30 April 2009
Around 350 employees of Byrraju Foundation, a non-profit organisation founded by the family of ex-promoter of Satyam Computer Services Ramalinga Raju, currently in jail pending completion of fraud investigations, have quit since the Rs7,000 crore rupee scam surfaced in January.
The Foundation now has 850 people on its payroll, down from 1,200 immediately before the scam came to light, Byrraju Foundation chief executive officer Jacob Verghese told a news agency on Wednesday.
The employees left as they were told that only a part of their remuneration would be guaranteed, as the Raju family would not be able to support the foundation because of the legal trouble that they are in, he added.
"The Raju family used to provide Rs10-Rs20 crore out of the annual budget of Rs30 crore of the Foundation. After the family got into legal trouble, we told the employees that only 40-50 per cent of their salaries would be guaranteed. Many of them chose to quit,'' Verghese said.
He, however, claimed many of those who left still work as volunteers on weekends for the initiatives of the Foundation.
On the funding of the foundation, Verghese said the Raju family provided money out of its own pocket and "not a single penny was taken from Satyam''. The same is true for the Rs30-Rs40 crore per annum funding of EMRI, another non-profit body set up by the Rajus, populalry known as the Dial 108 service, that responds to highway emergencies.
Showing posts with label S. Show all posts
Showing posts with label S. Show all posts
Friday, May 1, 2009
Tuesday, April 21, 2009
Satyam fraud: What was Vadlamani’s role?
Hyderabad, April 19
What was the role of Mr Vadlamani Srinivas, ex-CFO of Satyam Computer Services, who revealed that the FDs were non-existent, results manipulated and he just signed on instructions from Mr B. Ramalinga Raju, ex-Chairman, in the Rs 7,136-crore financial fraud?
Being at the centre of all financial dealings of Satyam, Mr V. Srinivas wilfully and actively manipulated financial data and guided the finance department staff in modifying the published results, which were false and forged, the Central Bureau of Investigation (CBI) has alleged.
In its charge sheet on the Satyam case, the CBI said Mr Srinivas got the monthly bank statements of various banks forged, he got issued forged bank balance confirmation letters and got the forged letters signed by Mr B. Rama Raju (Ex-Managing Director), an accused and brother of Mr Ramalinga Raju, showing purported transfer of funds and got forged FDs prepared.
All these forged documents were used for fraudulently inflating the cash and bank balance artificially in the books of accounts for several years, the CBI chargsheet has brought to light.
Though Mr Srinivas was never designated as Director, he subscribed his signature in the annual financial statements of the company as a Director, the investigating agency has charged.
The ex-CFO dishonestly got the falsified, inflated sales invoices generated and fed in the Oracle Financials System. He was in league with the other accused persons and perpetrated the fraudulent acts. Thus, he was privy to the offences, it concluded.
Further, Mr Srinivas guided the finance department personnel on the quantum of inflation of sales to be infused into the computer system from time to time. The CBI has retrieved evidence to this effect from his e-mail box, the chargesheet said.
Rosy presentations
Mr Srinivas along with Mr Ramalinga Raju gave deceptive replies on Satyam’s earnings during conference calls conducted every quarter to various investors, thus distorting the actual financial position.
During board meetings and the audit committee meetings, the ex-CFO made rosy presentations of the company’s financial health, despite knowing the real financial position. Similarly, by conniving with the Raju brothers, he worked against the interest of the company and shareholders, whose interests he was to protect.
While being party to perpetrating the fraud with the Raju brothers and other accused, Mr Srinivas was a beneficiary. He gained from the dividends received and the amount got by offloading shares at opportune moments, the CBI accused in the chargesheet.
What was the role of Mr Vadlamani Srinivas, ex-CFO of Satyam Computer Services, who revealed that the FDs were non-existent, results manipulated and he just signed on instructions from Mr B. Ramalinga Raju, ex-Chairman, in the Rs 7,136-crore financial fraud?
Being at the centre of all financial dealings of Satyam, Mr V. Srinivas wilfully and actively manipulated financial data and guided the finance department staff in modifying the published results, which were false and forged, the Central Bureau of Investigation (CBI) has alleged.
In its charge sheet on the Satyam case, the CBI said Mr Srinivas got the monthly bank statements of various banks forged, he got issued forged bank balance confirmation letters and got the forged letters signed by Mr B. Rama Raju (Ex-Managing Director), an accused and brother of Mr Ramalinga Raju, showing purported transfer of funds and got forged FDs prepared.
