Satyam: Full text of Raju’s letter to the Board-2

would like the board to know:      

 

 

1. That neither myself, not the Managing Director(including our spouses) sold any shares in the last eight years-excepting for a small proportion declared and sold for philanthropic purposes.

 

2. That in the last two years a net amount of Rs 1,230 crore was arranged to Satyam (not reflected in the books of Satyam) to keep the operations going by resorting to pledging all the promoter shares and raising funds from know sources by giving all kinds of assurances (Statement enclosed, only to the members of the board). Significant dividend payments, acquisitions, capital expenditure to provide for growth did not help matters. Every attempt was made to keep the wheel moving and to ensure prompt payment of salaries to the associates. The last straw was the selling of most of the pledged share by the lenders on account of margin triggers.

 

3. That neither me, nor the Managing Director took even one rupee/dollar from the company and have not benefitted in financial terms on account of the inflated results.

 

4. None of the board members, past or present, had any knowledge of the situation in which the company is placed. Even business leaders and senior executives in the company, such as Ram Mynampati, Subu D T R Anand, Kesab Panda, Virender Agarwal, A S Murthy, Hari T, S V Krishnan, Vijay Prasad, Manish Mehta, Murali V, Sriram Papani, Kiran Kavale, Joe Lagioia. Ravindra Penu Metsa, Jayaraman and Prabhakar Gupta are unaware of the real situation as against the books of accounts. None of my or managing directors immediate or extended family members has any ideas about these issues.

 

 

Having put the facts before you, I leave it to the wisdom of the board to take the matters forward. However, I am also taking the liberty to 

recommend the following steps:

 

more in next post

ref: The Economic Times

Satyam: Full text of Raju’s letter to the Board-1

To the Board of Directors Satyam’s board members

 

Satyam Computers Services Ltd.

 

From B. Ramalinga Raju

Chairman, Satyam Computer Servcies Ltd

 

Dear Board Members,

 

It is with deep regret, and tremendous burden that I am carrying on my conscience, that I would like to bring the following facts to your notice:

 

1. The balance sheet carries as of September 30, 2008

 

a) Inflated (non-existent) cash and bank balance of Rs 5,040 crore (as against Rs 5361 crore refglected in the books)

 

b) An accured interest of Rs 376 crore which is non-existent

 

c) An understated liability of Rs 1,230 crore on account of funds arranged by me

 

d) An over stated debtor position of Rs 490 crore (as against Rs 2651 reflected in the books)

 

2. For the September quarter (Q2) we reported a revenue of Rs 2,700 crore and an operating margin of Rs 649 crore (24 per cent of revenues) as against the actual revenues of Rs 2,112 crore and an actual operating margin of Rs 61 crore (3 per cent of revenue). This has resulted in artificial cash and bank balances going up by Rs 588 crore in Q2 alone.

 

 

The gap in the balance sheet has arisen purely on account of inflated profits over a period of last several  years (limited only to Satyam standalone, books of subsidiaries reflecting true performance). What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years. It has attained unmanageable proportions as the size of the company operations grew significantly (annualized revenue run rate of Rs 11,276 crore in the September quarter, 2008 and official reserves  of Rs 8.392 crore). The differential in the real profits and the one reflected in the books was further accentuated by the fact that the company had to carry additional  resources and assets to justify higher level of operations – thereby significantly increasing the costs.

 

Every attempt made to eliminate the gap failed. As the promoters held a small percentage of equity, the concern was the poor performance would result in a takeover, thereby exposing the gap. It was like riding a tiger, not knowing how to get off without being eaten.

 

The aborted Maytas acquisition deal was the last attempt to fill the fictitious assets with real ones. Maytas’ investors were convinced that this is a good divestment opportunity and a strategic fit. Once Satyam’s problem was solved, it was hoped that Maytas payments can be delayed. But that was not to be. What followed in the last several days is common knowledge.

 

More in next post…..

 

ref: The Economic Times

Satyam Computers-Ram Mynampati, Interim CEO

Satyam computers under Indian’s largest company fraud. Read the transcript of recorded video message by Ram Mynampati, Interim CEO.

 

I am shocked and distressed by the disclosures coming from the organization. I can certainly understand and empathize with the pain that every one of you would be going through based on the events of today.

 

The Board has requested that I assume the role of the Interim CEO to ensure the sustenance of the operations of the organization.

 

The Board will meet as scheduled on January 10 to discuss the issues that we have already communicated as well as actions emanating from the events of today.

 

The most important thing, I believe, we need to address is the interest of the stakeholders – our associates, our customers and the suppliers.

 

The entire senior management team has come together not only to assess the impact of the disclosures but also to take specific steps to ensure continuity of operations across geographies.

 

I am confident that with the senior management team with me we would be able to quickly put the issues behind us and ensure continuity of our operations and our services delivered to our customers.

 

I also want to mention that the events today would largely be limited to one specific organization and should no way be construed as issues relating to the broader Indian IT industry, which continues to thrive and succeed in a broader competitive landscape.

