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11 firms file class action lawsuit against SatyamPost the multicrore Satyam fraud, almost 11 firms have filed class action lawsuit against the IT services company.Source: Moneycontrol Top Headlines | 10 Jan 2009 | 6:19 pm Raju says I was alone, govt thinks otherwiseSecretaries of key Ministries attended the high powered meeting of the government day before. The scale of fraud which has happened could not have been done without very key people of the organisation not knowing about it. But the government does not believe Rajus confessional statement that no one else knew.Source: Moneycontrol Top Headlines | 10 Jan 2009 | 5:29 pm Lazard seeks position on Satyam boardHitesh Jain, Lawyer for Lazzard said the company wants Satyam\'s new board, constitution and decision making right in the IT service company. He said Lazard represented itself to MCA and relevant agencies yesterday in the same context.Source: Moneycontrol Top Headlines | 10 Jan 2009 | 4:33 pm Maytas too may collapse post Satyam scamAfter Satyam, curtains will also likely to fall for Maytas Infra. Raju family has pledged majority of its shareholding and real estate assets of Maytas Infra as collateral to various financial institutionsSource: Moneycontrol Top Headlines | 10 Jan 2009 | 3:59 pm Awaiting mkt reaction to new Satyam board: AM NaikAM Naik, CMD, Larsen Toubro, said he was feeling comfortable in the fact that a new Satyam board is being appointed. He feels the new board, once selected, should first reassure its employees. \"One should not allow Satyam to go down.\" He feels the market on Monday will indicate how they have to react to the constitution of the board.Source: Moneycontrol Top Headlines | 10 Jan 2009 | 1:12 pm Rajus sent to judicial custody till 23 JanuaryHyderabad: Satyam Computer’s disgraced founder Ramalinga Raju and his brother Rama Raju were Saturday remanded to judicial custody till 23 January and would be lodged in the Chanchalguda central jail. The Rajus, who were arrested Friday night and subjected to several hours of interrogation, were produced before the 6th Chief Metropolitan Magistrate at the judges’ quarters at Marredpally in Secunderabad Saturday evening. Raju’s lawyer Bharat Kumar said his clients were remanded to judicial custody till 23 January. He said the court has directed medical treatment to be given by a government doctor to Raju, whose blood pressure was fluctuating abnormally. Raju’s counsel said he will move a bail application on Monday. After the magistrate’s order, the Rajus were whisked away in a van with tinted glasses while police kept the media away by barricading the area. The police had subjected the Rajus to a lengthy interrogation process after their arrest, but Ramalinga Raju, 54, the elder of the two, had in the morning complained of chest pain and uneasiness -- following which doctors from private Care Hospital and a government hospital conducted a medical check-up. A case has been filed against Raju under sections 120-b (criminal conspiracy), 406 (criminal breach of trust), 420 (cheating), 468 (forgery for cheating) and 477-a (fraudulent cancellation of securities) of IPC. Raju had on Wednesday disclosed a financial fraud in the company to the tune of Rs7,o00 crore by inflating profits and showing fictitious assets where none existed. The company’s scrip has fallen nearly 80% since the revelation was made. Source: LatestNews-Home - Livemint.com | 10 Jan 2009 | 1:11 pm Satyam's Raju brothers sent to judicial custody till January 23 - Economic Times
Source: Google News India - Business | 10 Jan 2009 | 1:09 pm Weekly wrap: Satyam triggers market fall - Sify
Source: Google News India - Business | 10 Jan 2009 | 1:07 pm ICAI asks Price Waterhouse to explain Satyam accounts - Economic Times
Source: Google News India - Business | 10 Jan 2009 | 12:57 pm Should NASSCOM be on Satyam board? HDFC, Infy differDeepak Parekh of HDFC, confirmed that he would not be part of the Satyam board. He suggests having members of NASSCOM and LIC as part of the board. Mohandas Pai, HR, Infosys however, does not see the need for anybody from the industry or an industry body like NASSCOM to be part of the board.Source: Moneycontrol Top Headlines | 10 Jan 2009 | 12:56 pm Satyam fraud has dented India Inc's image abroadThe Satyam scandal has caused "serious damage" to India Inc's reputation as well as the country's regulatory authorities outside, the government has said.Source: Daily News & Analysis: Money News | 10 Jan 2009 | 12:49 pm Kiran Karnik's name doing rounds as nominee for Satyam BoardThe government is considering Kiran Karnik, former chief of software industry body Nasscom, as one of the independent directors on the Boardofcrisis-ridden Satyam Computer Services.Source: Daily News & Analysis: Money News | 10 Jan 2009 | 12:48 pm HPCL likely to make profits on fuel sales in Jan-March quarterHPCL had reported a loss of Rs 3,218.92 crore in Q2 of fiscal 2009, while it recorded a loss of Rs 888.12 crore in the first quarter.Source: Daily News & Analysis: Money News | 10 Jan 2009 | 12:47 pm LIC, Lazard may get board seat in SatyamFinancial institutions, including LIC and the US-based Lazard Assets Management, which have stake in Satyam Computer, on Saturday said they expect representation in the new board.Source: Daily News & Analysis: Money News | 10 Jan 2009 | 12:45 pm Port project: Nagarjuna to review Maytas' funds potential - Hindu
Source: Google News India - Business | 10 Jan 2009 | 12:42 pm Over half-a-million have stake in Satyam survival: KamathThe big question on survival of Satyam Computer is of concern to over half-a-million people, who would get impacted indirectly if the IT firm does not come out of the trouble.Source: Daily News & Analysis: Money News | 10 Jan 2009 | 12:42 pm Central Bank of India slashes lending ratesMumbai: State-owned Central Bank of India Saturday cut its lending rates by 0.75% effective from Monday. With the revision, Central Bank’s benchmark prime lending rate (BPLR) presently stands at 12.5%, the bank said in a release. Responding to Reserve Bank of India policy signals, a majority of state-owned banks including leading lenders, State Bank of India (SBI) and ICICI Bank, had reduced their lending and deposit rates in the recent past. The SBI effected a 0.75% cut in its BPLR and a 0.25-1% cut in deposit rates while India’s largest private sector lender, ICICI Bank slashed its lending and deposit rates by 0.5%. Other lenders who have recently reduced their interest rates are Bank of Baroda, Bank of India, Union Bank of India, HDFC and Bank of Rajasthan. Source: LatestNews-Home - Livemint.com | 10 Jan 2009 | 12:41 pm Central Bank of India slashes lending rates - Economic Times
Source: Google News India - Business | 10 Jan 2009 | 12:27 pm The Pravasi Bharatiya Divas ministerial meet - Rediff
Source: Google News India - Business | 10 Jan 2009 | 12:18 pm Gujarat climbs to 4th position in rural education: ASSOCHAM - Economic Times
Source: Google News India - Business | 10 Jan 2009 | 12:16 pm Lateral placement process begin at IIM-AThe lateral process to place experienced students from various programs in IIM-Ahmedabad at non-entry level positions in different sectors has officially begun, a statement issued by the institute said Saturday.Source: IndiaeNews.com: Business News | 10 Jan 2009 | 12:00 pm Fuel supplies yet to normalise, say tradersWhile the nationwide oil sector strike ended Friday evening, fuel supplies to petrol stations across the country had not stabilised by late Saturday afternoon, a trade body official said.Source: IndiaeNews.com: Business News | 10 Jan 2009 | 12:00 pm Raju questioned throughout night; to face court today!Disgraced former Satyam Computer Chairman B Ramalinga Raju and his brother and former director Rama Raju will be produced before a court "some time" on Saturday.Source: Zee News : Business | 10 Jan 2009 | 11:55 am CLB asks Satyam not to implement board decision!The Company Law Board has asked Satyam`s interim management for not implementing the decisions of the board, but has allowed it to continue its business, a senior executive of the firm said here on SaturdaySource: Zee News : Business | 10 Jan 2009 | 11:55 am `AP govt nothing to do with Satyam scam` !Andhra Pradesh government was in no way involved in the massive accounting fraud at Satyam Computer, state Finance Minister K Roasaih has said.Source: Zee News : Business | 10 Jan 2009 | 11:55 am Citigroup, Morgan Stanley talk about merging units!Officials at the embattled banks Citigroup and Morgan Stanley will negotiate over the weekend about possibly combining their wealth management businesses, a deal mostly aimed at bolstering Citi with much-needed cash.Source: Zee News : Business | 10 Jan 2009 | 11:55 am Lloyds`s to pay fine of $350 mn!British-based Lloyds TSB Bank agreed on Friday to pay a 350 million dollar penalty to settle a probe that it illegally handled financial transfers for Iran and Sudan in violation of US sanctions.Source: Zee News : Business | 10 Jan 2009 | 11:55 am US job losses hit 2.6 million !In US, 2.6 mn jobs disappeared in 2008 while unemployment rate hit 7.2% in December.Source: Zee News : Business | 10 Jan 2009 | 11:55 am Half a dozen lawsuits against Satyam in US!A new class action lawsuit was filed in the US courts today against Satyam Computer, against which already about half-a-dozen such suits have been filed.Source: Zee News : Business | 10 Jan 2009 | 11:55 am Global recession: Boeing to cut 4,500 jobs!Boeing Co announced Friday it will layoff nearly 4,500 workers at its commercial airplanes unit.Source: Zee News : Business | 10 Jan 2009 | 11:55 am Awaiting mkt reaction to new Satyam board: AM Naik - Moneycontrol.com
Source: Google News India - Business | 10 Jan 2009 | 11:54 am RoC to take SEBI help in Satyam probe - Business Standard
