Bangalore: The head of Indian outsourcing firm Satyam Computer Services resigned on Wednesday, disclosing that profits had been falsely inflated for years and sending its shares tumbling nearly 80%.
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.
Also Read Satyam’s Corporate Governance Practices (PDF)
Ramalinga Raju, founder and chairman of India’s fourth-largest software services exporter, said in a statement that Satyam’s profits had been massively inflated over recent years but no other board member was aware of the financial irregularities.
Meanwhile, the Planning Commission has said the Indian capital market is fully capable of dealing with the problems emerging from this case.