25 Jun 2009, PTI
MUMBAI: New Mahindra Satyam CEO C P Gurnani has said that he would strive for making the company known for its transparency and governance standards.
In a communication to associates in the company, Gurnani, who was heading the global operations of Tech Mahindra before his new assignment said, "We have redesigned the organisation structure to make it more customer-centric and agile and decision making in the company is being accelerated."
He further said that the access to customers and geographic penetration is enhanced.
"My priority is to get the company re-energised and leverage these strengths (delivery excellence, domain experiences) effectively, to gain traction for accelerated growth," Gurnani said in a letter written to -----
Tech Mahindra named Gurnani to succeed A S Murthy on Tuesday.
"I am interested in future when we are recognised for our governance standards, transparency and values. I am interested in future when our associates are fearless and can match up to business challenge that comes their way," he said.
"... Unfortunate events following January have taken thier toll on the company and have seriously dented out image, business and morale. Ever since April, when Tech Mahindra emerged as an investor, I have had the opportunity to travel and meet some of our customers... one thing common was whatever be the past, they are interested in the future.
Friday, June 26, 2009
India's Satyam Computer announces new brand name
MUMBAI (AFP) — Indian outsourcing firm Satyam Computer announced Monday it was re-branding itself as it tries to recover from the country's worst-ever corporate scandal.
In a statement to the Mumbai stock exchange, the firm said it will now trade under the name "Mahindra Satyam", reflecting the purchase of the company two months ago by mid-sized outsourcer Tech Mahindra.
The company will also adopt a new logo from the Mahindra group.
In April, Tech Mahindra paid nearly 600 million dollars for a majority share of Satyam, which has been struggling since its founder confessed in January to falsifying accounts in India's biggest accounting fraud.
"The re-branding symbolises an amalgamation of the Mahindra group's values with Satyam's fabled expertise," said Anand Mahindra, vice chairman of the Mahindra group.
A statement said the firm would maintain Satyam in its name because it signifies "commitment, purpose and proficiency."
Satyam, ranked as India's fourth-largest outsourcer by revenues when the scandal broke, acts as a back office for some of the world's biggest companies including Nestle, General Electric and General Motors.
Earlier this month, the Hyderabad-based firm reported modest but better-than-expected quarterly profits, raising hopes it could recover.
In a statement to the Mumbai stock exchange, the firm said it will now trade under the name "Mahindra Satyam", reflecting the purchase of the company two months ago by mid-sized outsourcer Tech Mahindra.
The company will also adopt a new logo from the Mahindra group.
In April, Tech Mahindra paid nearly 600 million dollars for a majority share of Satyam, which has been struggling since its founder confessed in January to falsifying accounts in India's biggest accounting fraud.
"The re-branding symbolises an amalgamation of the Mahindra group's values with Satyam's fabled expertise," said Anand Mahindra, vice chairman of the Mahindra group.
A statement said the firm would maintain Satyam in its name because it signifies "commitment, purpose and proficiency."
Satyam, ranked as India's fourth-largest outsourcer by revenues when the scandal broke, acts as a back office for some of the world's biggest companies including Nestle, General Electric and General Motors.
Earlier this month, the Hyderabad-based firm reported modest but better-than-expected quarterly profits, raising hopes it could recover.
Satyam: Second round of top-level appointments on Thursday
24 Jun 2009, PTI
New Delhi: Mahindra Satyam will see another round of reshuffling of top executives tomorrow that will see outgoing CEO AS Murthy getting a new designation and US-based head of commercial division Ram Mynampati being replaced.
Mynampati, who was the President of the Commercial and Healthcare Divisions, has been replaced by Keshav Panda, sources close to the development said.
Panda, who was the head of the Europe business would be replaced by someone from within the Tech Mahindra Group.
Mynampati, also a former board member, had taken over as the interim Chief Executive in January after founder B Ramalinga Raju admitted to have cooked the books of the company for years.
Mynampati was subsequently removed after the government stepped in and disbanded the board and appointed new directors.
Besides this, Tech Mahindra is likely to be make further announcements on top level rejig tomorrow in Hyderabad, the source added.
Yesterday, Tech Mahindra appointed C P Gurnani CEO of Mahindra Satyam and S Durgashankar as the new Chief Financial Officer with immediate effect.
Gurnani succeeded A S Murthy, who was appointed as CEO by the government board after the multi-crore rupee scam broke out in the then Satyam Computer Services. Gurnani has been heading the global operations of Tech Mahindra.
New Delhi: Mahindra Satyam will see another round of reshuffling of top executives tomorrow that will see outgoing CEO AS Murthy getting a new designation and US-based head of commercial division Ram Mynampati being replaced.
Mynampati, who was the President of the Commercial and Healthcare Divisions, has been replaced by Keshav Panda, sources close to the development said.
Panda, who was the head of the Europe business would be replaced by someone from within the Tech Mahindra Group.
Mynampati, also a former board member, had taken over as the interim Chief Executive in January after founder B Ramalinga Raju admitted to have cooked the books of the company for years.
Mynampati was subsequently removed after the government stepped in and disbanded the board and appointed new directors.
Besides this, Tech Mahindra is likely to be make further announcements on top level rejig tomorrow in Hyderabad, the source added.
Yesterday, Tech Mahindra appointed C P Gurnani CEO of Mahindra Satyam and S Durgashankar as the new Chief Financial Officer with immediate effect.
Gurnani succeeded A S Murthy, who was appointed as CEO by the government board after the multi-crore rupee scam broke out in the then Satyam Computer Services. Gurnani has been heading the global operations of Tech Mahindra.
ICAI to ban guilty Satyam auditors?
June 24, 2009
Institute of Chartered Accountants of India (ICAI) came under immense public scrutiny after the auditor's role being questioned in the whole of Satyam fiasco.
Now, almost after six months after the Satyam story came to light, ICAI is ready with its investigations on the auditor’s role and is all set to give its verdict soon.
The needle of suspicion in the entire Satyam scam lay on the two auditors of Price Waterhouse, S Gopalakrishnan and S Talluri, who are now set to be banned for life from practicing.
ICAI, whose panel has found them guilty, will be taking the harsh decision.
The disciplinary committee, whose report will be submitted soon, is set to declare that both the individuals are guilty of gross lapses in the auditing of Satyam's day-to-day transactions and it wants them banned from practice for life.
Meanwhile, Price Waterhouse refused to comment on the decision. Initially, the firm had backed the auditors, but then later on suspended them. ICAI also declined to comment on the findings, but it is now clear that the lapses in auditing were serious.
What still remains unclear is—why is it only the individual and not the firm, which is held guilty?
Institute of Chartered Accountants of India (ICAI) came under immense public scrutiny after the auditor's role being questioned in the whole of Satyam fiasco.
Now, almost after six months after the Satyam story came to light, ICAI is ready with its investigations on the auditor’s role and is all set to give its verdict soon.
The needle of suspicion in the entire Satyam scam lay on the two auditors of Price Waterhouse, S Gopalakrishnan and S Talluri, who are now set to be banned for life from practicing.
ICAI, whose panel has found them guilty, will be taking the harsh decision.
