Thursday, January 8, 2009

Chairman Ramalingam Raju Commits Fraud

Chairman of Satyam Somputers Limited Mr. Ramalingam Raju commits fraud worth 7000 crore indian rupees. In his letter to the board members he accepted that he has shown inflated cash reserves, income and cash balances. He also stated that no board members are involved in this probe except him. As soon as the statement come in the stock of Satyam Plunged 80% and closed on NSE at 40 levels.

The Security Exchange Board of India had sent special team for investigation to Satyam's banglore headquarters. As Satyam is Nasdaq listed company the chairman had also to face investigation and prosecution in U.S.

This fraud is first of its kind and the biggest in indian I.T Sector. This fraud has also exposed the defects of corporate governance in india and also had spoiled India's image in Investor World.

2 comments:

Keshava said...

are they going to change the name to 'asatyam computer services' now?

Keshava said...

('satyam' is a sanskrit word meaning 'truth'. asatyam is the opposite.)