All these forged documents were used for fraudulently inflating the cash and bank balance artificially in the books of accounts for several years, the CBI chargsheet has brought to light.
Though Mr Srinivas was never designated as Director, he subscribed his signature in the annual financial statements of the company as a Director, the investigating agency has charged.
The ex-CFO dishonestly got the falsified, inflated sales invoices generated and fed in the Oracle Financials System. He was in league with the other accused persons and perpetrated the fraudulent acts. Thus, he was privy to the offences, it concluded.
Further, Mr Srinivas guided the finance department personnel on the quantum of inflation of sales to be infused into the computer system from time to time. The CBI has retrieved evidence to this effect from his e-mail box, the chargesheet said.
Rosy presentations
Mr Srinivas along with Mr Ramalinga Raju gave deceptive replies on Satyam’s earnings during conference calls conducted every quarter to various investors, thus distorting the actual financial position.
During board meetings and the audit committee meetings, the ex-CFO made rosy presentations of the company’s financial health, despite knowing the real financial position. Similarly, by conniving with the Raju brothers, he worked against the interest of the company and shareholders, whose interests he was to protect.
While being party to perpetrating the fraud with the Raju brothers and other accused, Mr Srinivas was a beneficiary. He gained from the dividends received and the amount got by offloading shares at opportune moments, the CBI accused in the chargesheet.
Satyam surges 5 pc, Tech Mahindra dips 8 pc on BSE
21 Apr 2009 PTI
MUMBAI: Satyam Computer Services on Tuesday surged over five per cent on the Bombay Stock Exchange with its new owner, Tech Mahindra, scheduled to make an open offer on Tuesday for a 20 per cent stake in the IT firm.
Meanwhile, shares of Tech Mahindra dipped as much as eight per cent in the intra-day trade on the bourses.
Tech Mahindra would today announce an open offer for a 20 per cent additional stake in Satyam.
Marketmen said there was a surge in Satyam scrip owing to the open offer, while the dip in Tech Mahindra was largely because investors turned cautious and dumped the stock.
The government-appointed board of Satyam met in Hyderabad yesterday. In the meeting, Tech Mahindra officials and Mahindra Group chief Anand Mahindra were invitees.
Tech Mahindra yesterday deposited Rs 2,910 crore for a 51 per cent controlling stake in Satyam Computer.
Shares of Satyam opened firm and rallied further to touch a high of Rs 50.15, up 5.47 per cent over previous close on the BSE.
Similar movement was seen on the National Stock Exchange, where the scrip surged 5.03 per cent to a high of Rs 50.10.
On the volume front, a good 1.55 crore shares changed hands on both the bourses.
MUMBAI: Satyam Computer Services on Tuesday surged over five per cent on the Bombay Stock Exchange with its new owner, Tech Mahindra, scheduled to make an open offer on Tuesday for a 20 per cent stake in the IT firm.
Meanwhile, shares of Tech Mahindra dipped as much as eight per cent in the intra-day trade on the bourses.
Tech Mahindra would today announce an open offer for a 20 per cent additional stake in Satyam.
Marketmen said there was a surge in Satyam scrip owing to the open offer, while the dip in Tech Mahindra was largely because investors turned cautious and dumped the stock.
The government-appointed board of Satyam met in Hyderabad yesterday. In the meeting, Tech Mahindra officials and Mahindra Group chief Anand Mahindra were invitees.
Tech Mahindra yesterday deposited Rs 2,910 crore for a 51 per cent controlling stake in Satyam Computer.
Shares of Satyam opened firm and rallied further to touch a high of Rs 50.15, up 5.47 per cent over previous close on the BSE.
Similar movement was seen on the National Stock Exchange, where the scrip surged 5.03 per cent to a high of Rs 50.10.
On the volume front, a good 1.55 crore shares changed hands on both the bourses.
Wednesday, April 15, 2009
Satyam Sends Tech Mahindra Proposal to India Board
BANGALORE -- The board of Satyam Computer Services Ltd. Wednesday sent Tech Mahindra Ltd.'s proposal to buy a controlling stake in the beleaguered company to the Company Law Board, a person familiar with the development said.
"The proposal has been sent. Satyam expects an approval very soon," the person, who asked not to be named, told Dow Jones Newswires.
