We are cursing on Pakistan for not taking action on Terrorists. The same way FIIs are Cursing India Why No action (Arrest ) taken on Ramalinga Raju? Which Polititian is behind it? Who is Safe guarding Raju?
For doing nothing Andhra police is Looking for Nimesh Kampani. And Finding Holes in Eenadu group Ramoji Rao with out any Complaints on them.
But Now the Government is waiting for a written complaint on Raju . Why can't this Govt can take the issue as sumoto case? Raju himself Admitted in writing.
What is going on ?? keeping us in cloud nine .
Think !!! we need ethical codes not only for the corporates but for the Politiatians too..
Thursday, January 8, 2009
Wednesday, January 7, 2009
WE @ OUR BLOG MOENY MATTERS KEEP SUSPECTING THE SATYAM from a very long back
I personally suspected the Satyam's Financial Status long back I advised all my clients keep away from Satyam Counter. We expected the Satyam Share Price would come down to Rs:70/- Our Trget Achieved even further down to Rs:39/-
World bank Case Against Satyam is not a recent news... we have collected that news in around Sept-08 and posted it in this blog. from US News agencies FOX News..
Readers can go through our old posts.
Our Present predition on satyam is ZEERO or Just the Fave value Rs:2/-
GV
World bank Case Against Satyam is not a recent news... we have collected that news in around Sept-08 and posted it in this blog. from US News agencies FOX News..
Readers can go through our old posts.
Our Present predition on satyam is ZEERO or Just the Fave value Rs:2/-
GV
Satyam chief RAMALINGA RAJUadmits to fraud, quits
“Accounts fudged to the tune of Rs. 7,106 crore over several years”
Sending shockwaves: B. Ramalinga Raju, who resigned as Chairman, Satyam Computers, after admitting that the company accounts were fudged. At right, investors at the Bombay Stock Exchange react as the Sensex plunged on Wednesday.
HYDERABAD: Byrraju Ramalinga Raju resigned as chairman of Satyam Computers, India’s fourth largest Information Technology company, on Wednesday after admitting to the Board of Directors that accounts were fudged to the tune of Rs. 7,106 crore over “several years.” His brother, B. Rama Raju, also resigned as Managing Director and Chief Executive Officer (CEO).
Before stepping down, Mr. Ramalinga Raju recommended that Ram Mynampati, board member and president, be made interim CEO, to run the show.
The 53-year-old business tycoon quit ahead of a crucial meeting of the board on January 10. The resignation climaxed a turbulent period of three weeks when the company was plunged into a crisis following an aborted attempt to acquire Maytas Infra and Maytas Properties, promoted by Mr. Raju’s sons, on December 16.
Markets reacted virulently to Mr. Raju’s admission of hiding several facts from the board and the stakeholders. Satyam’s stock nosedived on the Bombay Stock Exchange to an all-time low of Rs. 39.95, losing 77.69 per cent, though it opened at Rs. 188.70. Securities and Exchange Board of India (SEBI) Chairman C.P. Bhave described Mr. Raju’s disclosure as an event of “horrifying magnitude.”
In his five-page letter to the directors, Mr. Raju confessed that the company’s balance sheet inflated cash and bank balances of Rs. 5,040 crore which never existed and an accrued interest of Rs. 376 crore which was also non-existent. Also, a liability of Rs. 1,230 crore was understated and the debtor position of Rs. 490 crore “overstated.”
The Satyam chief said: “The gap in the balance sheet has arisen purely on account of inflated profits over a period of last several years.” Every attempt made to eliminate the gap failed, he said and apologised to all “Satyamites and stakeholders.”
Clean chit to executives
Barring Chief Financial Officer Srinivas Vadlamani, Mr. Raju gave a “clean chit” to the top executives, board members and also his and his brother’s families. “Neither me, nor the Managing Director took even one rupee/dollar from the company and have not benefited in financial terms on account of the inflated results,” he said.
Meanwhile, SEBI was in touch with the Ministry of Corporate Affairs to take all necessary steps against the 21-year-old company, which employs 53,000 and has operations in 65 countries serving 185 Fortune 500 companies. Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy ordered a preliminary inquiry by the CID into whether the State government could initiate any criminal action.
Dr. Y.S.R.Reddy wrote to Prime Minister Manmohan Singh, urging him to constitute a management team comprising Azim Premji of Wipro, N.R. Narayana Murthy of Infosys and S. Ramadorai of TCS to manage the affairs of Satyam to restore the confidence of the global customers so that the interests of employees and other stakeholders were protected. This arrangement could be in place until a credible alternative management was put in place.
DSP Merrill Lynch terminated its engagement with the company soon after Mr. Raju announced his resignation.
Mr. Raju said he would continue in his position “only till such time the current board is expanded.”
A PTI report said Mr. Raju is believed to have left for the U.S. in connection with a court case against Upaid
Sending shockwaves: B. Ramalinga Raju, who resigned as Chairman, Satyam Computers, after admitting that the company accounts were fudged. At right, investors at the Bombay Stock Exchange react as the Sensex plunged on Wednesday.
HYDERABAD: Byrraju Ramalinga Raju resigned as chairman of Satyam Computers, India’s fourth largest Information Technology company, on Wednesday after admitting to the Board of Directors that accounts were fudged to the tune of Rs. 7,106 crore over “several years.” His brother, B. Rama Raju, also resigned as Managing Director and Chief Executive Officer (CEO).
Before stepping down, Mr. Ramalinga Raju recommended that Ram Mynampati, board member and president, be made interim CEO, to run the show.
The 53-year-old business tycoon quit ahead of a crucial meeting of the board on January 10. The resignation climaxed a turbulent period of three weeks when the company was plunged into a crisis following an aborted attempt to acquire Maytas Infra and Maytas Properties, promoted by Mr. Raju’s sons, on December 16.
Markets reacted virulently to Mr. Raju’s admission of hiding several facts from the board and the stakeholders. Satyam’s stock nosedived on the Bombay Stock Exchange to an all-time low of Rs. 39.95, losing 77.69 per cent, though it opened at Rs. 188.70. Securities and Exchange Board of India (SEBI) Chairman C.P. Bhave described Mr. Raju’s disclosure as an event of “horrifying magnitude.”
In his five-page letter to the directors, Mr. Raju confessed that the company’s balance sheet inflated cash and bank balances of Rs. 5,040 crore which never existed and an accrued interest of Rs. 376 crore which was also non-existent. Also, a liability of Rs. 1,230 crore was understated and the debtor position of Rs. 490 crore “overstated.”
The Satyam chief said: “The gap in the balance sheet has arisen purely on account of inflated profits over a period of last several years.” Every attempt made to eliminate the gap failed, he said and apologised to all “Satyamites and stakeholders.”
Clean chit to executives
Barring Chief Financial Officer Srinivas Vadlamani, Mr. Raju gave a “clean chit” to the top executives, board members and also his and his brother’s families. “Neither me, nor the Managing Director took even one rupee/dollar from the company and have not benefited in financial terms on account of the inflated results,” he said.
Meanwhile, SEBI was in touch with the Ministry of Corporate Affairs to take all necessary steps against the 21-year-old company, which employs 53,000 and has operations in 65 countries serving 185 Fortune 500 companies. Andhra Pradesh Chief Minister Y.S. Rajasekhara Reddy ordered a preliminary inquiry by the CID into whether the State government could initiate any criminal action.
Dr. Y.S.R.Reddy wrote to Prime Minister Manmohan Singh, urging him to constitute a management team comprising Azim Premji of Wipro, N.R. Narayana Murthy of Infosys and S. Ramadorai of TCS to manage the affairs of Satyam to restore the confidence of the global customers so that the interests of employees and other stakeholders were protected. This arrangement could be in place until a credible alternative management was put in place.
DSP Merrill Lynch terminated its engagement with the company soon after Mr. Raju announced his resignation.
Mr. Raju said he would continue in his position “only till such time the current board is expanded.”
A PTI report said Mr. Raju is believed to have left for the U.S. in connection with a court case against Upaid
Tuesday, January 6, 2009
BGR Energy Fund raising for Working Capital
BGR Energy Systems soared 9.01% to Rs 179.95 at 15:12 IST after the company raised Rs 2,105 crore of loans from banks working capital requirements for a power project at Tamil Nadu.
The stock had risen 2.61% to Rs 164.90 yesterday, 5 January 2009, when the company made the announcement during trading.
The stock hit a high of Rs 182.50 and a low of Rs 165 so far during the day. The stock had a 52-week high of Rs 913 on 7 January 2008 and a 52-week low of Rs 115 on 2 December 2008.
The mid-cap equipment supplier has an equity capital of Rs 72 crore. Face value per share is Rs 10.
The current price of Rs 179.95 discounts its Q2 September 2008 annualised EPS of Rs 13.16, by a PE multiple of 13.67.
BGR Energy had, in June 2008, bagged a engineering, procurement and construction (EPC) contract worth Rs 3100 crore for a thermal power project of Tamil Nadu Electricity Board (TNEB). The company in a stock exchange filing in December 2008, had said that it estimated its fund-based and non-fund based working capital facilities at Rs 2,105 crore for the project and had mandated SBI Capital Markets to arrange the financial facilities.
Under the credit line agreement entered into by the company with the five banks, State Bank of India (SBI) would provide BGR Energy with Rs 525 crore. Besides, the company would receive Rs 580 crore from Indian Overseas Bank, Rs 500 crore from State Bank of Patiala and Rs 250 crore each from Punjab National Bank and Vijaya Bank.
BGR Energy Systems net profit rose 47.8% to Rs 23.69 crore on a 36.5rise in sales to Rs 424.57 crore in Q2 September 2008 over Q2 September 2007.
BGR Energy Systems is a supplier of systems and equipment for the power, oil and gas, petrochemical and process industries.
The stock had risen 2.61% to Rs 164.90 yesterday, 5 January 2009, when the company made the announcement during trading.
The stock hit a high of Rs 182.50 and a low of Rs 165 so far during the day. The stock had a 52-week high of Rs 913 on 7 January 2008 and a 52-week low of Rs 115 on 2 December 2008.
The mid-cap equipment supplier has an equity capital of Rs 72 crore. Face value per share is Rs 10.
The current price of Rs 179.95 discounts its Q2 September 2008 annualised EPS of Rs 13.16, by a PE multiple of 13.67.
BGR Energy had, in June 2008, bagged a engineering, procurement and construction (EPC) contract worth Rs 3100 crore for a thermal power project of Tamil Nadu Electricity Board (TNEB). The company in a stock exchange filing in December 2008, had said that it estimated its fund-based and non-fund based working capital facilities at Rs 2,105 crore for the project and had mandated SBI Capital Markets to arrange the financial facilities.
