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View Full Version : Satyam Chairman Resigns After Falsifying Accounts


GCBatman
01-07-2009, 10:16 AM
Another bad news
How it will going effect the folks working here (from Satyam)
http://www.bloomberg.com/apps/news?pid=20601091&sid=aSR2iC3g2LAQ&refer=india

sandy_anand
01-07-2009, 10:48 AM
It was a massive Rs.8000 crore fraud. This is bad for India, Inc. But I don;t think this will affect outsourcing. The other firms like TCS, Infosys, Wipro will merely pick up Satyam's clients.

gcformeornot
01-07-2009, 12:32 PM
its a big news. 53000 employees will be under lot of stress in such bad economic time.... its in general bad for reputation of indian firms.

truthinspector
01-07-2009, 12:40 PM
Of Satyam's reported cash and bank balances of 53.61 billion rupees on Sept. 30, 50.4 billion rupees was non-existent, Raju said in the letter sent to the Bombay Stock Exchange.

lord_labaku
01-07-2009, 12:57 PM
What were the auditors doing?

Is this just the tip of the iceberg. We know thats true in the US as well. Publicized scams/scandals are usually only an example of what goes on in general (GAFFS !!) Generally Accepted Financial Fraud Schemes instead of GAAP Generally Accepted Accounting Principles

Whats with all these white collar crime in the world...have people forgotten how to earn a honest meal??

Refugee_New
01-07-2009, 01:00 PM
Its really scary for IT folks in India. Read on

http://www.businessweek.com/globalbiz/content/jan2009/gb2009017_807784.htm?campaign_id=yhoo

softcrowd
01-07-2009, 01:04 PM
It's very unfortunate! But I don't think other Indian IT companies (or Indian s/w industry in general) are in trouble! Which country does n't have its own share of such incidents?.....US also has seen it's own Enron & WorldComs!!

gimme_GC2006
01-07-2009, 01:27 PM
Of Satyam's reported cash and bank balances of 53.61 billion rupees on Sept. 30, 50.4 billion rupees was non-existent, Raju said in the letter sent to the Bombay Stock Exchange.

oh..is that true..
I tired to read economic times and couldnt understand how much they cooked.

sucha big scam..employees will be on the edge now

truthinspector
01-07-2009, 01:31 PM
Yes, unfortunately the clients (mostly US based ) react quickly and negatively to such news because much work happens offshore. The board members of the client organizations are bound to raise questions about reliability of doing business with such a company.Due to this new contracts may be hard to come by.

I feel sorry for the employees.

oh..is that true..
I tired to read economic times and couldnt understand how much they cooked.

sucha big scam..employees will be on the edge now

GCA
01-07-2009, 02:08 PM
A major IT company making just 3% profit margin for last 8 years??? Howmany think its true? To me it just can't be. The original 40%(not sure of exact %) is more realistic and along lines with other major IT operating from India base.

He(they) planned it all along I guess. Meticulously diverting(swindling) cash to their hands. Once market gone worse and knowing it remains so for sometime to come, they can no more see such money flow into their hands. So wanted to make a safe exit by selling their own company ( which interestingly named reverse of 'MAYTAS'-'SATYAM' - they probably know this will happen and its going to reverse the future of SATYAM ) and recording those swindled money under this asset in the name of 'bookvalue'.

I hope whatever body goes into investigating this fraud, goes deep in and traces every(atleast some) 'real' penny that might have made its way out to classify this a 'fake' profit is found and returned back to the true 'stake' owners. More importantly, whoever deliberately crafted this, should be penalized such that it remains a deterent to others stealing publics money and their future. This is a testing time for India to prove they are relaible investment nation with a sound law to enforce better business environment.

rb_248
01-07-2009, 03:01 PM
Satyam in tamil means truth. However, the company CEO is now known for Fraud......how ironic.

rajpatelemail
01-07-2009, 03:09 PM
Very Bad for Satyam employees..They shd take take steps to move on to other companies

Some idiots will still try to be with them hoping, some thing ood maay happen.


Pls pls pls guys, pls take steps to secure your future/career/life.
Do not be spoiled by them. You were already.

But pls take steps to do damage correction by moving to other companies with h1 transfers.

L1/B1 s - sorry guys. Nothing can be done until quota starts again.

gcformeornot
01-07-2009, 04:04 PM
its bad for everyone. Imagin what it will do to job market. Those many people looking for jobs..... same time......

Openarms
01-07-2009, 04:37 PM
Well what happened here in US when Enron and all these financial giant failure.

Well Said GCA, I think it is another good test for Indian government to their guts and do justice (may sound Naive but ...) for folks who are effecting by this. They should not loose this opportunity.

