The shareholders of the Satyam Computers have become from Kings to paupers. Although the meaning of the Satyam in Sankrit means “Truth”, but the company has now admitted that they showed inflated profits from the last several years.
What caused it?
The Balance sheet of the Satyam Computers was brimming with non-existent cash and fictitious assets worth around $1 billion, which the company was not able to conceal from the public.
Satyam Chairman B. Ramalinga Raju himself admitted in the letter to the Board of Directors,
Every attempt made to eliminate the gap failed
It was like riding a tiger, not knowing how to get off without being eaten
The shares of the Satyam computers in the Indian Stock market went down from $3.76 (Rs 177) to mind-boggling $0.70 (Rs 33).
All the major stock exchanges throughout the world have already or are going to de-list this stock. All we can say that deepest condolences to the investors of the Satyam Computer stock. Most probably, the company would be taken over by some other giant as it is ripe for the takeover.
In case, you don’t know about the Satyam Computers, it is the company which has more than 53,000 employees and it operates in 65 countries.