I.T. Giant: SATHYAM COMPUTERS' Asathyam FRAUD 7100 Crores.!!

[Sudhaama]

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. SHOCKING News of Huge FRAUD.!... Rs. 7100 Crores.!!

INCREDIBLE.!.. But cannot be UNDER-RATED.!!

The News from one of the IT Giants of India... SATHYAM COMPUTERS, Hyderabad..

http://www.hindu.com/2009/01/10/stories/2009011060330100.htm

Shame to India..!.. Severe BLOW on the Investment Climate.! Downfall of Business.!

..Serious Career-Accident for the Employees.!

..Severe Jolt on Shareholders' Trust.!

...STORMY Onslaught on the present CLEAN-IMAGE of India in the Global arena.!

A THOUGHT-PROVOKING Lesson for Indian Economy.!
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[app_engine]

I've been posting a few news reports on this item in the "Picked from papers" thread for the last few days BTW.

IMO, every big corporate in India had at some point of time at least, did things that are not totally correct. (The Ambani's are a big example and I can quote so many others).

In addition, every big corporate in India is forced to fund political parties (huge sums that we cannot imagine) and those cannot be shown in any "books". Most of the practices that are followed to get this money across cannot be discussed in the hub (or anywhere in the web IMO).

Only those that came out in the open are made big news. Satyam happens to be in the news of late for all the wrong reasons - trying to fund failing concerns of relatives, world bank ban, stock price fall and this is the pinnacle of the story - Raju coming out with "asathyam" confession / arrest etc.

After going through all these, I can smell some political compulsion for him to do so.

Also my another theory is after these IT companies got listed at NYSE, the possibilities of getting their "book adjustments" exposed / punished by international law has steeply increased. Which means, the CEO et al can be caught and tried by courts in U.S. and elsewhere, that also could mean punishment that cannot be easily escaped. Definite jail time for long. Probably to avoid that, get into Indian police custody / judicial custody and escape the wrath of FBI etc. After some years, nobody is going to care about Raju and he can live peacefully in some corner of the world with money stashed away in swiss banks.

[Arthi]

Also my another theory is after these IT companies got listed at NYSE, the possibilities of getting their "book adjustments" exposed / punished by international law has steeply increased. Which means, the CEO et al can be caught and tried by courts in U.S. and elsewhere, that also could mean punishment that cannot be easily escaped. Definite jail time for long. Probably to avoid that, get into Indian police custody / judicial custody and escape the wrath of FBI etc. After some years, nobody is going to care about Raju and he can live peacefully in some corner of the world with money stashed away in swiss banks.

Very Ture, Ironically MAYTAS ( reverse order of SATYAM= ASATYAM) brings all the fraud in the lime light.

It is a well planned fraud :x :hammer:

[Sudhaama]

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.Who the MAIN CULPRIT.?... Mastermind BENEFICIARY.?


...although LEGALLY & by Max INVOLVEMENT...it is CHAIRMAN.


And .. Let us NOT FORGET the MOST IMPORTANT High Role of AUDITORS.. the POPUAR.!



It is a well planned fraud :x :hammer:

Yes. By an Overview of CURSORY GLANCE... anybody will squarely blame the Chairman EASILY..

...and can LEGALLY catch him and PROVE TOO in the Courts of Law... resulting in the deserving Punishent as per Laws.

But that is the LAYMAN'S APPROACH.!

We the wise people... must be able to READ BETWEEN THE LINES... of Truth and Perversions.

Yes. I am able to approach different... and FEEL THE PULSE of this Episode...

..because of my several BITTER-EXPERIENCES in my long PROFESSIONAL CAREER...

..by Challenges and Onslaughts constantly antagonising the Ideals of Human-Values...

..by Responsibility of the Seat... Principles of Moral-Life... Answerability on Commitments and the like...

..as the Civil-Engineering Executive... in several Organisations...

..including the high status as the Board-Member / Executive-director

In this case I doubt... Mr Raju, Chairman, a Gentleman... has been mis-used...