The disciplinary committee, whose report will be submitted soon, is set to declare that both the individuals are guilty of gross lapses in the auditing of Satyam's day-to-day transactions and it wants them banned from practice for life.
Meanwhile, Price Waterhouse refused to comment on the decision. Initially, the firm had backed the auditors, but then later on suspended them. ICAI also declined to comment on the findings, but it is now clear that the lapses in auditing were serious.
What still remains unclear is—why is it only the individual and not the firm, which is held guilty?
Satyam case: US accounts under lens
25 Jun, 2009
HYDERABAD: The CBI now investigating diversion of Satyam funds abroad have identified three "suspicious" foreign bank accounts in the US which are held in the name of three different individuals.
About Rs 60 crore belonging to Satyam were channelised into the accounts that stand in the name of these three non Indian persons.
When CBI sleuths questioned Ramalinga Raju and Rama Raju on these accounts they claimed that three foreign nationals were officially connected to Satyam and the money was deposited for business reasons.
But the CBI did not find these transactions reflected in Satyam's books and with the help of Interpol is now seeking to crack the details about these individuals. CBI sources also told that the agency has discovered several transactions made through Indian banks but has not been able to track details of end users of these funds.
What is proving difficult is that the movements took place on foreign soil where CBI has no presence. "We have to depend on Interpol and other international agencies. Its a long drawn out process but we have set it into motion," CBI sources said.
CBI also suspects that what has been discovered is only the tip of an iceberg and there might be many more such foreign accounts yet to be traced. Meanwhile, the local CBI court posted the matter pertaining to conducting of lie detector tests on Raju brothers to June 30 following request of counsel for Rajus who sought some more time to present their arguments in this case.
HYDERABAD: The CBI now investigating diversion of Satyam funds abroad have identified three "suspicious" foreign bank accounts in the US which are held in the name of three different individuals.
About Rs 60 crore belonging to Satyam were channelised into the accounts that stand in the name of these three non Indian persons.
When CBI sleuths questioned Ramalinga Raju and Rama Raju on these accounts they claimed that three foreign nationals were officially connected to Satyam and the money was deposited for business reasons.
But the CBI did not find these transactions reflected in Satyam's books and with the help of Interpol is now seeking to crack the details about these individuals. CBI sources also told that the agency has discovered several transactions made through Indian banks but has not been able to track details of end users of these funds.
What is proving difficult is that the movements took place on foreign soil where CBI has no presence. "We have to depend on Interpol and other international agencies. Its a long drawn out process but we have set it into motion," CBI sources said.
CBI also suspects that what has been discovered is only the tip of an iceberg and there might be many more such foreign accounts yet to be traced. Meanwhile, the local CBI court posted the matter pertaining to conducting of lie detector tests on Raju brothers to June 30 following request of counsel for Rajus who sought some more time to present their arguments in this case.
Council to decide on draft report
22 Jun 2009
MANGALORE: The central council of The Institute of Chartered Accountants of India (ICAI) will meet within the next fortnight to take a final call on the draft report submitted by the high powered committee set up by it to go into la affaire Satyam. The council, which met in Mumbai two-days ago has had preliminary discussions on the draft report submitted by the committee and the ICAI will go public with its findings after the meeting.
ICAI president Uttam Prakash Agarwal told reporters here on Monday that the high powered committee headed by him had quizzed the Satyam higher ups indicted for their alleged role in the IT firm violating laid down procedures of corporate governance. The report has taken note of the various procedural lapses that have occurred in Satyam under Ramalinga Raju and will suggest steps to avoid its recurrence in Indian corporate set up.
Agarwal clarified that ICAI does not have powers to take disciplinary action against Price Waterhouse Coopers (PWC), auditors of Satyam, who allegedly fudged the balance sheet of the IT firm. But the disciplinary committee of ICAI will certainly take necessary action against the partners of PWC for any of their professional misconduct if proved as per findings of the committee and could lead to cancellation of their licenses, he said.
MANGALORE: The central council of The Institute of Chartered Accountants of India (ICAI) will meet within the next fortnight to take a final call on the draft report submitted by the high powered committee set up by it to go into la affaire Satyam. The council, which met in Mumbai two-days ago has had preliminary discussions on the draft report submitted by the committee and the ICAI will go public with its findings after the meeting.
ICAI president Uttam Prakash Agarwal told reporters here on Monday that the high powered committee headed by him had quizzed the Satyam higher ups indicted for their alleged role in the IT firm violating laid down procedures of corporate governance. The report has taken note of the various procedural lapses that have occurred in Satyam under Ramalinga Raju and will suggest steps to avoid its recurrence in Indian corporate set up.
Agarwal clarified that ICAI does not have powers to take disciplinary action against Price Waterhouse Coopers (PWC), auditors of Satyam, who allegedly fudged the balance sheet of the IT firm. But the disciplinary committee of ICAI will certainly take necessary action against the partners of PWC for any of their professional misconduct if proved as per findings of the committee and could lead to cancellation of their licenses, he said.
Saturday, June 13, 2009
HC declines stay in Satyam case
11 Jun 2009,
HYDERABAD: Justice G Bhavani Prasad of the A P High Court on Wednesday declined to stay the process of questioning Raju brothers and their CFO Vadlamani Srinivas by the enforcement directorate (ED).
The judge reserved his order to June 12. The three accused in Satyam scam approached the court questioning the lower court's order which permitted the ED to question them and record their statements.
Appearing for Raju brothers, senior counsel S R Ashok told the court that the ED had filed its application for questioning the accused under 167 of CrPC in the lower court despite the fact that a magistrate court has no role to play in matters related to a special enactment like money laundering Act. More over, the counsel said, in the absence of any prima facie evidence, the ED cannot proceed further under this Act.
Defending the ED, assistant solicitor general A Rajasekhara Reddy argued that what the central agency is seeking to do is only recording the statements of the accused. If a prima facie case is not made out of these statements, we will drop the matter there, he said. But questioning the accused is a must, he said. Just because the accused are in jail, we sought the permission of the court to question them, he said.
Had they been available outside, we would have straght away summoned them and questioned them, he said. Because, the central counsel said, the ED has got judicial powers to do so and the accused are bound to appear before us, he said. Hence the provisions of CrPC need not come in the way of ED which is proceeding the money laundering Act, he said.
HYDERABAD: Justice G Bhavani Prasad of the A P High Court on Wednesday declined to stay the process of questioning Raju brothers and their CFO Vadlamani Srinivas by the enforcement directorate (ED).
The judge reserved his order to June 12. The three accused in Satyam scam approached the court questioning the lower court's order which permitted the ED to question them and record their statements.
Appearing for Raju brothers, senior counsel S R Ashok told the court that the ED had filed its application for questioning the accused under 167 of CrPC in the lower court despite the fact that a magistrate court has no role to play in matters related to a special enactment like money laundering Act. More over, the counsel said, in the absence of any prima facie evidence, the ED cannot proceed further under this Act.
