Satyam Chairman Resigned

The finance ministry has swung into action on the Satyam issue. It has asked stock market regulator Sebi and ministry of corporate affairs to give a report on the issue. Ramalinga Raju resigns from Satyam Board. Writes letter to the board giving balance sheet details. Raju may face criminal proceedings and 10 year jail. SEBI Chairman Bhave says Satyam Chairman Letter has important implications for the markets SEBI Chairman says need to get more facts in order to take action following Satyam issue. Coming to the Market side, the share price of Satyam Computer Services (Satyam) Plunged like anything and in a free fall mode. The share price touched the high of Rs 188.70 and the low of Rs 30.70, changing negatively almost 83 % from the previous day closing price of Rs 179.10

Ramalinga Raju’s Letter :

Satyam Somputer Services' shares tanked after chairman Ramalinga Raju confessed of reporting inflated figures in the accounts of the firm.Raju said the Q2 September 2008 results reported operating margin of about Rs 649 crore versus actual Rs 61 crore. He further said that the balance sheet as on 30 September 2008 included understated liability of Rs 1230 crore. He also said the balance sheet as on that day included inflated cash and bank balances of Rs 5040 crore. No board member had any knowledge of the real situation of the books, Raju said. He further said the failed Maytas deal was a last attempt to fill fictitious assets with real ones. In mid-December 2008, Satyam had scrapped a deal to acquire Maytas Properties and Maytas Infrastructure, companies run by Raju's sons B Rama Raju and Teja Raju as the plan angered Satyam investors.

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