 

I also want to assure you that we will do everything that we can as an organization to ensure that the stakeholders’ interests are protected and addressed. I would request your understanding and cooperation as we continue to confront challenging times for us.

 

Thank you.

Terror evidence in Indian dossier credible: US

Good Evening friends,

Indian government is saying from long time that those terrorist were Pakistanis and Pakistan is involve in to that. Last week Indian home minister give those evidence to different world leaders. I read this news at times of india website. Us says that terror evidence in Indian dossier are credible. This statement says too many things about india as well as about Pakistan too.

 

The evidence contained in the dossier given by India to Pakistan about the involvement of Pakistanis in the November 26 Mumbai attacks is  “credible”, the US ambassador to New Delhi David Mulford said on Wednesday.

 

“What was disturbing that the attack was carried out from the territory of Pakistan,” Mulford said during an hourlong interaction with the editors of The Times of India.

 

The 69-page dossier based on the investigations carried out so far was given by India to Pakistan and the ambassadors of many other countries, including the US, on Tuesday.

 

Rejecting the suggestion that India and the US may not be “on the same page” in dealing with Pakistan on the Mumbai attack issue, the US ambassador said: “We are absolutely on the same ground.” “When somebody kills Americans somewhere we go after him,” he added.

The knowledge superpower – 2

Nanotechnology, with the ability of providing tools to control, manipulate and construct materials at nano-metre scales, in combination with bio, promises unique solution in diseases like cancer. Khandelwal Laboratories has developed a patented technology on Gene Repair Therapy to stimulate dormant genes to cure diseases like cancer and AIDS and promoting research in nanodrug and drug delivery techniques.

The penetration of ICT to grassroots levels, achieved by voice, video and data networks have been phenomenal. Indian Railways’ Passenger Reservation System is a notable example.

Satellite mapping tool ‘Bhuvan’ that is getting ready at ISRO is going to have a great impact on general public and in addressing problems like floods, famines, infrastructure development, education and so on. This will contribute to synergetic application.

India’s space programme operates one of the largest domestic communication satellite systems and the largest constellation of remote sensing satellites built indigenously. Nearly 211 transponders of INSAT and GSAT communication satellites support a variety of communication and broadcasting applications including telemedicine and distance education.

Similarly, Indian remote sensing satellites provide a host of societal and natural resource management inputs in areas relating to agriculture, forestry, water resources and ocean studies to name a few. Meteorological data from geosynchronous satellites like Kalpana are critical to weather prediction and disaster management.

Ref: thetimesofindia

The knowledge superpower – 1

Science and technology have played a pivotal role in embarking the country on a mission to reach equality with the rest of the world. In post-independence India, Nehru set the tone for scientific and technological progress with the early steps of establishing institutions like the Council of Scientific and Industrial Research as well as those dedicated to higher education and research.

Today there are government departments and privately funded institutions dedicated to advancement of science and technology in various disciplines. This article will highlight examples of pioneering and path breaking advances in Indian science and technology that have either already made a mark or bear the promise of doing so.

In bio-technology sector, India has emerged as one of the top five leaders in the Asia-Pacific region. Indian biopharma and the agri-biotech industries have notched up significant success, being the largest vaccine producer in the world and the largest cultivator of Bt cotton.

Bio-informatics has created extensive electronic databases on several biological systems, after biopharma and agri-biotech industries and is the third in revenue generation. India’s biotech sector today comprises 350 firms generating nearly $2 billion in revenue and is estimated to grow into a $5 billion enterprise by 2010.

Ref: thetimesofindia

Foreigners flock to Vibrant Gujarat

Good Evening friends,

Being Amadavadi and Gujarati I am so exited with the vibrant Gujarat. Our Chieft Minister Narandra Modi did lots of effort to make it happen that delegates from 30 countries are going to take part in vibrant Gujarat. I am sure person who can understand the effort our CM and government doing to bring my state up. Keep it up Sir Narandra Modi. We all love you and we all with you.

 

When Narendra Modi sat with his think-tank in early August to plan the Vibrant Gujarat show in January 2009, the one issue which was discussed most extensively was foreign participation. For, FDI constituted a meager one per cent of the total investment pledged during the summit in 2007. Just about a dozen companies came on exploratory trips then.

 

This time, however, the world is opening up to a vibrant Gujarat which had slid in the world’s view after the 2002 riots. Nearly 400 foreign delegates from 30 countries are arriving, most of them looking for business opportunities. Nearly 60 companies from around the world will participate. There will also be an army of diplomats and parliamentarians who are warming up to Gujarat and Modi for the first time.

 

The reason is simple. Modi has been able to market Gujarat as an excellent investment destination even in this age of global meltdown. His officials and ministers went on tours to several corners of the world, hard-selling the state and its pivotal location along the Delhi Mumbai Industrial Corridor (DMIC).