Under the credit line agreement entered into by the company with the five banks, State Bank of India (SBI) would provide BGR Energy with Rs 525 crore. Besides, the company would receive Rs 580 crore from Indian Overseas Bank, Rs 500 crore from State Bank of Patiala and Rs 250 crore each from Punjab National Bank and Vijaya Bank.
BGR Energy Systems net profit rose 47.8% to Rs 23.69 crore on a 36.5rise in sales to Rs 424.57 crore in Q2 September 2008 over Q2 September 2007.
BGR Energy Systems is a supplier of systems and equipment for the power, oil and gas, petrochemical and process industries.
Bharati Shipyard Smooth sailing
Bharati Shipyard galloped 5.16% to Rs 84.55 at 14:29 IST after the founder of Great Offshore pledged another 8 lakh shares, or 2.15% stake to Advitiya Urja, a wholly-owned subsidiary of Bharati Shipyard.
Great Offshore was trading down 1.86% at Rs 273.70 on BSE.
The stock hit a high of Rs 88.40 and a low of Rs 81 so far during the day. The stock had a 52-week high of Rs 864.65 on 8 January 2008 and a 52-week low of Rs 59 on 3 December 2008.
The smal-cap ship building firm has an equity capital of Rs 27.57 crore. Face value per share is Rs 10.
The current price of Rs 84.55 discounts its Q2 September 2008 annualised EPS of Rs 48.11, by a PE multiple of 1.75.
The above transaction takes the total amount of Great Offshore promoter's shares pledged with Bharati to 14.87%, a tad short of the 15% threshold where the company will have to make an open offer for another 20% stake. Great Offshore's promoter's had earlier pledged 30.23 lakh shares (8.14%) with Vishudh Urja, another wholly-owned subsidiary of Bharati Shipyard, and 17.03 lakh shares (4.58%) with Advitiya Urja on 3 December 2008, according to notices issued to the stock exchanges.
P C Kapoor, managing director of Bharati Shipyard was quoted by a section of the media as saying that an open offer cannot be ruled out in case Great Offshore promoters are unable to repay Bharati. Great Offshore, the offshore oil services firm, is the largest customer of Bharati. The shipyard is executing two orders worth Rs 1200 crore for it which includes building a jack-up rig and a multi-platform supply vessel.
So far, Bharati has lent close to Rs 200 crore to Great Offshore, report suggested, adding Bharati will be ready to extend any further loan if needed.
Great Offshore's promoter Vijay K Sheth currently holds 15.7% in the firm. Sheth has pledged shares with Bharati in order to take a loan to repay other lenders and avert a margin call.
Sheth had placed a significant portion of his stake in Great Offshore with Infrastructure Leasing & Financial Services and brokerage Motilal Oswal when acquiring the company from Great Eastern Shipping in April 2005.
The lenders started exerting pressure after Great Offshore's shares dropped over 79% between January and December 2008. Great Offshore's share price, which ended at Rs 278.90 on Monday, 5 January 2009, is down 75.74% from its January 2008 high of Rs 1,149.95.
Bharati Shipyard's net profit rose 28.8% to Rs 33.16 crore on a 46.1% rise in sales to Rs 235.42 crore in Q2 September 2008 over Q2 September 2007.
Bharati Shipyard designs and constructs sea going, coastal, harbor and inland crafts and vessels. Its product-range has been upgraded from the simple inland cargo barges, deep-sea trawlers, dredgers, maneuverable and power-packed ocean-going tractor tugs, cargo-ships, tankers and vessels with applications in the offshore industry.
Great Offshore was trading down 1.86% at Rs 273.70 on BSE.
The stock hit a high of Rs 88.40 and a low of Rs 81 so far during the day. The stock had a 52-week high of Rs 864.65 on 8 January 2008 and a 52-week low of Rs 59 on 3 December 2008.
The smal-cap ship building firm has an equity capital of Rs 27.57 crore. Face value per share is Rs 10.
The current price of Rs 84.55 discounts its Q2 September 2008 annualised EPS of Rs 48.11, by a PE multiple of 1.75.
The above transaction takes the total amount of Great Offshore promoter's shares pledged with Bharati to 14.87%, a tad short of the 15% threshold where the company will have to make an open offer for another 20% stake. Great Offshore's promoter's had earlier pledged 30.23 lakh shares (8.14%) with Vishudh Urja, another wholly-owned subsidiary of Bharati Shipyard, and 17.03 lakh shares (4.58%) with Advitiya Urja on 3 December 2008, according to notices issued to the stock exchanges.
P C Kapoor, managing director of Bharati Shipyard was quoted by a section of the media as saying that an open offer cannot be ruled out in case Great Offshore promoters are unable to repay Bharati. Great Offshore, the offshore oil services firm, is the largest customer of Bharati. The shipyard is executing two orders worth Rs 1200 crore for it which includes building a jack-up rig and a multi-platform supply vessel.
So far, Bharati has lent close to Rs 200 crore to Great Offshore, report suggested, adding Bharati will be ready to extend any further loan if needed.
Great Offshore's promoter Vijay K Sheth currently holds 15.7% in the firm. Sheth has pledged shares with Bharati in order to take a loan to repay other lenders and avert a margin call.
Sheth had placed a significant portion of his stake in Great Offshore with Infrastructure Leasing & Financial Services and brokerage Motilal Oswal when acquiring the company from Great Eastern Shipping in April 2005.
The lenders started exerting pressure after Great Offshore's shares dropped over 79% between January and December 2008. Great Offshore's share price, which ended at Rs 278.90 on Monday, 5 January 2009, is down 75.74% from its January 2008 high of Rs 1,149.95.
Bharati Shipyard's net profit rose 28.8% to Rs 33.16 crore on a 46.1% rise in sales to Rs 235.42 crore in Q2 September 2008 over Q2 September 2007.
Bharati Shipyard designs and constructs sea going, coastal, harbor and inland crafts and vessels. Its product-range has been upgraded from the simple inland cargo barges, deep-sea trawlers, dredgers, maneuverable and power-packed ocean-going tractor tugs, cargo-ships, tankers and vessels with applications in the offshore industry.
Aurobindo Pharma gets nod from Canada for a generic drug
Aurobindo Pharma gained 1.01% to Rs 175.25 at 12:24 IST on BSE, having recovered from the session's low of Rs 167.05, on getting nod from the Canadian regulatory authority to sell its gabapentin capsules in multiple strengths in that country.
The drug is the generic version of Pfizer's Neurotin capusules used for treating seizures in patients diagnosed with epilepsy.
The company announced the approval during trading hours today, 6 January 2009.
The stock hit a high of Rs 175.85 and a low of Rs 167.05 so far during the day. The stock hit a 52-week high of Rs 533 on 8 January 2008 and a 52-week low of Rs 101.60 on 6 November 2008.
The company's current equity is Rs 26.88 crore. Face value per share is Rs 5.
Aurobindo Pharma had on 31 December 2008 received final approval from US Food & Drug Administration (US FDA) to manufacture and market Stavudine Capsules in multiple strengths and Stavudine solution in 1 miligram strength. The drug is the generic version of Bristol Myers Squibb's Zerit Capsules and solution. Stavudine can be used in combination with other antiretroviral agents for the treatment of human immunodeficiency virus (HIV)-1 infection.
Aurobindo Pharma had on 24 December 2008 received Canadian regulatory approval to sell terbinafine hydrochloride tablets in multiple strengths.
Aurobindo Pharma reported a net loss of Rs 38.50 crore in Q2 September 2008 as compared to net profit of Rs 100.92 crore in Q2 September 2007. Net sales rose 2.1% to Rs 624.68 crore in Q2 September 2008 over Q2 September 2007.
Aurobindo Pharma is engaged in developing, manufacturing and marketing active pharmaceutical ingredients, intermediates and generic formulations.
The drug is the generic version of Pfizer's Neurotin capusules used for treating seizures in patients diagnosed with epilepsy.
The company announced the approval during trading hours today, 6 January 2009.
The stock hit a high of Rs 175.85 and a low of Rs 167.05 so far during the day. The stock hit a 52-week high of Rs 533 on 8 January 2008 and a 52-week low of Rs 101.60 on 6 November 2008.
The company's current equity is Rs 26.88 crore. Face value per share is Rs 5.
Aurobindo Pharma had on 31 December 2008 received final approval from US Food & Drug Administration (US FDA) to manufacture and market Stavudine Capsules in multiple strengths and Stavudine solution in 1 miligram strength. The drug is the generic version of Bristol Myers Squibb's Zerit Capsules and solution. Stavudine can be used in combination with other antiretroviral agents for the treatment of human immunodeficiency virus (HIV)-1 infection.
Aurobindo Pharma had on 24 December 2008 received Canadian regulatory approval to sell terbinafine hydrochloride tablets in multiple strengths.
Aurobindo Pharma reported a net loss of Rs 38.50 crore in Q2 September 2008 as compared to net profit of Rs 100.92 crore in Q2 September 2007. Net sales rose 2.1% to Rs 624.68 crore in Q2 September 2008 over Q2 September 2007.
Aurobindo Pharma is engaged in developing, manufacturing and marketing active pharmaceutical ingredients, intermediates and generic formulations.
Sensex recovers towards close, nifty in red
The Sensex ended the day with a gain of 60.33 points, or 0.59% at 10,335.93 after touching a high of 10,392.12 and a low of 10,150.68. The broad-based NSE Nifty declined 8.65 points, or 0.28% at 3,112.80 after hitting a high of 3,141.80 and a low of 3,056.10.
Major gainers in the 30-share index were Grasim Industries (8.37%), ACC (7.67%), Jaiprakash Associates (7.34%), Satyam Computer Services (7.31%), Mahindra & Mahindra (7.23%), and HDFC Bank (5.53%).
On the other hand, Reliance Communications (5.65%), DLF (5.41%), Bharti Airtel (4.17%), Tata Power Company (3.07%), Reliance Energy (2.79%), and State Bank Of India (2.72%) were the biggest losers in the Sensex.
Major gainers in the 30-share index were Grasim Industries (8.37%), ACC (7.67%), Jaiprakash Associates (7.34%), Satyam Computer Services (7.31%), Mahindra & Mahindra (7.23%), and HDFC Bank (5.53%).
On the other hand, Reliance Communications (5.65%), DLF (5.41%), Bharti Airtel (4.17%), Tata Power Company (3.07%), Reliance Energy (2.79%), and State Bank Of India (2.72%) were the biggest losers in the Sensex.