... as a PUPPET in the hands of some Mastermind behind.

One day in future we will come to know the True Culprit.

Who is that MASTERMIND... BENEFICIARY...

..Cleverly escaped from the Pangs of Law...

...making their PUPPET Raju... to be the SCAPEGOAT.?.
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[app_engine]

http://www.hindu.com/2009/01/24/stories/2009012455251500.htm

There are now allegations that even though there were only 40K employees, payroll was run for 53K and an amount of 20cr got siphoned off each month.

This is probably the most comical one to discuss about a software company (that probably develops / maintains payroll software for a number of organizations).

Headcount is one of the basic measures of any software company and in this age when all the salary is being credited to banks, it's highly improbable that auditors can miss this, that too the PWC kind - who themselves implemented Peoplesoft in many organizations earlier.

ஒண்ணுமே புரியல்லே உலகத்திலே:-(

[Sudhaama]

.
. What for the AUDITORS are provided.?

.Are they Not the Policemen engaged to WATCH & GUARANTEE..

... on Business and Finance.?



http://www.hindu.com/2009/01/24/stories/2009012455251500.htm

There are now allegations that even though there were only 40K employees, payroll was run for 53K and an amount of 20cr got siphoned off each month.

This is probably the most comical one to discuss about a software company (that probably develops / maintains payroll software for a number of organizations).

Headcount is one of the basic measures of any software company and in this age when all the salary is being credited to banks, it's highly improbable that auditors can miss this, that too the PWC kind - who themselves implemented Peoplesoft in many organizations earlier.

ஒண்ணுமே புரியல்லே உலகத்திலே:-(

I am not all surprised to note such a daring BUSINESS FRAUD...

..involving several co-functionaries... to BLATANTLY CHEAT all concerned.

Being one of the members of the Board of Directors in a Ltd. Co... I used to get shocked to know such sully affairs...

...even in some of the popular companies...

..not only within India... but all over the World.

The only strange fact here, is... that other companies could tactfully manage to hush...

..since they do proportionately less and gradually... such that those shady deals can be buried under the beds easily.

Whereas these people had played such a massive havoc.. which nobody could manage to hush up beyond certain stage.

So the bubbles are bursting out one by one.

Let not anybody think... that the whole money swindled has reached just one pocket...

..but severals: Some sharp tongued agents of the Sharehlders, Competitors... politicians.. GOVT. BANDICOOTS.. Auditors... business canvassers... BROKERS... etc. etc.

Poor RAJU, CHAIRMAN.!.. plus his Family.! and Relatives.!

..the BLINKING SCAPEGOATs... EASILY VULNERABLE...

...to fill some wicked bellies..THE MAX BENEFICIARIES.

... Tacfully escaped and HIDING BEHIND.!

I squarely PINPOINT the Auditors.. who are RESPONSIBLE TO THE MAXIMUM.

Can all the DIFFERENT Auditors concerned... escape on this.?
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[Nichiro]

Such people need to be tried by Talibanic type law.

[app_engine]

I met a Satyam guy at a lunch with some old team mates at Detroit and he was telling that so far no issues for salary / health ins.

It was comforting to hear because another Satyam person "allegedly" told one of my friends that she is expecting a baby in a couple of months and was informed by the health provider (insurance company) that she is no longer covered as Satyam didn't pay:-(

I really don't care about the shareholders - they knew the risks involved anyways. Neither do I care about customers in this recessionary market, they can get companies jumping and taking over.

I really feel for the employees - especially those people who are in projects abroad, with visa restrictions etc and cannot easily switch while also expecting some hospital visits and such situations that can easily bankrupt them.

[app_engine]

I also read somewhere that a couple of PWC auditors got arrested as well.

[app_engine]

http://online.wsj.com/article/SB123360544754940545.html?mod=googlenews_wsj

Possible relaxation of price norms to put Satyam on "SALE" price as nobody will dream of buying the company at Rs 270 a share :-)