Earlier Monday, Satyam named a unit of Tech Mahindra the highest bidder for a controlling stake.
Venturbay Consultants Pvt. Ltd., a special purpose vehicle set up for the stake buy, will pay 17.56 billion ($354.7 million) for 302.76 million Satyam shares, or a 31% stake, at 58 rupees per share, Satyam said.
The deal needs to be approved by the Company Law Board, a semi-judicial authority.
Company Law Board Chairman S. Balasubramanian said Monday the agency will rule on the deal within 24 hours of receiving the recommendation from Satyam's board.
Satyam has been in turmoil since founder B. Ramalinga Raju revealed in January that he had overstated the company's profits over several years and created a fictitious cash balance of more than $1 billion
"The proposal has been sent. Satyam expects an approval very soon," the person, who asked not to be named, told Dow Jones Newswires.
Earlier Monday, Satyam named a unit of Tech Mahindra the highest bidder for a controlling stake.
Venturbay Consultants Pvt. Ltd., a special purpose vehicle set up for the stake buy, will pay 17.56 billion ($354.7 million) for 302.76 million Satyam shares, or a 31% stake, at 58 rupees per share, Satyam said.
The deal needs to be approved by the Company Law Board, a semi-judicial authority.
Company Law Board Chairman S. Balasubramanian said Monday the agency will rule on the deal within 24 hours of receiving the recommendation from Satyam's board.
Satyam has been in turmoil since founder B. Ramalinga Raju revealed in January that he had overstated the company's profits over several years and created a fictitious cash balance of more than $1 billion
Friday, March 20, 2009
Lenders want Maytas Infra recast
Hyderabad March 20, 2009
Reconstituted board meets, to talk to lenders.
The lenders of Maytas Infra Ltd, promoted by the family of Ramalinga Raju, the disgraced founder of Satyam Computer Services, have sought restructuring of the firm.
The newly appointed (by the government) board members, OP Vaish and Ved Jain, said the company and its lenders were expected to reach an agreement in this regard by March 25.
The board met here under the chairmanship of Vaish and sought information on the state of the company and the various projects it was implementing and negotiating. The company’s Vice-Chairman, B Teja Raju, and Additional Director B Narasimha Rao, were present. The board will reconvene next week.
Meanwhile, the two new board members said they would hold an informal meeting with all stakeholders, including lenders.
The board of Maytas Properties, a sister company, had met yesterday. The meeting was also chaired by Jain. He said the company had called for a meeting on March 25 of all those who had booked flats or houses with the company.
In the Maytas Infra meeting, a presentation was made to the board, which wanted more information in three days. The effort is to protect the interests of all stakeholders. The board is supposed to have begun planning for this.
On if the company was looking for a suitor like Satyam, Vaish said the case of Maytas Infra was different from Satyam and there appeared no need for a suitor. The company has not fixed a timeframe to declare the third-quarter results. The board, however, asked it to do so as soon as possible. Asserting that the company had a large order book, he said the board was not in a position to comment on the individual projects being implemented.
“There is no man-biting-dog situation yet,” Vaish said in reply to a query if the board had found anything unusual with the fund flow and if the company was financially sound enough to go on with various projects. “We are not giving a certificate to Maytas. We do not know now if there is diversion of funds from Satyam to Maytas. We do not have any information on that,” he said.
Post January 7 (when Raju confessed to fraud), the credibility of the company had taken a beating and that resulted in delays in execution, Jain said. The company was, however, confident of continuing the business, he added.
The duo did not comment on whether the company had deposited the Rs 240 crore performance guarantee while seeking the extension of the deadline for financial closure for the Hyderabad Metro Rail project.
“The company is interested in executing the project,” Jain said, adding that the board would also meet other members of the consortium that had won the high-profile project
The company had 1,800 employees, Vaish said, adding that nobody had been asked to leave.
Reconstituted board meets, to talk to lenders.
The lenders of Maytas Infra Ltd, promoted by the family of Ramalinga Raju, the disgraced founder of Satyam Computer Services, have sought restructuring of the firm.
The newly appointed (by the government) board members, OP Vaish and Ved Jain, said the company and its lenders were expected to reach an agreement in this regard by March 25.
The board met here under the chairmanship of Vaish and sought information on the state of the company and the various projects it was implementing and negotiating. The company’s Vice-Chairman, B Teja Raju, and Additional Director B Narasimha Rao, were present. The board will reconvene next week.
