Software Companies
Satyam Scandal - Rs 7,000 crore sham
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A financial scandal to the tune of Rs 7,00,000 in Satyam took the world by surprise, leaving the investors and the clients of Satyam in lurch. The Chairman of the company, B. Ramalinga Raju, after resigning from his post is now untraceable. In a letter to one of the board members of the company, he disclosed that the Satyam has been showing the inflated balance sheet for the years. The fraud could not be noticed by even the auditors of the company - PricewaterHouse.
The scandal has resulted in deep plunge in the share value of the company. On January 7,2008, the share value of Satyam plummeted down by 78% leaving the associates high and dry. SEBI, the Securities and Exchange Bureau of India has launched a probe into the matter and a team has reached Hyderabad, the head office of the IT giant to question the company's management. The charges can lead to the arrest of Ramalinga Raju and he can face an imprisonment of upto 7-10 years. A lawsuit has also been filed against Satyam in USA.
Satyam scandal has cast a shadow over the outsourcing industry of India, and has shook the confidence of the investors in the Indian market. The financial irregularities of such a high level were unheard of in the IT sector until yet but the recent developments in Satyam has raised questions about the management of companies of such a repute.
Satyam is the fourth largest IT service provider in India and is enlisted in New York Stock Exchange. The company also boasts a clientlist of who-is-who of the industry and has more than 50,000 people on its pay roll.
Satyam scandal has cast a shadow over the outsourcing industry of India, and has shook the confidence of the investors in the Indian market. The financial irregularities of such a high level were unheard of in the IT sector until yet but the recent developments in Satyam has raised questions about the management of companies of such a repute.
Satyam is the fourth largest IT service provider in India and is enlisted in New York Stock Exchange. The company also boasts a clientlist of who-is-who of the industry and has more than 50,000 people on its pay roll.
