Financial Crisis is growing like Forest Fire.I am no pessimist and i am desperately looking out to put positive signs for the economy in the new year.For those who have been here before,might crticise me from a similar article that i wrote on the financial bloodbath calendar 2008.But,belive me we have not even completed the first month of 2009 and there is enough to be said about the weakening economy and the bleeding corporate sector.
January 2009 has been a disaster so far for the Global Economy. Here’s an epilogue of an eventful Janauary
Satyam Computer Services debacle has got be on top of the Charts for January and probabaly the whole year.Even though Satyam has been in troubled waters ever since the World Bank Ban came along but what happened after that is something that has shocked the globe and more pre-dominantly the credibility of Indian IT Services.I will run out of space explaining the whole Satyam fiasco and hence , i will settle with just one-liners of the Saga That has been Satyam
“Satyam Chairman Ramalingam Raju proposes acquistion of Matyas Infra, a real estate firm owned
by the family.Investors are furious with the proposed offer and reject the proposal.This sends shock signals to the Stock Markets and the Satyam Stock Tumbles.However,Raju pulls out and heeds to the Investor demands and Satyam Stocks get some respite.But what no one knew was that it was the “lull before the storm”
What followed exposed one of the worst Corporate Governance Issues and the credibility of various big-wigs.
Satyam is accused of Inflating its cash books to humoungous amounts.A idea of the enormisity of the matter could be had from the fact that a 3% revenue was projected as 63%.That is some inflation boy!!
Satyam’s attempts at trying to come out with explainatroy answers raise further questions and leads to a Stock Market Frenzy.Finally , Mr.Raju comes out in the open with the relevation and an account of the manipulated cash books.A CEO of one of the most sought after IT major commiting to frauds to the tune of 7000 crores.That is something unheard of alteast in the Indian Corporate Scenario.
Nortel Networks Files For Bankruptcy Protection
Barring these there have been talks of Google shelving its Recruitment Plans for sometime,Microsoft showing signs of employee layoff’s.