Satyam Back in Business

Curiously enough, Satyam seems to be back in business, although under a new company name Mahindra Satyam. One may remember earlier this year, the chairman Ramalinga Raju resigned after admiting to having falsified earnings and assets for several years which caused a hole of 50.4 bln rupees (1.03 bln dollars), Bloomberg story here.

Ramalinga Raju and a few others a currently still under investigation and a court approved that the Indian Central Bureau of Investigation (CBI) can perform “lie detector and brain mapping test[s]” on them. (WTF,  is a brain mapping test? Probably an MRI, but not sure)

Writes the Hindustan Times:

The CBI told the state high court last month that Ramalinga Raju also diverted and misappropriated funds of Satyam through foreign bank accounts. In a written submission during the hearing of bail application of former auditor S. Gopalakrishnan, the CBI said it sought Interpol’s help to identify the end users of these funds.

Obviously Satyam has passed the rite of passage test of the corporate state and has demonstrated that it is willing to cook the books to please its customers, who can then rightly claim that outsourcing was a success because it made them save money and increase profits (and bonuses with that, but for some reason they never say that out loud).

Among customers of Satyam are Nestlé for its outsourcing GLOBE projects and now Glaxo. As we read again in the Hindustan Times: Continue reading