Defending the ED, assistant solicitor general A Rajasekhara Reddy argued that what the central agency is seeking to do is only recording the statements of the accused. If a prima facie case is not made out of these statements, we will drop the matter there, he said. But questioning the accused is a must, he said. Just because the accused are in jail, we sought the permission of the court to question them, he said.
Had they been available outside, we would have straght away summoned them and questioned them, he said. Because, the central counsel said, the ED has got judicial powers to do so and the accused are bound to appear before us, he said. Hence the provisions of CrPC need not come in the way of ED which is proceeding the money laundering Act, he said.
Rajus challenge ED order
10 Jun 2009
HYDERABAD: B Ramalinga Raju, his brother B Rama Raju and Satyam Computers former chief finance officer Vadlamani Srinivas on Tuesday approached the AP High Court challenging the orders of a lower court which permitted the Enforcement Directorate to question them in the Satyam scandal.
It can be recalled the fourteenth additional chief metropolitan magistrate court, Nampally, permitted the ED to question Rajus, V Srinivas and former auditors of Price Waterhouse.
The ED booked a case against them under the provisions of Money Laundering Act. The petitioners contended that the order of the lower court was illegal as the alleged offence against them does not fall under the purview of this Act. The High Court will hear the petition on Wednesday.
HYDERABAD: B Ramalinga Raju, his brother B Rama Raju and Satyam Computers former chief finance officer Vadlamani Srinivas on Tuesday approached the AP High Court challenging the orders of a lower court which permitted the Enforcement Directorate to question them in the Satyam scandal.
It can be recalled the fourteenth additional chief metropolitan magistrate court, Nampally, permitted the ED to question Rajus, V Srinivas and former auditors of Price Waterhouse.
The ED booked a case against them under the provisions of Money Laundering Act. The petitioners contended that the order of the lower court was illegal as the alleged offence against them does not fall under the purview of this Act. The High Court will hear the petition on Wednesday.
Thursday, June 11, 2009
Tech Mahindra says will not hike Satyam offer price
11 Jun 2009, 2028 PTI
HYDERABAD: In the face of surge in stock prices of Satyam to about Rs 81 a share on the eve of the open offer for beleaguered company, its new owner Tech Mahindra on Thursday said it will not hike the offer price.
"Our agreement with the market regulator SEBI is for Rs 58 a share (the price at which it acquired 31 per cent stake in the open bidding)," Vineet Nayyar, Chief Executive of Tech Mahindra, told media after the Satyam board meeting.
Asked about options in case the open offer was not fully subscribed, Nayyar said "in case we do not get adequate response, we will go for preferential issue to take our holdings in the company to 42 per cent."
Satyam shares prices have been rising for the past three straight sessions after the company reported better than expected financial results on Tuesday. It posted a stand-alone profit of Rs 181 crore for the October-December 2008 quarter. However, the government-appointed board has decided against endorsing the open offer saying it would be construed as a "negative statement" about fundamentals.
Chairman of Satyam Board Kiran Karnik in a regulatory filling with the US market regulator SEC said, "that supporting the public open offer would tantamount to recommending the share holders to sell their holdings in Satyam."
Karnik further said some of the government-appointed members of the board may be disengaged from the firm within the next week. "Some of the (nominee) board members may leave Satyam within next week," Karnik said.
Following disclosure of accounting fraud by the founder Ramanlinga Raju on January 7, the goevrnemnt supeseded the board of the IT firm and appointed its own nominees to run the firm.
The goevrnment nominees include Kiran Karnik, CII chief mentor Tarun Das, HDFC Chairman Deepak Parerk and former ICAI President T M Manoharan.
HYDERABAD: In the face of surge in stock prices of Satyam to about Rs 81 a share on the eve of the open offer for beleaguered company, its new owner Tech Mahindra on Thursday said it will not hike the offer price.
"Our agreement with the market regulator SEBI is for Rs 58 a share (the price at which it acquired 31 per cent stake in the open bidding)," Vineet Nayyar, Chief Executive of Tech Mahindra, told media after the Satyam board meeting.
Asked about options in case the open offer was not fully subscribed, Nayyar said "in case we do not get adequate response, we will go for preferential issue to take our holdings in the company to 42 per cent."
Satyam shares prices have been rising for the past three straight sessions after the company reported better than expected financial results on Tuesday. It posted a stand-alone profit of Rs 181 crore for the October-December 2008 quarter. However, the government-appointed board has decided against endorsing the open offer saying it would be construed as a "negative statement" about fundamentals.
Chairman of Satyam Board Kiran Karnik in a regulatory filling with the US market regulator SEC said, "that supporting the public open offer would tantamount to recommending the share holders to sell their holdings in Satyam."
Karnik further said some of the government-appointed members of the board may be disengaged from the firm within the next week. "Some of the (nominee) board members may leave Satyam within next week," Karnik said.
Following disclosure of accounting fraud by the founder Ramanlinga Raju on January 7, the goevrnemnt supeseded the board of the IT firm and appointed its own nominees to run the firm.
The goevrnment nominees include Kiran Karnik, CII chief mentor Tarun Das, HDFC Chairman Deepak Parerk and former ICAI President T M Manoharan.
Satyam Buyer in a Fix, as Share Price Rises
Jun 11, 2009
Tech Mahindra, the Indian outsourcer that won the bid for majority ownership of embattled outsourcer Satyam Computer Services, may be in a fix following a sharp increase in Satyam's share price.Under the bid agreement in April, Tech Mahindra is offering to buy 20 percent of Satyam equity from shareholders at a price of 58 rupees (US$1.2). This is the price at which it purchased a 31 percent share in Satyam by a preferential issue of new equity.Satyam was plunged into a crisis after its co-founder B. Ramalinga Raju stated in January that the company had inflated revenue and profits for several years.The offer by Tech Mahindra to Satyam shareholders opens Friday and closes July 1. Satyam's shares have however soared on Indian stock markets after the company released on Tuesday unaudited results for the fourth quarter of last year, and for January and February this year. Satyam cautioned that the results were not reliable as they were based on data from their internal MIS (management information system).The figures showed that Satyam's revenue and profits were down in the fourth quarter from a year earlier. But the company posted a larger profit of 520 million rupees in February than in January when it had profits of 40 million rupees. Analysts interpreted the increase in profits as an indication that Satyam is now in a recovery phase.Investors on Indian stock exchanges pushed up the price of Satyam's shares for three consecutive days. The share traded on the Bombay Stock Exchange at 80.85 rupees on Thursday, far higher than the 58 rupees that Tech Mahindra is offering in its open offer to buy shares from Satyam's shareholders.A Tech Mahindra spokesman on Thursday declined to comment on whether the company was planning to hike the price for the public offer.If shareholders refuse to offer their shares for sale at prices lower than the current market price, the other option for Tech Mahindra would be to get to a 51 percent share in Satyam through another issue of preferential equity, say analysts. The bid agreement allows Tech Mahindra to take this route. Satyam on Thursday announced a program to cut staff costs by allowing some of them to take time off on reduced pay. Between 7,000 to 10,000 staff will be affected by the program, the company said. These are staff who have not been deployed on projects for more than three months. A number of Indian outsourcing companies have tried to cut costs during the economic downturn by reducing their "bench," which consists of staff who are not working on projects.
