Today, Ramalinga Raju, the founder and Chairman of Satyam Computers resigned from the Satyam board.

In a letter written by Raju to the board, he gave details of the balance sheet. It was astonishing to note that the sheet had inflated cash balances of Rs 5040 crore and accrued interest of Rs 376 crore, which in fact is non-existent. Furthermore, Rs 1230 crore was arranged to Satyam and has not been reflected in the books.

While Merrill Lynch can be entrusted to explore possibilities of merger with some other technology company, Ram Myanpati will act as Interim CEO.

It has been revealed that in the Q2, sales numbers were inflated to Rs 2700 crore vs Rs 2112 crore actual numbers. Surprisingly, no knowledge was held by any board members of the real situation of the books, as informed by Mr. Raju.

When the news related to resignation of Satyam chairman was let out of the bag, shares in Satyam Computer shed all gains to turn negative and ended the day at Rs 41, down by more than 75 percent.

Prabhudas Leeladhar analyst Apurva Shah said, "He is not to be blamed alone... the responsibility lies with the entire board. It was a unanimous decision and this board is in no place to decide on the issue."