Satyam decides process to bring in investor
The approval from the
Company Law Board
for finding a strategic investor for the beleaguered Satyam Computer Services will certainly be welcome news for the shocked employees of the company as well as the investors. In this regard, the board has finalized the procedural points for the interested companies to submit their suits accordingly. The board also put its stamp on the decision of canceling the contract of statutory auditor Price Water. The search for the new auditor is on.
The much criticized company since January 7th this year, when its chairman disclosed the hegemony going on for the last few years manipulating Staym’s account books, is under the scrutiny of many governing bodies of the government. The new board after taking charge has taken decisions, which seem to throw results in the near future. Although the first case has been filed against the tainted chairman
Ramalinga Raju, yet the matter will go a long way to convict him and others because of complicated judicial procedures in India.
Being the 4th largest Information Technology in the country (India), the confessional letter of Raju immediately got attention of the media and other institutional bodies due to their accountable responsibilities for checks and balances of the corporate share holding companies. Apart from shifting money from the company for his desired use, Raju indulged in showing inflated results in the Satyam books of account, and his CFO
Valdamani was hand in glove with him in this respect, it is believed.
All problems started when the old Satyam board gave its consent to acquire the Infrastructure Company Maytas for a sum believed to be much more than its valuation. The decision was negated by the share holders of Satyam, and since then the chairman was under pressure from all quarters related with Satyam. The exact reason for his confessional letter to SEBI is unknown at this moment, but knowledgeable sources predict that he probably guessed the leakage of his fraud. Maytas is a company solely owned and run by Raju’s son and family members. So, it is not difficult to comprehend that he tried to promote his son through the take over of Maytas at the cost of Satyam.
This news of CLB’s approval for finding a strategic investor has induced the company to be a good bait once again.
Over and above this news, the company has indicated a good amount of order has been received recently. One of the directors of the new board,
Mr. Manoharan disclosed that some banks have come forward to fund the company. All together it can be summarized that the Satyam will have a better future in the months to come.
The interested parties to acquire Satyam are;
L & T, Hinduja Group,
Spice Group of B. K. Modi, and
Tech Mahindra.