Satyam and Balance Sheet Manipulation
Today’s “honest” disclosure by “ Satya m” Mr. R. Raju in his resignation letter submitted to the Board of Directors of Satyam and filed with SEBI and the stock exchanges is at the outset the outpouring of the frustration of managing an organization which has “grown” bigger than it’s boots to keep its investors happy, is how I would look at it. The holes which the disclosure has put in the audited financials, corporate governance and regulatory oversight are too big and far too many to be ignored. The issues raised by the disclosure have a wider import and impact on industry as a whole and on the software business in particular. Valmiki – a dacoit by profession was struck by remorse and was advised by Narad muni to meditate on the word “Rama” - as Valmiki could not say “Rama”, Narad advised him to say “Mara” which is what he had been doing – but in a continuous chant it sounded “Rama”, thereby achieving the objective. Similarly Mr. Raju after the “Mara” phase is trying to enter the “R...