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Satyam\'s renew group mediclaim policy up for renewalOne important decision for Satyam employees lined up in about a fortnight is their group mediclaim policy. CNBCTV18 learns that Satyam\'s group mediclaim cover is ready for renewal and their insurer, Iffco Tokio is waiting to hear from from the IT major.Source: Moneycontrol Top Headlines | 13 Jan 2009 | 5:28 pm DAL to raise $450m from PE investorsDLF Assets (DAL), subsidiary of DLF, has finalised terms with some PE investors to raise USD 450 million, reports CNBCTV18, quoting sources. The sources said that all efforts are on to close deal by Januaryend. However, DAL also working on backup plan in case PE funding doesn\'t work out.Source: Moneycontrol Top Headlines | 13 Jan 2009 | 4:10 pm Bankers have not sold pledged shares: RoltaKK Singh of Rolta said he is surprised by market rumours that bankers have sold the pledged shares. He added that no director or auditor has resigned from the company. Singh said the company has not sold any of its UKbased subsidiaries.Source: Moneycontrol Top Headlines | 13 Jan 2009 | 4:04 pm Infy reveals bank a/c details: An analysisInfosys for the first time has done a quaterly revelation of where it has parked its funds. There is close to about Rs 800 crore additions at this point in time and about Rs 7,700 crore in bank accounts.Source: Moneycontrol Top Headlines | 13 Jan 2009 | 3:24 pm World Bank gives Satyam\'s projects to TCSThe World Bank has hired another Indian IT major Tata Consultancy Services to do much of the work previously being done by Satyam, which has now been debarred by the bank from doing business with it.Source: Moneycontrol Top Headlines | 13 Jan 2009 | 3:04 pm Infy freezes hiring, will honour commitments: DirectorInfosys, one of biggest employers in the country, has said that all general hiring in the company has come to a standstill. Infosys\' Director of Human Resources, Mohandas Pai, says it will hire the marked 27,000 people they had already made the offers to and that there will be no further hiring for now.Source: Moneycontrol Top Headlines | 13 Jan 2009 | 2:20 pm RILRNRL: Govt counsel fires new missiveIn the ongoing Reliance Industries (RIL)Reliance Natural Resources (RNRL) tussle, the government counsel said the Power Ministry is bound by the decision of the Empowered Group of Ministers (EGoM) decision on gas utilisation.Source: Moneycontrol Top Headlines | 13 Jan 2009 | 1:52 pm CID closes in on exISB dean, exSatyam CEOThe noose is tightening around the former top officials of disgraced IT firm Satyam Computer. After the arrest of former Chairman, former Managing Director and former CFO, the Andhra Pradesh police may arrest ousted CEO Ram Mynampati.Source: Moneycontrol Top Headlines | 13 Jan 2009 | 1:10 pm Saw conflict of interest as Satyam member: Narayan Murthy - Moneycontrol.com
Source: Google News India - Business | 13 Jan 2009 | 12:32 pm Infosys still hiring; to ramp up headcount this fiscalAllaying fears of slowdown or lay-offs, IT bellwether Infosys Technologies Ltd is still in hiring mode and plans to ramp up its headcount by this fiscal (2008-09), a senior executive said Tuesday.Source: IndiaeNews.com: Business News | 13 Jan 2009 | 12:31 pm Sensex rises early as Infosys climbs!Shares in Infosys Technologies rose 1.6 percent early on Tuesday after a shaky start and drove the Sensex up.Source: Zee News : Business | 13 Jan 2009 | 12:26 pm Kalam resigns from governing board of Satyam`s non-profit body!Former President A P J Abdul Kalam has resigned from the governing board of Emergency Management Research Institute (EMRI), a non-profit organisation floated by tainted Satyam Computers.Source: Zee News : Business | 13 Jan 2009 | 12:26 pm Russia to resume gas flows today!Russian PM Putin ordered the resumption of gas supplies via Ukraine to Europe on Tuesday.Source: Zee News : Business | 13 Jan 2009 | 12:26 pm ONGC to invest USD 5.3 bn in Krishna Godavari basin by 2013!State-run Oil and Natural Gas Corp (ONGC) will invest USD 5.3 billion in developing gas finds in two of its eastern offshore Krishna Godavari basin blocks to produce 25 million standard cubic meters per day of gas by 2013.Source: Zee News : Business | 13 Jan 2009 | 12:26 pm Global economy to post "significant pick up" in 2010: G10!The global economy will slow sharply this year before posting a "significant pick up" in 2010, the Group of 10`s central bankers said on Monday.Source: Zee News : Business | 13 Jan 2009 | 12:26 pm Govt may slash fuel rates on Thursday; likely to free pricing!The government may on Thursday cut petrol, diesel and domestic LPG prices, besides freeing fuel pricing from administrative control, a petroleum ministry official said on Tuesday.Source: Zee News : Business | 13 Jan 2009 | 12:26 pm Infosys Q3 net profit up 33% at Rs 1,641 cr!Software major Infosys Technologies on Tuesday announced a 33.31 percent growth in consolidated net profit at Rs 1,641 crore for the third quarter ended December 31, 2008, over the corresponding period a year ago.Source: Zee News : Business | 13 Jan 2009 | 12:26 pm Ramalinga Raju had several benami accounts: Report!As the Satyam saga continues to unfold, more revelations are coming to the fore. Reports are now suggesting that the Income Tax Department had in early 2002 found a number of benami bank accounts being operated by Ramalinga Raju.Source: Zee News : Business | 13 Jan 2009 | 12:26 pm Alitalia seals accord with Air France!Italian airline Alitalia will sell Air France-KLM a 25 percent stake for euros 323 million under a cooperation accord, Alitalia officials said on Monday, paving the way for a revamped Alitalia to begin operations on Tuesday.Source: Zee News : Business | 13 Jan 2009 | 12:26 pm Indian sugar drops on imports, post-strike supplies - Reuters India
Source: Google News India - Business | 13 Jan 2009 | 12:22 pm Rupee has resistance at 49.20/49.30: Commtrendz Research - Moneycontrol.com
Source: Google News India - Business | 13 Jan 2009 | 12:20 pm No need to press panic button: Mukherjee on SatyamIndia on Tuesday said appropriate steps are being taken to address the Satyam issue and there was "no need to press the panic button".Source: Daily News & Analysis: Money News | 13 Jan 2009 | 12:17 pm Dating in DelhiDelhi is a city of weddings; exuberant, loud and lavish.  We also feature an interview with Rishi and Anuja Jaitly from the United States. The couple got married after spending much of their dating life in Delhi. Source: LatestNews-Home - Livemint.com | 13 Jan 2009 | 12:15 pm Govt mulls bail-out options for Satyam - Sify
Source: Google News India - Business | 13 Jan 2009 | 12:09 pm Jammu and Kashmir to have 119 model villagesJammu: Jammu and Kashmir government will set up 119 model villages in the state at an estimated cost of Rs142.80 crore under Prime Minister’s reconstruction plan, the state rural development minister Ali Muhammad Sagar said Tuesday. Every village has been allocated a budget of Rs 1.2 crore to be spent on for developing it a model village, he said. The minister, who chaired a high level meeting of the rural development department, stressed the need for proper implementation of the scheme so that welfare measures initiated by the government percolate to ground level. Calling for accountability and transparency in the implementation process, Sagar said that due care should be taken for completing the process within stipulated timeframe. “We have to ensure timely execution of the schemes so that people feel a sense of connectivity with implementing agencies and government as a whole,” he said. The Rs2,400 crore Prime Minister’s reconstruction plan for Jammu and Kashmir includes upgradation of infrastructure in critical sectors, including power, road, communication, education, civic amenities, tourism, agriculture and food processing, industry, employment