As events are unfolding, it is turning out to be a bigger scam than one thougt it would be at the initial stage. This is by far the most shocking incidents for the markets in say the last six months. A company as good as Satyam (or should I not call it so now) which is an Index co. and was easily among the better ranking in terms of Market Cap a few months ago has made mockery of the laws all around. The market sentiment is very clear, the stock was down 71% trading at 52 week low at Rs. 48.90, the Sens*x crashing 596 points, as I write this message. The fact that this is not a circuit stock makes the investors all the more woeful. I would certainly like to know how events unfold further in this shocking development. Also I would like to know the role of the Statutory Auditors of the company and that how far they can be held liable for this (or can they be held liable at all remains to be seen).
Dolphy D’Souza, Partner, Ernst & Young, said the size of the fraud was huge and that they will have to look into details. “Auditors will be questioned; the matter cannot be wished away,” he said. D’Souza added there would be huge implications from overseas regulators.
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