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.
|Published (Last):||18 March 2017|
|PDF File Size:||13.44 Mb|
|ePub File Size:||7.10 Mb|
|Price:||Free* [*Free Regsitration Required]|
Faced with the prospects of litigation and further selloff, Mr Raju quickly called off the deal 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. SEBI horrified by Satyam revelations; studying actions.
Ramalinga Raju admits to accounting fraud, resigns – Livemint
As the promoters held a small percentage of equity, the concern was the poor performance would result in a takeover, thereby exposing the lettdr. The violation of this is punishable by fines and imprisonment for up to 20 years. Every attempt made to eliminate the gap failed. 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.
Rama Raju would also continue as Managing Director, but only till the time the Board is expanded. As the promoters held a small percentage of equity, the concern was the poor performance would result in a takeover, thereby exposing the gap. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.
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.
The announcement was met with fierce opposition from domestic as well as foreign investors, who owned a large part of Satyam. It was this letter written by Ramalinga Raju written to the board of directors of Satyam Computer Services Limited that informed the markets that he had overstated cash and bank balances of Satyam by Rs 5, crore as on 30 September and uncovered what is perhaps India’s biggest corporate fraud till date.
Caught in the cycle of debt and death, India’s farmers drove home the severity of the agrarian crisis in The deal was announced after Indian stock markets had closed, but foreign investors were quick to punish Satyam. Giving details of the financial irregularities, Raju said the company’s balance sheet 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.
With the hope that members of the Task Force and the financial advisor, Merrill Lynch now Bank of America will stand by the company at this crucial hour, I am marking copies of this statement to them as well.
Satyam suffered another blow a week later on December 23when the World Bank barred the company from doing any business with it for the next eight years for “improper benefits to bank staff” and “lack of documentation on invoices”.
He wrote, “Every attempt made to eliminate the gap failed.
Late on December 16,Satyam Computer Services – then India’s fourth largest letter – 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 7, crore.
Ram can also act as an interim CEO reporting to the board. Price Waterhouse is one of the audit arms of audit and consulting firm PricewaterhouseCoopers. Through the first week of Januarythere was widespread speculation conefssion Satyam would soon be acquired by another company.
NDTV Beeps – your daily newsletter. Raju will continue as chairman till the Board finds a replacement, even as speculation was rife that Satyam President Ram Mynampati would take over as Chairman. 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.
From Our Archive | Raju admits to accounting fraud, resigns
Low percentage of promoter equity in the company, where four independent directors resigned in the last two weeks over the acquisition fiasco, confeesion lead to a takeover and expose the gap, he said in the letter, also sent to regulator SEBI.
All Comments Your Activity. Suresh Senapathy, executive director and chief financial officer of Wipro, sought to emphasize that the Satyam development was an isolated raamalinga. Help us delete comments that do not follow these guidelines by marking them offensive. Rama Raju also resigned. However, the damage to Satyam’s credibility was already done.
The US listing also makes Satyam and its directors vulnerable to lawsuits in that country. See Chronology Satyam suffered another blow a week later on December 23when the World Bank barred the company from doing any business with it for the next eight years for “improper benefits to bank staff” and “lack of documentation on invoices”.
He further said that Satyam reported a revenue of Rs crore Rs 27 billion for the September quarter and an operating margin of Rs crore 24 per cent of revenue as against the actual revenue of Rs crore Rs From rich Asian Games medal haul to cricket team’s success in Australia, a defining year for India Caught in the cycle of debt and death, India’s farmers drove home the severity of the agrarian crisis in Once Satyam’s problem was solved, it was hoped that Maytas’ payments can be delayed.
Full text of Raju’s resignation letter to the Board – Times of India
ramalinya Rupee up 27 paise against dollar. Condession balance sheet also carries “an accrued interest of Rs crore which is non-existent, an understated liability of Rs crore on account of funds arranged by me Rajuan overstated debtors position of Rs crore as against Rs crore reflected in the books,” Raju said. We have sent you a verification email.
To verify, just follow the link in the message. Featured Today In Travel. No shareholder approval was sought for the acquisition, which would have utilized nearly all of Satyam’s Rs 5, crore cash. Pro-democracy icon turned iron lady, Awami League leader oversaw 10 ramalonga of economic growth. On January 6,Satyam’s investment banker DSP Merrill Lynch met market regulator Sebi and said it confeasion found serious flaws while carrying out a due diligence exercise in Satyam.
The balance sheet carries as of September 30, a Inflated non-existent cash and bank balance of Rs 5, crore as against Rs crore refglected in the books b An accured interest of Rs crore which is non-existent c An understated liability of Rs 1, crore on account of funds arranged by me d An over stated debtor cofession of Rs crore as against Rs reflected in the books 2. Read Post a comment. Login from existing account Facebook Google Email. Mr Raju was arrested and tried; on Thursday, nearly six years after the fraud came to light, year-old Mr Raju was sentenced to seven years in jail for criminal cheating and conspiracy in what is now described as India’s largest-ever corporate scandal.
Thu, Jan 08