Satyam Chairman and MD Resigns

diabloo · 8th January 2009, 13:24

Not surprisingly, Satyam's independent directors are now trying desperately to distance themselves from the mess.
The independent directors included

Harvard professor Krishna Palepu (whose primary area of interest is 'corporate governance'),
Indian School of Business Dean M Rammohan Rao,
Entrepreneur Vinod Dham,
Former Cabinet Secretary T R Prasad.

ST7677 · 8th January 2009, 13:26

Quote:

Quote:
Originally Posted by TrueDreamer

Are the investors not greedy? Why do FIIs and VCs invest in India ? They do it only to make x times what they have invested. Who is not greedy?

Again, it is like saying "My neighbour is a thief and he is rich. So I want to be one too"

I would say it is ok to be greedy as long as you are doing things within the specified socially accepted norms.

hondadude · 8th January 2009, 13:33

Quote:

Originally Posted by ballkey

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.

Honestly, do you expect Govt to help companies that have fudged books and banned by respectable organizations like World Bank. That will bring Govt credibility into question (not that it has much of it anyway).

Quote:

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.

And this is not because of bad economy or other external forces. This has been their own doing.

Quote:

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?

It is hard to fudge books to the extent that has been done in Satyam without wider set of folks to know about it. I, for one, find it very hard to believe that nobody except for Raju knew about it. C'mon, are we so gullible to believe that ?

My heart goes out to Satyam employees who must be really worried lot right now and rightly so.

crn12 · 8th January 2009, 13:47

Just got the news that Maytas Ltd chairman RC Sinha rsigns.
I wonder what were the independent board of directors doing, most of them are from very reputed institutions, this says that people can go mess up with anything without being caught, irrelevant to where you work study or come from.
With regards to the govt i don't see a reason as to why they have to end up saving Satyam as a consequence again loosing tax payers money. They need to act quickly and close all loop holes in the system.

jango · 8th January 2009, 14:00

Latest Update : Satyam's Raju untraceable. Could have left for US or Dubai.

Source: Satyam's Raju untraceable, Sebi team in Hyderabad-India Business-Business-The Times of India

HappyWheels · 8th January 2009, 14:22

Quote:

Originally Posted by jango

Latest Update : Satyam's Raju untraceable. Could have left for US or Dubai...

Now this is getting more interesting!

Seems like more skeletons are falling out, if one read's the related story in the online editions!

IronWolf · 8th January 2009, 14:40

This is getting more and more interesting.

Spoke to someone from the media. Speculation is...

1) Dubai
2) US
3) Undisclosed location in India (most unlikely)

Also his letter to SEBI was sent when he was already out of the country.

kutlee · 8th January 2009, 14:43

yes. he has told that he was getting prepared to face the rules of the land (and that he was leaving ) best kanna best!!
madoff, are you listening?

HappyWheels · 8th January 2009, 14:49

Quote:

Originally Posted by kutlee

yes. he has told that he was getting prepared to face the rules of the land (and that he was leaving ) best kanna best!!
madoff, are you listening?

Well, he never said which land, did he!

jassi · 8th January 2009, 14:55

wow the guy disappeared - I am sure it must be dubai, as US there are too many risks, given that they now face law suits in the US too.

On the other hand, it may just be media hype and he could be in a flight on his way back to india from texas and hence unreachable

Jokes apart, hope the satyam employees are taken care of soon, must be horrifying time for them

sammyboy · 8th January 2009, 15:08

Well i have a different theory

I think this guy might not have fudged the books, he simply siphoned off all this money showed it as inflated books, bribed the right guys and ran off.
I know I know been reading too many spy novels

hondadude · 8th January 2009, 15:23

Quote:

Originally Posted by sammyboy

Well i have a different theory

I think this guy might not have fudged the books, he simply siphoned off all this money showed it as inflated books, bribed the right guys and ran off.
I know I know been reading too many spy novels

You may not be far off. It is hard to believe that Satyam was making only 3% in Operating profits. That's lower than grocery store margins. It is quite possible that books weren't fudged but the money was siphoned off.

sammyboy · 8th January 2009, 15:29

Quote:

Originally Posted by hondadude

You may not be far off. It is hard to believe that Satyam was making only 3% in Operating profits. That's lower than grocery store margins. It is quite possible that books weren't fudged but the money was siphoned off.

