Satyam, a giant Indian outsourcing provider, revealed today that about USD 1 bn of assets recorded in its financial statements do not exist.
Said the chairman: “What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years. It has attained unmanageable proportions as the size of company operations grew,” he wrote. “It was like riding a tiger, not knowing how to get off without being eaten.”
Wow. I wonder whether this is only the first of many scandals to be revealed in corporate India, and maybe also corporate China.
The New York Times report.
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