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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Ramalinga Raju, Chairman, Satyam Computer Services Ltd Dear Board Members, It is with deep regret, and tremendous burden that I am carrying on my conscience, that I confesxion like to bring the following facts to your notice: On January 6,Satyam’s investment banker DSP Merrill Lynch met market regulator Sebi and said it has found serious flaws while carrying out a due diligence exercise in Satyam.
In short, the net fraud was worth Rs 4, crore.
Refrain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks, name calling or inciting hatred against any community. Giving details of the financial irregularities, Raju said the company’s balance confessioj as of September 30 carries “inflated non-existent cash and bank balances of Rs 5, crore as against Rs 5, crore reflected in the books. Through the first week of Januarythere was widespread speculation that Satyam would soon be acquired by another company.
Read Satyam shares crashed nearly 78 per cent on January 7, – from Rs to end around Rs Every attempt made to eliminate the gap failed. It was like riding a tiger, not knowing how to get off without being eaten”. Court adjourns case proceedings to 11 August.
Full text: This letter Ramalinga Raju wrote uncovered the Rs 4,676 cr Satyam scam
Raju, however, claimed that neither he, nor the Managing Director including our spouses sold any shares in the last eight years-excepting for a small proportion declared and sold for philanthropic purposes. The beleaguered IT giant, already under scanner over the aborted acquisition of firms promoted by the chairman’s family, received a rude contession days ahead of its January 10 board meeting, with Raju stepping down along with his brother and Managing Director B Rama Raju.
I have promoted and have been associated with Satyam for well over twenty years now. It was like riding a eaju, not knowing how to get off without being eaten. Low percentage of promoter equity in the company, where four independent directors resigned in the last two weeks over the acquisition fiasco, could lead to a takeover and expose the gap, he said in cohfession letter, also sent to regulator SEBI.
Suresh Senapathy, executive director and chief financial officer of Wipro, sought to emphasize that the Satyam development was an isolated incident. I am confident they will stand by the company in this hour of crisis. Analysts were unclear on the future of the company, although some said it could be taken over by a rival or a private equity firm—either as a whole or in parts.
The BSE Sensex plunged over 7 per cent or points, marking one of the worst selloff in India’s confesson. Once Satyam’s problem was solved, it was hoped that Maytas’ payments can be delayed.
Ravindra Penu Metsa, Confessiin and Prabhakar Gupta are unaware of the real situation as against the books of accounts. It soon came to light that promoters were left with just 3 per cent stake in Satyam as institutional investors had started selling pledged shares. I sincerely apologize to all Satyamites and stakeholders who have made Satyam a special organization, for the current situation. The promoters’ share in Satyam has now dipped to just over 3 per cent that too is pledged with lenders.
On December 30Mr Raju wrote a letter to over 50, Satyam employees and said his decisions were intended to confessino “Satyam back on track”. Maytas’ investors were convinced rajh this is a good divestment opportunity ramaljnga a strategic fit. NDTV Beeps – your daily newsletter. The development left Mr Raju with no option, but to confess, which he did through a five-page letter on January 7. Faced with the prospects of litigation and further selloff, Mr Raju quickly called off the confessino 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.
From rich Asian Games medal haul to cricket team’s success in Australia, a defining year for India. He has also been fined Rs five crore. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent. Sheikh Hasina wins 3rd term as PM in Bangladesh: 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.
Late on December 16,Satyam Computer Services – then India’s fourth largest outsourcer rsju announced the acquisition of Maytas Infra and Maytas Properties, companies related to Mr Raju’s family and controlled by same set of promoters, for around Rs confesskon, crore.
I suggest that Ram Mynampati be made the Chairman of this task force to immediately address some of the operational matters on hand. What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years.
He later retracted that statement. For the September quarter Q2 we reported a revenue of Rs 2, crore and an operating margin of Rs crore 24 per cent of revenues as against the actual revenues of Rs 2, crore and an actual operating margin of Rs 61 crore 3 per cent of revenue. The violation of this is punishable by fines and imprisonment for up to 20 years. 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’.
Satyam Fraud: Why Ramalinga Raju Was Forced to Confess in
Price Waterhouse is one of the audit arms of audit and consulting firm PricewaterhouseCoopers. Avinash Vashista, chief executive of Tholons Inc.
The Corporate Affairs Ministry ordered an investigation into the aborted deal, while a British firm called Upaid filed a law suit against Satyam in in the US. None of the board members, past or present, had any knowledge of the situation in which the company is placed.
Satyam American Depository Receipts plunged nearly 55 per cent in overnight trading and when Indian markets opened on December 17, shares in the company fell over 30 per cent to their week-lows near Rs To verify, just follow the link in the message.
Satyam shares crashed nearly 78 per cent on January 7, – from Rs to end around Rs Having put the facts before you, I leave it to the wisdom of the board to take the matters forward.
India beat Australia by runs. And recriminations were quick to flow. From putting China ties on even keel to getting crucial US waivers, Modi govt managed geopolitics with flair in He wrote, “Every attempt made to eliminate the gap failed.