No Truth in this Satyam. Phony Corporate Hero Ramalinga Raju admitted to a Massive $1 Billion Fraud and resigned in Disgrace with Jail being his next stop.
The books were cooked for years at Satyam Computer Services Ltd. Shares of stock plummeted 78%.
This is India’s version of Enron and a black day for corporate India. The India Stock Exchange has taken Satyam [ which means TRUTH ] out of the Nifty Fifty Index.
Speaking of Black Days – Price Waterhouse Coopers India branch Certified the Company’s $1.03 Billion Cash when the Real amount was $78 Million.
Heads are going to roll. Satyam had stolen data and bribed bank officials. The fraud unravelled when Margin Calls forced large blocks of stock shares to be sold. Several Directors quit.
Raju , Satyam’s chairman , said he had inflated the balance sheet with non-existing cash and bank balances of 50.4 billion rupees or $1.04 Billion USD. ” I am now prepared to subject myself to the laws of the land and face consequences thereof ” Raju added.
“ What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years – It was like riding a tiger , not knowing how to get off without being eaten.” – B. Ramalinga Raju