can make a similiar statement which is not in good flavour! I do not want to use this forum or divert from the core topic here but request you not to vitiate the forum's objective of healthy discussion to all the topics we involve in. Just my 2 Cents!!
	() Thanks

8th January 2009, 09:52	#114
jassi BHPian Join Date: Jun 2007 Location: Melbourne Posts: 980 Thanked: 11 Times View My Garage	If Satyam is listed in the US, then they are also subject to SOX act, which was exclusively designed to prevent ENRON like meltdowns. If Satyam is SOX compliant (??), then I am not sure how they managed to do so!! My sympathies to all satyamites, lets hope you guys get out of this soon. I am guessing a lot of huge IT vendors who sell to satyam, will be losing business (worth millions of dollars) and not making their targets. A ripple effect for sure !! edit - even if they are not listed in US, but are outsourcing business from other SOX compliant companies, they still need to submit a SAS 70 (statement of auditing standards) Last edited by jassi : 8th January 2009 at 09:59.
	() Thanks

8th January 2009, 10:30	#115
lambuhere1 BHPian Join Date: Oct 2005 Location: @ Driver's Seat @ Posts: 708 Thanked: 106 Times	PwC audited companies: Got the link Apar Inds. Apeejay Tea APW President Arshiya Intl Assam Carbon Pr Automotive Stamp Bayer CropScien Beeyu Overseas Bimetal Bearings Blue Dart Exp. Bosch Bosch Rexroth California Soft. Century Enka Chemplast Sanmar Colgate Palmoliv Coromandel Fert Cummins India D P S C Denso India Dynamatic Tech. Elpro Intl. English Ind.Clay Entertainment Nt Gabriel India Gateway Distpark Gillanders Arbut GIS Glaxosmit Pharma GlaxoSmith C H L Glenmark Pharma GMR Inds. GMR Infra. Goodyear India Graphite India Great Eastern En Guj Gas Company Harr. Malayalam HCL Infosystems HCL Technologies Hikal Hind.Powerplus Hinduja Ventures Holman Climax Honeywell Auto Hooghly Flour HTMT Global IFGL Refractor Ineos ABS (India Info Edge (India Infotech Enterpr Ingersoll-Rand Insilco Jagran Prakashan Kanumanek Trad. Karamch.Thapar Kennametal India Kesoram Inds. Lanco Infratech Marico Maruti Suzuki Mastek Max India Mcleod Russel Millennium Beer Morganite Crucib Moser Baer (I) Motherson Sumi NDTV Nicco Parks NIIT NIIT Tech. Northgate Techno Orissa Extrusion Parry Agro Inds Perfect Circle I Phillips Carbon Piramal Health Piramal Life PVP Ventures Rain Calcining Rain Commodities Rane (Madras) Rane Brake Lin Religare Enter Religare Global S.N. Sunderson Saint-Gob. Sekur Samtel Color Sanderson Inds. Saregama India Satyam Computer Schrader Duncan Simplex Infra South Asian Fin. Sparsh BPO Spentex Inds. Stewarts & Lloyd Subhkam Capital Sulzer India Swaraj Mazda Swojas Energy T.V. Today TIL Tinplate Co. Trigyn Techno. Tudor India United Breweries United Spirits Usha Martin UT UTV Software Vijay Inds. Warren Tea Welspun India Wyeth Zensar Technolgs ************* PS. I am not sure about the authenticity of the information listed above. Kindly make your own judgement, after doing research
	() Thanks

8th January 2009, 10:42	#118
DKG Senior - BHPian Join Date: Feb 2008 Location: Hyderabad Posts: 3,711 Thanked: 1,389 Times View My Garage	I think its important that as ordinary citizens we don't lose perspective. Along with the other IT biggies Satyam was involved in huge value creation and was pivotal in boosting the Indian IT industry. The core business must be robust for the company to not only grow to its present size but also earn an enviable list of top clients. The problem is not with the core business. Two fields in the marketplace that reflect a highly disturbing core is the stock market and the real estate industry. Neither of these are based on strong fundamentals. They both hinge on hype. Hype that can be created by the few in terms of investors who can drive the indices and market prices of land. The stock market allows obscene creation of wealth for the few who can play it well. That money in turn gets siphoned into boosting real estate values through acquisition which can further be cashed in. Raju obviously fell into the latter game moving away from the core fundamentals of his original business. What is Maytas? Run by two rich kids with zero track record, getting Machilipatnam port and the Hyderabad Metro and other crucial projects. On merit? Afraid not Its the unhealthy nexus of politics and business that drives the real estate business, something which may be the case across India. And the stock market is a mere tool to leverage to generate wealth not through value creation but hype. The game as I see it is Politicians siphoning out tax payer money through cooked projects, usually very large infra projects. These crooks need another crook by way of an infra company to help them launder the money Playing the stock market to generate wealth is an easy game for a few big investors or companies. High market cap gives a company leverage to borrow even bigger amounts of money Raju may be a crook or got caught amongst a bunch of political crooks who made sure he did what he did to survive.
	() Thanks

8th January 2009, 10:42	#119
srishiva Senior - BHPian Join Date: Nov 2006 Location: Bengaluru Posts: 4,375 Thanked: 2,256 Times	I hope Infosys, TCS and Wipro who might get the Satyam's customers will also be considerate towards Satyam's employees. I don't think they deserved this especially during this bad job market.
	() Thanks