Today's sensational news in the Indian IT industry and the Indian Share market is the resignation of Ramalinga Raju from the Chairman post of Satyam Computers.
The Satyam shares which were already going down (after the World Bank ban), fell tremendously after this news. The price of a share in the morning was about Rs. 180/- and in the evening its just above Rs 35/-
In his resignation letter to the board, Ramalinga Raju had admitted that the Satyam's balance sheets was inflated to Rs. 5040 crores, which was actually very less.
The letter says, how all the attempts to fill this fictitious assets with real ones failed and then comes the punch line - According to Raju, none of the other Board Members had the knowledge of the real situation.
Poor Raju. In every board, whenever a problem comes, there will be one scape goat and in this issue, its Ramalinga Raju. Even without any SEBI/CBI interrogation, Raju have come out himself, admitting his faults - (though there was no other gentleman option for him). Not many in our country have this courage. In that aspect, Raju is a gentle man.
If at all that Maytas acquisition had happened smoothly, Satyam wouldn't be in this bad condition.
by the way, I can surely tell Satyam is not the only company with this problem. If SEBI audits all company's books - there will be many more Satyams. Even bigger ones might exist.