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Friday, January 9, 2009
what is the truth about SATYAM?
SATYAM is India's fourth largest IT company with over 50000 employees.Mr. Raju is saying that he cooked satyam's balance sheet to show more money as profits than what they actually had. Mr. Raju is saying that the company's assets are worth only 361 crores rupees as against the reported 5041 crore of rupees.Now the question is, if the company was never a 5000 crore worth of company from where did it pay the salaries to such large workforce.If the overall margin was only 3%-5% as against reported 20%-25%,how did they compete with companies like Infosys and TCS.Satyam was never short of business.They always had the clients from all over the world.Surely there is much more to this fraud than what Mr. Raju has reported.We should not rule out probable mismanagement of money.There is a strong possibility that SATYAM's money was used for personnel benefits by Mr. Raju.He might have invested the money in his son's business.Govt. really has to be proactive in this case as the clients all over the world are watching with keen interest.We cant drag the investigations forever.Decisions have to be quick and well targeted because here its not only the image of the IT sector of India that is at stake but the future of about 50000 employees is at stake too.This fraud is going to impact the image of corporate India big time.We really have to come clean as soon as possible by punishing the culprits.
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