Source: Google News India - Business | 10 Jan 2009 | 11:28 am Govt mulling another fuel price cut - India Infoline.com
Source: Google News India - Business | 10 Jan 2009 | 11:27 am Govt should take LIC, Nasscom members: Deepak ParekhDeepak Parekh, Chairman, HDFC confirmed that he would not be part of the Satyam board. He suggests having members of NASSCOM, IT Association, LIC as part of the board. He said that the board of directors cannot run the company. However, he added that this board would powerful enough to take any decisions that are necessary.Source: Moneycontrol Top Headlines | 10 Jan 2009 | 11:19 am Govt move good, will help restore confidence: SatyamAfter the government intervened and said it would appoint 10 nominees as the directors of Satyam, the company welcomed the move. We welcome this decision which will ensure uninterrupted operations and restore the confidence of all employees, customers and shareholders across the globe, Satyam, in a statement, said.Source: Moneycontrol Top Headlines | 10 Jan 2009 | 11:11 am Goods worth nearly Rs.1 bn stranded in Tamil NaduTea, vegetables and perishables worth nearly Rs.100 crore (Rs.1 billion) are stranded in various districts in Tamil Nadu on account of the truckers' strike, which continued Saturday for the sixth straight day.Source: IndiaeNews.com: Business News | 10 Jan 2009 | 11:03 am Quick prima facie case against the Rajus must: AuditorsIf justice has to prevail, the government should establish a prima facie case against Satyam Computer's former chairman B. Ramalinga Raju and his brother B. Rama Raju, who is also the company's former managing director, say auditors here.Source: IndiaeNews.com: Business News | 10 Jan 2009 | 11:03 am Striking truckers reject minister's plea for talksUnimpressed with the government's announcement Saturday that diesel prices may be reduced by Rs.3 a litre, and the transport minister's declaration that he was ready to negotiate with them, truck operators who have been on a nationwide strike since Monday said arrested strikers had to be released before talks could take place and the stir called off.Source: IndiaeNews.com: Business News | 10 Jan 2009 | 11:02 am Satyam megascam sends markets tumblingIndian equities markets, which had rallied last week and the first two days of trading this week, took a beating since Wednesday after the Satyam fraud blew up, dampening investor confidence and pushing a key index to close Friday 5.54 percent lower over last week's close.Source: IndiaeNews.com: Business News | 10 Jan 2009 | 11:02 am 'Trade ties with India to improve during Kazakh president's visit'Trade ties between India and Kazakhstan are headed for a major boost during President Nursultan Nazarbayev's visit to New Delhi, scheduled later this month.Source: IndiaeNews.com: Business News | 10 Jan 2009 | 11:02 am Law ministry to help expand business ties with USThe law ministry will continue to streamline the legal framework to help India's business with the US expand, the government said here Saturday.Source: IndiaeNews.com: Business News | 10 Jan 2009 | 11:01 am Nasscom software chief could be on new Satyam board: sourcesNew Delhi: The government is considering Kiran Karnik, former chief of software industry body Nasscom, as one of the independent directors on the board of crisis- ridden Satyam Computer Services. Sources close to development said Karnik could be one of the 10 nominee directors to be appointed by the government. Following the crisis in the Hyderabad-based company, the government disbanded its existing board and proposed to appoint 10 nominee directors to manage the company. When contacted, Karnik said: “I have no knowledge about this. As of now Ihave not been contacted by anyone in this regard.” The nominee members, official sources said, would be from various fields such as law, finance, IT and insurance. Besides, representatives from RBI, SEBI and LIC are also expected to join the new board of Satyam. According to Corporate Affairs Minister P C Gupta, the first meeting of the new board of Satyam will take place within a week of reconstitution of the board.The new board, the minister said, will also take a view on the management of the company. Names of HDFC Chairman Deepak Parekh and IIM-A Professor Jayant Varma are also being tipped to join the new board ofthebattered IT firm. Karnik, former president of Nasscom, was the managing director at Discovery Networks in India from 1995-2001. He spearheaded the launch of Discovery Channel in South Asia in August 1995 and Animal Planetin 1999. Karnik has worked for over 20 years with the Indian Space Research Organisation. Source: Home - Livemint.com | 10 Jan 2009 | 10:55 am India working on forming new Satyam Board - ministerNEW DELHI (Reuters) - India's government is working on choosing the directors for the new board of outsourcer Satyam Computer Services, Corporate Affairs Minister Prem Chand Gupta said on Saturday.Source: Reuters: Money News | 10 Jan 2009 | 10:54 am Central Bank of India slashes lending ratesWith the revision, Central Bank's benchmark prime lending rate (BPLR) presently stands at 12.5 per cent, the bank said in a release issued in Mumbai.Source: Daily News & Analysis: Money News | 10 Jan 2009 | 10:48 am UN resolution yields no result; Israel-Hamas continue fightUnited Nations: The UN Security Council resolution seeking immediate ceasefire in Gaza failed to bring an end to violence, with Israel pressing ahead with its offensive and Hamas continuing to fire rockets, even as top UN officials intensified diplomatic efforts in the region. Both Israel and Hamas virtually ignored the resolution on Friday, even as the death toll in Gaza was nearing the 800 mark in the two-week old military action by Tel Aviv in which 10 Israeli soldiers were also killed. With its reputation and credibility on line, UN officials were intensifying contacts with leaders in the region but so far without any success. Meanwhile, the UN said it is resuming suspended aid distribution for thousands of Palestinians as soon as possible after receiving credible security assurances from “the very highest levels” in Israel. The operations were suspended on Wednesday following an Israeli attack that killed a UN contract driver and injured a second despite receiving Israeli clearance. Secretary-general Ban Ki moon, who spoke to Israeli Prime Minister Ehud Olmert on phone and expressed his disappointment over the rejection of the UNSC resolution, apparently did not get any positive response. Olmert, facing elections within a month and conducting a “popular war”, had described the resolution “unworkable” and Hamas had said it was not consulted. Hamas fired at least 30 rockets and Israel was considering whether to bring in reserve soldiers to expand the offensive, taking it to cities and towns in Gaza. On another front, the Egyptian initiative, backed by France, appeared to have hit the rocks and other international efforts made little headway. Israelis are demanding complete cessation of firing of rockets by Hamas and international monitoring to ensure that it is not able to smuggle weapons from Egypt via tunnels. Egypt, however, is uncomfortable with allowing foreign monitors into the country though it is not averse to technical assistance. Hamas, on the other hand, wants an end to Israeli offensive, withdrawal of all its forces and permanent opening of all crossings between Gaza and Israel to allow humanitarian aid to flow in on regular basis. It contends that by closing the crossings and denying humanitarian supplies, Israel is trying to suffocate Gazans. Facing mounting international criticism, Israel stopped fire for three hours for the third consecutive day to allow Gazans get humanitarian supplies and buy other necessities and to flee to what are considered to be safer areas. But UN officials said the pause was too little, though it helped reduce tensions for sometime. Asked what Ban is doing to get the Council resolution implemented, his spokesperson Michele Montas said he is working through diplomatic channels but declined to give details, citing sensitivity of the issue. The UN Relief and Works Agency for Palestine Refugees in the Near East (UNRWA), which had on Friday suspended food delivery to 750,000 Palestinian refugees after an Israeli attack that killed a UN worker, announced it will resume supplies soon after receiving assurances from Israel. Source: LatestNews-Home - Livemint.com | 10 Jan 2009 | 10:36 am Polaroid reinvents with instant digital cameraLas Vegas: Polaroid Corp, the iconic inventor of the instant photo, has reinvented itself for the digital age, launching a digital camera which makes instant full-colour prints. The PoGo, unveiled at the annual Consumer Electronics Show (CES) in Las Vegas, arrives on the market a year after Polaroid ended production of its legendary instant film camera. “This is the digital version of our traditional instant camera, which consumers have loved since the ‘70s,“ said Jon Pollock, Polaroid’s vice president and general manager of Digital Imaging. “It’s what consumers have told us they want - a fun, easy way to use a digital camera to print photos,” he said. The Polaroid PoGo Instant Digital Camera uses Zink ink-free printing technology to produce instant prints on a special paper embedded with heat-activated dye crystals. “With the push of a button, consumers can select from among the digital photos on the camera, crop or edit them and in less than 60 seconds, print full-color, 2x3-inch prints,” Polaroid said. Photos can be reviewed on a three-inch color LCD screen before printing. Polaroid said the PoGo will be available in March and cost $199. A 10-pack of Zink photo paper will sell for $4.99 dollars. Polaroid filed for bankruptcy protection last month amid a fraud probe into its parent company, Petters Group Worldwide It discontinued production