 

Modi himself met envoys and consuls in separate meetings in Delhi and Mumbai in October 2008. Even some envoys from European Union (EU) nations, which do not allow Modi to visit their countries, were present at these meetings.

 

The list of participants gives out a clear trend of a changing perception about Gujarat. Where governments are still reluctant to be seen in Modi’s company, conglomerates are rushing to sign MoUs. In a couple of cases, while the governments are taking time to warm up themselves, they are sending in parliamentary delegations to get a feel of a new Gujarat.

City takes to English medium schools

Good morning friends.  English speaking is a very important.  It is the universal language.  In any place in the world everyone should know how.  I’m sure every mother will be happy to hear that there will be a stud, a program or a training for English speaking. 

Winds of change are sweeping city schools with prestigious institutions now embracing English as a medium of instruction in view of changing times and demands of parents.

Sheth CN Vidyalaya, established in 1926, will be the most recent school to offer English medium from academic year beginning June 2009.

“We have realised that we can’t remain immune to the fact that English is the global language and our students need to be fluent in it to face the future with confidence,” says SK Shah, trustee of the school.  It has been receiving demands, mostly from mothers, who want their children to have an edge by studying in an English medium school. “They want their kids to study in CN, but in English medium,” explains Shah.

Authorities of CN, which has the largest campus in Asia spread over 72 acres, wanted to go English last year, but had to stall plans as they didn’t get the right candidate for principal.

CN will be the third school to start English medium after establishing itself as a reputed Gujrati medium school with students regularly figuring in state board merit lists.

Four years ago, Shardamandir High School started offering English as a medium of instruction succumbing to pressure from Gujarati parents belonging to elite families.

“Most of our students are reputed doctors, engineers and entrepreneurs of the city and they constantly egged us to offer English to benefit their wards. We had to do so to retain children of our esteemed students,” says Dinubhai Dave, trustee of Shardamandir.

Diwan Ballubhai Group, which has schools in Kankaria and Paldi, has also started English medium sections.

ref: thetimesofindia

Gigantic globe to adorn Vibrant Gujarat meet

The world will be watching, literally. As investors from across the world pour into Ahmedabad on January 12 for the Vibrant Gujarat Global Investors’ Summit, a huge globe will tower over the ceremonies at Gujarat Science City here, venue for the meet.

This unique structure called Planet Earth is a steel and concrete dome 54 m in diameter and 27 m in height that lets you go through natural disasters like earthquakes, volcanoes and landslides with a simulated experience. The project began in October 2004 and while the construction work is over, the exhibits are to be opened for public soon.

You could soon experience the whole world shaking beneath your feet as if in a real-life earthquake, then get trapped in the ferocity of giant tsunami waves and later battle with the heat of volcanic eruptions with molten lava flowing out. But you come out safe and sound.

“People should know more about the planet we live in a more realistic manner,” says Saroj Ghosh, advisor to Science City and former director general of National Council of Science Museum.

“The different types of walking and hands-on exhibits on natural disasters, resources of planet Earth, among others, have never showcased in the country so far,” adds Ghosh.

The three-tier balcony inside the dome will take visitors into the “interiors” of earth a simulated elevator ride to the depths of earth. The section on atmosphere will have animated exhibits showing the earth’s atmosphere in different layers.

“The globe, spread over 6,600 square metre, was first designed separately and then brought together to give it a dome-structure. Along with the water body along the globe, it covers 9,000 sq m area,” says Ghosh.

Asian Development Bank, Gujarat State Disaster Management Authority and the government of Gujarat have funded the Rs 32 crore project.

“Planet Earth will showcase the exquisite beauty and science of the planet we live in. The pavilion will educate people on the natural resources and the importance of conservation,” says DB Mehta, executive director of Science City.

ref:  thetimesofindia

New Year Eve with skydiving show

Good morning friends, Happy and prosperous New Year from Dhirendra. I wish New Year brings new and positive energy in the life of all. Things look positive in first two day of 2009. Indian stock market also responded with more than 200 point gain on first day trading of 2009.

 

Our New Year eve was with skydiving show at kakaria Lake. Around 75000 amdavadis got a gift on New Year’s Eve as they got to see breath-taking stunts by para-troopers who dived from 6,000 feet and set their Drop zone as Kankaria Lake on Wednesday. I and my family were there at Kankaria lake and view big balloons and advertising balloons. The view of advertising balloons in the sky makes my son happy. I tell him to show helium balloons and advertising blimps when we are going to visit to US in 2009.  At kankaria Lake, it was combination of experience and youth. When 3 divers of different age group with different experience jump in to sky and later diving into the water makes all viewer exited.

 

Everyone greeted their sight in the sky and later applauded their death-defying stunt on their return to ground. My son was so exited to view them. He used to view that in TV and cartoon serials. He view paratroopers live. I like to give Credit to kankaria carnival which makes it possible for all to view such thrilling events in live. I want to say to Gujarat government to keep it up and have such public entertainment event again and again.