Satyam computer informed the market today that they have appointed new Auditing company which would take care of auditing from now on and they have the important job of getting the third qtr 2008-2009 results.Satyam informed that Deloitte and KPMG, both part of the Big Four accounting firms as joint statutory auditors for Satyam Computer Services.
Read more details here.
We already know that Satyam is one of the blacklisted company by world bank and now two more indian company is there , one is Megasoft consultant which is not a listed company but the third copmpay is none other than Wipro Technology , its because Wipro kind of allowed some of the world bank employees to buy the ADR at the IPO price which it should have not allowed has made World bank to say that in June 2007 the company would be ineligible for the bank’s direct contracts up to 2011 citing a conflict of interest policy. But the Income that was out of World Bank is kind of eveyr small and it doesnt really affect the financials.
Here is the Statement released by Wipro on behalf of this to BSE.
Indian Government which dissolved the whole satyam board not sure if its to safeguard Satyam Computers or the Satyam involved in the Satyam Computer services fraud.It informed that they have appointed the first 3 members of the 10 Member board and its appointed by the Ministry of Corporate Affairs.They will first form the Board of directors panel.
The members are:
1. Mr. Deepak S. Parekh, (Chairman of HDFC)
2. Mr. Kiran Karnik, (Former President of NASSCOM)
3. Mr. C. Achuthan, (Director at the National Stock Exchange, former Member of SEBI, and former Chairman of Securities Appellate Tribunal.)
I will write down some profile on all these directors as a separate post.
Trading on Satyam ADS had been stopped in NYSE for almost 3 days now from January 7th 2009 to now .NYSE told they are still assessing and they dint come to any conclusions yet.But its expected that Trading on the NYSE may resume on Monday, January 12, 2009, as the NYSE continues its assessment. The NYSE notes that it may, at any time, suspend a security if it believes continued dealings in the security are not advisable.This is the same when it comes to Euro next Amsterdam and Satyam is also subject to the assessment over that exchange.The way how its going now with appointment of directors and everything one may never know it might get listed next week .
Satyam Computer Services is barred from doing business with World Bank for the next 8 years this is kind of blow to satyam which is like trying to get out of the acquisition mess of Maytas Infra and Maytas Properties.There is some confirmed news in FOX new service that is saying this that st least in the earlier case of acquisition there is not direct impact in the revenue but this is big and it impacts the projects that they would have got from world bank and also this will impact the Clients Confidence of any Banks that they might get project from .The reason for barring i heard is that they provided improper benefits to bank staff and failed to maintain documentation to support fees charged for its subcontractors.
This came into effect from February and from that moment to September think it was temporary barring and now they have may be come out with the verdict after September.So today there was some rumor also that the President Ramalinga Raju is resigning and not sure if it was true the stock saw some pressure and closed at 140 , tomorrow will be more interesting to see.Already the stock got down by 13 to 15 percent today in ADR.