satyam raju resigns

rajuSatyam shares plunged from 180 levels to 30 , after ramalinga raju had decided to resign and the worst thing was that satyam also dragged the nifty levels to bottom . Investors in panic sold off their shares .

The IT services firm has been in the middle of a controversy since it announced a bid to acquire Maytas Infra and Maytas Properties, owned and run by Mr Ramalinga Raju’s sons. The bid, which was scuttled within 24 hours of the announcement, led to the resignation of four independent directors from Satyam’s board.

Satyam said the chairman and the MD will continue in their positions till the board is expanded. The board is scheduled to meet on January 10. The company also informed the BSE that investment banking firm DSP Merrill Lynch, which was appointed by Satyam to review its strategic options after the failed Maytas bids, terminated its engagement with it.

Raju also admitted that the balance sheet for the month of september showed 5361 cr where as it was 5040 cr . Even the debtors and liabilities figures were tampered with.

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One Response

  1. I think he is still lying. The fraud that he is talking about is a simple fraud which is not so easy to hide. I am sure the auditors could have easily detected this fraud. Mint has an interesting perspective. They say that based on what he’s said, it’s impossible that Satyam would be operating on such a low operating marging of 3%. Hence the only logical thing is that he has siphoned off the money and this whole thing is a charade.

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