Latest Expert Exchange Queries

Make your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: list of goods taxed at 4% :: TAX RATES - GOODS TAXABLE @ 4% :: empanelment :: ACCOUNTING STANDARD :: ACCOUNTING STANDARDS :: VAT RATES :: VAT Audit :: ARTICLES ON INPUT TAX CREDIT IN VAT :: due date for vat payment :: form 3cd :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: articles on VAT and GST in India :: cpt :: Central Excise rule to resale the machines to a new company :: TDS
 
 
« News Headlines »
 Income-tax (21st Amendment) Rules, 2017
 Deadline for filing income tax return nears; here are 10 common mistakes that you must avoid
 All you need to know about form 26AS
 How to file income tax return?
 7 changes that affect income tax return filing this year
 How To File Income Tax Return (ITR) Online For FY2016-17? Last Date July 31
 Last date for filing income tax return approaches: What is Form 26AS? How it can help you claim refunds
 Income Tax department to launch mobile app to make life easy for taxpayers
 6 things to remember while filing your income tax return
 Want to save on tax? Here are deductions you can use while filing ITR
 July 31 Is Last Date For Filing Tax Return. Why Form 26AS Has To Be Checked

Raju was riding a toothless tiger
April, 14th 2009

In the January 7 letter in which he confessed that Satyam Computer Services account books were a work of fiction, B Ramalinga Raju wrote that carrying on with the deceit was like riding a tiger, not knowing how to get off without being eaten.

Those who knew the Satyam founder well said he had mounted the beast when it was just a cub. In the early 1990s, a former close associate of Mr Raju was stunned by a tax demand for selling shares of Satyam that he purportedly held.

I was flabbergasted because I didnt own a single share in the company, he said. A few casual inquiries later it became obvious to him that several of his acquaintances were in the same positionbeing asked to pay tax for shares they didnt own or sell. It became pretty clear to me then that Satyam shares were being bought and sold benami. Knowing Mr Raju as well as I did, I saw his fingerprints all over the operation, he added.

Son of an affluent grape farmer, Mr Raju ran textile and construction firms before he converted his hobby, software, into a business. Satyam was established in 1987 and it went public in 1991. The same year, Satyam became the first Indian company to provide offshore services to a client through a satellite connection. In the mid-90s, Mr Raju saw a big opportunity in providing information through IT networks.

Satyam Infoway (later renamed Sify), was born in 1995. At the turn of the century, Mr Raju was riding a full-grown tiger. He was being lionised in his home state Andhra Pradesh and was even seated alongside Bill Clinton when the then US president visited Hyderabad.

The same year provided the first visible signs that he was slipping. Shareholders reacted with outrage after discovering that 8 lakh Satyam shares had been transferred to Ramalinga Rajus brother-in-law Srini Raju at Rs 10 per share while the stock was quoting at over Rs 1,500. Mr Raju got the benefit of doubt and escaped almost unscathed. Two years later, he was booked by the government for a series of alleged financial irregularities but that probe too petered out.

Over the next few years, Satyam made a series of small acquisitions and showed outlandish growth, posting revenues of $2 billion at the end of March 2008. On December 16 that year, Mr Raju proposed that Satyam should buy Maytas construction and real estate firms run by his sons for $1.6 billion. A few days after furious investors had had their say, Mr Raju came up with the tiger metaphor.

After over three months in police and judicial custody, Mr Raju has not deviated from his confession and investigators have yet been unable to establish money was siphoned out of Satyam. Maytas Infra and Maytas Properties have been spared a full investigation and key members of Mr Rajus family suspected of involvement in the fraud remain untouched.
Mr Raju, it seems, was only riding a toothless tiger.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Company Overview

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions