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SCAM
B RAMALINGA RAJU FOUNDER AND FORMER CHAIRMAN OF ONE OF THE BIGGEST IT GIANT OF OUR NATION SATYAM COMPUTERS AND GUESS WHAT THE PRIME CONVICT IN THE BIGGEST SCAM OF COUNTRY
Former chairman B.RAMALINGA RAJU IS THE PRIME CONVICT IN THE CASE WITH SEVERAL OTHER BOARD MEMBERS
HOW IT HAPPENED
AN ANNOUNCEMENT THAT SHOCKEDTHE CORPORATE INDIA THAT B.RAMALINGA RESIGNED . The COMPANYS BALANCE SHEET WAS INFLATED TO Rs 5,361 CRORE AT THE END OF SEPTEMBER 2008 AGAINST THE ACTUAL Rs 5,040 CRORE.
Cont.
There is an artificial cash balance of Rs 588 crore in sept 2008. Raju also admitted that Satyam's profits were inflated over several years. And it is difficult for him to stop this fraud gap. He added, "It was like riding a tiger, not knowing how to get off without being eaten." The Maytas deal was the last attempt to fill the fictitious assets with real ones.
Raju also said Rs 1,230 crore was arranged to Satyam, which is not reflected in its books, to keep Satyam's operations running. For this the promoter had to pledge the promoter shares and raising funds from other sources.
The ministry of corporate affairs later ordered a probe into whether the company violated any corporate governance laws while entering into such a deal involving share holders' money.
SALVAGING SATYAM
To stabilize the sinking Satyam Computers, the Government nominated banker Deepak Parekh, IT expert Kiran Karnik and former SEBI member C Achutan to the IT company's board. .
Anand Mahindra, Chairman, Tech Mahindra, the new owner of Satyam, will address the first board meeting of the company post the Rs 2,890-crore takeover, giving hope and future to Satyams 45,000-50,000 employees. A moment of truth for Satyam and a victory for the government and the regulators.
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