Satyam Scam – The biggest fraud in Indian IT sector – Complete Coverage

Satyam Computer Services Ltd is in a total mess with the Former Satyam Chairman B Ramalinga Raju surrendering before the andhra pradesh police under sections 120B, 409, 420, 468, 471. Along with him his brother and the companies CFO was also arrested on friday evening. The Securities and Exchange Board of India [SEBI] has ordered for an enquiry to look into this matter in detail.

Along with this news the most important point would be the stock prices dipping more and reached 6Rs/share which is seriously very low considering it was trading it 400-500Rs levels a year back. The stock prices clearly shows that the company has lost its value among the investors and everyone is looking to sell out.

Satyam CEO Hand-Cuffed Jail Scammer

I would recommend all the investors to still hold the stock because when they have already lost 90% of the value why not atleast risk with the 10%? If this 10% again grows back to atleast 30-40% after some days by chance in case of the take over/ acquitision then you have a better option rather than regretting in the future.

Satyam Fraud ScamThe stocks closed at 23.75Rs which is again 41% down from the last trading day and it was originally moving up from the 6Rs figure which means that there are still many people who believe in the company. The owners would be scammers but not the 53000 employees who worked hard in the company to fulfil their targets and there are numerious Saytam clients who are still willing to continue with the company and are ready to give contracts/orders.

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The only problem would be that since the company is in a problem now, all their accounts would be siezed and even if the business operations are operated the payments would be struck. This is the reason the employees are in panic stage and have already started looking out for new job options in case the company is closed for a while. Along with the already employed staff there are around 10000 freshers every year who are in waitlist waiting for their call from Satyam who are also going to not get a call back and they now have to apply for other MNC’s.

Scam Exchanging Money Satyam Case

Iam sure its not along Raju in this whole drama who has claimed that he is alone responsible but how do you think a single person can do such a big fraud? What about the people are always with him in his business operations? What about the government who gave the company public lands at dirt cheap amounts? Will the public have to bear the loss made by these big scammers?

Not only the satyam clients but their employees are also having a hufe confidence in the company and are sure that the company will continue in the long run along with better growth but the question stands the same – When?

Scammers Satyam Jail Stocks DownOne of the biggest Chartered Accountancy – PricewaterhouseCoopers which is highly reputed in India because there are thousands of students trying to get into PWC for completing their CA Course, is also in question because this firm was handling all the Satyam’s operations and if such a big scam was running around how did PWC not find out? Or were these guys also bribed by Mr Raju in tunes of crores of rupees and will this networked chain keep continuing?

The website of Ramalinga Raju which is ramalingaraju.com is also totally down which again adds up another negative point because if you start hiding more and more stuff from the public you are going to be accused more for your mistakes. Not only this small site but the corporate website ie satyam.com was also giving problems in the last 3-4 days with no downloads given to the public for the company data.

The retail investors amount to approx 25% who have now lost 90% of their value and along with the already falling down stock markets satyam has added a big loss for everyone and now everyone is looking for either selling the stocks for almost no value or else buy some more stocks at this low rates to average their old portfolio and hope it recovers back soon to atleast the costs. The village from which Ramalinga Raju hails still believes on him and all his known ones are buying huge amount of stocks at the moment to prove that they believe him and there is no need to worry about the company. Lets wait and see how this whole story turns out and where does Satyam stand after a month.

What do you guys guess
Did you buy Satyam Stock
Are you Linked with Satyam in any Case?
Do you think the company will continue?
Will Satyam gain back confidence?

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About Amit Bhawani

My name is Amit Bhawani and I am the chief blogger at Amit Bhawani Blog and where I like to share my internet/tech experience with my online readers on this website. You can read more about me at my About Page. You can follow me on Twitter, Facebook & Google +1 at +Amit Bhawani

Comments

  1. Satyam as a company,no doubt it’ll be normal in a few years
    but,the future of Raju?
    God knows

  2. Abhishek Daaga says:

    I dont think the future of 50k+ employees will going to be ruined at once by this scam.. Satyam as a company was good enough I guess but the cooked up balance sheets made it hell.. In coming years if they maintain good trust of share-holders, employees & it’s clients then probably they may emerge as a healthy company, Only big task is to take up this fact practically & positively..

  3. Inflated profits may devalue the share, but being from the IT industry, and having a lot of friends who work with/for Satyam, I can overtly say that Satyam has a better if not great future ahead.

    In the short term, any ‘Functional Analyst’ who says Satyam stocks will go to Zero / ‘0’, I suggest they better go do their homework properly and then get back on TV and leave their stupid thoughts around.

    Satyam has real business, real customers, real people working.

    Satyam needs better management. Acquisition is even better for them, if some one comes forward, though I doubt if anyone would be interested for the 60 – 90 days as the inquiry is still on.

    Long term investors should hold on from panic selling to see better benefits.

    /G

  4. Ganesha Murti says:

    As satyam has paid full salaries till dec 2008, it means it has cash.

    The only thing that could have happened is that regularly the profits of satyam were being diverted to Maytas (Raju’s sons company)

    If that is true all future payments will fill satyam coffers.

    The biggest dent will be in employee and customer confidence. If both are restored i see it as a top 4 company in 6 months again.

  5. Satyam Scam by far Largest Corporate Scam in India Inc.

  6. The Satyam Scam!
    whatever happened to Raju…
    The poor & Innocent Employess & their families are suffering….

  7. Most of the IT companies used scrutinize for the candidates who have put work experiance in Andra pradesh because of fake experiance. even there are so many cases found having fake degree certificates especially in Andra.. Now they have reached hights by publishing fake profit nos and running company. this is shame on Raju’s part. he put black mark on indian IT future and also screwd 50K+ employess happiness. Atlease now people should think before doing any fake.

  8. vishnu DZine says:

    Satyam fraud is not an one man show. Big fishes of IT Department and also the politicians of india have been involved in this .

  9. KRISHNA BAWTA says:

    SATYAM FUTURE IS GO TO HELL

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