CHURUMURI POLL: Is Satyam alone in scam?

India’s fourth largest software company, Satyam Computer Services,  has admitted to a gigantic fraud of Rs 5,000 crore—and more.

SEBI chairman C.B. Bhave has termed chairman B. Ramalinga Raju‘s confession as “an event of horrifying magnitude“, while T.V. Mohandas Pai of Infosys Technologies has said the fraud was “deliberate“. Infosys chief mentor N.R. Narayana Murthy said, the incident was “shocking”, “painful” and a good reminder to other companies in the sector”.

The IT industry body, NASSCOM, has termed the  Satyam fraud is a “one-off” case: “This is not in any manner a reflection on industry or corporate India.”

rwbasatyam070109Do you believe the Satyam fraud is an aberration? Or do you think that such creative accounting is standard operating procedure in Indian business? Do you think several corporate indulge in such hera-pheri which is why they post such mind-numbing returns? And will this incident have a lasting impact on the IT industry, and the confidence of lay investors and shareholders?

Also read: Do they really teach this at Harvard Business School?

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49 Responses to “CHURUMURI POLL: Is Satyam alone in scam?”

  1. Narayana Says:

    I strongly suspect Raju is actually committing fraud now rather than committed it earlier. I have studied the balance sheet yesterday night.

    I doubt that the figures could be fudged seven years in a row. The money he says was not there was being held in banks.

    last years balance sheet had following audited figures

    3317.70 crores in on depoosit accounts and 956.29 crores in current accounts in scheduled banks!!.
    The money held in non scheduled banks was Rs 179.78 crores.
    Auditing agency I believe is PriceWaterhouseCoopers.

    I feel unless the bank statements were verified auditors would not have signed. In all probability Satyam did have money on the books till the last audit. Recently someone was mentioning that satyam liquidated the bank accounts and started holding cash reserves. I was wondering why Satyam was doing it. First Raju tried to take out money through Maytas deal. His move back fired and he lost his equity stake!. To prevent further erosion, Raju said he would rollback the Maytas deal and now hie is trying to decamp with entire cash saying that the monies were on account of fudged balance sheet. Raju family is diverting the attention of law agencies by alleging fudging. Plain and simple. The fudging is happening now!!!
    The best way to protect investors now is throw Raju and all his family into jail and restating Q3 unaudited balance sheet

  2. goodgrief Says:

    Can someone post the Bio of Ramalinga Raju.

  3. karthik Says:

    I dont understand why Mohandas Pai, a HR director of all things is commenting on this.

    We see him increasingly more in the media for all the wrong reasons… showing up in events where his presence is unnecessary, commenting on topics where he has no good inputs…

    Narayana: Your conspiracy theory has piqued my interest :)

  4. Bhamy V Shenoy Says:

    This Tsunami is of the worst kind for Indian economy which otherwise could have escaped the finacial melt down with minimum pain. Western business media is likely to paint the whole of Indian economy with Satyam kind of scandals unless the government takes steps to stop such an attack. It is in this background what Mohandas Pai of Infosys has done is correct and responsible.

    What a shame! Satyam’s Byrajju Foundation was an exemplary NGO and now it will also be tainted.

    This debacle has come at the worst of times for India. But it is a small wonder that Indian economic system is capable of punishing wrong doers like Satyam, but why is it incapable of punishing political scoundrels like Mayawati (Diamond queen), Deve Gowda (mannina maga having allegedly more than Rs 2000 crores), Lalu Prasad Yadav ( no one has counted his crores), Jayalalitha, Karunanidhi, etc?

  5. Koli Manja Says:

    Narayana – You sure make a point. Ramlinga’s confession is a red herring to divert attention. This crook ramlinga would certainly have many tricks up his sleeve.

  6. babuds Says:

    It is well known fact that Indian companies colluded and sometimes abetted by their auditors, do cook the books on regular basis; in order to;

    Cheat the nation of taxes
    Cheat their own investors
    Jack up or bring down the stock prices to suit their needs

    I strongly believe 90% of the ‘family run’ corporates in India would be hiding a load of skeletons in their cupboards. They also keep the regulators ‘happy’ in order to overlook such shady dealings or books

  7. Gururaj B.N. Says:

    There is a old adage about companies: “If I want to cheat handful of people, I become a conman. If I want to cheat on large scale, I form a company”.

