- Satyam pays you because you are their employee - don't be obsessive - if you think its time to move on - you should
- Don't think of Stock Options that you are left out with, etc .. Satyam stock will take a miracle to recover - remember the liabilities that your big chor boss mentioned was to a tune of 1200 crores - any company that takes over your company will have to bear it. No one knows the real figure - who knows if Raju was bad in math as well!
- Don't depend on mergers or acquisitions - they would be first to lay you off - unless you can muster the Jet Airways kind of agitation - protest in front of YSR!
- It's good to be brave and supportive of your company right now - but you should also try to look out for a new job as well especially when the company's cash position is pathetically low. Remember, they may not be able to pay your salary next month
- Try Linkedin - lot of consultants look out there or general job portal sites like Naukri, Monster
- Find out your old friend's phone number!
- Ask your friends from other companies if they have any openings (VERY VERY HARD in this bad economy)
- Good place to start looking out are start ups, small companies which usually and always are on a look out for good employees - be prepared to slog - no US/UK trips! Pure Work!
- Ask your bosses what your position is - and ask them to update you whatever the news is!
- Now for few finance tips, If you have EMIs - home loan, car loan - save money for them so that you could continue to pay them for few more months without the bank guys squeezing your neck
- Ask your banks if they could extend the EMI term period!
- Take your PF money if you are laid off - should add to a good sum if you are a experienced chappy.
Thursday, January 08, 2009
With a big questions mark on its cash position and a minimum outgo on salary estimated at Rs 500 crore a month, Satyam may lay off over 10,000 employees next month, says a recruitment firm
"It is most likely that Satyam will cut 10,000 jobs next month as the company is left with no cash to pay the salaries. The current fiasco is likely to put pressure on salaries, which may reduce by 10 per cent due to the surplus of about 20,000 people in the jobs market," Headhunters India CEO Kris Lakshmikanth told PTI.
Satyam interim CEO Ram Mynampati while admitting that the cash position is not encouraging, the company, however, has taken care of salary for December.
Lakshmikanth said till Tuesday evening there were about 7,800 people from Satyam who had posted their resumes on job sites and by Wednesday afternoon, it has gone up to 14,000.
The uncertainty about jobs is killingly painful for the 53,000 employees of Satyam, especially when the industry is going slow on recruitment.
Further, possibility of a takeover too looks distant as the accounting fraud done by the company would make it difficult for any firm to evaluate its correct market value, which is compounding the worries of the employees.
IT-BPO union Unites Professionals general secretary Karthik Shekhar said, "In case of any lay off at Satyam, we may take legal action."
"We have received over 7,000 hits since the news break. Yesterday, in one hour we have seen over 800 hits (no of people visiting the site) from Hyderabad. People have been enquiries on how the union can help them," Shekhar added.
via Business Standard
Ramalinga Raju's lawyer said the disgraced Chairman has no plans to avoid the process of law and that he has not fled India. His lawyer said Raju is still in Hyderabad.
Raju's lawyer's letter has ended speculations on the whereabouts of Ramalinga Raju, Former Chairman of Satyam Computers, after he resigned on Wednesday, confessing to a Rs 7,000 crore fraud. Raju could not be contacted after he sent a letter to the Satyam board of directors on Wednesday.
Raju, in an e-mail through his lawyer, said he is ready to face the consequences and that he will make himself available for any legal probe.
On the other hand, an Andhra Pradesh CID official has said there has not been any complaint against either Satyam or Raju thus far.
Ram Mynampeti, interim CEO says
Shocked by disclosures
Aim to ensure business continues uninterrupted
Will work with regulatory bodies closely
Reaching out to customers
Practicing transparency in everything
Outreach to customers, speaking individually to each one
Positively overwhelmed by each employee's passion
Ascertaining liquidity position and verify Raju's statements
Reached out to find new board members
In summary we are focused to sustain ops and assuring customers to end this quickly
Committed to strengthening governance
Have not seen huge attrition
Satyam staff member:
Customers and associates are with us
Customers have shown solidarity
Q: How did the company have only 3% operating margin?
A: We are confronted with this situation for less than 36 hours ago. Most of us are not able to answer such questions. We need to verify the veracity of the statements. What we can say is that we have a good business. We have good visibility on the business we manage and their profitability. None of us have information beyond our groups at this time. We will be in a position to do so after we finish the process.
