OMG Satyam is dying

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Many of the mid and high level satyam employee's knew about this money laundering activity in the co since years. most of them actively participated in it too.
when thet had easy income they kept their mouth shut now when the scheme is exposed by their chairman himself they are making noise to save their jobs or easy income.
i have no sympathy for such employee's. they deserve it. infact it would be better if other untainted co's do not employ them as they would ruin the work culture there too.
ps: guys , keep a look out in the media for so callled politicians who are pleading for the govt. to do something. these are the politicians who had taken part in the money laundering. fear of exposure is prompting this move as they feel if the investigation is done by govt. then they have better chance of "controlling" the investigation.

better option would be to appoint independent, professional accountants who will report directly to the people through supreme court or media.
 
^^ what money laundering are you talking about ? Satyam showed money it never earned, where does money laundering come into picture ?
 
Aces170 said:
^^ what money laundering are you talking about ? Satyam showed money it never earned, where does money laundering come into picture ?
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I vividly remember they had purchased a nascent indian portal / website in 1999 / 2000. for more than 100 million dollars. when even the most IT optimistic market analyst were of the opinion that it was not worth even a million dollar, even after taking into a/c the abnormal page hit values.
That site was owned by some marwari jain.

a known hawala player in the market.
it was the begining or genesis of this money laundering racket scam whatever.
only after the audit of each bill raised by satyam and each payment voucher is done for the last 10 years will the true picture emerge.

The amount of fictitious entries will be staggering.
@aces170, chief-techie,

do you guys even know how money laundering is done in corporate circles ? the amounts involved ? the source of the funds ? etc.. if not, then enjoy what the biased & programmed media dishes out to you and dont bother to exercise your brain.
 
obama said:
I vividly remember they had purchased a nascent indian portal / website in 1999 / 2000. for more than 100 million dollars. when even the most IT optimistic market analyst were of the opinion that it was not worth even a million dollar, even after taking into a/c the abnormal page hit values.
That site was owned by some marwari jain.
a known hawala player in the market.
it was the begining or genesis of this money laundering racket scam whatever.
only after the audit of each bill raised by satyam and each payment voucher is done for the last 10 years will the true picture emerge.
The amount of fictitious entries will be staggering.
@aces170, chief-techie,
do you guys even know how money laundering is done in corporate circles ? the amounts involved ? the source of the funds ? etc.. if not, then enjoy what the biased & programmed media dishes out to you and dont bother to exercise your brain.
Click to expand...

^^ Woah why the hostility...Are you are the know it all and everyone else who even tries to say anything is potential threat to your alpha male status.....

If above is the reason I understand :rofl:
 
Aces170 said:
^^ You are just valuing the assets, what about the liabilities ? Satyam has a sizable amount of debt, which any Co. when taking over, will take over too. Not to mention a 1250 Cr of liability that is yet unaccounted for... Banks are gonna lose some money too in this fraud.
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There isnt just one kind of acquisition mechanism, there are many ways in which such a company can be gainfully bought out, the guys on TV really just try and make people scared and create drama..

Satyam, if theres is will, can still survive and come out of the mess..The only problem is that it has ADRs and im not sure what will be the status there..

Right now, if what the letter contains is the whole truth, then this is just a badly performing company, the fraud that has taken place does not include the management siphoning off money instead trying to just over quote the figures and show an improved picture..

A simple restatement by PWC wil show the true picture.An internal reconstruction will follow, the authorities wil impose penalties, take action, and then hopefully all will be well..

As for auditing standards, they are already very tough, even their implementation is stringent, but the problem is when the management is involved to such an extent, and is so influential, giving false statements to support the accounts is pretty easy.

Remember its not the duty of an auditor to find frauds, they are required to make sure a that as per the books maintained by the company, the financial statements show a true and fair view.

From the news thats coming, it seems that they forged the bank statements too, in this case if conventional proof is being forged, then its very hard for the auditor to do or come to know anything..

Especially the frauds by higher management are difficult to trace..

On another portal, Some one said this, read it:-
"I think i have an interesting point to make. They say little knowledge is too dangerous. But having watched satyam's events on daily basis, i am quite sure there is a big probability, that my claim can be true ,though its definitely a dangerous claim. What if this ramalinga raju's letter is just a big "Lie" . I am going to make some assumptions here: 1. Maytas was really the source of trouble and never it was satyam, as raju claims. 2. There were no inflated profits and Satyam's balance sheets are clean. These assumptions leave us with the question - "Then why Mr.Raju has to give a letter that the profits were inflated" - which leads to third assumption of mine. 3. Mr. Raju had diverted money from satyam's balance sheet into Maytas or somewhere and claims that there were artifical money due to inflated profits. Now this is a interesting deduction and most of you are going to dismiss it by saying they are just assumptions. There is a strong reason why this can't be just assumption. Answer this. What could be the reason for Mr.raju to inflate the profits. Do you really think the fear of competition and need of posting good margins can drive a person of his stature, to risk his life and to commit such a big fraudelent activity."
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obama said:
I vividly remember they had purchased a nascent indian portal / website in 1999 / 2000. for more than 100 million dollars. when even the most IT optimistic market analyst were of the opinion that it was not worth even a million dollar, even after taking into a/c the abnormal page hit values.
That site was owned by some marwari jain.

