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Corporate governance questioned: What experts are saying?Ramalinga Raju, Chairman, Satyam, in a letter to the board said financial statements of the company have been inflated and that this was going on for a number of years. This announcement has come as a shock to everyone.Source: Moneycontrol Top Headlines | 7 Jan 2009 | 6:35 pm Satyam fraud: Guilty parties to the scamThis was a fear which markets had that Ramalinga Raju is trying to bailout some of the companies and he is in a difficult financial mess. But it went beyond that today when he himself confessed in a letter saying that the cash and cash balances are inflated by over Rs 5,000 crore.Source: Moneycontrol Top Headlines | 7 Jan 2009 | 6:26 pm PwC may be asked to restate accounts of Satyam: P JainPankaj Jain, Cousel Member, ICAI said that one should refrain from making any hasty judgments on prima facie details. He said that PriceWaterhouse Cooper may be asked to restate accounts of Satyam.Source: Moneycontrol Top Headlines | 7 Jan 2009 | 5:45 pm Expect huge implications from overseas regulators: EYDolphy DSouza, Partner, Ernst Young, said the size of the fraud was huge and that they will have to look into details. Auditors will be questioned; the matter cannot be wished away, he said. DSouza added there would be huge implications from overseas regulators.Source: Moneycontrol Top Headlines | 7 Jan 2009 | 5:40 pm Expect action by regulators at every level: S HaribhaktiThe Satyam scam has evinced wideranging responses from auditors but mainly one of shock. Shailesh Haribhakti of Haribhakti Group said he was, absolutely shocked after hearing about the Satyam scam. Action, he said, will now be taken by regulators at every level.Source: Moneycontrol Top Headlines | 7 Jan 2009 | 5:37 pm 21day recap: From Maytas to Raju\'s fall from graceSatyam Computer Services got exposed in 21 days. December 16 was the day when Satyam broke news of Maytas buyout. On January 7, Satyam\'s promoter Ramalinga Raju wrote a letter to shareholders that Satyam\'s balance sheet is fake.Source: Moneycontrol Top Headlines | 7 Jan 2009 | 5:18 pm FICCI stresses on harder corp governance normsRajeev Chandrashekar, President, FICCI, said, there is a need for a fundamental and deep examination of what went wrong. There is definitely a need for deeper and harder look at what we have been calling corporate governance over the last few years.Source: Moneycontrol Top Headlines | 7 Jan 2009 | 5:09 pm Indias reputation in corporate governance impacted:NasscomGanesh Natarajan, Chairman, Nasscom, said clients would look at IT companies they are dealing with to ensure reliability, ensure trustworthiness, and make sure that there is long standing capability to service them.Source: Moneycontrol Top Headlines | 7 Jan 2009 | 4:57 pm PwC needs to be questioned, says Anil SinghviTerming it the Enron of India, Anil Singhvi, ViceChairman, RNRL also an auditor himself accused the company\'s auditors of being handinglove with Raju. \"How can PricewaterhouseCoopers say they were not aware of it, and how does the company say today that the same auditors will restate the balance sheet?\"Source: Moneycontrol Top Headlines | 7 Jan 2009 | 4:31 pm Sebi must restore investor confidence: DamodaranDamodaran feels the speed of looking into the matter is of essence now to restore investor confidence and that interrogation with auditors needs to be done immediately.Source: Moneycontrol Top Headlines | 7 Jan 2009 | 4:27 pm Satyam auditor says examining chairman's statementNEW DELHI (Reuters) - Satyam's auditor PricewaterhouseCoopers said on Wednesday it was examining the contents of the statement issued by the software firm's chairman and would not comment further due to client confidentiality.Source: Reuters: Money News | 7 Jan 2009 | 2:03 pm Satyam loses Rs10,000 cr in m-capMumbai: Beleaguered software services major Satyam Computers on Wednesday bit the dust on the bourses and lost as much as Rs10,000 crore in market capitalisation (m-cap) in a single trading session, after the scrip dipped to hit an all-time low level. It saw a massive value erosion and fell nearly 80%, after the management revealed malpractices in accounting methods. The company had a market capitalisation of Rs12,067.98 crore on Tuesday and by the end of Wednesday’s trading session its m-cap stood at Rs2,691.88 crore. The scrip, which fell by as much as 83% to witness an intra-day low of Rs30.70, managed to close with a fall of 77.69% at Rs39.95 on the BSE index. “In the long run the scrip can witness levels down to as much as Rs20. The company was operating at a margin of 3%, the lowest by any firm. It was doing business on cost basis and the books were kept inflated,” Arun Kejriwal of Kejriwal Reserach and Investment Services said. On the National Stock Exchange (NSE), the scrip plunged to a low of Rs41.05, down 77.06% from its previous close. The scrip had witnessed the day’s low of Rs30.80, down 82.78% over last closing. The counter saw frantic selling after the news broke out, and over 48 crore shares had changed hands on both the bourses. Satyam stock holds a 1.56% weight in the 30-share bluechip index - Sensex. Following the same, the Sensex also plunged over 749 points or over 7% to settle at 9,586 points on the BSE. Ramalinga Raju, on Wednesday resigned as Satyam’s chairman after admitting to financial wrong doings in the company’s balance sheet. He was under attack over the $1.6 billion acquisition fiasco of firms promoted by his family. Source: LatestNews-Home - Livemint.com | 7 Jan 2009 | 2:01 pm Satyam Interim CEO, Ram Mynampati’s message to employeesNew Delhi: Satyam Computer Services on Wednesday accepted the resignation of its founder chairman B Ramalinga Raju who has quit accepting financial irregularities and appointed Ram Mynampati as interim CEO, who said shareholders and employees are top priority now. Mynampati has been mandated by the board to steer the company through this crisis, said a company statement. “We are obviously shocked by the contents of the letter sent by Raju to the company. The senior leaders of Satyam stand united in their commitment to customers, associates, suppliers and all shareholders. We have gathered together at Hyderabad to strategise the way forward in light of this startling revelation,” said Ram Mynampati, interim CEO, whose appointment has to be ratified by the board. Also See Transcript of Recorded Video Message by Ram Mynampati (PDF) Timeline (PDF) Earlier, Satyam said it has received a letter from its chairman and founder B Ramalinga Raju. Mynampati was earlier a member of the board. “This letter, January 7, 2009, has been circulated to all existing members of the board, several senior leaders and copied to the Chairman of Securities and Exchange Board of India (SEBI) and the stock exchanges where Satyam is listed,” the company said