Sensex ends higher on RIL-RNRL settlement rumours

14 Jan 2009,

Markets closed near the day’s high on Wednesday led by heavy buying activity in Reliance Industries and other Reliance Group (Mukesh and Anil Ambani) stocks.

There are rumours that warring brothers may head for some amicable settlement bringing end to their business rivalry over gas dispute. Sustained buying activity was also seen in IT and metal stocks.

Bombay Stock Exchange’s Sensex ended at 9,409.18, up 337.82 points or 3.72 per cent. The index touched an intra-ay high of 9,409.18 and low of 9202.57.

National Stock Exchange’s Nifty was at 2852.65, up 107.70 points or 3.92 per cent. The broader index touched a high of 2853.25 and low of 2748.55.

BSE Midcap Index was up 2.16 per cent and BSE Smallcap Index gained 1.38 per cent.

Biggest Sensex gainers were Reliance Communications (13.1%), Reliance Infrastructure (12.04%), Reliance Industries (10.93%), Infosys Technologies (6.23%) and Tata Steel (5.79%).

Losers comprised Grasim Industries (-3.21%), HDFC Bank (-1.61%), Maruti Suzuki (-1.23%), Sun Pharmaceuticals (-0.84%) and Hindustan Unilever (-0.37%).

Market breadth on BSE showed 1398 advances against 984 declines on the BSE.

HAPPY MAKARA SANKRANTHI

Sankranthi, or Sankranti is a festival that signifies the beginning of the harvest season for the farmers of Indian Sub-Continent. This is a harvest festival celebrated not only all over India but other South East Asian Countries as well.

Makara Sankranti has special geo-agri-economical significance to people of Indian Sub-Continent. Makara Sankaranti is about transition of Sun into Capricorn on its celestial path.(Sankarnti being Sanskrit for transition ). This is significant considering Winter Solstice marking gradual increase of duration of day. Also traditionally this has been one of many (considering vastness of land and climatic variation ) harvest days.

The day on which the sun begins its journey northwards is referred to as Makara Sankranti. Sankramana means "to commence movement" and hence the name Makara Sankranti given to one of the largest, most auspicious, but varied festivals in the Indian subcontinent. It usually falls in the middle of January. Because of the geography and size of India, this festival is celebrated for innumerable reasons depending on the climate, agricultural environment, cultural background and position in the context of north or south of India.

FACT : Turnaround Q3 results

Fertilizers & Chemicals Travancore rose 3.65% to Rs 19.90 at 10:44 IST on BSE on reporting a net profit of Rs 5.28 crore in Q3 December 2008 as compared to a net loss of Rs 54.46 crore in Q3 December 2007.
The company announced the result after the market hours on 12 January 2009.
The stock hit a high of Rs 19.95 and a low of Rs 19.90 so far during the day. The stock hit a 52-week high of Rs 50.05 on 10 January 2008 and a 52-week low of Rs 14.10 on 27 October 2008.
The company's current equity is Rs 354.77 crore. Face value per share is Rs 10.
The current price of Rs 19.90 discounts the company's Q2 September 2008 annualized EPS of Rs 1.11, by a PE multiple of 17.92.
The company's total income jumped 389.7% to Rs 726.92 crore in Q3 December 2008 over Q3 December 2007.
Fertilizers & Chemicals Travancore known by its acronym FACT, is engaged in manufacturing and distribution of fertilizers and chemicals. The company's product includes ammonium sulphate, factomfos, urea and caprolactam.

T R Prasad resigns from GMR Infrastructure Board

13 Jan 2009, 2019 hrs IST, Vikas Bhardwaj, ET Bureau

NEW DELHI: GMR Infrastructure today said T R Prasad – one of the independent directors of the disbanded board of Satyam in the wake of financial

fraud – has resigned from its Board of Directors. "He has resigned from the board due to personal reasons," a spokesperson of GMR Group said.


Prasad, former Cabinet secretary, was one of the independent directors in the disbanded board of fraud tainted Satyam and expressed his views on the controversial 1.6 billion dollar Satyam-Maytas aborted deal
.

Immediately after the deal, Prasad insisted that the then Satyam board had given only in-principle approval and final go ahead was required upon consideration of valuation.