Pallavi79
01-07-2009, 04:41 PM
Looks like Satyam is worried about upaid case. They are not able to digest paying billions of dollars in court settlements. Hence the drama.
Otherwise where does all the money goes???

belmontboy
01-07-2009, 04:51 PM
In a publicly traded company, it is almost impossible for one individual to siphon money.

I guess what might have happened here is, Satyam might have faced falling revenues year-on-year. In a sector, where each competitor is reporting 40% profits, to keep upto the performance of sector, they might have been pressured to falsify their revenues.

Now what i am unable to understand is, how come an esteemed audit org like PWC could cover up or fail to findout discrepancies. Either the auditors were stupid and overlooked, or Mr Ramalinga Raju covered up the tracks very well.

In the end it all hurts the stock holders and the employees. This one is going to go down big time in our history, and i bet its going to change the landscape of our IT services sector.

gcformeornot
01-07-2009, 05:25 PM
going to www.satyam.com ...... I can not go in there. Probably too many people looking for info......

CADude
01-07-2009, 09:16 PM
Nothing will happens to Mr Raju in India. He will go upto Supream Court (it takes 100 years to get justice ever in murder case in Indian legal system). He will die the age of 100 on bail. :D He will not go to jail like Mr Skilling. our india is different. With Money and Political connection, anything possible in our great INDIA. :)

I am sorry for employees.. Hope company will survive and they will be spared..

Well wait and see many more will be in line........ :D:D:D

lacrossegc
01-07-2009, 09:24 PM
After Enron collapsed the auditing firm also went down for shredding the docs ... I bet PWC's shredding machines are working overtime right now.
I would bet that Satyam would be barred/ delisted shortly from nasdaq. SEC will surely take some action.

In a publicly traded company, it is almost impossible for one individual to siphon money.

I guess what might have happened here is, Satyam might have faced falling revenues year-on-year. In a sector, where each competitor is reporting 40% profits, to keep upto the performance of sector, they might have been pressured to falsify their revenues.

Now what i am unable to understand is, how come an esteemed audit org like PWC could cover up or fail to findout discrepancies. Either the auditors were stupid and overlooked, or Mr Ramalinga Raju covered up the tracks very well.

In the end it all hurts the stock holders and the employees. This one is going to go down big time in our history, and i bet its going to change the landscape of our IT services sector.

BECsufferer
01-07-2009, 09:36 PM
Indian companies like Satyam had been running these farce show of outsourcing for long time, and finally the reality is surfacing up. Not only did these companies run scam with their investors but also with their clients and employees.

As a client I see them initially low balling the real cost to obtain business and when the in-house engineering capabilities have been eliminated, they will start jacking up the prices. L&T did this with us and thankfully this month we are finally kicking their a$$ out of our facility. And we will do real engineering here in USA!

Couple of years ago, I ran into an indian at one of my visa renewals outside US consulate and he told me how, Satyam forged papers to have him slip into USA on L1 and than once here convert into H1 so he can finally apply and obtain GC. All these years he worked for remarkablly low wages.

Hope Satyam scamsters see life behind bars in India!

n_2006
01-07-2009, 10:02 PM
What kind of information you are looking for? Their client list?

going to www.satyam.com ...... I can not go in there. Probably too many people looking for info......

unknown123
01-08-2009, 12:35 AM
Its hard to believe.... but if it is really true then PWC is equally culpirit.

20 years gone in 20 minutes.

I'm sorry about employees and investors.

rb_248
01-08-2009, 08:59 AM
http://cnnwire.blogs.cnn.com/2009/01/08/stock-exchange-delists-indian-computer-company-after-fraud/

copsmart
01-08-2009, 09:43 AM
http://in.reuters.com/article/companyNews/idINBOM40463220090108

Really a tough time for Satyam employees.

copsmart
01-08-2009, 09:55 AM
PWC says they followed the auditing standards and they have appropriate evidence.

http://in.reuters.com/article/companyNews/idINDEL00235820090108

Probably, Raju & Co planned this carefully to even fool the auditors.


Its hard to believe.... but if it is really true then PWC is equally culpirit.

20 years gone in 20 minutes.

I'm sorry about employees and investors.

sandy_anand
01-08-2009, 11:12 AM
Satyam in tamil means truth. However, the company CEO is now known for Fraud......how ironic.

SATYAM in Telugu means TRUTH too...

vikramy
01-08-2009, 11:48 AM
I mean... this is nonsense. You are employing 50K+ people and you behave so irresponsibly. This guy should be hanged.

