Keep us posted on your answers for those questions. It will be interesting to see how is those whole thing turns out...I think Raju is an US MBA ...
B/w is there any rating for auditing firm (PWC in this case) from an independent rating authority. I think auditors needs to be punished every time they make a mistake like this. If auditing firm is just let off at the end of this whole mess it is pretty bad for the investors. Independent auditors as you mentioned should have worked clandestine in this. So do some of the board of directors (including the one from ISB who resigned after this Satyam debacle). Lot of them have gone underground already.
Just FYI, just 3-4 days before Raju exposed this mess to media, he had asked the Satyam employees to buy shares on Satyam in open so that the company can revoke any takeover attempt. Interestingly the poor employees had close 1% stake on the day the whole thing got exposed.
seeyaren
· 11 months ago
What if there was indeed a "boosted" surplus cash in the bank and it was siphoned off and hence claimed by him now as non-exixtant
Nandu
· 11 months ago
I don't think Audit firms are rated directly. Its more about their market reputation. Post Enron Arthur Anderson ceased to exist. Specific to this case if PWC is indeed proved to be involved in the fudging no one would want to do business with them. I am not sure if PWC will have any liability as well.
I agree. There could possibly be some involvement from Board as well in this fraud. Its tough to believe that Only Ramalinga Raju/Rama Raju were involved in a fraud of this magnitude.
Lot of Satyam employees have not only lost money in stocks, there's lot of uncertainty on their jobs as well. They don't know if they will get their salaries in Jan and employees have started actively looking out. Given the economic situation market is not that good for job. I expect a round of mass lay-off from Satyam.
Nandu
· 11 months ago
Seeyaren, That's a very valid point. There is definitely a possibly of that. It may be a combination of fudging books and siphoning off money.
CHARU
· 11 months ago
Hi..the authorities need to dig deep to find out the gains acheived out of this by Satyam.
Sridhar of Delhi Metro was the first one to object on the Maytas operation when Maytas was awarded the Hyderabad Metro.With the property bubble bursting in the USA the chaois theory could have resulted in Satyam trying to save Maytas, bringing the episode out,quicker than expected.
Besides, i doubt that money was the only motive.It could be Ramalinga Rajus effort to push his company and match the Big 3 like TCS,Infosys (to be in their league)which could have led to inflated profit balance sheets in collusion with the shameful Auditors.
K.Ravi
Nandu
· 11 months ago
Good Comment Ravi. I agree there is definitely a linking between the Satyam Fraud and Maytas. Maytas is known to under quote and win large project. Lot of people have expressed concerns over viability of their projects.
W.r.to Satyam, When its competition(WITCH) companies are showing healthy growth it needs to keep pace else it is going to get left behind and also its stock will take a beating. The underlying reason is still stock price and some of the contributing factors could be projecting itself to be in the big league, creating market perception(Key for winning business), etc.
All Comments
B/w is there any rating for auditing firm (PWC in this case) from an independent rating authority. I think auditors needs to be punished every time they make a mistake like this. If auditing firm is just let off at the end of this whole mess it is pretty bad for the investors. Independent auditors as you mentioned should have worked clandestine in this. So do some of the board of directors (including the one from ISB who resigned after this Satyam debacle). Lot of them have gone underground already.
Just FYI, just 3-4 days before Raju exposed this mess to media, he had asked the Satyam employees to buy shares on Satyam in open so that the company can revoke any takeover attempt. Interestingly the poor employees had close 1% stake on the day the whole thing got exposed.
I agree. There could possibly be some involvement from Board as well in this fraud. Its tough to believe that Only Ramalinga Raju/Rama Raju were involved in a fraud of this magnitude.
Lot of Satyam employees have not only lost money in stocks, there's lot of uncertainty on their jobs as well. They don't know if they will get their salaries in Jan and employees have started actively looking out. Given the economic situation market is not that good for job. I expect a round of mass lay-off from Satyam.
Sridhar of Delhi Metro was the first one to object on the Maytas operation when Maytas was awarded the Hyderabad Metro.With the property bubble bursting in the USA the chaois theory could have resulted in Satyam trying to save Maytas, bringing the episode out,quicker than expected.
Besides, i doubt that money was the only motive.It could be Ramalinga Rajus effort to push his company and match the Big 3 like TCS,Infosys (to be in their league)which could have led to inflated profit balance sheets in collusion with the shameful Auditors.
K.Ravi
W.r.to Satyam, When its competition(WITCH) companies are showing healthy growth it needs to keep pace else it is going to get left behind and also its stock will take a beating. The underlying reason is still stock price and some of the contributing factors could be projecting itself to be in the big league, creating market perception(Key for winning business), etc.