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Crystallex International Corporation is a Canadian-based gold company with a successful record of developing and operating gold mines in Venezuela and elsewhere in South America

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Re: Not so bad..overstated "cash on hand" by $1bil?off topic/good story

posted on Jan 12, 2009 05:33AM

this may be off topic but mannnn!

Satyam soars as India appoints new board members

By V. Phani Kumar, MarketWatch

Last update: 8:22 a.m. EST Jan. 12, 2009

Comments: 14

HONG KONG (MarketWatch) -- Shares of Satyam Computer Services staged a sharp recovery Monday after their recent crash, as the government's decision to appoint new members to its board raised hopes the software major may be rescued after India's biggest corporate fraud came to light at the company last week.

After losing nearly 87% of its value in just the previous two sessions, Satyam (SAY:

satyam computer services ltd adr

News , chart , profile , more

Last: 1.16-8.19-87.59%
10:31am 01/12/2009

Delayed quote data

Sponsored by:

SAY 1.16, -8.19, -87.6%) stock soared 45.9% by late afternoon trading in Mumbai.

Nonetheless, the stock is still 81% below its value from before the company announced it had overstated the cash it held by over $1 billion. The New York Stock Exchange has not allowed Satyam's U.S.-listed shares to trade since the scandal erupted.

The jump on Monday came after the government got into the act to protect the company and its 53,000 employees, and appointed well-known professionals such as Deepak Parekh, Kiran Karnik and C. Achutan to the company's board.

"The appointments will help because they have lent some credibility, which is the most important thing for the company after recent events," said Tejas Doshi, head of research at Sushil Finance in Mumbai.

"Still, the board has to assess the state of affairs at the company, and one will have to wait and watch the situation," Doshi said.

Parekh is the chairman of India's largest mortgage finance company, Housing Finance Development Corp., as well as the Indian unit of GlaxoSmithKline Pharmaceuticals.

Karnik was formerly president of India's influential information technology umbrella body, Nasscom, or the National Association of Software and Service Companies.

Achutan is a former member of the stock markets regulator, Securities & Exchange Board of India.

After the board meeting, the company said it would hire an independent auditor within 48 hours.

Satyam had employed PricewaterhouseCoopers prior to the discovery, made by founder and ex-chairman B. Ramalinga Raju, that its cash balances were overstated by more than $1 billion.

Raju, along with Satyam's former managing director B. Rama Raju and previous chief financial officer V. Srinivas, were arrested by Indian police over the weekend.