and income generation and relief and rehabilitation. Source: LatestNews-Home - Livemint.com | 13 Jan 2009 | 11:52 am Close: Sensex ends flat despite Infosys Q3 gainsNew Delhi: The Bombay Stock Exchange benchmark Sensex ended flat, 0.42% down on Tuesday, 13 January after a day of seesaw session on uncertainty of Q3 corporate results and weak opening of London Stock Exchange. Markets opened weak on cues from US indices that ended negative and weak Asian markets but soon bounced back on account of positive sentiments brought by the announcement of third quarter results of Infosys Technologies. IT and technology sector rallied the maximum on the index, Infosys rose as 6.36% after its Q3 results showed 33% jump in quarterly net profit at Rs1,641 cr. After noon Sensex traded choppy but recovered over 150 points during midsession only to drop near closing after stocks of banking and metal sectors succumbed to profit-taking. The 30-share BSE Sensex ended 38.69 points down at 9,071.36 and broad based 50-share NSE Nifty was at 2744.95 or 28.15 points down. Satyam Computer Services Ltd continued being battered against accounting fraud scandal and ended at Rs31.25, with investors still hoping that government appointed board will revive firm’s operations. Also Read Satyam dips, no quick-fix seen After morning rally, oil and gas sectors also slipped to red with ONGC losing 3.47% at Rs630.30. Leading the losers was Reliance Communications Ltd at Rs 168 or 6.59%, followed by Housing and Development Co at Rs1,553.45 or 4.21% and Tata Motors at Rs 155.25 or 4.11% Gainers following Infosys on the BSE index were Wipro, rising by 6.05% to Rs 241.10, Ranbaxy Laboratories by 4.57% to Rs 216.40 and Tata Power by 3.40% to Rs 752.10. Also Read TCS rebounds on World Bank contract Meanwhile, Asian bourses also traded negative on expectations of dismal Q3 results as Sony hinted on posting its first ever operating loss in 14 years. Hang Seng ended 2% down and Japan’s Nikkei lost almost 5%. Source: Home - Livemint.com | 13 Jan 2009 | 11:50 am Gold crashes on weak global cuesNew Delhi: Gold prices crashed to lose Rs350 at Rs13,150 per 10 gram in the national capital on Tuesday on hectic selling by stockists sparked by a weak global trend and drying up of retail buying. Silver also tumbled by Rs570 to Rs17,920 per kg. The metal suffered heavy losses after its prices dropped in London for the third straight day as the dollar strengthened against the euro and oil prices slipped, reducing the metals appeal as an alternative investment and hedge against inflation. Restricted buying by retail customers added to the downfall as buying for “Makarsakranti” is almost over amid off marriage season, traders said. They said the metal in overseas markets, which normally set price trend here recorded a hefty loss of 37.70 dollar an ounce at 815.20 dollar as euro fell against the dollar on speculation that the European Central Bank will cut interest rates. Oil extended last week’s 12% drop on concern that output cuts by OPEC would fail to counter lower demand and reduced concerns of inflation, they added. The weakening trend extended to silver after the metal for ready delivery tumbled by Rs570 at Rs17,920 per kg and weekly-based delivery by Rs600 at Rs17,760 per kg. Silver coins dropped by Rs200 at Rs26,300 for buying and Rs26,900 for selling of 100 pieces. Standard gold and ornaments plunged by Rs350 each at Rs13,150 and Rs13,000 per 10 gram, respectively. Sovereign lost Rs100 at Rs10,600 per piece of eight gram. Source: LatestNews-Home - Livemint.com | 13 Jan 2009 | 11:45 am Fin institutions sell 6 pct stake in Pyramid Saimira - Reuters India
Source: Google News India - Business | 13 Jan 2009 | 11:43 am Infosys BPO headcount falls by 386 in Q3 FY ’09Bangalore: Infosys Technologies on Tuesday said the number of employees at its business process outsourcing subsidiary, Infosys BPO, fell by as much as 386 in the third quarter of this financial year. For the third quarter ended 31 December 2008, the employee strength of Infosys BPO stood at 16,941, while in the previous quarter the company had 17,327 employees. Thus, quarter-on-quarter Infosys BPO has recorded an headcount loss of 386 employees or 2.27%. However, on a year-on-year basis there has been a rise of 1,546 employees. Meanwhile, the employee strength of Infosys Technologies increased by 2,772 employees in October-December 2008 over June-September 2008, and by over 14,477 employees in the third quarter 2008-09 over the year-ago period. During the quarter ended 31 December 2008, Infosys and its subsidiaries hired 5,997 employees, while the net addition was 2,772. “We have seen a decline in attrition this quarter,” Infosys’ director (Human Resources) Mohandas Pai said while announcing the third-quarter results and added “we have enhanced our investment in training and certification as part of our efforts to improve productivity and capability”. Source: LatestNews-Home - Livemint.com | 13 Jan 2009 | 11:42 am Satyam to remain listed as of yet: NYSENew York: The New York Stock Exchange has said that it will delist the scrip of Satyam Computer Services only if the company’s average share price for 30 trading sessions dips below $1. After resuming trading on Monday, shares of Satyam plummeted 84% to close at $1.46. It had touched its intra-day low at $0.78. Asked if the NYSE will issue a notice for possible delisting of the company for shares dipping below $1, NYSE spokesperson said in an e-mailed statement, “No, the average closing price of a security must be less than one dollar over a consecutive 30 trading-day period. “When that average price is reached, the company receives a letter from New York Stock Exchange Regulation informing the company that it has six months to get the price above one dollar or face suspension and delisting.” The scrip of Satyam had opened at $1.04 on the bourse on Monday. NYSE had halted Satyam’s trading on 7 January after the disclosure of fraud by its founder-Chairman B Ramalinga Raju. However, it resumed trading on Monday after assessing the company’s regulatory filing and its suitability to remain listed. Meanwhile, shares of Satyam on Tuesday were trading at Rs32.05, down 6.83% in afternoon trade on the Bombay Stock Exchange. Source: Home - Livemint.com | 13 Jan 2009 | 11:34 am Infosys not averse to acquiring Satyam customersByPTI Bangalore: Software major Infosys Technologies Ltd would not poach on beleaguered Satyam Computers’s employees but said it’s not averse to acquire customers of the scandal-hit competitor. Infosys made this position clear, a day after its chairman and chief mentor N R Narayana Murthy reiterated that his company would not act on any CVs received from Satyam employees to ensure that nothing is done that would adversely impact the Hyderabad-based firm’s future. At a press conference to announce the company’s third quarter results here today, Infosys CEO S Gopalakrishnan confirmed that some of Satyam’s customers have approached the Bangalore-headquartered, NASDAQ-listed company. Gopalakrishnan stressed that Infosys would not proactively go after (to acquire) Satyam’s customers but if the latter approached his company, it would be treated as any new business and Infosys would take the offer if its terms and conditions are agreeable for these clients. There are many customers for whom Infosys and Satyam are working together. “...some of the companies (Satyam’s customers) are our clients also, they have approached us”, he said. Infosys sought to make a distinction between the company’s stand of not entertaining the CVs of Satyam employees, and not being averse to acquiring its clients. “They (Satyam employees) are not client employees; they are Satyam employees,” Gopalakrishnan said. Head -- HRD and Education & Research, T V Mohandas Pai argued that it’s not right for the industry to poach professionals from