Tech Mahindra, the Indian outsourcer that won the bid for majority ownership of embattled outsourcer Satyam Computer Services, may be in a fix following a sharp increase in Satyam's share price.Under the bid agreement in April, Tech Mahindra is offering to buy 20 percent of Satyam equity from shareholders at a price of 58 rupees (US$1.2). This is the price at which it purchased a 31 percent share in Satyam by a preferential issue of new equity.Satyam was plunged into a crisis after its co-founder B. Ramalinga Raju stated in January that the company had inflated revenue and profits for several years.The offer by Tech Mahindra to Satyam shareholders opens Friday and closes July 1. Satyam's shares have however soared on Indian stock markets after the company released on Tuesday unaudited results for the fourth quarter of last year, and for January and February this year. Satyam cautioned that the results were not reliable as they were based on data from their internal MIS (management information system).The figures showed that Satyam's revenue and profits were down in the fourth quarter from a year earlier. But the company posted a larger profit of 520 million rupees in February than in January when it had profits of 40 million rupees. Analysts interpreted the increase in profits as an indication that Satyam is now in a recovery phase.Investors on Indian stock exchanges pushed up the price of Satyam's shares for three consecutive days. The share traded on the Bombay Stock Exchange at 80.85 rupees on Thursday, far higher than the 58 rupees that Tech Mahindra is offering in its open offer to buy shares from Satyam's shareholders.A Tech Mahindra spokesman on Thursday declined to comment on whether the company was planning to hike the price for the public offer.If shareholders refuse to offer their shares for sale at prices lower than the current market price, the other option for Tech Mahindra would be to get to a 51 percent share in Satyam through another issue of preferential equity, say analysts. The bid agreement allows Tech Mahindra to take this route. Satyam on Thursday announced a program to cut staff costs by allowing some of them to take time off on reduced pay. Between 7,000 to 10,000 staff will be affected by the program, the company said. These are staff who have not been deployed on projects for more than three months. A number of Indian outsourcing companies have tried to cut costs during the economic downturn by reducing their "bench," which consists of staff who are not working on projects.
Tuesday, June 9, 2009
Satyam Surges by Daily Limit After Reporting Profit
June 9- Satyam Computer Services Ltd. jumped by the daily limit in Mumbai trading after the software maker reported remaining profitable and retaining clients following the disclosure of India’s biggest corporate fraud.
Satyam rose 10 percent after posting a 520 million rupee ($10.9 million) unaudited profit and a 17.5 percent operating margin for February. The Hyderabad-based company said it won at least $380 million of orders from 215 clients since disclosing a $1 billion fraud by former chairman Ramalinga Raju in January.
“The numbers are better than what the market was fearing,” Apurva Shah, head of research at Prabhudas Lilladher Pvt. in Mumbai, said by telephone. “The big positive is the margins,” which some investors had expected to drop to as low as 4 percent, he said.
Satyam climbed to 66.8 rupees, its biggest gain since June 2. The stock has declined 61 percent this year compared with the benchmark Sensitive Index’s 57 percent advance. Tech Mahindra Ltd., which in April won a bid to gain control of Satyam, surged 26 percent, the most since August 2006.
Winning the contracts in the face of “negative publicity” was a positive, Shah said.
The fraud has compounded Satyam’s woes as it fights to retain clients and sustain sales amid a global recession that has forced companies to lower technology spending.
Satyam may cut as many as 8,000 jobs because of a lack of available work, two company officials who did not wish to be identified said on June 5. The parent company had 41,622 employees on March 28, and its subsidiaries had a combined workforce of 4,088 as on Jan. 17, according to a statement.
Estimates, Assumptions
Satyam said the earnings had been prepared with data from the company’s internal management information systems, which may not be adequate, and books of accounts making certain estimates and assumptions. The figures, which had been shared with bidders for the controlling stake in the company, had not been reviewed or verified by an independent auditor, according to the statement.
Gains or losses pertaining to the inflated assets that Raju had disclosed have not been eliminated from the earnings, pending restatement of accounts, Satyam said.
“More information is always welcome,” Dipesh Mehta, a Mumbai-based analyst at Khandwala Securities Ltd., said by phone. Still, “this information is less reliable as it has been derived from the internally available management information system,” he said.
Satyam’s financial statements are being reviewed by KPMG and Deloitte Touche Tohmatsu after its former auditor, the Indian affiliate of PricewaterhouseCoopers LLP, said in January its audit reports on the software maker were no longer reliable
Satyam rose 10 percent after posting a 520 million rupee ($10.9 million) unaudited profit and a 17.5 percent operating margin for February. The Hyderabad-based company said it won at least $380 million of orders from 215 clients since disclosing a $1 billion fraud by former chairman Ramalinga Raju in January.
“The numbers are better than what the market was fearing,” Apurva Shah, head of research at Prabhudas Lilladher Pvt. in Mumbai, said by telephone. “The big positive is the margins,” which some investors had expected to drop to as low as 4 percent, he said.
Satyam climbed to 66.8 rupees, its biggest gain since June 2. The stock has declined 61 percent this year compared with the benchmark Sensitive Index’s 57 percent advance. Tech Mahindra Ltd., which in April won a bid to gain control of Satyam, surged 26 percent, the most since August 2006.
Winning the contracts in the face of “negative publicity” was a positive, Shah said.
The fraud has compounded Satyam’s woes as it fights to retain clients and sustain sales amid a global recession that has forced companies to lower technology spending.
Satyam may cut as many as 8,000 jobs because of a lack of available work, two company officials who did not wish to be identified said on June 5. The parent company had 41,622 employees on March 28, and its subsidiaries had a combined workforce of 4,088 as on Jan. 17, according to a statement.
Estimates, Assumptions
Satyam said the earnings had been prepared with data from the company’s internal management information systems, which may not be adequate, and books of accounts making certain estimates and assumptions. The figures, which had been shared with bidders for the controlling stake in the company, had not been reviewed or verified by an independent auditor, according to the statement.
Gains or losses pertaining to the inflated assets that Raju had disclosed have not been eliminated from the earnings, pending restatement of accounts, Satyam said.
“More information is always welcome,” Dipesh Mehta, a Mumbai-based analyst at Khandwala Securities Ltd., said by phone. Still, “this information is less reliable as it has been derived from the internally available management information system,” he said.
Satyam’s financial statements are being reviewed by KPMG and Deloitte Touche Tohmatsu after its former auditor, the Indian affiliate of PricewaterhouseCoopers LLP, said in January its audit reports on the software maker were no longer reliable
Satyam buy: Tech Mahindra raises Rs 550 cr from Tata Capital, IDFC
9 Jun 2009, PTI
NEW YORK: To fund its takeover of scam-hit Satyam Computer, Tech Mahindra has raised Rs 550 crore from Tata Capital and IDFC by issuing debentures convertible into shares of its acquisition vehicle Venturbay Consultants.
Besides, Tech Mahindra has also borrowed Rs 1,450 crore from various banks, mutual funds, institutions and NBFCs at an interest rate of 10 per cent, part of which has been used for funding the acquisition of Satyam.
