Satyam Chairman and MD Resigns

finneyp · 9th January 2009, 22:09

Central Govt has stepped in and disbands the current Board of Directors and will nominate ten new Directors.
The new board will decide the new management for Satyam.
More here: Govt disbands Satyam board, to appoint nominees-India Business-Business-The Times of India

A very good move by the Govt, it will instill confidence to the employees and investors of the company.

deetee · 9th January 2009, 22:19

Just in ...
Mr.Raju surrenders at DGP office in Hyderabad .Govt. still to decide on the arrest.
News flashing across local tv channels.

snaronikar · 9th January 2009, 22:38

YEah...it is appearing in all national news channels now. It wil be interesting to see what will happen next

theMAG · 9th January 2009, 22:48

The local news channel here today apparently reported that Satyam wont be paying salaries for 3 months. If its true, its bad.

Sudipto-S-Team · 9th January 2009, 22:51

I am told Mr Raju has started writing his autobiography and has tentatively named it as My Experiments With Truth

Fountainheader · 9th January 2009, 22:53

Quote:

Originally Posted by theMAG

The local news channel here today apparently reported that Satyam wont be paying salaries for 3 months. If its true, its bad.

2 months is now 3 months eh ? Talk about attention-seeking-media!

Sudipto,
It could have been aptly titled as "Satyamev Jayate ?"

hillram · 9th January 2009, 23:09

Zappo and Avi..Thanks for standing by Satyam.
The new punchline for us is "The might of Satyam lies in every Satyamite".

TOI has been very unfair to Satyam in terms of their absolute yellow journalism.
There has been no email whatsoever from Satyam management that Salaries wont be paid to employees..on the contrary there have been assurances to all the teams that salaries are guaranteed for employees.
Satyam has also welcomed the Govt of India's decision to appoint 10 new Directors in the board.This seems to be a positive move and should restore investor confidence.
Incidentally Ramalinga Raju has surrenedered an hour back in Hyderabad to AP Police.
All said and done,I m with every Satyamite and myself being a Satyamite for 9 years,i wont abandon this company so easily....All this will tide over soon.
Long Live Satyam and its might...every Satyamite.

TrueDreamer · 9th January 2009, 23:44

Quote:

Originally Posted by hillram

TOI has been very unfair to Satyam in terms of their absolute yellow journalism.
.
.
.
Long Live Satyam and its might...every Satyamite.

+∞

Mr. Raju is unwell today as per his lawyer Mr. Bharat Kumar and has taken permission from SEBI that Mr. Ramalinga Raju will appear before SEBI tomorrow at 4 PM.

With 2 new projects, i pray Satyam recovers and the rumours around this end soon to an end.

diabloo · 9th January 2009, 23:50

Every country has its problem. Just last week 2 men robbed Wachovia Bank at gunpoint. Few days before at Felton bank. I am sure many in future. Does that make US a failed state?

Quote:

Originally Posted by BomBatt

Diabloo, if not failed state, soon it will be, if things continue like this. Look around you. Gang rape in national capital region, daily acid attacks, everyday political scams, selling of election tickets, crores of rupees being thrown inside the parliament, lakhs of innocent people getting killed by terrorists for years, parliament filled with hard core criminals...

Did you mean TV9? Talk about media ethics. TV9 will never report bad about Satyam because TV9 is promoted by Peepul Capital. And Peepul Capital & Satyam were co-founded by same person !

BTW, is it a surprise that Peepul Capital gave grants of 35 crores to ISB and ISB Director was on board of Satyam?

Quote:

Originally Posted by theMAG

The local news channel here today apparently reported that Satyam wont be paying salaries for 3 months. If its true, its bad.

maranellored · 10th January 2009, 01:47

Quote:

Originally Posted by Zappo

And now some further cheer for Satyam associates. Satyam bagged India Railways' (CRIS) Enterprise Asset Management system order today which is worth 2000 crores. Its a pilot order as of now but if Satyam delivers then they get to implement it across the country for IR.