Q: How is the company functioning without board members? What happens to Price Waterhouse?
A: To correct you I (Ram Mynampati) am a board member and we have two other directors. So the company can function.When we review info in board meetings, we are presented by audited numbers. We have not yet verified Price Waterhouse's process. We have not been in contact with Price Waterhouse, but we will be.
Q: What is your working capital policy? What is your whistleblower policy?
A: We have taken care of salaries for December. We have some outstanding payments due to vendors. The liquidity position is not encouraging. We are looking at options to improve liquidity. CFO Strinivas Vadlamani has resigned but we have not approved it yet. There are a few CAs playing various roles and they have come together to assess the situation. Nobody has been identified to replace the CFO.
Q: What news of chairman and MD?
A: Many senior leaders had a conference call with chairman and MD within half an hour of receiving the letter. They have assured us support. We have not needed them yet; what we need is the CFO's assistance.
Q: What about liquidity?
A: We have verified the balance sheet figures such as receivables. On liquidity we need some assistance for business continuity. Cash on hand is not very encouraging.
Q: Service delivery?
A: We are ensuring that delivery of services happens. Forex for travel etc is taken care of.
Q: Do you anticipate any threat from any major shareholder? The issue is taking a political stance, do you have apprehension?
A: We have to deal with regulators in a transparent fashion. We (senior leaders) do not need to do this for financial reason; we are doing it for emotional reasons.
Q: Why did you not tell us the CFO quit earlier?
A: The resignation has reached today and it has not been accepted. Also, every one of us has a notice period and he will be back in office next week. We are in touch with him.
Satyam today is completely different than what it was yesterday. We are driven today by the stakeholders' interests.
On timing of the press releases
We have a crisis on our hand. We are doing everything we can to deal with the situation expeditiously. We are trying to cope with it in the best way possible.
Q: Are you looking for buyers?
A: We are exploring the option to induct new members, diluting equity and looking at a strategic investor. We need to transition. It can mean that we recast ourselves in a different model. We have to align income and expenses. We will have to operate differently. We need a new investment banker quickly.
Q: Where is Raju?
A: I am assuming he is in Hyderabad, but I do not know.
Q: You did take questions in conferences in the past along with Vadlamani. Why are you not able to answer on margins?
A: If you can recall, the only answers i had on margins was how to improve them.
Q: Regarding your whistleblower policy, irregularities were noticed earlier but not reported...
A: Can you be more specific? Can you site some instances? I cannot recall any.
Q: Who will be the new CFO?
A: There are many individuals who are capable in the orgn or bring external help, which will be decided by the board.
Q: How will you restore shareholder confidence?
A: I appeal to you to understand that the issue we are dealing with is huge. I have not dealt with anything like this in life. We will bring transparency for all stakeholders. But I reiterate I do not know what has happened.
Q: Will you restate results?
A: We have to announce Q3 results by the end of this month, and we will need to assess whether we need to restate. We are a highly matrixed orgn. The central processing office is the one that compiles the corporate results. We are all managing our business verticals.
Q: Why has Raju not signed the letter?
A: Well, that letter was sent from his email to us.
Q: How did board give permission to buy Maytas cos as you have no money?
A: There are decisions made in board on the basis of data available. We take this data on face value. I do not want to make any more comments.
Q: Why don't you file a police complaint against Raju?
A: We need to look at the reality of Raju's statement first before coming to any conclusion.
Q: Do you really have 52,000 employees?
A: At the end of September it was 53,000 and there would be attrition by 2,000 and no new recruitment has happened this quarter.
Q: Do you know if you have the money to last through January?
Today I do not know.
Q: What is your current capacity utilisation? It seems you have a large bench from Raju's letter.
A: We will put that out with the Q3 results.
A: It could have been a number of things - revenues, expenses. I will only be able to answer after assessment.
Lower crude and US stocks drag precious metals lower
Bullion metals ended lower on Wednesday, 07 January, 2009 in spite of the weaker dollar. Generally, a stronger dollar pressures demand for dollar-denominated commodities, such as crude oil and gold, which become more expensive for holders of other currencies and also vice versa. Falling crude prices and losses at US Market dragged bullion metals lower.