Disclosing Tech Mahindra's source of funds for the deal, a regulatory filing by the beleaguered IT firm here said the funding was from "internal resources, optionally convertible domestic debt, equity by Tech Mahindra in Venturbay and debt extended by Tech Mahindra to Venturbay."
In the first phase of acquisition, Tech Mahindra had paid about Rs 1,756 crore for 31 per cent equity through preferential allotment of shares in Satyam which is also listed at NYSE besides Indian bourses.
The filing with the US market regulator SEC said here that "Tech Mahindra has infused funds in Venturebay by using cash on hand" in connection with the initial 31 per cent stake purchase and the subsequent Rs 1,129 crore open offer for further 20 per cent equity.
NEW YORK: To fund its takeover of scam-hit Satyam Computer, Tech Mahindra has raised Rs 550 crore from Tata Capital and IDFC by issuing debentures convertible into shares of its acquisition vehicle Venturbay Consultants.
Besides, Tech Mahindra has also borrowed Rs 1,450 crore from various banks, mutual funds, institutions and NBFCs at an interest rate of 10 per cent, part of which has been used for funding the acquisition of Satyam.
Disclosing Tech Mahindra's source of funds for the deal, a regulatory filing by the beleaguered IT firm here said the funding was from "internal resources, optionally convertible domestic debt, equity by Tech Mahindra in Venturbay and debt extended by Tech Mahindra to Venturbay."
In the first phase of acquisition, Tech Mahindra had paid about Rs 1,756 crore for 31 per cent equity through preferential allotment of shares in Satyam which is also listed at NYSE besides Indian bourses.
The filing with the US market regulator SEC said here that "Tech Mahindra has infused funds in Venturebay by using cash on hand" in connection with the initial 31 per cent stake purchase and the subsequent Rs 1,129 crore open offer for further 20 per cent equity.
Satyam spends over Rs 1,000 cr on salaries in Jan-March 2009
9 Jun 2009, PTI
MUMBAI: Scam-hit Satyam Computer on Tuesday said that it has spent over Rs 1,000 crore on paying salaries to its employees in the first three months of this year.
According to the cash outlays information of the company for the first three months of this year, Satyam spent a total of Rs 1,026 crore on paying salaries and another Rs 342.72 crore in other employee-related segments.
The company made a cash outlay of Rs 91.17 crore on medical insurance for employees and Rs 251.55 crore on statutory compliance, the company said in the filing to the stock exchanges.
Overall, the company's total operating cash outlays stood at Rs 1,836 crore at the end of March this year.
The other expenditures of the company include - sub contractors, rent and utilities, travel and forex and other operating expenses.
At the end of March this year, the company's total headcount stood at 41,622, while its key subsidiaries, including Satyam BPO, had an employee strength of 3,828 associates.
Further, the non-operating cash outlays by the company in the three months period include - capital expenditures (Rs 52.54 crore), marked to market losses on account of foreign exchange contracts (Rs 147.81 crore) and repayment of loans (Rs 103.86 crore).
It also includes - deposits and margin money for bank guarantees and other non operative expenses, it added.
For the quarter ended December 2008, Satyam reported a consolidated net profit of Rs 160.50 crore and the total income stood at Rs 2,327.21 crore.
MUMBAI: Scam-hit Satyam Computer on Tuesday said that it has spent over Rs 1,000 crore on paying salaries to its employees in the first three months of this year.
According to the cash outlays information of the company for the first three months of this year, Satyam spent a total of Rs 1,026 crore on paying salaries and another Rs 342.72 crore in other employee-related segments.
The company made a cash outlay of Rs 91.17 crore on medical insurance for employees and Rs 251.55 crore on statutory compliance, the company said in the filing to the stock exchanges.
Overall, the company's total operating cash outlays stood at Rs 1,836 crore at the end of March this year.
The other expenditures of the company include - sub contractors, rent and utilities, travel and forex and other operating expenses.
At the end of March this year, the company's total headcount stood at 41,622, while its key subsidiaries, including Satyam BPO, had an employee strength of 3,828 associates.
Further, the non-operating cash outlays by the company in the three months period include - capital expenditures (Rs 52.54 crore), marked to market losses on account of foreign exchange contracts (Rs 147.81 crore) and repayment of loans (Rs 103.86 crore).
It also includes - deposits and margin money for bank guarantees and other non operative expenses, it added.
For the quarter ended December 2008, Satyam reported a consolidated net profit of Rs 160.50 crore and the total income stood at Rs 2,327.21 crore.
Maytas Infra says to start work on Karnataka airports
Tue Jun 9, 2009
Construction firm Maytas Infra Ltd said on Tuesday its board has approved starting work at Gulbarga and Shimoga airports in Karnataka immediately.
Maytas holds rights to build the two small airports, as part of a consortium that includes units of Nagarjuna Construction and Vienna International Airport.
Media reports had earlier reported the state government serving notice to Maytas asking why implementation was running behind schedule.
The Hyderabad-based company, linked to the founders of fraud-hit Satyam Computer Services, also said its government-appointed board is also working on a plan for the Hyderabad Metro and Machilipatnam Port projects.
Ahead of the announcement, the shares ended up 4.96 percent at 83.6 rupees each.
Construction firm Maytas Infra Ltd said on Tuesday its board has approved starting work at Gulbarga and Shimoga airports in Karnataka immediately.
Maytas holds rights to build the two small airports, as part of a consortium that includes units of Nagarjuna Construction and Vienna International Airport.
Media reports had earlier reported the state government serving notice to Maytas asking why implementation was running behind schedule.
The Hyderabad-based company, linked to the founders of fraud-hit Satyam Computer Services, also said its government-appointed board is also working on a plan for the Hyderabad Metro and Machilipatnam Port projects.
Ahead of the announcement, the shares ended up 4.96 percent at 83.6 rupees each.
Satyam has Rs.373 crore bank balance
9 June 2009
Mumbai, June 9: India's fraud-hit IT giant Satyam Computer Services Tuesday said it had a bank balance of Rs.373 crore (about $75 million) at the end of March 2009, but at the same time, it also had a Rs.460-crore loan outstanding.
At the beginning of the year, the IT giant's outstanding loan stood at Rs.200 crore. The company later repaid Rs.100 crore before raising Rs.369 crore in fresh loans in the first quarter, Satyam said in a regulatory statement.
"The company's total bank balances as on March 31, 2009, were Rs.373 crore. Out of the sanctioned loan limit, as on March 31, 2009, the company had availed loans worth Rs.469 crore ($93.8 million)," the filing said.
The company registered a profit after tax (PAT) of Rs.181 crore in the quarter ended Dec 31, 2008, the IT bellwether said.
Satyam had earlier furnished the details on a non-disclosure agreement to its bidders.
"Such information was provided to select bidders subject to the execution of a non-disclosure and non-solicitation agreement," the company said.
Satyam's export turnover during the quarter was Rs.2,194 crore, while domestic earnings were reported at Rs.100 crore.
During January, when the gross discrepancies in the balance sheet came into light, the IT exporter reported a minuscule PAT of Rs.5 crore.