    The fudging of acocunting by Satyam shows that all the so called controls, corporate governance SEBI Department of company affairs are meaningless mumbo jumbo. This episode will greatly shake the confidence of the public in all the companies.

    Lastly, let me share my experience of the companies I have seen closely: fudging of acocunts go on. Usually, in a manufacturing company, work-in-process and inventory in general is the place where the elephants are hidden! Since Satyam is not a manfuacturing company, Raju had to hide his elephants in cash and bank balances. Companies inflate stocks to show more current assets and more profits. Companies also book fictitious bills to book more expenses for claiming deductions under Sec 37 of the IT Act.

    Only difference in Satyam case is the scale of operation – euqivalent to the sum borrowed by India during Chandrasekhar’s prime ministership from IMF! Fudging of stocks and expenses goes on all the time. Mind you, I am not an acocuntant by profession, but have found this.

    Lastly, to answer someone havin grouse about Mohan Das Pai, I do not hold brief for him. But, he is not purely a HR man. He is a chartered accountant. He is eminently qualified to comment on the present scandal.

  8. Mysore Peshva Says:

    Dheerendra “Oracle” Gopal, I’m thinking of you.

  9. AnotherOne Says:

    If Satyam shows inflated profits, they would have paid taxes for what they haven’t earned. So what should the govt do now, return the taxes?

  10. Chet Says:

    The big suspicion as Narayana has pointed out is if Raju has committed a fraud recently only.

    Looking at the querterly numbers of Satyam, in 2007-08 financial year, Satyam has paid a tax of 226 crores. If Satyam had no real substantial profits, all these years, then why did they pay so much tax to the government?

    A strong suspicion is that Raju has diverted all the money from the books of Satyam into Maytas and now trying to fool people by saying that there were no real profits and it was all cooked up.

  11. vennela Says:

    I felt the same as Narayana .How can an audit group so blindly sign the papers without verifying facts.So i agree or rather of impression something fishy is happening now is the money of Satyam being transferred to maytas or so where promoter stake is high than in satyam

    Things are quite fishy how can none other than Mr. Raju knew abt the fraud such a grandscale This statement alone show that there is smthing wrong now than earlier

  12. Senthil Anantharaman Says:

    LET TRUTH BE SOLE BREAD WINNER………
    What is Satyam(truth)?What is the link between reality and Satyam(truth)?The link is this intelligence that sees the totality of reality and therefore doesn’t carry it over to truth. And satyam(the truth) then operates on reality through intelligence.
    What is correct action in this reality???And how will one discover
    what is right in this real world???? One has to discover for oneself, not to be told.One has to find out what accurate, correct, right action or right livelihood is in the world of reality which includes illusion………..

  13. Nitin Says:

    The other big question is it weren’t the Maytas fiasco whether this would have been exposed at all?

  14. vigyan Says:

    Few months back, When i saw the maytas – hyd metro deal, i felt that the deal is very good.. where the maytas will build,operate and maintain the metro rail system, in proposed routes by govt.. they will get the land from govt…
    the model of operation is – they pay in turn to govt 35,000 crore in 35 years, for this deal… they get this by charges and ads displayed on metro… its like highway and toll gates..
    so if they are paying 35K crore to govt, how much maytas would be getting???

    then i thought it would be nice if satyam get maytas metro project for design and IT.. that would be a big project for satyam… like GE has its US metro transport projects with satyam…
    transport projects are really big ones, and most beneficial ones…
    later i came to know that satyam is doing maytas project… and one of my colleague is into that project…

    ramalinga raju has started EMRI(108 service), and till one half year back he was running it by his own money.. later he expanded services to other cities in AP and now to many other states…
    last year in satyam annual day meeting, ramalinga raju spoke about EMRI and said it is doing very well and saving lot of lives… now EMRI is shared with govt. also…
    all IT services for EMRI, will be provided by satyam.. including vehicle tracking, maintaining routes, hospital information etc… so if EMRI gets bigger satyam gets more revenue from EMRI…

