A Black Day for India Inc!
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Is the political leadership of India inc confused, indecisive or weak?
I am still wishing happy New Year to friends and loved ones. But today’s drastic development has put everything in a fix. Well it took less than 24 hours for once 4th largest IT Company of India to loose more than 60% of its market camp. All credit goes to Raju, who has created history by announcing the biggest ever fraud in India Inc amounting to 40 Billion rupees.
It used to be said that Hyderabad had two major landmarks: the Charminar and Ramalinga Raju, who created the company, Satyam Computer Services. Satyam means truth, but Raju, owned up to creating a tissue of lies. The controversy began when Satyam indicated that it wanted to buy stakes of 100% and 51% respectively in Maytas Properties and Maytas Infrastructure. That day itself Indian Inc reputation hit a new low. And today Raju had hit the final nail on the head of India Inc by admitting that profits at the company had been falsely inflated for years. The stock fell more than 80% on Wednesday, leaving the company worth around $500 million, against nearer $7 billion just six months ago. With this the future of India’s 4th largest software company with more than 50 thousand employee hangs in middle. Someone termed it as the India’s Enron scam. And the major culprit happens to be Mr. Raju, the Ernst & Young Enterprenuer of the Year 2007 that have nothing left to call the shots.
This development put a big question mark on whole of India Inc. They have to unite and prove to the world that satyam is a one off incident in India’s corporate structure, in spite of having a five star board of directors and auditors i.e. PWC (Price Water Cooper) satyam management manage to have there say. And a person holding less than 10% stake in a company can manage to swindle such huge funds without any knowledge to others.
I hope the satyam scam to be a one off case and not as we have opened a can of worms. This is not yet known as only the time will tell the real truth about India Inc. But one thing is certain, coming days will be a litmus paper test of India and how we cope up with this problem.
