$1bn fraud…shakes business & consumer confidence
20th January 2009
According to a recent article, Satyam, an Indian IT software company, employing 53,000 people and enjoying a turnover of $1.73bn, an envious client base including GE, Ford and Nestle is now fighting for survival.
Bhavin Shah of JP Morgan sees business continuity risk for Satyam’s clients.
“Who knows whether Satyam will actually be around in the next couple of weeks? There is a business continuity issue here as well. So, that benefit is bound to occur to the other IT companies which customers have high confidence in terms of the integrity of the management. The company had exaggerated its cash reserves by some $1bn (£661m)”.