Satyam

When you are riding a tiger there will always be a risk of being clawed upon by tiger.
Maybe it was conscience or maybe all doors were closed for Ramalinga Raju that he had to resign. Long stories are being written on how a treacherous animal he is and all that. Few days ago the person who was one of biggest stories of Indian corporate success is now a sham on the face of India.
I just want to explain one thing:
Have you ever wondered that was it Satyam trying to rescue Maytas or was it Maytas trying to rescue Satyam?[link] And it turns out later is true. Satyam would have bought Maytas giving a worthless value to Raju's son thus filling up Satyam's blank balance books. His son would have been happy to sacrifice all his hard work but saving his father's ass. And if that is true, it transpires that Raju was actually doing a favor to Satyam with the sacrifice of his son's property.
Imagine if his plan would have succeeded then Satyam would have finally got clean books and diversified assets. Raju would have cleansed his sins and all would have been well with his corporate governance. He would have been success story for many more years to come.
But no, that was not to be. The same investors who reaped benefits for years from Raju's decisions, now interrupted him for the single most right thing he set to do. And now guess what who is regretting most after Satyam has come crashing down - Raju or those investors?

If I am any judge I will give clean chit to Raju for at least showing courage to face the tiger.

Note: In no way I am implying that he did a great job following those malpractices. Following malpractices or not, is not the point.

4 comments:

  Vinod_Sharma

8 January 2009 at 17:26

Sukesh...I think he bled Satyam in the first place to get Maytas going and buy up all that land and all the politicians there. He probably also siphoned off a lot of money which probably is in Swiss banks...look ta his operating margins.

In the end, he was a lying petty crook who let greed get the better of him...

  sid

8 January 2009 at 18:32

am not sure of the courage etc part of it ...

fyi,

dsp merrill lynch went to SEBI on tuesday and told it that there were too many holes in the balance sheet of satyam and they were suspecting some serious shit. sebi asked it to file a report because of which prob ramalingaraju came out and did all this...

  Sukesh Kumar

9 January 2009 at 07:04

@Vinod
It was an opinion based on the given facts which happen to be the letter only at that time. I won't be hesitated to change my opinion if new facts come along.
And I never denied the possibility of him being an outright crook.
@sid
I dont know about the news. But even then Merrill Lynch was hired by Satyam, their loyalty should have been with Satyam not with SEBI. In that sense, if what you said is true, I consider Merrill Lynch nothing but a traitor. Rather than taking the company out of mess for which purpose it was hired, it creates more mess; now that's a business!!
By the way what you said, as I know, is just a rumor/speculation of what triggered his resignation.

  livenewss

20 January 2009 at 08:30

“Satyam value today $330m against $7bn six months ago accd to Financial Times.”

Regards,
http://bse.blogsome.com