Tuesday, January 06, 2009

Satyam Chairman Raju resigns, admits to fraud [India]

Satyam Computers founder and chairman Ramalinga Raju had resigned from the Satyam board.
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.

While Ram Myanpati will act as Interim CEO, Merrill Lynch can be entrusted to explore. 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. Shares in Satyam Computer shed all gains to turn negative after the embattled Indian outsourcer said its chairman has resigned from the board. Shares were down 16.81 percent at 149 rupees. (11.22 a.m.)

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