Sunday, January 4, 2009
MARKETS may not Cheer with 2nd Stimulus pack!!!
Analists view: Markets may not get josh with this Latest Stimulus pack. Hardly the sentiment may last 1-2 days.
Transgene Biotek gets nod for manufacturing four Nwe drugs.
Transgene Biotek was locked at 5% at Rs 20.35 at 13:33 IST on BSE,on 2nd Jan'09,Friday on receiving regulatory nod for manufacturing four drugs.
The company made this announcement during trading hours today, 2 January 2009.
Meanwhile, the BSE Sensex was up 82.26 points, or 0.83%, to 9,985.72.
On BSE, 1,250 shares were traded in the counter. The stock had an average daily volume of 11,638 shares in the past one quarter.
The stock hit a high of Rs 20.35 and a low of Rs 20.35 so far during the day. The stock hit a 52-week high of Rs 115.60 on 8 January 2008 and a 52-week low of Rs 14.55 on 3 November 2008.
The company's current equity is Rs 15.77 crore. Face value per share is Rs 10.
The current price of Rs 20.35 discounts the company's Q2 September 2008 annualized EPS of Rs 0.24, by a PE multiple of 84.79.
The company has received manufacturing license from Drug Control Department of Hyderabad for manufacturing four drugs Orlistat, Lovastatin, Simvastatin and Pravastatin. These drugs are used to control cholesterol in blood.
Transgene Biotek's net profit fell 75% to Rs 0.09 crore on 2.3% increase in net sales to Rs 0.89 crore in Q2 September 2008 over Q2 September 2007.
The company is engaged in the research and development and manufacture of various medical reagents, both chemical and immuno-diagnostic reagents for the qualitative and quantitative estimation of bio-chemical parameters and diagnosis of diseases.
The company made this announcement during trading hours today, 2 January 2009.
Meanwhile, the BSE Sensex was up 82.26 points, or 0.83%, to 9,985.72.
On BSE, 1,250 shares were traded in the counter. The stock had an average daily volume of 11,638 shares in the past one quarter.
The stock hit a high of Rs 20.35 and a low of Rs 20.35 so far during the day. The stock hit a 52-week high of Rs 115.60 on 8 January 2008 and a 52-week low of Rs 14.55 on 3 November 2008.
The company's current equity is Rs 15.77 crore. Face value per share is Rs 10.
The current price of Rs 20.35 discounts the company's Q2 September 2008 annualized EPS of Rs 0.24, by a PE multiple of 84.79.
The company has received manufacturing license from Drug Control Department of Hyderabad for manufacturing four drugs Orlistat, Lovastatin, Simvastatin and Pravastatin. These drugs are used to control cholesterol in blood.
Transgene Biotek's net profit fell 75% to Rs 0.09 crore on 2.3% increase in net sales to Rs 0.89 crore in Q2 September 2008 over Q2 September 2007.
The company is engaged in the research and development and manufacture of various medical reagents, both chemical and immuno-diagnostic reagents for the qualitative and quantitative estimation of bio-chemical parameters and diagnosis of diseases.
Wednesday, December 31, 2008
Monday, December 29, 2008
Satyam Computer's two more independent directors resign
Satyam Computer Services pared gains and was now up 9.96% at Rs 149 at 15:21 IST,on 29th Dec'08, after the company said two more independent directors have resigned.
A sharp slide in the stock was witnessed after the announcement which hit the market in mid-afternoon trade. Just before the announcement, the stock had jumped 17.78% to Rs 159.60 on hopes of a better corporate governance after the Indian outsourcer said it would consider more options to improve shareholder value and business practices, including strengthening corporate governance.
The stock had hit a 52-week high of Rs 544 on 30 May 2008 and a 52-week low of Rs 114.65 on 24 December 2008.
India's fourth largest software exporter by sales has an equity capital of Rs 134.77 crore. Face value per share is Rs 2.
The current price of Rs 149 discounts its Q2 September 2008 annualised EPS of Rs 35.48, by a PE multiple of 4.19.
Satyam said in a statement to the exchanges Krishna Palepu and Vinod Dham had resigned from the company's board effective Sunday, (28 December 2008). The outsourcer did not give any reason for the resignations. On Friday, 26 December 2008, Satyam had announced the resignation of independent director Mangalam Srinivasan.
Meanwhile, Satyam said before trading hours today, 29 December 2008, it has postponed a board meeting set for Monday, 29 December 2008 to 10 January 2009 to mull options beyond just a possible share buyback. The board had been expected to consider a share buyback, after news last week that the outsourcer had been barred from doing business with the World Bank added to its woes.
Earlier in the day, a newspaper report quoted Dham as saying the 10 January 2009 board meeting would discuss a change in management, including a possible exit of Satyam's chairman and founder B Ramalinga Raju. It would also discuss appointing a chief executive or even a sale to another entity, the report said.
The company said in a statement its board would consider moves to strengthen the firm's governance structure, including increasing the size and altering the composition of the board. It also said it had hired DSP Merrill Lynch to review the company's 'strategic options' to enhance shareholder value, but did not give further details.
The meeting would also address issues arising from a possible dilution of the founder's stake in the company. The company said it has received a communication from the promoters that all their shares in the company held by SRSR Holdings were pledged with institutional lenders since September 2006 and is is possible that some of the lenders may exercise or may have already exercised their option to liquidate such quantum of shares at their discretion to cover the margin shortfall. This would consequently dilute the promoters' holding in the company.
Raju and his family hold 8.61% stake in Satyam mainly through SRSR Holdings, a family owned investment company. SRSR has 8.27% stake in Satyam (as on 30 September 2008)
Satyam Computers during trading hours on 18 December 2008 had said its board will meet on 29 December 2008 to consider buyback of shares. The announcement was aimed at soothing investor nerves after the Satyam stock slumped 30.22% on 17 December 2008. Investors had chucked the stock following the company's announcement after market hours on 16 December 2008 of a $1.6 billion deal to acquire Maytas Properties and Maytas Infrastructure, companies run by Raju's sons B Rama Raju and Teja Raju.
Satyam scrapped a $1.6 billion acquisition of companies connected to its chairman after the plan angered investors. The company's total disregard for corporate governance and shareholders was shocking - Satyam had no plan to take the proposal to minority shareholders.
The World Bank said last week Satyam had been declared ineligible for direct contracts with it for eight years "for providing improper benefits to Bank staff and for failing to maintain documentation to support fees charged for its subcontractors". Satyam has asked the authority to withdraw what it called "inappropriate" statements and to issue an apology, but the World Bank in Washington has said it stood by its statement. Media reports had earlier said that data theft was one of the reasons why the World Bank had barred Satyam from doing business with it for eight years.
The World Bank, which had signed a $100-million billing per annum contract, had been an important client for Satyam. Since 2003, Satyam had been writing and maintaining all software for World Bank across all locations. This also included maintenance of software in back-end offices.
Satyam Computer Services' net profit rose 3.70% to Rs 597.43 crore on 6.87% increase in net sales to Rs 2700.52 crore in Q2 September 2008 over Q1 June 2008.
Satyam Computer Services is a global business and information technology services company. It delivers consulting, systems integration and outsourcing solutions to clients.
A sharp slide in the stock was witnessed after the announcement which hit the market in mid-afternoon trade. Just before the announcement, the stock had jumped 17.78% to Rs 159.60 on hopes of a better corporate governance after the Indian outsourcer said it would consider more options to improve shareholder value and business practices, including strengthening corporate governance.
The stock had hit a 52-week high of Rs 544 on 30 May 2008 and a 52-week low of Rs 114.65 on 24 December 2008.
India's fourth largest software exporter by sales has an equity capital of Rs 134.77 crore. Face value per share is Rs 2.
The current price of Rs 149 discounts its Q2 September 2008 annualised EPS of Rs 35.48, by a PE multiple of 4.19.
Satyam said in a statement to the exchanges Krishna Palepu and Vinod Dham had resigned from the company's board effective Sunday, (28 December 2008). The outsourcer did not give any reason for the resignations. On Friday, 26 December 2008, Satyam had announced the resignation of independent director Mangalam Srinivasan.
Meanwhile, Satyam said before trading hours today, 29 December 2008, it has postponed a board meeting set for Monday, 29 December 2008 to 10 January 2009 to mull options beyond just a possible share buyback. The board had been expected to consider a share buyback, after news last week that the outsourcer had been barred from doing business with the World Bank added to its woes.
Earlier in the day, a newspaper report quoted Dham as saying the 10 January 2009 board meeting would discuss a change in management, including a possible exit of Satyam's chairman and founder B Ramalinga Raju. It would also discuss appointing a chief executive or even a sale to another entity, the report said.
The company said in a statement its board would consider moves to strengthen the firm's governance structure, including increasing the size and altering the composition of the board. It also said it had hired DSP Merrill Lynch to review the company's 'strategic options' to enhance shareholder value, but did not give further details.
The meeting would also address issues arising from a possible dilution of the founder's stake in the company. The company said it has received a communication from the promoters that all their shares in the company held by SRSR Holdings were pledged with institutional lenders since September 2006 and is is possible that some of the lenders may exercise or may have already exercised their option to liquidate such quantum of shares at their discretion to cover the margin shortfall. This would consequently dilute the promoters' holding in the company.
Raju and his family hold 8.61% stake in Satyam mainly through SRSR Holdings, a family owned investment company. SRSR has 8.27% stake in Satyam (as on 30 September 2008)
Satyam Computers during trading hours on 18 December 2008 had said its board will meet on 29 December 2008 to consider buyback of shares. The announcement was aimed at soothing investor nerves after the Satyam stock slumped 30.22% on 17 December 2008. Investors had chucked the stock following the company's announcement after market hours on 16 December 2008 of a $1.6 billion deal to acquire Maytas Properties and Maytas Infrastructure, companies run by Raju's sons B Rama Raju and Teja Raju.
Satyam scrapped a $1.6 billion acquisition of companies connected to its chairman after the plan angered investors. The company's total disregard for corporate governance and shareholders was shocking - Satyam had no plan to take the proposal to minority shareholders.
The World Bank said last week Satyam had been declared ineligible for direct contracts with it for eight years "for providing improper benefits to Bank staff and for failing to maintain documentation to support fees charged for its subcontractors". Satyam has asked the authority to withdraw what it called "inappropriate" statements and to issue an apology, but the World Bank in Washington has said it stood by its statement. Media reports had earlier said that data theft was one of the reasons why the World Bank had barred Satyam from doing business with it for eight years.
