So wats hot Today ? It’s Satyam’s fraud of 7000 crores ($1.4 billion) fraud considered to be plotted by Ramalinga Raju, CEO of esteemed Satyam computers Ltd. Raju had sent out an email in which he claimed all the disputed amount which included revenue differences of 670 crores (20%) and 1230 crores that he had invested out of his pocket.
Consider this, You are CEO of a startup company started as computer vendor in a garage. Slowly you build it block by block, cementing it with industry standard. You hire people with non-IT background, you train them to best in industry. After 20+ years you own a $2Billion+ company with 50k employees.
AND all of a sudden you see UNIVERSAL slowdown because of recession. Your company starts getting losses. Unfortunately its more than what industry is. You don’t get enough projects as much as your employee strength needs, to keep them all busy. You have no choice on laying-off. You want to maintain your reputation: Your market share, your market value. You play a trick, Tamper the Quartlely balance sheet (which almost all companies are doing these days) for the first time and see a little less burdened. Next quarter you still don’t have enough work coming in, not enough revenues to drive you where you wanted to be. You again keep up with good quarterly results to increase investors interest awaken. Each year it becomes harder for you to keep up with differences. And all of a sudden your premier client dumps you coz few of your employees stole some confidential data. You are gone.
Company loses impression in the market. Shares fall 30 % within a single day. At this point of time what would be the best way to proceed further?
1. Let the company go as it is till it goes bankrupt.
2. you take all the blame on your shoulders of so called “Fraud” of tampering all the balance sheets and let your company live.
If you are stupid you choose path 1 and endup bankrupting the company. You tried to hide your mistakes but all of a sudden all came in front of whole world. You are a non-humble thief!
If you go by the 2nd, you lose your market value, your company’s share fall 80% in a single day. And government tries to arrest you and you have to go underground for few days to avoid the drama that media will create.
Go for path 2, and gain respect. Show the world that you are humble. and you will win sympathy of atleast few like me.
I dont even want to call this a fraud!!!
Its pretty justified, and I am convinced by his acts. Leave your comments.