companies in trouble. Chief Financial Officer, V Balakrishnan, said regulators should take decisive, strong and quick action in regard to Satyam scam so that it acts as a deterrent. Source: LatestNews-Home - Livemint.com | 13 Jan 2009 | 11:33 am Police conducts raid at offices of Satyam auditor PWCAndhra Pradesh Police on Tuesday conducted searches at the office of PWC the firm that audited the accounts of defamed Satyam Computer.Source: Daily News & Analysis: Money News | 13 Jan 2009 | 11:32 am Xylo enters market, targets sedan, InnovaNashik: Leading automobile maker Mahindra and Mahindra Tuesday launched Xylo, a multi-purpose vehicle, targeting high-end consumers. “With the launch of the Mahindra Xylo, the era of sedans is under serious threat. The sedan has long been considered the ultimate in high-end mobility but the Xylo is all set to change this perception,” Mahindra Group vice chairman and managing director Anand Mahindra told reporters. “We are targetting sedan and Innova buyers,” Mahindra auto sector, chief of operations Rajesh Jejurikar said. Priced lesser than Innova, Xylo E2, the basic model, would come at Rs6.78 lakh ex-showroom Delhi and Xylo E8, the advanced version, is priced at Rs8.40 lakh. The basic model of ‘Innova´ is priced at Rs7.60 lakh and advanced model costs Rs9.29 lakh. Dzire, which has a sales of 5,000 per month, is priced at Rs5.84 lakh. “People opting to buy Dzire can move to Xylo with reasonable ease,” Jejurikar said. The car has been developed at the company’s Nashik facility with an investment of Rs550 crore. Xylo would be rolled out in 36 towns with 57 dealers. By the end of February, another 44 dealers would be added, Jejurikar said. The company is making 60 Xylos a day at the facility with a capacity to make 25,000 a year. “We can ramp up from 25,000 easily if the demand is good,” Mahindra auto sector President Pawan Goenka said. The company has tied up with group company Mahindra Finance, four public and private sector banks for financing of Xylo. MORE PTI GN HVJ KG Source: LatestNews-Home - Livemint.com | 13 Jan 2009 | 11:32 am BSE Sensex falls 0.4 pct; Infosys climbs 6.4 pctMUMBAI (Reuters) – The BSE Sensex fell 0.4 percent on Tuesday in seesaw trade, indicating fragile investor sentiment ahead of quarterly results but Infosys Technologies Ltd bucked the trend on strong earnings.Source: Reuters: Money News | 13 Jan 2009 | 11:30 am India tops consumer confidence globally - surveyMUMBAI (Reuters) - India ranks foremost in consumer confidence as investors have been safeguarded by India's relatively nascent financial markets, a study by market researcher Nielsen showed.Source: Reuters: Money News | 13 Jan 2009 | 11:26 am Unitech reschedules its loan of Rs1,000 crNew Delhi: The country’s second largest realty firm, Unitech Ltd, which at present is facing a financial crunch, has rescheduled loans of Rs1,000 crore to banks, out of Rs2,500 crore that it needs to pay by March 2009. According to sources, Unitech has rescheduled Rs1,000 crore loans and is negotiating with banks for Rs500 crore. The company has a total debt of about Rs8,000 crore, of which Rs2,500 crore is to be paid by March. The RBI has recently relaxed asset classification norms for commercial real estate advances, which are restructured up to June 2009. “As the real estate sector is facing difficulties, it has been decided to extend exceptional/concessional treatment to the commercial real estate exposures which are restructured up to June30, 2009,” the apex bank said. Last month, Unitech chairman Ramesh Chandra had said that it was working on many options to mobilise about Rs2,500 crore to retire part of its debt. “We are working on many options to raise funds,” Chandra had said, adding it could be through sale of some completed projects or offloading equity at project level. “Debt is about Rs8,000 crore. I feel that in another 4-5 months, we should be able to bring it to half. Disposal of assets could be anything between Rs1,200-1,500 crore. Private equity will be another Rs1,000 crore. And transfer of loans to telecom venture will be about Rs2,000 crore,” he had said. Among properties which are on the block for sale is its office building at Saket in the national capital and a hotel in Gurgaon, comprising 199 rooms. The company’s shares were trading at Rs34.10 at Bombay Stock Exchange in late afternoon trade. Source: LatestNews-Home - Livemint.com | 13 Jan 2009 | 11:19 am Mahindra launches Xylo at Rs 6.24 lakh - Business Standard
Source: Google News India - Business | 13 Jan 2009 | 11:18 am 27 involved in Satyam scam, more arrests likelySatyams Raju brothers spent another night in jail on Monday after the court deferred their bail hearing till January 16. But, Satyam case continues to throw up more muck. Sources tell CNNIBN 27 others might be involved in the scam and there could be more arrests later on Tuesday or Wednesday.Source: Moneycontrol Top Headlines | 13 Jan 2009 | 11:15 am Oil firms hope for recovery in refinery marginsNew Delhi: Domestic oil producers, including Hindustan Petroleum and Indian Oil subsidiary Chennai Petroleum, are likely to see some recovery in their squeezed refinery margins this year. “The refinery margins have improved in January. But in any case we can expect refinery margins to be between $6 and $8 per barrel against above $8 in 2007-08,” Chennai Petroleum Corp., managing director K.K. Acharya told reporters on the sidelines of the Petrotech-2009 conference. Acharya said, “The refinery margins remained negative in the third quarter of this fiscal (October-December 2008). Though it was marginally negative in second quarter of 2008-09 (July-September), it would have impact on overall gross refinery margins during this financial year. “If the (crude oil) prices stabilise, the gross refinery margins during the entire financial year can be slightly lower than $8 per barrel. “We are not planning any cut in crude oil import in the prevailing situation rather we would ramp up import by one million barrel. We have been hit because naphtha exports have dipped by almost 50%. We have planned to expand our refinery capacity to 10.5 million tonnes from existing 9.5 million tonnes.” Hindustan Petroleum chairman and managing director Arun Balakrishnan also confirmed gross refinery margins have moved northwards so far this month. “Refinery margins have improved during this month. Before that in the past three months, refinery margins were low. The refinery margins have been ranging between $5 and $7 during the past three months.” Crude oil prices have moved down from a high of $147 a barrel in July last year to below $40 per barrel last month. Source: LatestNews-Home - Livemint.com | 13 Jan 2009 | 11:15 am DAL to raise $450m from PE investors - Moneycontrol.com