of its celebrated instant film cameras in February of last year and now produces LCD televisions, digital cameras and other consumer electronics products. Source: Tech News - Livemint.com | 10 Jan 2009 | 10:25 am Polaroid reinvents with instant digital cameraLas Vegas: Polaroid Corp, the iconic inventor of the instant photo, has reinvented itself for the digital age, launching a digital camera which makes instant full-colour prints. The PoGo, unveiled at the annual Consumer Electronics Show (CES) in Las Vegas, arrives on the market a year after Polaroid ended production of its legendary instant film camera. “This is the digital version of our traditional instant camera, which consumers have loved since the ‘70s,“ said Jon Pollock, Polaroid’s vice president and general manager of Digital Imaging. “It’s what consumers have told us they want - a fun, easy way to use a digital camera to print photos,” he said. The Polaroid PoGo Instant Digital Camera uses Zink ink-free printing technology to produce instant prints on a special paper embedded with heat-activated dye crystals. “With the push of a button, consumers can select from among the digital photos on the camera, crop or edit them and in less than 60 seconds, print full-color, 2x3-inch prints,” Polaroid said. Photos can be reviewed on a three-inch color LCD screen before printing. Polaroid said the PoGo will be available in March and cost $199. A 10-pack of Zink photo paper will sell for $4.99 dollars. Polaroid filed for bankruptcy protection last month amid a fraud probe into its parent company, Petters Group Worldwide It discontinued production of its celebrated instant film cameras in February of last year and now produces LCD televisions, digital cameras and other consumer electronics products. Source: LatestNews-Home - Livemint.com | 10 Jan 2009 | 10:25 am Olympics-2010 winter games village hit by money woesBy Vancouver: Taxpayers in Vancouver may have to pay for building the 2010 Winter Olympics’ main athletes’ village after private funding dried up amid rising costs and a slowing economy, officials said on Friday. The city said it was committed to completing the $840 million project in time for the Games in February 2010, but was struggling to renegotiate financing for the complex that will house up to 2,800 Olympic competitors. “The Olympic village is a billion dollar project, and the city’s on the hook for all of it,” Vancouver Mayor Gregor Robertson told reporters. “It’s a bitter pill for taxpayers to swallow.” The project’s original financing called for the athletes’ accommodations to be built by a private developer on city land, with the units converted into regular housing that would be sold off after the Olympics to pay for it. The facility near Vancouver’s downtown is being built by privately held Millennium Development, which would also buy the land from the city after the Olympics. The project lenders, led by US-based Fortress Investment Group, stopped advancing money to Millennium in September amid rising construction costs and fears that Vancouver’s slowing housing market meant real estate sales would not pay off the loan. City officials said Vancouver may now end up paying for the project because it agreed in 2007 to guarantee the loan to Millennium. The city did so by promising Fortress it would complete the project in time for the Olympics if Millennium was unable to do. Robertson, who was elected mayor in November, accused the city’s previous administration of trying to hide that agreement from the public. The funding cut-off in September forced the city to lend Millennium $84 million so construction could continue. That money will be exhausted in mid-January. City officials said they did not question Fortress’ decision to cut off funding and added they believed a new financing deal could be reached with the lender. Fortress officials were not available for comment. The amount of money the city eventually loses on the deal would depend on how much real estate prices have recovered in 2010, city officials said. Fortress also owns resort operator Intrawest Corp that runs the Whistler ski area north of Vancouver where alpine ski events will be held in 2010. The Games will have a smaller athlete village in Whistler that is funded separately. Source: LatestNews-Home - Livemint.com | 10 Jan 2009 | 10:17 am Ramalinga Raju and brother Rama Raju in judicial custodyRamalinga Raju and his brother Rama Raju have been sent to judicial custody till January 23.Source: Daily News & Analysis: Money News | 10 Jan 2009 | 10:01 am Sintex Industries Q3 net up at Rs71 croreMumbai: Plastics product maker Sintex Industries on Saturday said its consolidated net profit for the third quarter rose 21.07% at Rs70.84 crore over the the same quarter in the previous fiscal. In a filing to the Bombay Stock Exchange, Sintex Industries informed that it had a net profit of Rs58.51 crore for the same quarter of FY’08. “Its been a challenging quarter for Sintex considering the global and domestic businesses have shown good growth rates despite signs of a slowdown in the domestic economy,” Sintex Industries managing director Amit Patel said. Total income of the company stood at Rs845.34 crore for the quarter under review, against Rs621.03 crore for the same quarter in the year-ago period. Source: Home - Livemint.com | 10 Jan 2009 | 10:00 am Bhave discusses action on Satyam with corp affairs ministerThe regulatory chief had flown in to the capital and is expected to meet other ministers and officials in the finance ministry.Source: Daily News & Analysis: Money News | 10 Jan 2009 | 9:54 am UNITE to hold talks with UK, Japan govts on Satyam fiascoUNITE is the largest union in the UK withabout two million members. Its Indian arm UNITES Professional India is a union for IT and BPO workers.Source: Daily News & Analysis: Money News | 10 Jan 2009 | 9:53 am Lloyds pays $350 mn to US in sanctions caseWashington: Lloyds TSB Bank PLC has agreed to forfeit $350 million for helping customers skirt US sanctions on business transactions with Sudan, Iran and Libya. The bank, headquartered in London, admitted responsibility for criminal conduct under a deferred prosecution deal filed Friday in federal court in Washington. In announcing the settlement, the Justice Department said that as early as 1995, Lloyds falsified wire transfers involving countries or individuals on US sanctions list. The bank was accused of deliberately removing customer information a process Lloyds employees referred to as “stripping” so that wire transfers would pass undetected through filters at US financial institutions. “For more than 12 years, Lloyds facilitated the anonymous movement of hundreds of millions of dollars from US-sanctioned nations through our financial system,” said assistant attorney general Matthew Friedrich. To settle the investigation by the Justice Department and the New York district attorney, Lloyds waived indictment and agreed to the filing of a criminal information. The company will forfeit $175 million to both the United States and New York County, officials said. “We are committed to running our business with the highest levels of integrity and regulatory compliance across all of our operations and have undertaken a range of significant steps to further enhance our compliance programs,” the bank said in a statement announcing the agreement. Under the terms of the deal, the bank is required to cooperate fully with US authorities for the next two years. Manhattan district attorney Robert Morganthau said the case against Lloyds grew out of an investigation into suspicious money transfers by alleged Iranian front companies and charities in New York. After the 2001 terror attacks, the US intensified scrutiny of banks that might be moving money related to terrorists or rogue regimes. As a result, according to court documents, Lloyds executives decided in 2003 to stop providing stripping services to Iranian banks with branches in England, though it continued to do so for four Sudanese banks until January 2007. The US lifted its sanctions on Libya in 2004. Most of the money some $300 million was moved on behalf of Iranian banks between 2002 and 2004, according to prosecutors. Lloyds helped move $20 million on behalf of Sudanese bank customers and about $20 million on behalf of a single Libyan customer, according to the court filing. The US lifted its sanctions against Libya in 2004. LLoyds Bank is a wholly owned subsidiary of Lloyds TSB Group PLC, which as of December 2007, held assets of $700 billion, employing more than 67,000 people. Under the deal struck with investigators, the bank has nine months to turn over all the data it still has that was removed from past money transfer records. US authorities said Friday night they plan to analyze that information to determine how much, if any, of the money was used to promote terrorism. Source: LatestNews-Home - Livemint.com | 10 Jan 2009 | 9:52 am Banks submit details of Satyam exposure to RBIAs part of its probe on scam-tainted Satyam, RBI collected particulars of transactions that various banks including SBI and ICICI Bank had with the IT company.Source: Daily News & Analysis: Money News | 10 Jan 2009 | 9:44 am Banks submit details of Satyam exposure to RBIMumbai: As part of its probe on scam-tainted Satyam, RBI on Saturday collected particulars of transactions that various banks including SBI and ICICI Bank had with the IT company. “We have submitted the details of our business deals with Satyam to the Reserve bank. In the wake of these developments (in Satyam), banks are bound to be extra cautious while lending to such corporates,” SBI’s chief financial officer Ashok Mukand said. When asked, Citibank declined to comment if the company was its client and whether the bank had given details to RBI. “We are unable to comment due to client confidentiality,” a spokesperson