    so ramalingaraju developed different projects in home country such that, they will benefit satyam in a good way… So even if US gets into recession, there are many other projects that are supporting satyam very well, like for coming FIFA satyam is official IT sponsor, and satyam expanded to may other parts of europe, africa etc…

    so few days back, when i heard satyam maytas aquisition, i felt it was a very good deal… seeing the bright future of maytas and its infrastructure projects, and his relation with YSR, I thought satyam will be benefited most, as it is investing in infrastructure company in a developing country, where much scope is there for growth.. so right now satyam’s profits can be shared with maytas in construction phase and maytas can share its profit in later stage, when it is fully operating… I thought this would make satyam very big….

    Just a day later the shares prices went down by 50% and investors made big comments on board, and deal was taken back…
    investors and media said, how can a board agree to buy a property that is held by raju family and why the maytas was valued at 1.2billion…
    and they said it wil be a injection of satyam’s cash reserve into raju’s family…
    some said what raju knew abt infra, instead it is good for him to continue with software…

    But maytas is having good projects in hand and a land bank of 6000 acres, so the valuation is right, may be it is a bit over valued, but that should be accepted, seeing the future scope…
    When raju started software in india 20 years back, when not all people realised the growth potential, investors encouraged him in later stages… and raju is well known in AP as a rich raju family with lots of farms and lands…
    why did he get into software business??? its because he believed in the growth of software service industry…
    now when he believed, in infrastructure, which is obviously a big thing in developing country, investors dumped him…
    for example caterpillar is such a big company now, because it did the right thing when US was developing – it sold earth moving machines for all infrastructure that was being built..

    I felt raju will resign the board of directors of satyam and will concentrate more on maytas…
    Few days back, the same thing happenend… there was news that many directors resigned and raju also submitted his resignation…

    Now today when i saw the raju’s resignation letter… i was shocked, not because of what he stated in that letter about showing extra profits and the differences in cash reserves, but bcoz raju himself saying this out…
    now everyone is convinced why raju wanted the maytas deal – bcoz raju said there are cash differences so they wanted to balance this, so they overvalued maytas and tried buy it…

    Why he has to say this out now?? I think, there are some cash differences from actual to books, but now he has created more cash differences by generating some documents… so all the cash differences he has shown extra might be taken by RAJU… in this way he got money for the great effort put by him, for building one of India’s top 4 software service industry…

    Now since he has lot of black money (extra cash differences shown by him), he can win in any case against him, even CBI probe will be taken care by YSR, and raju can concentrate fully on MAYTAS and make it a leading infrastructure company in India and soon in world(consdidering the potential of infrastructure in India-most emerging powerful nation)… since in India to get big projects, we need to spend lot of black money, now that raju has it, he will soon become successfull with Maytas…

    What do you think??

    Thanks,
    Vigyan

  15. Karihaida Says:

    @vigyan,
    nice spin :) But please stop the BS.

    Hopefully the govt will wakeup or atleast or Murthy angadi, ipro will pressure the govt to make an example out of Raju, by sending him to prison for 10-20 yrs and that too very soon. This is the least we can do to show the world that we act on such fraud.
    Next in line will be real estate comanies, RNRL (any Anil Amabani comany), JP assoc etc. Just look at what happened to these stocks yesterday..

  16. oochara Says:

    @Narayana,
    Sir I think we should also consider that PWC (India) has none but Indians working under the roof. Now we all know what we are capable of, don’t we?

    See it yourself on the company’s track record (I have discovered it only after i made my above assumption on Indians and i still stick to my assertion)

    http://www.livemint.com/2009/01/07185424/Satyam-auditor-PwC-under-lens.html

    @Vigyan,
    Sir I think Mr Raju is the smartest guy amongst the IT folks. His capacity is immeasurable. But that reminds of capable Indians siphoning off to countries like America/wherever to make a living their. They did well there riding whatever they rode, but still they didn’t have visas!

    Now Sir, you might not like the idea and concept of “Visa”, but still you are culpable. Mr.Raju understands visa, but law doesn’t catch his globe trotting mind!