Source: Google News India - Business | 13 Jan 2009 | 11:14 am Indian equities end tad lower amid weak sentimentsIndian equities which remained weak during most of Tuesday made a slight recovery as trading drew helping a key index to end the day with a marginal loss of 0.31 percent over its previous close.Source: IndiaeNews.com: Business News | 13 Jan 2009 | 11:00 am Jet Airways group remains India's largest airlinePrivate carrier Jet Airways, together with its low-cost airline JetLite, was India's largest domestic air services operator in 2008, ferrying some 12.01 million passengers for a market share of 29.5 percent, latest data showed Tuesday.Source: IndiaeNews.com: Business News | 13 Jan 2009 | 11:00 am India tops consumer confidence globally: surveyMumbai: India ranks foremost in consumer confidence as investors have been safeguarded by India’s relatively nascent financial markets, a study by market researcher Nielsen showed. Indians are “the most optimistic lot globally who think that their country will be out of the economic recession in the next twelve months,” Nielsen said in a biannual report. The Nielsen Global Consumer Confidence study polled more than 26,000 consumers across the globe about their confidence levels and economic outlook. “Despite the global economic recession Indians seem to be quite confident of the economy picking up in the near future,” it said. “They believe that the global recession will have limited impact on India where the domestic market is believed to be large enough to support continued growth.” The Nielsen Global Consumer Confidence Index surveyed 52 markets of which 43 recorded a fall in the consumer confidence index from the first half of 2008. “In such conditions it is the fast developing markets that are turmoil-proof with their consumers appearing to be more optimistic,” Nielsen said. Of Indian respondents, 16% said they considered job prospects in the country “excellent” while 59% felt job prospects were “good”. The survey found 75% respondents were upbeat about local job prospects over the next 12 months. “Though the conditions might not be as great as they were in the past few years, the growth opportunities in India are better than most other countries at the moment,” it added. But the economy and terrorism ranked as major concerns among Indian consumers. India’s concern about terrorism topped the list when the survey was conducted in October last year, ahead of the terror attacks in Mumbai. Source: LatestNews-Home - Livemint.com | 13 Jan 2009 | 11:00 am IRFC invites bids for Rs7 bn of bondsMumbai: Indian Railway Finance Corp (IRFC), a state-run funding agency, has invited bids for at least Rs7 billion of bonds, two sources, including a company official, said on Tuesday. The company will issue 5-year, 10-year and 15-year bonds and bidding will close at noon on Wednesday. IRFC had on 7 January postponed its Rs7-billion bond issue, as bond yields rose after government announced a higher-than-expected borrowing plan. “The terms are the same as the previous issue (on 7 January). How long can we wait? We have to go ahead with our plans though the market is volatile,” the IRFC official said. Source: LatestNews-Home - Livemint.com | 13 Jan 2009 | 10:49 am Ready to bail out Satyam, if required: Govt - Moneycontrol.com
Source: Google News India - Business | 13 Jan 2009 | 10:38 am PM, Nath hold discussion against Satyam backdropPrime minister Manmohan Singh on Tuesday held discussions with Commerce and Industry minister Kamal Nath and is believed to have reviewed the Satyam issue.Source: Daily News & Analysis: Money News | 13 Jan 2009 | 10:32 am Rolta says biz in order as shares plungeMUMBAI (Reuters) - Rolta India Ltd on Tuesday said all its businesses and operations were in order in a clarification issued after the software service provider's shares crashed nearly 60 percent to a 3-½ year low.Source: Reuters: Money News | 13 Jan 2009 | 10:29 am Satyam to remain listed as of now: NYSEThe New York Stock Exchange has said that it will delist the scrip of Satyam Computer Services only if the company's average share price for 30 trading sessions dips below one dollar.Source: Daily News & Analysis: Money News | 13 Jan 2009 | 10:25 am Mkts end weak amid volatility; Reliance pack declines - Moneycontrol.com
Source: Google News India - Business | 13 Jan 2009 | 10:19 am Infosys sales rises 35.5% yoy - Economic Times
Source: Google News India - Business | 13 Jan 2009 | 10:09 am Kalam quits Rajurun NGOWhen former President APJ Abdul Kalam decided to become chairman Emeritus at the Satyamfunded NGO Emergency Management and Research Institute (EMRI), little did he know that he was associating himself with one of corporate India\'s biggest scandals.Source: Moneycontrol Top Headlines | 13 Jan 2009 | 10:09 am Top names quit board of Raju promoted bodyAlmost all the top names including former president of India A.P.J. Abdul Kalam have resigned from the board of Emergency Management and Research Institute (EMRI), promoted by disgraced founder and former chairman of Satyam Computer Services B. Ramalinga Raju.Source: IndiaeNews.com: Business News | 13 Jan 2009 | 10:03 am Markets fail to hold on to meagre gainsThe Indian equities markets could not hold on to the marginal gains of the day, about an hour before close Tuesday, with a key index trading about 0.61 percent below its previous close.Source: IndiaeNews.com: Business News | 13 Jan 2009 | 10:03 am Truckers' strike off but normalcy may take another dayA day after the truckers called off their eight-day agitation, movement of commodities started resuming on major highways Wednesday, even as supplies of fruits and vegetables continued to take a hit in some areas. Transport companies said they expected normalcy to return by Wednesday evening.Source: IndiaeNews.com: Business News | 13 Jan 2009 | 10:03 am Further fuel price cut to reduce operating profits: HPCLHindustan Petroleum Corporation Ltd (HPCL) Tuesday said it is opposed to further cut in fuel prices by the government as it will lead to a reduction in the company's operating profit.Source: IndiaeNews.com: Business News | 13 Jan 2009 | 10:02 am Bharat Petroleum in talks for Reliance gasState-run Bharat Petroleum Company Limited (BPCL) Tuesday said it was negotiating with Mukesh Ambani-led Reliance Industries for allocation of gas from the Krishna-Godavari basin, off the Andhra Pradesh coast.Source: IndiaeNews.com: Business News | 13 Jan 2009 | 10:02 am Advani promises pragmatic measures to revive agricultureThe relief package for farmers announced by the United Progressive Alliance (UPA) had not worked, Bharatiya Janata Party (BJP) leader L.K. Advani said Tuesday, promising a more 'far-reaching' agricultural policy if his party came to power.Source: IndiaeNews.com: Business News | 13 Jan 2009 | 10:02 am IDFC signs deal to build thermal, solar plants in GujaratThe infrastructure development arm of a leading finance company in the infrastructure space Tuesday announced that it had signed two memorandums of understanding (MoUs) with Gujarat state government to build a thermal and solar power plant.Source: IndiaeNews.com: Business News | 13 Jan 2009 | 10:01 am Govt orders serious fraud probe into SatyamNew Delhi: The government on Tuesday ordered investigation into the Satyam scandal by the Serious Fraud Investigation Office (SFIO), an entity that probes cases of economic offences of grave nature. “The SFIO will submit its report in three months,” corporate affairs minister Prem Chand Gupta told reporters. The government ordered the probe by the SFIO after receiving a report from the Registrar of Companies (RoC), Hyderabad, which inspected the books of accounts of Satyam Computer Services and eight other companies belonging to the kin of the former chairman of the IT major, B Ramalinga Raju. PC Gupta said, “The government has ordered the probe (by the SFIO) based on the RoC report.” “The SFIO will be looking into the entire gamut of irregularities and other related anomalies... the (irregularities) in books of accounts and other acts of commission and omission.” The investigating agency, he said, “(has) also been asked to go into all aspects (and role of) directors, promoters, Satyam company, auditors and all.” On the role of the regulator and regulation, the Minister said, “This is an issue which is also being looked into by the government. We will have detailed discussions on this.” As regards appointing more directors on the board of Satyam, Gupta said corporate affairs secretary Anurag Goel was in constant touch with the board and “a decision (to appoint more directors) will be taken without delay...as and when required. We are working on that.” The government on Sunday appointed a three-member board comprising HDFC chairman Deepak Parekh, former Nasscom president Kiran Karnik and former Securities Appellate Tribunal (SAT) presiding officer C Achuthan to salvage Satyam Computer. Talking to newspersons after the first meeting of the new