in a statement. Its immediate priorities are to protect the interests of its shareholders, protect the careers and security of its approximately 53,000 associates, and meet all its commitments to its customers and suppliers, it added. “We recognise that our associates have committed a significant part of their careers to build Satyam. We will pursue all avenues to secure their future in the company,” added Mynampati. Satyam believes that its underlying business model, customer assets and growth prospects remained sound, even in the current challenging financial environment, he said. The company’s leadership is confident that it will be able to overcome this latest development and continue to provide excellent service to clients, while delivering value to shareholders in the medium to long term. Satyam is committed to uphold the highest levels of corporate transparency and will cooperate with the relevant regulatory authorities to conduct detailed investigations into this matter. Satyam will keep stakeholders informed of the developments on a regular basis, the new interim CEO added. Source: Home - Livemint.com | 7 Jan 2009 | 2:00 pm Sebi horrified by Satyam revelations; studying actionsMumbai: Terming disclosures of financial wrong-doings at Satyam as an event of “horrifying magnitude,” market regulator Sebi on Wednesday said it would take all steps under the law for which it has started discussions with government and bourses. “We are in touch with Ministry of Corporate Affairs... we are also in discussion with them as to what steps need to be taken from the perspective of power they have under the law and Sebi has under the law,” Sebi chairman C B Bhave said. Sebi was also forwarded the letter written by Satyam’s chairman Ramalinga Raju on his stepping down with the confession that the profits in the company were inflated over the years, leading to wide gap between real and imaginary assets. Bhave said the development would have serious implications for the market. Jurisdictions in this case lies with various authorities and accordingly, “we are in touch with Ministry of Corporate Affairs for coordinated action”. He also emhpasised on the need to go beyond the letter and “decide the course of action.” Bewildered by the disclosures made by Raju in his letter to Sebi and the Board, which was also sent to stock exchange authorities, Bhave said it was “most surprising” that cash balance that was non-existent got certified. The case also raises the issue of “authenticity of accounts” that have been audited. “Our main effort is to see that whatever facts are available with any regulatory agency, those are put out and investors know the truth... I am sure we will have to learn few lessons from this as we get through the facts,” he said. “We are also in touch with stock exchanges to see what will be the appropriate action,” he said. Asked about the action that the company, also listed in New York Stock Exchange, could face in the US, Bhave said: “This is probably not the time when SEC would be available. My guess is that Satyam will have to make similar disclosures there as well. I am not entirely familiar with their law with regard to areas as to what actions they would be taking.” Commenting on the unfolding development that began with the fiasco of the $1.6 billion dollar acquisition of two Maytas firms promoted by Raju’s family, he said: “This is an event of horrifying magnitude and it’s first of its kind.” On whether Sebi would be making a special request to the Satyam Board that is to meet on 10 January, he said all these things are being considered and it is being made sure that the Ministry of Corporate Affairs and Sebi act in coordination on this matter. Source: Home - Livemint.com | 7 Jan 2009 | 1:55 pm Satyam debacle not to impact IT industry: WiproNew Delhi: With the developments in Satyam Computer unfolding shocking irregularities, Wipro Technologies, a NYSE-listed company, today said this incident is one of its kind and is unlikely to affect the industry. “We are shocked by the recent news reports on Satyam, stating alleged multi-year misstatement of revenues. “Wipro strongly condemns any attempt to mislead stakeholders. Global standards of corporate transparency are very high and we are confident that this is an isolated case and not representative of the IT industry,” Wipro Limited executive director and CFO Suresh Senapaty said. He said a detailed investigation of this incident is urgently called for and needs to be undertaken by the authorities without delay. Satyam Computer Services’ chairman and founder B Ramalinga Raju today resigned amid a scandal over inflated profit reporting. In his letter of resignation, Raju said Satyam, one of India’s largest outsourcing companies, had “inflated profits over a period of [the] last several years”. Source: LatestNews-Home - Livemint.com | 7 Jan 2009 | 1:53 pm IIFCL to provide Rs1 lakh cr of low-cost fundsNew Delhi: Infrastructure refinance company IIFCL will provide Rs1,00,000 crore of low-cost funds for the development of new core sector projects by leveraging money to be raised through tax-free bonds, as announced in the two stimulus packages. A top Planning Commission official said that the first tranche of the proposed Rs10,000 crore tax-free bonds would be issued this month by IIFCL to channel resources into big public private partnership (PPP) projects. While Rs10,000 crore bonds would be issued this fiscal, another Rs30,000 crore would be given next fiscal. The entire sum would be leveraged to provide about Rs1,00,000 crore of low-cost resources to projects, mainly in ports and roads. “Now that we have provided this, this should support Rs1,00,000 crore of project level investment, of which the equity component will be Rs30,000 crore. The rest Rs70,000 crore will be debt,” he added. He said that he was in favour of coupon rates having a reset clause to make them align with government securities few years down the line. “We are going to use the India Infrastructure Finance Company Ltd (IIFCL) to raise low cost resources to help the economy hit by a financial tsunami,” the official said. He said that resources will be low-cost because it will be government guaranteed tax-free bonds resulting in low interest cost to the IIFCL. So far as lending by banks is concerned, he said that their resource crunch should not prevent them from lending because they will be getting refinance. “The lender’s risk is not bad in these projects because the fact of the matter is that 90% of the debt is guaranteed in the event there is any kind of default. So it is a situation where you need not worry”, he said. IIFCL was allowed to raise Rs10,000 crore of tax-free bonds in the first stimulus package announced in December 2008, and Rs30,000 crore in the second one declared on 2 January, 2009. The Rs30,000 crore bonds would be raised within 18 months of Rs10,000 crore