    @Bhamy V Shenoy
    Sir, people in the US say this often: don’t compare apple with oranges. Here in India we say nayi-gu mathu nari-gu ensambanda?…Politicians score big on my meter versus educated fraudsters like Mr.Raju herding some of the best minds (waiting to be molded) of my beloved country!

  17. Dheerendragopal Says:

    ROFL.

    hooohahhahhahahahaha

    Last Laugh :))

  18. Dheerendragopal Says:

    at 18$/hour consulting rate and 4:1 bench ratio . There was always suspicion on the way that they run business .

    Finally the ex constables, gully hudguru as coders will be out of Jobs.
    Life will be back to normal in Hyderabad or the HYPERAbad .
    What is the next business that the Gults are going to indulge in? lets wait and watch .

    Next INFOTECH ENTERPRISE ???

  19. Amit Vagarali Says:

    Today’s admissions by Ramalinga Raju, the former CEO of Satyam Computers, to the largest corporate fraud in Indian history could not have come at a worse time for corporate India. With the world economy in a tailspin , caused by the US subprime crisis, and growth in India slowing, this crisis to the one of Indian software industries titans could have devastating impact on the Indian economy.

    First there is the question of jobs. With Satyam employing 53,000 people, barring any miracle, most of these people would lose their jobs. With the IT sector hit hard by the economic downturn in the United States, and the other big three IT giants (TCS, Wipro and Infosys) dealing with layoffs of their own, there is not much appetite to accommodate any of the 53,000 employees who will be laid off.

    Second, there is the question of regulation, lack of oversight and independence. I find it hard to believe, no matter what Ramalinga Raju said in his letter to the board of directors and government regulators about none of the senior management and directors knowing that he was cooking the books. If Ramalinga Raju acted in this alone, then none of the BOD and senior management is fit to serve the company. But if the senior management and BOD’s knew and kept the shareholders, regulators and the employees in the dark, then are as guilty as him and must face the same fate as Ramalinga Raju.

    Third, there is the question of the regulators role in letting this happen. This scandal, which some are calling India’s Enron, puts the focus on the whether there is enough governmental oversight and proper corporate governance in all of the publicly traded companies. If this thing can happen in what was until recently a very respected company, claiming 150 of the Fortune 500 companies as its clients, what is there to stop this from happening in any other company. Was Satyam just an aberration or is it the first domino to fall from the cupboard of corporate maleficence that may be pervasive across corporate India? Should we believe the venerable Narayana Murthy when he says that this was an isolated case and a failure of governance?

    Finally, all of corporate India will be watching the authorities to see how fast they can get to the bottom of this. If there is even a hit of favouritism or corruption in how the case is handled, then the image of India as a emerging economy will suffer. If foreign and domestic investors cannot trust the authorities to do the job of safeguarding their investments and regulating a free and fair market, then investment will dry up and so will the economic engine. The boom that India has enjoyed over the last two decades will be just a blip in the radar screen.

    This crisis gives India an opportunity to show the world that when it comes to free and fair markets and ethical corporate governance, India is second to none. It must show the world that no matter who the guilty person in this scandal is, they will be brought to justice. The future of India depends on it.

  20. dotslash Says:

    @vigyan.
    dude..

    You appear to have followed satyam closely. Good for you.

    But, your writing doesn’t make any sense.
    Try rewriting.

    Thx.

  21. N Shravan Says:

    So a big fraud in Raju Angadi has been disclosed.
    It is surprising that irregularities of such a large scale should come out as a self disclosure. What had happened to the regulators, auditors and last but not the least the “whatever it takes” Indian Media?

  22. Sam Says:

    Raju Ban Gaya Gentleman!

  23. rk Says:

    Raju and the Number 7!

  24. Simple Says:

    One Question:

    People generally tend to declare lesser profits to pay lesser tax.

    Satyam has declared more profits on paper. Which means it has paid taxes for profit which did not exist.

    Isn’t that foolish?

    WHy did Raju do such a thing? Can anybody educate me?