Disgraced founder of the IT firm, Ramalinga Raju while disclosing his Rs 7,800 crore financial fraud had identified Prasad as one person who was "well-placed to mobilise support from the government at this crucial time."

via:E.T

Petition against Satyam, Pyramid Saimira filed in SC

13 Jan 2009, 1920 hrs IST, PTI

A Public Interest Litigation has been filed in the Supreme Court seeking a direction to market regulator SEBI and the Bombay stock Exchange to cancel all share transactions in Satyam Computers and Chennai-based entertainment firm Pyramid Saimira.

It has sought cancellation of all the transactions between January 6 and 7 on the ground that innocent investors were lured by these companies on buyback declarations and fraud was played on them.

A bench headed by Chief Justice K G Balakrishnan, however, refused to give early date of hearing to petitioner Mohan Lal Sharma, a practising advocate.

The advocate said that on January 6, media had widely reported about Satyam adopting proposal to buyback its shares and its decision to take up the issue in the board meeting.

According to him, before the decision was taken by the board, IL&FS had sold about 246.6 lakh shares in the market at Rs 176 per share. However, the Satyam shares crashed to close at Rs 30 after Satyam chairman Ramlingam Raju resigned from the board and confessed to Rs 7,000 crore fraud, he added.

The petition further added that Pyramid Saimira, which was in the news recently for serious fraud allegations wherein the company, was sent a forged letter of SEBI asking its co-promoter PS Saminathan to make an open offer to minority shareholders to buy 20 per cent at Rs 250 a share.

Various investors, including Sharma, had bought the shares under the garb of forged letter.

Within one hour of disclosure, the share went down to freeze at Rs 61.15 per share, Sharma said, adding that till date no action was taken by SEBI to get all purchased shares cancelled.

Rolta says biz in order as shares plunge

13 Jan 2009, 1824 hrs IST, REUTERS
MUMBAI: Rolta India Ltd on Tuesday said all its businesses and operations were in order in a clarification issued after the software service provider's shares crashed nearly 60 percent to a 3-½ year low.

"The company categorically states that all its operations and business are in order and there are no new developments which have taken place that have any material impact on the company's operations," the company said in a statement to stock exchanges.

Shares had crashed on speculation stocks pledged by promoters have been sold by creditors, which was denied by Chairman Kamal Singh on television.

There was also speculation that foreign funds had sold stake in the software firm, which could not be confirmed immediately. As of December-end, foreign institutional investors held 35.3 percent in Rolta, according to data with the BSE.

"They have not informed us of anything," Chairman and Managing Director Kamal Singh told a news channel when asked if any foreign funds had informed him of a share sale.

Rolta Shares & Stocks Pvt has a 2.6-percent stake in Rolta which are pledged to meet its working capital needs, Singh said. However the banks with whom the shares are pledged have not sold these shares, he added.

"We have reconfirmed from all the bankers," said Singh, naming Axis Bank, Union Bank of India and Indian Bank as creditors. "They have all confirmed nothing has been sold."

"Question of selling doesn't arise because we have not drawn any substantial money against these shares," Singh, who is also the company's managing director, said. "Right now nothing has been used out of them. Nothing has been sold out of them."

Rolta shares, which dropped to a 3-½ year low of 42.40 rupees on the speculation, quicky recouped some of its losses on the clarification but still closed 17.7 percent lower at 87.15 rupees in a weak Mumbai market.

Rolta's board is scheduled to meet on Jan. 19 to consider the company's results for the quarter-ended December.

Infosys on stronger-than-expected Q3 results

Infosys Technologies posted a 14.59% rise in net profit to Rs 1641 crore in Q3 December 2008 over Q2 September 2008.

The company announced the Q3 December 2008 results before trading hours today, 13 January 2009.


The strong growth in net profit was mainly due to the depreciation of the rupee against the dollar.


The company has marginally increased its FY 2009 revenue guidance by around 1% to Rs 21,552-21757 crore. EPS guidance is increased by 1.8% to Rs 102.9.

The stock of Infosys Technologies was up by more than 5% at Rs 1217.90 at 11.10 am.

SBI has Rs:500 Crs exposure to Maytas Infra

State Bank of India fell 4.86% to Rs 1,156.85 on BSE, on 12th Jan'09, after reports that the bank had about Rs 500 crore in exposure to Maytas Infra.