In February, its profit soared to Rs.52 crore though revenues dropped to Rs.676 crore, the statement said.
This is the first publicly disclosed earnings estimates from Satyam since the disgraced former chairman Ramalinga Raju confessed inflating the company's balance sheet and assets by Rs.7,800 crore or more than $1.6 billion
Mumbai, June 9: India's fraud-hit IT giant Satyam Computer Services Tuesday said it had a bank balance of Rs.373 crore (about $75 million) at the end of March 2009, but at the same time, it also had a Rs.460-crore loan outstanding.
At the beginning of the year, the IT giant's outstanding loan stood at Rs.200 crore. The company later repaid Rs.100 crore before raising Rs.369 crore in fresh loans in the first quarter, Satyam said in a regulatory statement.
"The company's total bank balances as on March 31, 2009, were Rs.373 crore. Out of the sanctioned loan limit, as on March 31, 2009, the company had availed loans worth Rs.469 crore ($93.8 million)," the filing said.
The company registered a profit after tax (PAT) of Rs.181 crore in the quarter ended Dec 31, 2008, the IT bellwether said.
Satyam had earlier furnished the details on a non-disclosure agreement to its bidders.
"Such information was provided to select bidders subject to the execution of a non-disclosure and non-solicitation agreement," the company said.
Satyam's export turnover during the quarter was Rs.2,194 crore, while domestic earnings were reported at Rs.100 crore.
During January, when the gross discrepancies in the balance sheet came into light, the IT exporter reported a minuscule PAT of Rs.5 crore.
In February, its profit soared to Rs.52 crore though revenues dropped to Rs.676 crore, the statement said.
This is the first publicly disclosed earnings estimates from Satyam since the disgraced former chairman Ramalinga Raju confessed inflating the company's balance sheet and assets by Rs.7,800 crore or more than $1.6 billion
Saturday, June 6, 2009
GEQD report confirms forgery in Satyam scam
5 Jun 2009
HYDERABAD: The Union home ministry's Government Examiner of Questioned Documents (GEQD) has filed his report in the local CBI court which has reportedly confirmed the forgery committed by B Ramalinga Raju and other accused in the Satyam scam.
GEQD of Hyderabad, who is part of the directorate of forensic science working under the aegis of the Union home ministry, was earlier sent several documents signed by Raju and others. Certain cheques, fake fixed deposit papers, forged bank balance sheets - all signed by Raju and Co earlier along with their specimen signatures collected through CBI court - were sent to GEQD for verification.
In the verification, it was said, all the signatures tallied with one another. This means the charge of forgery for cheating can be established. In fact, the CBI, which is investigating into the scam, has charged the accused with IPC 468 also and the GEQD report would help them establishing the guilt of the accused in this regard.
After obtaining the report from GEQD, the CBI has filed this report in the court on Wednesday.
HYDERABAD: The Union home ministry's Government Examiner of Questioned Documents (GEQD) has filed his report in the local CBI court which has reportedly confirmed the forgery committed by B Ramalinga Raju and other accused in the Satyam scam.
GEQD of Hyderabad, who is part of the directorate of forensic science working under the aegis of the Union home ministry, was earlier sent several documents signed by Raju and others. Certain cheques, fake fixed deposit papers, forged bank balance sheets - all signed by Raju and Co earlier along with their specimen signatures collected through CBI court - were sent to GEQD for verification.
In the verification, it was said, all the signatures tallied with one another. This means the charge of forgery for cheating can be established. In fact, the CBI, which is investigating into the scam, has charged the accused with IPC 468 also and the GEQD report would help them establishing the guilt of the accused in this regard.
After obtaining the report from GEQD, the CBI has filed this report in the court on Wednesday.
Court reserves order on ED's plea in Satyam case
3 Jun 2009 PTI
HYDERABAD: A local court today reserved its orders for Friday on the Enforcement Directorate's petition, seeking permission to record the statements of the founder Satyam Computer B Ramalinga Raju and four other accused in the multi-crore rupee financial fraud case.
The XIV Chief Additional Metropolitan Magistrate Justice K Sudhakar after hearing the arguments posted his orders to June 5.
The Enforcement Directorate (ED) had filed a petition in the designated court of CBI on April 6 seeking its permission to record the statements of the accused in the jail to find out whether they have violated the Prevention of Money Laundering Act (PMLA).
The ED wanted to record the statements of Raju brothers, former CFO Vadlamani Srinivas and S Gopalakrishnan and Talluri Srinivas of Price Waterhouse.
Meanwhile, government examiner of questioned documents (GEQD), a central government forensic institute, today submitted its report in the court after verifying the signatures of the accused.
HYDERABAD: A local court today reserved its orders for Friday on the Enforcement Directorate's petition, seeking permission to record the statements of the founder Satyam Computer B Ramalinga Raju and four other accused in the multi-crore rupee financial fraud case.
The XIV Chief Additional Metropolitan Magistrate Justice K Sudhakar after hearing the arguments posted his orders to June 5.
The Enforcement Directorate (ED) had filed a petition in the designated court of CBI on April 6 seeking its permission to record the statements of the accused in the jail to find out whether they have violated the Prevention of Money Laundering Act (PMLA).
The ED wanted to record the statements of Raju brothers, former CFO Vadlamani Srinivas and S Gopalakrishnan and Talluri Srinivas of Price Waterhouse.
Meanwhile, government examiner of questioned documents (GEQD), a central government forensic institute, today submitted its report in the court after verifying the signatures of the accused.
Tech Mahindra to prepay Satyam loan
4 Jun 2009, ET Now
The new owners of Satyam Computer Services plan to prepay a Rs 300-crore loan the company had taken in February in an indication of its improved financial position just a month after being taken over by Tech Mahindra.
Part of the money that Satyam received from Tech Mahindra when it bought a 31% stake in the Hyderabad-based company will be used to retire the loan, a person familiar with the development said.
Satyam’s board of directors has approved the early repayment. “The cash flow situation has improved as the company has been able to recover some of its dues,” he said.
The loan was raised from IDBI Bank and Bank of Baroda after the government-appointed board tasked with rescuing Satyam found that the company was cash-strapped and did not have enough funds to meet its short-term obligations.
The company’s founder B Ramalinga Raju said on January 7 that its accounts were manipulated, leaving an over Rs 7,000-crore hole in its books.
The one-year loan, carrying a 13.5% interest rate, was raised by pledging Satyam’s land in Hyderabad. The company only drew half the Rs 600 crore it was sanctioned by the banks.
Tech Mahindra, which in April won the bid for Satyam, has infused Rs 1,756 crore into the company by subscribing to a preferential issue of 30.27 crore shares at Rs 58 per share. An open offer to buy a further 20% stake will open on June 12.
The new owners of Satyam Computer Services plan to prepay a Rs 300-crore loan the company had taken in February in an indication of its improved financial position just a month after being taken over by Tech Mahindra.
Part of the money that Satyam received from Tech Mahindra when it bought a 31% stake in the Hyderabad-based company will be used to retire the loan, a person familiar with the development said.
