Will Satyam Computers go bankrupt? Raju resigns

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pradeeocitm62

Pepps
Satyam's own Ramalinga Raju resigned and admitted that he had committed fraud and cash books of Satyam were inflated.

The Satyam balance sheet, as on September 30, 2008, had an accrued interest of Rs 376 crore (Rs 3.76 billion) which is non-existent. It also had an understated liability of Rs 1,230 crore (Rs 12.30 billion) on account of funds arranged by Ramalinga Raju. The balance sheet showed an overstated debtors position of Rs 490 crore -- Rs 4.90 billion -- (as against Rs 2,651 crore -- Rs 26.51 billion -- reflected in books).

source : *economictimes.indiatimes.com/Satyam_Full_text_of_Rajus_letter_to_the_Board/articleshow/3946470.cms


This is really a shocking news .. meanwhile Satyam shares tumbled around 75%
 
thewisecrab

thewisecrab

AFK
First the World Bank fiasco, then the Maytas deal, now fudging of bank accounts to show fake profits. :mad:
Forget lack of corporate governance, this will set a bad image for India in the Global Market as Satyam is a global enterprise. :|
 
red_devil

red_devil

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and another company bites the dust :(

poor friends of mine who got placed in Satyam, dunno what will happen to them...[and not to mention those already working there :rolleyes: ]
 
thewisecrab

thewisecrab

AFK
n6300 said:
and another company bites the dust :(

poor friends of mine who got placed in Satyam, dunno what will happen to them...[and not to mention those already working there :rolleyes: ]
Click to expand...
AFAIK, Satyam is not in facing bankruptcy.
The issues faced here are first of all the Maytas Deal, and inflating non existant profits.ie. cooking up false accounts of profits in the past few years.
So they will be held answerable to many, including regulators about this "fudging".
 
red_devil

red_devil

Back!
^ yeah but with all that liability and the other 'shady deals' n stuff will also not be good news for prospective buyers...

and if some biggie does go ahead, i'm not very sure about the future of its 50k+ employees...

ok i noticed it just now....

maytas is the reverse of SATYAM :D

[maytas is the company of the son of that Ramalinga Raju, AFAIK]
 
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amitabhishek

amitabhishek

Bad to the bone
Earlier in AP, every second guy on the street claimed to know Ramalinga Raju personally (just like folks in Kerala claim to know Sreesanth). I wonder what they will say know.

Consulting firm PwC will become another Arthur Anderson once the dust settles down, take this from me.
 
pr.itdude

pr.itdude

tHe nEw gEEk......ITian
i am really unsure that satyam will overcome from this issue and gain the confidence of investors again........!!!!
Really a bad news.... :(
What will this effect on the indian IT industry...........??
 
esumitkumar

esumitkumar

Call me Sumit
Satyam case is a warning for other managements: N R Narayanamurthy

7 Jan 2009, 1444 hrs IST, ET Bureau


BANGALORE: At a time when India software Inc is waking up to perhaps the biggest corporate scam the country has seen, industry leaders such as N R
Narayanamurthy who founded country’s second biggest tech firm Infosys, described developments at Satyam as shocking, painful and a good warning for other companies in the sector.

The Satyam episode is a good warning signal for all managements, said Mr Narayanamurthy, the non-executive chairman of Infosys and one of the strongest votaries of corporate governance in the country. Speaking to ET , Mr Murthy said, it is time for authorities to step in with appropriate action.

Following is Mr Murthy’s unedited views on the subject.

I am shocked and painfully dismayed at what has happened at an important software company in India. It is a total failure of governance. I only hope that relevant authorities get to the bottom of this and take appropriate action.

It is important to remember that one Satyam does not make the entire Indian software industry. I believe it is an isolated case. I want foreign investors to realise that there are many honest managements and good companies in this country. While what has happened at Satyam is totally regrettable, I believe that it does not represent India. It just represents one individual and one company.

In the short term, investors will start looking deeper into all companies they want to invest in, and rightly so. Once they realise that things are not all that bad and that most companies are decent and managements honest, they will regain their faith.

This too will pass. Investors will consider this as an extreme case. Right now, all of us must conduct ourselves in the most legal and ethical manner. It is a good warning signal for all managements.
 
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realdan

Ambassador of Buzz
god save those who still wanted him to be part of the management when the maytas deal was called off.

i feel the entire board directors will also have a responsibility and nobody who is part of the existing management should be allowed to remain. They cannot claim not to know of anything that is going on unless they are sleeping the whole time they are the directors of the company.

One big problem here is what the auditors were doing? if he himself admits fraud then the auditors are not doing their job whether intentionally or not.

Ok they said investigations will be done. I am pretty suspicious what will come out of it. This guy and others involved (i dont think only he is involved) should be punished severely with jail and fine of crores. The investor can sue him and others too.

India never punished the big fish involved in scams and frauds, they only can make an example of the small fry involved in the scam or fraud. I hope this time around they punished all the big fish
 
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realdan

Ambassador of Buzz
you have the company stocks?..i wonder the guy and his family has shortsell (not have to be in satyam) in other people name to gain from the rolller coaster ride down
 
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realdan

Ambassador of Buzz
very soon enterprising film producer will try to make a film based on the whole saga

anybody wanting to take a bet then take it at 10 or below..(if you are gonna buy a lotto or gamble in casion) bet it on them but not a big amount.
 
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