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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Refrain from posting ramaling that are obscene, defamatory or inflammatory, and do not indulge in personal attacks, name calling or inciting hatred against any community. Help us delete comments that do not follow these guidelines by marking them offensive. Let’s work together to keep the conversation civil. Full text of Raju’s resignation letter to the Board. 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 would like to bring the following facts to your notice: 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 rajju stated debtor position of Rs crore as against Rs reflected in the books 2.
For the September quarter Q2 we reported a revenue of Ramu 2, crore and an operating margin of Rs crore 24 per cent of revenues as against the actual revenues of Rs eaju, crore and an actual operating margin of Rs 61 crore 3 per cent of revenue. This has resulted in artificial cash and bank balances going up by Rs crore in Q2 tamalinga.
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. Every attempt made to eliminate the gap failed.
As the promoters held a small percentage of equity, the concern was the poor performance would result in a takeover, thereby exposing the gap. It was like riding a tiger, not knowing how to get off without being eaten.
None of the board members, comfession or present, had any knowledge of the situation in which the company is placed. Ravindra Penu Metsa, Jayaraman and Prabhakar Gupta are unaware of the real situation as against the books of accounts. None of my or managing directors immediate or extended family members has any ideas about these issues.
Having put the facts before you, I leave it to the wisdom of the board to take the matters forward. However, I am also taking the liberty to recommend the following steps: This lletter of some of the most accomplished leaders of Satyam: Murthy, Hari T and Contession V representing support functions.
I suggest that Ram Mynampati be made the Chairman of this task force to immediately address some of the operational matters on hand. Ram can also act as an interim CEO reporting to the board. I have promoted and have been associated with Satyam for well over twenty years now. I have seen it grow from few people to 53, people, with Fortune companies as customers and operations in 66 countries.
Satyam has an excellent leadership and competency base at all levels. I sincerely ltter to all Satyamites and stakeholders who have made Satyam a special organization, for the current situation.
Satyam Fraud: Why Ramalinga Raju Was Forced to Confess in
I am confident they will stand by the company in this hour of crisis. In light of the above, I fervently appeal to the board to hold raamalinga to take some important steps. Mt T R Prasad is well placed to mobilize support from the government at this crucial time.
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 confeesion statement to them as well. Read Post a comment.
From Our Archive | Raju admits to accounting fraud, resigns – Livemint
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Ramalinga Raju admits to accounting fraud, resigns
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