The World Bank, which had signed a $100-million billing per annum contract, had been an important client for Satyam. Since 2003, Satyam had been writing and maintaining all software for World Bank across all locations. This also included maintenance of software in back-end offices.
Satyam Computer Services' net profit rose 3.70% to Rs 597.43 crore on 6.87% increase in net sales to Rs 2700.52 crore in Q2 September 2008 over Q1 June 2008.
Satyam Computer Services is a global business and information technology services company. It delivers consulting, systems integration and outsourcing solutions to clients.
Cholamandalam DBS Finance issuing preference shares to promoters.
Cholamandalam DBS Finance rose 1.83% to Rs 41.70 on 29th Dec'08, extending gains for the second trading session in a row on its plan to raise Rs 300 crore by issuing preference shares to promoters.
The stock had jumped 9.93% to Rs 40.95 on Friday, 26 December 2008, when the company made the announcement during market hours
The stock hit a high of Rs 42.80 and a low of Rs 41 so far during the day. The stock had touched a 52-week high of Rs 389.50 on 2 January 2008 and a 52-week low of Rs 27 on 25 November 2008.
The stock is up 11.94% from a recent low of Rs 37.25 on 24 December 2008.
The small-cap financial services provider has an equity capital of Rs 37.95 crore. Face value per share is Rs 10.
The company will issue one crore fully convertible preference shares at Rs 100 each at a premium of Rs 200 to promoters. The shares will be convertible into equity within 18 months. However, the conversion ratio was not disclosed.
Promoters held 74.96% stake in the company as at end September 2008
The company posted net loss of Rs 10.50 crore in Q2 September 2008 as compared to net loss of Rs 18.02 crore in Q2 September 2007. Operating income rose 31% rise to Rs 280.48 crore in Q2 September 2008 over Q2 September 2007.
Cholamandalam DBS Finance, a non-banking financial company, is a joint venture between Murugappa Group and DBS Bank of Singapore. It offers personal loans, vehicle finance, corporate finance, capital market finance and home equity loans.
The stock had jumped 9.93% to Rs 40.95 on Friday, 26 December 2008, when the company made the announcement during market hours
The stock hit a high of Rs 42.80 and a low of Rs 41 so far during the day. The stock had touched a 52-week high of Rs 389.50 on 2 January 2008 and a 52-week low of Rs 27 on 25 November 2008.
The stock is up 11.94% from a recent low of Rs 37.25 on 24 December 2008.
The small-cap financial services provider has an equity capital of Rs 37.95 crore. Face value per share is Rs 10.
The company will issue one crore fully convertible preference shares at Rs 100 each at a premium of Rs 200 to promoters. The shares will be convertible into equity within 18 months. However, the conversion ratio was not disclosed.
Promoters held 74.96% stake in the company as at end September 2008
The company posted net loss of Rs 10.50 crore in Q2 September 2008 as compared to net loss of Rs 18.02 crore in Q2 September 2007. Operating income rose 31% rise to Rs 280.48 crore in Q2 September 2008 over Q2 September 2007.
Cholamandalam DBS Finance, a non-banking financial company, is a joint venture between Murugappa Group and DBS Bank of Singapore. It offers personal loans, vehicle finance, corporate finance, capital market finance and home equity loans.
Hindustan Zinc hardens on raising zinc prices
Hindustan Zinc jumped 4.22% to Rs 341.50 on 29th Dec'08, after the company hiked zinc prices by nearly 3%.
The price revision is effective from Thursday, 25 December 2008, a company circular said.
The stock hit a high of Rs 344.40 and a low of Rs 334.50 so far during the day. The stock had a 52-week high of Rs 842.95 on 2 January 2008 and a 52-week low of Rs 215 on 27 October 2008.
India's largest zinc producer by volumes has an equity capital of Rs 422.53 crore. Face value per share is Rs 10.
The current price of Rs 341.50 discounts its Q2 September 2008 annualised EPS of Rs 90.83, by a PE multiple of 3.75.
Hindustan Zinc on Friday, 26 December 2008, said it has hiked the prices of zinc, used in producing galvanised steel, by Rs 1,800 or 2.9% to Rs 63,400 a tonne. The company, however, kept the lead rates, used in batteries, rubber and paint industries, at previous week's level of Rs 70,500 per tonne.
Hindustan Zinc revises rates of its products mostly twice a weak following the price movement at the London Metal Exchange.
Hindustan Zinc's net profit declined 17.9% to Rs 959.51 crore on a 12.1% fall in sales to Rs 1743.84 crore in Q2 September 2008 over Q2 September 2007.
Hindustan Zinc specializes in the exploration, mining and smelting of zinc, lead and other non-ferrous metals. The company's products include zinc ore, lead zinc concentrate, zinc metal, lead metal, cadmium metal, silver metal and sulfuric acid.
The price revision is effective from Thursday, 25 December 2008, a company circular said.
The stock hit a high of Rs 344.40 and a low of Rs 334.50 so far during the day. The stock had a 52-week high of Rs 842.95 on 2 January 2008 and a 52-week low of Rs 215 on 27 October 2008.
India's largest zinc producer by volumes has an equity capital of Rs 422.53 crore. Face value per share is Rs 10.
The current price of Rs 341.50 discounts its Q2 September 2008 annualised EPS of Rs 90.83, by a PE multiple of 3.75.
Hindustan Zinc on Friday, 26 December 2008, said it has hiked the prices of zinc, used in producing galvanised steel, by Rs 1,800 or 2.9% to Rs 63,400 a tonne. The company, however, kept the lead rates, used in batteries, rubber and paint industries, at previous week's level of Rs 70,500 per tonne.
Hindustan Zinc revises rates of its products mostly twice a weak following the price movement at the London Metal Exchange.
Hindustan Zinc's net profit declined 17.9% to Rs 959.51 crore on a 12.1% fall in sales to Rs 1743.84 crore in Q2 September 2008 over Q2 September 2007.
Hindustan Zinc specializes in the exploration, mining and smelting of zinc, lead and other non-ferrous metals. The company's products include zinc ore, lead zinc concentrate, zinc metal, lead metal, cadmium metal, silver metal and sulfuric acid.
Core Projects & Technologies jumps on US buy
Core Projects & Technologies rose 3.25% to Rs 46.10 on 29th Dec'08, after the company acquired a US-based company for $20 million.
The stock hit a high of Rs 47 and a low of Rs 45 so far during the day. The stock had a 52-week high of Rs 464.40 on 28 December 2007 and a 52-week low of Rs 34.10 on 27 October 2008.
The small-cap software-solutions provider has an equity capital of Rs 17.25 crore. Face value per share is Rs 2.
The current price of Rs 46.10 discounts its Q2 September 2008 annualised EPS of Rs 7.77, by a PE multiple of 5.93.
Core Projects & Technologies has acquired a unit of US-based education company, The Princeton Review. The acquired unit provides integrated education solutions.
The acquisition will add approximately $24 million to Core Projects' global revenues and is expected to yield an Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) of 24% in the full year of operations, Core Projects said in a statement to the stock exchanges. The acquisition will be funded through debt, the statement added.
Core Projects & Technologies' net profit rose 25.75% to Rs 16.75 crore on a 36.99% rise in sales to Rs 88.91 crore in Q2 September 2008 over Q1 June 2008.
Core Projects & Technologies provides information technology products and services. The company provides services including onsite and offsite consulting and knowledge management services, systems integration, global postioning system based vehicle tracking and detection systems, application support for their products, and offshore outsourcing.
The stock hit a high of Rs 47 and a low of Rs 45 so far during the day. The stock had a 52-week high of Rs 464.40 on 28 December 2007 and a 52-week low of Rs 34.10 on 27 October 2008.
The small-cap software-solutions provider has an equity capital of Rs 17.25 crore. Face value per share is Rs 2.
The current price of Rs 46.10 discounts its Q2 September 2008 annualised EPS of Rs 7.77, by a PE multiple of 5.93.
Core Projects & Technologies has acquired a unit of US-based education company, The Princeton Review. The acquired unit provides integrated education solutions.
The acquisition will add approximately $24 million to Core Projects' global revenues and is expected to yield an Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) of 24% in the full year of operations, Core Projects said in a statement to the stock exchanges. The acquisition will be funded through debt, the statement added.
Core Projects & Technologies' net profit rose 25.75% to Rs 16.75 crore on a 36.99% rise in sales to Rs 88.91 crore in Q2 September 2008 over Q1 June 2008.
Core Projects & Technologies provides information technology products and services. The company provides services including onsite and offsite consulting and knowledge management services, systems integration, global postioning system based vehicle tracking and detection systems, application support for their products, and offshore outsourcing.
Hindalco shines on expansion buzz
Hindalco Industries rose 0.93% to Rs 49 on 29th Dec'08, on BSE, on reports it would spend about Rs 25000 crore in next five years for expansion purpose.
The stock hit a high of Rs 49 and a low of Rs 48.55 so far during the day. The stock hit a 52-week high of Rs 200.65 on 7 January 2008 and a 52-week low of Rs 38.05 on 27 October 2008.
The company's current equity is Rs 175.32 crore. Face value per share is Rs 1.
The current price of Rs 49 discounts the company's Q2 September 2008 annualized EPS of Rs 23.47, by a PE multiple of 2.09.
As per reports, Hindalco may spend about Rs 25,000 crore over the next five years for expanding capacity by as much as three times in aluminium and copper.
Recently, Hindalco repaid the bridge loan taken to acquire Novelis. Hindalco raised $982 million in a five-year foreign currency loan at 315 basis points above the London interbank offered rate (Libor) and used it to clear the $3.03 billion bridge loan taken at 80 basis points over Libor for acquiring Canada's Novelis in 2007.
Hindalco Industries' net profit rose 12% to Rs 719.95 crore on 14.4% increase in net sales to Rs 5683.18 crore in Q2 September 2008 over Q2 September 2007.
Hindalco Industries is India's largest aluminium producer and is engaged in producing aluminium and semi- fabricated products.
The stock hit a high of Rs 49 and a low of Rs 48.55 so far during the day. The stock hit a 52-week high of Rs 200.65 on 7 January 2008 and a 52-week low of Rs 38.05 on 27 October 2008.
The company's current equity is Rs 175.32 crore. Face value per share is Rs 1.
The current price of Rs 49 discounts the company's Q2 September 2008 annualized EPS of Rs 23.47, by a PE multiple of 2.09.
As per reports, Hindalco may spend about Rs 25,000 crore over the next five years for expanding capacity by as much as three times in aluminium and copper.
