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**HRCPda7R** · 08-01-2009, 08:00 AM

Actually, if you notice the share movements, the other major Indian outsources gained today, even on the American exchanges. Did Enron's debacle mean every other energy firm was out to play "house of cards"? No.

You'd be surprised about the Indian legal system. It may be slow, but Indian share markets and law offer a fair playing ground to outsiders and Indians alike, which is not something, say, China can offer.

I'd be highly surprised if this sort of thing surfaced over at TCS or Infosys, the two really best such companies.

BTW, did you actually read Satyam CEO's letter to the board? It lays out in detail the situation and circumstances at that company. A very specific issue affecting that firm from many years ago.

But you're right, PwC screwed up big time.

Are you going to have a double-take on ALL other companies' book that PwC audits?!

Well that's where the comparison with Enron falls short.

With Enron, all the execs were denying everything they did was wrong to the bitter end. With this the CEO basically threw in the towel and admitted that the company does clear a profit, but it's a mediocre one and it's not a whiz-bang-wow a company as one would think... so most of the investors thinking they were going to ride this stock to the moon bailed out.

TCS is not going to have something like this happen to it---it's basically a state sanctioned conglomerate megamonolopy, so its other units can easily cover for losses with accounting tricks.

WiPro is the company I think is most like Satyam. I'm not sure about Infosys, but WiPro is definiately not the great super-profit center everyone believes it to be.

08-01-2009, 08:00 AM	#8
HRCPda7R Join Date Oct 2005 Posts 315 Senior Member	Actually, if you notice the share movements, the other major Indian outsources gained today, even on the American exchanges. Did Enron's debacle mean every other energy firm was out to play "house of cards"? No. You'd be surprised about the Indian legal system. It may be slow, but Indian share markets and law offer a fair playing ground to outsiders and Indians alike, which is not something, say, China can offer. I'd be highly surprised if this sort of thing surfaced over at TCS or Infosys, the two really best such companies. BTW, did you actually read Satyam CEO's letter to the board? It lays out in detail the situation and circumstances at that company. A very specific issue affecting that firm from many years ago. But you're right, PwC screwed up big time. Are you going to have a double-take on ALL other companies' book that PwC audits?! Well that's where the comparison with Enron falls short. With Enron, all the execs were denying everything they did was wrong to the bitter end. With this the CEO basically threw in the towel and admitted that the company does clear a profit, but it's a mediocre one and it's not a whiz-bang-wow a company as one would think... so most of the investors thinking they were going to ride this stock to the moon bailed out. TCS is not going to have something like this happen to it---it's basically a state sanctioned conglomerate megamonolopy, so its other units can easily cover for losses with accounting tricks. WiPro is the company I think is most like Satyam. I'm not sure about Infosys, but WiPro is definiately not the great super-profit center everyone believes it to be.
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