In Order to cover up the poor performance of the company, Satyam Computers Chairman Ramalinga Raju had shown bloated balance sheets and inflated profits, in all a scam involving Rs 7000 crores. After his efforts to get the valuation right by acquiring Maytas Infra failed in the Director Board meeting, it did not take much time before the scam got exposed.
Ramalinga raju has resigned and has owned up to the wrongdoing, ready to face the legal implications thereof. ( upto ten years in prison could be the max punishment, 1 year for 700 crores..!)
The auditor Price WaterHouse Coopers has found itself in deep shit after its very poor unethical showing ..
The whole of IT industry in India will need to sit back and take a look at whether its assets and operations are overvalued, balance sheets are bloated and profits are inflated ....
This will also be a golden opportunity for the Indian IT industry to do an introspection and cleanse itself of any wrong doings and for the wrongdoers to be extra vigilant...
ge..
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