Microsoft seeks refund from some laid off workers - National News Updates

Washington: An accounting error by Microsoft Corp has reportedly led the world's largest software maker to notify some laid off employees last week that they would need to give back part of their severance pay.

The company laid off 1,400 workers last month, the first of 5,000 jobs Microsoft has said it plans to cut over the next 18 months.

The error is believed to have overpaid some former employees and underpaid others.

Those that were overpaid were sent letters requesting them to refund the company by sending a check or money order.

"An inadvertent administrative error occurred that resulted in an overpayment in severance pay by Microsoft," a letter obtained by the technology blog TechCrunch reads.

"We ask that you repay the overpayment and sincerely apologize for any inconvenience to you."

A Microsoft spokesperson confirmed that the letter was authentic.

The company has not disclosed how many former employees were affected or the total amount that was overpaid, calling the incident "a private matter between the company and the affected people."

CLB to hear Govt petition on Maytas board take-over today - National News Updates

The Company Law Board will hear the government's plea on Tuesday to take over the board of Maytas Properties, a firm promoted by the kin of former Satyam Computer Chairman B Ramalinga Raju.

The CLB earlier rejected Maytas Properties' prayer for some more time. It was opposed by the government saying it will delay the whole process.

On February 18, the government had moved CLB requesting to remove the existing directors of Maytas Infra and Maytas Properties, alleging that current management of the companies had conducted the business with fraudulent intent and breach of trust of stakeholders.

However, the CLB had refused to pass any ex-parte order over government's plea and directed to serve the copies of the petition to the companies and listed the matter for today's hearing.

‘Some clarity on Satyam sale process by week-end’ - National News Updates

New Delhi: The Satyam board Chairman, Kiran Karnik, expects the Expression of Interest (EoI) for a strategic investor, to be invited by the end of this week.

“I hope that by the end of this week, we will be able to come out with something, either an EoI or inviting an initial bid. Of course, as per the Company Law Board order, we have to obtain the approval of the CLB,” Karnik told Business Line on Monday.

Asked what process would be adopted for Satyam stake sale, and whether the entire 51 per cent equity would be on the block through preferential allotment, Karnik declined to comment. “I have no comments at this point, as the process is sensitive,” he said.

PriceWaterhouse quits as Satyam auditor

Media reports have suggested that the board could look at selling up to 31 per cent through a preferential allotment, and another 20 per cent through an open offer.

Satyam likely to announce mode of choosing partner

However, at least one potential suitor, Dr B. K. Modi, Chairman of Spice Corp, has made it amply clear that his company will be interested in Satyam only if the entire 51 per cent stake is offered through the preferential route.

“The entire money should go into Satyam…The CLB has already laid down the broad framework of the process to be followed. They have also recognised that any strategic investor would like to have adequate equity shareholding, which would enable the investor to constitute its own board. If there is deviation from this, we will reconsider our position,” Dr Modi had said last week.

Satyam board approves process to invite offers from suitors

Maytas hearing: Meanwhile, the hearing on Maytas Properties at CLB is slated for Tuesday. Maytas Infra Ltd, promoted by the family of B. Ramalinga Raju, has already been granted two days’ additional time, till February 26, to submit its reply, by CLB.

Government not to bail out Satyam: Pranab - National News Updates

New Delhi: The Government does not intend to bail out the scam-hit Satyam Computer Services as the company has "adequate assets" and can bounce back if run professionally, Minister for External Affairs Pranab Mukherjee said on Thursday.

"Let me make it clear that the Government has no intention to bail out the company. The company has adequate assets (to survive) if run professionally," Mukherjee, who is holding the Finance portfolio while Prime Minister Manmohan Singh recuperates from a bypass surgery, said during Question Hour in the Rajya Sabha.

"It is in the Government's interest that an important company, with a large number of international clients and with a good name, if run professionally can be re-established," the minister maintained.

He also brushed aside suggestions that the Andhra Pradesh Government was attempting to shield the perpetrators of the Satyam scam by interfering in the multi-agency investigations into the Rs 7,800-crore scandal.

"There is no question of interfering or barring the statutory authorities from functioning. The chief minister of Andhra Pradesh (YSR Reddy) has completely assured me of full cooperation with all agencies. The chief secretary of the state has been designated as the nodal officer for the investigating agencies," he said.