Meanwhile, the two new board members said they would hold an informal meeting with all stakeholders, including lenders.
The board of Maytas Properties, a sister company, had met yesterday. The meeting was also chaired by Jain. He said the company had called for a meeting on March 25 of all those who had booked flats or houses with the company.
In the Maytas Infra meeting, a presentation was made to the board, which wanted more information in three days. The effort is to protect the interests of all stakeholders. The board is supposed to have begun planning for this.
On if the company was looking for a suitor like Satyam, Vaish said the case of Maytas Infra was different from Satyam and there appeared no need for a suitor. The company has not fixed a timeframe to declare the third-quarter results. The board, however, asked it to do so as soon as possible. Asserting that the company had a large order book, he said the board was not in a position to comment on the individual projects being implemented.
“There is no man-biting-dog situation yet,” Vaish said in reply to a query if the board had found anything unusual with the fund flow and if the company was financially sound enough to go on with various projects. “We are not giving a certificate to Maytas. We do not know now if there is diversion of funds from Satyam to Maytas. We do not have any information on that,” he said.
Post January 7 (when Raju confessed to fraud), the credibility of the company had taken a beating and that resulted in delays in execution, Jain said. The company was, however, confident of continuing the business, he added.
The duo did not comment on whether the company had deposited the Rs 240 crore performance guarantee while seeking the extension of the deadline for financial closure for the Hyderabad Metro Rail project.
“The company is interested in executing the project,” Jain said, adding that the board would also meet other members of the consortium that had won the high-profile project
The company had 1,800 employees, Vaish said, adding that nobody had been asked to leave.
Friday, March 13, 2009
L&T, Tech Mahindra, Spice put in EoI for Satyam; Hindujas pull out
12 Mar 2009, ET Bureau
L&T, Tech Mahindra and the Spice group have all put in an expression of interest (EOI) for Satyam Computer Services .
The government appointed Satyam Computer Services board will now meet tomorrow to scrutinize the Expression on Interest (EoI) submitted by potential bidders for the company.
The Hindujas, however, have pulled out of the Satyam race citing the unquantifiable legal liabilities of the Hyderabad-based company.
"We would rather wait for the restated accounts and status of legal liabilities of the company. That's why we did not register today," a top Hinduja official told ET.
The official said the legal liabilities of upto $840 million makes it a big risk factor for the group to make any bid for Satyam. "Even if we get the company for free... we would think twice," the official said asking not to be quoted. The last date for Satyam suitors to register today expires today at 5 pm (IST).
The source said it would be better to sell Satyam after the company restates its accounts and settles its legal liabilities. "If we take into account the return on capital employed and the free cash flow of Satyam, then it makes the company quite unattractive," he said.
The official deadline to submit the bid and proof of adequate funds is March 20.
Satyam has been in turmoil since founder B. Ramalinga Raju confessed on January 7 that he overstated the company's profits over several years and created a fictitious cash balances of more than Rs 7,000 crore.
Based on the evaluation of bids, the Satyam board will induct a strategic investor to take management control of the firm
L&T, Tech Mahindra and the Spice group have all put in an expression of interest (EOI) for Satyam Computer Services .
The government appointed Satyam Computer Services board will now meet tomorrow to scrutinize the Expression on Interest (EoI) submitted by potential bidders for the company.
The Hindujas, however, have pulled out of the Satyam race citing the unquantifiable legal liabilities of the Hyderabad-based company.
"We would rather wait for the restated accounts and status of legal liabilities of the company. That's why we did not register today," a top Hinduja official told ET.
The official said the legal liabilities of upto $840 million makes it a big risk factor for the group to make any bid for Satyam. "Even if we get the company for free... we would think twice," the official said asking not to be quoted. The last date for Satyam suitors to register today expires today at 5 pm (IST).
The source said it would be better to sell Satyam after the company restates its accounts and settles its legal liabilities. "If we take into account the return on capital employed and the free cash flow of Satyam, then it makes the company quite unattractive," he said.
The official deadline to submit the bid and proof of adequate funds is March 20.
Satyam has been in turmoil since founder B. Ramalinga Raju confessed on January 7 that he overstated the company's profits over several years and created a fictitious cash balances of more than Rs 7,000 crore.
Based on the evaluation of bids, the Satyam board will induct a strategic investor to take management control of the firm
Saturday, January 10, 2009
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