a known hawala player in the market.
it was the begining or genesis of this money laundering racket scam whatever.
only after the audit of each bill raised by satyam and each payment voucher is done for the last 10 years will the true picture emerge.

The amount of fictitious entries will be staggering.
@aces170, chief-techie,

do you guys even know how money laundering is done in corporate circles ? the amounts involved ? the source of the funds ? etc.. if not, then enjoy what the biased & programmed media dishes out to you and dont bother to exercise your brain.
Click to expand...

Any names/news links etc substantiating the vividly remembered stories? Just curious :)
 
ronnie_gogs said:
^^ Woah why the hostility...Are you are the know it all and everyone else who even tries to say anything is potential threat to your alpha male status.....
If above is the reason I understand :rofl:
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No. That is Not the reason.

just trying to clear the ignorance with some facts.

here, understandibly, members will post what is "told" to them or "shown" to them by the media. but sadly nobody applies their mind and reads between the lines.
What actually happens discretely behind the scenes with or without the "help" of media nobody cares. i am just pointing towards that.

ps: have you ever heard of any prominent politician / high profile industrialist being jailed as per laws of our land? does that mean there is no corruption in politics or civil life in our country ?

This is our legal-judicial system.
same is going to happen in this case. public memory is too short and the whole matter will be covered up and forgotten, making some low-level people as the scape goat.

for all you know Raju may become chairman again after a few years !!!!
i still feel that merely booking raju or reprimanding PwC etc.. is not the solution. linning up the whole Accounts / CS section including CEO,CFO, UFO ....whatever and their agents and threatening them with death penalty by the military (not our civil agencies) will promptly bring out the truth rather than wait for 2 generations for the truth to come out a.k.a. Deep Throat.
 
Hmmm...having worked there for 3 years and having insight about the company being a localite as well, here are my 2 cents.

Satyam Computer Services, an MNC was never an MNC with regards to its work culture.Politics, sleaze (yes) and connections were abundant in there. I knew of a recruitment agency in Himayatnagar who could get you a job in Satyam for a payment of 1.5 Lakhs. Also, almost 5% of the workforce came in due to their contacts (Local or some other politicians relatives or some $hit like that). Also, Ramalinga Raju never considered the IT business as his main business and always valued the Realty business more than the IT Business (More so cos his sons were involved in Maytas). He never valued employee satisfaction and thought that this was some sort of side business making monies for his Realty business. Once the projects started coming in, the company went into a recruitment overdrive( I was the 18k+ employee when I was hired in 2004) and began filling up people and stuffing them into conference rooms in anticipation of projects , for example The Bahadurpally facility of Satyam comprises of 90% people on the bench, and when I used to reach office at 10, I could see that 50% of the people were outside having a warm cuppa.

The Middle Management of the company was worse than the Bubonic plague, too much of politics and sleaze and money laundering (as in teaming up with the HR to recruit people from outside for money, and stuff like that). The Higher management was no less bad, they gobbled up money in exchange for discounts on realty deals and helped mass recruitment drives of people who were not needed when 58% of the company strength was already on the Bench (Official figure in 2006).

To sum it up, it wasnt always like that, Satyam became a big scam 2004 onwards (When the company started getting projects after the resurgence from the 2001 era slump) and the higher management paid no attention to the internal affairs and employee satisfaction as they were too busy filling their coffers.Sad to see such a doyen of the Indian IT Industry go down. RIP.
 
I vividly remember they had purchased a nascent indian portal / website in 1999 / 2000. for more than 100 million dollars. when even the most IT optimistic market analyst were of the opinion that it was not worth even a million dollar, even after taking into a/c the abnormal page hit values.

That site was owned by some marwari jain.

a known hawala player in the market.

it was the begining or genesis of this money laundering racket scam whatever.
Click to expand...

Which site are you talking about ? $100MM is a lot of money, Satyam was listed in 2001 in the US, so prior to that how did it raise $100mm as surely no bank would have financed it so much of money ? So you mean to say almost all of the $100mm was illegal monies, I am surprised as why it dint raise any eyebrows back then ? Infact even Hotmail wasnt sold at that amount... I could not find this deal after a lil googling, perhaps you can help.

