The Fiasco started from the time when the .dotCom bubble bursted around the oncoming of this century and Satyam acquired a company IndiaWorld which was overpriced and the Satyam had to fudge with the Account books to show it in good health and thus show Satyam’s action to be still a trustable one.
Since that year in 2000, this kept on happening year on year with the display of false pricing of land by overpricing it to an extent which could cover their fake data year on year until last month when Satyam tried to finish it for once and for all.
For clearing the fudged books, what a company like Satyam could think of was to acquire another company which could be evaluated at the same level of the frauds and they don’t have to pay a thing. But who possible give them his company without taking any money of the evaluation as huge as 7000 crores. It could be nothing more than a home firm started just for the same purpose and it was named as nothing else the inverse of the name Satyam i.e. Satyam spelled backwards and it makes Maytas.
But if everything could have gone as planned, I wouldn’t have been writing this and it actually didn’t. To cover the 7000 crore gap in their accounts, they had to inflate the evaluation of the Maytas to the same which didn’t feel right to the Board of Members of the Satyam and other major share holders. This somehow brought the whole plan of the Satyam on the front and the brought the great fall of the India’s one of the major IT industries leaving behind 50,000 employees stranded nowhere and their families.
1 comment:
The Satyam fraud is definitely a black mark on the Indian IT industry which was considered of world standards and has tarnished the image of India Inc. and investor confidence which will take a long time to restore. The need of the hour us stricter regulations and pro active attitude on the part of government and SEBI to ensure that such incidents do not happen in future.
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