Press Meet of interim Satyam Management : Most uninspiring

Most uninspiring is the word that best describes the latest press meet hosted by interim Satyam Management. Mr. Ram Mynampati, the interim CEO chosen by none other than the disgraced former Chairman Mr.Ramalinga Raju, faced the media. The points he made are
  1. He and the other task force members didn't know about the past financial misstatements till Ramalinga Raju mailed his statements to Board members and exchanges.
  2. Even till this time, he didn't know about the real financial status of the company. He told that 36 hours was not sufficient to know the blunders of 10 years. He is not sure that he can give salary to his staffs in Jan 2009.
  3. Their investment banker, Bank of America, terminated their association but trying hard to find an investment banker to explore all possibilities including selling of the company.
  4. They didn't contact their auditor PwC till now. Like you and me, he also only able to read PwC's press statement from News Papers.
  5. None of the business heads and business associates of the company have the privilege to know the overall financial picture. (The fact is that Mr. Ram Mynampati is a board member ,Close confident of Mr.Raju and he must have known the facts). Only CFO office consolidate the same. CFO resigned but the resignation is not accepted. But, Mr. Ram Mynampati expects the CFO would come to office on Monday and explain everything to him. He himself confessed that the entire task force didn't have financial acumen to understand and calculate margins and gross profit.
  6. They are updating the developments to their top 100 clients who are contributing 80% of company revenue. ( This 80% is based on financial statements they themselves admitted as unreliable)
  7. He didn't know the whereabouts of his former chairman ( During the press meet, he referred Raju as chairman only) and assumes that he is in Hyderabad.
  8. He didn't know the reasons why his former Chairman chosen to write a unsigned mail (legally not valid)to Board members to reveal very important facts .
  9. As he still verifying the facts, he think it is not appropriate to file a police complaint against his former boss. ( For the past 10 years he lied and all believed him. Now he himself made some confessions. But now the company wanted to verify the facts and give time his former chief to device escape routes).
Impressions of Investchips
The company is still strongly under the control of Ramalinga Raju. They are buying time to destroy legal evidences against Raju. Their main (In fact, only) assets their employees. Raju may have diverted Satyam funds to acquire his real estate investments and for bribing Andhra politicians. Only fools can believe a company like satyam had only 3% margins. In the interest of the welfare of the employees, the company should be merged with Infosys or else be given to Anil Ambani group. Priority should be given to sustaining the company than to punish Raju. Auditing regulations must be made more stringent and more accountable. Role of independent directors should be widened and they be empowered with more legal powers. The entire board including Mr. Ram Mynampati and independent directors should resign in due course to be replaced with ethical and competent individuals. Other software companies should give preference to the retrenched Satyam employees in their new recruitment. Government should announce some EMI holiday packages ( 6months to 1 year) for the loans taken by Satyam employees.
Shareholders can sell their shares as no value left at this juncture.

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