Satyam Computer Services Ltd. – On Investigation

" Satyam chairman B. Ramalinga Raju in a letter to the board "

            09-01-09 During the investigation headed by general manager Sunil kumar on Thursday, lots of defraud has been fdiscovered in Satyam Computers Ltd. in Hyderbad. The chairman of India’s Satyam Computer Services Ltd. quit Wednesday after admitting the company’s profits had been doctored for several years, shaking faith in the country’s corporate giants as shares of the software services provider plunged nearly 80 percent. The company’s balance sheet -- riddled with "fictitious" assets and "non existent" cash -- contained a $1 billion hole that could no longer be concealed after a deal intended to save the struggling company was scuppered, Chairman B. Ramalinga Raju said in a letter to the board.

"Every attempt made to eliminate the gap failed," said Raju, 53. "It was like riding a tiger, not knowing how to get off without being eaten". B. Rama Raju, managing director of Satyam Computer and the chairman’s brother, also quit. Rajeev Sampat, an independent analyst, said the amount and nature of the fraud had shocked investors. "It is one of the biggest frauds the Indian capital market has seen. People have been taken by surprise by the gravity of the event," he said. "After overstating profit and understating debt, the company’s net worth is zero."

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