Isn't this news old ? I thought Satyam had gained this contract much before the Maytas fiasco.

Heres a link Satyam outbids rivals to win railway deal

It dates back to 25 November, 2008

CBlazer · 10th January 2009, 10:01

My two cents on the issue:

Firstly, was shocked at the events and as disgusted by this as by the events in Mumbai last November. Just reiterates that a greater enemy lies within our country - corruption.

I wish all employees of Satyam enough courage to get through this phase - which I'm sure will pass, but realistically will take some time. I welcome the government's move. I think stake holders like LIC, etc. will make sure that the company's clientile don't take their business elsewhere. This is good for employees and also the common people who have invested in the company.

But I want the govt. to set the right precedent in terms of punishment and penalty. This should be a warning to any corporate who might be involved in such corrupt acts and also a confidence building measure for customers of India Inc.

diabloo · 10th January 2009, 10:20

Now, Satyam's bank statements go missing

"It now turns out that B Ramalinga Raju and his associates may have spirited away bank statements of the company that hold clues to the massive fraud perpetrated by them."

We can understand 'Failure'. But this is serious 'Fraud'. There is difference between Failure & Fraud. Note Satyam management didn't fail - they committed fraud and have put the rest of the stakeholders in jeopardy. Have no sympathy for them.

DKG · 10th January 2009, 10:34

Considering 53000 people and several thousands more (indirectly) get affected by this scam its appropriate for the govt to have stepped in and disbanded the board. SEBI should reinstate the scrip only once the accounts are cleared.

But a new board must be elected by the major stake holders and not appointed by the govt. The govt cannot be running private companies.

Further SEBI could setup a panel to investigate accounting practices in India and ensure frauds of this nature don't occur again. Perhaps they could introduce a regulation that also makes the accounting firm liable for losses suffered by investors on account of fraudulent disclosures, apart from promoters.

The govt should limit their role to remaining the regulatory authority, but leave the private sector to run itself

hondadude · 10th January 2009, 12:10

Quote:

Originally Posted by DKG

But a new board must be elected by the major stake holders and not appointed by the govt. The govt cannot be running private companies.

They are going to appoint the new board. That is different that running Satyam. Nowhere it is said that the new board appointees will be government officers. Also, if the board really ran Satyam, would it have come to this situation ?

luky_13 · 10th January 2009, 12:31

Big corporates are subjected to Due Diligence from time to time, despite this its so surprising that scams like these happen. Goes to show how we (Indians) have learn't to evade the system and that auditing cos like PWC are also hand in glove !

9th January 2009, 22:09	#271
finneyp Senior - BHPian Join Date: Dec 2005 Location: Bangalore Posts: 2,762 Thanked: 403 Times View My Garage	Central Govt has stepped in and disbands the current Board of Directors and will nominate ten new Directors. The new board will decide the new management for Satyam. More here: Govt disbands Satyam board, to appoint nominees-India Business-Business-The Times of India A very good move by the Govt, it will instill confidence to the employees and investors of the company. Last edited by finneyp : 9th January 2009 at 22:11.
	() Thanks

9th January 2009, 22:19	#272
deetee BHPian Join Date: Oct 2007 Location: Mangalore Posts: 505 Thanked: 1,632 Times View My Garage	Raju surrenders in hyderabad Just in ... Mr.Raju surrenders at DGP office in Hyderabad .Govt. still to decide on the arrest. News flashing across local tv channels.
	() Thanks

9th January 2009, 22:38	#273
snaronikar Senior - BHPian Join Date: Jun 2007 Location: Bengaluru Posts: 2,845 Thanked: 31 Times View My Garage	YEah...it is appearing in all national news channels now. It wil be interesting to see what will happen next
	() Thanks

9th January 2009, 22:48	#274
theMAG Distinguished - BHPian Join Date: May 2006 Location: Avon, CT Posts: 7,196 Thanked: 1,821 Times View My Garage	The local news channel here today apparently reported that Satyam wont be paying salaries for 3 months. If its true, its bad.
	() Thanks

