Friday, January 30, 2009

Satyam Fiasco

2 Billion worth or 1 billion worth fraud. A brand new board and bad word of mouth for Indian IT companies certainly to have impact on Indian credibility in US and other clients overseas. A desperate attempt to restore the day to day working of the organisation. Action against former founder in India and Us courts.

Satyam a potential takeover target from as large as 5 org's and 3 PE firms. L&T increased its stake from 4 % to 12%. Loss of one is opportunity for someone else. Other firms of Satyam Umbrella brand are also under scanner and likely to face undue pressure in coming times.

Also its very agonising for the employees. The issue also raises doubts over the integrity of Foreign Auditing firms ( PWC ) which were involved in the graft.

Lets wait and watch the future developments.

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