papers. While announcing the second stimulus package, Planning Commission Deputy Chairman Montek Singh Ahluwalia said: “Expansion of infrastructure investments in PPP area is a very important part of the effort to mark the counter-cyclical thrusts at a point when there is a bit of global slowdown.” He had said package to IIFCL is something that will not only stimulate demand in the short term, but lay the foundation for broader investment revival and for broader growth. Source: LatestNews-Home - Livemint.com | 7 Jan 2009 | 1:52 pm Satyam debacle not to impact IT industry: WiproBy PTI New Delhi: With the developments in Satyam Computer unfolding shocking irregularities, Wipro Technologies, a NYSE-listed company, today said this incident is one of its kind and is unlikely to affect the industry. “We are shocked by the recent news reports on Satyam, stating alleged multi-year misstatement of revenues. “Wipro strongly condemns any attempt to mislead stakeholders. Global standards of corporate transparency are very high and we are confident that this is an isolated case and not representative of the IT industry,” Wipro Limited executive director and CFO Suresh Senapaty said. He said a detailed investigation of this incident is urgently called for and needs to be undertaken by the authorities without delay. Satyam Computer Services’ chairman and founder B Ramalinga Raju today resigned amid a scandal over inflated profit reporting. In his letter of resignation, Raju said Satyam, one of India’s largest outsourcing companies, had “inflated profits over a period of [the] last several years”. Source: LatestNews-Home - Livemint.com | 7 Jan 2009 | 1:52 pm 3i Infotech to pump Rs155 crore for stores in rural IndiaMumbai: Global IT firm 3i Infotech will invest about Rs155 crore in setting up 12,400 retail stores of its I-SERV brand in rural areas of nine states by end- December, offering insurance and telecom-related services. The software provider’s main focus is to offer telecom and insurance-related services, for which it has tied up with insurance companies ICICI Lombard and Max New York Life and telecom service provider Airtel. “The capital expenditure on each of our 12,400 stores is between Rs1-1.25 lakh. This will be funded from internal accruals,” 3i Infotech Executive Director & President - South Asia, Anirudh Prabhakaran told reporters here today. The company’s total spend on all 12,400 stores thus comes to Rs124 crore-155 crore. “It’s a win-win win situation for the rural consumers, the partners as well as the I-SERV stores,” Prabhakaran said on the alliance. 3i Infotech is setting up the stores across nine states and Union Territories, which include Haryana, Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra, Goa, Andhra Pradesh, Tamil Nadu and Delhi. “There will be one store for every 3-6 villages, which would service about 3,000-18,000 people,” he said, adding that nearly 700 stores in Haryana and Gujarat have already commenced operations. The company would set up 2,000 stores by March-end. He, however, did not offer revenue and profit projections. “It would take us more than 18 months to break-even,” he said. Source: Tech News - Livemint.com | 7 Jan 2009 | 1:48 pm 3i Infotech to pump Rs155 crore for stores in rural IndiaMumbai: Global IT firm 3i Infotech will invest about Rs155 crore in setting up 12,400 retail stores of its I-SERV brand in rural areas of nine states by end- December, offering insurance and telecom-related services. The software provider’s main focus is to offer telecom and insurance-related services, for which it has tied up with insurance companies ICICI Lombard and Max New York Life and telecom service provider Airtel. “The capital expenditure on each of our 12,400 stores is between Rs1-1.25 lakh. This will be funded from internal accruals,” 3i Infotech Executive Director & President - South Asia, Anirudh Prabhakaran told reporters here today. The company’s total spend on all 12,400 stores thus comes to Rs124 crore-155 crore. “It’s a win-win win situation for the rural consumers, the partners as well as the I-SERV stores,” Prabhakaran said on the alliance. 3i Infotech is setting up the stores across nine states and Union Territories, which include Haryana, Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra, Goa, Andhra Pradesh, Tamil Nadu and Delhi. “There will be one store for every 3-6 villages, which would service about 3,000-18,000 people,” he said, adding that nearly 700 stores in Haryana and Gujarat have already commenced operations. The company would set up 2,000 stores by March-end. He, however, did not offer revenue and profit projections. “It would take us more than 18 months to break-even,” he said. Source: LatestNews-Home - Livemint.com | 7 Jan 2009 | 1:48 pm Satyam chief quits, shares plunge nearly 80 pctBANGALORE (Reuters) - The head of outsourcing firm Satyam Computer Services resigned on Wednesday, disclosing that profits had been falsely inflated for years and sending its shares tumbling nearly 80 percent.Source: Reuters: Money News | 7 Jan 2009 | 1:47 pm Sun Pharma gets US FDA go-ahead for four generic drugsNew Delhi: Drug major Sun Pharmaceutical Industries on Wednesday said the company, along with its subsidiary, has received abbreviated new drug application (ANDA) approval for four generic products from the US health regulator. The company has received approvals from the US Food and Drug Administrator (FDA) for generic hydrocodone bitarlate with acetaminophen (APAP) tablets, generic Aredia Pamidronate Disodium injections, generic Lopid gemfibrozil tablets and generic Phenargan promethazine hydrochloride tablets in various strengths, Sun Pharma said in a statement. These products — both generic and branded verions — all together have annualised sales of more than $650 million in the US. The company has received the approval for 10 generic versions of Hydrocodone with APAP used as pain reliever for acute, chronic and post operative pains, it added. While Lopid tablets are used as cholesterol reducing agents and generic Aredia injections can treat hypercalcemia, Phenargan tablets are pain relievers, the company said. All these products are manufactured at multiple facilities of the company and its subsidiaries in the US and India. Source: LatestNews-Home - Livemint.com | 7 Jan 2009 | 1:40 pm One year needed to probe Satyam misrepresentations: SFIONew Delhi: The economic offence investigation wing of the government SFIO would take at least a year to probe the financial fraud at Satyam Computer, a senior official said today. “We are still awaiting directions from the Ministry of Corporate Affairs. Normally it takes at least one year to complete the probe”, said the Serious Fraud Investigation Office functionary. Pointing out that normally the Ministry gives six months to the SFIO to complete investigation, the official said, but in this case the agency may need