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The "Mithya" story of "Satyam"...

Well, "Satyam" has been proved to be a big "Mithya" (lie).. it has been a shocker from the Indian fourth IT major. The revealing facts are scary. Hopefully Satyam is just one of the case. Now the investigation will start.. During investigation, if some other company will be found with the same charge then the IT image of India would be in turmoil...

We have been hearing of the Satyam scam for past 2 days.. How did the company collapse in just 1 day? Let us try to understand how did it all start...

Let us understand this by taking a small example..
Suppose the company is making a profit of Rs. 100 in one quarter.. Mr. Raju manipulated the accounts to show the profit as Rs. 1000. So, Mr. Raju inflated the accounts by Rs. 900. By showing huge profit margin, Satyam was able to attract a lot of investors and a lot of clients in a very short span of time.. So, Satyam did all its expenditures assuming it has got Rs. 1000 (but actually Rs. 900 was missing)... In this process the vacuum kept on increasing... and suddenly one day the company has no money to pay salaries to its employees..

A lot of my friends are working in foreign countries for Satyam . I don't know what will happen to them.. Most likely they will not get their salary for Jan 2009 and it may so happen that they have to buy their return ticket (to India) on their own..

Now the Indian Govt is in action. So hopefully, some private firm will take over the company and all the 53000 employees are saved.. It's very unfortunate to hear the "Mithya" story of "Satyam"...

Thanks,
Srimaya Rath

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