of the bank said. SBI is undertood to have extended loans to the Hyderabad-based company, but the officials declined to divulge the details of its exposure to Satyam. Leading public-sector lender, Bank of Baroda, has also submitted the details of its “insignificant” exposure to Satyam to the apex bank, its CMD, M D Mallya said. “We do not have any fund-based exposure to this company (Satyam),” Mallya said. However, the lender has some current account deposits of Satyam. Leading private-sector lender, ICICI Bank, is also believed to have provided the details to the RBI about its dealings with Satyam. The bank, in a statement, had said that it did not have any fund-based exposure to Satyam Computer Services other than a marginal exposure of about Rs 3-crore on account of a forward contract. Satyam is also maintaining a deposit with ICICI Bank in a current account. The balance in this account is not material, ICICI bank said. India’s fourth largest outsourcing firm plunged into a crisis after its chairman, B Ramalinga Raju resigned admitting gross manipulations in the company’s balance sheet. Other leading banks, which have exposure to Satyam include foreign lenders, Citibank, BNP Paribas, HSBC and private-sector lender HDFC Bank. HDFC Bank said it did not have any “significant” exposure to the struggling client. However, the bank has a small exposure in the form of vehicle loans given to Satyam’s employees, an HDFC Bank spokesperson said. Source: Home - Livemint.com | 10 Jan 2009 | 9:39 am Government invites striking truckers for talksTransport Minister T.R. Baalu Saturday urged leaders of truckers across the country to come for talks and to end their six-day-old strike that has hit the economy hard.Source: IndiaeNews.com: Business News | 10 Jan 2009 | 9:31 am Bhave, Gupta may meet PM on Satyam fiascoNew Delhi: Corporate affairs minister Prem Chand Gupta and Sebi chairman C B Bhave, who met here to discuss the developments in scam-hit Satyam, are likely to meet Prime Minister Manmohan Singh on Saturday evening. Gupta had earlier said that there will be co-ordinated action against the tainted founder of Satyam Ramalinga Raju and others for their involvement in the Rs7,800 crore financial fraud. Sources said that Bhave met Gupta to take stock of the situation and progress in the probe. Asked whether they would be meeting Singh together, sources said they may. Meanwhile, the 8-member team of SFIO, which was rushed from Delhi to Hyderabad to investigate into the scam, will submit its report within a week. Raju, who was arrested on Friday by the Andhra Pradesh police, will be produced before the Magistrate on Saturday. Source: LatestNews-Home - Livemint.com | 10 Jan 2009 | 9:25 am Union Bank to review overseas expansion plansDue to the global meltdown, Union Bank of India to reassess its overseas presence plans but is upbeat on domestic expansion. Currently, the bank has an overseas branch in Hong Kong and two representative offices in Shanghai and Abu Dhabi.Source: Moneycontrol Top Headlines | 10 Jan 2009 | 9:23 am HCL Tech, Genpact reach out to clientsIT and BPO giants such as Genpact and HCL Technologies are rushing to soothe overseas clients and reassure them on high levels of corporate governance in their own firms, in the aftermath of the disclosures on financial irregularities at Satyam.Source: Moneycontrol Top Headlines | 10 Jan 2009 | 9:22 am Govt ropes in AIMTC’s rival to break truckers strikeNew Delhi: The Centre on Staurday enlisted the services of striking truckers’ rival union to break the logjam that has pushed prices of essentials higher, even as more states invoked ESMA to arrest those disrupting goods movement. The government, which on Friday said it will ply 15-20 lakh trucks and let private vehicles carry goods without permit, called a meeting with representatives of All India Confederation of Goods Vehicles Owners’ Associations (ACOGOA), which claims command over 40 lakh trucks across the country. “We have invited representatives of ACOGOA for a meeting,” Transport Ministry Joint Secretary S K Dash said, without elaborating the agenda. The ACOGOA is the rival union of All India Motor Transport Congress, whose members have been on strike since Sunday midnight demanding lower diesel prices, duty-free import of tyres and exemption from service tax, among others. The strike has sent prices of essential commodities higher, while states initiated action against truckers. Madhya Pradesh became the seventh state to invoke the Essential Services Maintenance Act. Emerging from the meeting, ACOGOA vice-president Chittranjan Dass said: “We are not participating in the truckers strike.” Asked what was the meeting about, he said: “We discussed our own issues... we requested the government to abolish the import duty on radial tyres.” “They (govt) have assured us of a reduction in diesel prices,” he said, but did not divulge the specifics of the expected price cuts. ACOGOA President Channa Reddy, who also attended the meeting said the association member have been transporting goods wherever there are loads. Reacting to the development, All India Motor Transport Congress vice-president Amolak Singh Bhatia said it was a move by the government was indulging in a face saving exercise. “The government wants to reduce diesel prices but wants to give credit to ACOGOA instead of AIMTC,” he said. “The government may be trying to create an impression that truckers’ strike has been called off through an agreement with ACOGOA,” Bhatia apprehended. Meanwhile, the AIMTC was searching for direction as the union’s top leadership had either been arrested or gone into hiding. The West Bengal chapter of the union said it would meet on today to decide the further course of action. Another truckers’ body, which is also participating in the strike, All India Transport Welfare Association President Ramesh Agarwal refused to recognise the existence of ACOGOA and said the strike will continue. “We will continue with the strike and we will not hold any talks with the government till AIMTC President and other arrested members are released,” he said, adding they were not aware how many of their members have been arrested so far. “The government is in panic and it is entirely responsible for the ongoing strike,” he added. The strike entered the sixth day today even as Uttar Pradesh, Goa, Delhi, Madhya Pradesh, Rajasthan, Gujarat and Andhra Pradesh invoked ESMA to let private vehicles ferry goods without permits as also to enable impounding of vehicles. Source: LatestNews-Home - Livemint.com | 10 Jan 2009 | 9:17 am Citigroup, Morgan Stanley talk about merging unitsNew York: Officials at the embattled banks Citigroup and Morgan Stanley will negotiate over the weekend about possibly combining their wealth management businesses, a deal mostly aimed at bolstering Citi with much-needed cash. The deal to merge Citi’s Smith Barney with Morgan Stanley’s comparable division was confirmed late on Friday by a person familiar with the talks, who spoke on condition of anonymity. The negotiations come as investors digested news that Robert Rubin, a senior adviser to Citi who has drawn heavy criticism, would resign from the bank. The person said it was Rubin’s decision to leave Citigroup and that “there was no inside pressure,” or government pressure. Citi’s shares sank nearly 6% on Friday. Even before the economy started tanking, many shareholders had complained that Citigroup was too huge, and lagging its peers. Calls for a breakup have been going on for years, and have grown louder since the federal government has had to pump billions into the ailing company. The New York-based bank late last year signed an agreement with the federal government to receive an additional $20 billion on top of the initial $25 billion it received. Citigroup was hit particularly hard by the housing market downturn because the bank was heavily invested in mortgages and other loans. The company has reported four straight quarters of losses, and is expected to post yet another loss when it releases fourth-quarter results later this month. If Morgan Stanley ends up buying Smith Barney, it “sounds like the beginning of a liquidation,” said Christopher Whalen, managing director of Institutional Risk Analytics. In addition to the $45 billion infusion from the Treasury Department, which received preferred shares as part of the rescue, Citi also has received a government backstop for up to $306 billion in loans and securities backed by mortgages. As Citigroup’s stock plunged over the past year it fell to $3.77 on 21 November , Rubin, a former Treasury secretary, came under fire from critics who believed he should have had a more active role in preventing the bank’s problems. Rubin, 70, will continue to serve as a board director until his term expires at the next annual meeting in the spring, Citigroup said. Rubin was US Treasury Secretary under President Bill Clinton. For several decades before that, he worked at the Wall Street firm Goldman Sachs Group Inc. But his experience didn’t keep Citigroup from taking on a massive amount of risk that relied on the housing market staying afloat. Source: Home - Livemint.com | 10 Jan 2009 | 9:05 am Petrol, diesel, cooking gas prices to be cutPetrol, diesel and cooking gas prices may be cut further to bring them in line with international rates, Petroleum Minister Murli Deora said here Saturday. The government might reduce petrol prices by Rs.5 per litre, diesel prices by Rs.3 per litre, cooking gas (LPG) prices may be cut by Rs.20-25 per cylinder.Source: IndiaeNews.com: Business News | 10 Jan 2009 | 9:01 am Ramalinga Raju to appear in court todayHyderabad: The chairman of Satyam Computer Services will appear in court on Saturday, a police official said, a day after he was arrested on charges relating to India’s biggest corporate scandal. Ramalinga Raju and his brother B Rama Raju, co-founder and managing director, were arrested late on Friday on charges of criminal breach of trust, criminal conspiracy, cheating, falsification of records and forgery.  