board on Monday, Parekh had said that more directors were likely to be appointed by the government. The government, according to the order of the Company Law Board (CLB), which disbanded the Satyam board, can appoint at most 10 directors on the board of IT company. Source: Home - Livemint.com | 13 Jan 2009 | 9:54 am ANALYSIS - Asia may struggle to lift growth with consumer plansSINGAPORE (Reuters) - Singapore taxi driver Ho Juan Sun is seeing his income fall as the island's economy sinks deeper into recession.Source: Reuters: Money News | 13 Jan 2009 | 9:42 am Govt may cut fuel rates, ease price controlsNEW DELHI (Reuters) - The Goverment is set to cut fuel prices for the second time in six weeks, and allow firms to charge market rates in a move that may help Reliance Industries and Essar Oil revive their petrol pumps, government and company officials said.Source: Reuters: Money News | 13 Jan 2009 | 9:40 am Pricewaterhouse assisting agencies on SatyamHYDERABAD, India (Reuters) - PricewaterhouseCoopers, the auditors of Satyam Computer Services, said on Tuesday its office in south India had not been raided and it was assisting agencies investigating the outsourcing firm.Source: Reuters: Money News | 13 Jan 2009 | 9:33 am Wipro did nothing wrong: Premji to employeesNew Delhi: Hours after World Bank made public that Wipro has been debarred from doing any business with the global lender, the company’s chairman Azim Premji wrote to its over 1,00,000 employees saying that the company had not done anything unethical. Denying charges levelled by the World Bank that Wipro provided improper benefits to the bank staff, Premji said, “Let me reaffirm that Wipro was right from a legal as well as ethical standpoint. We believe what we did what was right and we did it in the right manner.” Also Read World Bank ban on Wipro, Megasoft too Meanwhile, the share price has rebounded sharply from the day’s low of Rs200 to a high of Rs243. The stock, which was down almost 12% in opening trades is now up 4.7% at Rs238. The company, in 2000, had provided Bank staff option to purchase its American Depository Shares at IPO price through a Directed Share Programme. However, the Bank in June 2007 determined that this was a conflict of interest. In an internal communication to the company’s employees, Premji said, “We have always prided ourselves for setting the highest standards of business ethics in our dealings with all our stakeholders. We have built a strong culture which upholds compliance in letter and spirit. The approach was no different in this instance also.” The World Bank deemed the IT firm ineligible to bid for direct contracts from it for the period 2007-2011. The Bank also named other companies that were barred from doing business it in a list made public on Monday. Premji further explained that all participants in the Direct Share Programme signed a conflict of interest statement that their purchase did not violate any ethics or conflict of interest policies of their company. Though the company maintained on Monday that the announcement will not have any impact on its revenues, its stock took a beating at the BSE on Monday. Source: Home - Livemint.com | 13 Jan 2009 | 9:19 am India on technological radar at Las VegasBy PTI Las Vegas: With economies sinking all around, business hopes surfaced for India in Las Vegas during the four-day Consumer Electronics Show here. Geeks did come up with innovative products with greener technology, notwithstanding the recession that visibly impacted CES, one of the world’s largest trade fairs. And, India was on the radar of many. “We are on the lookout for an Indian partner. Right now it would be for distribution and in the second stage we plan for a manufacturing tie-up,” Washington-based Gravitonus Inc CEO Marshall Ferrin said. Gravitonus, a certified business partner of Intel and Microsoft, has launched the world’s first hands-free computer mouse, which uses the tongue to move the cursor and teeth to click keys on the monitor. Another innovator FlatWire Technologies is also eyeing India. “We see India as a target for our products, especially for wires needed in audio-video data transfer,” FlatWire president Robert Sexton said. The wire maker has launched paper-thin, surface-mounted wires that help avoid chiselling the wall for new wiring at homes, particularly for home theatres. These are pasted on the walls and concealed. Among 3D televisions, gaming technologies and dancing robots, many products and booth sizes reflected the austere economic times. Queues for cabs and shuttle buses were shorter than last year. Source: Tech News - Livemint.com | 13 Jan 2009 | 9:11 am Citi board keeps faith in Vikram PanditCitigroup's board isn't losing faith in Vikram Pandit even as it is expected to report fourth quarter losses that are billions of dollars more than anticipated.Source: Daily News & Analysis: Money News | 13 Jan 2009 | 9:07 am Ramalinga Raju's followers rally behind himHe may have committed the biggest ever fraud in India's corporate history but for people in his native district and his die-hard supporters, Raju is still the hero.Source: Daily News & Analysis: Money News | 13 Jan 2009 | 9:05 am New multi-level automated parking lots to come up in DelhiThe MCD, the primary civic agency of the city, has invited bids from national or international private firms for developing integrated car parking infrastructure.Source: Daily News & Analysis: Money News | 13 Jan 2009 | 8:39 am Wipro did nothing wrong: Premji to employeesThe company's chairman Azim Premji wrote to its over 1,00,000 employees saying that the company had not done anything unethical.Source: Daily News & Analysis: Money News | 13 Jan 2009 | 8:37 am RoC submits Satyam probe report to CentreRoC Hyderabad submitted its report to minister of corporate affairs Prem Chand Gupta and this report would be the basis for handing over the case to the SFIO.Source: Daily News & Analysis: Money News | 13 Jan 2009 | 8:27 am RBI asks banks for Satyam exposureMumbai: The Reserve Bank of India (RBI) is checking local banks’ exposure to firms run by the founding family of fraud-hit Satyam Computer Services, with banking sources saying the focus was on property-related loans. A RBI spokeswoman said the Reserve Bank has sought details of banks’ exposure to Satyam and its group companies. Also Read The Satyam Fiasco { Full Coverage} The Reserve Bank of India has asked all banks to detail their fund and non fund exposure to Satyam and Maytas firms, said three sources, who spoke on condition of anonymity, adding the exercise should conclude over the next few days. Last week, Satyam founder and chairman Ramalinga Raju resigned, revealing inflated earnings and fictitious assets at the country’s fourth-largest software services exporter. The sources said the outsourcing firm had limited outstanding debt to banks, but there were concerns over exposure to Maytas companies, which have interests in property and are controlled by the Raju family. The government on Tuesday ordered investigation into the Satyam scandal by the Serious Fraud Investigation Office, an entity that probes cases of economic offences of grave nature Maytas Infra shares have tumbled 72% since 16 December, when Satyam announced plans to buy it and Maytas Properties for $1.6 billion cash before abandoning the plan under shareholder pressure. The sources said bank loans to Maytas firms were mostly secured against property and office space. On Monday, the chairman of State Bank of India, India’s top lender, said it had about Rs5 billion ($103 million) exposure to Maytas firms’, but nothing to Satyam. Second-ranked lender ICICI Bank said in a statement it was reviewing its Maytas exposure, without giving details. SBI, along with ICICI, Axis Bank, HDFC Bank and Punjab National Bank are among 12 lenders to Maytas Infra, the company’s 2007/08 annual report