Ramalinga Raju Original Letter

Here is the original letter written by Raju,Satyam;s ex fraud chief, to SEBI and others, few months ago....


From B Ramalinga Raju
Chairman, Satyam Computer Servcies Ltd

Dear Board Members,

It is with deep regret, and tremendous burden that I am carrying on my conscience, that I would like to bring the following facts to your notice:

1. The balance sheet carries as of September 30, 2008

a) Inflated (non-existent) cash and bank balance of Rs 5,040 crore (as against Rs 5361 crore refglected in the books)

b) An accured interest of Rs 376 crore which is non-existent

c) An understated liability of Rs 1,230 crore on account of funds arranged by me

d) An over stated debtor position of Rs 490 crore (as against Rs 2651 reflected in the books)

2. For the September quarter (Q2) we reported a revenue of Rs 2,700 crore and an operating margin of Rs 649 crore (24 per cent of revenues) as against the actual revenues of Rs 2,112 crore and an actual operating margin of Rs 61 crore (3 per cent of revenue). This has resulted in artificial cash and bank balances going up by Rs 588 crore in Q2 alone.

The gap in the balance sheet has arisen purely on account of inflated profits over a period of last several years (limited only to Satyam standalone, books of subsidiaries reflecting true performance). What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years. It has attained unmanageable proportions as the size of the company operations grew significantly (annualized revenue run rate of Rs 11,276 crore in the September quarter, 2008 and official reserves of Rs 8.392 crore). The differential in the real profits and the one reflected in the books was further accentuated by the fact that the company had to carry additional resources and assets to justify higher level of operations – thereby significantly increasing the costs.

Every attempt made to eliminate the gap failed. As the promoters held a small percentage of equity, the concern was the poor performance would result in a takeover, thereby exposing the gap. It was like riding a tiger, not knowing how to get off without being eaten.

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. What followed in the last several days is common knowledge.


I would like the board to know:

1. That neither myself, not 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 know 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 share 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 benefitted 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, Kesab Panda, Virender Agarwal, A S Murthy, Hari T, S V Krishnan, Vijay Prasad, Manish Mehta, Murali V, Sriram Papani, Kiran Kavale, Joe Lagioia. Ravindra Penu Metsa, 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 ideas about these issues.
Having put the 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 Virender Aggarwal, 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 entrusted with the task of quickly exploring some merger opportunities.

3) You may have a ‘restatement of accounts’ prepared by auditors in light of the facts that I have placed before you.

I have promoted and have been associated with Satyam for well over twenty years now. I have seen it grow from few people to 53,000 people, with 185 Fortune 500 companies as customers and operations in 66 countries. Satyam has an excellent leadership and competency base at all levels. I sincerely apologize to all Satyamites and stakeholders who have made Satyam a special organization, for the current situation. I am confident they will stand by the company in this hour of crisis.
in light of the above, I fervently appeal to the board to hold together to take some important steps. Mt T R Prasad is well placed to mobalize support from the government at this crucial time. With the hope that members of the Task Force and the financila advisor, Merrill Lynch (now Bank of America) will stand by the company at this crucial hour, I am marking copies of this statement to them as well.

Under the circumustances, I am tendering my resignation as the chairman of Satyam and shall continue in this position only till such time the current board is expanded. My contribution is just to ensure enhancement of the board over the next several days or as early as possible.

I am now prepared to subject myself to the laws of the land and fact the consequences thereof.

(B. Ramalinga Raju)

Copied marked to:
1) SEBI Chairman
2) Stock Exchanges

3 crores Mobile Phones To Become Useless?

Is it true? Well,it may be. Every 8 mobile phones out of 100 in our country do not have IMEI number.So in this manner, about 3 crores of mobile phones will not work till the end of this month, if sources are to be believed. IMEI(International Mobile Equipment Identification) number of a phone helps in tracing the location of the phone at time of call. Most of the phones in India which do not have IMEI number either have come from China or they are pirated. So security agencies of country consider these mobile phones a major concern for the security of the country.So these phones may stop working till the end of the month.
So, does your phone has IMEI number? Check it now. Dial *#06# from your phone and get your IMEI number now.........

Bangladesh tour of Pakistan Postponed

Pakistan's tour of Bangladesh, due to start next week, has been postponed on the advice of the Bangladesh government. Officials are hopeful that the tour will be held soon and are working on a revised security plan in consultation with the ICC.

Last few months were of major blow for Pakistan cricket...

