Chairman of Satyam Computer Ramalinga Raju has resigned from the company’s board. In a shocking disclosure, he has revealed some financial irregularities in the company, including an inflated cash balance of Rs 5,040 crore.
In reaction to Raju’s revelations, the stock was hammered by investors and it is down over 60 per cent.
Raju said that he feared takeover due to poor finance performance. Coming clean on financial irregularities, he said that the company had Rs 1,230 crore worth of understated liability as of September 30.
Raju also revealed that he tried to fill fictitious assets with Maytas deal.
He said that the company carries inflated cash balance of Rs 5,040 crore. He also reported of Rs 588 crore artificial cash in Satyam’s books.
Raju said that every attempt to eliminate the gap failed. On Raju’s disclosure, Sebi chief said the issue has serious implications and the regulator will take coordinated action.
His decision was conveyed to the company’s board members. The company was supposed to hold a board meeting this Saturday.