showed. The firm had secured and unsecured loans worth 9.36 billion rupees ($191 million) as at March 2008, the report showed, but two of the sources said the debt had risen over the last nine months as Maytas aggressively bid for and won large contracts. In August, a consortium including Maytas won a Rs120 billion contract to build India’s biggest metro rail network in Hyderabad, where Satyam is based. Source: Home - Livemint.com | 13 Jan 2009 | 8:19 am RIL asks Govt to free retail fuel prices from admin controlReliance Industries asked the govt to free retail fuel prices from administrative control and said only fiscal measures should be used to moderate prices.Source: Daily News & Analysis: Money News | 13 Jan 2009 | 7:50 am Mid-cap tech cos to post muted Oct-Dec growthMUMBAI (Reuters) - Indian mid-cap technology firms may report muted growth in the quarter to December due to sluggish demand and falling volumes amid a global slowdown.Source: Reuters: Money News | 13 Jan 2009 | 7:10 am Rupee recovers as stocks upMumbai: The rupee recovered from an early slide on Tuesday as gains in the domestic stock market raised hopes for foreign fund inflows, but broad dollar strength overseas could prevent sharp gains. At 10am, the partially convertible rupee was at Rs48.79/80 per dollar, off a low of 49, and slightly stronger than its previous close of Rs48.84/85. “The rupee opened weaker but then better-than-expected Infosys results have raised expectations that stocks will perform well, so the market is watching the share market for cues,” a senior dealer at a private bank said. “The rupee most likely should hold in a band of 48.60 to 48.90 today, but if stocks tank, then 49 and beyond looks possible,” he added. Shares opened weaker but soon turned positive after bellwether Infosys Technologies Ltd reported better than expected quarterly earnings. Infosys, India’s No.2 software services exporter, beat expectations with a one-third rise in quarterly profit, but cut its annual forecast as a global downturn squeezes outsourcing and prices. Foreign funds have so far sold a net $70 million worth of shares in 2009, after having dumped more than $13 billion in 2008. One-month offshore non-deliverable forward contracts were quoting at Rs48.98/49.08, weaker than the onshore spot rate, indicating a bearish near-term outlook. Dealers said they would be eyeing the dollar’s performance overseas for cues. The euro fell against the dollar on Tuesday, under pressure near a one-month low hit the previous day as expectations mounted that the European Central Bank will cut interest rates this week. Source: Home - Livemint.com | 13 Jan 2009 | 6:13 am Govt may slash fuel rates on Thursday; likely to free pricingBy PTI New Delhi: The government may cut petrol, diesel and domestic LPG prices on Thursday, besides freeing fuel pricing from administrative control, a petroleum ministry official said today. The Cabinet, scheduled to meet on Thursday, may reduce petrol price by Rs5 a litre, diesel by Rs3 per litre and domestic LPG by Rs25 per cylinder, giving relief to the common man and further easing inflationary pressures, he said. State-run oil companies are currently making Rs9.70 a litre profit on sale of petrol, Rs3.70 a litre on diesel, but are loosing Rs 31.70 per LPG cylinder and Rs 11.69 on every litre of kerosene. “There is also a proposal for freeing the retail fuel prices from administrative control after a mechanism to compensate for the losses on LPG and kerosene is devised,” he said. The government will mop up additional revenues by increasing excise duty on petrol and diesel by a minimum of Rs1 per litre. For losses on LPG and kerosene, the Cabinet may decide on issuing a Rs 30,000-crore additional oil bonds this fiscal. Petrol and diesel prices were cut only in December by Rs5 a litre and Rs2 per litre, respectively, as global crude prices fell to four-year lows. International oil prices have been hovering at that level for a while and have prompted the government to think of another round of price reduction. Source: Home - Livemint.com | 13 Jan 2009 | 6:01 am World Bank gives much of Satyam projects to TCSWashington: The World Bank has hired another Indian IT major Tata Consultancy Services to do much of the work previously being done by Satyam, which has now been debarred by the bank from doing business with it. “We have hired Tata Consultancy Services (TCS) to do much of the IT work that Satyam used to do,” a World Bank spokesperson said. The IT major had bagged much of the Satyam’s projects through competitive bidding early in 2008, thus indicating that the World Bank is not specifically targeting Indian IT companies, as being alleged in certain quarters. In a statement issued on Monday the World Bank had revealed three Indian IT companies that have been debarred from doing business with it. Besides Satyam, which has been debarred for eight years beginning September 2008, Wipro (beginning June 2007) and Megasoft Technologies (beginning December 2007) have also been banned for four years each. Two other Indian companies, Nestor Pharmaceuticals and Gap International (both non-IT entities) and one individual Surendra Singh, too, have been debarred by the global apex monetary institution. The action was initiated against these entities and an individual as they were found to have “violated the fraud and corruption provisions of the Procurement Guidelines or the Consultant Guidelines,” besides offering improper benefits to the Bank staff. In all, the World Bank has debarred as many as 111 companies and individuals from across the world from doing or bidding for its projects. The list of 111 entities and individuals debarred by the World Bank from doing business reveal that at least four US companies and five American nationals have been blacklisted. Of these all except one have been permanently debarred, as against the fixed term for most of the other companies. Companies and individuals from Britain seem to be topping this list with nearly three dozen of them being debarred by the bank. Source: World Business - Livemint.com | 13 Jan 2009 | 5:58 am Forrester sees 2009 tech spending fall, 2010 riseBy Reuters New York: Weakening economies will push spending on information technology products and services down 3% this year after seven years of growth, according to Forrester Research. In its latest report released today, the technology research firm said that recessions in the United States and other countries would be the main driver for slower spending and that currency fluctuations will be a secondary factor. While the research indicated a 3% growth rate for 2009 based on a weighted average of local currencies, Forrester said that in US dollar terms the global market would fall 3% to $1.66 billion, after rising 8% in 2008. In comparison, technology spending fell 6% in both 2001 and 2002, in what was seen as a downturn that was caused Forrester said that while the weaker US dollar boosted 2008 revenue, it sees a stronger dollar hurting 2009 revenue. It expects a boost for some companies from the weaker euro in early 2009, including vendors such as Alcatel-Lucent Ericsson, SAP and Nokia Siemens, a venture of Nokia and Siemens. But this “is likely to be short-lived once the dollar returns to a lower value against the euro” Forrester said. While the market will be challenging for all technology spending in 2009, Forrester sees some sectors holding up better than others. “Software purchases will do a bit better than other categories, but all vendors will face a tough time until late 2009 or early 2010,” according to the report by Forrester vice president Andrew Bartels. He said 2009 software purchases will be unchanged from 2008 at $388 billion, while the computer market will fall 4% to $434 billion for products including personal computers, servers, peripherals and storage gear. The communications