I had warned you on December 17,2008 to SELL SATYAM AND MAYTAS as they would sink further !

I confess,I did not anticipate this bombshell confession of Satyam Promoter,Ramalinga Raju on January 7,2009 which saw the Satyam price Collapsing from Rs 175 to Rs 40 on the same day

However,after Ramalinga Raju,had announced on December 16,2008,the now infamous Satyam’s Proposal to take over Maytas Companies,I had blogged on December 17,2008 to SELL SATYAM AND MAYTAS as they would sink further

The Blog was titled

Satyam becomes Asatyam as Founder Ramalinga becomes Ravana !

Click on https://www.gauravblog.com/?p=413 for full earlier blog,of which some relevant extracts are as below

Shareholders should get out of both,Satyam and Maytas Infrastructure …Both will sink further as it becomes clear and is established that this was not just a Diversification planned by Satyam,but it was a blatant bailout attempt by a Father of His Sons 

Mr B Ramalinga Raju, you’re a Goner !

Auditors Price Waterhouse….You are sealing your own Fate in this Satyam fraud!

The battered auditors of Satyam,Price Waterhouse,have just issued a letter dated January 13,2009 addressed to their Client,Satyam Computer Services Ltd and marked for the attention of the three New Directors in the New Board and the Company Secretary….This Letter is also been cced to SEBI,RBI,BSE,NSE,New York Stock Exchange,ROC,Hyderabad and the Central Board of Direct Taxes

The Letter reads like a Confession of sorts.First a gist of Some important extracts and then later my observations are as below

  • The letter is signed by a Partner (Name Not Given) on behalf of Price Waterhouse.It is not signed by PWC India Chairman,Ramesh Rajan,who ,a few days ago, sent an email to all employees intimating them that they have begun a comprehensive internal review and requesting them not to discuss the Satyam Issue or offer any comments to the Press or external Sources
  • It refers to the Audit Period from Quarter ending June 30,2000 to Quarter ending September 30,2008…that’s Eight and a Half Years that included 34 quarters
  • PW planned and performed the required audit procedures on the Financial Statements Prepared by Management,examined the books and records produced by the Management and relied on Management for Controls over Financial Reporting,Information and Explanations and Verbal and Written Representations
  • In light of the Confession of Fraud by the ex-chairman and promoter of Satyam,Ramalinga Raju,PW warns that their opinions on the financial statements may be rendered inaccurate and unreliable
  • In accordance with the Guidance Note of January 2003 of the ICAI for Revision of the Audit Report and which prescribes steps the auditor must follow to prevent reliance on audit reports under such circumstances,PW has stated that their audit reports and opinions in respect of the Financial Statements for the Audit Period should no longer be relied on
  • In USA,Under GAAP too such a requirement as above is prescribed…Under Sec10A of the US Securities and Exchange Act of 1934,the Information contained in the Chairman’s Letter indicates that an illegal act could have occured.PW advises the Board of Directors to conduct an independent investigation under this US Law section to unearth this illegal act. 
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    Slumdog Millionaire, MHADA and Me !

    Instead of greeting me this morning with “Happy Makar Sankrant, Darling”, my wife got me thinking and argueing with her Greeting ” You’re a Slumdog ! Now, when will you become a Millionaire ! ?”

    India Infoline must have been inspired by Women when it tagged it’s line “It’s all about Money, Honey !”

    I cite to my Wife what happens to Millionaires by reminding her about the Satyam Promoter Millionaire.. actually billlionaire…. and now disgraced and in the snare, Ramalinga Raju….. and the possibility that he must have been inspired and pushed by his wife to do what he did !

    This was really impulsively foolish of me….. “What are you implying !?” was her fierce and threatening response……. I’ve now got to fend for myself and eat out tonight ! 

    She’s told me to get up at 3 am tomorrow morning and stand in the Line at the HDFC Bank Branch to get the Form to apply for the Lottery Allotments of Flats in MHADA Schemes in Mumbai at cheaper than market prices !

    Serves you right, Gaurav, for arguing with your Wife !… you would have won against Aristotle, Plato and Socrates ! 

    Danny Boyle ! could you not have titled your Hit Film anything else but “Slumdog Millionaire” ! 

    Hey! Is Times of India Reading My Blogs ? Headlines Today: Did Raju tip off big lenders?…Blogs on Thurs,Jan 8 and Fri, Jan 9,2009 raises this Issue

    Hey ! Times of India’s Mumbai Edition has this Headline Today

    Did Raju tip off big lenders ? 

    Thanks TOI….you reach out to Millions…..I raised this Issue too on my blog on Thursday,January 8,2009…Check it out Below

    https://www.gauravblog.com/?p=426

     

    NOW TWO MORE SERIOUS QUESTIONS EMERGE IN THIS SORDID SATYAM SAGA UNFOLDING!

