'SATYA' (TRUTH) NAILS SATYAM!!!!!

'SATYAM A BIG LIE'

This was what today's Economic Times was shouting compelling me to go through it. I knew that Satyam was under a cloud of fraud and that the World Bank had banned it for 8 years. But what actually left me shocked was the confession of Satyam Chairman Mr. Ramlinga Raju that the fraud had actually happened and even more surprising is that it had been under wraps for several years. More skeletons would be off the closet in the coming days amidst accusations and counter accusations.

Satyam Computer Services Chairman B Ramalinga Raju’s admission he had cooked the company’s books has undoubtedly left India’s fourth-largest software exporter struggling to survive the fallout, but his misdeeds may cast a cloud over the squeaky-clean profile of the entire sector, and by extension, the rest of the Indian corporate sector.

Satyam might be facing the heat right but the Satyam saga has clearly dealt a blow to the Indian IT dream.

The IT industry represents modern India. They are the ones who have created brand ‘India’ on Wall Street. But Raju's fraud might change the Indian IT dream forever. After all, the fourth largest Indian IT company, Satyam has fallen off the cliff, in what unfolds as the most dramatic frauds of recent times. Now, the clients would think twice before engaging with an Indian IT vendor. The reason is simple—they would ponder over whether the law of the land can be trusted anymore.

It’s certainly going to be tough ride for the Indian outsourcing industry with the recessionary pressure of the west on one hand and now, an image crisis.
Meanwhile, the international biggies like IBM and HP will benefit directly, unless the industry leaders go all out to defend their credibility.

But many experts believe that the damage would not be limited to the IT sector alone. There are various other sectors that would feel the pinch and would have to prove their credibility all over again.

The ET was saying that money worth 7000 crores has been manipulated with and if convicted Mr. Raju could face upto 10 years in jail or 25 crores fine or both. It was the failed Maytas Deal that pricked the Satyam bubble. It was the same Maytas company promoted by Mr. Raju's sons, that had bagged the prestigious Hyderabad Metro Rail Project and now that project is in doldrums as the Govt. of AP is said to be reconsidering it.

The repercussions were felt in the stock market too, when the markets fell by 749 points and Satyam's shares crashing by 80%. The stock market runs on sentiments and it would now be very difficult for Satyam to gain back that confidence of its investors. Sources say that Satyam has no money left in its accounts and would not run beyond a month.

From now on its a wait and watch game. With the law taking its own course, there would be more earth shattering SATYA (TRUTH) that would be unveiled and SATYAM - India's first outsourcing Company will virtually be history.