Satyam Computer ‘s B Ramalinga Raju resigned as its chairman after admitting to major financial wrong-doings and saying his last-ditch efforts to fill the “fictitious assets with real ones” through Maytas acquisitionfailed.
“It was like riding a tiger, not knowing how to get off without being eaten,” Ramalinga Raju said in a letter to Satyam’s Board of directors, wherein he listed major financial wrong-doings over the years to inflate the profits.
Noting that every attempt to eliminate gaps in balance sheet, purely on account of inflated profits over several years, failed, Raju said: “I am now prepared to subject myself to the laws of the land and face consequences thereof.”
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.
Sources said Mynampati, also a director of the company, may takeover from Raju, who resigned after facing flak for his company’s move to acquire two firms promoted by his sons.
Shares of Satyam plunged by over 50% immediately after the announcement of resignations, necessitating an overhaul of the Board and management.