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Satyam Scam
Tata Motors plans debt issue for Nano
Secondary sales find fervour with PE funds
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India for 3-fold increase in IMF equity
AIG arm gets bidders: Report
LCD monitor that can double up as TV
Porsche to launch Panamera
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Satyam Scam
Hyderabad, April 7 The chargesheet, running into 2,315 pages, said Raju and his younger brother and former managing director of the software giant, Rama Raju, were the main architects of the massive fraud while others assisted them in fudging the figures. All accused, including the Raju brothers, are currently lodged in Chanchalguda cebtral jail here. A team of CBI officials brought the chargesheet and thousands of other documents in a mini-truck to Nampally Criminal Court complex and submitted them to the court of 14th Additional Chief Metropolitan Magistrate S. Samuel Victor Emmanuel. The documents, CDs and other records were brought in 25 trunk boxes to the court complex. The chargesheet contains statements of nearly 500 witnesses in what has come to be viewed as the country’s biggest corporate fraud. Apart from Raju brothers, former CFO of Satyam V Srinivas, auditors of PriceWaterhouse S Gopalakrishnan and T Srinivas, G Ramakrishna (vice- president-finance), D Venkatapathy Raju (senior manager, finance) and Srisailam (assistant manager, finance) and Raju’s another brother Suryanarayana Raju were named as accused in the chargesheet. The accused have been chargesheeted for criminal conspiracy, cheating, forgery of valuable security, using a forged document as genuine, falsification of accounts and for causing disappearance of evidence. Meanwhile, the court allowed the CBI to collect samples of specimen signatures and handwriting of the Raju brothers and ex-CFO Srinivas for further investigation into the forgery. A 16-member CBI team, headed by DIG V V Lakshminarayana, had taken over the investigation on February 21. In its probe, the CBI is being assisted by officials of Income-Tax Department, Registrar of Companies, SEBI, Serious Fraud Investigation Office (SFIO) and the Stamps and Registration department of the state government. Raju had made a disgraceful exit on January 7 after confessing to cooking the company's account books and inflated profits over the past several years. Two days later, Raju brothers were arrested by Andhra Pradesh while Srinivas was picked up on January 10. Subsequently, the former auditors were also arrested. Three more executives of Satyam's finance wing were arrested by CBI sleuths last Sunday and remanded in judicial custody till April 15. With this, the number of accused in the case has gone up to nine. |
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Tata Motors plans debt issue for Nano
This issue comes besides the overseas equity issue that the company has put on hold recently, say sources close to the development. Tatas are spending around Rs 2,000 crore on Nano’s new plant. Tatas are unlikely to make any profit on the first 100,000 Nano cars they have committed to sell with price protection. Since Tata Group chairman Ratan Tata had promised six years ago to produce and sell a small car for only Rs 1 lakh, Tata Motors has kept the price of the base model at Rs 1 lakh at the factory gate. With an average booking amount of Rs 1 lakh per car, Tatas will get at least Rs 5,000 crore of cash. Tata Motors had taken nearly $3-billion bridge loan to pay for $ 2.3 billion acquisition of British marquee Jaguar and Land Rover. At the time of acquisition, Tatas had promised that no one would be fired, but in the recent months JLR has laid off nearly 500 persons to cope with shrunk operation. Recently, the company said it has repaid the $1 billion of the loan taken for JLR. The company has also requested for a large financial assistance from the British government to save jobs. In fact, Ratan Tata has said in a TV interview that JLR would see massive job losses unless the UK government guarantees loans to the company. The company has been struggling to raise long-term funds to replace the bridge loan. In July 2008, it had got board approval to raise up to Rs 7,200 crore through separate rights issues. Subsequently, it came up with two separate issues to raise Rs 4,147 crore, which met with cold response from investors and the promoters had to subscribe and increase their stake to 42 per cent from earlier 33 per cent. |
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Secondary sales find fervour with PE funds
New Delhi, April 7 "Going forward we will see more secondary deals in the Indian private equity space. Now more such deals are coming to the fore as increased number of partners are looking at liquidating their position to meet prior commitments," Venture Intelligence CEO Arun Natarajan said. Known as 'Secondary deals' in Private Equity parlance, 'secondaries' refer to a Limited Partner (LP) or the part owner of the fund selling its stake in the fund to another partner or a third party to seek an exit option. Echoing similar view, KPMG PE Advisory group head Vikram Uttamsingh said: "PE industry will see a lot less deals in 2009. Secondary sales will increase as some PE firms and LPs will feel global pressure to exit their India investment". Analysts believe that with the fall in PE valuations, the partners are now exiting the funds at much cheaper prices. "Some limited partners are now exiting even at lower valuations as they are on the verge of bankruptcy. They are resorting to desperate sale as they are facing trouble back home," SMC Capitals Equity Head Jagannadham Thunuguntla said. As per Venture Intelligence, in 2008, there were seven secondaries in India, including ICICI Venture's stake sale in Subhiksha to Premji Invest for $56 million.
— PTI |
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India for 3-fold increase in IMF equity
New Delhi, April 7 India pleaded for 200 per cent increase in the quota size (kind of equity) of the IMF at the G-20 meeting in London last week, arguing that the current resources of the Fund are inadequate to meet the demands of the world economy in the wake of the financial crisis, which is likely to be prolonged. The total size of the IMF quotas is SDR 217 billion, in which India's share is SDR 4.16 billion. Prime Minister Manmohan Singh, too, had said after the G-20 Summit in London, "India does not need IMF funding but we have been in favour of expanding IMF resources as this will help developing countries that need assistance. It will restore confidence about emerging markets." According to sources, India, during the G-20 Sherpas Meetings (preparatory meetings for the Summit), also underlined the need for an early conclusion of the IMF quota review even before 2011, in addition to endorsing a target quota increase by 200 per cent. The communique issued after the London Summit of the G-20 nations, however, made no commitment on the size of quota increases but called upon the IMF to complete the next review by January 2011, as against the original schedule of 2013. "We commit to implementing the package of IMF quota and voice reforms agreed in April 2008 and call on the IMF to complete the next review of quotas by January 2011," the communique had said.
— PTI |
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AIG arm gets bidders: Report
Washington, April 7 Private equity firms Ashmore Investment Management, Hellman & Friedman LLC, Rhone Group and TA Associates as well as mutual fund manager Franklin Templeton and asset manager Southgate Alternative Investments are among those who have shown interest, the Journal said in a report on its website. The unit manages about $100 billion in private equity stakes, hedge fund interest and stocks and bonds and AIG hopes to conclude the sale by the end of May but could withdraw the sale if prices aren't high enough, the report said. The bids for AIG's unit are below the typical prices for asset management businesses, which historically have been valued at 1 per cent to 2 per cent of assets, the Journal said. — Reuters |
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LCD monitor that can double up as TV
New Delhi, April 7 Dubbed as monitor TV, the product has been conceptualised as an LCD monitor with various television functions. Buyers would be able to use the product both as a computer monitor and as well as a television set without the hassle of adding a TV-tuner card, LG Electronics India group head of Digital Display and Storage R Manikandan said. The product will be available in three different sizes. About the affect of recession on the LG India's business, Manikandan said, "there is slight slowdown in the Indian market but demand is still there. The consumer segment is still growing for us." On market trends, he said the market is fast shifting towards 18.5 inch screens from 15 inch. There has been an inch-up trend visible in the market.
— PTI |
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Porsche to launch Panamera
New Delhi, April 7 |
AI to get Boeing 787 PowerGrid to borrow $2 b M&M launches Xylo in Nepal Tata Motors’ unit in Myanmar Goodricke Group foray
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New Delhi, April 7