State Bank of India (SBI) has no exposure to outsourcer Satyam Computer Services but has an exposure of about Rs 500 crore to Maytas firms, the banks' chairman said today, 12 January 2009. SBI's exposure to companies with the Maytas tag is both fund and non-fund based, O.P. Bhatt told television news channel.

Bhatt said that the exposure was fully collateralised with no problem as of now. He said the bank was reviewing the exposure.

Maytas Infra and Maytas Properties are owned by the family of the founder chairman of Satyam Computer Services. Satyam's founder and former chairman Ramalinga Raju revealed an accounting fraud last week followed by a stunning resignation letter on 7 January 2009. Reports added that Satyam provides services to State Bank of India (SBI)'s IT department though the bank has no exposure to Satyam.

The Raju family had reportedly borrowed money from a large number of organisations to tide over the financial crunch that was affecting the group's infrastructure-related projects.

Andhra Pradesh Chief Minister Rajasekhara Reddy has said that the state government is reviewing the ability of B Ramalinga Raju family-promoted Maytas group firms to carry out the works awarded to the group by the state government. A consortium of Maytas Infra was awarded a Rs 12,000-crore Hyderabad metro rail project and a Rs 1,200-crore Machilipatnam Sea Port project by the state government. The metro rail project is expected to announce its financial closure by March 2009, while sea port project will take about six months for the same.

Note: AP Govt Should have reviewed Matas before Work Allotment insted of Reviewing Aftermath.

The downfall: Are we moving from worse to worst?

Source: IRIS (10 January 2009)
What started in mid-2007 as a subprime mortgage fiasco in the United States, has now transformed into a major global economic slowdown, the worst ever since the Great Depression. All the economies across the globe fell into the recession. Stimulus packages, industry friendly monetary policies and massive liquidity injections, time and again by the central banks of many countries were unsuccessful in warding-off this problem, which had snow-balled into a global crisis. Stock markets world-wide are still trading at more than 50% discount of their highs in late 2007, with little signs of improvement; even commodity markets are trading extremely volatile.

In a rescue attempt, governments in both, developed as well as developing countries have started to unveil fiscal and monetary stimulus packages to prevent the global financial crisis from deteriorating further and turning into another Great Depression.

To salvage AIG, America`s biggest and one of the largest insurance companies in the world, the United States provided an emergency credit line of USD 85 billion in exchange for about 80% equity ownership in AIG. Further aid was given, raising the bailout to USD 150 billion in November 2008.

Two more large financial institutions failed; Lehman Brothers and Washington Mutual had to file for bankruptcy. Lehman`s fall is the largest in the United States history, while the latter is the largest bank ever to fail. Investment banks like DSP Merrill Lynch and Goldman Sachs were also found engulfed in this subprime crisis.

The international financial scene changed dramatically after September 2008. The crisis rapidly spread across the globe. In the United States alone, between September 2007 and October 2008, 16 banks filed for bankruptcy.
Prices of oil and non-oil primary commodities have also shown strong fluctuations during 2008, largely driven by financial factors, as well as shifts in the balance between supply and demand.

Growth of world trade decelerated to 4.4% in early 2008, down from 6.3% in 2007, mainly owing to a decline in imports of the United States.

Rough roads ahead

As per a United Nations Conference on Trade and Development (UNCTAD) forecast, more challenging times are in store for the developing economies. The cost of external borrowings is rising and the capital inflow is deteriorating in such economies.

Not only developed and developing economies have suffered, but the Least Developed Countries (LDCs) are feeling the heat. Growth in this group decelerated from 7.8% in 2007 to 6.4% in 2008, breaking a four-year trend of growth over 7%. In 2009, growth is expected to slow further to 5.3%.

According to the United Nations baseline forecast, world gross product (WGP) is expected to slow down to a meager 1% in 2009, a sharp deceleration from the 2.5% growth estimated for 2008. In the worst case scenario, WGP for 2009 is expected to be -0.4%, where as in the best case scenario it may go up to 1.6%. In the baseline scenario, per capita income for the world as whole is expected to decline in 2009.

This will be the case not only in the developed economies but also in many developing countries, where per capita income growth will be negative or well below what is needed to address poverty reduction.

