Hyderabad, Jan 07: Under attack over the USD 1.6 bn acquisition fiasco of firms promoted by his family Satyam ComputerS Chairman B Ramalinga Raju resigned on Wednesday and said he would subject himself to the "laws of land".
Raju in a letter to the company’s board accepted that the balance sheets were manipulated to show fictious balance of Rs 5040 crore.
Notably, no board member had any knowledge of the real situation of the books. Raju also added that the attempts to eliminate manipulations have failed.
There was a reported revenue of Rs 2700 crore in the Q2FY09 against the actual Rs 2112 crore – an artificial revenue of Rs 588 crore. "Under the circumstances I am tendering my resignation as the chairman of Satyam and shall continue in this position only till such time the current board is expanded. My continuance is just to ensure enhancement of the board over the next several days or as early as possible", B Ramalinga Raju said. Reacting to the shocker, India Infoline chairman Niramal Jain said: “This is utterly shocking. This came as a root schoker for the India Inc which in terms of corporate governance has done well in the past years.” The news came amidst reported takeover bid by many banks. Meanwhile, Satyam shares nosedive nearly 54 per cent at Rs 83 after resignation of chairman, managing director. DSP Merrill Lynch terminates its engagement with Satyam Computer, the IT firm informs BSE. Satyam, considered a ripe proposition for acquisition, was pushed into crisis after Raju was forced to abandon the acquisition of Maytas Infrastructure and Maytas Properties promoted by his son. In a regulatory filing the company said Raju would continue to be the chairman till the board is expanded. The resignations, ahead of January 10 board meeting pushed the company into crisis and paved the way for immediate restructuring of the board and the management.
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