I saw it in news and I was myself surprised. Its a famous company and such a big fraud can't be expected from a brandname like Satyam.
@Rightman India Inc. brand image certainly will suffer a set back after this fraud and I wish SEBI handles it seriously to uphold India's image. Unfortunately, since Satyam is listed on NYSE it is also open for probe by US as well. We will have to wait and watch how things will turn. I am also wondering if other companies will follow the path...Indian investor is already in doldrums and I cant imagine the worsening plight Is this an alarm bell for total revamp of companies' audit system in general?
Given that this happens during the aftermath of the financial crisis and scandals of Wall Street, I guess the typical honest Indian listed companies in both Nasdaq and NYSE will be affected to no small extent. There is already a confidence crisis and this incident just extend the crisis to foreign companies listed in US stock markets.
Yes but it will help us to audit corporate companies better and we would see some changes in next few days. Here Company doesn't did wrong but CEO did a wrong things and he accepted it. Although I don't think it will make any big impact on Brand India as Satyam already blacklisted by World Bank few days ago for 8 year on the base of steal the information. But after this Sebi and Government will make changes.
This is a big lesson to every one So never try to cover up mistakes you make you may land up in even bigger ones
The big sufferers will be the employees working in satyam they might have lost there sleeps and mainly during this recession period there is hard time for them to find any jobs.
http://en.wikipedia.org/wiki/Satyam_Computer_Services_Ltd. Very interesting... name and work... contradicts Govt should take immediate extreme action... not sure how many companies are on same boat. No doubt in 2009 this is BIG STORY for us specially who is working in IT and ITes fields
Yes it's a big question for more then 50,000 peoples who might lost their jobs just because of it. I think Government should take control over the management and try to secure those people's jobs.
That will results in nationalization and I think this is the last thing India industry wants at this moment. Nationalization is really a recipe for total failure. At least now it is partial failure.
Why waste government money for supporting a loss making company? Most of these 50000 people have high paying jobs and can survive for a few months without a job. There are many better uses of national wealth than supporting almost dead companies.
It's not wasting money or take over it, but can take control for few months and to settle the things and take steps to create healthy environment in company. It was advised by someone on News channel.
My suggestion is that government should step in, only to form a committee headed my person like Mr. Narayan Murthy. He would be the right person to co-ordinate with senior managers who have already committed to stay with Satyam, inspite of all odds. Reaching out to existing clients and preventing asset-stripping of physical things as well as skilled manpower, is of paramount importance at the moment. Regards, RightMan
Who is going to pay the salaries and various costs? According to Raju, he has dumped Rs 1230 crore in the company in last 2 years. The company made a tiny Rs 63 crore of operating profit in last quarter. Obviously, there must a loss at the net level. A bunch of cases have already been filed against the company. These cases may result in losses of millions of dollars. No new client will come to the company now. Many existing clients will leave. Employees are already searching for new jobs. No bank will lend to the company now, unless the company starts mortgaging its assets. The company is already in ICU. At best the government can postpone the death by a few months.
This is ridiculous.unbelivable from a company like sathyam which is one of the biggest software company in India.thank god my investments are safe!
Yes you are right Company have no future and it also make big question mark on employees of the Satyam. I am sure Raju made his life by dumping such a huge scam. I am sure he will behind the bar for atleast 10 years.
@RightMan Instead why not a big company like Infosys/TCS come and bail out Satyam by buying its majority stakes? We know two airlines joining together like this; the Kingfisher and Deccan!
many indian people effect with this company and shocked when they heard this news. they got loss in share market and the reason is only and only satyam computers.
Well it can be possible and throughout this drama, Infosys are making too many comments and we will not be surprised to see some one buy stakes in company as Company's share too much down and drop to two digits only.