In the outlook for 2009, capital inflow to developing economies is projected to drop further. The outflow of capital from emerging to developed market economies continued to be larger than the inflow. The foreign reserves of developing countries are expected to be sluggish, or even decline in some countries.
The employment situation is expected to deteriorate in most regions during 2009. Global inflation is expected to decelerate significantly in the outlook for 2009, with the risk for deflation increasing in some economies.

Among developed economies, the economy of the United States is expected to decline by 1% in the baseline scenario for 2009. Japan`s economy is in a recession and is expected to stagnate in 2009.

Developing countries will be hurt by the crisis through international trade and finance channels. The drop in commodity prices will hurt primary exporters in particular, but lower demand in the developed countries will affect export growth throughout the developing world. Growth in Africa is expected to decelerate to 4.1% in 2009 from 5.1% in 2008.
Growth in East Asia is expected to decline sharply in 2009, as the slowdown in the developed nations will decelerate exports significantly. Owing to their relatively higher exposure, some economies in the region will also experience sizeable financial losses. South Asia is experiencing an overall slowdown in economic growth from the industrial sector to the service sector as a result of the negative impact of higher costs and the global financial turmoil. Growth in Western Asia is anticipated to slow down significantly in 2009, to the lowest rate in seven years.

Where does India stand?

Mirroring the global events, India too has suffered a financial agony. Industrial production fell into negative territory for the first time since the index was launched. Exports have declined, vehicle production have shown a decline. Many companies have shelved their investment plans and projects. Meanwhile, there have been certain positives as well: Inflation has declined considerably; the government has launched aggressive rate cuts and fiscal measures to stem the economic slowdown. Though the Indian economy is better placed than many of its Asian counterparts, it is in no way decoupled with the rest of the world and in the next few quarters it will grow at a rate much lower than the average growth rate seen in the past few years.

Conclusion

Markets across the globe have frozen significantly. Governments and regulators are trying hard to come up with measures like bailouts, stimulus packages to restore confidence in the hammered financial systems. The question is - Will this work? It is hard to forecast, but doing nothing would almost certainly have pushed the world economy into a deeper crisis. A combination of more rescue packages, unconventional monetary policies worldwide should succeed in reviving the global economy. However, it will take time for most of these policy measures to take effect. In fact, given the current state of developed economies, it appears to be inevitable that the major economies will see significant economic deceleration in the coming months and the recovery in the same will be much slower, even if the bailouts and stimulus packages are a success. Till then, policymakers need to hold on and keep on their good work and come up with more measures to guard the economies and most importantly be positive and hope for the BEST.

Palepu may have to quit DRL board

10 Jan 2009, 0424 hrs IST, Rumi Dutta & Dev Chatterjee, ET Bureau

MUMBAI: Havard Professor Krishna G Palepu, the former non-executive director of Satyam Computer Services, may have to step down from yet another company board. Following India’s biggest accounting scandal, Dr Reddy’s Laboratories has informally asked Mr Palepu to resign from its board where he is an independent director. A source in Dr Reddy’s Lab told ET that the company’s senior management has sent feelers to Mr Palepu to quit.

The company’s board is meeting on January 20 to consider the December quarter results. His role is expected to be discussed during the meeting

Mr Palepu was a non-executive director on Satyam’s board, which cleared the books cooked under Ramalinga Raju’s leadership. “We have not heard from Mr Palepu so far. While other directors have confirmed attendance at the board meeting, Mr Palepu has still not contacted us,” a source at Dr Reddy’s said.

A Dr Reddy’s spokesperson said the company had no comments to offer. Several e-mails to Mr Palepu remained unanswered.

Satyam’s annual reports reveal that the Harvard professor had received a remuneration of Rs 90 lakh from Satyam as he was conducting customised leadership programmes for Satyam’s employees. Ever since Satyam announced the controversial acquisition of Maytas Properties and Maytas Infrastructure, Mr Palepu has not spoken on this issue. He, however, resigned from Satyam’s board in the last week of December.

Incidentally, Mr Palepu was also on the board of Global Trust Bank (GTB) which collapsed in 2002 following an accounting scam.

In a reply to an earlier ET questionnaire, the Harvard Business School clarified that it has nothing to do with Mr Palepu’s actions while serving on the boards of Indian companies. “The situation you describe would have nothing to do with Harvard University or Harvard Business School
as institutions. The HBS faculty is involved with companies as individuals. All correspondence on this matter would have to be directed to Prof. Palepu himself,” a Harvard spokesperson said on December 22. A subsequent email and a telephone call to HBS after Ramalinga Raju’s mea culpa yesterday did not elicit any response.

