Satyam Busted for fraud: Raju resigns and admits incorrect balance sheet: Finance Trading Times

Satyam Busted for fraud: Raju resigns and admits incorrect balance sheet

In a shocking development, Ramalinga Raju of Satyam has resigned from the Chairmanship of Satyam. What is more shocking is that he has revealed about the incorrect details in the Balance sheet of Satyam, which is having inflated values of almost 5040 Crore Rupees. This has come as a big shock to the entire world. Satyam is one of the big IT companies of India and has been sensing some trouobles since last few weeks. Satyam Raju resignation balance sheet

Initially, it was the Maytas Infrastructure deal which was alleged to have all inconsistencies and beign favourable to the family members of Raju. Then the World bank created another uproar by charging Satyam of data theft. And now, the resignation and revelations by Ramalinga Raju seems to be the last nail in the coffin, informing about inconsistencies in the balance sheet of Satyam talking of inflated cash and bank balances.

Till yesterday, there were rumors about a possible Satyam-Tech Mahindra Merger, but the latest news of today will make it more difficult for Satyam. There were issues of Corporate Governance overlooking, and even relationships between Indian School of Business ISB and Satyam have come under the scanner of SEBI and other regulatory authories. Let's hope that something worthwhile comes out of all this unfortunate development. There will be severe implications of all these revelations for other Indian Stock listed companies as well. Worst situation is of the shareholders which saw 20% decline in the Satyam Share price in less than 10 minutes of Raju's resignation news.
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1 Comment: Post your Comments

Anonymous said...(on 7 January 2009 at 03:18 )  

Hi Shobhit
I am a regular reader of your posts since last 2 years and your thoughts have guided me in rough times.
I am seeking a financial advice from you here.

My Financial snapshot like this
1)bank Home loan of 15 lacs@13.25% 20 Year tenure (19 Years remaining)
2)Personal Loan of 3 Lacs@17.5 Monthly Reducing 4 years tenure (3 yrs remaining)

These loans are from two different banks.

Now Third bank which is a PSU offering me a home loan @10.75%, and after that top up of 3 Lacs with which i will close the personal Loan. So Third bank will lend me 18 Lacs@10.75%

the objective behind this is to consolidate different debts under one Lender that to at lower rates.

What would be your suggestion in this regard?

Andy K

Wish you all happy and fruitful trading and investing activities with safety! = = = Post a Comment

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