Ramalinga Raju, Chairman of Satyam resigned from the Satyam board today, reports CNBC-TV18. He wrote a letter to the Satyam board admitting that the IT major’s balance sheet has an inflated cash and bank balance of Rs 5,040 crore.

Appalled at the recent development market experts react and question the integrity of the auditors of the company.

Shankar Sharma of First Global said Ramalinga Raju’s confession to the fraud in Satyam’s books would have a huge impact on FII and FDI sentiment in India. “An emerging market has to be more careful. We expects the stock to go down to Rs 10-30 levels. We think that trading must not be stopped and investors must be given an opportunity to exit the stock.”

SP Tulisan of sptulsian.com feels the auditors of Satyam balance sheet could not be given a clean chit either.”Bankers and auditors should be held equally responsible.” There has been a clubbing of personal affairs with the company affairs, he said.

Nirmal Jain of India Infoline said was shocked by Ramalinga Raju’s confession on Satyam and hopes it gets over as soon as possible. He is unconcerned about the impact of the Satyam scam on the overall FII, FDI confidence. He said global scams have not affected their markets.

Sandeep Parekh from IIM believes Ramalinga Raju may have to face criminal prosecution of upto 10 years and penalty of Rs 25 crore. There will be several criminal action that will be followed; may last for many years, he said. “Besided stock prices the consequences will last for a long time.”

Parekh said that he had been listening to many other issues and so is not really shocked with Satyam. He said that somebody would have to acquire the company for operations to carry on with its current form.

source: moneycontrol

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