At Saturday’s hearing authorities will seek permission to hold Raju and his brother in custody for further interrogation, said V S K Kaumudi, inspector general of police in the crime investigation department in the southern city of Hyderabad. Satyam, which specialises in business software and back-office services for clients including General Electric and Nestle, is based Hyderabad. Chairman and founder Raju resigned on Wednesday after revealing years of accounting fraud, including an admission that about $1 billion, or 94% of the cash and bank balances on Satyam’s books at end-Spetember, did not exist. The board of Satyam, which was scheduled to meet on Saturday, has been dissolved by the government and a minister has said a new board would be constituted with 10 members, which would meet within seven days. There was no move at this time, however, to take over Satyam’s management, said Corporate Affairs Minister Prem Chand Gupta on Friday. Analysts said Satyam’s very existence was threatened by the scandal, which stand-in Chief Executive Ram Mynampati said has pushed the company into a crisis of unimaginable proportions. The company’s market value has shriveled to $330 million, from more than $7 billion six months ago. Satyam’s interim CEO Ram Mynampati said on Thursday the chief financial officer had also offered to resign after Raju’s admissions. Several securities fraud class action lawsuits have been filed in the United States on behalf of investors who bought Satyam American Depository Receipts (ADRs) in the last five years. Raju was questioned by the police early on Saturday morning after overnight interrogation regarding the Rs7,800 crore fraud, engineered by him in the company. “Raju underwent medical check-up early this morning as he is a diabetic and hypertension patient. ” Raju’s lawyer Bharat Kumar said. SFIO team asked to get magistrate permission to quiz Raju A team from the Serious Fraud Investigation Office of the Corporate Affairs Ministry today sought access to Raju, but was told by the Andhra Pradesh Police to get permission from the magistrate. The SFIO team had reached the state director general of Police’s office to question Raju and his brother Rama Raju. Additional director general of Police-CID A Sivanarayana said: “They (SFIO) have to obtain permission from a magistrate.” He said Satyam’s chief finance officer Vadlamani Srinivas has not yet been arrested. Earlier, a Sbi team had sought access to Raju, but was also asked to follow the same procedure. Source: Home - Livemint.com | 10 Jan 2009 | 8:48 am Satyam chairman to appear in court - policeHYDERABAD (Reuters) - The chairman of India's Satyam Computer Services will appear in court on Saturday, a police official said, a day after he was arrested on charges relating to India's biggest corporate scandal.Source: Reuters: Money News | 10 Jan 2009 | 8:45 am Rate cuts of Rs5 in petrol, Rs3 in diesel likely: DeoraMumbai: Petroleum minister Murli Deora on Saturday said the government is considering a further up to Rs5 per litre reduction in petrol, Rs3 a litre in diesel and Rs25 per LPG cylinder prices in the next few days. “We have talked to Prime Minister, in coming days we are trying to reduce the prices of petrol, diesel and LPG...give us 10 -15 days,” Deora told reporters. Oil companies have minimised the losses on petrol and diesel, as crude oil prices have lowered to $40 per barrel from its peak of $147 a barrel in July last year. “From this quarter onwards, we expect the oil marketing companies to start making profits. But, if the crude oil price rises beyond $40 per barrel, then it (profit) will not happen,” Deora added. When asked about a reduction in kerosene prices, he said it is already available at the cheapest rate in India of Rs9 per litre. On 6 December, the Government had reduced prices of petrol and diesel by Rs5 per litre and Rs2 per litre, respectively, as global crude prices hovered around four year low. Source: Home - Livemint.com | 10 Jan 2009 | 8:28 am Satyam scandal shocks Dalal St, key indices tankMumbai: The New Year rally failed to last long and the key indices plunged by about 6.0% as the disclosure of the country’s biggest accounting scandal at Satyam Computer sent shivers down the spine of investors and crushed the impact of a second stimulus package. On actual basis, the Bombay Stock Exchange 30-share barometer tumbled by 1,063.25 points, or 11%, from its intra-trade high of 10,469.72 to end the week at 9,406.47. It, however, registered a loss of 551.75 points, or 5.54%, from its last weekend’s close. The broader 50-share Nifty of National Stock Exchange also tumbled by 173.75 points, or 5.70 points, to end the week at 2,873.00 from its previous weekend’s close of 3,046.75. In a dramatic turn of event, the markets went into a tailspin and crashed by 749 points on Wednesday after India’s fourth largest software exporter admitted to its accounting manipulations, raising concerns over corporate governance issues. The gravity of the stunning development could be gauged by the fall in share price of Satyam, which hit an all-time low on the BSE as well as the NSE. This also led to Satyam’s humble exit from the Sensex family as well as from the BSE IT and Teck indices, BSE-100, BSE-200 and BSE-500. Satyam would be replaced by Sun Pharma in the Sensex and by Reliance Capital in Nifty from 12 January. The mood, however, was upbeat in initial two days as the concerted efforts by the government and the Reserve Bank of India to boost growth pushed up the markets well above psychologically important 10,000-level. The markets also bounced from its trading low of 9,250.82 on Friday after the inflation fell below 6.0% for the first time in ten months. Realty sector, too, was hit hard as it came under a fresh selling onslaught triggered by market perception that several realty companies do not adhere to strict corporate governance practices. DLF fell by 28%, HDIL by 27% and Unitech lost 23%. Satyam fell to Rs11.50 per share, a loss of 86.57% over the week. On 2 January, the RBI announced a cut in the repo rate and the reverse repo rate by 100 basis points each, and also slashed the Cash Reserve Ratio by 50 basis points to 5%. The government announced fiscal measures to support the slowing economy. Barring the BSE-Auto index, which survived to land just in positive terrain, all other sectoral indices ended in the red with an average fall of 0.6% to 24.6%. The BSE-Realty index was the top loser and crashed by 608.42 points or 24.61% to end the week at 1,864.09. On the NSE, the S&P CNX Defty plunged by 114.70 points or 5.32% to 2,043.10 from preceding weekend’s close of 2,157.80. Source: Home - Livemint.com | 10 Jan 2009 | 7:54 am US job losses hit 16-yr high, more layoffs expectedWashington: A staggering 2.6 million jobs disappeared in 2008, the most since World War II, and the pain is only getting worse with 11 million Americans out of work and searching. Unemployment hit a 16-year high of 7.2% in December and could be headed for 10% or even higher by year’s end. Friday’s government figures were “a stark reminder,” said President-elect Barack Obama, that bold and immediate government action is needed to revive a national economy that’s deep in recession and still sinking. More than a half million jobs melted away as winter took hold in December - 524,000 in all, the government estimated - and the true carnage will almost certainly turn out to be even worse when the figures are nailed down more clearly a month from now. “Behind the statistics that we see flashing on the screens are real lives, real suffering, real fears,” said Obama, already moving full-speed with Congress to put together an emergency revival plan a week and a half before taking office. The severe recession, which just entered its second year, is already the longest in a quarter-century and is likely to stretch well into this year. The fact that the country is battling a housing collapse, a lockup in lending and the worst financial crisis since the 1930s makes the downturn especially dangerous. All the problems have forced consumers and companies alike to retrench, feeding into a vicious cycle that Washington policymakers are finding difficult to break. Investors, too. The Dow Jones industrial average fell 143 points on Friday to end the week down nearly 5%, the worst week since November. The Labour Department’s unemployment report showed widespread damage across US industries and workers hitting blue-collar and white-collar workers, people without high school diplomas and those with college degrees. And, there’s no relief in sight. The new year got off to a rough start with a flurry of big corporate layoffs, and there were more on Friday. Airplane maker Boeing Co. said it plans to cut about 4,500 jobs this year, and uniform maker G&K Services Inc. is eliminating 460 jobs. Employers also are cutting workers’ hours and forcing some to go part-time. The average work week in December fell to 33.3 hours, the lowest in records dating to 1964 and a sign of more job reductions in the months ahead since businesses tend to cut hours before eliminating positions entirely. “There is no indication that the job situation would stabilize anytime soon,” said Sung Won Sohn, economist at the Martin Smith School of Business at California State University. “This could turn out to be one of the worst economic setbacks since the Great Depression.” Economists predict a net total of 1.5 million to 2 million or more jobs will vanish in 2009, and the unemployment rate could hit 9% or 10%, underscoring the challenges Obama will face and the tough road ahead for job seekers. All told, 11.1 million people were unemployed