Ram Mynampati To Be The New (interim) CEO of Satyam, Raju May Get 7 Years Jail Term.

08 Jan

Posted by Shyam as Market News

After B Ramalinga Raju of Satyam Computers resigned today amidst the corporate fiasco revelations, Ram Mynampati took the charge of being the interim CEO of Satyam, henceforth till the dust settles down. He tried to restore the awry of the investor confidence by quoting “We will now be a better company and that we shall soon be a successful case study of how organizations have turned over a new leaf”. The investors confidence is drastically down at the current situation which became very clear after satyam stocks were hammered badly and it closed almost 77% down, from the previous close.

Satyam ADR has been halted to trade in NYSE today when trading started. SEBI has also ordered an interim probe into these developments. Meanwhile after this Satyam crisis the 53,000 employees of Satyam are worried a lot about their uncertain future. Now the main question which comes to the mind is “What next with B Ramalinga Raju”? Well some of the corporate law practitioners are of the view that B Ramalinga Raju may get a 7 year jail term.

As per the balance sheet of Satyam Computers, the quarterly results were highly inflated. As per his resignation letter Satyam” reported a revenue of Rs 2700 crore and a margin of Rs 649 crores as against the actual revenues of Rs 2112 crores and actual operating margin of Rs 61 crore”. The operating margins were manipulated almost 10 times. The huge difference between the operating margins is in front of everyone now. As per the rule book he will face charges for misrepresentation of accounts, breach of trust, and misappropriating funds. This will have a significant impact on Satyam clients, both old and new as well as all the stake holders.