Wipro says ineligible for World Bank contracts

MUMBAI (Reuters) - India's No. 3 software company, Wipro Ltd, said on Monday the World Bank had determined in June 2007 the company would be ineligible for the bank's direct contracts up to 2011 citing a conflict of interest policy.

Wipro said its revenues from World Bank were insignifianct and the decision would not affect its business and results.

It said the announcement was being made now under revised disclosure policies.

HONG KONG (MarketWatch) -- Shares of Wipro (WIT:

26.35, +0.15, +0.6%) tumbled 9.5% in Mumbai Monday after the company said the World Bank had barred its software unit in June 2007 from participating in direct contracts from the lender between 2007 and 2011. Wipro said the company and World Bank were making the announcement under revised disclosure policies. Wipro, which also has a presence in personal products and lighting, said that in 2000, employees of the World Bank had purchased 1,750 shares of the company through Wipro's initial public offering in New York. The shares were valued at $72,000 at the IPO price, the company said. "All participants in the program signed a conflict of interest statement that their purchase didn't violate any ethics or conflict of interest policies of their company," Wipro wrote in a statement.

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Govt announces Satyam new board

Govt puts Parekh, Karnik and ex-Sebi member on Satyam Board
The government nominated noted banker Deepak Parekh, IT expert Kiran Karnik and former Sebi member C Achuthan to the IT company’s Board

New Delhi: Moving quickly to stabilise the fraud-devastated Satyam Computer, the government on Sunday nominated noted banker Deepak Parekh, IT expert Kiran Karnik and former Sebi member C Achuthan to the IT company’s Board.
The three-member board would meet within 24 hours to decide on the remaining up to seven members along with the chairman, corporate affairs minister Prem Chand Gupta told reporters in a hurriedly called press conference two days after disbanding the truncated Satyam Board.

On the demand by institutional investors like LIC and Lazard for a representation on the Board, Gupta said, “All options are open in the interest of the company.”
The board would have eminent personalities from finance, law, IT and administration, Gupta said.
Gupta said that more members to the board would be nominated only if needed.
Asked about the priorities before the board, HDFC chairman Deepak Parekh said, “The first priority would be to meet as soon as possible... we will have to clear the mess.”
“I’m yet to talk to the other members,” Parekh said.
Karnik, former president of Nasscom, also said that the three newly named board members would meet as soon as possible and that the first priority is the arrangement of an operational management.
“We are trying to ensure that India continues to be safe, secure and reliable destination for IT services,” he said.
Former Sebi member, C Achuthan on Sunday said the topmost priority of the team would be to put back on rail the scam-tainted IT company and ensure that all those guilty do not go scotfree and that similar instances do not recur.
“The first step in the board meeting would be to evolve the strategy on how to go ahead and restore the damaged image of the company,” Achuthan said.

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Sebi horrified by Satyam revelations; studying actions

SEBI was also forwarded the letter written by Satyam’s chairman on his stepping down with the confession that the profits in the company were inflated

Mumbai: Terming disclosures of financial wrong-doings at Satyam as an event of “horrifying magnitude,” market regulator Sebi on Wednesday said it would take all steps under the law for which it has started discussions with government and bourses.
“We are in touch with Ministry of Corporate Affairs... we are also in discussion with them as to what steps need to be taken from the perspective of power they have under the law and SEBI has under the law,” Sebi chairman C B Bhave said.
SEBI was also forwarded the letter written by Satyam’s chairman Ramalinga Raju on his stepping down with the confession that the profits in the company were inflated over the years, leading to wide gap between real and imaginary assets.

Bhave said the development would have serious implications for the market. Jurisdictions in this case lies with various authorities and accordingly, “we are in touch with Ministry of Corporate Affairs for coordinated action”.
He also emhpasised on the need to go beyond the letter and “decide the course of action.”
Bewildered by the disclosures made by Raju in his letter to Sebi and the Board, which was also sent to stock exchange authorities, Bhave said it was “most surprising” that cash balance that was non-existent got certified. The case also raises the issue of “authenticity of accounts” that have been audited.
“Our main effort is to see that whatever facts are available with any regulatory agency, those are put out and investors know the truth... I am sure we will have to learn few lessons from this as we get through the facts,” he said.
“We are also in touch with stock exchanges to see what will be the appropriate action,” he said.
Asked about the action that the company, also listed in New York Stock Exchange, could face in the US, Bhave said: “This is probably not the time when SEC would be available. My guess is that Satyam will have to make similar disclosures there as well. I am not entirely familiar with their law with regard to areas as to what actions they would be taking.”
Commenting on the unfolding development that began with the fiasco of the $1.6 billion dollar acquisition of two Maytas firms promoted by Raju’s family, he said: “This is an event of horrifying magnitude and it’s first of its kind.”
On whether Sebi would be making a special request to the Satyam Board that is to meet on 10 January, he said all these things are being considered and it is being made sure that the Ministry of Corporate Affairs and Sebi act in coordination on this matter.

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