On Wednesday, Comex Gold for February delivery fell $24.3 (2.8%) to close at $841.7 an ounce on the New York Mercantile Exchange. This year gold has lost 4.8% till date. Last week, gold prices gained 1%. On 17 March, 2008 prices had skyrocketed to a high of $1,034/ounce. But prices have dropped significantly (15%) since then.
In 2008, gold prices ended higher by 5.5%. The dollar index has gained 12% that year. In the last quarter, gold prices ended marginally higher by 0.6%. For the third quarter ended September, 2008, gold prices ended lower by 5.1%. It was the first quarterly loss for the yellow metal since the second quarter in FY 2007. Prior to that, the yellow metal ended second quarter with a marginal gain of 0.7%. For first quarter prices gained 10.7%.
On Wednesday, Comex silver futures for March delivery fell 41 cents (3%) to $11.105 an ounce. Last week, silver has gained 9%. For 2008, silver lost 24%.
At the currency market on Wednesday, the dollar was down against most major counterparts. The dollar index lost 0.6%.
In the crude market on Wednesday, crude prices fell by almost 12% and closed a little above $42/barrel. The EIA reported today that U.S. crude stockpiles gained 6.7 million barrels to 325.4 million in the week ended 02 January, 2009. Market had expected a buildup of 1.5 million barrels.
Here is a chance for you to indulge in some proof based slander - Let the readers know of the companies you think are shady - have shady dealings, balance sheets
Leave a comment on this post and let everyone know! Freak out!!
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Ram Mynampati has been President of Commercial and Healthcare Businesses of Satyam Computer Services Ltd. since October 2002. Prior to this, Mr. Mynampati served as Executive Vice President of Satyam Computer Services Ltd. from November 2000 to October 2002 and also served as its Chief Operating Officer of Vertical Business Unit-Insurance, Banking & Financial Services, Healthcare since November 2000. Before this, he served as Executive Vice President, Strategic Business ... Units 1, 2 & 4 of Satyam Computer Services Ltd. since 1999. Mr. Mynampati has been Whole Time Director of Satyam Computer Services Ltd. since August 21, 2006. He holds a master of computer science degree from California State University.
Read more on Businessweek
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.
It was like a bolt from the blue for the staff of Satyam Computer Services as the news of Chairman Mr B Ramalinga Raju’s resignation for faking numbers broke out. Not that the staff were not expecting something unusual after the $1.6- billion Satyam-Maytas deal got aborted.
“This is not what we are expecting. We thought that the CEO or CFO might be sacked, making them responsible for the controversial deal. We haven’t expected this fudging business even in our wildest dreams,” a Satyam staffer told Business Line, as he walked into the Info City campus at Madhapur, for his afternoon shift.
The mood was of disbelief and suspense at several of the Satyam offices in Hyderabad.
However, a silver lining is that the over-50,000 employees had received their salary for December.
“I got a zero hike in my evaluation. But I’ve got my salary. That’s enough,” a staffer quipped, as he sipped his tea outside the campus in Madhapur.
In the case of a staffer who had recently been transferred from the US, it was a real shocker.
“They have sacked a few hundreds for fudging travel bills last month, causing the company a loss of few lakhs. But what they did know? They fudged Rs 7,000 crore,” he said.
He is more furious because his bills for a few lakhs are yet to be cleared.
The staff have become the target of rumour mongers. As the word spread that their monies might be struck, scores of employees started lining up at ATMs of ICICI Bank.
Some employees were also worried about repayment of loans.
“As salaries have been paid regularly till now we did not have any problem, but I am uncertain about the future”, Mr M. Ravindra, who took a housing loan recently, said.
The Info City, where Mr Raju and other top brass sit, has become a beehive of media activity, with business, national and local channels parking their OB vans, trying to pick a ‘bite’ or two from the staffers.
They were not invited inside. But they were hovering around through out the day, and in the night, hoping a call for an interaction, which never happened.
Investor cries foul: Meanwhile, Mr Vivek Ohra, an investor who bought 800 shares on Tuesday, was furious and made a scene at the entrance, demanding that the management compensate him for the loss he suffered in 24 hours.