  25. Not So Simple Says:

    Simple sir, let’s try this.

    show more profits – stock prices go up – sell out and make money

    show more profits – stock proces go up – company capitalization goes up – able to borrow more money to screw up more things

    company pays taxes, it doesn’t come out of donga raju’s pocket, so who cares?

    he sets his pay, perks and golden parachutes….no idea why he would come out now and act like a satyaharishchandra…

  26. KM Says:

    For all the comparisons made to Enron, can you really imagine an Andy Fastow, Jeff Skilling or Kenneth Lay writing a letter to SEC like Raju?
    I think RR is more like Hansie Cronje – the former disgraced South African cricket captain – more than anything else.

  27. Doddi Buddi Says:

    Dear All,

    I was talking to an industry insider today and he told me even the other majors like Moorthy Angadi, Biscuit & Oil Factory, Tatabyebye have also been assiduously cooking their books using various smokescreen and mirror tactics. Only they are not so greedy in siphoning off the money presumably in the larger interest of stock holders, slightly more decent career aspirations, some care for their employees and the genuine fear of regulatory authorities in the USA. He says it won’t be surprising to see a few large elephant skeletons tumble out from the cupboards of these IT majors very soon Some of them are already protesting their ‘righteous methods’ measuring their self-worth using Satyam as their basis:) Just wait and watch the fun:)

    DG,
    Nice to see you! Do englighten us more. Thanks.

  28. ramakrishna Says:

    It’s a big blow to the Indian economy. Sentiments of all investors particularly FIIs is dampened. It will have dominos effect and the maket may collapse due to selling from all quarters, particularly FIIs. Its time that the powers-to-be plung into action and to damage control before it has cascding effect. Some one should come forward to take care of the 50,000+ innocent employees and their families.

  29. kashyap Says:

    yes, definitely Satyam is alone in this scam reason see the location of its headquarters…

    By default AP people are known for their frauds as one of my friends refer to all companies operating out of Hyd as “Hyd based chor company”.

    I was not surprised by this, may be i will be if Infy/TCS/Wipro does this as they are no lead by AP guys.

    My 2 cents

  30. Koli Manja Says:

    Dodda Budi
    Would like to hear more from your friend the Insider. An insider auditor friend of mine mentioned Mindtree whose investor is our kappiday fellow and HCL are more notorious than murthy angdi, vegetable oil company and tatabyebye.

  31. Sandesh Says:

    “Some one should come forward to take care of the 50,000+ innocent employees and their families.”

    Exactly who is this “Someone” you are referring to ? I hope not the govt….which will then use up the tax payers money. I am not against helping the employees but hate to see that the frauds like Raju get away without any punishment whatsoever for his actions (I am assuming he WILL get away!)

  32. Industry Expert Says:

    Allow me to explain some simple concepts.

    1) there is no magic bullet in delivering IT services. If you are alot less expensive than your competitors, you are either:

    a) pulling a Satyam
    b) not paying your employees their legally due wages in the US
    c) taking money from employees illegally like Fed Income Tax returns and other penalties

    2) I’ve said this for years. “How can they sell that business so cheaply? Who are they? Satyam, TCS, HCL, Mindtree, Polaris. I worked for Satyam and couldnt figure it out when I compared our rates to other deals done at other companies.

    3) Who usually sells for rates that you think make sense. Infosys for sure, Wipro mostly, Cognizant more often than not. They were always looked at as being more expensive. It’s simply because they charge what you need to charge to make a legitimate profit.

    4) Better choices if you want quality and honesty are Capgemini, IBMGS, Accenture. They have quality people at an honest rate for what it takes to make a profit for the shareholders.

    5) Right now some firms like TCS are giving people away for free. Can someone explain to me how you do that and still provide shareholder value?

    Like I said at the beginning. There is NO magic bullet. Low ball rate major players are cheating somewhere. More expensive ones are doing it the right way.

  33. Andraprabha Says:

    When IT employees from Andra submit fake educational certificates, fake experience certificates, why an IT employer from Andra shouldnt submit fake company reports.

