Satyam Computers CEO Quit over Billion Dollar Fraud – Jan 8,2009
This is perhaps the biggest scandal in the history of India ‘sBooming outsourcing Industry and the scandal in a company considered as one of the iconic names in India, has send shock waves in the already weakened Indian stock market .
The CEO of satyam computers has since admitted the wrong doing by inflating the profits over a period over seven years (??!!)leaving doubts over the audit,system and control of the firm.
the excerpts.
“India’s biggest corporate scandal in memory threatens future foreign investment flows into Asia’s third-largest economy and casts a cloud over growth in its once-booming outsourcing sector.
Ramalinga Raju, founder and chairman of Satyam, India’s fourth-largest outsourcer, said in a statement the company’s profits had been inflated over recent years “
“he company showed inflated cash and bank balances of 50.4 billion rupees (1.03 billion US dollars) in its September-end balance sheet.
Satyam shares tumbled 70.41 percent, or 126.1 rupees, to 53 rupees on the Mumbai Stock Exchange Wednesday afternoon, as investors dumped the company.”
It may be recalled that the World bank had black listed the company last year over “improper benefits” paid to staff.
Source – wwww.xomba.com