CII expresses shock over Ramalinga Raju’’s resignation

January 7th, 2009 - 4:40 pm ICT by ANI  

Ramalinga Raju

New Delhi, Jan.7 (ANI): 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)

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