Ramalinga Raju did a fraud. He is not alone involved and no one alone can do it. The auditors demand proof of every entry done in the books of accounts. If they couldn't notice the fraud that means either they were provided with all the proofs or their mouth was shut with money. The bank has to issue balance certificate every quarter. The balance shown was 5,300 Crore and actual balance was 350-450 Crore. How they got the certificate? or they bought it from the banks. So the bank managers are also involved. The experts allover the world who were keeping an eye on Satyam, could not doubt even some problem. In the same day when Ramalinga Raju declared about the fraud, one of the experts at one of the channel said Satyam will touch 250 - 260 in short future.
And mind you, this is not first and last case of corporate fraud. UTI also had refunded money to investors of Children Growth Fund before maturity. Though the money refunded was with interest but the promises were not kept. To pay something less than promised, that too by a government firm, is a fraud in my opinion.
Reliance had issued a bond for which company was to pay 50% of the investment every year for four years starting from 5th year. But the think bank at Reliance had put a clause that if the company wants, the amount will be refunded without interest after 4 years. The company here wished to utilise fund of crores for four years without interest. And none of the Government officers objected that, neither did any finance expert. And even after that whenever the company or group company of Ambani Brothers came to market for collecting funds, they got it. That proves we can't remember anything for a long period.
Now question which pop-ups to anyone is that corporate frauds are very common in India, should government help these companies to survive just for jobs of the employees. Now even DLF is under scanner. Funds to any industry will not create demands. If a car of say Rs. 5 Lacs is available for a discount of Rs. 25,000 , no one will rush to buy the car unless he needs it badly. And if he needs badly, he will buy even if he doesn't get the discount. Same is true for any industry.
Government need not worry about any company's future. When they earned crores of rupees they neither paid to Government except the tax nor to society except few companies did it. When they earned, they took to home, now when they lose, they are demanding from Government and company's employees by reducing their salaries.
Actually, the company should face the problems on their own. Increase and decrease in demands is a part of business. The bigs should not be helped to run their business. That will generate healthy competition among big, medium and small companies. The money for bail out will be taken from tax payers' pocket and bail out will protect only the giant companies. All the companies are manipulating their balance sheet, though may not to the extent in Satyam's case. They should not be protected.
And mind you, this is not first and last case of corporate fraud. UTI also had refunded money to investors of Children Growth Fund before maturity. Though the money refunded was with interest but the promises were not kept. To pay something less than promised, that too by a government firm, is a fraud in my opinion.
Reliance had issued a bond for which company was to pay 50% of the investment every year for four years starting from 5th year. But the think bank at Reliance had put a clause that if the company wants, the amount will be refunded without interest after 4 years. The company here wished to utilise fund of crores for four years without interest. And none of the Government officers objected that, neither did any finance expert. And even after that whenever the company or group company of Ambani Brothers came to market for collecting funds, they got it. That proves we can't remember anything for a long period.
Now question which pop-ups to anyone is that corporate frauds are very common in India, should government help these companies to survive just for jobs of the employees. Now even DLF is under scanner. Funds to any industry will not create demands. If a car of say Rs. 5 Lacs is available for a discount of Rs. 25,000 , no one will rush to buy the car unless he needs it badly. And if he needs badly, he will buy even if he doesn't get the discount. Same is true for any industry.
Government need not worry about any company's future. When they earned crores of rupees they neither paid to Government except the tax nor to society except few companies did it. When they earned, they took to home, now when they lose, they are demanding from Government and company's employees by reducing their salaries.
Actually, the company should face the problems on their own. Increase and decrease in demands is a part of business. The bigs should not be helped to run their business. That will generate healthy competition among big, medium and small companies. The money for bail out will be taken from tax payers' pocket and bail out will protect only the giant companies. All the companies are manipulating their balance sheet, though may not to the extent in Satyam's case. They should not be protected.
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