about a year. However, in a company like Satyam we may take less time in collecting documents from banks and other financial institution, he said. In cases of a complex nature where companies are closed and promoters are absconding, the SFIO could take up to three years to complete the probe. The Ministry has asked the Hyderabad Registrar of Companies (RoC) to look into the matter. “If the RoC finds prima facie fraud in the affairs of the company and investigations need to be done then the MCA would give us direction to do that,” the official said. Source: LatestNews-Home - Livemint.com | 7 Jan 2009 | 1:38 pm Punj Lloyd wins orders worth $238 mnMumbai: Engineering and construction firm Punj Lloyd has said that it has won two contracts worth a total Rs11.55 billion ($238 million). They include a Rs10.5 billion project to upgrade infrastructure at a township in Libya, jointly won with a local firm. The project is to be completed in four years. The company has also won a Rs1.05 billion deal to build an oil and gas pipeline in western India for explorer Cairn India. Source: LatestNews-Home - Livemint.com | 7 Jan 2009 | 1:36 pm DSP Merrill Lynch terminates engagement with SatyamDSP Meryll Lynch, a leading financial management and advisory firm, Wednesday announced it has terminated its advisory engagement with Satyam Computer following the Maytas fiasco.Source: IndiaeNews.com: Business News | 7 Jan 2009 | 1:31 pm India-Africa trade to grow nine times by 2012: AssochamEven as India's exports decline, India-African bilateral trade is projected to grow by over nine times from $26 billion now to $150 billion by 2012, according to an estimate by a leading business chamber.Source: IndiaeNews.com: Business News | 7 Jan 2009 | 1:30 pm After career highs, Satyam chief makes stunning exitBANGALORE (Reuters) - In a stunning five-page letter detailing years of financial deception at the firm he founded, Satyam Computer Services Chairman B. Ramalinga Raju brought an illustrious corporate career to an undignified end.Source: Reuters: Money News | 7 Jan 2009 | 1:28 pm SEBI launches probe in Satyam matterMUMBAI (Reuters) - The Securities and Exchange Board of India (SEBI) said on Wednesday it has ordered an investigation into Satyam Computer Services after the outsourcer's chairman said profits had been falsely inflated profits and resigned.Source: Reuters: Money News | 7 Jan 2009 | 1:26 pm Satyam auditor PwC’s role under scannerNew Delhi: The government on Wednesday said it will examine the role of Satyam Computer Services Ltd. auditor PricewaterhouseCoopers (PwC) after the country’s fourth-largest information technology company admitted that it had falsified its accounts. Here are some other controversies in which PwC was named. 18 December 2008: Hedge fund firm Fairfield Greenwich Group considers suing its accountant PwC after its clients lose $7.5 billion in Bernard Madoff’s alleged $50 billion Ponzi scheme. 28 July 2008: PwC faces probe after its alleged failure to spot a €21 million fraud at the Scotish mineral water subsidiary of Greencore Group Plc. 7 July 2007: PwC agrees to pay $225 million to settle a class-action lawsuit brought by shareholders of Tyco International Ltd over a multibillion-dollar accounting fraud 11 March 2007: Investigators from Russia’s interior ministry raid PwC offices for evidence in criminal cases related to oil firm OAO Yukos 29 March 2006: PwC makes an out-of-court settlement with shareholders of Internet company E-District who alleged the audit firm failed to discharge its legal responsibilities. December 2005: Reserve Bank of India bars PwC from bank audits after it found that the firm under-provided for non-performing assets of Global Trust Bank. Source: Home - Livemint.com | 7 Jan 2009 | 1:24 pm Bond yield rises to 6% on supply worriesMumbai: The 10-year benchmark bond yield jumped 72 basis points (bps) on Wednesday on a $10 billion additional borrowing programme by the government that was announced late on Tuesday. At 4:13pm, the federal bond yields was at 6.02%, its highest since mid-December 2008 and above 6.30% at close on Tuesday. Source: LatestNews-Home - Livemint.com | 7 Jan 2009 | 1:24 pm Audi to assemble 1,000 units of cars by end this yearMumbai: German luxury car manufacturer, Audi plans to assemble 1,000 units of the Audi A4 and the Audi A6 cars in the country this year, a top company official said. The company would also appoint five new dealers as part of its expansion plan in tier II cities during the year. “We plan to produce 1,000 cars of the Audi A4 and the Audi A6 from our assembly unit at Aurangabad by end this year. Besides, we will also appoint five dealers in tier II cites this year,” Audi India’s Managing Director, Benoit Tiers, told reporters here today. The company on Wednesday opened its new showroom in Mumbai. Audi India has sold more number of cars in 2008 than its target, he said. “We have exceeded the target of selling 1,000 cars in India for 2008 and sold 1,050 cars,” Tiers said. The company was bullish on the Indian market despite the slowdown, Tiers said. “Although sales of luxury cars has been affected world-wide due to the global turmoil, the emerging markets like India remains less affected.” “In India, we have grown by 200% during 2008 as compared to 2007,” he said. Audi India’s assembly unit in Aurangabad has present capacity of 2,000 units, he said. The company was also planning to launch its new car, the Audi Q5, this year in the country but had not decided on the date for launching it, he said. Source: LatestNews-Home - Livemint.com | 7 Jan 2009 | 1:23 pm Taro and Sun Pharma far from conclusion - Economic Times
Source: Google News India - Business | 7 Jan 2009 | 1:21 pm Some India corp bond sales on hold on borrowing plan - Reuters India
Source: Google News India - Business | 7 Jan 2009 | 1:21 pm How much is Satyam's stock actually worth? - Economic Times
Source: Google News India - Business | 7 Jan 2009 | 1:14 pm Satyam saga step by stepOver the last week or so, the confusion surrounding Satyam, Maytas Properties and Maytas Infrastructure has only grown muddier and deeper.  Our expert on the show is Sandeep Parekh, who also writes the Initial Private Opinion blog on the Mint web site. Parekh is a visiting associate faculty at the Indian Institute of Management in Ahmedabad, and he was, until recently, an executive director at the Securities and Exchange Board of India, heading up the Legal Affairs and Enforcement departments. Parekh has previously worked for law firms in Delhi, Mumbai and Washington DC, and he was recently honoured as a Young Global Leader by the World Economic Forum. Source: Home - Livemint.com | 7 Jan 2009 | 1:14 pm Satyam heads towards disaster with Rs 8,000 cr fraudIn the country's biggest corporate fraud involving about Rs 8,000 crore, iconic IT company Satyam was on Wednesday hurtling towards disaster.Source: Daily News & Analysis: Money News | 7 Jan 2009 | 1:14 pm Markets plummet as investors panic after Satyam shockerThe Indian equities markets dropped sharply after Satyam chairman and co-founder B. Ramalinga Raju revealed that the company was involved in a fraud of about Rs.40 billion ($823 million) over several years.Source: IndiaeNews.com: Business News | 7 Jan 2009 | 1:01 pm The rise, rise and fall of SatyamSatyam founder B. Ramalinga Raju, who shocked India by admitting massive fraud over several years, was the Ernst and Young Entrepreneur of the Year in 2007 and the company won the Golden Peacock Global Award for Excellence in Corporate Governance given by the World Council for Corporate Governance.Source: IndiaeNews.com: Business News | 7 Jan 2009 | 1:00 pm Ukraine sets gas offer but wants no middleman - Reuters
