11 January 2009

SATYAM: Fall of a bang bang truck!

Father: Son, tell me...how would you describe a man who do not look at his left and right, not even care about others around him …just keep going on his way…??
Son: (after scratching head with two or three strokes) hmmm…is it a TRUCK DRIVER?

Our hired cab (Tata Indigo I remember) was running towards New Delhi Railway station. It was sunny afternoon of mid January and we all were little worried about our own business for some reason and other. Suddenly a truck came from behind and over took us with a killing approach (or I should say a killing ada)…our cab stopped suddenly leaving two long black scratches on the National Highway.

Co incidentally, it was another afternoon of January, it was another cab on the same National Highway when we were discussing the Satyam fraud case…And ironically trucks were overtaking smaller vehicles like ours with the same spirit.

“No driver in India has any road sense.”

Very true….irrespective of the seat he occupies…irrespective of the vehicle he is controlling… every driver carries the dream to be a truck driver some day…genetically perhaps!

The driver of Satyam was not an exception. The dream of careless driving and overtaking one after another has brought him at end edge of the world.

The world is flat after all.

According to experts, the huge fraud could have been done through numerous stages of invoicing and transactions with unknown overseas entities.

The billing would have inflated sales and this could in turn inflate debtors. Moreover, the payment may have been received from the entities and this could have been reversed through hawala.
What ever may be the reason…the fact is that another accident has taken place…another driver is in police custody.
But is this the driver who is sole responsible for the accident? Do authority, auditors have no role to play in pre-accident scenario? If yes! then who is going to pay for their callousness??

The current hoax involving Satyam Computer Services Ltd isn’t the first to thump India’s software industry, although the degree of the accounting fraud to which Chairman B. Ramalinga Raju has confessed may be unprecedented for the country.
In the precedent decade, companies such as DSQ Software Ltd, Pentasoft Technologies Ltd and Pentamedia Graphics Ltd have collapsed amid scandals over insider trading and other corporate malpractices.
What lesson have we learned from the past? Nothing!

In the case of Satyam, the fraud was detected as early as in October by an employee of Kotak Securities during the the analyst interaction, organised after Satyam's second quarter earnings of 2008-09. The analyst conference call was addressed by chairman Ramalinga Raju, CFO Srinivas Vadlamani and Ram Mynampati, member of the board, who is now the acting CEO.


During the previous fraud cases, SW/IT was not so exposed to customers and the collapsed companies were small enough to cause havoc to entire economy…unfortunately, because of that only we kept our eyes half closed and let this to happen with huge degree of effect.
Now what next? Some new lay, more scrutinize? Or a series of mea culpa from other Indian companies about similar doings…???

Whatever may be the result…What I have learned is that, all the typical truck drivers are equally vulnerable from their BACK where they have colorfully written
And perhaps "Z....Z.....Z....Z...Z" is also written some where in between their colorfull art work! (Hands on heart....I havn't seen yet!)

[A must read: 'The Satyam fraud: welcome to incredible India' -by Sam Varghese]

[Pics are stollen as per industry practice]


Na.Su.Krishnan said...

Aww...Alcohol+speed+no condom = Truck driver.

Makes me think that our guy too was alcohlic about land + was part of the Indian IT rat race for speed+ PWC the borken condom..

Waiting For Utopia said...

cool analogy :-)

Sayani said...

ha Agreed Krishnan !!!!
But now it's wipro's stand

what next ?

Sayani said...

Am visiting first time and it seems am going to be a frequent visitor :)
gr8 write up

Anonymous said...

don't know about Wipro but Infy's 33% profits seems pushing market up from this morning...Itz god..isn't it?

The Messenger of Nemesis said...

welcome Sayani....

BTW itz too early to say anything about Wipro...but I am sure Satyam is not the only victm..it can't be THE ONE.

Jayanta Deka said...

a very good comparison...!
well written.... hav nt read all of them bt surely will do it soon....!


The Messenger of Nemesis said...

You are welcome JD. I am very glad to know that you have liked my post....keep visiting

pramit said...

Hi everybody...........I would rather say that the analogy here is not perfect.The case of Satyam can be referred to as a case of commiting a crime knowing fully well what would be the consequences. Atleast the truck drivers are not educated enough to know the in and outs of traffic rules. Also before taking the driver's seat, they dont even get proper professional training. Ramalinga Raju is a hardcore professional, having a foreign Mba degree. I am the last person to believe that he dint know the consequences before commiting the crime. Equal responsibility goes to PWC for being partners in crime............... However a really good post from shaddy..Well done and congrats...

AMIT said...

Yes Satyam has done very bad.

Boise real estate

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