9th January 2009, 22:51	#275
Sudipto-S-Team Senior - BHPian Join Date: Jun 2007 Location: Kolkata Posts: 1,319 Thanked: 292 Times View My Garage	I am told Mr Raju has started writing his autobiography and has tentatively named it as *My Experiments With Truth*
	() Thanks

9th January 2009, 23:09	#277
hillram Senior - BHPian Join Date: Apr 2007 Location: Hyderabad Posts: 2,941 Thanked: 1,329 Times View My Garage	Zappo and Avi..Thanks for standing by Satyam. The new punchline for us is "The might of Satyam lies in every Satyamite". TOI has been very unfair to Satyam in terms of their absolute yellow journalism. There has been no email whatsoever from Satyam management that Salaries wont be paid to employees..on the contrary there have been assurances to all the teams that salaries are guaranteed for employees. Satyam has also welcomed the Govt of India's decision to appoint 10 new Directors in the board.This seems to be a positive move and should restore investor confidence. Incidentally Ramalinga Raju has surrenedered an hour back in Hyderabad to AP Police. All said and done,I m with every Satyamite and myself being a Satyamite for 9 years,i wont abandon this company so easily....All this will tide over soon. Long Live Satyam and its might...every Satyamite.
	() Thanks

10th January 2009, 10:01	#281
CBlazer BHPian Join Date: Sep 2006 Location: Bangalore Posts: 598 Thanked: 18 Times	My two cents on the issue: Firstly, was shocked at the events and as disgusted by this as by the events in Mumbai last November. Just reiterates that a greater enemy lies within our country - corruption. I wish all employees of Satyam enough courage to get through this phase - which I'm sure will pass, but realistically will take some time. I welcome the government's move. I think stake holders like LIC, etc. will make sure that the company's clientile don't take their business elsewhere. This is good for employees and also the common people who have invested in the company. But I want the govt. to set the right precedent in terms of punishment and penalty. This should be a warning to any corporate who might be involved in such corrupt acts and also a confidence building measure for customers of India Inc.
	() Thanks

10th January 2009, 10:20	#282
diabloo BANNED Join Date: Jun 2007 Location: Bengalooru Posts: 1,480 Thanked: 17 Times	Now, Satyam's bank statements go missing "It now turns out that B Ramalinga Raju and his associates may have spirited away bank statements of the company that hold clues to the massive fraud perpetrated by them." We can understand 'Failure'. But this is serious 'Fraud'. There is difference between Failure & Fraud. Note Satyam management didn't fail - they committed fraud and have put the rest of the stakeholders in jeopardy. Have no sympathy for them. Last edited by diabloo : 10th January 2009 at 10:21.
	() Thanks

10th January 2009, 10:34	#283
DKG Senior - BHPian Join Date: Feb 2008 Location: Hyderabad Posts: 3,725 Thanked: 1,659 Times View My Garage	Considering 53000 people and several thousands more (indirectly) get affected by this scam its appropriate for the govt to have stepped in and disbanded the board. SEBI should reinstate the scrip only once the accounts are cleared. But a new board must be elected by the major stake holders and not appointed by the govt. The govt cannot be running private companies. Further SEBI could setup a panel to investigate accounting practices in India and ensure frauds of this nature don't occur again. Perhaps they could introduce a regulation that also makes the accounting firm liable for losses suffered by investors on account of fraudulent disclosures, apart from promoters. The govt should limit their role to remaining the regulatory authority, but leave the private sector to run itself
	() Thanks

10th January 2009, 12:31	#285
luky_13 BHPian Join Date: Nov 2008 Location: Bangalore Posts: 580 Thanked: 156 Times View My Garage	Big corporates are subjected to Due Diligence from time to time, despite this its so surprising that scams like these happen. Goes to show how we (Indians) have learn't to evade the system and that auditing cos like PWC are also hand in glove !
	() Thanks