Last week, when the India's fourth largest software company(based on the fake balance sheets), founder and Chairman resigned from the company and shocked the entire economy by telling that he and his key accomplices made a fraud of around 5000+ Crores, and all the figuresdescribed in the company balance sheet is completely inflationary.
Once this news was out in the market, it sent the shock waves at the BSE stock exchange and the Sensex shed more than 700 points in the intra day trade.
But Satyam failure is really a sign of betrayal from one of the key and iconic figure in the country, Mr. B Ramalinga Raju. It really hurt the trust and sentiment of not only international investors but also the small retail investors, who are always advise to go for a blue chip fund in order to safeguard their investments, and to reap good returns. But when a Blue Chip company reveals a multi billion fraud, the trust factor really seems to be void.
Besides Indian Corporates are yelling that this is one of its case, but Satyam fraud will also make global Clients to think twice to outsource their business critical applications to India. It certainly marred India's image as the global IT hub and a safe region to put once investments.
India corporated and politcal system really have to work hard on making Corporate Governance rule more stringent and transparent, and make sure that all culprit involved in this mayhem will be punished in time.
Thanks&Regards,
Mohit
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