ID :
40253
Mon, 01/12/2009 - 18:44
Auther :
Shortlink :
http://m.oananews.org//node/40253
The shortlink copeid
ANZ Bank reviews impact of its exposure to Satyam: report
Melbourne, Jan 12 (PTI) Australian banking major ANZ Bank
is reviewing the impact of its exposure to Indian software
exporter Satyam Computer Services following the more than one
billion dollar accounting fraud in the IT firm, says a media
report.
"Another major local bank is studying the impact of its
exposure to Satyam Computer Services'...", The Australian said
in a report.
ANZ Bank has around 100 Satyam contractors who support IT
projects. They are mainly based at the bank's Indian
subsidiary, which employs about 2,000 people, it said.
Last week, the bank told employees that it would develop
a contingency plan although its relationship with Satyam was
"modest".
"The relationship involves a number of Satyam staff who
support development and testing on information technology
projects. This means there is no effect at all on ANZ's day to
day IT operations," ANZ operations technology and shared
services group Managing Director David Cartwright was quoted
as saying by The Australian.
"(As) for the technology development projects that Satyam
contract staff are supporting, we are currently assessing key
person dependences and developing a plan for how we manage
through the situation," Cartwright added.
Further, the bank believes that while there is some work
to do on this, it would be able to take the issues at Satyam
in our stride and largely get on with business as usual given
the depth of its own IT resources and relationships with a
range of IT vendors globally.
However, unlike other blue-chip companies such as
National Australia Bank, Telstra and Qantas, ANZ doesn't have
any long-term contracts with the Hyderabad-based company.
Besides, other local customers are assessing their
contractual obligations with Satyam.
The report further added that a multi-million-dollar
software facility being built on Deak in University's campus
in Geelong is also under a cloud as the future of Satyam
remains uncertain.
On Wednesday, Satyam's founder-chairman B Ramalinga Raju
admitted of inflating the accounts of the firm and was later
arrested with B Rama Raju, his brother and co-founder, on
charges of criminal breach of trust, criminal conspiracy,
cheating, falsification of records and forgery.
Satyam chief financial officer Srinivas Vadlamani was
also arrested on Saturday.
The Satyam fraud case has forced the Indian government
to appoint three members to the board of Satyam after it
dismissed the incumbent board to restore investors confidence.
PTI
is reviewing the impact of its exposure to Indian software
exporter Satyam Computer Services following the more than one
billion dollar accounting fraud in the IT firm, says a media
report.
"Another major local bank is studying the impact of its
exposure to Satyam Computer Services'...", The Australian said
in a report.
ANZ Bank has around 100 Satyam contractors who support IT
projects. They are mainly based at the bank's Indian
subsidiary, which employs about 2,000 people, it said.
Last week, the bank told employees that it would develop
a contingency plan although its relationship with Satyam was
"modest".
"The relationship involves a number of Satyam staff who
support development and testing on information technology
projects. This means there is no effect at all on ANZ's day to
day IT operations," ANZ operations technology and shared
services group Managing Director David Cartwright was quoted
as saying by The Australian.
"(As) for the technology development projects that Satyam
contract staff are supporting, we are currently assessing key
person dependences and developing a plan for how we manage
through the situation," Cartwright added.
Further, the bank believes that while there is some work
to do on this, it would be able to take the issues at Satyam
in our stride and largely get on with business as usual given
the depth of its own IT resources and relationships with a
range of IT vendors globally.
However, unlike other blue-chip companies such as
National Australia Bank, Telstra and Qantas, ANZ doesn't have
any long-term contracts with the Hyderabad-based company.
Besides, other local customers are assessing their
contractual obligations with Satyam.
The report further added that a multi-million-dollar
software facility being built on Deak in University's campus
in Geelong is also under a cloud as the future of Satyam
remains uncertain.
On Wednesday, Satyam's founder-chairman B Ramalinga Raju
admitted of inflating the accounts of the firm and was later
arrested with B Rama Raju, his brother and co-founder, on
charges of criminal breach of trust, criminal conspiracy,
cheating, falsification of records and forgery.
Satyam chief financial officer Srinivas Vadlamani was
also arrested on Saturday.
The Satyam fraud case has forced the Indian government
to appoint three members to the board of Satyam after it
dismissed the incumbent board to restore investors confidence.
PTI