TR Prasad, former cabinet secretary and an independent director on Satyam board, had told ET that none of the independent directors were aware of the accounting fraud in Satyam and they came to know about the cooked books only after they received an email from Mr Raju. “We had relied on the auditor PricewaterhouseCoopers on this as it was they who audited the results.”

PwC, on the other hand, has said it relied on documents supplied by the company. PwC was involved in auditing Global Trust Bank as well.


via:E.T

SATYAM Touched a Bottom of Rs:6.30 on 9-jan-08

As we predicted yesterday. Satyam nose dived to Rs:6.30 on NSE at the early hours of trading on 9th Jan'08.

Now News coming in... Just Raju Surrendered in fron of AP's DGP. (Next usually admits in hospital.)

Satyam: have the funds been siphoned off?

Investigating agencies must look into this aspect: analysts
Doubts being raised about the source of Maytas’ investments in real estate
Were funds were siphoned off from Satyam Computers, analysts wonder
Several questions are being raised whether Satyam Chairman B. Ramalinga Raju has really spilled all the beans in his confessional statement on the Rs. 7,000-odd crore scam in the IT company
Mr. Raju has admitted the widening gap between the actual operating profits and those shown in the accounting books ‘for several years now’. But, he has glossed over the fact that Satyam raised about Rs. 2,000 crore from American Depository Receipts in 2001 and its continued acquisitions in line with its claims that it was looking to take over firms with a valuation of over $50 million.
The handsome profits shown in the books notwithstanding, Mr. Raju, claimed that the contract margin of the company was as low as three per cent against a market average in excess of 20 per cent. “When Satyam is no less than that of Wipro, Infosys and TCS, why will the company accept contracts with such low margins? Mr. Raju is obviously not into charitable acts,” a senior official in the Government remarked.
Industry analysts agree with the view and suggest that the investigating agencies must find out whether funds were siphoned off from Satyam Computers. Doubts are also being raised about the source of investments made in real estate by Maytas Properties, a privately owned firm of Mr. Raju’s family, in purchase of land in all major cities in the south, creating a land bank of 6,800 acres.
An analyst wondered how an auditors like PwC with a global reputation failed to raise questions about the fudging of figures. “They should have raised questions when Maytas Properties was declared as the most precious asset of Mr. Raju’s family with an estimated value of $1.3 billion compared to Maytas Infra ($0.3 billion) when Mr. Raju announced the decision to acquire them,” he said.

Satyam fraud not one man show: KPMG

9 Jan 2009, 0932 hrs IST, PTI

NEW DELHI: KPMG, which audits the accounts of IT majors like Infosys and Wipro, on Friday doubted the veracity of the confessional letter written by B Ramalinga Raju, the founder-chairman of Satyam Computer, saying the financial bungling cannot be done only by the head of the Hyderabad-based firm.

"It defies logic, one is not sure whether there is much more to it than is written in the letter and whether the letter contains all the facts," KPMG Chief Operating Officer Richard Rekhy said here on the sidelines of a CII function.

It is too simplistic at the moment to believe that the kind of thing that has happened in the company is done by Raju alone, he said.

"It requires a whole battery of people to advance those accounting entries and credit those because you have to involve other people as well like bankers to get those certificates," he said.

When asked whether Raju might have siphoned off funds and he is now admitting to lesser crime, he said it is quite possible but it could be known only after investigation of group companies.

Rekhy said investigation of Satyam companies should be done in such a way it should not hamper the business of IT major. He emphasised the need of an oversight agency for auditors.

SREI Infrastructure Finance come out unscathed by SATYAM

8 Jan 2009, 2013 hrs IST, Anuradha, ET Bureau

SREI Infrastructure Finance appears to have come out unscathed in the aftermath of the
Satyam fraud as it had no equity exposure in the proposed Rs 1600-crore Machilipatnam port project being promoted jointly by Maytas Infra in consortium with Nagarjuna Construction Co (NCC).

When contacted by ET, SREI Infrastructure Finance's chairman & managing director Hemant Kanoria said: "About three years ago, we had expressed our intent to take equity exposure in the project. However, since we did not receive a detailed project report, we have not taken a call on the Machilipatnam project till date." However, the company is believed to have made an initial investment of Rs 2-3 lakh in this venture so far.

