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Wednesday 7 January 2009, 3:20 PM
Satyam Computers under India’s biggest company fraud - Raju surrenders
As a further development in this story, the erstwhile chairman Ramalinga raju has surrendered to the Andhra Pradesh Police.
Raju has been arrested under the Indian Penal Code sections 120B, 409, 420, 468 and 471. Reports say that if proved guilty in these sections, he might be put behind the bars for upto 10 years.
Satyam Computers, one of India’s largest IT companies, has come under the fraud scam of balance sheet manipulation.
As per the news item on Techglimpse, Ramalinga Raju, the chairman of the company has resigned admitting committing this fraud of such huge proportion.
Satyam is the India’s fourth largest IT firm and has has over 51,000 employees. Giving all the details of the financial irregularities, Raju said the company’s balance sheet as of September 30 carries “inflated (non-existent) cash and bank balances of Rs 5,040 crore (as against Rs 5,361 crore reflected in the books.”
“It was like riding a tiger, not knowing how to get off without being eaten,” Ramalinga Raju said in a letter to Satyam’s board of directors, wherein he listed major financial wrong-doings over the years to inflate the profits.
Raju has been arrested under the Indian Penal Code sections 120B, 409, 420, 468 and 471. Reports say that if proved guilty in these sections, he might be put behind the bars for upto 10 years.
Satyam Computers, one of India’s largest IT companies, has come under the fraud scam of balance sheet manipulation.
As per the news item on Techglimpse, Ramalinga Raju, the chairman of the company has resigned admitting committing this fraud of such huge proportion.
Satyam is the India’s fourth largest IT firm and has has over 51,000 employees. Giving all the details of the financial irregularities, Raju said the company’s balance sheet as of September 30 carries “inflated (non-existent) cash and bank balances of Rs 5,040 crore (as against Rs 5,361 crore reflected in the books.”
“It was like riding a tiger, not knowing how to get off without being eaten,” Ramalinga Raju said in a letter to Satyam’s board of directors, wherein he listed major financial wrong-doings over the years to inflate the profits.
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