SATYAM FRAUD - RAJU BAN GAYA FRAUD

I go by the Dictam, "THERE IS NEVER ONE COCKROACH IN A KITCHEN". I, for one, there is much more skeleton in the cupboard of Satyam, waiting to tumble down, than has been known till now.
It is shocking that India`s 4th Largest Software Co, having 185 of Fortune 500 companies as its clients has had such big skeletons in its cupboard.
I also suspect whether Balance Sheets can be fudged for seven years in a row. Probably, Satyam`s fudging has been very recent. A popular saying that captures the process of accounting fraud of the kind Satyam has likely engaged in is, “You have to say a hundred lies to cover the first lie,”

GOVT SHOULD STEP IN :
There is always a first time. Sure, Indian Govt does not enter into the nitty-gritty of merger and acquistions, but Satyam`s case is different. This scam, to me, is Bigger than What Enron did to US. The Whole World Media will be jumping at the prospect of painting Black the Indian Corporate Governance Picture and would not hesitate to add some spice too. And moreover, World Economy in a Tailspin, the Govt should do all it can to prevent the Indian IT Ind getting marginalised, before this has a cascading effect. . Govt can`t just wash its hand off. The Govt should ensure that Satyam`s 53000 employees and innumerable Shareholders are protected.

The damage is not just confined to the IT Ind, alone but also on India Inc`s credibility. The Govt should get to the bottom of this without even a bit of favouritism .


MY SUSPICION :
The First thing that any Auditor does, is to check the Cash and Bank Balance, as this is very easy to verify. In all probability Satyam did have money on the books till the last audit. (Satyam paid 226 crores as Tax). I wonder whether Satyam liquidated the bank accounts and started holding cash reserves. Probably, First Raju tried to take out money through Maytas deal. When his move back fired, and he started losing even his stake in Satyam, he decided to decamp with entire cash saying that the Cash were on account of fudged balance sheet and there is no Cash at all. Raju family is diverting the attention of law agencies by alleging fudging.
A Bigger Fraud is happening now!!!
By the way, PWC should be BANNED, financial penalty levied and its auditors Jailed.
HOPEFULLY, NARAYANA MURTHY IS RIGHT WHEN HE SAYS THAT THIS IS JUST A ISOLATED CASE AND A FAILURE OF GOVERANCE. For years, IT Cos (TCS, Infy, Wipro) have prided themselves on their Corporate Governance. One Satyam,sadly, will surely change this.

God help the Indian IT industry.
Best of luck,
Srikanth Shankar Matrubai



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