Can Infosys' management stay out of issuing opinions on Satyam?

by wiredbeats on January 13, 2009

The Spirit of SatyamI had recently posted a detailed write-up actually supporting the Satyam and Maytas acquisition and the larger strategic intent. I was so wrong!

The whole world now knows the fradulent intent behind the deal following the recent confessions of the chairman. Things have gone ugly now. Real ugly. The chairman, Managing director and CFO are in jail (As of January 13, 2008). The company stands on a precarious plane of collapsing under its own weight, unless a massive aid by government/PEs bails out the situation.

This is the worst situation any company can get into. More so for a thriving IT gaint. Few of the several problems that Satyam faces today

  • Payment of salaries and meeting administrative expenses for the next 2 months
  • Preventing employee exodus (although there is a silent no-poach agreement between the top IT firms)
  • Dented client confidence and loss of new business materializing 
  • Jump starting the company in the competetive growth path
  • …and many more..

This is an extrordinary predicament that any company in India of the size of Satyam has put itself into. Every single regulatory body is involved in addressing the Satyam situation, be it SEBI, SFIO,RoC,Ministry of Corporate Affairs, Ministry of Commence and even the Prime Minister’s Office. All for saving an IT giant from sinking. Time of the essense. [click to continue...]

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