In a case of quick action being metted out by India’s judicial system, Satyam founder and former Chairman Ramalinga Raju was on Saturday remanded to judicial custody till January 23rd by a magistrate in Hyderabad. Raju’s counsel will move for bail on Monday.
The judge asked the jail to monitor Raju’s medical condition.
Text of the letter written to the Satyam Borad by Satyam’s Chairman B Ramalinga Raju’s who resigned from the company after admitting to the scandal at Satyam.
To the Board of Directors,
Satyam Computer Services Ltd. Dear Board Members, It is with deep regret, at tremendous burden that I am carrying on my conscience, that I would like to bring the following facts to your notice:
1. The Balance Sheet carries as of September 30, 2008
- Inflated (non-existent) cash and bank balances of Rs.5,040 crore (as against Rs. 5361 crore reflected in the books)
- An accrued interest of Rs. 376 crore which is non-existent
- An understated liability of Rs. 1,230 crore on account of funds arranged by me
- An over stated debtors position of Rs. 490 crore (as against Rs. 2651 [cr.] reflected in the books)
Dwindling at an all time low of Rs. 23, the Satyam stock may seem like a good buy for some investors at such a pitiable price. Here is what India Infoline CMD Nirmal Jain feels about the same,
We won’t buy any stock as the company can go bankrupt. I am surprised that trading in Satyam is still continuing.
He feels money was siphoned off from Satyam. “The Satyam fraud is likely to be a case of collusion, not negligence. It is difficult to believe that Ramalinga Raju was the only one involved in scam.”
So Satyam is a strict no-no according to Mr. Nirmal Jain’s views. What do you feel about his views? Anyone begs to differ?
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