The Chairman of Satyam Computer’s- Ramalinga Raju has resigned today following an announcement of a fraud in the balance sheet. In his resignation letter, the chairman Raju admitted that the IT major’s balance sheet has inflated cash and bank balance of Rs 5,040 crore.
"No board member had any knowledge of the real situation. Accrued interest of Rs 376 crore in books is non-existent. Rs 1,230 crore was arranged to Satyam, but was not reflected in the books.", he added. According to Raju, Ram Mynampati will now act as an interim CEO.
The stock is currently down about 60% today and the effect of the fraud is clearly being seen in the value of its share. As a result of which panic has also been spread and investors are adviced to be calm.
Here is what experts have to say about Satyam and its future !
Reference taken from following sites:
www.moneycontrol.com www.money.rediff.com