Satyam - update

After posting the events that shook Satyam in 2008, I didn't expect the next day to be so big. Satyam CEO has confessed that he manipulated the quarterly reports for years with high numbers. He cited slow growth and competition pressure had pushed him to manipulate the books.

Read the confession letter from Raju:

CLICK HERE FOR SATYAM UPDATES

Highlights from his letter:

• Q2's actual revenue was Rs.2112 Crore against the reported Rs.2700 Crore. Also, the operating margin was Rs.61 Cr against Rs.649 crore
• Q2 alone had artificial balance of Rs.588 Cr
• To justify the operating margin, he wanted to show some real assets. That's when Maytas Acquisition was tried out.
• In the past two years, Raju arranged Rs.1230 Crore to run the company. This was not reported in any balance.
• He didn't take a penny from the company.
  
• He didn't sell a share in the past eight years.
  
• Company is open to mergers, Merrill Lynch will be the choice for this task.
• Ram Mynampati will be the interim CEO.
  
• He is ready to subject himself to the law of the land.
  

Raju summed up his situation with these words: "it was like riding a tiger, not knowing how to get off without being eaten".

Meanwhile, Satyam stocks got removed from the National Stock Exchange(NSE) as its market cap plunged. But, it is still on BSE.

Tags: Satyam, Satyam fraud, Ramalinga Raju, Raju letter, Satyam fraud