Thursday, January 8, 2009

Ramblings on the Satyam fiasco

I'll come to the actual issue later on, but now i wanted to write about something else - the media coverage of the issue over these two days .

After this whole resignation news came up yesterday, i did some reading about all the recent developments involving Satyam in the last month, this was to know the timeline properly before i find out anything about yesterday's crash. There was no shortage of news items/articles about yesterday, when i came to that. All the news channels were flooded with this news, all the news sites carried articles about the resignation of Chairman R. Raju. After i had read up enough about the crash, i started looking for situation updates to know what was happening or going to happen to the company/employees. But, even as of today there has been very little coverage of current situation. The sites are flooded with articles about How/Why he did it, How this is India's 'Enron', Where the guy is hiding, cos' there were some reports of him skipping the country etc.

IMO the issue is being blown out of propotion by the media and I don't really think Satyam is going to go down the 'Enron' way. From what i gather the people over at Enron managed to cover up huge losses and show profits/growth on the books to keep going so the company wasn't really working well, but at Satyam the profit figures were just inflated to make the company look good ( which in my opinion isn't as bad as what happened at Enron) and i guess all these admin issues don't affect the workforce, i'm sure they'll be able to perfectly continue their jobs if there is a takeover or a bailout plan from the government. Ya, the investors, employees and public were taken for a ride/cheated by the 'fraud' and all that, but they sure did enjoy the benefits when it lasted, right ? The investors got good dividend checks the last 7 years, the employees got pay packets on par with the other truly growing IT companies, they got prolly' got bonuses based on the inflated profits. Damn, prolly' they were hired just because of the fraud to keep up the image of growth. Whatever...

With a company like Satyam closing down isn't an option, a govt./industry backed recovery plan is what it needs right now and the company should be propped back on its feet.

Now, going back to what i was talking about, very little content was available about the current events, chances of a bailout. The media was concentrating on thinking up captions like ' Satyam - a Rs7000 crore Lie ?', 'Satyam's billion dollar asathyam' etc. to keep the shock value going.

I hope they get out of this phase and start being a little more optimistic, and .. that can really help ithink.

more on this later ..

btw, this is just a rant. i have never had a stable opinion about anything.

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