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Satyam Computers Services Chairman Ramalinga Raju Resigns, Admits Financial Fraud
07 Jan 2009
Satyam Computer plunged into a deep crisis, as B Ramalinga Raju resigned as its chairman after admitting to major financial wrong-doings and saying his last-ditch efforts to fill the "fictitious assets with real ones" through Maytas acquisition failed.
The beleaguered IT giant, already under scanner over the aborted acquisition of firms promoted by the chairman's family, received a rude shock days ahead of its January 10 board meeting, with Raju stepping down along with his brother and Managing Director B Rama Raju.
Ramalinga Raju said in a letter to Satyam's Board of directors, wherein he listed major financial wrong-doings over the years to inflate the profits.
Noting that every attempt to eliminate gaps in balance sheet, purely on account of inflated profits over several years, failed.
Shares of Satyam plunged by over 50% immediately after the announcement of resignations, necessitating an overhaul of the Board and management.
Tags
satyam, dibacle, fraud, financial, wrongdoing, maytas, india
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