But in India nothing happens, things go in court forever and government helps them once they get the money they want. I am sure this guy has diverted all that money internally to his son's companies or swiss bank.

How can a IT company with so many projects and clients can not have cash in hand to pay the employees. So unbelievable.

PWC is again showing their lack of integrity. It looks like for Fraud it does not depend whether it is Indian, MNC, big, small, government, private, reputation...It's just greed. Remember Enron, walstreet guy who scammed billions, Illinois governer, chinese milk products...

still i can not believe how much more he want even after owning such a big company... Is he mad?

redgreen
01-08-2009, 12:35 PM
Horrible part is these criminals get away with all the money! those nasty politicians also get a portion of it. the only way is just to exterminate such people when the 'law' can not/won't do anything!

skd
01-08-2009, 02:20 PM
With a big questions mark on its cash position and a minimum outgo on salary estimated at Rs 500 crore a month, Satyam may lay off over 10,000 employees next month, says a recruitment firm.

"It is most likely that Satyam will cut 10,000 jobs next month as the company is left with no cash to pay the salaries. The current fiasco is likely to put pressure on salaries, which may reduce by 10 per cent due to the surplus of about 20,000 people in the jobs market," Headhunters India CEO Kris Lakshmikanth said.

Satyam interim CEO Ram Mynampati while admitting that the cash position is not encouraging, the company, however, has taken care of salary for December. Lakshmikanth said till Tuesday evening there were about 7,800 people from Satyam who had posted their resumes on job sites and by Wednesday afternoon, it has gone up to 14,000.

The uncertainty about jobs is killingly painful for the 53,000 employees of Satyam, especially when the industry is going slow on recruitment. Further, possibility of a takeover too looks distant as the accounting fraud done by the company would make it difficult for any firm to evaluate its correct market value, which is compounding the worries of the employees.

IT-BPO union Unites Professionals general secretary Karthik Shekhar said, "In case of any lay off at Satyam, we may take legal action." "We have received over 7,000 hits since the news break.

On Wednesday, in one hour we have seen over 800 hits (no of people visiting the site) from Hyderabad. People have been enquiries on how the union can help them," Shekhar added.

ArkBird
01-08-2009, 03:29 PM
With a big questions mark on its cash position and a minimum outgo on salary estimated at Rs 500 crore a month, Satyam may lay off over 10,000 employees next month, says a recruitment firm.

"It is most likely that Satyam will cut 10,000 jobs next month as the company is left with no cash to pay the salaries. The current fiasco is likely to put pressure on salaries, which may reduce by 10 per cent due to the surplus of about 20,000 people in the jobs market," Headhunters India CEO Kris Lakshmikanth said.

Satyam interim CEO Ram Mynampati while admitting that the cash position is not encouraging, the company, however, has taken care of salary for December. Lakshmikanth said till Tuesday evening there were about 7,800 people from Satyam who had posted their resumes on job sites and by Wednesday afternoon, it has gone up to 14,000.

The uncertainty about jobs is killingly painful for the 53,000 employees of Satyam, especially when the industry is going slow on recruitment. Further, possibility of a takeover too looks distant as the accounting fraud done by the company would make it difficult for any firm to evaluate its correct market value, which is compounding the worries of the employees.

IT-BPO union Unites Professionals general secretary Karthik Shekhar said, "In case of any lay off at Satyam, we may take legal action." "We have received over 7,000 hits since the news break.

On Wednesday, in one hour we have seen over 800 hits (no of people visiting the site) from Hyderabad. People have been enquiries on how the union can help them," Shekhar added.



Here comes... "Bailout!!! (http://timesofindia.indiatimes.com/Business/India_Business/It_is_for_Centre_to_decide_on_Satyam_Andhra_CM/articleshow/3951539.cms)" Indian Edition. After all that's the latest fashion in govt. All around the world. How can Indian Government ignore the corporate crooks of India?!

gcformeornot
01-09-2009, 03:15 PM
http://www.bloomberg.com/apps/news?pid=20601087&sid=aJ3Az1Gk7TXI&refer=home

chanduv23
01-09-2009, 03:23 PM
http://www.bloomberg.com/apps/news?pid=20601087&sid=aJ3Az1Gk7TXI&refer=home

Well - these people get VIP treatment in prison - believe me - they get good food, drinks, entertainment, cell phones, cable tv, reading room and other things. They wont keep VIPs along with pickpockets and robbers.

Most of the VIP frauds actually continue their business operations or start new ventures when in jail and sometimes form new partnerships with like minded VIP frauds who are also in the same prison.

It is a haven for them.

After all the heat goes down and after few years they are released, no one cares - they may either settle in a beach house or continue with another fraud company or maybe enter politics.