in December. An additional 8 million people were working part time a category that includes those who would like to work full time but whose hours were cut back or those who were unable to find full-time work. That was up sharply from 7.3 million in November. The unemployment rate zoomed from 6.8% in November, to 7.2% last month, the highest since January 1993. Last year was the first that payrolls had fallen for a full year since 2002, and the loss was the most since 1945, when nearly 2.8 million jobs disappeared. Though the number of payroll jobs in the US has more than tripled since then, losses of this magnitude are still brutal. Employment last month shrank in virtually every part of the economy construction companies, factories, mortgage brokers, banks, real-estate firms, accountants and bookkeepers, computer designers, architects and engineers, retailers, food services, temporary help firms, transportation, publishing and waste management. The few fields spared included education, health care and government. The lost-job total for December probably understated the reality since some companies probably held off on layoffs around the holidays, economists said. Moreover, the government collects the payroll information around mid-month. So the full extent of the layoffs probably wasn’t captured, making it even more likely there will be big reductions in January and that December’s cuts will be revised upward. Source: Home - Livemint.com | 10 Jan 2009 | 7:25 am Officials review truckers strike as it enters 6th dayNew Delhi: The cabinet secretary on Saturday met senior officials to review the situation emanating from the nationwide truckers strike that entered the sixth day and showed no signs of ending soon. The meeting called by K M Chandrasekhar was attended by secretaries of Ministry of Road and Surface Transport, Defence, Railways, I&B and Petroleum, official sources said, adding that various options to deal with the situation were discussed. Besides, deputy national security advisor and IB officials were present at the meeting. The review meeting comes in the wake of continued stand-off between transporters and the government even as one more state Madhya Pradesh invoked ESMA against the strikers. Delhi, Uttar Pradesh, Andhra Pradesh, Gujarat, Rajasthan and Goa invoked ESMA earlier this week. The Centre has already announced plans to run 15-20 lakh vehicles in the next few days for uninterrupted supply of essential commodities. These would be arranged by impounding trucks and allowing other private vehicles for transportation of commodities without permit. Transporters, on the other hand, have said they will not negotiate with the government until AIMTC members arrested on Friday are released. “We will intensify our stir. There is no question of calling off our strike. There shall be no talks until the arrested leaders are unconditionally released without any cases against them,” an AIMTC top brass said. The stalemate between the government and truckers continued for the sixth day on Saturday despite the arrest of two top leaders of All India Motor Transport Congress. “We are incurring heavy losses in running our business hence strike will continue until the government gives us some solutions,” AIMTC vice-president Amolak Singh Bhatia said. While Transport Minister T R Baalu had announced to act tough against the truckers, the unrelenting transporters said that ‘coercive´measures will not deter them and the strike would continue till the time their demands are fulfilled. “The government is committed to take every necessary steps to ensure smooth supplies...We have advised states to transport essential commodities so that the common man does not suffer,” the minister said on Friday. The AIMTC received a setback on Friday after the arrest of its president Charan Singh Lohara and secretary S Venugopal along with 30 other leaders by the Delhi police under the Essential Service Maintenance Act (ESMA). Home minister P Chidambaram, who had described the strike as “against the interest of people”, said the Centre was in touch with the states to evolve a solution as many of the demands of the truckers pertained to the states only. Source: Home - Livemint.com | 10 Jan 2009 | 6:30 am Economists see longest U.S. recession since WWIIWASHINGTON (Reuters) - The U.S. recession will probably be the longest since World War Two and could worsen without heavy government spending, according to a closely-watched survey of economists released on Saturday.Source: Reuters: Money News | 10 Jan 2009 | 5:46 am Madoff whistleblower wants to be left aloneBOSTON (Reuters) - After a decade of trying to convince U.S. authorities that Bernard Madoff's seemingly high-flying hedge fund was a scam, the man whose warnings could have saved a lot of money for a lot of people issued a terse message to the world: Leave me alone.Source: Reuters: Money News | 10 Jan 2009 | 2:34 am Boeing cuts 4,500 jobs, adds to U.S. employment woeNEW YORK (Reuters) - Boeing Co became the latest U.S. industrial giant to cut jobs on Friday, shedding 4,500 workers from its commercial plane operations, or about 7 percent of the unit total, as it looks to trim costs in the face of a global recession.Source: Reuters: Money News | 10 Jan 2009 | 12:38 am Wall St Week Ahead - Obama optimism seen blunting earnings woesNEW YORK (Reuters) - Wall Street's enthusiasm for President-elect Barack Obama may come full circle next week as he prepares to take office and help to offset what many expect will be a barrage of bleak corporate earnings reports.Source: Reuters: Money News | 10 Jan 2009 | 12:33 am Nifty, Sensex cos to come under peer reviewMumbai, Jan. 9 The Securities and Exchange Board of India has decided to subject all Nifty and Sensex companies to a peer review of their accounting statements in the wake of the Satyam financialSource: Business Line - Home Page | 10 Jan 2009 | 12:00 am Serious Frauds Office team examining Satyam recordsHyderabad, Jan. 9 On a day of dramatic developments at Satyam Computer Services, one thing became clear: Mr B. Ramalinga Raju is likely to appear before SEBI (Securities and Exchange Board of India) on Saturday at 4.30Source: Business Line - Home Page | 10 Jan 2009 | 12:00 am MS previews new Windows version, seeks user feedbackBangalore, Jan. 9 It’s always a good idea to listen to your customer. If you don’t, you might end up creating something they won’t accept. Microsoft learnt this the hard way two years ago when, Vista, the last iteration of itsSource: Business Line - Home Page | 10 Jan 2009 | 12:00 am New facility for providing liquidity to NBFCs clearedNew Delhi, Jan. 9 Following the announcement of liquidity facility for non-banking finance companies (NBFCs) in the recent stimulus package, the Union Cabinet today approved Stressed Assets Stabilisation Fund (SASF) to function as the specialSource: Business Line - Home Page | 10 Jan 2009 | 12:00 am PSU oil officers call off strikeNew Delhi, Jan. 9 As the sun set on Friday, it ensured that the tension written large on the faces of oil PSU chiefs, senior Petroleum Ministry officials and public at large was over, with the oil officers calling off their indefinite strike.Source: Business Line - Home Page | 10 Jan 2009 | 12:00 am Govt to take over management control of Satyam ComputerNew Delhi, Jan. 9 The Company Law Board on Friday allowed the Government to effectively take over the management control of the beleaguered Satyam Computer Services, following the Rs 7,000-crore financial fraud that shook corporate India.Source: Business Line - Home Page | 10 Jan 2009 | 12:00 am Satyam would be out of F&O from January 30, say boursesChennai, Jan. 9 After excluding Satyam Computer from the indices, the exchanges have excluded the stock from the derivative segment as well. This means the stock would not see a free fall or sharp rise from JanuarySource: Business Line - Home Page | 10 Jan 2009 | 12:00 am ‘Rs 1 lakh cr in infrastructure will be committed in 100 days’Chennai, Jan. 9 The Union Minister of State for Industry, Dr Ashwani Kumar, on Friday said that investments worth Rs 1 lakh crore in infrastructure projects will be committed in the next 100Source: Business Line - Home Page | 10 Jan 2009 | 12:00 am Ramalinga Raju surrendersHyderabad, Jan 9 Mr B. Ramalinga Raju, who quit as Chairman of Satyam Computer Services admitting to a Rs 7,136 crore financial fraud, surrendered to the State police here on FridaySource: Business Line - Home Page | 10 Jan 2009 | 12:00 am Inflation rate dips on cheaper primary itemsNew Delhi, Jan 9 The annual Wholesale Price Index-based inflation rose 5.91 per cent during the week ended December 27, slower than the previous week’s annual rise of 6.38 per cent, with the year-on-year inflation rate marking a declineSource: Business Line - Home Page | 10 Jan 2009 | 12:00 am Strikes in a stricken nationSome 35 years after George Fernandes led a famous strike of railwaymen that brought the country to its knees, public sector employees went on strike for the wrong reasons. Oil company executives and truckers struck work. India was held to ransom for the better part of the week. Dwindling oil supplies threatened to bring the economy to a grinding halt. While the government cracked the whip on Friday and oil company employees agreed to come back to work, the question to be asked is how justified are well-paid public sector employees in striking work? Compared with the precarious existence of those in the unorganized sector, their behaviour can only be called aristocratic displeasure. A linked question is why does the government tolerate such behaviour and what took it so long to make the employees fall in line? This needs no complicated explanation: The general election is close by and while the government may wish to be firm with the strikers, it can only afford to appear being firm. Source: LatestNews-Home - Livemint.com | 9 Jan 2009 | 7:42 pm Realty index falls 38% on DLF rumoursThe real estate index dropped 38 per cent during the day mainly on speculation that a key DLF official was exiting the company and partly on fears that realty balance sheets may not reflect theSource: Business Standard | Front Page Headlines | 9 Jan 2009 | 7:40 pm Sebi to review auditors' reports of Sensex, Nifty firmsIn a significant decision, the Securities and Exchange Board of India (Sebi) has decided to set up a panel to review all records maintained by auditors on the quarterly results of companies listed onSource: Business Standard | Front Page Headlines | 9 Jan 2009 | 7:37 pm Jochen Zeitz | I, we and my teamJochen Zeitz is the sort of CEO you heard about in the heady days of the dot-com boom. The handsome, stylish business leader who shirked stiff suits for fitted shirts and probably opened and closed a working day with a mini-marathon on the treadmill. And then sped away in his Lamborghini for a nightclub opening. Most of those CEOs disappeared along with their dot-com stock prices. Zeitz, however, is not the head of a Web 2.0 start-up with a rich buyout offer from Google but CEO and chairman of Puma, an iconic 60-year-old sports goods manufacturer that is now getting a stylish new lease of life. All largely thanks to Zeitz’s acclaimed strategy and management skills.  