Satyam Which has been in troubled waters for sometime now suffered the worst blow any company could get when its chief ramalinga raju confessed that all these years the accounts shared with the share holders and investors were inflated . Its clear now that maytas Deal was a cover up used for filling the gap between the balance sheets and the actual money that was available with the company .
It actually comes as an absolute shocker that a company as big as satyam which is even listed in New York stock exchange could come under the scanner for a fraud of such a huge sum . ofcourse , thousands employees who make the company aren’t responsible but ultimately its the brand name SATYAM that takes the toll . And the investors and the employees are the ones who suffer in turn .
This news , yesterday, spread like a wild fire and the investors reacted within no time to take out the money . The company shares had a free fall from a value of 170 to mid 30s , almost77 percent down . This is expected to go further down .Somewhere i even read that the shares could touch a value as low as zero .
The repercussions of this whole event Could be huge . Indian market which is already reeling under the effects global recession is gonna get severe blow even though they are going to remove Satyam stocks from NIfty. This Could shoo away lots of NRI and foreign investors who have been the main reason behind the massive IT development in the last few years. Think about the 50k employees of the company.They are no more secure. and finding a job is difficult these days even for the experienced lot .
And there are around 8ooo freshers (2008 passouts)Who have been recruited by satyam and almst 80 percent of them are yet to join . Being a fresher myself i know how it would feel . Many of them had taken huge loans an the only way replay was to join Satyam . And now under all these circumstances , chances of them getting joining are very less . And the job market isnt helping either.
After all this when the main culprit ,who is responsible for all this , will be given a punishment he will be out again in bail.I think Its high time that we have stricter laws for dealing with these kinds of cases . He has played with thousands of peoples life .