Hyderabad: Satyam Computer Services founder chairman B. Ramalinga Raju resigned from the IT major's board after admitting a fraud to the tune of Rs 4000 crore ($823 million) in the balance sheet of the company.
In a notification to the stock exchanges, the Hyderabad-based IT firm said Ramalinga Raju and Managing Director Rama Raju had resigned early Wednesday and that the Securities and Exchanges Board of India (SEBI) had been informed.
The balance sheet has inflated cash balances of Rs 5,040 crore and accrued interest of Rs 376 crore is non-existent. Rs 1,230 crore, which was arranged to Satyam, is not reflected in the books.
He admitted that the second quarter numbers were inflated to Rs 2,700 crore when the actual figure was only Rs 2,112 crore. He also said that other Board members were unaware of the real numbers.
"Rama Raju shall continue in the position till such time the board is expanded and the continuance is to ensure enhancement of the board," the company said in the notification.
Wednesday 7 January 2009
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