Ramalinga Raju resigns from Satyam Computers, admits fraud, Satyam shares plunge
satyam Computers Chairman ramalinga raju has Resigned from the satyam board, and has written a letter giving the details of the accounts saying that the balance sheet has inflated cash & bank balance to the tune Rs 5040 crore. The balance sheet of the company was inflated and accrued interest of 376 crore rs in the books is non existent.
Read the Full Test of Raju’s Letter
Today in the Indian share market Satyam computer s shares were down by a whopping 77%.
In his letter Raju wrote that the companies Q2 FY09 reported revenues of Rs 2700 crore Vs actual revenue of Rs 2112 crore. The Q2FY09 operating margin reported was Rs 649 crore against Rs 61 crore. The Q2F Y09 numbers had Rs 588 crores of artificial cash in books.
He also mentioned that he is also prepared to subject himself to law of the land and face the consequences.
Post a new comment
Loading ...
08/01/2009
Really such a tragic incident it its. This will make clients to think twice or thrice before they invest to India. I don’t really understand one thing, How come Auditors and other Board members missed to find out the discrepancy.. We’ll have to wait for the answers..
08/01/2009
What about shares of satyam ??????????????????????????????????
08/01/2009
has ramalinga raju gone mad?what is the fate of the employees?
its a bitter experience for stock market .
08/01/2009
its ridiculos we have to hang them …
08/01/2009
Raju – A scape Goat? Is this pure Business and no Politricks?
08/01/2009
People also blame PWC. PWC follows the audit techniques of its own in addition to basic auditing guidelines proiveded by the ICAI. It is surprising that The Basic guidelines of ICAI is unable to alert such a big mismatch of financials. Peer Auditing must have also happened atleast once. Let us wait and the story does not end up within a decade.
10/01/2009
that is really a very bad job more cruel than what terrorist has done.
11/01/2009
Good shot..for Investers..( All wants to become BillGates…hahahaha )
Good Business by Brainless Raju brothers..
what a big shit…haaha..