I could not resist but talk about this today when I heard the news of Satyam CEO resigning and confronting the fraud he has done to pump up the profits. These profit had been inflated for years and no one knew about it. Today Satyam Computer shares crashed by Rs 139.15 or 77.69 per cent to close at Rs 39.95 which left many of my investor friends shell shocked with their losses in stock market.
Satyam Chief Raju turns Satyam into Asatyam
More than anything, it’s a doubt raised on the corporate governance practice in India. Even though it’s an isolated case, eyebrows are being raised. Though Infosys director claims that there is no loss of faith in Indian IT firms considering it as one odd case, but it is a shameful activity certainly. Analysts are calling it as India’s Enron scandal. Moreover, many of them are suspecting that Satyam Computers can be removed from main indices like Sensex and Nifty.
The only purpose I am writing it today is because it’s a shocking news for me, being in IT – it’s matter close to my everyday life.
You would be interested to read the full text of Ramalinga Raju’s resgination letter – here you go!
This was really a shocker! I mean, the ease and calm at which Mr. Raju was speaking and also communicated the matter to the board was so irritating. I am sure he must have piled up money and siphoned it to his family businesses.
I am at personal loss as well as I hold some Satyam stocks
He will really face some tough legal action – not just in India but in the US as well because it’s listed on NYSE