Ramalinga Raju Resigns from Satyam Board

January 7, 2009 · Author: · Category: business 

We have just receivd confirmation that M B. Ramalinga Raju, founder of Satyam Computer Services Ltd has resigned from the board of directors. He also wrote a letter furnishing details of the balance sheet. Satyam Computers Stock has fallen by 27% to Rs 127 after theĀ  news broke out.

B. Raju shall continue in the position only till such time the current board is expanded and the continuance is just to ensure enhancement of the Board over the next several days or as early as possible.

In a stunning statement made to the BSE and shareholders, Satyam Computers promoter and board director, Ramalingum Raju has confessed frauds and manipulation in the financial statements of the concern over quarters, mainly overstating cash balance and profitability and under stating liabilities.

The 09 Q2 profits of Rs 61 crore were actually overstated as Rs649 crore, a fictitious cash balance of Rs 5040, the list seems endless. After the announcement thronged the markets, the stock tumbled by over 50%, the biggest drop ever reported for any blue chip company in India.

Raju also confessed about the failed attempt of concealing frauds by Maytas Infra buy out.

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2 Responses to “Ramalinga Raju Resigns from Satyam Board”

  1. LIC yet to decide on Satyam stake : FreePress India on January 8th, 2009 12:28

    […] India’s Largest Insurance Company – Life Insurance Company of India – LIC holds a 4.34% stake in Satyam Computer Services Ltd. We first broke the news about Satyam’s bankruptcy yesterday. […]

  2. Income Tax sleuths start Satyam probe independently : FreePress India on January 27th, 2009 15:14

    […] Indian Income Tax Department has started its independent probe of the Rs 7,800-crore corporate fraud in Satyam with focus on tax deducted at source and benami […]

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