Desi Tamasha

A friend of mine suggested the following:

• Satyam's profit margins, according to the theory, were not 3%, but were (are) 15-20%
• They did have $1B in cash.
• The cash was siphoned off by Raju and family.
• They are now trying to fake it all by saying there was no cash.

Siphoning off cash by management (and screwing shareholders in turn) is a very common practice in family-owned businesses around the world, or so I've been told.

Labels: Satyam