Bad News - Satyam

[DTM]

BANGALORE (Reuters) - The chairman of India's embattled Satyam Computer Services (Bombay:SATY.BO - News) resigned on Wednesday and said the company's profits had been inflated over the last several years, sending the stock down 60 percent.
The shocking revelation comes after India's fourth-largest outsourcer's botched attempt last month to buy two construction firms in which the company's founders held stakes and key customer World Bank dropping its ties with the outsourcing company.
"The gap in the balance sheet has arisen purely on account of inflated profits over a period of last several years," Satyam Chairman Ramalinga Raju said in a statement to stock exchanges on Wednesday.
Satyam's woes make it one of India's most high-profile company scandals in recent years. The comments from Satyam sent Indian equity markets in a tailspin, with Bombay's main benchmark index (Bombay:^BSESN - News) falling 3.9 percent.
Satyam, which specializes in business software and back-office services for clients such as General Electric (GE - News), and Nestle (VTX:NESN.VX - News), was due to hold a board meeting on January 10 to consider a buyback following a rash of broker downgrades even after the acquisitions were called off.
"I think there is no future for this stock. This case for India is similar to what happened to Enron in the U.S.," said Jigar Shah, senior vice-president at Kim Eng Securities.
"It will not stop at Satyam. Many more companies will come into scrutiny like that. There is a strong possibility investments in India will be affected."

CAN INDIANS TRUST THE MARKETS AND THE EXCHANGES NOW ? WHAT DO YOU THINK ? WILL GOLD SHOOT UP ?

[Ajay.Joglekar]

Foreign investment in india is f*&^ed now. What else is there to say? How can foreigners trust indian markets if such a large scale fraud can go on undetected for years. Not to say that they are any better off ... what with the Madoff ponzi scheme and all but we are an emerging market. This is a serious serious black spot on our cloth.

[Prashanth]

Foreign investment in india is fucked now. What else is there to say? How can foreigners trust indian markets if such a large scale fraud can go on undetected for years. Not to say that they are any better off ... what with the Madoff ponzi scheme and all but we are an emerging market. This is a serious serious black spot on our cloth.

Black spot, Yes. Regarding trust, well, end of the day, everyone wants his share of the pie. Noise will eventually die down. Hopefully, this can lead to stricter compliance though I doubt that once the mess has settled, anything will get done.

Afterall, if US did not learn after the LTCM scam, how can a emerging country like ours be any different.

[PLATO]

The result is : It will never be the same market for anyone in the world. In fact I was hearing that the westerners were developing great confidence in Indian Markets.:o

[DTM]

Please figure which are the companies from the list are fraudulent. All the companies in the list are not bad.

Apar Inds.
Apeejay Tea
APW President
Arshiya Intl
Assam Carbon Pr
Automotive Stamp
Bayer CropScien
Beeyu Overseas
Bimetal Bearings
Blue Dart Exp.
Bosch
Bosch Rexroth
California Soft.
Century Enka
Chemplast Sanmar
Colgate Palmoliv
Coromandel Fert
Cummins India
D P S C
Denso India
Dynamatic Tech.
Elpro Intl.
English Ind.Clay
Entertainment Nt
Gabriel India
Gateway Distpark
Gillanders Arbut
GIS
Glaxosmit Pharma
GlaxoSmith C H L
Glenmark Pharma
GMR Inds.
GMR Infra.
Goodyear India
Graphite India
Great Eastern En
Guj Gas Company
Harr. Malayalam
HCL Infosystems
HCL Technologies
Hikal
Hind.Powerplus
Hinduja Ventures
Holman Climax
Honeywell Auto
Hooghly Flour
HTMT Global
IFGL Refractor
Ineos ABS (India
Info Edge (India
Infotech Enterpr
Ingersoll-Rand
Insilco
Jagran Prakashan
Kanumanek Trad.
Karamch.Thapar
Kennametal India
Kesoram Inds.
Lanco Infratech
Marico
Maruti Suzuki
Mastek
Max India
Mcleod Russel
Millennium Beer
Morganite Crucib
Moser Baer (I)
Motherson Sumi
NDTV
Nicco Parks
NIIT
NIIT Tech.
Northgate Techno
Orissa Extrusion
Parry Agro Inds
Perfect Circle I
Phillips Carbon
Piramal Health
Piramal Life
PVP Ventures
Rain Calcining
Rain Commodities
Rane (Madras)
Rane Brake Lin
Religare Enter
Religare Global
S.N. Sunderson
Saint-Gob. Sekur
Samtel Color
Sanderson Inds.
Saregama India
Satyam Computer
Schrader Duncan
Simplex Infra
South Asian Fin.
Sparsh BPO
Spentex Inds.
Stewarts & Lloyd
Subhkam Capital
Sulzer India
Swaraj Mazda
Swojas Energy
T.V. Today
TIL
Tinplate Co.
Trigyn Techno.
Tudor India
United Breweries
United Spirits
Usha Martin
UT
UTV Software
Vijay Inds.
Warren Tea
Welspun India
Wyeth
Zensar Technolgs

[DTM]

Hi !

After reading what has appeared in the papers, and the future of 55K employees on the anvil, I think the Govt and the State Govt will have to act. It cannot be denied that now the asset of the company is the employees and the customers. I am sure some one will surely like to exploit this.

Under this circumstances, if its share is not going to be banned on the excchanges, should one buy Satyam now at a throw-away prices or @ Rs. 10.00 if it touches that level? Rs. 10K or even less is worth taking risk. What say ?

This is not a suggestion. Just a thought which came to my mind.

[achinj]

Each system has its own failure and nothing is failure proof. But what we learn from those failures is important.
Mind you i am not saying what in Satyam is ok.

i am not able to adjust the idea of Govt helping Satyam bcoz of 55k employees(are these number real atleat). What harm has employees of other failed concerns has done so that they are not getting any similar benefits.
They are also employees and Indians too.

Is not failing with a big bang and noise and scale only fault from them?

Going to Govt with expectation of the help would send the wrong signals i believe (though States govt is doing the same).

Before jumping to the solutions we should look at the actual problem and the scale of the problem.

Just my thoughts and NoM :D

Cheers

[alexissamantha]

Yeah its really a very bad news and lots of employees lost their jobs,,,,,