Ramalinga Raju, Chairman of SATYAM Computer Services Ltd. (one of the top 6 INDIAN IT companies - combined known as SWITCH) resigned from the SATYAM board today (Jan. 07th, 2009). He wrote a letter to the SATYAM board admitting that the IT major's balance sheet has an inflated cash and bank balance of Rs 5,040 crore. The balance sheet of SATYAM has inflated accrued interest of Rs 376 crore in books, which is non-existent. Rs 1,230 crore was arranged to SATYAM, which is not reflected in books. Also, SATYAM has debtors of Rs. 490 crores and it showed only Rs. 2651 in books. So, overall it was a scam (fraud) of 10,000 crores (Rs. 100 billion or USD 2 billion)The SATYAM scam (fraud) is the biggest one after Harshad Mehta and Ketan Parekh.
This news has hammered the SATYAM stock a lot, which touched a new 52-week low of 30.80. It has seen a drop of 77.51% to Rs 40.25, at close.
"No board member had any knowledge of the real situation.", says Mr. Raju. Mr. Ramalinga Raju's resignation statement can be found here.
Everything is bullshit.. without auditors consent .. it cannot be done..
How can you expect auditors to be fair when they are paid by people who are to be audited. Dismiss all Senior functionaries who misrepresented accounts and penalize with punitive costs and damages.. Why should small investors pay for these fraudulent working group.
PWC was one of the auditors in this case...
IL&FS sold 24.5 million shares yesterday @ 180 and today the fraud was out in open and the price was @ 30.80... So who lost? only the small investor. Can somebody explain why IL&FS sold 24.5 million shares yesterday? Did they have prior knowledge of the scam?
I have created a petition to be sent to http://www.sebi.gov.in/ at http://www.petitiononline.com/SATCOM09/petition.html please sign this...