What a sad story. They have not given dividends at all in three of the last four years. The only year they paid, it was nominal. This is a company supposed to be in the top 5, in terms of revenue amongst the IT service providers in India. It showed a revenue of more than 8500 crores in the last financial year.
I feel sorry for the employees - around 53,000 of them. This company now cannot be resurrected. No one will acquire the company. There are likely to be class action suits in US, and serious proceedings in India too. The assets of the company may also not be parcelled into a new company and sold off, as the contracts are easily movable to TCS, Infosys, Wipro or HCL. Besides these contracts, they do not have any assets worth talking about.
The employees will find the going tough today as there are so few jobs going around in IT these days.
Quite devastating for corporate India and the auditing fraternity in India.
Let us hope there are no more skeletons about to come out.
Satyam accounting fraud: NY Times
"The asstes of the company"... Please correct that to "assets" -Prabhuram
ReplyDeleteHi Badri,
ReplyDeleteCan you correct "The asstes of the company may" to "assets"...small type, but still - Prabhuram
//The assets of the company may also not be parcelled into a new company and sold off, as the contracts are easily movable to TCS, Infosys, Wipro or HCL.//
ReplyDeleteBadri, I do not know what you mean by above, especially you are referring TCS, Infosys, Wipro, HCL in this connection. Can you be more elaborative on this.