Sportstar: Zeitz was a surprise pick for CEO and was chosen on the strength of his analysis on what was wrong with Puma. Jayachandran / Mint Zeitz is dressed for the occasion in signature all-black—from the shiny, fitted shirt to the shoes and the sporty Tissot watch. He looks like he’s stepped off the pages of a fashion magazine. At 45, Zeitz is, and looks, remarkably young for the head of a large global brand. But then, the astonishing fact is this: Zeitz has been head of Puma since 1993—when he became the youngest CEO of a listed company in German history at just 30. “When I joined in 1990, as they say in the sport of sailing, Puma was in the doldrums. It was a difficult time and Puma had gone to sleep,” Zeitz recalls as we sit hunched in conversation over plates of food from the buffet. We lean towards each other as outside our little room the after party, complete with thumping music, continues in full swing. I ask him the secret behind his meteoric rise from marketing manager to CEO in three years. “I guess I was in the right place in the right time. I knew when I joined that the brand was very good…it had great potential. I was educated both in finance and marketing and that really helped.” Zeitz is unwaveringly modest, but concedes, “Every time a new CEO came, I got a promotion till I was made CEO myself.” It is an unlikely story for a man who comes from a family of doctors living near the town of Heidelberg, in south-west Germany. Zeitz makes it clear that he, too, was expected to follow the medical path: “I was actually accepted into medical school in Italy. But then I wanted to come back and learn medicine in Germany. And while waiting, I decided to join a business school. I figured it would be useful for doctors to know some business as well!” The budding doctor-manager never went back to medical school. After business school, and a brief stint with Colgate-Palmolive, Zeitz found his way to Puma and business celebrityhood. Every few minutes his minders keep asking Zeitz to wrap up our conversation—he has a flight to Kochi where Puma’s Il Mostro will soon set sail as part of the Volvo Race—but the friendly, intense but soft-spoken CEO holds them at bay. In deference to time, though, we ditch our half-eaten plates and concentrate on the interview. While becoming a CEO at such a young age is exciting, I ask him how he manages the ambitions of those beneath him. What about all the other young managers in Puma who know that Zeitz is young enough to continue as CEO for another two decades? ‘I don’t differentiate between work and life. Work is life for me. My private and professional life is intertwined’ “Well, first of all, we are a much bigger brand. We used to be a €200 million (about Rs1,300 crore) brand. Now we’re a €2.6 billion brand. We had 700 employees, now we have 10,000. So, we’ve been growing and people who came with us on this ride have had a chance to grow so much as well. People have a great chance to do new things and evolve,” Zeitz explains. And this opportunity, he believes, keeps many of his best managers very happy on their jobs. And how would he encapsulate the change he brought to Puma? What’s the secret behind the Financial Times, Germany awarding him “Strategist of the Year” three times in a row? “When I took over Puma was all about function. About performance. People thought that fashion had no place in a sports brand. But we changed all that. We worked and persevered and made Puma a sports lifestyle brand. That is an important reason for our success.” He points to the Puma logo on a board outside: “The puma…the cat…is not just about power and speed and strength…but it is also a very elegant animal. That’s what we’ve tried to reflect in our products.” I point out that he always talks about “we” and “my team”. Surely Jochen Zeitz had a role to play? “No, no. It was a team effort. I don’t like this ‘I-talk’.” Zeitz looks a little sheepish when he says that this is his first visit to the country. “I admit it. This is a first time. I’ve travelled all over the world and two years ago we’ve begun to focus on India as well. But I will come much more often!” And what about life outside work? Is there any room for fun in his schedule? Zeitz waves away the question with disdain—and his reply has a very German ethos about it: “I don’t differentiate between work and life. Work is life for me. My private and professional life is very intertwined.” But surely there must be something he does on the weekends? Read books? Watch movies? I am not to be beaten easily. Zeitz shrugs his shoulders as we get up and his minders converge upon us: “On the weekends…I work.” Curriculum Vitae | Jochen Zeitz Born: 6 April 1963 Education: Degree in International Marketing and Finance, European Business School of Oestrich-Winkel, Germany Current Designation: CEO and chairman Work Profile: Zeitz joined Colgate-Palmolive in 1986, straight from business school. He moved to Puma as marketing manager in 1990. After stints as head of marketing and vice-president of international marketing and sales, he was appointed CEO in 1993. African Story: Zeitz has a particular passion for Africa and has travelled there several times. Puma not only clothes several African sports teams but is also involved with sports development programmes all over the continent. sidin.v@livemint.com Source: LatestNews-Home - Livemint.com | 9 Jan 2009 | 7:37 pm Law catches up with RajusPolice arrest Ramalinga Raju & brother; govt supersedes Satyam board.Source: Business Standard | Front Page Headlines | 9 Jan 2009 | 7:36 pm Sensex may shrug off Satyam jolt, reboundMumbai: Investors rattled by the disclosure of an accounting fraud at Satyam Computer Services Ltd and the subsequent tumble in Indian equity prices could have reason to stay calm and wait for the dust to settle. A study of how the US stock markets performed in the aftermath of similar scandals in that country shows that share prices usually regain lost ground within a week of the initial shock. Benchmark price indices are up or down a year later depending on whether the incident of fraud occurred in the midst of a rising market or a declining one. The long-term trend is not affected by individual cases of corporate scams. Also See The Fraud Factor (Graphic) The data on the impact of fraud on overall stock prices was complied by the Indian unit of Noble Group Ltd, a UK-based research firm. India’s most closely tracked equity price index, the 30-share Sensex of the Bombay Stock Exchange, lost 930 points, or 9%, in the two trading sessions after former Satyam chairman B. Ramalinga Raju on Wednesday said in a letter that he had fixed the company’s books in a Rs7,136 crore swindle that went on for “several years”. The S&P 500 index of US stocks even overcame an initial panic attack when energy company Enron Corp. imploded in October 2001 because of risky bets and falsified financial statements, in what was one of the most high-profile corporate bankruptcies in the world. Yet, the broadbased index was up 2% a week after the Enron disintegrated. It then rose further, a month after the Enron bankruptcy, though it was down 18% a year later because of the global downturn after the bursting of the tech bubble and the 9/11 terrorist attacks in New York. But the S&P 500 was significantly higher a year after Cendant Corp., a New York- based provider of services to real estate and tourism industries, was accused of inflating revenues prior to a merger in April 1998. The same month saw another case that shook the US markets, Sunbeam Corp., a manufacturer of small appliances, was involved in an accounting fraud. The year 1998 was a tough one for global markets as they tumbled in the wake of the Asian financial crisis of 1997; but experts now see that episode as a blip in the extended bull market that began in the mid-1980s. The cases of Enron, Cendant and Sunbeam suggest that large accounting and financial scams of the sort that Satyam has been involved in do not affect the long-term direction of stock prices. But there are two counter examples. Telecom company Worldcom Inc. got into trouble in June 2002 after chief executive Bernard Ebbers came under pressure from banks to cover margin calls on his stocks against which he had borrowed to finance his other businesses. Cases such as Enron, Satyam suggest that big financial scams do not affect the direction of stock prices in the long term In the case of Waste Management Inc., a company in the same business as