equipment market, including routers, switches and teleconferencing gear, will fall 3% to $353 billion in 2009, according to Forrester. It expects the IT services and outsouring market to fall 3% to $484 billion. Forrester said that IT spending may recover to grow 9% in 2010 in terms of US dollars and 6% in terms of local currencies. Source: Tech News - Livemint.com | 13 Jan 2009 | 5:36 am Infy up 6% as Q3 figures beat expectationsMumbai: Software major Infosys Technologies on Tuesday surged as much as 6% in the early trade on the bourses after the company reported decent growth in quarterly earnings driven by a good operating margin. In the morning trade on the National Stock Exchange, the scrip opened firm at Rs1,179.95. It surged to a high of Rs1,228.60, up 5.94% from previous close. Similarly on the Bombay Stock Exchange, shares of Infosys surged 5.31% to a high of Rs1,218. Over 19.75 lakh shares changed hands on the bourses. For the quarter ended 31 December, 2008, the IT bellwether reported a 33.31% growth in net profit at Rs1,641 crore. The company had a net profit of Rs1,231 crore in the corresponding period last fiscal. Marketmen said that the scrip was driven mainly by the company’s earning figures, which was above expectations of the street amid the glum. “The corporate governance premium and the standard of meeting guidance, coupled withe Q3 figures beating street expectations has pulled some positive buyers for the scrip,” Ashika Stock Brokers Research Head Paras Bothra said. “Our operating margins during the quarter increased primarily due to depreciation of rupee which was to some extent offset by the depreciation of other major currencies against the US dollar,” Infosys Chief Financial Officer V Balakrishnan said. The income from software services, products and business process management rose 35.47% to Rs5,786 crore. “Despite slowdown in several verticals and geographies and the mounting pricing pressure, further downside in the scrip remains capped,” Bothra added. Infosys was later trading at Rs1,215.90, up 5.13% on the BSE and at Rs1221.20, up 5.30% on the NSE, at 10:25am. Source: Home - Livemint.com | 13 Jan 2009 | 5:36 am Govt to revise 3G auction schedule againNew Delhi: India will revise the timetable for the global auction of third- and fourth-generation wireless spectrum for a second time, the telecoms ministry said late on Monday. “The revised time line for auction of 3G and BWA (broadband wireless access) spectrum will be notified shortly,” the Department of Telecom said on its website (http://dot.gov.in), without elaborating. The auction was originally scheduled to start from 16 January. Last month the telecoms ministry announced a delay until 30 January, citing requests from potential bidders for more time. India’s cabinet is yet to take a final decision on a finance ministry proposal to double the base price for the auction and a further delay is possible. India plans to conduct the auction for 3G spectrum in 20 of its 22 service areas and has said firms could bid for four slots in most of these areas. Source: Tech News - Livemint.com | 13 Jan 2009 | 4:58 am Govt to revise 3G auction schedule againNew Delhi: India will revise the timetable for the global auction of third- and fourth-generation wireless spectrum for a second time, the telecoms ministry said late on Monday. “The revised time line for auction of 3G and BWA (broadband wireless access) spectrum will be notified shortly,” the Department of Telecom said on its website (http://dot.gov.in), without elaborating. The auction was originally scheduled to start from 16 January. Last month the telecoms ministry announced a delay until 30 January, citing requests from potential bidders for more time. India’s cabinet is yet to take a final decision on a finance ministry proposal to double the base price for the auction and a further delay is possible. India plans to conduct the auction for 3G spectrum in 20 of its 22 service areas and has said firms could bid for four slots in most of these areas. Source: Home - Livemint.com | 13 Jan 2009 | 4:58 am Sony may post first $1.1 bn operating loss in 14 yrsTokyo: Sony Corp may post an operating loss of about ¥100 billion ($1.1 billion) this financial year, its first such loss in 14 years, due to weak sales and a stronger yen, a source close to the matter said on Tuesday. Sony shares tumbled more than 8%, in Tokyo, following a 1.9% fall in New York, after a media report on the likely loss. Sony said last month it would cut 16,000 jobs, curb investment and pull out of some businesses to save $1.1 billion a year as the global recession hits demand for its products. The maker of Bravia flat TVs and PlayStation 3 video game consoles has forecast an operating profit of ¥200 billion yen for the year to 31 March, down from ¥475.2 billion in 2007/08. But slumping sales and falls in the prices of liquid crystal display (LCD) TVs and digital cameras in the October-December quarter, as well as costs to clear up inventories, will likely send the firm into an operating loss, the Nikkei business daily said. It added that the loss could double to around ¥200 billion depending on inventory conditions in the January-March quarter. Analysts on average see an annual profit of ¥18.5 billion, a poll of 18 brokerages by Reuters Estimates showed. Sony spokeswoman Mami Imada said the loss figure was speculation and declined to comment further on the report, which also appeared in Kyodo News and other media. The company is scheduled to announce its quarterly earnings results on 29 January. The loss would be only the second since Sony went public in 1958 and the first caused by troubles in its mainstay electronics business, the Nikkei said. A one-time charge related to the company’s US film studio business was primarily responsible for the previous operating loss, reported for the year that ended in March 1995, it said. Apart from restructuring charges and possible further losses on exchange rates, Sony is expected to write down roughly 50 billion yen of its holding in Sony Life Insurance Co, the newspaper said. Many analysts expect Sony to undertake further restructuring steps, but the company this month denied a report in the Times of London newspaper that it planned to announce closures of Japanese factories and major divisions next month. Sony shares were down 8.4% at ¥2,010 yen against a 4.6% slide in the benchmark Nikkei average. The company’s shares fell 1.9% to $23.10 on the New York Stock Exchange on Monday. Source: Home - Livemint.com | 13 Jan 2009 | 4:32 am MBA graduates face bleak job prospectsNEW DELHI (Reuters) - When the MBA students at India's top business schools began their studies their future was full of promise as companies tripped over each other to lure graduates.Source: Reuters: Money News | 13 Jan 2009 | 12:45 am What will happen to Satyam’s SEZs?Hyderabad, Jan. 12 Satyam Computer Services was one of the favoured IT companies for several States that wanted to attract investments and develop IT-SEZs (Special Economic Zones).Source: Business Line - Home Page | 13 Jan 2009 | 12:00 am World Bank reveals Wipro, Megasoft were barred, tooBangalore/New Delhi/Mumbai, Jan. 12 In a further setback to the Indian IT sector, the World Bank made public it has barred Wipro Technologies and Megasoft Ltd since 2007 from receiving direct contracts under its corporate procurement program.Source: Business Line - Home Page | 13 Jan 2009 | 12:00 am Slumdog who touched heartsThe spectacular success of the talented Hollywood director Danny Boyle’s film Slumdog Millionaire at the Golden Globe awards, where both the film director and its music director, A. R. Rahman, walked away with the coveted Globes,Source: Business Line - Home Page | 13 Jan 2009 | 12:00 am Wipro (Rs 227.35): SellWe recommend a sell in Wipro stock from a short-term trading horizon. It is apparent