Jan 07 2009
Satyam Computers fraud: Stocks fall
Chairman of Satyam Computers, Mr. Ramalinga Raju, has resigned as the Chairman after admitting “fraud” in the company. Raju admits that there had been an attempt to manipulate the accounts, which as we know failed. Mr. Ramalinga Raju also admitted that this manipulation had been going on for a few years.
It seems that when the balance sheets were handed in to the board, the books had been inflated to show Rs. 5,040 cr. The actual amount of Rs. 1,230 cr never appeared in the books. When Raju announced that he was to resign, he said that he will subject himself to the law, where he could face up to ten years in prison if found guilty of fraud.
Satyam computers stocks have taken a heavy beating following the news; it is not known if the company will be able to bounce back from such a thing. Ram Mynampati has now been appointed as the interim CEO of Satyam Computers.