"If and when approached by companies, we as an infrastructure equipment and project financing institution evaluate the viability of projects. We also assess whether it makes financial sense to invest in the company," Mr Kanoria added. Investment decisions are taken only after a detailed project report is ready and financial viability ascertained.

In the wake of the Satyam saga, we will wait for the government's stand on the project before taking a call," Mr Kanoria said.

It may be mentioned that the Hyderabad-based construction and infrastructure development company Maytas Infra along with Nagarjuna Construction Company, SREI Infrastructure Finance and Sarat Chatterjee & Company bagged a contract for construction of an all weather deep water port at Machilipatnam from Andhra Pradesh government.

The proposed port, which is well connected by road and rail and is in close vicinity of Gannavaram airport, will be able to handle coal requirements of Vijayawada Thermal Power Plant and other cement plants spread in the Krishna belt. On completion, the Machilipatnam Deep Water Port will be equipped to handle exports of agricultural produce, minerals and other commodities from the surrounding districts.

VIA:E.T

LIC assessing investment in Satyam

8 Jan 2009, 1546 hrs IST, PTI

Public-sector insurer Life Insurance Corp (LIC), which holds 4.34 per cent in the troubled IT firm, Satyam Computer Services, today said it is assessing the situation and will take a decision on its holding accordingly.

"We have 4.34 per cent stake in Satyam Computer Services. We are concerned and will consider a decision according to how the situation develops," LIC MD Thomas Mathew said.

"We are a long-term investor and we do not believe in any short-term investments. All our investments are on the basis of strong reasearch and we look at the fundamentals of the company we invest in. Satyam is a niche player," Mathew, who is incharge of the investment, said.

The company was also concerned about Satyam and wants it to come up again, he said.

Maytas Infra also fudged books

8 Jan 2009, 1652 hrs IST, PTI
MUMBAI: Satyam Computer is not the only Ramalinga Raju family-promoted company that fudged books, but Maytas Infrastructure also seems to have mis-represented its financials.

The difference, however, lies in Satyam over-stating its revenue, cash position and profits, while Maytas Infra under- stated its profit in April-June quarter and the discrepancies were "duly accounted for" in the company's books later.

While the role of auditors in Satyam fiasco is questionable as of now, it was statutory auditors of Maytas Infra who pointed out the under-statement in its books.

"The statutory auditors of the company in their limited review report for the quarter ended June 30, 2008, qualified that the company made under-provision for service tax liability and excess provision for deferred tax liability, resulting in a net understatement of profit after tax by Rs 1.60 million for the quarter," Maytas Infra's Vice Chairman B Teja Raju said in the "notes" attached to its quarterly results filed with the Bombay Stock Exchange.

"The said liabilities have been duly accounted for in the books of account in the current reporting period (quarter ended September 30, 2008), added Teja Raju, who is son of Satyam founder and Chairman B Ramalinga Raju.

Ramalinga Raju yesterday announced his resignation as Satyam Chairman after disclosing financial irregularities to the tune of close to Rs 7,800 crore at the company over a period of several years in a development that has emerged as the biggest ever corporate fraud in India.

Raju said that he would have filled the "fictitious assets" with real ones had he been successful in acquiring Maytas Infra and another family-promoted firm Maytas Properties.

On December 16, Satyam had announced acquisition of the two Maytas firms for 1.6 billion dollars, but had to call off the deal within hours after stiff opposition from the investors on corporate governance issues.

Maytas's Teja Raju further said that the company's share of profit in integrated joint ventures in the quarterly results was based on management-certified financial statements of the JVs, which do not present audited or reviewed financial results on a quarterly basis.

He also disclosed that Maytas Infra was yet to fully utilise the funds raised from its IPO over a year ago in October 2007. The company had raised Rs 327.45 crore, while it was yet to utilise Rs 119.83 crore as on September 30.

Maytas Infra today announced that its non-executive chairman R C Sinha has resigned from the board due to "personal reasons."

Shares of Maytas Infra fell by five per cent yesterday to close at Rs 159.05. The markets were closed for trading today.

Via:E.T

Is our Government Working?? Why no Arrest of Raju so far?

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..

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

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

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.

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.

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.

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.

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.