Its clear now that Raju was not a gentleman. New name coined for this whole saga " Enron of India"
The role and credibilty of the auditor , advisor all at stake.
Chor machaye Shor:
Ramalinga Raju, chairman of Satyam Computers resigned from his post and confessed to indulging in fraudulent activities like inflating the books for several years. Raju has written a letter to the board giving details of the balance sheet. Balance Sheet has inflated cash balances of Rs 5040 crore and accrued interest of Rs 376 crore is non-existent. Rs 1230 crore was arranged to Satyam and is not reflected in the books. As per the revelations, second Quarter numbers were inflated to Rs 2700 crore vs Rs 2112 crore actual numbers. According to letter of Mr. Raju to the Board of Directors, with copies to Public Authorities, No board member had any knowledge of the real situation of the books. From this it is amply clear that the management of the Big Corporate Compnies are governed at the dictate of the so-called Owners of the Compnaies, and Shareholders are just silent spectators to see the effcet of the same.
For such a unprecedented scam of Rs.7,000 Crores as flashed by TV Channels, can we believe that only Ramalinga Raju is responsible individually or the entire system should be made responsible. We learn nothing from our past. Harshad Mehta scam was also unprecedented till then. This shows that our Corporate System is working with any accountability, because they are allowed to hide anything on the alleged pretext of the commercial confidence, trade secret etc., without defining that what should be covered within the meaning of the commercial confidence, trade secret etc.
whom to believe now?? Now may be all IT companies will be coming under scanner and the credibility of IT industry as a whole will be a question mark.
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