Satyam’s board of directors has approved the early repayment. “The cash flow situation has improved as the company has been able to recover some of its dues,” he said.
The loan was raised from IDBI Bank and Bank of Baroda after the government-appointed board tasked with rescuing Satyam found that the company was cash-strapped and did not have enough funds to meet its short-term obligations.
The company’s founder B Ramalinga Raju said on January 7 that its accounts were manipulated, leaving an over Rs 7,000-crore hole in its books.
The one-year loan, carrying a 13.5% interest rate, was raised by pledging Satyam’s land in Hyderabad. The company only drew half the Rs 600 crore it was sanctioned by the banks.
Tech Mahindra, which in April won the bid for Satyam, has infused Rs 1,756 crore into the company by subscribing to a preferential issue of 30.27 crore shares at Rs 58 per share. An open offer to buy a further 20% stake will open on June 12.
Satyam May Cut Wages of Some Staff
BANGALORE -- Fraud-hit Satyam Computer Services Ltd. plans to put about 8,000 employees who aren't working on any projects on standby for new contracts, and cut their salaries as part of its measures to reduce costs, two people familiar with the matter said Friday.
"Most of these people are already on a sabbatical and haven't been billed in recent times," one of the people told Dow Jones Newswires, asking not to be named.
The person said the company is considering paying only about 40%-50% of basic pay to employees on the bench.
Information-technology companies generally keep a part of their employees on standby, or the bench, to quickly deploy them if the company gets new projects. Satyam is considering putting employees on the bench and cutting their salaries as laying off such a large number of people could be difficult.
A decision on staff rationalization is yet to be taken, both the persons said, without giving any timeline for a decision.
India's federal Minister of Corporate Affairs Salman Khurshid recently said that Satyam's acquirer, Tech Mahindra Ltd., should deal with the issue of surplus employees with "sensitivity."
Tech Mahindra Chief Executive Vineet Nayyar, also now a member of the Satyam board, said last month that Satyam had an excess staff of around 10,000. The company has a total of about 40,000 employees.
The person said the employees put on the bench will remain entitled to medical reimbursements and provident fund. "They could be called back to full duty when projects are available," the person said.
While a company spokesperson could not be immediately contacted, T. Hari, Satyam's global marketing head, said, "We are exploring the most humane ways to tackle this issue."
Earlier Friday, the Business Standard newspaper reported that Satyam's board may meet June 11 to discuss the issue.
Satyam was plunged into turmoil when founder B. Ramalinga Raju said in January that he cooked the company's books, overstated profits and revenue, and created fictitious cash balances.
In April, a government-appointed board sold a 31% stake in Satyam to Tech Mahindra unit Venturbay Consultants Pvt. Ltd. Venturbay's open offer for an additional 20% stake in Satyam is slated to start June 12.
"Most of these people are already on a sabbatical and haven't been billed in recent times," one of the people told Dow Jones Newswires, asking not to be named.
The person said the company is considering paying only about 40%-50% of basic pay to employees on the bench.
Information-technology companies generally keep a part of their employees on standby, or the bench, to quickly deploy them if the company gets new projects. Satyam is considering putting employees on the bench and cutting their salaries as laying off such a large number of people could be difficult.
A decision on staff rationalization is yet to be taken, both the persons said, without giving any timeline for a decision.
India's federal Minister of Corporate Affairs Salman Khurshid recently said that Satyam's acquirer, Tech Mahindra Ltd., should deal with the issue of surplus employees with "sensitivity."
Tech Mahindra Chief Executive Vineet Nayyar, also now a member of the Satyam board, said last month that Satyam had an excess staff of around 10,000. The company has a total of about 40,000 employees.
The person said the employees put on the bench will remain entitled to medical reimbursements and provident fund. "They could be called back to full duty when projects are available," the person said.
While a company spokesperson could not be immediately contacted, T. Hari, Satyam's global marketing head, said, "We are exploring the most humane ways to tackle this issue."
Earlier Friday, the Business Standard newspaper reported that Satyam's board may meet June 11 to discuss the issue.
Satyam was plunged into turmoil when founder B. Ramalinga Raju said in January that he cooked the company's books, overstated profits and revenue, and created fictitious cash balances.
In April, a government-appointed board sold a 31% stake in Satyam to Tech Mahindra unit Venturbay Consultants Pvt. Ltd. Venturbay's open offer for an additional 20% stake in Satyam is slated to start June 12.
Tuesday, June 2, 2009
Satyam set to ink pact with M&M Group to tap aerospace customers
2 Jun 2009, ET Bureau
HYDERABAD: Satyam Computer Services is firming up a joint-go-to-market strategy with the Mahindra & Mahindra (M&M) group of companies for customers in the aerospace and other engineering segments to boost revenues from its engineering practice.
Tech Mahindra, the new owner of Satyam, is a subsidiary of the M&M group. Satyam will ink a non-disclosure pact with its partner before starting negotiations with customers. EADS, the owner of Airbus, features in the list of Satyam’s clients in the IES space.
The joint go-to market strategy will entail design, sourcing and making components for aerospace customers and other clients in the IES space. This division contributes to around 6-7% of Satyam’s revenues.
“The capability to do end-to-end aerospace components will make our clients leverage on the expertise from the combined entities”, said Karthik, Head, Integrated Engineering Solutions (IES), Satyam Computers.
He reckons that the global economic melt-down notwithstanding, the aerospace sector offers significant business opportunities as clients are looking for a good value proposition coupled with competitive pricing.
The Hyderabad based outsourcer reported revenues of around $ 2 billion before its defamed founder B Ramlainga Raju admitted to perpetrating a Rs 7,000 crore financial fraud. Many clients snapped ties after the fraud, impacting its revenues.
While Satyam’s accounts are now being re-stated, Tech M is reportedly looking at combined annual revenues of around $ 2.2 billion.
Besides aerospace, Satyam also offers IES to clients in the automotive, consumer products, telecom and healthcare sectors, besides aerospace. Engineering firm M&M has an established presence in the Indian market, especially in auto segment.
Satyam’s IES division offers a bouquet of product design and development services, both mechanical and electronic. The Systech group of M&M, in particular, has an eco-system for manufacturing and sourcing components from India.
It is reckoned that Satyam’s aerospace engineering practice will stand to gain from Mahindra Systech’s manufacturing capabilities. And the proposed tie-up will allow Satyam to select different parts of value chain – right from design and engineering of sub-systems upto sourcing and manufacturing.
“Satyam’s IES strengths in design, mechanical and embedded electronics, and China sourcing are complemented by M&M group companies’ strength in manufacturing and India sourcing. This synergy to take designs from art-to-part can help both clients accelerate their new product development (NPD) cycles and thereby increase their profitability across the global markets”, he said.
HYDERABAD: Satyam Computer Services is firming up a joint-go-to-market strategy with the Mahindra & Mahindra (M&M) group of companies for customers in the aerospace and other engineering segments to boost revenues from its engineering practice.
Tech Mahindra, the new owner of Satyam, is a subsidiary of the M&M group. Satyam will ink a non-disclosure pact with its partner before starting negotiations with customers. EADS, the owner of Airbus, features in the list of Satyam’s clients in the IES space.
