New Delhi: It’ll be a year on Thursday since B. Ramalinga Raju’s explosive admission about an accounting fraud at Satyam, but the iconic IT firm that he founded has managed to move on and out of the shadows of the country’s biggest corporate scam.
Raju, who saw his image turn from IT industry poster-boy to conman, is in jail awaiting trial.
“People have started detaching Satyam from Raju... they realised its only the promoter of the company and not the company itself that was tainted,” said C.P. Gurnani, CEO of Mahindra Satyam -- so rechristened after the company’s sale to Tech Mahindra in April last year.
On 7 January 2009, Raju wrote to regulator Sebi stating that he had falsified revenue and profits for many years and created fictitious assets.
He had famously described the fraud, whose size is conservatively estimated at Rs 10,000 crore, as akin to “riding a tiger and not knowing how to get off without being eaten”. He was arrested two days later.
One year after, Gurnani is a happy man. He feels the decision to acquire Satyam was well meditated and worked out in favour of the company.
“Satyam is in safe hands now and I can only wish them luck. The aspiration now is to be back in the league of the big five,” said Kiran Karnik, who was chairman of Satyam’s government-appointed board before its sale to Tech Mahindra.
In the eight months after it was sold, Satyam has undergone massive changes, and all for the good.