Recently, Hindalco repaid the bridge loan taken to acquire Novelis. Hindalco raised $982 million in a five-year foreign currency loan at 315 basis points above the London interbank offered rate (Libor) and used it to clear the $3.03 billion bridge loan taken at 80 basis points over Libor for acquiring Canada's Novelis in 2007.
Hindalco Industries' net profit rose 12% to Rs 719.95 crore on 14.4% increase in net sales to Rs 5683.18 crore in Q2 September 2008 over Q2 September 2007.
Hindalco Industries is India's largest aluminium producer and is engaged in producing aluminium and semi- fabricated products.
Sunday, December 28, 2008
India may see deflation in next financial year: Bankers
28 Dec 2008, 1527 hrs IST, PTI
MUMBAI: Indian economy may go into deflation by the second quarter of financial year 2009-10 as there are fears of inflation going below zero percent in the face of unprecedented fall in crude and commodity prices.
"If the current pace in inflation-decline continues, the figure (in WPI-based inflation) may slide below two per cent by end-fiscal," HDFC Bank's Deputy Head of Treasury, Ashish Parthasarathy, said, adding "it may fall further to below zero per cent by Q2 FY10."
Inflation almost halved to a nine-month low of 6.61 per cent from this year's peak of 12.91 per cent, giving more space to the RBI to signal further cuts in interest rates.
Deflation occurs in an economy when the negative inflation prevails for a long period. In the event of deflation, the Reserve Bank will have to enhance money supply and lower rates further "to support inflation", IDBI Gilts' Economist, Amol Agarwal said.
Citibank India's Chief Financial Officer, Abhijit Sen, echoed this view saying that the rapid decline in the headline inflation is likely to continue in the coming months.
"In my view, deflation is a remote possibility in this economy. However, if the inflation continue to fall to much lower levels, this would have an impact on the profitability of banks, as it would affect the credit demand," Sen said.
The sharp decline in inflation has given a headroom for the Reserve Bank to slash its reverse repo rate by 0.5-1 per cent, he said.
A lower inflation rate has offered the opportunity to the Reserve Bank to explore further monetary policy options including a cut in the short term reverse repo rate," Sen said.
Wholesale prices-based inflation declined by 0.23 percentage points for the seventh consecutive time during the week-ended December 13 as manufactured goods and food items became cheaper due to the cascading effect of fuel price cuts amongst other factors.
"(The) declining inflation rate provides more leeway to the RBI to further slash interest rates . I expect a 100 basis points cut in both the repo (short-term lending rate) and reverse repo (short-term borrowing) rates," said Crisil's Principal Economist D K Joshi.
India's Reserve Bank had hiked its key policy rates several times till October to hold-off skyrocketting inflation rate that rose to a multi-year high of around 13 per cent early this year.
However, with inflation now on the decline, the Central Bank has shifted its focus from fighting inflation to supporting economic growth with a series of rate cuts.
It cut the Cash Reserve Ratio (CRR), the percentage of cash banks are required to park with the apex bank to 5.5 per cent from nine per cent and the repo and reverse repo rates to 6.5 per cent and five per cent respectively.
via:E.T
MUMBAI: Indian economy may go into deflation by the second quarter of financial year 2009-10 as there are fears of inflation going below zero percent in the face of unprecedented fall in crude and commodity prices.
"If the current pace in inflation-decline continues, the figure (in WPI-based inflation) may slide below two per cent by end-fiscal," HDFC Bank's Deputy Head of Treasury, Ashish Parthasarathy, said, adding "it may fall further to below zero per cent by Q2 FY10."
Inflation almost halved to a nine-month low of 6.61 per cent from this year's peak of 12.91 per cent, giving more space to the RBI to signal further cuts in interest rates.
Deflation occurs in an economy when the negative inflation prevails for a long period. In the event of deflation, the Reserve Bank will have to enhance money supply and lower rates further "to support inflation", IDBI Gilts' Economist, Amol Agarwal said.
Citibank India's Chief Financial Officer, Abhijit Sen, echoed this view saying that the rapid decline in the headline inflation is likely to continue in the coming months.
"In my view, deflation is a remote possibility in this economy. However, if the inflation continue to fall to much lower levels, this would have an impact on the profitability of banks, as it would affect the credit demand," Sen said.
The sharp decline in inflation has given a headroom for the Reserve Bank to slash its reverse repo rate by 0.5-1 per cent, he said.
A lower inflation rate has offered the opportunity to the Reserve Bank to explore further monetary policy options including a cut in the short term reverse repo rate," Sen said.
Wholesale prices-based inflation declined by 0.23 percentage points for the seventh consecutive time during the week-ended December 13 as manufactured goods and food items became cheaper due to the cascading effect of fuel price cuts amongst other factors.
"(The) declining inflation rate provides more leeway to the RBI to further slash interest rates . I expect a 100 basis points cut in both the repo (short-term lending rate) and reverse repo (short-term borrowing) rates," said Crisil's Principal Economist D K Joshi.
India's Reserve Bank had hiked its key policy rates several times till October to hold-off skyrocketting inflation rate that rose to a multi-year high of around 13 per cent early this year.
However, with inflation now on the decline, the Central Bank has shifted its focus from fighting inflation to supporting economic growth with a series of rate cuts.
It cut the Cash Reserve Ratio (CRR), the percentage of cash banks are required to park with the apex bank to 5.5 per cent from nine per cent and the repo and reverse repo rates to 6.5 per cent and five per cent respectively.
via:E.T
Global economy likely to be weakest in 2009
28 Dec 2008, 2103 hrs IST, PTI
LONDON: The year 2009 is likely to be the weakest year for the global economy
since the second world war, largely because of the recessionary trend in advanced economies, media reports says.
"Forecasters say 2009 is shaping up to be the weakest year for the global economy for decades, and possibly since the second world war," the Sunday Times said.
The International Monetary Fund (IMF), which has revised down its world forecasts twice since the summer, will shortly unveil new predictions that will show the global economy formally in recession, the report added.
According to Consensus Economics, on the basis of assessing economic growth using market exchange rates, global growth next year would be only 0.4 per cent, the weakest since 1945, dominated by the synchronised downturn in advanced economies.
The IMF has already said that 2009 would be the first year since the second world war when advanced countries would experience simultaneous recession, and emerging economies would contribute to the global economic growth.
Meanwhile, another British daily the Telegraph said, "HSBC has warned that global gross domestic product would contract in 2009, describing this as 'an extraordinary development in the modern era'. It predicts that next year will be the worst in peacetime both for rich countries and the wider global economy since the Great Depression."
HSBC is gloomy about Britain, and is predicting a 2.5 per cent drop in GDP in 2009, compared to 0.9 per cent in the US and 1.4 per cent in the Eurozone. The bank also predicts a rebound in world economic activity in 2010, led among advanced economies by America, the Sunday Times said.
However, HSBC predicts that "Britain will have a very subdued recovery."
In a separate report, the Sunday Times said that "this week the Oxford Economics consultancy is likely to disclose that the country (Britain) has suffered a sudden and savage slide down the global rankings".
According to Oxford Economics Managing Director Adrian Cooper, "The UK GDP per capita in 2009 will be 24 per cent lower than in America and will be over 15 per cent lower than in Japan, Germany and France."
As per Oxford Economics projections, worse is yet to come, because of the recession and the sliding pound". Cooper added, "Britons will no longer be among the richest people on the beach."
LONDON: The year 2009 is likely to be the weakest year for the global economy
since the second world war, largely because of the recessionary trend in advanced economies, media reports says.
"Forecasters say 2009 is shaping up to be the weakest year for the global economy for decades, and possibly since the second world war," the Sunday Times said.
The International Monetary Fund (IMF), which has revised down its world forecasts twice since the summer, will shortly unveil new predictions that will show the global economy formally in recession, the report added.
According to Consensus Economics, on the basis of assessing economic growth using market exchange rates, global growth next year would be only 0.4 per cent, the weakest since 1945, dominated by the synchronised downturn in advanced economies.
The IMF has already said that 2009 would be the first year since the second world war when advanced countries would experience simultaneous recession, and emerging economies would contribute to the global economic growth.
Meanwhile, another British daily the Telegraph said, "HSBC has warned that global gross domestic product would contract in 2009, describing this as 'an extraordinary development in the modern era'. It predicts that next year will be the worst in peacetime both for rich countries and the wider global economy since the Great Depression."
HSBC is gloomy about Britain, and is predicting a 2.5 per cent drop in GDP in 2009, compared to 0.9 per cent in the US and 1.4 per cent in the Eurozone. The bank also predicts a rebound in world economic activity in 2010, led among advanced economies by America, the Sunday Times said.
However, HSBC predicts that "Britain will have a very subdued recovery."
In a separate report, the Sunday Times said that "this week the Oxford Economics consultancy is likely to disclose that the country (Britain) has suffered a sudden and savage slide down the global rankings".
According to Oxford Economics Managing Director Adrian Cooper, "The UK GDP per capita in 2009 will be 24 per cent lower than in America and will be over 15 per cent lower than in Japan, Germany and France."
As per Oxford Economics projections, worse is yet to come, because of the recession and the sliding pound". Cooper added, "Britons will no longer be among the richest people on the beach."
IPI (Iran-Pak-Ind) gas pipeline fraught with dangers for India
28 Dec 2008, 1903 hrs IST, Swaminathan S Anklesaria Aiyar , TNN
The Iran -Pakistan-India (IPI) gas pipeline has been discussed for almost a decade, with its
proponents arguing that it will promote our energy security.
After 26/11, the project is dead. No Indian government can proceed with a deal that will give Pakistan a knife at India’s energy throat. Far from promoting our energy security, it would be a source of immense national insecurity.
Just suppose the pipeline was complete and functioning today. The pipeline contract would have required Pakistan to ensure the safety of supplies. But Baluch insurgents have been bowing up gas pipelines in Pakistan for ages, so Islamabad could easily connive in the blowing up of the India section of the pipeline, claiming it did not control non-state actors, and indeed is opposed to them.
Just as it did after 26/11, Pakistan could claim that it was itself a victim of sabotage, that India must not indulge in finger pointing, and that Islamabad would investigate the incident provided India provided enough evidence!
Wouldn’t a pipeline deal include insurance against disruption of gas supplies? Well, may be some brave global insurance company would come forward initially, but it would surely have charged premiums so hefty as to undercut the entire economic rationale of the pipeline, which was supposed to be cheaper than the alternative, which is supply through tankers carrying liqueified natural gas from Iran.
