Wednesday, January 7, 2009

Raju leaves the Indian IT industry shocked

By: Subhadeep Bhattacharjee

Satyam Computer Chairman Ramalinga Raju's admission of forgery in the balance sheet of the IT giant has left the entire market shell shocked. Over the past few weeks Satyam had become the talk of the town with everybody speculating the future of one of India's IT pride. Everybody knew that the situation was tight but nobody right from the employees to the share holders would have imagined this from one of the IT entrepreneurs of the nation.


As if the financial meltdown was not enough we now have the fourth largest IT company in India in the midst of a forgery scandal by none other than its founder. Many of the employees and investors have been left wondering what lies in the future for Satyam. Raju has not only attempted suicide for his own organisation but also dented the image of the Indian IT sector.


The resignation of of the top board members was an indication of something fishy in the picture. Now the picture is becoming clear why the Raju family wanted to buy Maytas and move into the real estate sector. Matyas it may me mentioned has the Hyderabad metro rail project in its kitty. Surprisingly most other metro projects have gone to multiple companies while Maytas are the sole developers of the metro in Hyderabad.


The crisis has also ensured that any immediate takeover or merger is not on the cards owing to the forged valuation of the company. The situation is so bad that the share prices have come down to almost 22% of their last day closing value. The government has directed the case to Serious Fraud Investigation tribunal. Brokerage firms across the world are advising their clients to drop Satyam from their portfolio.


The question that arises now is were the Rajus the only ones involved in this forgery? If not will the investigations be able to uncover the other faces behind this? The recent financial turmoil in US and the world has raised question marks on a totally free market and capitalism. Should we have had some regulators checking not only the performance of a company's share but even the authenticity of its balance sheets from time to time.


2 comments:

Rahul January 8, 2009 at 1:54 PM  

I have no idea what the future has in stor for us..hope he's the last one ..

freakyparo January 26, 2009 at 3:27 PM  

This huge hue and cry over the Satyam fraudelence unfortunately will die down like all the governemnt and corpotate scams in the past. Unfortunately the PUBLICS of our nation has a very short span of memory and the sensation lusty media only likes blowing news out of proportion but not providing enough follow ups!! Before we even know Ramalinga Raju will be out of this fiasco and never know might even campaign for election seats with all the money made out of the Satyam scam.

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