Satyam Computers Founder and Chairman Ramalinga Raju has resigned from the Board today. Mr Raju has put in his papers and is waiting for the Board’s decision.
Confessing to fraud, Raju has written a letter to the board giving details of how the balance sheet has inflated cash balances of Rs 5040 crore and accrued interest of Rs 376 crore is non-existent. Rs 1230 crore was arranged to Satyam and is not reflected in the books.
Analysts are of the view that Raju’s resignation would not make much of a difference to investors. They further said that the responsibility lies on the whole Board as it was an unanimous decision where this Board is in no place to decide on the issue.
Shares of Satyam plunged over sixty per cent following these reports.