CII expresses shock over Ramalinga Raju's resignation
7 Jan 2009, 1558 Hrs

Add comment          Mail          Print          Write to Editor

New Delhi, Jan.7 The Confederation of Indian Industry (CII) today expressed its shock and disappointment at the disclosures made by B. Ramalinga Raju on the financial position and financial statements of Satyam Computer Services.

In a statement it said that there is a need to immediately examine the loopholes in regulation, accounting, audit and governance that allowed such lapses to occur and address them with urgency.

"While the occurrence of such events in a major company is a matter of deep regret, CII believes it would be inappropriate for this to be the basis of questioning of general governance standards in other companies," the statement said.

"Corporate India must however reflect on ways to demonstrate its quality of governance and enhance the confidence of stakeholders," it added.

Raju, in his resignation letter, admitted to have inflated cash and bank balances of Rs 5,040 crore as against Rs 5,361 crore reflected in the books of accounts.

Shares of the company plunged by over 40 per cent soon after the resignation was announced.

The Bombay Stock Exchange Sensex breached support of 10,000 mark. At 12:30 pm, Sensex was at 9700, down over 600 points.

National Stock Exchange's Nifty was at 2958, down 154 points.

Satyam Computers (-61.42 percent), Jaiprakash Associates (-13.24 percent), Reliance Communications (-10.91 percent), DLF (-10.29 percent) and Reliance Infrastructure (-8.11 percent) were the major Sensex losers.

Tata Steel (1.32 percent), Infosys Technologies (0.21 percent) and Maruti Suzuki (0.20 percent) were the only gainers.

Market breadth was negative on the BSE with 1670 losers and 541 advances.

Satyam is a leading global business and information technology company, delivering consulting, systems integration, and outsourcing solutions to clients in over 20 industries. (ANI)

Related Latest

Over 60 percent turnout in Assembly by-polls; 53 percent in Firozabad LS poll Cricket enthusiasts upset over ban on playing cricket at Chennai's Marina beach Oprah 'sets deadline' over talk show Sexual noises broadcast over London station speakers! Race row erupts over British National Party-backed film 'Gossip Girl' comes under fire over threesome plot 'Optical biopsy' could take over invasive biopsies for breast cancer detection Evert breaks her silence over break up with Greg Norman Flintoff expresses joy over new Lancashire deal US has 'low expectations' from Burma over speedy democratic reforms in country

Related Latest

Two police officers embark on bicycle rally to spread message of unity Madhu Koda to remain in hospital for another day Middle order has not performed consistently in the series, says Dhoni TMC-CPM workers clash, Maoists kill three ahead of CM's visit in Midnapore Fake currency worth Rs 900,000 seized in Punjab Allahabad hosts Ganga Water Rally to accelerate tourism industry in Uttar Pradesh Over 60 percent turnout in Assembly by-polls; 53 percent in Firozabad LS poll Madhu Koda's associate sent to ten days in Enforcement Directorate custody Congress-NCP alliance forms government in Maharashtra for the second time Gold lovers in Chennai see gold as a promising investment

• Two police officers embark on bicycle rally to spread message of unity
• Madhu Koda to remain in hospital for another day
• Over 60 percent turnout in Assembly by-polls; 53 percent in Firozabad LS poll
• Middle order has not performed consistently in the series, says Dhoni
• TMC-CPM workers clash, Maoists kill three ahead of CM's visit in Midnapore

• बीकानेर महापौर चुनावः एक विश्लेषण
• Deepawali: The Festival Of Lights
• Nine tips for nine nights
• need new prevention tech for HIV, other STIs and UP
• "Good health is India's basic need": Easier said than done Mr Prime Minister!