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.”
Do 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?
Logo: Bellur Ramakrishna