Satyam-"A misnomer"

 

(Top executives of the beleaguered Indian outsourcing company Satyam Computer Services struggled to reassure investors, employees and clients(bottom) and Chairman of troubled Indian Outsourcing Company  Satyam Computer Service,Ramalingam Raju)

The Sathyam scandal has been considered as "India's Enron".The name 'satyam'  has become a misnomer as the word means truth.Seven days after the birth of the year 2009,a letter was sent from the chairman of  Satyam Computers(Ramalingam Raju) to the SEBI(Securities & Exchange Board of India).This plunged shockwaves across the country.Nobody could believe this disaster.Raju acknowledged his culpability in hiding news that he had inflated the amount of cash on the balance sheet of India's fourth-largest IT company by nearly $1 billion, incurred a liability of $253 million on funds arranged by him personally, and overstated Satyam's September 2008 quarterly revenues by 76% and profits by 97%.He apologised his inability to close what he began.He said that it was a humongous task to get down,riding a tiger and not being eaten by it."marginal gap between operating profits and the one reflected in the books of accounts" but grew unmanageable. "I am now prepared to subject myself to the laws of the land and face the consequences thereof," he wrote.

The letter shocked and angered corporate India, which has looked to IT executives as role models for a new breed of Indian entrepreneur.The benchmark Sensex stock index dropped 7.3% and Satyam shares fell nearly 78% on the day as investors fled in droves.The misfortune has happened when the India Economy just had a start of renovation against recession. 

The year started in an unpopular way.With the shocking kleptocracy in the Indian Enterpeuner sector,the Indian Corporate is in a predicament in front of the global economic hub.