novpj Posted January 11, 2009 Posted January 11, 2009 There's lot to uncover about Satyam fraud but I hope that the probe doesnt stop at Raju and his family but instead the govt should cast a broader net. The thing that gets me about this scandal is that, if you believe newspaper stories, the fraud was uncovered by Merrill in preparation for a deal. I wonder what have Satyam's auditors (Price water house coopers) been doing since last 3 years. Their role should be probed and think the govt should put them out of business to set an example (like what happened to Arthur Anderson after the Enron scandal). Its just disappointing that fraud was discovered by an investment bank that works pro bono till the deal is consummated and not by an auditor who is paid to certify the statements. Franky, the whole auditing model needs a re-look - they staff teams with very young (just out of college) employees and have converted audits into assembly lines with very little value add or pushback on the senior management.
beetle Posted January 11, 2009 Posted January 11, 2009 What govt? The Andhra govt is treating him with kid gloves.God knows how much he hasspent to make the bloody politicians fat! This should be dealt at the national level and the highest court should keep a watch on the inquiry. They will punish the small guys and this guy will spend some time in the hospital faking medical problems too.
novpj Posted January 11, 2009 Author Posted January 11, 2009 I agree that Andhra govt seems to be going slow but then Madoff made off with $50bn and is still not in jail. Seems like the laws for financial crimes need to be modified.
Ram Posted January 11, 2009 Posted January 11, 2009 PwC is certainly in big soup... And to clarify, Merrill didnt uncover the gap in the finances 'in preparation of the deal'.. To cover the hole in the balance sheet, Satyam tried to acquire a company ( forget its name), but failed and got exposed.
punjabi_khota Posted January 11, 2009 Posted January 11, 2009 PwC is certainly in big soup... And to clarify, Merrill didnt uncover the gap in the finances 'in preparation of the deal'.. To cover the hole in the balance sheet, Satyam tried to acquire a company ( forget its name), but failed and got exposed. it is easy...reverse of satyam...maytas ...owned by his family i think.
novpj Posted January 11, 2009 Author Posted January 11, 2009 PwC is certainly in big soup... And to clarify, Merrill didnt uncover the gap in the finances 'in preparation of the deal'.. To cover the hole in the balance sheet, Satyam tried to acquire a company ( forget its name), but failed and got exposed. Thats not true. Maytas deal fell through because investors thought it was transfer of wealth from Satyam shareholders ro Raju's family (since they thought Maytas was overvalued). After that Satyam hired Merrill to identify strategic options to increase shareholder value (since stock took a big hit during the Maytas affair). "Satyam, the well-known Indian Outsourcer who was in problems recently, announced the hiring of investment bank DSP Merrill Lynch to review its “strategic options to enhance shareholder value.†http://www.takeaplunge.com/startup-deals/satyam-hires-merrill-lynch-to-review-its-strategic-options/ So Merrill was lookign at Satyam's books to pretty it up for a deal.
triam Posted January 11, 2009 Posted January 11, 2009 Maytas was owned by ramalingam rajus son Teja raju
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