Finally after more than a month the scam hit Satyam Computer has appointed CEO and Special Advisors
The Board announced that it has appointed Mr. AS Murty as Satyam’s Chief Executive Officer, effective immediately. The board has also appointed Mr. Homi Khusrokhan and Mr. Partho Datta as Special Advisors to the Board. These decisions are aimed at quickly stabilizing Satyam. The organization has visibly increased its focus on business continuity for its customers and confidence building amongst its associates and vendors.
This move will help the company to run its day to day business more effectively.
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The Indian central government which in Sunday appointed three members to troubled Satyam computers board, considering to proved financial package to the company.
Speaking the media commence Minister, told reporters that as the more that 50 thousand employees is at stake and even the companies brand which has re presented the India in global arena. At stake, the government will do everything to save these.
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Ramalinga Raju, who was arrested by police for India’s biggest fraud has told the police that he and his brother Rama Raju took the decision to manipulate the accounts in order show higher income and to get more business, He added that he directed the company CFO to do as directed by him.
Ramaling Raju also told, he has been manipulating the account for past 7 years.
He also told his role was limited to quarter end due diligence.
Even as the company CFO says he was told to do only as told by Ramalinga Raju.
The CFO admitted the he suspected something id wrong when payments were delayed.
He also added that the companies fixed deposits are unreal and fictions and blamed auditors for the same.
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On the news of Ramalinga Raju, Chairman of Satyam Comaputer Ltd, has resigned from the board, and crash of share price in Indian markets has brought the companies ADR down by 84% in pre market trades.
Raju, in his letter recommend Ram Mynampati to act as an interim CEO.
In his letter to the board, Raju admitted that the company’s balance sheet has inflated cash and bank balance of Rs 5,040 crore. “No board member had any knowledge of the real situation. Accrued interest of Rs 376 crore in books is non-existent. Rs 1,230 crore was arranged to Satyam, but was not reflected in the books.”
Even as the both Center and State the Govt. have order the probe in to the full saga,
Industry leader feel the government and the regulator must take strict action so the impact of Satyam problem will not be on the other Indian IT companies.
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Ramalinga Raju, Chairman of Satyam Comaputer Ltd, has resigned from the board, In his letter to the board, Raju admitted that the companies balance sheet has inflated cash and bank balance of Rs 5,040 crore. “No board member had any knowledge of the real situation. Accrued interest of Rs 376 crore in books is non-existent. Rs 1,230 crore was arranged to Satyam, but was not reflected in the books.”
Raju, in his letter recommend Ram Mynampati to act as an interim CEO.
This news brings the share price of the company down by more than 80%, and lost more than 10 thousand crore market capital. Even the border markets saw down fall to the tune of 7%
The market regulator SEBI has said it will take action after looking at all the issue.
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SATYAM COMPUTER stock price crashed another 14% on reports of Wipro’s denial to buy stake in the company.
Satyam computer’s share price has fallen nearly 40% since the company called off the deal to buy stake in the MAYTAS (owned by the promoter family) The stock has seen huge volumes since then and the investors and the trader have been selling the shares in market, if one has to go by the market rumors the stock may plunge to sub Rs.100 levels.
Fundamental analyst says the counter may have seen the steep fall and at current market price of 140 the stock seems to be attractive investment. But they also have a view that the stock price may rise only if there is any change in the satyam’s top management.
Analysts feel technically the stock has good support near Rs.140. below which the stock may see further fall
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