Besides, insurance contracts have “force majeure” clauses protecting the insurance company from liability in the event of war or civil conflict. So, the IPI pipeline would be an insecure project.
Why then have so many politicians and ideologues been canvassing the IPI pipeline with such vigour and passion? For two reasons. One, some naïve, optimistic politicians view India and Pakistan as natural partners separated by unwarranted mistrust, and they saw the pipeline as a way of building economic linkages, trust and friendship.
Second, the entire left saw the pipeline as a way of spitting in the face of the US, and asserting India’s independence in foreign policy.
The US opposed the pipeline on the ground that it would strengthen Iran’s economy and enable that country to escape some of the economic sanctions penalties that the US has sought to impose on it. When India went slow on the IPI pipeline after the Bush-Manmohan Singh agreement of 2005, the left was livid at what it saw it as a foreign policy surrender of a junior partner in an unequal relationship. So obsessed was the Left with the need to combat US imperialism that it failed to see the threat that the pipeline would strengthen Pakistan.
At the time, most analysts agreed that the risk of an Indo-Pak war was remote. In the absence of war, many analysts felt that Pakistan was unlikely to cut the pipeline, for commercial and foreign policy reasons.
This analysis ignored risks involved in conflict at levels lower. Both countries have become nuclear powers, so open warfare is virtually impossible. For that very reason, each country needs to focus on strategies and pressure points other than war, which can be used as bargaining counters or for covert retaliation.
So, the pipeline in its current form must be viewed as dead. Yet the fact remains that India will need massive gas imports in the future. Iran is not a reliable supplier—it reneged on an earlier low-cost LNG deal with India, so we must find alternative suppliers. Yet Iran is too big to be totally ignored.
So let’s consider a different sort of pipeline. This will be a shallow offshore pipeline taking gas from Iran to the maritime boundary between India and Pakistan off Kutch. At this point, the pipeline can divide into two, with one section going north to Pakistan and the other going west to Kutch.
Any sabotage of the main pipeline will hit Pakistan as badly as India, it will mean mutually assured destruction (MAD) of gas supply. The section going to each country from the maritime boundary will be in the territory of that country, under its own control.
In the Cold War, MAD was the basis of global security. By analogy, India and Pakistan need a MAD pipeline for security. Neither side will be able to hurt the other without hurting itself.
Economictimes Report
Saturday, December 27, 2008
SBI website falls victim to hackers
28 Dec 2008, 0625 hrs IST, ET Bureau
MUMBAI: An attempted attack caused a shutdown of State Bank of India’s (SBI) website on Saturday. “There has been an attempt to disrupt the system,” a senior official confirmed. But he refused to divulge any further details. While the bank’s internet banking
site www.onlinesbi.com was operational, its sites www.statebankofindia.com and www.sbi.co.in were down on Saturday.
Late evening, officials said that the bank was targeting to get its website operational by 9.00pm. Later the bank put up a message stating that site was under maintenance and directed online applicants to clerical positions to the Institute of Banking Personnel Selection site.
SBI is the country’s largest bank with over three million online customers. The number of people with access to internet banking has increased dramatically after SBI installed its core banking solutions in over 11,100 branches across the country. In the past too, government website have been attacked by hackers who left behind anti-India slogans.
Last year Bank of India’s website had fallen victim to hackers who planted malaware on the site that installs itself on the users computer and transmits sensitive information to the hacker. Besides this there have been phishing attempts on customers of various banks where the hacker puts up a website identical to that of a bank to steal passwords.
On Saturday, the bank launched a railway ticket booking facility at internet kiosks at ATM centres located in railway stations. All online banking customers can get printed electronic reservation slips instantly through the kiosks. The kiosk can be used for other internet banking transactions as well.
via:E.T
MUMBAI: An attempted attack caused a shutdown of State Bank of India’s (SBI) website on Saturday. “There has been an attempt to disrupt the system,” a senior official confirmed. But he refused to divulge any further details. While the bank’s internet banking
site www.onlinesbi.com was operational, its sites www.statebankofindia.com and www.sbi.co.in were down on Saturday.
Late evening, officials said that the bank was targeting to get its website operational by 9.00pm. Later the bank put up a message stating that site was under maintenance and directed online applicants to clerical positions to the Institute of Banking Personnel Selection site.
SBI is the country’s largest bank with over three million online customers. The number of people with access to internet banking has increased dramatically after SBI installed its core banking solutions in over 11,100 branches across the country. In the past too, government website have been attacked by hackers who left behind anti-India slogans.
Last year Bank of India’s website had fallen victim to hackers who planted malaware on the site that installs itself on the users computer and transmits sensitive information to the hacker. Besides this there have been phishing attempts on customers of various banks where the hacker puts up a website identical to that of a bank to steal passwords.
On Saturday, the bank launched a railway ticket booking facility at internet kiosks at ATM centres located in railway stations. All online banking customers can get printed electronic reservation slips instantly through the kiosks. The kiosk can be used for other internet banking transactions as well.
via:E.T
Satyam defers Dec 29 Board meeting
K. V. Kurmanath, Business line
Hyderabad, Dec. 27 Satyam Computer Services has decided to postpone the crucial December 29 board meeting, even as the investor community is anxious about the developments.
“The meeting has been postponed to ensure physical participation by all members on the board. The idea is to have an extensive discussions on all the issues, including buyback,” a Satyam spokesperson said.
At least two board members, Mr Vinod K. Dham and Dr Krishna Palepu, live abroad. The decision to hold the December 29 meeting was taken a few days after the company withdrew the proposal to acquire the two Maytas companies. The agenda was to discuss the buyback of shares as part of the plan to win back investor confidence.
Though a fresh date for the meeting has not been indicated, it is learnt that it would be held well ahead of the board meeting in the third week of January scheduled to consider the third quarter results.
Earlier, Mr Vinod Dham had asked the company management to convene a special board meeting to address the developments of the last 10 days. “As an independent board member, I am working with the Satyam management and other board members to come up with steps that will maximise shareholders interest,” Mr Vinod Dham, Father of the Pentium and founder-Executive Managing Partner of NEA-Indo US Ventures, told Business Line.
The Satyam board okayed a proposal on December 16 to acquire Maytas Properties and Maytas Infra - the two companies controlled by Mr B. Ramalinga Raju, Chairman of Satyam, and his sons - for a consideration of $1.6 billion. Though it withdrew the decision in a few hours following protests by the investor community, the scrip lost over 40 per cent in the last 10 days.
“I have suggested that a special board meeting consider various options and address the concerns that have been brought up,” he said.
Mr Vinod Dham, who worked as Vice-President of Intel’s Microprocessor Products group, has been on Satyam’s board from January 2003.
Meanwhile, Fidelity Investment Trust, which holds 4.63 per cent through Fidelity Management and Research Company, declined to comment on reports that foreign institutional investors are trying to effect a change in the management. “We don’t comment on individual cases,” a Fidelity spokesperson told Business Line.
Ms Judi Frost Mackey, a spokesperson of Lazard (which holds 1.83 per cent through Lazard Asset Management), too declined comments on whether the Satyam Board’s decision to acquire the Maytas firms went well with Lazard and whether it had written to Satyam on the proposed deal. “We never comment on Lazard Asset Management’s holdings,” the spokesperson said.
Business Line report
Hyderabad, Dec. 27 Satyam Computer Services has decided to postpone the crucial December 29 board meeting, even as the investor community is anxious about the developments.
“The meeting has been postponed to ensure physical participation by all members on the board. The idea is to have an extensive discussions on all the issues, including buyback,” a Satyam spokesperson said.
At least two board members, Mr Vinod K. Dham and Dr Krishna Palepu, live abroad. The decision to hold the December 29 meeting was taken a few days after the company withdrew the proposal to acquire the two Maytas companies. The agenda was to discuss the buyback of shares as part of the plan to win back investor confidence.
Though a fresh date for the meeting has not been indicated, it is learnt that it would be held well ahead of the board meeting in the third week of January scheduled to consider the third quarter results.
Earlier, Mr Vinod Dham had asked the company management to convene a special board meeting to address the developments of the last 10 days. “As an independent board member, I am working with the Satyam management and other board members to come up with steps that will maximise shareholders interest,” Mr Vinod Dham, Father of the Pentium and founder-Executive Managing Partner of NEA-Indo US Ventures, told Business Line.
The Satyam board okayed a proposal on December 16 to acquire Maytas Properties and Maytas Infra - the two companies controlled by Mr B. Ramalinga Raju, Chairman of Satyam, and his sons - for a consideration of $1.6 billion. Though it withdrew the decision in a few hours following protests by the investor community, the scrip lost over 40 per cent in the last 10 days.
“I have suggested that a special board meeting consider various options and address the concerns that have been brought up,” he said.
Mr Vinod Dham, who worked as Vice-President of Intel’s Microprocessor Products group, has been on Satyam’s board from January 2003.
Meanwhile, Fidelity Investment Trust, which holds 4.63 per cent through Fidelity Management and Research Company, declined to comment on reports that foreign institutional investors are trying to effect a change in the management. “We don’t comment on individual cases,” a Fidelity spokesperson told Business Line.
Ms Judi Frost Mackey, a spokesperson of Lazard (which holds 1.83 per cent through Lazard Asset Management), too declined comments on whether the Satyam Board’s decision to acquire the Maytas firms went well with Lazard and whether it had written to Satyam on the proposed deal. “We never comment on Lazard Asset Management’s holdings,” the spokesperson said.
Business Line report
Satyam board to meet on January 10
28 Dec 2008, 0030 hrs IST, ET Bureau
HYDERABAD: Satyam Computer Services is up for grabs. Founder and Chairman B Ramalinga Raju is set to exit a company that he has built over 21 years after his failure to repair its tarnished image.
The Satyam board will now meet on January 10 to discuss a possible dilution of the promoters stake. The promoter and his family hold an 8.5% stake in the company.
The board, which has come under pressure poor corporate governance, will also be recast and expanded.
The company has appointed DSP Merill Lynch to "conduct a review of the strategic options to enhance shareholder value", according to a statement issued here today.
"Satyam's Board of Directors recognizes the serious nature of certain questions raised by the events of the last two weeks," said B Ramalinga Raju, Chairman and Founder of Satyam.
"In order to ensure that these questions are properly addressed, and that the interests of stakeholders are fully and carefully considered, Satyam has decided to broaden the scope of its deliberations beyond a possible buy-back of its stock."
The board was earlier scheduled to meet on Monday.
