Tech Mahindra Set to Acquire Satyam

Continuing our ongoing coverage of the Satyam fraud case, Tech Mahindra set to acquire controlling stake in the troubled Indian outsourcer. According to vnunet.com, Tech Mahindra, a mid-tier Indian outsourcing firm and the IT arm of congolomerate Mahindra & Mahindra, will have to pay around $600 to gain a controlling stake in troubled Satyam, according to reports.

Read the full story on our recent blogs here:

Satyam Fraud Should Have Been Detected

CBI Files Charges in the Satyam Fraud Case

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CBI files charges in Satyam fraud case

According to Reuters India, the Central Bureau of Investigation has made charges against 9 people involved in the Satyam fraud case. In a Madoff-esque scheme brothers chairman Ramalinga Raju and Rama Raju, who served at the founder and managing director, respectively and the and ex-chief financial officer Vadlamani Srinivas were arrested in January after founder Raju resigned, saying profits had been overstated for years and assets falsified. What will be come of the brothers Raju and their accomplices? We'd like to hear your thoughts.

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Satyam Fraud Should Have Been Detected

Asia Times Online reports that accounting practices for the Satyam fraud case should have been easily spotted. This comes from top accountants in Mumbai who said, "It appears from information available in the public domain that basic accounting procedures were not followed." This aligns closely with the Madoff scandal who also had dubious accounting practices that didn't go noticed until too late. When will the due diligence begin on large companies? Let us know your thoughts here or on our LinkedIn Group.

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Satyam Computer Services Admits Fraud

Indian mega company, Satyam Computer Services admitted to hugely inflating its earnings and assets for years. The news of this company, who serves more than one third of Fortune 500 companies, threw Indian markets in turmoil. According to The New York Times, the chairman of the company admitted that 50.4 billion rupees, or $1.04 billion, of the 53.6 billion rupees in cash and bank loans the company listed in assets for its second quarter, which ended in September, were nonexistent.

Because of Satyam's relationship with major Fortune 500 companies, this news will drastically impact the business of outsourcing to India. But just how much? We'll wait and see.



What do you think will be the ripple effects of this fraud? Comment here or on LinkedIn.

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