In the latest development of ongoing crisis in India’s fourth largest information technology company, Satyam Computer Services, the founder and Chairman B Ramalinga Raju Wednesday morning has reportedly resigned from the board pertaining to fraudulent inflated balance sheet of the company.
The Managing Director and Co-founder of the company, Rama Raju, who is also the brother of Ramalinga Raju, has also resigned from his post. Both the ex-member of board has informed the market regulator Security and Exchanges Board of India (SEBI) by writing letters, sources said.
According to sent letter, as per media report, Ramalinga Raju and Rama Raju have accepted the fraud relating to balance sheet of the company which was showing swelled bank balance over the years due to profligate virtual cash component to the balance sheet, profits in the company were inflated over the years, leading to wide gap between real and imaginary assets.
The Market Regulator, in response, is mulling to take strict action against this Hyderabad based IT firm after thoroughly scrutinising the fact. SEBI is studying the case and also considering to communicate with stock exchanges to take necessary actions.
C B Bhave, the Chairman of SEBI, stated that it was horrifying magnitude and everybody needs to learn a lesson from this event. Sebi would find out the indulged persons behind this fraudulent affair.
The market regulator is also in the touch of Ministry of Corporate Affairs and will cooperate to the ministry in terms of any action, added Bhave.
In the wake of uneven event of Satyam, Bombay Stock Exchange benchmark Sensex — a pack of 30 leading indexed companies — plunged by 749 points from 10335 to 9587 on Wednesday.
The stock of Satyam in BSE sharply fell down by 77.69 percent from Rs.179.1 to Rs.39.95, a loss of Rs.139.15 per share, marked one of the worst performance in the history of this IT giant.
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