Wednesday, January 7, 2009

Fraud at Satyam

Yesterday when I met Vishal Dev in IDCO, he asked me what is happening at Satyam. When I came home for lunch and switched on the TV, I realized what he meant. Satyam has committed the biggest Enron style fraud in the recent history. Ramalinga Raju has resigned as the chairman of Satyam.

Software Services Companies always (I think justifiabily) rode the moral high horse: no corruption, no frauds, no scams. This was possible as they did their business abroad.

They grew at breakneck speed. Look at the number of people working in TCS, Infosys, Wipro. The tyrnover, the profits grew at amazing rates for decades. The shareholders, the employees and others benefitted most and expected the companies to perform like this eternally.

How do you meet such high expectations? Satyam found the answer in cooking the account books. I hope that other companies are finding more ligitimate means.

Institute like ours focus on technology educations. I think time has now arrived to expose the students to the other side of technology: moral and ethical business practices, corporate governance. I hope that the future curriculum will educate the students to be good corporate citizens.


gaurav santhalia said...

Dear sir,

This fraud leaves many questions behind us. Are the organization like TCS, Infosys,Wipro are also doing such kind of things which are unknown to us.Any one can temper balancesheet showing good results at the end of the year.

How safe are the share holders and employess in present senario.

One should realise this fact..

ranjan said...

I just want to add here that probably Indian IT industry run on a very high ethical standards & strong corporate regulatory framework. Satyam case was a indivisual case & it has nothing to do with whole indian IT industry. Because in last some years this is the single case of fraud we came to know & we can't attach it to whole IT industry in total.

gaurav santhalia said...

I just want to add in this present senario we should not have faith on anyone because money is such a thing which can lead to disater. You don't know when someone is going to cheat u and where.

My point on my previous comment is be very confident when u have faith on someone. Don't just go by TAG.

It's not only Satyam but there are many such examples of such cases