The news that hit the headlines today, not only shook India, but the entire corporate world, Disclosure of Satyam’s Fraud by software mogul Dr.Ramalinga Raju in his resignation letter. While Satyam’s stocks has been steeping down after their controvertial decision of Maytas buyout, yesterday’s news has made them bite the dust at an all time low (investors lost 10,000 crore on a single day).
This certainly raises eye brows on the Indian company’s corporate governance, but really the common investor who has had raised faith on the future and invest his monies was thrashed brutally. Raju might undergo a trail, he might be sued, he might be jailed. But at the end of the day, this is Rich Man’s Country. Any thing can turn out at any moment of time. He might walk freely from the lands of law. Though India ranks 2nd in the world in terms of corruption, with such a heinous act of breaking all the investors’ hopes and employees beliefs and above the code of corporate governance (for which Satyam is famous for) Satyam has joined the likes of Enron.
Putting facts aside, Satyam case has taught a few good things:
- A very good case for budding enterprenuers. Try to touch the sky with your feet on earth
- Values matter
Finally to the Indian corporate governing body, a transperant stringent monitoring body in place should evaluate the performance of the companies from time to time, more stricter than before!! (Well SEBI is in action now). Let’s prepare for news from now on.
satyam center