The joint go-to market strategy will entail design, sourcing and making components for aerospace customers and other clients in the IES space. This division contributes to around 6-7% of Satyam’s revenues.
“The capability to do end-to-end aerospace components will make our clients leverage on the expertise from the combined entities”, said Karthik, Head, Integrated Engineering Solutions (IES), Satyam Computers.
He reckons that the global economic melt-down notwithstanding, the aerospace sector offers significant business opportunities as clients are looking for a good value proposition coupled with competitive pricing.
The Hyderabad based outsourcer reported revenues of around $ 2 billion before its defamed founder B Ramlainga Raju admitted to perpetrating a Rs 7,000 crore financial fraud. Many clients snapped ties after the fraud, impacting its revenues.
While Satyam’s accounts are now being re-stated, Tech M is reportedly looking at combined annual revenues of around $ 2.2 billion.
Besides aerospace, Satyam also offers IES to clients in the automotive, consumer products, telecom and healthcare sectors, besides aerospace. Engineering firm M&M has an established presence in the Indian market, especially in auto segment.
Satyam’s IES division offers a bouquet of product design and development services, both mechanical and electronic. The Systech group of M&M, in particular, has an eco-system for manufacturing and sourcing components from India.
It is reckoned that Satyam’s aerospace engineering practice will stand to gain from Mahindra Systech’s manufacturing capabilities. And the proposed tie-up will allow Satyam to select different parts of value chain – right from design and engineering of sub-systems upto sourcing and manufacturing.
“Satyam’s IES strengths in design, mechanical and embedded electronics, and China sourcing are complemented by M&M group companies’ strength in manufacturing and India sourcing. This synergy to take designs from art-to-part can help both clients accelerate their new product development (NPD) cycles and thereby increase their profitability across the global markets”, he said.
Satyam appoints Australia, NZ head
1 Jun, 2009,ANI
MELBOURNE: Satyam Computers has appointed Venki Prathivadi as country manager for Satyam Australia and New Zealand (ANZ) replacing Deepak Nangia.
The India based IT company has also appointed former chief information officer Vijay Prasad as principal advisor to the ANZ region to enable it to find its feet in the area after the set back in January following the revelation of a massive fraud.
It was learnt that the co company's founder and chairman, B Ramalinga Raju had over-inflated the value of its cash and bank balances by more than one billion US dollars.
Since the revelation of the fraud, number of Satyam's local customers including Telstra and National Australia Bank had cancelled its contracts or reduced their involvement with the company.
Australian software major Telstra had dumped the scandal-ridden outsourcing partner Satyam from an applications support contract believed to be worth $32 million a year.
Prathivadi has been with Satyam since 2003 and worked as the account director on the now-terminated Telstra contract.
MELBOURNE: Satyam Computers has appointed Venki Prathivadi as country manager for Satyam Australia and New Zealand (ANZ) replacing Deepak Nangia.
The India based IT company has also appointed former chief information officer Vijay Prasad as principal advisor to the ANZ region to enable it to find its feet in the area after the set back in January following the revelation of a massive fraud.
It was learnt that the co company's founder and chairman, B Ramalinga Raju had over-inflated the value of its cash and bank balances by more than one billion US dollars.
Since the revelation of the fraud, number of Satyam's local customers including Telstra and National Australia Bank had cancelled its contracts or reduced their involvement with the company.
Australian software major Telstra had dumped the scandal-ridden outsourcing partner Satyam from an applications support contract believed to be worth $32 million a year.
Prathivadi has been with Satyam since 2003 and worked as the account director on the now-terminated Telstra contract.
200 jobs go as Satyam finds its feet
June 02, 2009
SATYAM Computer Services has dropped its local headcount by 200 people as a result of the economic crisis.
Satyam yesterday announced the appointments of a new country head and a ``principal adviser'' for its Australian business as outsourcer tries to find its feet after being rocked by fraud allegations at its India headquarters.
Venki Prathivadi will replace Deepak Nangia and take the reins as country manager for Satyam Australia and New Zealand (ANZ), reporting to Asia-Pacific head TR Anand.
Mr Nangia left the business about a month ago to pursue other opportunities.
Last year, Mr Nangia said the outsourcer employed about 1000 staff locally and had another 700 staff in India servicing Australian customers.
This number has dropped, Mr Prathivadi said, with about 800 staff in Australia and about 500 in India servicing local customers.
``They've come down a little bit they're more in the 1200-1300 range,'' according to Mr Prathivadi who has been with Satyam Australia since 2003.
``There's generally been a global downturn and in response to that our numbers have come down a little bit.''
He could not say whether staff numbers would drop further or grow in the future.
``We will have to see how the economy holds up and we will respond accordingly. If the economy improves and there is a business uptake that could very well go up.''
He said there would not be a significant shake-up of the local operations.
``My priorities are to strengthen the relationships with customers in ANZ, build new business and take care of our associates,'' he said.
Satyam has also appointed a principal adviser to the ANZ region, which will be staffed by the company's former-CIO Vijay Prasad.
The local management restructure follows the revelation in January the Indian parent company's founder and chairman, B. Ramalinga Raju over-inflated the value of its cash and bank balances by more than $US1 billion ($1.28 billion).
Since the fraud scandal a number of customers including Telstra and National Australia Bank have either terminated contracts or reduced their involvement with Satyam.
SATYAM Computer Services has dropped its local headcount by 200 people as a result of the economic crisis.
Satyam yesterday announced the appointments of a new country head and a ``principal adviser'' for its Australian business as outsourcer tries to find its feet after being rocked by fraud allegations at its India headquarters.
Venki Prathivadi will replace Deepak Nangia and take the reins as country manager for Satyam Australia and New Zealand (ANZ), reporting to Asia-Pacific head TR Anand.
Mr Nangia left the business about a month ago to pursue other opportunities.
Last year, Mr Nangia said the outsourcer employed about 1000 staff locally and had another 700 staff in India servicing Australian customers.
This number has dropped, Mr Prathivadi said, with about 800 staff in Australia and about 500 in India servicing local customers.
``They've come down a little bit they're more in the 1200-1300 range,'' according to Mr Prathivadi who has been with Satyam Australia since 2003.
``There's generally been a global downturn and in response to that our numbers have come down a little bit.''
He could not say whether staff numbers would drop further or grow in the future.
``We will have to see how the economy holds up and we will respond accordingly. If the economy improves and there is a business uptake that could very well go up.''
He said there would not be a significant shake-up of the local operations.
``My priorities are to strengthen the relationships with customers in ANZ, build new business and take care of our associates,'' he said.
Satyam has also appointed a principal adviser to the ANZ region, which will be staffed by the company's former-CIO Vijay Prasad.
The local management restructure follows the revelation in January the Indian parent company's founder and chairman, B. Ramalinga Raju over-inflated the value of its cash and bank balances by more than $US1 billion ($1.28 billion).
Since the fraud scandal a number of customers including Telstra and National Australia Bank have either terminated contracts or reduced their involvement with Satyam.
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