Satyam Computers’ Fraud

Satyam Computers’ Multi Year Fraud

Mega and multi-year fraud of Satyam Computers came to lime light when its founder and chairman Ramalinga Raju resigned from director post. Satyam is one of the top and biggest IT firms in India and in the globe as it is running with around 53K employees and branched in 66 nations, rooted in India. Due to uncomforted and struggle in management Raju resigned from managing director of Satyam yesterday. Indian share market which opened up and range bound still 11 am started to tumble after his resignation news reached SEBI and the investors and traders. The shares of Satyam made a whopping 80 percent south journey with a grave cry among the share holders.

Recent Satyam

Satyam is valued as a fore runner in the IT field having the asset estimation of 15K crores. For the past several days the shareholders were unhappy and some shouts rose from them. The reason behind this was they didn’t like the firm changing the reserved cash into another buyout. Also the talk about this wrong direction of satyam’s journey could be heard around the globe and earlier weeks before share prices of Satyam were depreciated, as yesterday, in US markets.
In this situation Raju sent his resignation letter to the SEBI and the management of central office. SEBI was shocked seeing this fraud confess statement and after this release Indian market switched to a free fall mode.

Ramalinga Raju’s Letter

From his letter to SEBI it is understood that there was a fraud for more than seven thousand crores.
Until September, Bank reserve was stated at Rs 5361 crore. But in actual it was only Rs 321 crore. Almost Rs 5040 crore was inflated.In second Quarters, income was stated at Rs 2070 crore, but in real it was Rs 2112 crore only and Rs 649 crore was stated as running profit but that was only Rs 61 crore. Because of this we showed Rs 588 crore as inflated. For the past many years there was a gap between report and actual. All steps taken by me to fill this gap were failed and Maytas’ takeover was the last attempt which also failed. And I was riding on a tiger in a situation the tiger would eat me if I get down. In this situation I resign as managing director of Satyam.

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