Source: Google News India - Business | 7 Jan 2009 | 12:49 pm Satyam interim CEO forms new team to oversee opsSatyam Computer Services has formed a new team to look into its day-to-day affairs, following the resignation of its chairman Ramalinga Raju.Source: Daily News & Analysis: Money News | 7 Jan 2009 | 12:47 pm Niraj Bajaj resigns from Bajaj Hindustan boardSugar major Bajaj Hindustan said on Wednesday that one of its directors, Niraj Bajaj, has resigned from the company's Board.Source: Daily News & Analysis: Money News | 7 Jan 2009 | 12:42 pm India Inc demands stricter norms following Satyam scandalShocked by the revelations of Satyam co-founder and chairman B. Ramalinga Raju that the software services firm had overstated profits and hidden liabilities in a Rs.40-billion scandal, leading industry lobbies called for stricter corporate governance norms.Source: IndiaeNews.com: Business News | 7 Jan 2009 | 12:33 pm Vibrant Gujarat to focus on small industries: ModiThe Vibrant Gujarat Global Investors Summit-2009, begining Jan 12, will focus on the small and medium enterprise (SME) sector, and generate more employment, Gujarat Chief Minister Narendra Modi said here Tuesday.Source: IndiaeNews.com: Business News | 7 Jan 2009 | 12:33 pm CPI-M wants truck operators' demands to be metThe Communist Party of India-Marxist (CPI-M) Wednesday urged the central government to further reduce the price of diesel and take other immediate steps to end the truck operators' strike, which the party said has 'disrupted transport of supplies'.Source: IndiaeNews.com: Business News | 7 Jan 2009 | 12:32 pm Strike hits some refineries, natgas supply - Reuters India
Source: Google News India - Business | 7 Jan 2009 | 12:32 pm Rakesh Tandon new railways catering firm managing directorRakesh Kumar Tandon, an Indian Railways Traffic Service (IRTS) officer of the 1978 batch, took over as managing director of the Indian Railways Catering and Tourism Corp (IRCTC) Wednesday.Source: IndiaeNews.com: Business News | 7 Jan 2009 | 12:31 pm Madhya Pradesh may reduce farm loan rates: governorGovernor Balram Jakhar Wednesday indicated that Madhya Pradesh may lower the interest rates on farm loans, saying the government was committed to fulfil the promises made to the people.Source: IndiaeNews.com: Business News | 7 Jan 2009 | 12:31 pm Ramalinga Raju: From Andhra's pride to disgraceSatyam was the brand image of Andhra Pradesh, Hyderabad was identified with this company, and its founder-chairman B. Ramalinga Raju was a hero to youngsters. But overnight, arguably the biggest fraud in India's corporate history has reduced the chairman and his company to a big zero.Source: IndiaeNews.com: Business News | 7 Jan 2009 | 12:30 pm Lies?Bangalore: The head of Indian outsourcing firm Satyam Computer Services resigned on Wednesday, disclosing that profits had been falsely inflated for years and sending its shares tumbling nearly 80%. India’s biggest corporate scandal in memory threatens future foreign investment flows into Asia’s third-largest economy and casts a cloud over growth in its once-booming outsourcing sector. Also Read Satyam’s Corporate Governance Practices (PDF) Ramalinga Raju, founder and chairman of India’s fourth-largest software services exporter, said in a statement that Satyam’s profits had been massively inflated over recent years but no other board member was aware of the financial irregularities. Meanwhile, the Planning Commission has said the Indian capital market is fully capable of dealing with the problems emerging from this case. Source: Home - Livemint.com | 7 Jan 2009 | 12:26 pm PwC may be asked to re-state accounts of Satyam: P Jain - Moneycontrol.com
Source: Google News India - Business | 7 Jan 2009 | 12:25 pm Oil steady under USD 49!Oil was steady under USD 49, after weak US economic data sparked a bout of profit-taking overnight.Source: Zee News : Business | 7 Jan 2009 | 12:23 pm Oil cos strike affect aviation services!AI`s operations were affected due to strike by 55,000 officers of 14 state-run oil cos.Source: Zee News : Business | 7 Jan 2009 | 12:23 pm German tycoon Adolf Merckle commits suicide!German billionaire Adolf Merckle, assailed by financial turmoil and struggling to salvage his business empire, has killed himself.Source: Zee News : Business | 7 Jan 2009 | 12:23 pm Sensex tumbles over 340 pts !Sensex on Wednesday tumbled over 340 pts at noon to dip below 10,000 pts level.Source: Zee News : Business | 7 Jan 2009 | 12:23 pm `Oil prices to top USD 100 by 2010 end` !Texas billionaire T. Boone Pickens said on Tuesday that oil prices will rise above USD 100 a barrel by the end of 2010 as the global economy recovers.Source: Zee News : Business | 7 Jan 2009 | 12:23 pm US stocks rise by Obama`s stimulus plan!US stocks rallied Tuesday over speculation that President-elect Barack Obama`s stimulus package will jump start the ailing US economy.Source: Zee News : Business | 7 Jan 2009 | 12:23 pm Satyam chairman Ramalinga Raju resigns!Under attack over the USD 1.6 bn acquisition fiasco of firms promoted by his family Satyam ComputerS Chairman B Ramalinga Raju resigned on Wednesday and said he would subject himself to the "laws of land".Source: Zee News : Business | 7 Jan 2009 | 12:23 pm Alcoa to cut more than 15,000 jobs!Alcoa Inc said on Tuesday that it would slash more than 15,000 jobs in the face of recession.Source: Zee News : Business | 7 Jan 2009 | 12:23 pm Huge budget gap underscores need for long-term reform of finances: Obama!Prez-elect Obama has warned Americans about unparalleled prospect of "trillion-dollar deficits for years to come".Source: Zee News : Business | 7 Jan 2009 | 12:23 pm Russia, Ukraine should work out differences to end gas dispute: State Dept!The US has urged Russia and Ukraine to end their dispute over natural gas supplies that has caused a sharp decline in shipments throughout Europe.Source: Zee News : Business | 7 Jan 2009 | 12:23 pm Govt may cut fuel prices by 10 pct by end-JanNEW DELHI (Reuters) - The government may cut fuel prices by up to 10 percent by the end of January, Oil Minister Murli Deora said on Wednesday, a month after the government last lowered state-set rates for petrol and diesel.Source: Reuters: Money News | 7 Jan 2009 | 12:22 pm Strike hits some refineries, natgas supplyNEW DELHI (Reuters) - Officials at state-run oil firms began a strike on Wednesday demanding higher wages, hitting operations at four refineries and cutting gas supplies, although officials said fuel stocks were adequate for now.Source: Reuters: Money News | 7 Jan 2009 | 12:20 pm India drops 18 places in innovation index - Business Standard