its name, an accounting scandal in July 1999 did not disturb the US markets at first: the S&P 500 rose 23% in the next week and 17% in the next month, though it was down 5% a year later. Top equity strategists across Asia are advising institutional clients, mainly hedge funds, to take short-term bets on Indian stocks. The Sensex is down 2.5% so far in 2009, after ending with a 52% loss in 2008. “With India now trading at a discount to Asia ex-Japan, earnings expectations slashed, and a tremendous amount of monetary stimulus in pipeline, the case for India has improved dramatically recently,” according to the 8 January Asia strategy report by analysts Daniel McCormack and Tim Rocks at the brokerage arm of Macquarie Bank Ltd. Macquarie has advised investors to increase their exposure to Indian stocks relative to those in markets such as China and Hong Kong that it says have a high beta, a measure of how closely a particular stock or stock index is correlated to a broader market. A high beta market lurches more than the benchmark it is compared to. The brokerage arm of French bank BNP Paribas also recommends India for short-term bets. “I see more upside to India as it has underperformed China 43% since the 27 October low,” said Clive McDonnell, head of equity strategy at BNP Paribas Securities (Asia) Ltd, in a 7 January Alpha Strategy report. nesil.s@livemint.com Source: Home - Livemint.com | 9 Jan 2009 | 7:29 pm BJP’s Advani is new kid on the blogNew Delhi: Two blogposts in three days—one on spirituality and the other on technology— have launched Lal Krishna Advani, the 81-year-old prime ministerial candidate of the Bharatiya Janata Party (BJP), into blogosphere, in the run up to general elections that have to be held before May. In his first post, Advani said he had launched the blog after accepting “the compelling logic” of his “younger colleagues” who told him that “a political portal without a blog is like a letter without a signature”. The blog (blog.lkadvani.in) is part of a portal (lkadvani.in) created by the BJP.  Blog entry: A screenshot of L.K. Advani’s blog. Advani joins prominent political bloggers such as railway minister Lalu Prasad and Jammu and Kashmir’s new chief minister Omar Abdullah. While Abdullah stopped blogging after being heckled and abused by visitors, Prasad’s last post was on 25 July 2008. However, the railway minister had promised to restart blogging in his post on www.mypopkorn.com. While more politicians haven’t started blogging, Advani’s motive could be to reach a different audience, said a blogger-entrepreneur. “I think what he (Advani) wants to do is to appeal to youngsters and give his thoughts directly to them,” said Rafat Ali, a Los Angeles-based blogger, who recently sold his Web publishing company to UK’s Guardian. India has 49 million Internet users, according to a study by digital advertising and marketing firm Komli Media. Most Internet users are young and reside in urban areas, and while the focus of political parties in past elections has been the rural population, the coming elections will see the cities have more representation in Parliament than they have ever had before (the number of representatives from urban areas is expected to rise to 100 from 70 in a 543-member House). And analysts say that at least 40% of the electorate in the coming elections is made up of first-time voters. One of the people behind Advani’s blog said it is also an attempt to make readers (and voters) familiar and comfortable with him. “In his capacity as the leader of Opposition (in the Lok Sabha) and the BJP’s prime ministerial candidate, whatever he says tend to be official. But there’s a lot to a man more than his official designations. What a blog brings out is Advani as a person and as a human being. Nothing official about it,” said Pradyut Bora, convenor of the information technology cell of the BJP. The party has taken out advertisements on Google to push traffic to the blog. “Even if the number of bloggers are limited in India, the impact of these kinds of blogs get amplified through media reports and other channels,” said Ali. Advani is expected to blog at least two-three times a week and the posts “will increase as the campaign picks up”, said Bora. “Then he will have many stories of human interest to tell. He cannot put out all those experiences he comes across during his election tour through official releases.” Source: Tech News - Livemint.com | 9 Jan 2009 | 7:26 pm It’s better to be strong and succeed locallyNew Delhi: For one of the world’s largest cement makers, France’s Lafarge Group made a relatively slow entry into India, the world’s second fastest growing cement market. It bought two cement plants—in Chhattisgarh and Jharkhand—in 1999 and then acquired Larsen and Toubro Ltd’s ready-mix concrete business. The company is now looking to grow organically, said Bruno Lafont, the group’s chairman and chief executive. Edited excerpts: Click here to watch video How do you see the opportunity in India right now? India is very important. We see a slowdown in the world that we mostly think is a short-term issue or challenge. The situation is different from one country to another, even in fast growing markets. It seems to me that India is very solid. Growth is solid, still very high. It is happening in a economy that needs still lots of construction. In the markets we are in, in the eastern part of India, we see a solid situation. How critical is this market for Lafarge’s fortunes? In the short-term, it is limited (2%). We are present in 80 countries. Our strategy is to be exposed to as many growing markers as possible. And the percentage (in India) should grow for two reasons. First, we are growing operations. Second, we are not yet finished with our strategy in India. India will do relatively more construction than other countries and the weight of India in the total (business) will increase. You have less than 5% of the market here in production capacity. How do you see yourself addressing that? First, we are operating in local markets. Our products are heavy, they cannot travel too much without adding to the cost heavily. Second, our strategy in new countries and especially large countries is progressive. So, it’s better to have a strong and successful position locally than to be everywhere and achieving nothing. We have started with the east and I would say today that we are successful. The next step will be to grow organically by creating greenfields… For the time being, it’s more the north and the west. At the same time, we made an interesting move last year, which is to buy out the ready-mix concrete business of L&T. That is an interesting move because it is the first time Lafarge made such an big move in readymix concrete in one market where it is at a starting point. So in a way it’s a major move... It allows us to have a large geographical spread of activities in India because our activities are in almost every city.  Looking for growth: Lafont says the group’s strategy is to select regions and to create excellent positions there. Ramesh Pathania / Mint Will you not be looking at inorganic growth? For the time being, our priority is... organic growth. We might consolidate... but our strategy is to select regions for cement and to create excellent positions there. When do you think ready-mix concrete will become the mainstream product in India? What we have seen in other countries is that the penetration of ready-mix concrete can go quite fast. In South Korea 70% is ready-mix concrete. In Malaysia it is 30%. In other countries, you have 10-15%. In developed countries you have between 70% and 80%. The potential is big. It’s an interesting business because you can differentiate by the way you run your business, by the way you invest, by the way you differentiate yourself by the quality and by the range of products you are ready to deliver. So you have to work on all these things. We have reached a stage where some large infrastructure firms have their in-house ready-mix operations. How do you see this affecting your strategy? That, in fact, is in all the markets we operate, so there is no problem. Sometimes a big builder will find it interesting to have a ready-mix company to help him to sub-contract his concrete and sometimes, they will be interested to have our inputs and technical control on more sophisticated things. Sometimes, it will be only marginal. They will use their things for 80% and our things for 20%. What is your outlook for 2009? We have not yet given our outlook because we believe the last quarter has been creating a lot of uncertainties. We see that there will be growth in India in 2009, even if it will be less that 2008. I think GDP should be (growing at) a minimum 6%. It is enormous growth, you know, compared with the growth in the world. The last forecast I have seen on the world GDP is 0.8%. Source: World Business - Livemint.com | 9 Jan 2009 | 5:43 pm India deals overvalued - private equity chiefLONDON (Reuters) - Indian family businesses are still overvalued by 20 to 30 percent, while the best value is to be found in China, Brazil and sub-Saharan Africa, a partner at a leading emerging markets private equity firm said.Source: Reuters: Money News | 9 Jan 2009 | 5:42 pm Fuel crisis ends as strike faltersNEW DELHI (Reuters) - India's fuel crisis eased on Friday as a strike by oil sector workers ended on its third day after the government called in troops to load tankers and threatened to imprison union leaders.Source: Reuters: Money News | 9 Jan 2009 | 4:32 pm Hyderabad city hurts from Satyam scandalMUMBAI (Reuters) - In India's biggest corporate scandal in memory, the city of Hyderabad has achieved what it has long yearned for: clamorous media attention and recognition.Source: Reuters: Money News | 9 Jan 2009 | 1:53 pm
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