Today where on one side the country is already facing economic crisis, one more bad news came from a very high-profile IT company, Satyam Computers.A lot of dramatic action took place here when the share fell down by more than 70% and Satyam chairman Ramalinga Raju , resigns and admits his fraud.
All this certaintly put question mark over the corporate practices of companies in India. As stated in one of the newspaper Satyam’s balance sheet as on Sep 30, 2008, carries an inflated (non-existent) cash and bank balances of Rs 5,040 crore (as against Rs 5,361 reflected in the books). Further, it carries an accrued interest of Rs 376 crore which is non-existent. It also sends a negative signal to the foreign institutional investors. Satyam’s fraud is expected to lead a severe blow to the entire industry with investors being more cautious going ahead. All stock exchange listed companies must comply with RTI Act because these companies own and operate on shareholders money which is 10 times the company quarterly revenue.
Anyway, I would like to praise Raju for his honesty to admit the fraud done by him. Need not mention, there are much bigger fraud done by people like Amar Singh, Lalu Yadav etc. Do they admit their faults ever or have any action being taken against them?
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Though, it is a terrible situation for Satyam along with the economic crisis that India and rest of the world is facing. I am sure that Indians will come out of it with their heads high. However, I do not support when government whether here in US or now in India is bailing out these Corporations with the tax payers money. These are their own wrong doings that lead them to this. Why our tax money should be used for the private sector. I am sure thousands and thousands of jobs are on stake but when the corporate world did shared its profit with an average Joe out there who is working hard to put food on the table for his family. These executives who made millions should be thrown in jail.
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