* March 2008 - Australia postpone tour of Pakistan, slated for end-March, over security concerns following Benazir Bhutto's assasination
* August 2008 - Five of eight ICC members choose not to send teams to Pakistan for September's Champions Trophy. The tournament is postponed till October 2009.
* October 2008 - West Indies call off a proposed tour of Pakistan scheduled for November, a week after their women's team cancelled the Pakistan leg of their Asian tour.
* November 2008 - England cut short seven-match ODI series in India after Mumbai terrorist strikes. They return for the two-Test series in December.
* December 2008 - BCCI calls off India's scheduled tour of Pakistan in 2009.
* February 2009 - ICC decides not to stage the 2009 Champions Trophy in Pakistan after some of the members expressed reservations about touring the country.

Lahore Attacks cast shadow on IPL

Due to recent attacks on Srilankan players in Lahore,players in NewZealand are queasy
over touring India for next month's IPL, with eight NewZealand players expected to feature in the tournament which runs from April 10-May 24.
New Zealand allrounder Jacob Oram said the events in Pakistan have only worsened the state. "Definitely after what happened in Mumbai late last year, and what happened last night, it keeps raising questions," said Oram, who is part of the Chennai Super Kings squad in the IPL along with Stephen Fleming.

Along with NewZealand, their are waves of anxiety in England, with English coach warns player against IPl."The traffic is often so bad in the big [Indian] cities where a lot of the cricket is played that the coach can move along only slowly at times, which turns it into a sitting duck for terrorists," he wrote in his Guardian column. "There's nothing stopping a tuk-tuk pulling up alongside and detonating a bomb."

So with all these happenings, what is going to be the fate of IPl? The flumboyant tournament which created a frenzy last year, is under dark waters of terror this year..

Lok Sabha Polls costlier than US Prez Election

According to a survey conducted by CMS(Centre for Media Studies), in this LS election, a staggering amount of Rs. 10,000 crores is on stake. This amount is larger than the cost incurred in combined campaigning of Barack Obama and all others candidates in last US presedential election. It does not include the cost of helding assembly polls in states like Andhra Pradesh and Orissa. The estimated Rs. 10,000 crores includes Rs. 2,500 crores as "unofficial money" or the cash to be paid to voters by candidates. The amount is almost double of the cost incurred in last Lok Sabha election.

Sachin: Another Indian to go "Waxy"

Sachin Tendulkar: The little master, The master blaster, The God of Indian cricket, there are many names by which this little cricket prodigy is called in our country.But not only India, the whole world have admired him as one of the best player the game of cricket ever had.There are very less number of records of this game which have not been touched by him till now.But he is admired not as a cricketer only. His simple persona attracts even them who have no connection with cricket. Very few people posses that kind of simplicity and politeness that he owns,after having the whole world under their feet. Now Sachin is going to add one more golden moment in his eventful and fascinating life. He is the next indian after Amitabh Bachchan, Shahrukh Khan, Aishwarya Rai Bachchan, Salman Khan to have a wax statue in Madame Tussauds.Tendulkar becomes the third cricketer after Brian Lara and Shane Warne to be converted into a wax statue.

“We are delighted to confirm our next sporting superstar is going to be Sachin Tendulkar; his achievements on the cricket pitch are phenomenal and he is one of the biggest names in international sport,” said the museum authorities on Friday.

Tendulkar has already had a seating with the museum, in London, where they took 200 precise measurements of his face and body, giving his fans further reason to wax lyrical over his genius. The wax figure is expected to take three months to complete. They are to spend £150,000 ($USD 215,000) on creating his waxwork.

One more indian going to write an immortal story of greatness...

Jaago Re : A one billion voting campaign

Once again, elections are on head. Once again , the same process which many of us may not like. The Rikshaw Walas , with their speakers yelling in support of a political party, elucidating the tasks they have done and their rivals have failed to accomplish, the politicians organising rallies and campaigns to lure the people, in the pursuit of votebanks, and the people lambasting these beggers of votes.This all will happen this time also, with the same intensity, but are you going to change? "Sab ke sab ek jaise hain, vote dene ka koi fayda nahi hai, main vote dene nahi jaunga" . This is the sentence most of us say to others in every election and do not cast out vote. Are we doing right by not exercising our fundamental rights.In this way, we are not going to help our country. We can not change these politicians, but we can make an impression by making amendments in ourselves. Even a single vote can make a difference. Do you know, there is an election in our country that was won by a single vote. So getup, go and make an impression by casting your vote.
Register yourself to www.jaagore.comJust fill yp the form, take a printout, and submit it to your area's constituency office. You will get all informattion, address of your area's office , and other things on the website. So just take your first tiny step towards a giant expedition...