But academician Mangalam Srinivasan resigned as an independent board member on December 25 as furious investors questioned the propriety of using the software company's cash reserves to buy real estate and infrastructure companies linked to Mr Raju. This has put pressure on other members to follow her example.
An independent board member T R Prasad had earlier said the board had only given an in principle nod to the buy-back of shares.
E.T. Report
HYDERABAD: Satyam Computer Services is up for grabs. Founder and Chairman B Ramalinga Raju is set to exit a company that he has built over 21 years after his failure to repair its tarnished image.
The Satyam board will now meet on January 10 to discuss a possible dilution of the promoters stake. The promoter and his family hold an 8.5% stake in the company.
The board, which has come under pressure poor corporate governance, will also be recast and expanded.
The company has appointed DSP Merill Lynch to "conduct a review of the strategic options to enhance shareholder value", according to a statement issued here today.
"Satyam's Board of Directors recognizes the serious nature of certain questions raised by the events of the last two weeks," said B Ramalinga Raju, Chairman and Founder of Satyam.
"In order to ensure that these questions are properly addressed, and that the interests of stakeholders are fully and carefully considered, Satyam has decided to broaden the scope of its deliberations beyond a possible buy-back of its stock."
The board was earlier scheduled to meet on Monday.
But academician Mangalam Srinivasan resigned as an independent board member on December 25 as furious investors questioned the propriety of using the software company's cash reserves to buy real estate and infrastructure companies linked to Mr Raju. This has put pressure on other members to follow her example.
An independent board member T R Prasad had earlier said the board had only given an in principle nod to the buy-back of shares.
E.T. Report
Satyam puts off board meeting to January 10
BS Reporter / Mumbai/hyderabad December 28, 2008, 0:33 IST
Meeting agenda to go beyond buyback.
Satyam Computer Services today sprung another surprise by postponing its crucial board meeting which was scheduled to be held on Monday. The meeting will now be held on January 10.
In a late night statement, Satyam said the scope of the board deliberations will be broadened beyond just a possible share buyback. The additional possible actions include measures to strengthen the governance structure, including increasing the size and altering the composition of the board. The meeting will also conduct a review of the company’s strategic options to enhance shareholder value and address issues arising from a possible dilution of the promoter’s stake in the company.
The company has engaged DSP Merrill Lynch to assist in this review.
Satyam Founder and Chairman Ramalinga Raju said the board recognises the serious nature of certain questions raised by the events of the last two weeks. In order to ensure that these questions are properly addressed, and that the interests of stakeholders are carefully considered, Satyam has decided to broaden the scope of its deliberations beyond a possible buy-back of its stock, Raju said.
Satyam’s independent director V S Raju said the company is trying to get all board members together in one location and coordinating that needed a new date.
V S Raju said the new date will ensure the presence of two independent directors, Krishna G Palepu and Vinod K Dham, both of whom are currently in the US.
Palepu and Dham participated in the last board meeting that approved the acquisition of two promoter-related firms through video conference.
Speculation had been rife on the eve of the company’s now-postponed board meeting that there will be a major change in the management of India’s fourth largest Indian IT services provider.
Monday’s board meeting to consider a share buyback was announced on December 18 and analysts wondered why Dham and Palepu did not organise their travel plans earlier despite getting sufficient notice.
Academician Mangalam Srinivasan had resigned as an independent board member on Thursday as furious investors questioned the propriety of using the software company’s cash reserves to buy real estate and infrastructure companies linked to Raju.
It is also being felt that Satyam’s Founder and Chairman B Ramalinga Raju has to do a lot of explanation at the next meeting.
An indication to this effect was given by M Rammohan Rao, dean of Indian School of Business and an independent director of Satyam, who chaired the board meeting when it decided to acquire Maytas Infra and Maytas Properties, the two companies controlled by the family of Ramalinga Raju.
“I am not taking any actions at the moment. At the next board meeting, there will be discussions, clarifications will be sought, and then I will take it forward,” he said.
"Business Standard" Report
Meeting agenda to go beyond buyback.
Satyam Computer Services today sprung another surprise by postponing its crucial board meeting which was scheduled to be held on Monday. The meeting will now be held on January 10.
In a late night statement, Satyam said the scope of the board deliberations will be broadened beyond just a possible share buyback. The additional possible actions include measures to strengthen the governance structure, including increasing the size and altering the composition of the board. The meeting will also conduct a review of the company’s strategic options to enhance shareholder value and address issues arising from a possible dilution of the promoter’s stake in the company.
The company has engaged DSP Merrill Lynch to assist in this review.
Satyam Founder and Chairman Ramalinga Raju said the board recognises the serious nature of certain questions raised by the events of the last two weeks. In order to ensure that these questions are properly addressed, and that the interests of stakeholders are carefully considered, Satyam has decided to broaden the scope of its deliberations beyond a possible buy-back of its stock, Raju said.
Satyam’s independent director V S Raju said the company is trying to get all board members together in one location and coordinating that needed a new date.
V S Raju said the new date will ensure the presence of two independent directors, Krishna G Palepu and Vinod K Dham, both of whom are currently in the US.
Palepu and Dham participated in the last board meeting that approved the acquisition of two promoter-related firms through video conference.
Speculation had been rife on the eve of the company’s now-postponed board meeting that there will be a major change in the management of India’s fourth largest Indian IT services provider.
Monday’s board meeting to consider a share buyback was announced on December 18 and analysts wondered why Dham and Palepu did not organise their travel plans earlier despite getting sufficient notice.
Academician Mangalam Srinivasan had resigned as an independent board member on Thursday as furious investors questioned the propriety of using the software company’s cash reserves to buy real estate and infrastructure companies linked to Raju.
It is also being felt that Satyam’s Founder and Chairman B Ramalinga Raju has to do a lot of explanation at the next meeting.
An indication to this effect was given by M Rammohan Rao, dean of Indian School of Business and an independent director of Satyam, who chaired the board meeting when it decided to acquire Maytas Infra and Maytas Properties, the two companies controlled by the family of Ramalinga Raju.
“I am not taking any actions at the moment. At the next board meeting, there will be discussions, clarifications will be sought, and then I will take it forward,” he said.
"Business Standard" Report
Friday, December 26, 2008
Satyam board seen headed for major overhaul
27 Dec 2008, 0023 hrs IST, ET Bureau
HYDERABAD: A shakeout looms in the top echelons of Satyam Computer Services
, as the board prepares for a meeting on Monday to consider a share buy back, amid growing calls for drastic measures to repair its damaged image.
One independent director, academician Mangalam Srinivasan, stepped down on Christmas day citing moral responsibility for allowing a controversial takeover bid of two firms run by Satyam’s founder B Ramalinga Raju. However, the plan was aborted within hours after a shareholder rebellion.
Speculation is rife that more heads could roll. A change in management
or a complete overhaul of the board may happen on Monday. But a Satyam spokeswoman declined to say if anything other than a share buyback is on the agenda. Ramalinaga Raju is the executive chairman and his brother Rama Raju is the managing director on the Satyam board.
According to a corporate lawyer, if Raju resigns, one of the options before the board could be to appoint one of the independent directors as a chairman or managing director. The other option could be to appoint other investor nominees as chairman or managing director. “But this possibility appears remote as financial investors may not be willing to take the onus of running the company,” said a corporate lawyer, who wished not to be identified.
Institutional investors led by Aberdeen Asset Management, Fidelity and ICICI Prudential hold a 61% stake in Satyam, several times the 8.5% stake held by the family of the company’s founder and chairman Ramalinga Raju. The resignation of Ms Srinivasan, who was on the Satyam board for over 17 years, has also added pressure on other directors to follow her example.
But VS Raju, former dean of IIT Madras and an independent board member ruled out resignation. “I am clear that I did not do anything wrong. We approved the acquisition of Maytas Infrastructure
and Maytas Properties after examining the full information available to us. The resolution to allow Satyam to acquire the two firms was not put to vote and was adopted unanimously by the board,” he said. Other independent members including M Ram Mohan, the dean of the Indian school of Business and T R Prasad, former Cabinet secretary were unavailable for comment.
The other directors on Satyam are Ram Mynampati, president and whole time director, Krishna G Palepu, a professor at the Harvard Business School, and Vinod Dham, described as the father of the Pentium chip.
Via:E.T
HYDERABAD: A shakeout looms in the top echelons of Satyam Computer Services
, as the board prepares for a meeting on Monday to consider a share buy back, amid growing calls for drastic measures to repair its damaged image.
One independent director, academician Mangalam Srinivasan, stepped down on Christmas day citing moral responsibility for allowing a controversial takeover bid of two firms run by Satyam’s founder B Ramalinga Raju. However, the plan was aborted within hours after a shareholder rebellion.
Speculation is rife that more heads could roll. A change in management
or a complete overhaul of the board may happen on Monday. But a Satyam spokeswoman declined to say if anything other than a share buyback is on the agenda. Ramalinaga Raju is the executive chairman and his brother Rama Raju is the managing director on the Satyam board.
According to a corporate lawyer, if Raju resigns, one of the options before the board could be to appoint one of the independent directors as a chairman or managing director. The other option could be to appoint other investor nominees as chairman or managing director. “But this possibility appears remote as financial investors may not be willing to take the onus of running the company,” said a corporate lawyer, who wished not to be identified.
Institutional investors led by Aberdeen Asset Management, Fidelity and ICICI Prudential hold a 61% stake in Satyam, several times the 8.5% stake held by the family of the company’s founder and chairman Ramalinga Raju. The resignation of Ms Srinivasan, who was on the Satyam board for over 17 years, has also added pressure on other directors to follow her example.
But VS Raju, former dean of IIT Madras and an independent board member ruled out resignation. “I am clear that I did not do anything wrong. We approved the acquisition of Maytas Infrastructure
and Maytas Properties after examining the full information available to us. The resolution to allow Satyam to acquire the two firms was not put to vote and was adopted unanimously by the board,” he said. Other independent members including M Ram Mohan, the dean of the Indian school of Business and T R Prasad, former Cabinet secretary were unavailable for comment.
The other directors on Satyam are Ram Mynampati, president and whole time director, Krishna G Palepu, a professor at the Harvard Business School, and Vinod Dham, described as the father of the Pentium chip.
Via:E.T
Ramalinga Raju may not chair Satyam board meet
27 Dec 2008, 0110 hrs IST, Kingshuk Nag, TNN
HYDERABAD: Stunned by the attacks from all sides, Satyam chief Ramalinga Raju may offer not to chair the company's crucial board meeting on December 29th and even step down from the chairmanship of the company temporarily, sources told TOI.