  34. Bamboo Basappa Says:

    I work for satyam and concur with Industry Expert. Some of the accounts satyam holds like GE are a disgrace. the billing rates at offshore are a mere 9-10 dollars an hour. It seems TCS was ready to quote equally or even less and therefore satyam also resorted to such a low quote. At 48 Rs/$ this transaltes to Rs 75K per month.. How can a company run its remaining expenses after paying an employee 40K? Clearly GE is a loss making account..
    People long enough in the industry will know that Wipro and Infy asked GE (also NCR and other such paltry payers) to fuck off when they asked them to down rates. And thats why they are still standing tall today. Bottomsharks like satyam were always sitting on a timebomb.. it has only gone off now. but there is no absolving the management of their wrongdoings

  35. AnotherOne Says:

    “By default AP people are known for their frauds….”

    Gultis are fraud….Kongs are … Maharastrians(misadventures in Belgaum)…Northies…. Where are we heading to?

    Disclaimer: I have a Gulti connection and it pains reading such comments.

  36. Industry Expert Says:

    Bamboo, that GE example is a perfect example.

    There is labor arbitrage and then there are examples like that. The problem is that they aren’t charging enough of a premium at other places to make up for that.

    I think this is something as simple as running a business with unacceptably low margins and then falsifying the profits to drive the stock up. If they didnt make up numbers then no one would buy the stock, there would be no excitement to build the company, and you are pretty much out of business.

    TCS and HCL should be watched very closely. TCS especially is giving away people for FREE right now. If I’m a client I’m not thanking my lucky stars, I’m running away. If something is too good to be true it probably is.

  37. GE guy Says:

    @BB and IE, alright guys don’t take GE’s name in vain here. GE will ask for the lowest damn price, it is well within GE’s right to do so. If you can’t deliver, get out and make way for the ones who can. GE isn’t asking you fudge ur numbers. You get into GE with a low price, if you are smart you will make money with the volume you will get from GE because of the sheer size of the company. It’s six of one or half dozen of another. If you are delivering an efficient service u will make money.

    As a custmer wouldn’t you ask the lowest price for a GE bulb, MR machine, jet engine or a turbine? GE doesn’t fudge it’s books to deliver a quality/cost effective product or service to you.

    Remember GE is the most admired company in the world.

    Disclaimer: I am a GE employee.

  38. anjan bacchu Says:

    hi all,

    here’s a few short quotes from KPMG(which audits the accounts of IT majors like Infosys and Wipro) doubtING the veracity of the confessional letter written by B Ramalinga Raju,

    http://www.indianexpress.com/news/satyam-fraud-not-a-one-man-show/408664/

    P.S : I’m from Bangalore. Yes, we’ve all seen our share of -ve things from people outside our karnataka border BUT let’s also acknowledge that 90% of people in IT are coming from outside our borders. That doesn’t mean that we should condone cheating…. I have seen several people in India and in US who’re from AP, etc focusing on spiritual progress whereas kannadigas tend to be remain content with their high ethics platform. I sure hope a new bunch of employees with entrepreneurial spirit from Satyam with the right integrity will come out and start their own company (Companies) in this highly fluid atmosphere and do another Infosys(or better).

    BR,
    ~A

  39. Karihaida Says:

    Raju is a cheap gultu. If he had invested a lil money and hired Goldman Sachs as “advisors” on how to comit fraud and get away with it, they would shown him the use of “special investment vehicles”.

    But the real question is why did he come clean? And it looks like Andhra gov’t wont arrest him coz nobody has filed any complaint :)
    There is a lot more to this than what we see here…

    A hilarious take on this issue by the great bong :

    “Mona is 33. She works in a cell center.

    If you don’t have it, you pad it. Be they balance sheets or bra cups. That’s common knowledge. When prospective grooms come to our house, I always wear padded bras. My aunts told me to do so. Are they asking me to cheat? I don’t think so. And just to balance out that exaggeration, I also under-estimate. I say I am 25 years old. ”

    http://greatbong.net/2009/01/07/satyam-eva-jayate/#more-627

  40. Janasamanya Says:

    Now after all this biggest corporate fraud coming out, media shouting at the top of voice, people expressing shock, disgust, anger, different agencies doing research, inquiry etc. finally what will happen? NOTHING. Thousand of employees would loose jobs, lakhs of shareholders would have lost money and after few weeks or months, things will become normal with fraudsters living happily ever after.