    Now Two More Serious questions need to be answered in this continuing Satyam Saga !

    QUESTION NO 1

    DID RAMALINGA RAJU INTIMATE LENDERS TO SELL HIS PLEDGED SHARES BEFORE RELEASING HIS CONFESSION LETTER TO REALISE A BETTER PRICE TO CLEAR MORE OF THE LOAN ? 

    OUESTION NO 2

    NOW WE KNOW WHY THE MAYTAS PROPOSAL WAS STRUCTURED THE WAY IT WAS ! QUESTION IS WHICH ‘BIG FOUR FIRM ‘ CONNIVED WITH SATYAM TO BRING UP THE VALUE OF THE MAYTAS DEAL TO US $ 1.6 BILLION ! TO MATCH THE SATYAM ASSET HOLE ?

    Also raised the worry on my blog on Friday,January 9,2009 that Larsen’s Fatal Investment in Satyam from December 23,2008 to January 6,2009 could be their lifting the same Promoter pledged shares sold by lenders

    Check it out on

    https://www.gauravblog.com/?p=431

     

    Larsen Jumps the Gun in Buying 4% into Satyam and sees Big Erosion of over 85% and over Rs 300 Crs inside just Two Days !…they must file an FIR against Satyam and it’s Chairman,Ramalinga Raju

    Larsen was probably ill advised to buy a 4% Stake in Satyam at undisclosed price…Definitely over Rs 100 asY.M. Deosthalee told Dow Jones Newswires by telephone that the company acquired the stake over ten days ending Tuesday through its L&T Capital arm.

    Larsen now holds close to 2.70 crore shares in Satyam at Investment cost of over probably  between Rs 350 crs to Rs 450 crs….On Wednesday,January 7,Satyam opened at Rs 175 but closed at Rs 40 after Ramalinga Raju’s Confession of a massive Fraud…Today Satyam has sunk even lower to Rs 20…Larsen’s holding in Satyam is worth just Rs 54 Crores inside days…It has lost over 85 % and @ over Rs 300 crs notionally inside two days !…it will have to mark the investment to market

    There is also the grave posssibility that L & T Capital may have picked up the same 4 % of Equity sold by the Lenders to Ramalinga Raju on his pledged shares…If this is so,then Ramalinga Raju may have awaited this sale at High Prices before releasing his Confession Letter on January 7,2009

    Larsen must not let Satyam and Ramalinga Raju get away with this ! 

    The Share Price of Larsen has also eroded by 15% to below Rs 700 in quick time

    Twisting some Nursery Rhymes for Satyam’s Ramalinga Raju

    Raju Raju sat on the wall
    Raju Raju had a great fall
    Balance sheet died
    Shareholders cried
    Raju Raju made a fraud

     
    Raju Raju
    Yes baba
    Cheating us
    No baba
    Telling Lies
    No baba
    Open the balance sheet
    HA HA HA

     (Thanks VGP) 

     

     

    Larsen Jumps the Gun in Buying 4% into Satyam and sees Big Erosion of over 85% and over Rs 300 Crs inside just Two Days !…they must file an FIR against Satyam and it’s Chairman,Ramalinga Raju

    Larsen was probably ill advised to buy a 4% Stake in Satyam at undisclosed price…Definitely over Rs 100 asY.M. Deosthalee told Dow Jones Newswires by telephone that the company acquired the stake over ten days ending Tuesday through its L&T Capital arm.

    This would mean L & T Capital,through whom Larsen bought the Stake,paid Prices of between Rs 114 to Rs 180 which were the Low and High in Satyam over the days of the Purchase

    Larsen now holds close to 2.70 crore shares in Satyam at Investment cost of over probably  between Rs 350 crs to Rs 450 crs….On Wednesday,January 7,Satyam opened at Rs 175 but closed at Rs 40 after Ramalinga Raju’s Confession of a massive Fraud…Today Satyam has sunk even lower to Rs 20…Larsen’s holding in Satyam is worth just Rs 54 Crores inside days…It has lost over 85 % and @ over Rs 300 crs notionally inside two days !…it will have to mark the investment to market

    If Satyam ceases to exist,so will it’s Equity and Larsen would have lost over Rs 350 crs

    Larsen just jumped the Gun Here !…Sure some in Larsen will lose their Jobs !

    They were clearly ill advised to take this Risk and Methinks should take the Lead in Filing a FIR against Satyam and Ramalinga Raju for the Fraud and even the auditors for not spotting the Asset Hole 

    There is also the grave posssibility that L & T Capital may have picked up the same 4 % of Equity sold by the Lenders to Ramalinga Raju on his pledged shares…If this is so,then Ramalinga Raju may have awaited this sale at High Prices before releasing his Confession Letter on January 7,2009

    Larsen must not let Satyam and Ramalinga Raju get away with this ! 

    The Share Price of Larsen has also eroded by 15% to below Rs 700 in quick time