Ramalinga Raju Chairman Satyam Computers resigns : Irregularities
Ramalinga Raju Chairman Satyam Computers (NYSE: SAY ) resigns over Financial Irregularities. A few weeks back India's leading financial daily reported that he had sent in his resignation to the Board and as it was confirmed today that he has resigned due to massive financial irregularities. He has admitted that the books of the company were inflated by INR 5040 crore, translating into INR 50400 million.
Update 22:22 IST The trading on SAY ADR has been suspaneded on NYSE. PwC has refused to comment on the Scam citing client confidentiality and has commented that they are studying the letter from Raju.
Update 19:34 IST Satyam ADR down 90% in pre market trade on NYSE. It seems that US markets are more severe with the stock than Indian counterparts.
Contact Points in Satyam:
For investor queries please contact: Investorrelations@satyam.com
For media queries please contact: firstname.lastname@example.org or call +91 9845183710
SEBI Chairman on Satyam SCAM
SEBI Chairman C B Bhave is talking to the media and calling the developments baffling and is also talking about the Statutory Auditors of the Company PwC and how they certified the company accounts for the last six years without getting a wind of any wrong doing !
PwC - The Statutory Auditors: MUM is the Word
Follow the link below to read about the Ethics and Business conduct of PwC which they claim is based on excellence, teamwork and leadership!! Big words, but they are yet to make a statement on clearing their position.
Ethics and business conduct
PricewaterhouseCoopers ("PwC") is one of the world’s pre-eminent professional services organisations. As professional advisers we help our clients solve complex business problems and aim to enhance their ability to build value, manage risk and improve performance. As business advisors we play a significant role in the operation of the world’s capital markets. We take pride in the fact that our services add value by helping to improve transparency, trust and consistency of business processes. In order to succeed, we must grow and develop, both as individuals and as a business. Our core values of excellence, teamwork and leadership help us to achieve this growth.
Investor Confidence Shaken:
The Investor confidence is really shaking and it is hard to digest that after two big stock market scams, there was a possibility that a so called giant could have such inflated figures. It has long been discussed in undertones that a lot of so called Indian Stock Market Giants follow window dressing to show inflated profits, but this is the first time that a fraud of such scale has emerged in a huge corporate giant of the size of Satyam. Satyam employs in excess of 50,000 employees and the impact on the life of these individuals is also a matter of concern.
ICAI Reaction to the Satyam Scam:
NEW DELHI: The apex body of Chartered Accountants ICAI on Wednesday said any member of the body found guilty in the Satyam financial wrong
doings would be severely punished and the auditors could even be barred from practising, for the lifetime.
Stock Market Updates January 7, 2009
Update: 16:02 IST The Mumbai Sensex is still reeling under the shock of the Financial Fraud exposed today by the Satyam Chairman and has closed 749 points or 7.25 % down from the opening numbers. Satyam closed at INR 40 , down 77% and it has taken down the entire IT index down by 9%. Satyam obviously for the wrong reasons was the most active counter on the Stock Exchanges today followed by Reliance.
All IT Industry leaders are promptly calling it an isolated incidence. All eyes are on the ADRs of Indian IT Companies in USA and all of them are expected to undergo big hammering with Satyam leading the way when the US browses open later today.
12:52 IST: The Satyam Script is down 61% and trading at INR 58 at 12:15 IST. The Indian stock exchange SENSEX is trading down 594 points and is down by 5.75% at
The Satyam Maytas deal that was hammered down by investors and later Satyam was forced to withdraw from was a last ditch effort to fill in fictitious assets.
The entire letter of Ramalinga Raju can you found here (Click Here). He is stating that none of the board members had the knowledge of the irragularities and that he or the MD of the company had not materially benefitted from it. Also that he has not sold his shares in the last eight years.
This raises an eyebrow over the Auditors of the firm PricewaterhouseCoopers (PwC), their auditors for the past six years and have been giving them a clean chit!!!
Satyam's Ramalinga Raju resigns from the board. The company is forming a task force to address the situation. Meryll Lynch to be entrusted to explore merger opportunity.
Satyam Computer Services Ltd informed the National Stock Exchange: "The Company is in receipt of the resignation tendered by Mr B Ramalinga Raju, Chairman of the Company, who shall continue in the position only till such time the current board is expanded and the continuance is just to ensure enhancement of the Board over the next several days or as early as possible".