Satyam Chief Ramalinga Raju Resigns

7 01 2009

Chairman of Satyam Computer Ramalinga Raju has resigned from the company’s board. In a shocking disclosure, he has revealed some financial irregularities in the company, including an inflated cash balance of Rs 5,040 crore.

In reaction to Raju’s revelations, the stock was hammered by investors and it is down over 60 per cent.

Raju said that he feared takeover due to poor finance performance. Coming clean on financial irregularities, he said that the company had Rs 1,230 crore worth of understated liability as of September 30.

Raju also revealed that he tried to fill fictitious assets with Maytas deal.

Source: NDTV

Here are some excerpts from his letter to SEBI:

“The Balance Sheet carries as of September 30, 2008

a. Inflated (non-existent) cash and bank balances of 50.40 billion rupees ($1.04 billion) (as against 53.61 billion reflected in the books).

b. An accrued interest of 3.76 billion rupees which is non-existent.

c. An understated liability of 12.30 billion rupees on account of funds arranged by me.

d. An overstated debtors position of 4.90 billion rupees (as against 26.51 billion reflected in the books)”

“The aborted Maytas acquisition deal was the last attempt to fill the fictitious assets with real ones. Maytas’ investors were convinced that this is a good divestment opportunity and a strategic fit. Once Satyam’s problem was solved, it was hoped that Maytas’ payments can be delayed. But that was not to be. “

“neither me, nor the Managing Director took even one rupee/dollar from the company and have not benefitted in financial terms on account of the inflated results.”

Read the complete letter here:  Reuters

Here is the complete timeline of events.

As of this moment Satyam Shares crashed 71% to Rs 51 on the BSE.

 

 





How Barkha Dutt Helped the Terrorists

8 12 2008

Barkha Dutt who some say was India’s answer to Christiane Amanpour  (although Christiane is way ahead) sadly lost her composure and along with it a sense of ethical journalism. A lot of blogs out there have criticized her for her shoddy reporting. But below is an extract of the India’s Chief Admiral’s public assault on NDTV and more specifically Barkha Dutt. Read on…

“Navy chief Admiral Sureesh Mehta on Tuesday mounted a frontal assault on the sections of the electronic media for its reckless coverage of the Mumbai attacks. In his annual press conference ahead of Navy Day on December 4, Mehta said the manner in which TV channels reported India’s worst terror strike had “tactical implications” and might have worked to the advantage of the terrorists.

“When operations were taking place, the channels were reporting that commandos were being airdropped. The terrorists were in live contact with their masters, who were keeping them informed. Such minute-by-minute coverage can be detrimental to conduct of operations. We are disturbed by such reporting.” Mehta picked holes in the coverage of the 1999 Kargil war to prove that channels have traditionally not exercised restraint in their coverage of events that have a bearing on national security.

Singling out a lady journalist from the English news channel NDTV, Mehta, who is also the chairman of chiefs of staff committee, said irresponsible coverage of the war had compromised the safety of troops and led to the death of three soldiers. He said this particular journalist had cajoled an army colonel to demonstrate the firing of an artillery gun to capture a great shot on the camera. He said the colonel was later dismissed from service.

Prannoy Roy, president, NDTV, told HT: “What he said is completely untrue and malicious. We have asked for a retraction and a public apology as this amounts to defamation.” New Delhi Television is owned by Radhika Roy who is the sister of CPI-M leader and pro-China voice Brinda Karat. CPI-M party was the only political party that had openly supported China in the 1962 war with India ansd till date has not issued an apology.

General V.P. Malik (retd), who was the army chief during the Kargil war, in his memoirs Kargil — From Surprise to Victory, had written in his book that after the war was over, he mentioned to Barkha Dutt that she had let out classified information in her “professional enthusiasm” by pointing out that the army’s next objective would be Tiger Hill.”

Source: http://www.newspostindia.com/report-61105

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Wikipedia has a controversy section of her which details her exploits during her coverage of Kargil:

http://en.wikipedia.org/wiki/Barkha_Dutt#Controversies

Here is another take on her bad reporting:

http://openspace.org.in/node/811

Please let us get this woman off the air!!