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.
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.
The 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.
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.
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?
One 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?