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(A)Sathyam Fiasco: Ramalinga Raju is More Efficient than the Lakshar-e-Taiba

Discussion in 'Wednesdays with Varalotti' started by varalotti, Jan 8, 2009.

  1. varalotti

    varalotti IL Hall of Fame

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    Dear Aishwarya,
    To use the Tamil adage, you poured milk in my stomach. I was sort of feeling bad whether I had unconsciously hurt you or anybody in the IT sector. Reading your post I felt relieved and now could focus on a difficult set of accounts sitting on my desk for a month now.
    thanks,aishwarya.
    love,
    sridhar
     
  2. Mindian

    Mindian IL Hall of Fame

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    dear sridhar sir,
    a fantastic post about the most talked about recent fiasco..and i share your concern for the employees..and appreciate your advice too...sadly in such cases again it is the working class that suffers..like the scams before this too will be forgotten in a few days...
    as an auditor i was wondering what is the punishment for PWC......what about arthur anderson after the Enron scam what price did they pay...
    do let me know...
    thanks in advance
    love
    Mindi
     
  3. varalotti

    varalotti IL Hall of Fame

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    You are perfectly right, Bhuvana.
    You know something, it is because your money has come from your sweat and blood,I want you to be very careful with that.
    love,
    sridhar
     
  4. varalotti

    varalotti IL Hall of Fame

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    dear Mindi,
    thanks.
    No doubt PWC deserves a severe punishment. I am not that hopeful of the punishment coming from our Institute. But I am sure PWC has spoilt its name and many clients are already walking away from it. Now if somebody says, "PWC audit my accounts." people comment, 'Oh, how much did you fudge?'
    Today the CFO has given a confession to the police. He says that the company even printed a forged Bank FD Receipt. When he asked Raju whether we can borrow money from the bank on the FDR, the latter said, try to manage with the operational cash.

    The newly appointed auditors are going to come with the facts, may be in a week or ten days time. Only after Satyam restates its accounts we'll know where it stands.

    love,
    sridhar
     
  5. padmavathi m

    padmavathi m Silver IL'ite

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    Dear kamla Madam,

    I am posting this thread for the 4th time..............since 2 days................
    Thank you so much for the concern you have shown to us Satyamites............your words made me to keep patient and just wait for good things to happen at the earliest..................
     
  6. aishu22

    aishu22 Gold IL'ite

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    Dear Padmavathim,
    I wanted to write to you, but forgot it in the midst of work.Apologise...
    Please stay strong.As you might be knowing i'm sailling in the same boa too.My DH works for Satyam.
    We need to be strong, no other option.I'm praying and seeing some hope at the end of the tunnel.
    I strongly feel in hearts of hearts - this negativity is going to bring in some positivity and the day is not very far.

    Lets Cheer up!
     
  7. padmavathi m

    padmavathi m Silver IL'ite

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    Dear Sridhar..........

    Its so nice of you to give every updates that is happening in Satyam, because i dont want to watch TV for any news on Satyam..........its so disgusting to watch news channels.........always exaggerating every news to the maximum

    I thank you so much for the prayers ...............Just keeping my fingers crossed.........of course we can manage 4 to 5 months till we get a solution for this tsunami which has devastated the dreams of 53k employees.............added 8k employees recruited and waiting for things to happen...........Raju has become worse than a natural calamity........yes tsunami has killed thousands of people, they have gone out of this crooked world.................but we ????????????????...........
     
  8. padmavathi m

    padmavathi m Silver IL'ite

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    Dear Aishu,

    Thanks a lot dear..................no apologising for anything..............i felt upset the first 3 to 4 days............now learnt to live with that and hoping for the best................God will not let us so easily, or it can be taken this way too we will not leave God Almighty whatever happens because its HE who has created this for some reason...........HE will set it right...............
     
  9. varalotti

    varalotti IL Hall of Fame

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    Now news about further developments:

    Ram Mynampati, the interim CEO of Satyam is in the US to reassure Satyam's clients that its services would not be affected.

    NASSCOM has requested the other IT companies not to poach Satyam's clients.

    The Board is now considering the appointment of another CEO and CFO to manage the affairs of the company.

    The ADRs of Satyam (shares listed in the New York Stock Exchange) have gone down by 88%. But that should not worry us considering the fact the shares have already fallen to their lowest value in India. In fact today the shares picked up some value because of the new management.

    My suggestion to the employees, please don't show any knee jerk reaction. You are Satyam's most precious assets. In fact you are the only class of assets whose values have been understated. And it is your value which is going to salvage the company.

    It is too early to build up any hopes, though. As an accountant I will rather wait for the newly appointed audit-firm to restate the balance sheet removing the overstatement.

    Let's continue to pray.

    love,
    sridhar

     
  10. teju

    teju Senior IL'ite

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    Dear Sridhar Sir,
    Theres one question on my mind... Why did Raju reveal the scam now? How and why did he assume that this was the right time to expose. He brought down with him the other directors, the CFO and the auditors too. These people are close confidants of Raju with whom he would have a shared a close (personal) rapport too. His confession brought them all down one shot. I feel there is something fishy going on.
    His other better options were:
    He could have continued to siphon off the money.. (Satyam is still making profits-atleast 3-10%)
    He could stepped down from the board and run away with whatever he made..need not have gotten arrested...
    But he didnt..
    Why? There is something more than his confession. Something that we may never know? Its like as if he was planning a revenge/attack on his Board and auditors. Why is the question...

    As far as the big four is concerned - being a CA myself, I have started hating them. Big 4 is now definitely Big 3. Will help Indian CAs get more opportunities.

    Please let me have your valuable thoughts.
     
    Last edited: Jan 13, 2009

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