  41. induramesh Says:

    I agree. Nothing will happen. Raju could not have done what he has done without the knowledge of his directors, auditors, even the government. I am sure the Raju family will happily live ever after. Only the shareholders who lost money will remember what happenned to them. Why does greed make people go and invest money and greed makes the Rajus of this world behave the way they do? Who was it, (Gandhi?) who said that there is enough for everybody’s needs but not enough for one man’s greed?

  42. Industry Expert Says:

    GE, definitely not taking GE’s name down.

    The reality is that GE is an awesome name to have as a client. However, many good companies have walked away from doing offshore business with GE because they can’t make money at those rates. The ones that do work there try to leverage the GE name into getting into other marquee accounts because the world knows GE expects and gets quality from its vendors.

    I can assure you that vendors cannot make a reasonable profit margin at the rates GE gets from them. It’s a loser that they hope to parley into profits elsewhere.

  43. babuds Says:

    Being a Gulti myself, I agree to some of the comments that
    “most Hyd based corporates are to be looked with suspicion”. I have seen many fly by night operators from Hyderabad during the dot com bubble with sole intention of cheating public by starting companies and inviting private and public placements.

    But what I do not agree is all Gultis are fraudsters.

    The fraud is limited to corporate bigwigs of Hyderabad and their political angels.

    I propose to SEBI to conduct investigations into all HYd based corporates. You will have more skeletons raining from their cupboards, some of which may even belong to Nizams era.

    Incidentally the name “Satyam” does not stand for truth. It stands for the name of Satyanarayana Raju, f/o the fugitive Ramalinga Raju.

  44. BVR Mohan Reddy Says:

    I guess this is not the only company there will be many to follow esp those with low rates. There is Infotech which blindly follows Satyam and has substandard higher management. Sure this company would declare the same in a years time.

  45. bhanu kishore Says:

    @kashyap
    you offered a new dimension to the episode. i’ve nothing to say at your foolish view. grow up.

  46. Mr Moorthy Says:

    Infosys is no demi god!! They too have skeletons under the closet, its time for the industry to open up and know on the un-written rules of the trade. Narayanmoorthy too knows there are lots under his carpet at Infosys, they too as part of Corporate governance open their doors for external vigilance on their activity.

    Have to scrutinise how Progeon was merged with Infoys. This was similar to Satyam merger with Maytas. Lucky is that they made through the merger and succeeded in bringing more revenue in books. If am right the exageration of accounts at Infy would be around 45% straight. As a sensible public, they too open doors for public scrutiny because General Public should know how this is being done, because hectares of land are grabbed from the Government which are public property, isnt it friend? They can claim clean in accounts not in other deals like taking more subsidry, tax benefits and export benefit which are none but tax payers money, which are taken from even from the soap you buy – either direct or indirect!

    Infosys modus operandi for accumulation of revenue may not be the same of the other failed company? They follow different route to source book figures. Secondly they are Land Mafias in disguise. Lots of land deals done under FTZ, EPZ, SEZ for collateral has to be scrutinised.

  47. Doddi Buddi Says:

    Mr Moorthy,

    You are spot on! Also, remember Manipal Finance? Now look at the man who is CFO at InfyLand! Now do you spot any thing similar by way of creative accounting talent and a shared heritage denoted by the moniker that is Indian currency’s lowest denomination?:)

  48. kashyap Says:

    @bhanu kishore,

    No hard feelings…truth hurts. Ask anyone in US or anyone in IT and you will know what I’m trying to say.

    Do your homework before commenting.

  49. Rob anderson Says:

    This is not going to be the first one of these incidents. These companies have been milking US corporations for years and I see no reason why this is an isolated incident. Having worked with these companies, they can’t ever get the job done right the first time and then they want more to fix it so in the end the company that outsourced saved no money.

    I suspect Satyam was losing business and wanted to appear to be stable so they cooked the books.

    I hope all the Indian firms get caught and then these organizations crumble sending the jobs back to the US and turning India back to the third world shit hole that it deserves to be.

    Any country where they worship cows, rats, elephants, and snakes and bathe in cow urine is not worthy of any sort of progress.

    Maybe we’ll get lucky and Pakistan will drop a nuke on them.

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