Wednesday, January 7, 2009

Satyam saga!!

The satyam saga takes a nasty turn. This time,its born again conscience of its chairman Raju, that made him to write to board about the cash on books (and even accrued interest on it) that wasn't there. A shocking admission of such fraud, sitting over the (relatively) minor corporate governance issue, has sent the stock to the crest, which now trades at around 47, a beautiful fall of 72%. Interestingly this means that satyam is now available at an enterprise value of 3000 crores, lesser than its quarterly revenue ! And at .44 times its book value. The fictional value that is.The letter mr Raju sent to the board makes interesting reading and can be read here

One wonders whether this is the end of the beginning , o r a fresh beginning all together ! The dust does not accumulate on just one of the carpets, and plenty of moths might get discovered from here. Now analysts will have serious reservations about the amount of cash that companies report on balance sheets. As if there was any less crisis of confidence in the market.

2 comments:

Confusious said...

Congressgesticulations my friend !
But if you don't want to put videos, i would have suggested wordpress.

vishal said...

Tank you mate :)
actually i prefer the single sign on like comfort offered by the goo(gal).