Source: Google News India - Business | 7 Jan 2009 | 12:19 pm Textiles, jewellery report sharp fall in exports - Business Standard
Source: Google News India - Business | 7 Jan 2009 | 12:18 pm DoT offers compromise on auctions of 3G spectrum - Business Standard
Source: Google News India - Business | 7 Jan 2009 | 12:17 pm Tata Steel sales decline 14% in Q3 - Business Standard
Source: Google News India - Business | 7 Jan 2009 | 12:16 pm Merrill snaps ties with SatyamInvestment banker DSP Merrill Lynch said it has terminated its services with software services firm Satyam, after coming to know about its "material accounting irregularities."Source: Daily News & Analysis: Money News | 7 Jan 2009 | 12:16 pm Tumbling Satyam drags Sensex down 7 pctMUMBAI (Reuters) - Shares in Satyam Computer Services plunged more than three-fourth on Wednesday after the outsourcer said it had overstated profits for many years, dragging the Sensex to its first loss in the new year.Source: Reuters: Money News | 7 Jan 2009 | 12:14 pm Satyam not first nor will be last corporate fraud: DamodaranThe case of Satyam Computer is neither the first nor the last corporate fraud to have hit India but the investors should always be on guard.Source: Daily News & Analysis: Money News | 7 Jan 2009 | 12:00 pm Satyam Computer saga leaves India Inc in "deep shock"India Inc expressed "deep shock" and "disbelief" at the Satyam saga stating that loopholes must be plugged to restore the confidence of the stakeholders.Source: Daily News & Analysis: Money News | 7 Jan 2009 | 11:58 am Ramalinga Raju: Conman in gentleman's clothing?It took Raju over two decades to become the posterboy of India's Information Technology industry and less than two weeks to turn into the rogue.Source: Daily News & Analysis: Money News | 7 Jan 2009 | 11:49 am Ramalinga Raju’s lies shames ’Satyam’Bangalore: In a stunning 5-page letter detailing years of financial deception at the firm he founded, Satyam Computer Services Chairman B Ramalinga Ramu brought an illustrious corporate career to an undignified end. A poster boy of Indian business after setting Satyam on a path of high growth, hiring thousands of staff and bagging lucrative outsourcing contracts from overseas clients, Raju admitted on Wednesday that profits at the company had been falsely inflated for years. India’s biggest corporate scandal in memory hammered Satyam’s shares, which had already been under pressure since last month. The stock fell more than 80% on Wednesday, leaving the company worth around $500 million, against nearer $7 billion just six months ago. Life for the 54-year-old Satyam chief became tough last month after a botched attempt to buy two firms partly owned by the company’s founders, which he said on Wednesday was a final attempt to resolve the problem of the fictitious assets. “It was like riding a tiger, not knowing how to get off without being eaten,” he said in his resignation letter. His problems were compounded last month when the World Bank barred Satyam from business, citing “improper benefits” given to Bank officials. Satyam has demanded the World Bank retract those comments. But nothing prepared investors for Raju’s stunning revelation of years of inflated profits based on non-existent assets. He acknowledged no other board member had been aware of the financial irregularities, and insisted he had not profited from the company’s inflated results. . Softly spoken Raju, born into a family of farmers, said he was prepared to face up to the legal consequences of a scandal that analysts swiftly dubbed “India’s Enron”. “This development was the last straw to break the camel’s back,” said Sudin Apte, country head of Forrester. “I believe possibly a third of Satyam’s clients will exit in the next 2-3 months.” Indian market regulators and government officials were quick to condemn, and banker Merrill Lynch terminated its engagement with Satyam, which counts General Electric and Nestle among its clients. A management graduate from Ohio University, Raju moved away from agriculture to start a textile unit in 1977 before later moving into real estate. In 1987, he founded Satyam Computer along with his brother B Rama Raju and brother-in-law D V S. Raju, taking the company public four years later. That year, he won his first offshore contract from U.S. tractor maker John Deere & Co. Raju steered the company in the next decade, snapping up joint ventures with GE and US defence and auto parts firm TRW Inc, which was acquired in 2002 by Northrop Grumman. Raju was among the first to spot the outsourcing opportunities of the turn-of-the-millennium Y2K computer problem, which saw the coming-of-age of Indian outsourcers, including Infosys Technologies and Wipro. He then followed up with six acquisitions over the next few years, taking the firm’s headcount to more than 53,000 working in software facilities in India and overseas. With growth slowing sharply for Indian outsourcers due to the global economic turmoil, Satyam’s new management will have an additional challenge - how to boost sagging morale among staff, customers and shareholders. And Raju, the Ernst & Young Entrepreneur of the Year in 2007, will be left having to watch from the sidelines rather than calling the shots at Satyam, which in Sanskrit means ‘truth´. Source: Home - Livemint.com | 7 Jan 2009 | 11:41 am Satyam India's own Enron scandal: AnalystsAnalysts termed the entire Satyam episode as "India's own Enron scandal" after Ramalinga Raju disclosed financial bungling worth thousands of crores.Source: Daily News & Analysis: Money News | 7 Jan 2009 | 10:56 am Close: Sensex ends 700 pts down, plunging on Satyam woesNew Delhi: The Bombay Stock Exchange benchmark Sensex shed its early gains on Wednesday, 7 January tumbling from its 10,000 level by over 700 points on heavy selling resulting from reports of Satyam Computer Services Chairman resigning. After noon Sensex failed to regain as investors continued to be spooked by the Satyam scandal in which the chief Ramalinga Raju has confessed to inflating profits on balance sheet. Markets had commenced the day higher by 133.79 points, the 30-share BSE index then dropped by 749.05 points to end at 9586.88. NSE Nifty dropped by 192.40 points to end at 2920.40. IT Index dipped ny nearly 10%, the maximum among other losers from the banking, oil and gas, metal and power