Being a trader in the stocks market, I am simply flabbergasted that a fraud of such huge magnitude could happen in Indian financial system... The promoter of this top IT indian company just confessed that Rs.5,000/- crores of cash reserves that is there on its books just does not exist !! I am deeply worried for the image of India Inc. in the eyes of the world...as also 50,000 strong work force of this Nasdaq listed company....and millions of shareholders.... Just shocking !!!!
I have read it in newspaper but I am not sure about the whole problem. Can you please share the source
The letter by the chairman is already in the public domain and is already shown live on every business television channels of India. Regards, RightMan
The stock news has devastated the whole Market. I was lucky enough to sell the shares @185 levels. After an hour, I was shocked to see @ 100 Rs. At the time of this posting, the stock is 44 Rs. News coming out reveal that fraud amounts to around 7000 crores (INR)
Yes very shocking and alarming too for the guys who are working in IT and ITes industries. I feel ashamed to be an Indian. @ RightMan you can think for investing in the Telecom shares along with other blue chip shares.
Yes I read and watch lot's of thinks about so called Satyam recently and I seen one special reports on Satyam on UTVi and it was very interesting. I don't know how SEBI will handle it. Because of it today Ramalinga Raju resigns from Satyam.
That's why we webmaster should away from this stocks. I agree that it's same like Enron. I am happy and I never invest in share markets but as experience with my father and my friends I suggest you to invest in stable shares like Bharti Airtel, you will be happy with investment with them.
The company's confession by itself isn't that worrying, what is worrying is how many of these companies are there? Will India face some sort of confidence crisis as what is happening in the US financial markets?
Satyam was supposed to be a stable company. It's India's 4th largest IT company. It is a part of both the main stock indices - Sensex and Nifty
That is exactly the point. Satyam was not a third grade company and it actually received a Best Corporate Governance Award in 2002 !!! I fail to understand what were the auditors doing all this while? One interesting observation....How do you expect chartered accountants/auditors to blow the whistle..when they receive their fees from the company itself..... You can not cut the arm that feeds you...can you? Regards, RightMan
ive written abt them chk the link, i traded in this stock today, but there were issues in trading as well.
I think this could be a big issue in next few days and I seen all business channels and found that number of case registered against Satyam. SEBI is also confirmed that they are investigate this and will take action too.
What on earth were the auditors of the company doing? Isn't a control supposed to be maintained on cash in particular?
In the email message to the Board of Directors, he had mentioned that "neither he nor his Managing Director took even one rupee/ dollar from the company and have not benefitted in financial terms on account of the inflated results". then why were the results inflated & the liabilities understated? Let us see the press release which is scheduled for tomorrow.
auditors were surely a party to this scam. there is no way auditors could have missed the Rs 5000 crore of non-existing cash that was shown in the books.
I also get to know that they hired those auditors and they also audit some other companies too, it means they may make mistakes in it too.
Now International Buyers and investor will loose confidence in Indian companies.. BTW satyam was 4th largest software company in India. You can estimate the effect on Indian companies reputation by this scam..