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Satyam Computer Now Satyam Fraud

Fallen Hero – Ramalinga Raju

What started as a mere move to acquire Mytas by Satyam’s chairman Ramalinga Raju under the parent company Satyam in order to bail out his son unfolded into a much bigger issue. Well, that was a move to cover something bigger – A fraud to the tune of Rs 7000 crore. After the Mytas bid had to be called off due to stiff opposition by the shareholders, looks like Ramalinga Raju was running out of time and finally admitted to the fraud by writing a letter to the Satyam board.

The meaning of Satyam is truth and now itself turned into a lie. The 4th largest services exporter in India is in deep crisis now. And this fiasco hapenning now when the software market is in a downswing is unfortunate. Also, this will again raise the hysteria of safety of data for services outsourced to India. Satyam has already been balck marked by the world bank and now it will be untouchable for many companies.

The crisis started as admited by Raju with the inflated cash shown on balance sheet of the company. This gab was never closed and it reached unmanageable proportions. Satyam’s share is already in the down swing and there are talks of possible merger and takeover. The government of India and the SEBI has already initiated probe into this. Satyam chairman may land in jail upto 7 years including monetery penalties.

Now the employees of Satyam are definately worried. Raju must have thought once of all those people working for him. Market is already dull and Mr. Raju’s act will take it one notch lower. Lastly, will it affect outsourcing of business to India? Well, industry leaders claim it will not but only time will tell.

What about the Bangalore based software giants like Infosysy and Wipro. Hope they are taking note.

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