segments. Satyam topped the BSE losers pack by dropping 77.69% to Rs 39.95, it was followed by Jaiprakash Associates by 29.15% to Rs71.45, Reliance Communications Ltd. by 17.02% to Rs206.50, DLF Ltd by 13.54% to Rs 234.60 and Reliance Infrastructure by 13.54% to Rs 559.35. Meanwhile, recession fears still prevailed in Asia with Hang Seng closing more than 3% lower but Nikkei ended 1% up. Source: Home - Livemint.com | 7 Jan 2009 | 10:44 am Reliance Digital to retail India's first electric car RevaReliance Digital has a tie-up with REVA Electric Car Company, (RECC) manufacturer of India's first electric car, for retailing RECC's electric cars through its outlets.Source: Daily News & Analysis: Money News | 7 Jan 2009 | 10:39 am Rupee dips as Satyam shares fallMumbai: The rupee fell on Wednesday, erasing all the gains made during the day, as Satyam Computer Services shares tumbled, pulling down the main index and increasing dollar demand from foreign funds. At 3:34pm, the partially convertible rupee was at Rs48.72/73 per dollar, compared with Tuesday’s close of Rs48.66/69. It hit a high of Rs48.3650 in early trade. Source: Home - Livemint.com | 7 Jan 2009 | 10:33 am FACTBOX - Five facts about outsourcer SatyamBANGALORE (Reuters) - The chairman of Satyam Computer Services, India's 4th-biggest software services exporter, announced his resignation on Wednesday, saying the company's recent profits had been overstated.Source: Reuters: Money News | 7 Jan 2009 | 9:58 am Satyam may be removed from Sensex, NiftySatyam Computers may be removed from the sensex and Nifty following the revelation of manipulation in the company's accounts, analysts said.Source: Daily News & Analysis: Money News | 7 Jan 2009 | 9:57 am Shareholders interest top priority: Satyam BoardNew Delhi: Satyam Computer Services Ltd. confirmed that it has received a letter of resignation from its chairman and founder, B Ramalinga Raju. The letter, dated 7 January has been circulated to all board members, senior leaders and is also marked to the chairman of Securities and Exchange Board of India (Sebi) and the stock exchanges where Satyam is listed. “We are obviously shocked by the contents of the letter. The senior leaders of Satyam stand united in their commitment to customers, associates, suppliers and all shareholders. We have gathered together at Hyderabad to strategize the way forward in light of this startling revelation,” said Ram Mynampati, interim CEO (pending ratification by the Board) and member of the board, who has been mandated by the board to steer the company through this crisis. Satyam said that its immediate priorities are to protect the interests of its shareholders, the careers and security of its approximately 53,000 associates, and meet all its commitments to its customers and suppliers. The company believes that its underlying business model, customer assets and growth prospects remain sound, even in the current challenging financial environment. Satyam has stressed that it is confident of emerging from this latest development and will continue to provide excellent service to clients, while delivering value to shareholders. Source: Home - Livemint.com | 7 Jan 2009 | 9:46 am Satyam case goes to Frauds Office, CAs chief for actionNew Delhi: The Government on Wednesday said the Satyam Computer financial wrong-doing case would be referred to the Serious Fraud Investigation Office, while asking the Registrar of Companies in Hyderabad to submit a report on the IT firm by 14 January. The Government also said stern action under the law would be taken against the guilty after verifying the facts. “We have received communication from Ramalinga Raju. Facts need to be verified. We have communicated the message to the Registrar of Companies in Hyderabad and given them a deadline of January 14, by when we will have all the information,” Corporate Affairs Minister P C Gupta told reporters here. He said the case would be referred to SFIO, once facts are verified. Pointing out that the role of company secretaries, auditors and finance officials in Satyam Computer is being looked into, Gupta said, “Stern action would be taken under the law ... No leniency would be shown if they are found guilty. He said all the regulators have been asked to take coordinated action and ministry officials have been instructed to handle the case on priority. ICAI for severe punishment for Satyam CAs and auditors The apex body of Chartered Accountants ICAI said any member of the body found guilty in the Satyam financial wrong doings would be severely punished and the auditors could even be barred from practising, for the lifetime. “We will ensure that to any person who has not worked according to our standards and our expectations, severe punishment be given,” ICAI President Ved Jain said. Satyam’s Auditors, PriceWaterHouseCooper (PWC), declined to comment on the issue and did not entertain any query. Following a letter from Satyam Chairman Ramalinga Raju, who accepted that he had misrepresented facts in the company’s balance sheet, the role of auditors and accountants for the company has also come under scanner. In fact, the Ministry of Corporate Affairs announced that role of directors and audiotrs at Satyam will be scanned by ICAI and the apex body of Company Secretaries - ICSI. Jain also pointed out that before the body takes any action against the members involved in the “fraud”, it needs to collect all facts and information. “So we are looking into that and we will start our proceedings,” he added Source: Home - Livemint.com | 7 Jan 2009 | 9:41 am Govt to examine role of Satyam auditors, directorsNEW DELHI (Reuters) - The government will examine the role of Satyam's auditors and directors, after its chairman resigned and said the company profits had been inflated, the federal company affairs minister said on Wednesday.Source: Reuters: Money News | 7 Jan 2009 | 9:23 am Satyam interim CEO: committed to clients, staffBANGALORE (Reuters) - Satyam Computer Services is committed to staff, clients and shareholders, the interim CEO said on Wednesday, after its chairman resigned and said the outsourcer's profits had been inflated over the last several years.Source: Reuters: Money News | 7 Jan 2009 | 8:30 am Key dates in the history of the personal computerTaipei: This year will likely be the first year that laptop PC sales will outstrip those of desktop PCs. Here are some landmark dates in the history of personal computers which evolved from heavy desktop computers in the 1970s to the light-weight laptops introduced over the past few years: 1975: IBM launches the IBM 5100, the first computer to look like the modern desktop model complete with a QWERTY keyboard, display and mass storage on tape all found within a single case. 1975: Microsoft is founded by Bill Gates and Paul Allen. 1976: Apple Computer, founded by Steve Jobs and Steve Wozniak, launches the Apple I computer, selling about 200 units. 