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Raju resigns, Satyam on the last legs

January 7, 2009

My favourite whipping boy, Satyam is in the news again[again?] Raju has resigned, and disclosed huge discrepancies in the balance sheet.

The letter made public

B.Ramalinga Raju resigned today with another managing director and disclosed that, Satyam has huge inflated junk balance sheet. What turned out to be an attempt to run personal fiefdom, by acquiring Maytas, was actually a ploy to turn the inflated balance sheet into a solid one by acquiring real assets and deferring the payment for the same.

So its once again, the issue of corporate ethics which is time and again cropping up all at the wrong places for Satyam.

First glitch UPAID : Salvo: 1billion USD
Second glitch WORLD BANK DATA SNOOPING: Salvo: Satyam banned
Third glitch MAYTAS: Salvo: Directors resign
Fourth glitch BALANCE SHEET: Salvo: Raju resigns

The stock fell for 70%.

A more detailed report and links can be found here

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