This development
comes with pressure mounting on the independent directors to take moral responsibility for the aborted Satyam-Maytas deal that has sent the company on a downward spiral. Dean of Indian School of Business (ISB), M Rammohan Rao, who chaired the crucial board meeting which approved the ill-fated deal to buy the two Maytas companies, is also believed to have been ‘‘informally advised'' by Andhra Pradesh government representatives to quit the Satyam board.
Meanwhile, Left MP Abani Roy has demanded Satyam Computer Services
board member (independent) Rammohan Rao resign from his positions in various government and regulatory committees. Citing media reports, Roy, a Rajya Sabha MP, has written a letter to Prime Minister Manmohan Singh saying: “His actions in the boardroom of Satyam further accentuated by his stoic silence on various issues reflect an irresponsible role of conduct on his behalf.”
The board meeting on December 29 has been convened primarily to consider the prospects of buying back the company's shares. However, it is also quite obvious that the board members will use this opportunity to recapitulate all that has happened in the past two weeks and decide on a plan of action, including any changes that may be required to get the company back on a respectable footing.
Sources claim that Rammohan Rao may reconsider his earlier decision of continuing on the board of Satyam. When asked by TOI about this, Rao said: ‘‘I am not taking any actions at the moment.'' But significantly he added: ‘‘At the next board meeting there will be discussions, clarifications will be sought, then I will take it forward.''
Indications are that one of the independent directors, former cabinetsecretary T R Prasad might aggressively question the company's management policies at the next board meeting. Prasad -- who, as Union heavy industry secretary in 1996, crossed swords with Suzuki over the Maruti issue and also functioned as Maruti Udyog Limited's chairman -- joined the Satyam board only in April 2007.
Sources say that Prasad would be pushed into taking a more active role in Satyam's affairs, what with the company coming under close scrutiny from Sebi and the department of company affairs. ‘‘Having held the top most civil services position in the country, Prasad is well placed to guide the company out of trouble at least domestically,'' a highly placed source said.
Satyam's oldest director Mangalam Srinivasan - who has been a director on Satyam's board since 1991 - resigned on Christmas Day, taking moral responsibility for being part of the aborted deal. Analysts said that it was significant that 70-year-old Srinivasan - an academic in the US - resigned. ‘‘She had been with Ramalinga Raju since Satyam Computers was merely four years old and the company has just got its first contract in the US. Her quitting has been a shocker for the Satyam supremo,'' an analyst said.
The other independent directors on Satyam's board include father of Pentium Vinod Dham and former director of IIT, Delhi, U S Raju. Sources say that Raju is not likely to quit the board, but there were no clear indications on what could be playing on Dham's mind. Vinod Dham joined the Satyam board in January 2003, along with Harvard Business School professor Krishna Palepu. But as per the definitions of the NYSE, Palepu does not qualify as an independent director of Satyam.
Via:E.T
HYDERABAD: Stunned by the attacks from all sides, Satyam chief Ramalinga Raju may offer not to chair the company's crucial board meeting on December 29th and even step down from the chairmanship of the company temporarily, sources told TOI.
This development
comes with pressure mounting on the independent directors to take moral responsibility for the aborted Satyam-Maytas deal that has sent the company on a downward spiral. Dean of Indian School of Business (ISB), M Rammohan Rao, who chaired the crucial board meeting which approved the ill-fated deal to buy the two Maytas companies, is also believed to have been ‘‘informally advised'' by Andhra Pradesh government representatives to quit the Satyam board.
Meanwhile, Left MP Abani Roy has demanded Satyam Computer Services
board member (independent) Rammohan Rao resign from his positions in various government and regulatory committees. Citing media reports, Roy, a Rajya Sabha MP, has written a letter to Prime Minister Manmohan Singh saying: “His actions in the boardroom of Satyam further accentuated by his stoic silence on various issues reflect an irresponsible role of conduct on his behalf.”
The board meeting on December 29 has been convened primarily to consider the prospects of buying back the company's shares. However, it is also quite obvious that the board members will use this opportunity to recapitulate all that has happened in the past two weeks and decide on a plan of action, including any changes that may be required to get the company back on a respectable footing.
Sources claim that Rammohan Rao may reconsider his earlier decision of continuing on the board of Satyam. When asked by TOI about this, Rao said: ‘‘I am not taking any actions at the moment.'' But significantly he added: ‘‘At the next board meeting there will be discussions, clarifications will be sought, then I will take it forward.''
Indications are that one of the independent directors, former cabinetsecretary T R Prasad might aggressively question the company's management policies at the next board meeting. Prasad -- who, as Union heavy industry secretary in 1996, crossed swords with Suzuki over the Maruti issue and also functioned as Maruti Udyog Limited's chairman -- joined the Satyam board only in April 2007.
Sources say that Prasad would be pushed into taking a more active role in Satyam's affairs, what with the company coming under close scrutiny from Sebi and the department of company affairs. ‘‘Having held the top most civil services position in the country, Prasad is well placed to guide the company out of trouble at least domestically,'' a highly placed source said.
Satyam's oldest director Mangalam Srinivasan - who has been a director on Satyam's board since 1991 - resigned on Christmas Day, taking moral responsibility for being part of the aborted deal. Analysts said that it was significant that 70-year-old Srinivasan - an academic in the US - resigned. ‘‘She had been with Ramalinga Raju since Satyam Computers was merely four years old and the company has just got its first contract in the US. Her quitting has been a shocker for the Satyam supremo,'' an analyst said.
The other independent directors on Satyam's board include father of Pentium Vinod Dham and former director of IIT, Delhi, U S Raju. Sources say that Raju is not likely to quit the board, but there were no clear indications on what could be playing on Dham's mind. Vinod Dham joined the Satyam board in January 2003, along with Harvard Business School professor Krishna Palepu. But as per the definitions of the NYSE, Palepu does not qualify as an independent director of Satyam.
Via:E.T
WEEK AHEAD : Market may recover after steep slide
Hopes of further rate cuts by the central bank and a likely second government stimulus package to pump prime the economy may trigger a recovery on the bourses after a sharp slide last week. However, trading volumes are likely to remain low as most foreign fund managers are on a vacation for Christmas and the New Year. Domestic institutions may provide support to boost yearly net asset values.
The BSE 30-share Sensex lost 770.99 points or 7.63% to 9,328.92 in the week ended Friday, 26 December 2008.
Commerce Minister Kamal Nath on Wednesday, 24 December 2008, said the government is considering another stimulus package to lift slowing growth. The new stimulus package may include steps to ease liquidity and relief measures for export and housing sectors, the trade minister said. He also said the government is looking at possible duty cuts for more goods to stimulate demand in the economy.
The second stimulus package assumes importance as the industrial production fell 0.4% in October 2008, to move into negative zone after 15 years, while exports declined by 12.1% during the month.
The first stimulus package announced early this month mainly involved an across-the-board excise duty cut of 4% and an additional public expenditure of Rs 20,000 crore. In addition to the fiscal stimulus, the Reserve Bank of India through a slew of measures reduced the key ratios and policy rates, thereby releasing about Rs 3 lakh crore of liquidity into the system.
A sustained decline in inflation has raised expectations of a further cut in key policy rates by the Reserve Bank of India. Wholesale prices increased 6.61% in the year through 13 December 2008 lower than previous week's 6.84% rise, data released by the government on Friday, 26 December 2008 showed. The central bank's fiscal year-end target for inflation is at 7%.
Inflation had surged into double digits in early June this year after an increase in state-set retail fuel prices, and peaked at 12.91% on, 2 August 2008, the highest reading since annual numbers in the current data series became available in April 1995.
The RBI had on 6 December 2008, announced a 100-basis point cut in the repo rate and the reverse repo rate each. Repo rate is the rate at which RBI lends to commercial banks and reverse repo rate is the rate at which RBI accepts deposits from banks.
However, concerns over corporate earnings may cap gains. Weaker export numbers, lower excise collections and flagging industrial production data have raised concerns about a sharp moderation in growth. The government said on Friday, 26 December 2008, advance taxes paid by companies declined 22% to about Rs 42600 crore in the December 2008 quarter over the December 2007 quarter, reflecting economic slowdown.
Also there is now the lurking tension brewing on the geopolitical front with tensions escalating between India and Pakistan although Prime Minister Manmohan Singh and his Pakistani counterpart Yousuf Raza Gilani said there would be no Indo-Pak war.
The BSE 30-share Sensex lost 770.99 points or 7.63% to 9,328.92 in the week ended Friday, 26 December 2008.
Commerce Minister Kamal Nath on Wednesday, 24 December 2008, said the government is considering another stimulus package to lift slowing growth. The new stimulus package may include steps to ease liquidity and relief measures for export and housing sectors, the trade minister said. He also said the government is looking at possible duty cuts for more goods to stimulate demand in the economy.
The second stimulus package assumes importance as the industrial production fell 0.4% in October 2008, to move into negative zone after 15 years, while exports declined by 12.1% during the month.
The first stimulus package announced early this month mainly involved an across-the-board excise duty cut of 4% and an additional public expenditure of Rs 20,000 crore. In addition to the fiscal stimulus, the Reserve Bank of India through a slew of measures reduced the key ratios and policy rates, thereby releasing about Rs 3 lakh crore of liquidity into the system.
A sustained decline in inflation has raised expectations of a further cut in key policy rates by the Reserve Bank of India. Wholesale prices increased 6.61% in the year through 13 December 2008 lower than previous week's 6.84% rise, data released by the government on Friday, 26 December 2008 showed. The central bank's fiscal year-end target for inflation is at 7%.
Inflation had surged into double digits in early June this year after an increase in state-set retail fuel prices, and peaked at 12.91% on, 2 August 2008, the highest reading since annual numbers in the current data series became available in April 1995.
The RBI had on 6 December 2008, announced a 100-basis point cut in the repo rate and the reverse repo rate each. Repo rate is the rate at which RBI lends to commercial banks and reverse repo rate is the rate at which RBI accepts deposits from banks.
However, concerns over corporate earnings may cap gains. Weaker export numbers, lower excise collections and flagging industrial production data have raised concerns about a sharp moderation in growth. The government said on Friday, 26 December 2008, advance taxes paid by companies declined 22% to about Rs 42600 crore in the December 2008 quarter over the December 2007 quarter, reflecting economic slowdown.
Also there is now the lurking tension brewing on the geopolitical front with tensions escalating between India and Pakistan although Prime Minister Manmohan Singh and his Pakistani counterpart Yousuf Raza Gilani said there would be no Indo-Pak war.
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