from the charts of Wipro that it has been on a long-term downtrend from its February 2007 peak of Rs 690. Since then the stock has been forming lower peaks andSource: Business Line - Home Page | 13 Jan 2009 | 12:00 am Day Trading GuideThe near-term outlook is bearish for stocks such as DLF, Reliance Capital and Reliance Communications. We recommend sell in these stock for the session. Initiate fresh short-position if ICICISource: Business Line - Home Page | 13 Jan 2009 | 12:00 am ICAI plans to tighten rules on auditors’ tenureMumbai, Jan. 12 Shaken by the alleged “inaction” of Satyam Computer’s auditor Price Waterhouse, the Institute of Chartered Accountants of India is planning to push for a cap on the tenure of a company’sSource: Business Line - Home Page | 13 Jan 2009 | 12:00 am Satyam’s ex-CFO: Auditors did not point out any deficiencies* I feel the Fixed Deposits (FDs), as claimed by the company are unreal and fictitious.Source: Business Line - Home Page | 13 Jan 2009 | 12:00 am Auto sales skid further in DecemberBarring passenger cars, other automobile segments recorded a sharper fall in December 2008, both on a year-on-year basis and over the previous month’s figures.Source: Business Line - Home Page | 13 Jan 2009 | 12:00 am Satyam to scout for new CEO, CFO from within or outsideHyderabad, Jan. 12 A new CEO & CFO, either from within or outside, independent audit firm in next 48 hours, a merger option and delay in Q3 results beyond January 30 deadline were the broad takeaways from the first statements of theSource: Business Line - Home Page | 13 Jan 2009 | 12:00 am Bajaj redrafts bike strategy, to launch XCD 135 on Jan 21Mumbai, Jan. 12 Bajaj Auto is putting in place an aggressive strategy for motorcycles which will kick off with the launch of the XCD 135 on January 21. The bike will cost approximately Rs 45,000Source: Business Line - Home Page | 13 Jan 2009 | 12:00 am Trust me, I have $1bn stashed in the bank It’s tempting to make that mental leap amid Satyam Computer Services Ltd’s book-cooking scandal. B. Ramalinga Raju is no longer the entrepreneur who built India’s fourth biggest software maker. He’s now allegedly the nation’s answer to Jeffrey Skilling, the former Enron Corp. chief executive officer serving a 24-year prison term. Satyam’s crisis may be more jaw-dropping than Enron’s in 2001. It’s not just the magnitude of the scam—53,000 employees may lose their jobs compared with 5,000 at Enron—but the simplicity. Enron’s fraud was conducted through a labyrinth of off balance sheet deals and other accounting gimmicks. Accounting firm Arthur Andersen approved the company’s financial creativity and collapsed in 2002. Enron didn’t make it easy for the auditor. Satyam’s con was impossibly transparent: The Hyderabad-based company said it had $1 billion (Rs4,860 crore) in the bank that it didn’t. Raju said he inflated earnings and assets. Assuming he’s telling the truth, you would think auditor Price Waterhouse (an arm of PricewaterhouseCoopers Llp.) or board members could have cleared up a mess years in the making with a phone call, a fax machine or even a postage stamp. Management says it has a mountain of cash in the bank and you just flat-out believe it? And why did the World Bank appear to know more about Satyam’s business practices than everyone else? Last month, the Washington-based lender declared Satyam ineligible for contracts for eight years, alleging improper benefits were given to the bank’s employees. If Raju’s version of the story is the right one, it raises a stark question: Could a moderately sized start-up company claim to have $1 billion or $2 billion in cash and then go public without observers delving deeper? Then again, Raju’s claims have yet to be proven. Investigations are afoot and no one is talking publicly—no comments all around from auditors and Raju, who was arrested along with brother Rama Raju on 9 January. “There can be two possibilities,” says Ved Jain, president of the Institute of Chartered Accountants of India. “One, the auditor has been negligent. Second, he was aware and intentionally overlooked it.” The bigger question, of course, is what else is hiding below the surface in Asia’s third biggest economy. Is this “Enron moment” merely the tip of the iceberg? Or will it have a chastening effect that leaves India better off five years from now? It’s impossible to know. The days of giving corporate executives the benefit of the doubt are long gone. The shenanigans at Enron, WorldCom Inc. and Parmalat SpA have even lost their shock value following the failure of Lehman Brothers Holdings Inc. and financier Bernard Madoff’s alleged $50 billion fraud. Clearly, this isn’t an India-specific problem. It’s important to remember that India’s economy and 1.2 billion people have vast potential. This is as much a setback for global corporate governance as it is for Indian officials. Yet, this is the second big blow to Indian companies in recent months. It’s unclear how the Mumbai terror attacks in November that left 183 people dead will affect business. The Satyam affair has only compounded concerns that foreign investors will view India less favourably. Arun Kejriwal, founder of Kejriwal Research and Investment Services in Mumbai, spoke for many when he said: “This is a black day for India.” The reason is, this scandal involves India’s premier global industry. That amplifies the economic ripple effect. It’s anyone’s guess whether the government will heed calls for a public bailout. Credit Suisse Group analysts Nilesh Jasani and Arya Sen advised investors in a report last week to own shares of Indian companies with “good corporate governance” as Satyam’s troubles may prompt disclosure of more one-time losses. That’s all well and good, yet that’s what Satyam investors thought they had done. The last decade has been disorienting for investors, especially the last 12 months. First it was regulators asleep on the job, then credit rating companies and then accountants. Raju, 54, was named Ernst and Young Entrepreneur of the Year in 2007. It seems he was far more entrepreneurial than regulators knew. Raju presumably also fooled Satyam’s board of directors. In a letter to the board last week, Raju could have been speaking for shareholders when he said that hiding the truth “was like riding a tiger, not knowing how to get off without being eaten”. Things just got harder for India at the worst time imaginable. Prime Minister Manmohan Singh expects the economy to grow about 7% in the 12 months ending 31 March. Even if that rate is achieved, global trends have turned decidedly against India’s prospects. Two months ago, officials in New Delhi were still saying India was less vulnerable to the global credit crisis than Asian peers. Two stimulus packages since early December, four interest rate cuts since October and Satyam’s woes all belie that claim. The risk is that recent events will reduce the foreign investment needed to maintain rapid growth and spread its benefits. India’s 2009 just got a bit more precarious. Respond to this column at feedback@livemint.com Source: World Business - Livemint.com | 12 Jan 2009 | 7:47 pm Demand for Slumdog prints soars after Golden Globe triumphDemand for prints of Slumdog Millionaire, releasing in india January 23, has increased 50 per cent after the Hollywood film, a rags-to-riches tale of an Indian teenager growing up in Mumbais slums, bagged four Golden Globe awards yesterday.Source: Business Standard | Front Page Headlines | 12 Jan 2009 | 7:04 pm Satyam board grapples with cash crunchThe three-member board of Satyam Computer Services outlined a formidable agenda that includes seeking a bailout, changes in the top management and asking clients to accelerate payments to overcome a cash crunch.Source: Business Standard | Front Page Headlines | 12 Jan 2009 | 6:58 pm
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