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Posts Tagged ‘Satyam’

Posing for the camera!

This has got to be one of the most artificial political film ever seen, scripted and acted for the sole benefit of the news channels.

Picture courtesy: The Hindu

pmk-founder-ramadossI have never been a great fan of the PMK or VCK, but I found this too amusing to let go.

Even the caption was funny (though unintentionally, of course). “DOCTOR in action: PMK founder S. Ramadoss examining VCK president Thol.Thirumavalavan at Maraimalai Nagar, where he is observing a fast, on Saturday”

By the way, am I guilty of infringement of copyright…?

To be on the safer side, I’ll just post the link to a Business Standard story on Satyam, I really liked.

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Pass the Buck

The blame game is on! Satyam CFO Vadalmani shoves the blame on to PriceWaterhouse, while the auditors try shoving it right back to them. Meanwhile, news channels are recording higher TRPs as the Satyam saga unfolds

Satyam rhyme

Raju Raju
Yes baba
Cheating us
No baba
Telling Lies
No baba
Open the balance sheet
HA HA HA

raju

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bear-industry-bull-itI am fascinated with the accounts of the latest corporate fraud by one of our so-called corporate leaders. Satyam’s Ramalinga Raju was one of those blue-eyed boys for the media; there were quite a lot of nice articles (fed or otherwise I don’t know) about him along the lines of those written on Infosys N R Narayanan Murthy and Wipro Azim Premji.

Interim CEO Ram and their auditors Price Waterhouse are now desperately trying to put a distance between themselves and Ramalinga Raju. Stands to reason, that certifying the existence of a non-existent Rs 5,040 crores requires the collusion of a lot of people. In their damage control exercise, I have a feeling Satyam will make Ramalinga Raju alone the scapegoat and suppress evidence of the involvement of other Satyam employees.

The Short Re-capit-fraud

Camera rolling! Lights on! Action! SEBI probe, seizure of books by Registrar of Companies, CFO quits, class-action suits from NRIs in the US, new head at Satyam, a Rs 7,136-crore financial mess and……we still don’t know if we have reached the climax.

The Defense

Ram Mynampati looked like he had being hit on the back of a head with something sharp and strong at the recent press conference. His favourite response was, “We can’t say now, but we are assessing the situation.” Which basically means: “I don’t know. I just got here.”

Media: Mr Ram, how much has the inflation of profits been. What is the real status-quo?

Ram: We can’t say now. Our accountants are assessing the situation.

Media: What is your current liquidity position?

Ram: We can’t say, but we are assessing the situation

Media: How many employees are currently working with Satyam?

Ram: We can’t talk about the gravity of our financial situation, the number of employees or the extent of damage done. But we will get back to you on this.

Media: Since when have you started assessing the situation?

Ram: We are confronted with this situation just 36 hours ago. We are trying to assess the situation and trying to have an understanding.

Media: Do you have enough working capital?

Ram: We don’t if we have enough cash to pay the salary bills for January but we will soon know.

Media: Will you be a lodging a criminal complaint against Mr Raju?

Ram: We haven’t decided. The law must take its own course

it-fraud2There is also the feeling that Mr Raju’s confessions may have been doctored. The confession doesn’t bear any signature and was released by the company, not by Mr Raju, who has currently made his whereabouts clear through his lawyer.

SEBI also doesn’t come out in a good light; they seem to have given IT companies far greater license because of their significant contribution to foreign exchange. Is Satyam just the tip of the iceberg? Are there many more such IT companies?

In his unsigned letter, Raju has said that the company had inflated its revenue for years in its reports.

But, what about the IT industry at large? Already with the capital markets crash and the downturn in the US economy, IT companies are in for a tough phase. This scandal is really going to dent their image and probably lessen their international client base.

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