Satyam Fraud.

January 20, 2009

Raju acknowledged his culpability in hiding news that he had inflated the amount of cash on the balance sheet of India’s fourth-largest IT company by nearly $1 billion, incurred a liability of $253 million on funds arranged by him personally, and overstated Satyam’s September 2008 quarterly revenues by 76% and profits by 97%. This was the biggest and ever done fraud in the i.t sector. this will affect the whole i.t industries where most of the outsourcing company has denied due to the fraud of satyam company. After submitting his resignation, Raju ended his letter by apologizing for his inability to close what began as a “marginal gap between operating profits and the one reflected in the books of accounts” but grew unmanageable. Ramalinga raju and his brother rama raju has been arrested and put in police custody for 3 weeks.