@Party Monger, its now almost impossible for Satyam to survive on its own, it will need to be acquired. Its salary bill PA is approx Rs5000 crs, where will it raise money for day to day operations, all banks would have certainly freezed all their credit lines with Satyam. And yes it is very much the duty of an auditor to point out any facts in misrepresentation of a/c's. Please dont tell me PWC could not figure it in years, when it just took Meryll Lynch just a day to figure it out !!!
 
What the satyam did in regard to employing people is not new to service sectors. Some of the skills necessary to perform jobs are unique and cannot be seen unless existing staff are trained , which obviously cannot be done on short term notices.

Now when u have a lucrative contract with very short deadlines from big clients, whats the recourse ... perhaps to employ new people who possess the skills. And then the global economic bubble busts.

Its not so uncommon among companies to account next financial period profits (say 2009) in earlier years (say 2008) thus showing higher profits in crfitical periods. And most can cover it up by showing little lower profits in succeeding years. After all valuation is to a large extent matter of opinions. However in present scenario the cover up didnt happen because of global economic meltdown and consistently lowering profits.

Its rightly summed up by esrtwhile chairman of satyam , Ramalinga Raju that it was like riding a tiger, not knowing how to get off it.

One thing i am surprised is how the bank balances were taken at face value by auditors. Sure we are going to see many more axed in PWC soon.

@Aces, Btw when i said it values at Rs.10-15, it was after providing for the liabilities, based on net assets. Thats if no new liability emerger after today, which itself is big assumptions considering US investors are already contemplating Class Suits against satyam.
 
magnet said:
If u see yesterday market infosys was still green when all went red......

As news coming out is all projects might being shifted to infosys now
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Fifa 2010 to Infy?? Bring it on :ohyeah:

but dammnit i'm in the banking sector..
 
dude , we a lot better work than that, for example , victoria's secret :P

but you wont get to work on any of them :bleh:
 
p_sam21 said:
Its rightly summed up by esrtwhile chairman of satyam , Ramalinga Raju that it was like riding a tiger, not knowing how to get off it.
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need to add "without being eaten ." ..
 
Aces170 said:
@Party Monger, its now almost impossible for Satyam to survive on its own, it will need to be acquired. Its salary bill PA is approx Rs5000 crs, where will it raise money for day to day operations, all banks would have certainly freezed all their credit lines with Satyam. And yes it is very much the duty of an auditor to point out any facts in misrepresentation of a/c's. Please dont tell me PWC could not figure it in years, when it just took Meryll Lynch just a day to figure it out !!!
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It doesnt work like that mate, ti all depends on the management level thats taking part in the fraud. Auditors are not god sent gifts to investors, they are not there to find fraud. An auditor will check and give an opinion on the transactions of the company, on the basis of the a/c statements they have given.

If Raju made available the bank statement showing 5000cr and if it was really through the bank how do you verify further? Cause it has the bank's seal..
If this is the depth of the whole fraud, then no auditor would have got the wind of this fraud..
The auditors will be penalized in this case due to the size of the fraud, but frankly there's little they can do, when theres evidence supporting the transaction, if its forged then they are not responsible..
And this is a very complicated case for people to make shallow statements that raju should be jailed/tortured and auditors be debarred..

As for the company, yes just saw the conference, but if 80% of the clients stick, which seems to be the case, then i see no reason for a company of this size to not bounce back..Expenditure may be a problem, but many people wil leave the organization soon, so hopefully they will be able to manage it..

The disturbing this is that the new management still has no idea abt the actual situation, just that they hav money tot meet jan expenditures..:@
 
greenhorn said:
dude , we a lot better work than that, for example , victoria's secret :P

but you wont get to work on any of them :bleh:
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:@
and i thought our ERP for EA sports/games was cool. This beats it hands down.

Greenie, i hope you dont linger at the workplace after hours. :P
 
Party Monger said:
It doesnt work like that mate, ti all depends on the management level thats taking part in the fraud. Auditors are not god sent gifts to investors, they are not there to find fraud. An auditor will check and give an opinion on the transactions of the company, on the basis of the a/c statements they have given.

If Raju made available the bank statement showing 5000cr and if it was really through the bank how do you verify further? Cause it has the bank's seal..

If this is the depth of the whole fraud, then no auditor would have got the wind of this fraud..

The auditors will be penalized in this case due to the size of the fraud, but frankly there's little they can do, when theres evidence supporting the transaction, if its forged then they are not responsible..
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Well a cash balance of 5000 crores when other similar companies are struggling should have been enough to raise a curiosity if not a outright suspicion and get a independent bank representation. And then is it that bank statements were never checked by auditors? Dont they vouch / reconcile the bank and company books? More i think about it , the more i m comvinced that there was a accomplice at top level of PWC alongwith Raju.
 
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