Government to remove two Maytas firms' directors

New Delhi: The Government of India on Tuesday moved the Company Law Board to remove the board of directors of Maytas Infrastructure and Maytas Properties, the infrastructure firms promoted by disgraced Satyam founder B Ramalinga Raju's family.

Corporate Affairs Minister Prem Chand Gupta said that the government has found evidence that the two companies were involved in money laundering, fraudulent accounts and diversion of funds, reports IANS.

The government's move comes after the Serious Fraud Investigation Office (SFIO) was asked to probe the links between Satyam and the two Maytas companies.

Ramalinga Raju, his brother B Rama Raju, Satyam's former Chief Financial Officer Vadlamani Srinivas and two former auditors are now in prison in connection with the Rs 7,800 crore (US $1.43 billion) accounting fraud.

Following Ramalinga Raju's resignation, Maytas Infrastructure Chairman and Non-executive Director RC Sinha also tendered his resignation owing to personal reasons.

Maytas Properties Chief Executive K Thiagarajan resigned on February 15 reportedly on health grounds. Most of the Maytas Infra board had already resigned in January, with CEO PK Madhav putting in his papers January 14.

The firm's wholetime director Chander Sheel Bansal quitted on January 30. B Narasimha Rao was appointed in his place in haste the same day to avert a crisis.

Vice-chairman B Teja Raju and Independent Director RP Raju are the other members on the Maytas Infra board.

Reacting to the government's move, Deepak Parekh, a member of the government-appointed board of Satyam, said it was a "move in the right direction".

"Hope that we are not appointed to Maytas's firm. Our hands are already full," he added.

The Satyam fraud has already cast a huge shadow of doubt over the future of both Maytas Infra and Maytas Properties.

The two companies are run by Ramalinga Raju's sons. Maytas Infra is headed by B Teja Raju while Maytas Properties is run by B Rama Raju (junior). Though a listed firm, the Raju family holds 36 per cent equity stake in Maytas Infra.

The government move came amid reports that the Raju family informed the stock exchanges that its entire shareholding in Maytas Infra has been pledged to lenders.

It was the aborted bid by Ramalinga Raju to acquire these companies for US $1.6 billion which triggered a crisis in Satyam, finally leading to January 7 admission by Ramalinga Raju of Rs 7,800 crore fraud in the IT services firm.

It was on December 16 that the Satyam board decided to acquire the two companies but shareholders' outcry forced Ramalinga Raju to call off the acquisition within 24 hours.

The investigations into the Satyam fraud so far have hinted that Ramalinga Raju diverted Satyam money to Maytas and several other companies floated by him and his family members.

The government move to take over Maytas also came in the midst of mounting criticism of the Congress government in Andhra Pradesh for allegedly favouring Maytas Infra by allotting several major infrastructure projects worth Rs 3,000 crore.

The move is seen as an attempt to protect the projects.

Maytas consortium was awarded the Rs 12,000 crore Hyderabad Metro Project and Rs 1,200 crore Machilipatnam Sea Port work by the state government.

Maytas and its joint venture partners were together awarded Rs 13,000 crore worth of works, out of Rs 38,000 crore Pranahita-Chevellalift irrigation project. The company was already implementing irrigation projects at a cost of Rs 3,000 crore and has completed Rs 1,748 crore worth irrigation works.

2 senior managers out; Satyam may dump more - National News Updates

Mumbai: Fraud-hit Satyam Computer Services is looking to trim the number of its senior managers, a company spokeswoman said on Tuesday, as the cash-starved outsourcer plans to find a suitor.

"Two managers have gone. We do not have a number but it is likely more will go," Archana Muthappa, head of media relations in India said over telephone. "It is part of a rationalisation of the organisation structure." She declined to put a time frame for the process but said the government appointed board was discussing it.

The two officials who have quit are Subu D Subramanian, global head of manufacturing and automotives division, and Anil Kumar, a senior vice-president at Satyam's financial services division, she said.

Satyam, the country’s fourth-largest outsourcer, is battling for survival since Jan. 7 when its founder Ramalinga Raju quit as chairman revealing profits have been falsified for years and $1 billion of cash and bank balances did not exist in the country's biggest corporate scandal.
The Government dissolved Satyam's board and appointed six directors to save Satyam and its 50,000 employees. The new board has appointed Goldman Sachs and Avendus, an Indian investment bank, to help find potential investors.