"Satyam", a word that means truth, has proved very wrong for Satyam Computers. Satyam computers, an Indian IT Multinational company has shocked the whole world with its revealations. The Satyam CEO, Mr.Ramalinga Raju, also known as Raju, who is also Satyam’s founder and chairman, revealed the truth about Satyam yesterday. The terrific revelations of Raju were a Sting in the tail to the Satyam share holders and employees. The truth about Satyam left the whole Stock market Shell-shocked.
Mr. Raju, admitted to fraud in black and white, through the letter that he wrote to the Board of Directors of Satyam. Following his admittance to fraud, Mr. Raju announced his Resignation from his post too. The Bombay Stock Exchange has released the entire text of the letter. In his letter Raju has admitted that he had inflated up the profit of Satyam and had manipulated the balance sheets, in order to record unexistant profits. This is India's most terrific corporate fraud till date. Raju had cooked up the balance sheets to record a hefty 7000 crore asset. This is no doubt, an outrageous perfidy. Through his treacherous acts, Raju has delibertely deceived his employees, clients, shareholders and of course the whole world and has proved to be a Snake in the grass. Raju's letter has come up as a bolt form the blue for most of the clients of Satyam.
The Satyam crisis was initially set off in public when Satyam had tried to take over the infrastructure major Mayatas. Interestingly, the word "Mayatas" is an anagram of "Satyam". This take over opereation fetched severe opposition from the Satyam employees who believed that taking over an Infrastructure company was not healthy for an IT firm. To make things worse for Satyam, the world bank had charged Satyam of installing spy ware in one of its Softwares. While the Mayatas episode of Satyam was attracting global attention, Raju's shocking confession of fraud has sent shock waves throughout the world.
The Satyam picture is not yet clear. Raju's confessions state that he had solely inflated up the profits of Satyam, in order to prevent any take over that may arise if the true state of Satyam was out in public. However all these facts are too hard to digest. Raju's confessions are plainly Smoke and mirrors. How come audit team nor the CFO notice the anomalies in the balance sheet? Was it a joint treachery then? Or is the picture totally different? Is it that the Satyam fraud has roots in a much bigger scam?
The other Indian IT industries are watching the episode with sealed lips. The Satyam saga has made things worse for the Indian IT companies amidst the atrocious recession. It is feared that the world may lose its trust in the Indian IT indusrties following the Satyam treachery. At the moment lets just keep the fingers crossed and hope for a better tomorrow for the Indian IT Industry.
