It appears that erstwhile Satyam (now Mahindra Satyam) still has a lot of lies veiled in its accounts. According to the latest charge sheet issued by the CBI, the total financial toll of the scam can be as huge as Rs 140 bn. This is nearly double the amount (Rs 78 bn) confessed by the disgraced former owner Ramalinga Raju. Triggering new round of uncertainty, the CBI had now charged Raju for illegal diversion of funds and fraud in filing of income tax returns. This is in addition to a plethora of charges related to deflated liabilities and inflated revenues. What is more, the fudged accounts also reported fake customers and ghost employees.
The wrongdoers left no stone unturned in perpetrating India's biggest accounting fraud. I hope that the miscreants will be duly punished (moreover I know that this hope will only remain a HOPE and nothing more). However, the innocent investors have no way of recouping their huge losses. Another instance that shows that investors have to do a very careful study of companies and their managements before taking any investment decision. One must not blame the regulator but do the due diligence himself to remain on the safe side! (Comparing the company performance with its peers on a quarterly basis is one small way of doing it.)
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