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Satyam An IT giant that was

Anurag Bhullar


In a letter addressed to the Board of Directors, chairman of the Satyam, Mr. B. Ramalinga Raju has expressed apologies to the stakeholders for bringing the firm in the crippled state. The condition was quoted as ‘It was like riding a tiger, not knowing how to get off without being eaten’.


He admitted that what started as a ‘marginal gap’ between the actual operating profit and what was here on balance sheets acquired a massive size, leading to the current situation. The values of profits are highly inflated ones with the cash and bank balances standing at Rs.5361 crores despite the real statistic being about Rs.5040 crore. He also informed that none of the board members were aware of the troubled position held by the company.


Consequently, the price of shares toppled down to Rs.64, an astonishing fall of 62%. Besides this, Merrill Lynch too acted by ending its engagement with the IT company. A task force, to be headed by Ram Mynampati has been constituted in recent days for handle the situation, to any extent possible.

 
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