Satyam fraud: Full text of Raju's letter to board

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Posted: Wednesday, Jan 07, 2009 at 1705 hrs IST
Updated: Wednesday, Jan 07, 2009 at 1705 hrs IST

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Hyderabad: is common knowledge.

I would like the board to know:

1. That neither myself, nor the Managing Director (including our spouses) sold any shares in the last eight years - excepting for a small proportion declared and sold for philanthropic purposes.

2. That in the last two years a net amount of Rs 1,230 crore was arranged to Satyam (not reflected in the books of Satyam) to keep the operations going by resorting to pledging all the promoter shares and raising funds from known sources by giving all kinds of assurances (statement enclosed only to the members of the board).

Significant dividend payments, acquisitions, capital expenditure to provide for growth did not help matters. Every attempt was made to keep the wheel moving and to ensure prompt payment of salaries to the associates. The last straw was the selling of most of the pledged shares by the lenders on account of margin triggers.

3. That neither me nor the managing director took even one rupee/dollar from the company and have not benefited in financial terms on account of the inflated results.

4. None of the board members, past or present, had any knowledge of the situation in which the company is placed.

Even business leaders and senior executives in the company, such as, Ram Mynampati, Subu D, T R Anand, Keshab Panda, Virender Agarwal, A S Murthy, Hari T, S V Krishnan, Vijay Prasad, Manish Mehta, Murli V, Shriram Papani, Kiran Kavale, Joe Lagioia, Ravindra Penumetsa, Jayaraman and Prabhakar Gupta are unaware of the real situation as against the books of accounts. None of my or managing directors' immediate or extended family members has any idea about these issues.

Having put these facts before you, I leave it to the wisdom of the board to take the matters forward. However, I am also taking the liberty to recommend the following steps:

1. A task force has been formed in the last few days to address the situation arising out of the failed Maytas acquisition attempt.

This consists of some of the most accomplished leaders of Satyam: Subu D, T.R. Anand, Keshab Panda and Virendra Agarwal, representing business functions, and A S Murthy, Hari T and Murali V representing support functions.

I suggest that Ram Mynampati be made the chairman of this Task Force to immediately address some of the operational matters on hand. Ram can also act as an interim CEO reporting to the board.

2. Merrill Lynch can be...

Comments

» cause of fraud

Posted by Abhishek kumar on 2009-06-19 23:08:48.018835+05:30
the fraud done by ramalingaraju give us a idea of connection between economics and politics. these two fields r different in seeing but some how they r related.Since without political help this fraud is immpossible.it also show weakness ofour bankig system. goverment have to tke total responsibity of it and form hard law so it will not repeat in any other company.

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» satyam auditing

Posted by vishnu on 2009-05-01 14:06:48.124319+05:30
satyam chairman ramalingaraju had shown an iproper balance sheet 2 pwc since 2002 and it is paying taxes to the govt of india from past 7 years on their fictious profits . then what had been doing by the IT Dept in that period . was not it enquired about their profits and what about the invoices had shown by the satyam.was it in hibernation stage at that time.is there any relationship between big fishes in govt of india and satyam fraud

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» what about other company , they also nt innocent, wait n watch

Posted by noopur berge on 2009-03-27 18:00:52.808054+05:30
india's biggest fraund can't be done by a single person, lots of higher authority people are engaged in this fraud, being a fourth largest company it did fraund of 7136 cor . nw there is a ques for top 3 company !!!

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» scam is shame

Posted by tanu on 2009-02-09 17:06:20.97106+05:30
i think Raju should not be given priviliged facilities at jail as the crime committed by him is similar to the terrorist attack, an attack on the interest of the stakeholders.

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» FUTURE

Posted by prasanth on 2009-01-28 15:39:27.744936+05:30
my God such a lot money..the government should take steps to bring out all the black money in india and show the many hidden faces of black sheep like Raju

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» its a matter of great pain for IT sector people

Posted by maroof jafri on 2009-01-28 11:18:31.603927+05:30
its really a matter of great pain and sorrow for the people IT sector.As we (indian) was the top on IT sevices but tis fraud brings the great shame for this sector.It will also effect the new incoming project to indian company.New youths who are opting there career in this sector are in great shock.May GOD bring the situation to peace and save the young IT professional from Going to be unemployed

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» Issue

Posted by Manoj Desai on 2009-01-23 18:51:59.995344+05:30
its really a bad time for auditors. Shame on audit teams who not taken care for the responsibility of wrk entrusted to them..

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» Re: Satyam Issue

Posted by prashant on 2009-01-12 14:03:55.019216+05:30
The shareholders may not trust the audited balance sheet of other Companies as well.Tha Board of Directors may have horrible time explaining the details to shareholders at next AGM.and this may not be restricted only to Satyam Group.

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» SHAME SHAME

Posted by naresh on 2009-01-14 16:41:31.94127+05:30
'satyam' means promise in sanskrit or tamil..Mr.Raju has bought disregard to entire IT Faternity and Satyam should be banned from all operations and government should take over the company and run the operations if deemed fit

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» condemn

Posted by jaspreet on 2009-01-09 08:05:51.330857+05:30
M also really apreciate wid Mr Raju. As he condemn of what he had done wrong. I think in dis materialistic world no one can dare openly like Raju after commiting such kind of fraud. May god rescue him from present situation and fortify him so dat he can escape of dese bad events n do his work wid loyality after dis time>>>>>

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» are you crazy?

Posted by Sanjay on 2009-05-20 17:00:08.777879+05:30
jaspreet,have u gone bonkers ? this letter of raju is only for bluffing the law so that he can get his sympathy plea forward. plz grow up and experience the real world ...cheers

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» ETHICAL BUSINESS

Posted by MANJU on 2009-01-08 23:34:04.614464+05:30
THIS IS A CLEAR LEARNING EXAMPLE HOW ETHICS IN BUSINESS IS VERY IMPORTANT TO HOLD THE SUCESS OF A COMPANY. NEVER THE LATE APPRICIATE THE RAJU FOR HOLDING UP THE TRUTH AND PROVIDING AN OPPURTUNITY FOR EMPLOYEES TO SAVE THE COMPANY. MOST IMPORTANT THING AT THIS POINT IS TO MEET THE CUSTOMER DEAD LINES AND KEEP EMPLOYEE MOTIVATIONS HIGH. THIS IS ALSO A CHALLENGING OPPURTUNITY FOR EVERY EMPLOYEE TO BRING BACK ONE OF THE LARGEST COMPANY TO EARLIER GLORY.

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