A few days ago when I asked “Are We Seeing Satyam Slipping?” I myself never imagined what the company and its shareholders- if not the employees-were in for. Today the stocks of Satyam have fallen by 62 % as of now with Chairman, Ramalinga Raju submitting his resignation while admitting to fraud.
TV channels are now saying that fraudulent practices have wrought havoc in the financial statements provided by Satyam. This appears to have gone on for years. Over Rs. 7000 crores is said to be involved. The Chairman’s letter to the Satyam Board is here. It sounds unbelievable that the Members of the Board or the Company’s top management had no clue as to what was going on.
How ironic that the Chairman and Founder of the company called Satyam (which means Truth) should have done and said things which seem to be far from the truth.