Exactly Hondadude, It is very difficult to believe that even after so many audits such a huge scam was not uncovered. It feels well orchestrated with him sending the letter and then disappearing. Hell, a few 100 crores go a long way to grease the palms of a lot of people.

diabloo · 8th January 2009, 15:52

Just in - ISB dean resigns !!!

Quote:

Originally Posted by diabloo

Not surprisingly, Satyam's independent directors are now trying desperately to distance themselves from the mess.
The independent directors included

Harvard professor Krishna Palepu (whose primary area of interest is 'corporate governance'),
Indian School of Business Dean M Rammohan Rao,
Entrepreneur Vinod Dham,
Former Cabinet Secretary T R Prasad.

Spitfire · 8th January 2009, 15:56

Quote:

Originally Posted by diabloo

Just in - ISB dean resigns !!!

Oh no, this is all going so wrong. The greed of a few have left all of us (all IT guys not only Satyam) in the lurch.

8th January 2009, 13:24	#136
diabloo BANNED Join Date: Jun 2007 Location: Bengalooru Posts: 1,480 Thanked: 17 Times	Not surprisingly, Satyam's independent directors are now trying desperately to distance themselves from the mess. The independent directors included Harvard professor Krishna Palepu (whose primary area of interest is 'corporate governance'), Indian School of Business Dean M Rammohan Rao, Entrepreneur Vinod Dham, Former Cabinet Secretary T R Prasad.
	() Thanks

8th January 2009, 13:47	#139
crn12 BANNED Join Date: Jul 2008 Location: Bangalore Posts: 186 Thanked: 18 Times	Just got the news that Maytas Ltd chairman RC Sinha rsigns. I wonder what were the independent board of directors doing, most of them are from very reputed institutions, this says that people can go mess up with anything without being caught, irrelevant to where you work study or come from. With regards to the govt i don't see a reason as to why they have to end up saving Satyam as a consequence again loosing tax payers money. They need to act quickly and close all loop holes in the system.
	() Thanks

8th January 2009, 14:00	#140
jango BHPian Join Date: Mar 2006 Location: New York & kotayam Posts: 800 Thanked: 23 Times View My Garage	UPDATE : Satyam's Raju untraceable !! Latest Update : Satyam's Raju untraceable. Could have left for US or Dubai. Source: Satyam's Raju untraceable, Sebi team in Hyderabad-India Business-Business-The Times of India
	() Thanks

8th January 2009, 14:40	#142
IronWolf Senior - BHPian Join Date: Jun 2007 Location: Benga-loo-ru Posts: 1,569 Thanked: 45 Times View My Garage	This is getting more and more interesting. Spoke to someone from the media. Speculation is... 1) Dubai 2) US 3) Undisclosed location in India (most unlikely) Also his letter to SEBI was sent when he was already out of the country.
	() Thanks

8th January 2009, 14:43	#143
kutlee Senior - BHPian Join Date: Jul 2005 Location: Hyderabad Posts: 1,140 Thanked: 233 Times View My Garage	yes. he has told that he was getting prepared to face the rules of the land (and that he was leaving ) best kanna best!! madoff, are you listening? Last edited by kutlee : 8th January 2009 at 14:44.
	() Thanks

8th January 2009, 14:55	#145
jassi BHPian Join Date: Jun 2007 Location: Melbourne Posts: 980 Thanked: 12 Times View My Garage	wow the guy disappeared - I am sure it must be dubai, as US there are too many risks, given that they now face law suits in the US too. On the other hand, it may just be media hype and he could be in a flight on his way back to india from texas and hence unreachable Jokes apart, hope the satyam employees are taken care of soon, must be horrifying time for them
	() Thanks

8th January 2009, 15:08	#146
sammyboy Senior - BHPian Join Date: Jul 2006 Location: Ggn/Dehradun Posts: 1,842 Thanked: 526 Times View My Garage	Well i have a different theory I think this guy might not have fudged the books, he simply siphoned off all this money showed it as inflated books, bribed the right guys and ran off. I know I know been reading too many spy novels
	() Thanks