1981: IBM launches its IBM Personal Computer, running on Microsoft’s DOS operating system. 1981: The Osborne 1, the first commercially available portable personal computer, is launched with a 5" monitor. The computer weighed 23.5 pounds and cost $1,800. 1983: Apple launches the Lisa operating system, one of the first operating systems to use a graphical user interface. 1983: Compaq launches the Compaq Portable, the first IBM-PC compatible portable computer that sold for more than $3,500 and weighed 12.5kg. 1985: Microsoft introduces its Windows operating system. 1988: Compaq launches the SLT/286, retailing for $5,399, the first foldable laptop. 1989: The Sound Blaster card, released by Creative Technology, brings sound into the personal computer. 1991: Apple launches its PowerBook series, the first portable personal computer to have room for a palm rest and a trackball that most closely resembles those found in today’s laptops. 2002: The one billionth computer is sold, data research firm Gartner says. 2007: Asustek launches a lightweight low-cost notebook, known as netbooks. 2008: Laptop shipments overtake those of desktops for the first time on a quarterly basis in the third quarter of 2008. Source: Tech News - Livemint.com | 7 Jan 2009 | 8:14 am Day Trading GuideInitiate fresh short-position if DLF declines below Rs 267, with tight stop-loss. Fresh short-position can be initiated if ICICI Bank fails to surpass Rs 535 with stiff stop-loss. We recommend a sell inSource: Business Line - Home Page | 7 Jan 2009 | 12:00 am Commercial vehicle cos expect 6-month lag for sales to pick upNew Delhi, Jan. 6 Commercial vehicle companies and component suppliers expect it would take about six months before they can see any major revival in business.Source: Business Line - Home Page | 7 Jan 2009 | 12:00 am BGR Energy Systems (Rs 182.35): BuyIt is clearly visible from the charts of the stock that after recording an all-time low of Rs 115 on December 2, it began to trend upward. This trend reversal was triggered by the stock’s prolonged positive divergence displayed in the weeklySource: Business Line - Home Page | 7 Jan 2009 | 12:00 am AIMTC strike: No significant impact on day 2New Delhi/Mumbai, Jan 6 The transporters strike called by All India Motor Transport Congress (AIMTC) has failed to make any significant impact on the second day. The All India Confederation of Goods Vehicles Owners Association (ACOGOA), a lobbySource: Business Line - Home Page | 7 Jan 2009 | 12:00 am Truck sales hit the bump, decline 73% in DecMumbai, Jan. 6 In line with the sharp drop in cargo movement, truck sales plunged 73.5 per cent to 6,221 units in December 2008 against 24,222 units logged in the same month the previous year, according to the Indian Foundation of TransportSource: Business Line - Home Page | 7 Jan 2009 | 12:00 am Merger buzz keeps Satyam, Tech Mahindra scrips tickingMumbai, Jan. 6 The scrips of Tech Mahindra and Satyam Computer Services witnessed a lot of trading activity on the bourses on Tuesday following a news report that the Mahindra group company was evaluating a merger with the Hyderabad-based ITSource: Business Line - Home Page | 7 Jan 2009 | 12:00 am Security fears may deter new outsourcing customersBangalore, Jan. 6 Faced with sluggish business volumes, Indian IT services firms could find it even more difficult to convince new customers to offshore to India in the wake of recent successive terror strikes across the country.Source: Business Line - Home Page | 7 Jan 2009 | 12:00 am Rupee stuck in rangeThe rupee was in a somnolent state over the past week, restricting itself to a dull sideways range. The fact that many of the participants were away on New Year holiday could partly account for this condition in the foreign exchange market.Source: Business Line - Home Page | 7 Jan 2009 | 12:00 am 2008 mall supply falls far short of estimatesNew Delhi, Jan. 6 Nearly 11 million sq ft of expected mall supply slated for 2008 was deferred, as developers reeled under acute cash crunch and retailers went cautious on their expansion blueprint.Source: Business Line - Home Page | 7 Jan 2009 | 12:00 am No reconciliation in sight for Sun-Taro rowMumbai, Jan. 6 All chances of an out-of court settlement between Sun Pharma and Israeli drug-maker Taro Pharma seem to be diminishing, with even reconciliatory efforts ending in acrimony.Source: Business Line - Home Page | 7 Jan 2009 | 12:00 am Government to fast-track insurance Bills in ParliamentThe United Progressive Alliance (UPA) government may be in a position to push for two insurance sector Bills both of which represent critical reforms for the industry to be passed inSource: Business Standard | Front Page Headlines | 6 Jan 2009 | 6:46 pm Taro challenges Sun Pharma to shareholder referendumRejects Indian companys revised offer for residual stake.Source: Business Standard | Front Page Headlines | 6 Jan 2009 | 6:45 pm More lending rate cuts in FebPublic sector banks are expected to reduce their lending rates further next month.Source: Business Standard | Front Page Headlines | 6 Jan 2009 | 6:44 pm Spanish investment in India increases by 500%Mumbai: Spain, which has a strong industrial base in the automotive and infrastructure sectors has witnessed a five-fold increase in its investments in India in 2008 calender year. “Spanish investment in India in the first three quarters of 2008 calender year was $158 million (or €114 million). This had increased by 500% from the previous year,” Chief Executive Officer of Interes ‘Invest in Spain´, Javier Sanz told reporters here. “Our companies have been investing in India in the automotive and infrastructure segment. One of our firms, Caf (Construcciones y Auxiliar de Ferrocarriles SA), is working with Reliance on the Delhi metro project from the railway station to the airport,” Embassy of Spain, Economic & Commercial Counsellor, Teresa Solbes, said. She added that the cost of the 22-kilometre project cost was about €670 million. Spanish fashion retail giant Zara too has shown keenness in investing in India, she added. ‘Invest in Spain´, a government agency for promotion and attraction of foreign investment in the European country, today met with 14 well-known Indian entrepreneurs to explore business opportunities between the two countries. Infosys, Tata Consultancy Services, ICICI Bank, Essar Group, Navneet Publications, X L Telecom & Energy, Tata Motors, Kingfisher Airlines, Kalapuma Steel, Jupiter Infra Trade, Telcon, Wanbury Pharmaceuticals, Roha Dyechem, and ITNL IL&FS were part of the meet today. Spain, which is seeking Indian investment in ICT, renewable energy, biotechnology, aerospace and logistics sectors, says Indian foreign investment in Spain has been fairly insignificant at €10.3 million. Source: World Business - Livemint.com | 6 Jan 2009 | 2:02 pm
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