SATYAM CASE UPDATES
1. The day before Ramalinga Raju admitted to accounting irregularities at Satyam, a US federal appeals court threw out former Enron CEO Jeff Skilling's 24-year prison term and ordered a resentencing.
2.19 CASE OF INTERNAL TRADING AND lying to auditors have been registered by US court.
Internal trading is same as in satyam case ,penalty for it is(Rs 25 crore in India).
3.Sebi is following the possibilities of insider trading (as well as reviewing the accounting statements of all Nifty and Sensex companies),
4.Mr.NARAYAN MURTHY REACTION :"Now that there is a government appointed board, we should stop second-guessing. The three board members are competent. They are excellent people, with lots of experience". They have managed many crises," Murthy told IANS on the sidelines of a technology conference .
This case is a warning for management of other firms.
5.Asserting that financial bungling by Satyam Computer will have no impact on Indian economy, the Planning Commission said the Indian capital market is fully capable of dealing with the problems emerging from this case.(http://www.business-standard.com/india/news/satyam-case-not-to-impact-economy-planning-commission/15/01/52394/on)
6.New board includes

Mr. Deepak S. Parekh, Chairman of HDFC
Mr. Kiran Karnik, former President of NASSCOM
Mr. C. Achuthan, Director at the National Stock Exchange, former Member of SEBI, and former Chairman of Securities Appellate Tribunal.
OUR OPINION REGARDING THE ISSUE
Watching the Satyam interview on TV yesterday, several thoughts came to mind. First the possible outcomes and executive summary of conclusions :
Vadlamani, the CFO, will disappear; Ramalinga Raju, having consulted his lawyers and covered his flanks by whatever means, will blame it on Vadlamani’s evil genius to which he succumbed.
There was trouble with the Zoo’s books of accounts, he will say. He had bought a lot of meat yet, the animals had nothing to eat. He, as the Zookeeper, will have to own responsibility . Vadlamani, Raju will say, transformed himself into the cunning tiger in the cage that stole the meat and sold it privately elsewhere. It came to light that Tiger-V was the first to cook the books. The zookeeper looked into the matter and found that some of the missing meat had been supplied gratis to his home. He was aghast. That’s when tiger V broke loose and Rambo Raju got on to its back in an attempt to tame it. He tried hard to get the tiger back into the cage and himself off its back, to safety. In this process, a lot of people and other zoo animals got hurt and there was a hue and cry about safety standards in the zoo. Security agencies, the SPCA , Zoologists, Veterinarians and the Ministers for the Environment and Animal Husbandry were interviewed by the Press. What were they going to do about the Zoo ? they were asked
Meanwhile, the tiger and the zookeeper, on the advise of the legal eagles that are perched on high and are aware of the situation, go into hiding in the jungles of law from where a statement drafted by an eagle is issued in the name of the zookeeper. A temporary zookeeper is appointed to assess the situation in the zoo , tend to the wounded and the worried and to keep the other animals of the zoo in place so that paying visitors to the zoo can be entertained as usual .
QUESTION FOR READER:
WHAT COULD BE THE POSSIBLE WAY FOR SATYAM TO GET BACK ON TRACK?

Sweet deal for Tata to invest in Gujarat

A Sweet Deal for Tata: 30,000 crore from Gujarat Govt.
http://www.pioneermanagers.blogspot.com
A recently leaked Gujarati government document provides insight into why Tata moved the Nano project to Sanand. Tata got quite a deal. The BJP-led government is providing the following:
1) A soft loan of Rs. 9,570 crore at an interest rate of .1% AND deferred payment of 20 years.Prior at singur tatas were getting less amount of loan at 1%;
2) Meeting all the costs of infrastructure development for the Nano manufacturing site;
3) A cut in power tariff rates; and
4) Rs. 700 crore to shift machinery from Singur to Sanand.
According to the Congress party’s calculations (which is in opposition in Gujarat), the loan and tax concessions total up to 30,000 crore in benefits for Tata over the next 20 years. Let's put that number into perspective: if Tata produces 50 lakh Nano cars during this time, the government handout would be the equivalent to Rs. 60,000 for each car rolled out. That’s 60% of the sticker price for the 1 lakh Nano car.

Personally, the numbers don’t shock me most. The fact that such a deal would not be publicly transparent, and would need to be leaked for the public to be aware when taxpayer money is truly financing the project, is what shocks me most. What kind of deals do state and local government make behind closed doors? Are these types of state government handouts typical in trying to bring businesses to their state?

when prices drive GDP

pioneermanagers.blogspot.com