Raju inflated cash, bank balance Rs 5040cr; Satyam plunges

100636 Investors following Mahindra Satyam. Share this News with them.

0

Like this story, share it with millions of investors on M3

Raju inflated cash, bank balance Rs 5040cr; Satyam plunges

Satyam had touched an intraday high of Rs 188.70 and an intraday low of Rs 128.65. At 11:27 am, the share was quoting at Rs 133, down Rs 45.95, or 25.68%. It was trading with volumes of 33,136,487 shares. Ramalinga Raju has resigned from the company board. The balance sheet has inflated cash & bank balance of Rs 5040 crore, reports CNBC-TV18.

Post your opinion here

 

0

Tweet

Share on Tumblr

ALSO READ See latest News about Mahindra Satyam See what other Experts & Brokerages are saying about Mahindra Satyam See messages about Mahindra Satyam Mahindra Satyam BSE | NSE 25/05/12 Are Mutual Funds betting on Mahindra Satyam?

Satyam Computer Service had touched an intraday high of Rs 188.70 and an intraday low of Rs 128.65. At 11:27 am, the share was quoting at Rs 133.00, down Rs 45.95, or 25.68%.

Ramalinga Raju resigns from Satyam Computers board. He writes a letter to the board giving balance sheet details.

He said that the balance sheet has inflated cash & bank balance of Rs 5040 crore. No board member had any knowledge of the real situation as against books. The balance sheet was inflated and accrued interest of Rs 376 crore in the books is non-existent.

He further writes in the letter that Rs 1230 crore was arranged to Satyam, which is not reflected in books. Ram Mynampati will act as interim CEO. Merrill Lynch can be entrusted to explore the merger options. He asks auditors for restatement of accounts in the light of new facts.

Raju in his letter further said that the Q2FY09 reported revenues of Rs 2700 crore Vs actual revenue of Rs 2112 crore. The Q2FY09 operating margin reported was Rs 649 crore against Rs 61 crore. The Q2FY09 numbers had Rs 588 crore of artificial cash in books.

He said that he is prepared to subject himself to law of the land and face the consequences. The account manipulation started several years ago. An attempt to eliminate the manipulation was failed, he added.
 
It was trading with volumes of 33,136,487 shares. Yesterday the share closed up 7.06% or Rs 11.80 at Rs 178.95.