satyam fraud |satyam shares falls

PricewaterhouseCoopers (PwC), may review its “continuance” with the troubled

satyam shares fell by 70% (till now its fall is so steep) , the falll in the satyam share is aributed to satysm fraud of over 7000 crs..satyam computers which is 4th largest it company in india satyams stock prise fell to 150 bug just in a day. .ramalinga raju the satyam computers chair main who resigned today earlier caused the satyam shares to fall over by 70% . the question at this time is what were the satwam auditors doing while all the satyam fraud was happening. this satyam scam seem to be the one of the hisest in it company. the state of satyam stock is a question mark. for the lates news on satyam news on satyam shares, satyam stock price,satyam computers,satyam raju,satyam, satyam auditors, satyam computers, satyam pwc, satyam annual report


he statutory auditor for Satyam Computer Services,



software firm. The company’s image has been tarnished after its scuppered bid to buy two firms linked to its promoter B Ramalinga Raju.

“We do re-visit the process acceptance and continuance, whenever there are any major developments. We have been statutory auditors for the company for at least six years now. But we need to assess whether our judgement (on the company) continues to hold good. A re-evaluation is in sync with international norms on auditing,” said a source privy to the developments at PwC, who wished not to be named.

However, when contacted PwC’s spokesperson said: “As auditors, we are not allowed to comment on audit clients due to client confidentiality.” The source quoted earlier did not categorically say that the relationship would be reviewed, but said such a review was a possibility given what had happened.

In the normal course, the board (of any company) has to recommend the auditors’ appointment at the time of finalisation of accounts. The auditors, in turn, give their concurrence (continuance is industry jargon for this) in case they wish to come on the board or continue with the contract. The appointment is then ratified by shareholders at the company’s annual general meeting.

“The Satyam case relates to a risk on the company’s reputation, as investors questioned the propriety of buying two firms run by Ramalinga Raju’s sons. So a review on continuance of the auditing relationship appears possible,” said the source.

The board had on December 16 passed an unanimous resolution to allow Satyam buy Maytas Infra and Maytas Properties for $1.6 billion. But the deal was called off in the wake of an outrage from the company’s shareholders as well as the institutional investors.

Four independent directors have quit and a shake out in the top echelons could take place, especially after the company admitted that the promoters had pledged all their stocks to institutional lenders to buy land and real estate.

Raju and his family’s stake in the country’s fourth-biggest software exporting firm has dropped to 5.13% from 8.27%, the figure at the end of the September quarter.

Concerns are also being raised in several quarters on the company’s cash utilisation, as Satyam is reported to have kept large amounts of excess cash in current accounts which do not yield any returns. The company’s total cash reserves stood at around Rs 5,300 crore at the end of September this year.

Satyam did not respond to specific queries on its cash utilisation. The board might be recast when it meets on January 10. Investment banker DSP Merrill Lynch has been given the mandate to identify potential directors on the board and also explore strategic options to boost investors’ confidence.

Institutional investors led by Aberdeen Asset Management, Fidelity and ICICI Prudential hold 61% in Satyam, several times the 8.27% stake held by the family of the company’s founder and chairman Ramalinga Raju. This makes the company vulnerable to a takeover, especially since several funds are upset at Satyam’s founders for trying to use the company’s cash pile for the acquisition. Satyam’s shares closed at Rs 177.55 on the BSE on Friday, down by 2.63%.

Consulting firm PwC provides industry-focused assurance, tax and advisory services. It employs over 155,000 people in 153 countries. It has 8,603 partners across the world. In FY08, (ended 30 June) worldwide, the gross revenues of PwC’s network of firms stood at $28.2 billion.




related tags : satyam shares, satyam stock price,satyam computers,satyam raju,satyam, satyam auditors, satyam computers, satyam pwc, satyam annual report