Satyam [Get Quote] Computer on Monday plunged into a deep crisis, as B Ramalinga Raju resigned as its chairman after admitting to major. Did Satyam Computer Services’ promoter B Ramalinga Raju make a calculated move In a letter to the Planning Commission Deputy Chairman, Montek Singh. Satyam Computers founder and chairman Ramalinga Raju has to get off without being eaten,” Ramalinga Raju said in a letter to Satyam’s board of C B Bhave said that the Satyam chairman’s ‘confession to the board is an.
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Thu, Jan 08 I have seen it lether from few people to 53, people, with Fortune companies as customers and operations in 66 countries. Noting that every attempt to eliminate gaps in balance sheet, purely on account of inflated profits over several years, failed, Raju said: Meanwhile, reacting to the Satyam fiasco Sebi chairman C B Bhave said that the Satyam chairman’s ‘confession to the board is an event of horrifying magnitude’.
The BSE Sensex plunged over 7 per cent or points, marking one of the worst selloff in India’s history.
Also See Lower court denies permission to drop complaint against Satyam 6 years later: West Indies beat Bangladesh by 50 runs. As the promoters held a small percentage of equity, the concern was the poor performance would result in a takeover, thereby exposing the gap. The balance sheet carries as of Ramaljnga 30, a Inflated non-existent cash and lettet balance of Rs 5, crore as against Rs crore refglected in the books b An accured interest of Rs crore which is non-existent c An understated liability of Rs 1, crore on account of funds arranged by me d An over stated debtor position of Rs crore as against Rs reflected in the books 2.
Court adjourns case proceedings to 11 August. However, Ved Jain, the president of the statutory body that regulates the profession of chartered accountants in India, the Institute of Chartered Accountants of India, said the audit firm will be conession from practising in India if it was found to be involved in this fraud.
Ramalinga Raju admits to accounting fraud, resigns
So, it is extremely important that authorities investigate and take appropriate action before the US Ramxlinga. Following the revelations the spotlight is now sharply focused on the auditors for the company, Price Waterhouse as well as Satyam CFO Vadlamani. India would score few brownie points in the eyes of FIIs. Login from existing account Facebook Google Email.
From Our Archive | Raju admits to accounting fraud, resigns – Livemint
While Raju recommended DSP Merrill Lynch be entrusted the task of “quickly exploring some merger opportunities,” the company informed the stock exchanges that the investment banker has terminated its engagement with Satyam.
See Chronology Satyam suffered another blow a week later on December 23when the World Bank barred the company from doing any business with it for the next eight years for “improper benefits to bank staff” and “lack of documentation on invoices”.
However, I am also taking the liberty to recommend the following steps: Full text of Raju’s resignation letter to the Board. From putting China ties on even keel to getting crucial US waivers, Modi govt managed geopolitics with flair in As the promoters held a small percentage of equity, the concern was the poor performance would result in a takeover, thereby exposing the gap.
Full text: This letter Ramalinga Raju wrote uncovered the Rs 4,676 cr Satyam scam
This has resulted in artificial cash and confwssion balances going up by Rs crore in Q2 alone. Satyam is the country’s fourth largest IT firm and has has over 51, employees.
Low percentage of promoter equity in the company, where four independent directors resigned in the last two cknfession over the acquisition fiasco, could lead to a takeover and expose the gap, he said in the letter, also sent to regulator SEBI. Faced with the prospects of litigation and further selloff, Mr Raju quickly called off the deal on December 17 ; a day later on December 18, Satyam announced a board meeting for December 29 to consider share buyback to boost shareholder confidence.
National Association of Software and Services Companies, or Nasscom, raamlinga industry grouping raiu the software sector, expressed its shock at the disclosures made by Raju.
From rich Asian Games medal haul to cricket team’s success in Australia, a defining year for India Caught in the cycle of debt and death, India’s farmers drove home the severity of the agrarian crisis in Satyam shares crashed nearly 78 per cent on January 7, – from Rs to end around Rs None of my or managing directors immediate or extended family members has any ideas about these issues.
All Comments Your Activity. In short, the net fraud was worth Rs 4, crore. Ranu up 27 paise against dollar. New Year flushed with promise world over, but Kashmir stares at another period of gloom amid gunfights and clashes.
The start of a new year brought no respite for Satyam, rqmalinga. Satyam suffered another blow a week later on December 23when the World Bank barred the company from confesaion any business with it for the next eight years for “improper benefits to bank staff” and “lack of documentation on invoices”. It was this letter written by Ramalinga Raju written to the board of directors of Satyam Computer Services Limited that informed the markets that he had overstated cash and bank balances of Satyam by Rs 5, crore as on 30 September and uncovered what is perhaps India’s biggest corporate fraud till date.
Suresh Lwtter, executive director and chief financial officer of Wipro, sought to emphasize that the Satyam development was an isolated incident.
Avinash Vashista, chief executive of Tholons Inc. How can Rs7, crore be hidden in the books without the knowledge of CFO and statutory auditors? He later retracted that statement.
The violation of this is punishable by fines and imprisonment for up to 20 years. Corporates Written by Varun Sinha Updated: