Satyam Computer Services Ltd Founder - Chairman Ramalinga Raju resigns, reveals shocking details about the fraud in balance sheet book. Under attack over $1.6 billion acquisition fiasco of firms promoted by his family, Chairman B Ramalinga Raju said he would subject himself to the "laws of land".
India Shocked as Satyam Rs 7000 crore fraud news flashes, Chairman Ramalinga Raju has written a letter to the board giving details of the balance sheet. Balance Sheet has inflated cash balances of Rs 5040 crore and accrued interest of Rs 376 crore is non-existent. Rs 1230 crore was arranged to Satyam and is not reflected in the books.
"I sincerely apologise to all Satyamites and stakeholders, who have made Satyam a special organisation, for the current situation," B Ramalinga Raju said in a notice sent to the stock exchanges.
"I am now prepared to subject myself to the laws of the land and face consequences thereof."
As per the revelations, second Quarter numbers were inflated to Rs 2700 crore vs Rs 2112 crore actual numbers. No board member had any knowledge of the real situation of the books.
Satyam Shares Crashed after the embattled Indian outsourcer said its chairman has resigned from the Board. Shares were down 16.81% at 149 rupees.
According to analysts, Raju's resignation wouldn't make much of a difference to investors.
"He is not to be blamed alone, the responsibility lies with the entire board. It was a unanimous decision and this board is in no place to decide on the issue," said Prabhudas Leeladhar analyst Apurva Shah.
DSP Merrill Lynch terminates its engagement with Satyam Computer, the IT firm informs BSE.
Satyam, considered a ripe proposition for acquisition, was pushed into crisis after Raju was forced to abandon the acquisition of Maytas Infrastructure and Maytas Properties promoted by his son.
In a regulatory filing the company said Raju would continue to be the chairman till the board is expanded.
The resignations, ahead of January 10 board meeting pushed the company into crisis and paved the way for immediate restructuring of the board and the management.
The Satyam fraud has come as a shock to me man. Raju continued this fraud for over 5 years and nobody even noticed until he revealed this himself... man!
One of my friend working in Satyam, Chennai, told me that Raju personally emailed his Satyam employees to buy back at least 100 Satyam shares each after the Maytas fiasco claiming that the shares would regain lose figures. Those who bought shares must be wanting to kill Ramalinga Raju now, I swear to god.
