WSJ | Corporate scandal shakes India
Chairman of outsourcing giant resigns, saying he concocted financial results
The chairman of one of India’s largest technology companies said he concocted key financial results, including a fictitious cash balance of more than $1 billion, sending shock waves across India and likely prompting investors to question other corporate results as the once-hot economy slows.
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FT.com | $1bn fraud at India IT group
The head of one of India’s biggest outsourcing groups has confessed to fixing the company’s books in a $1bn fraud described as the country’s “Enron”
B. Ramalinga Raju, chairman and chief executive of Satyam Computer Services, resigned on Wednesday after admitting he had manipulated the accounts for “several” years to show hugely inflated profits and fictitious assets. The fraud is India’s biggest corporate scandal since the early 1990s and its first high-profile casualty since the start of the global financial crisis.
IHT | Satyam chief resigns over inflated assets
Satyam Computer Services, a leading Indian outsourcing company, hugely inflated earnings and assets for years, the chairman and co-founder said Wednesday, roiling stock markets in India and throwing a pall over the country’s foremost business sector.
The chairman, Ramalinga Raju, 54, tendered his resignation after revealing that he had regularly falsified Satyam’s accounts as the company expanded from a handful of employees into a back-office giant with 53,000 workers in 66 countries.
Forbes.com | Satyam revelation rocks Indian markets
Company’s chair resigns, confessing to having falsified the company’s accounts for several years in order to forestall a takeover
B. Ramalinga Raju, chairman of the scandal-plagued Indian outsourcing specialist Satyam Computer Services, has resigned, confessing that he had conspired to cook the firm’s books for several years.
BBC | India IT boss quits over scandal
Mr Raju said he would subject himself to the laws of the land
The boss of Satyam, India’s fourth-biggest software firm, has quit after revealing false accounts including some $1bn (£663m) in fictitious reserves.
Chairman Ramalinga Raju apologised and said ”the gap in the balance sheet has arisen purely on account of inflated profits” during several years.
He said he was subjecting himself to the laws of the land and would ”face the consequences”.
The Straits Times | IT boss quits over scandal
India reeled in shock on Wednesday as the head of one of its biggest software services company quit after admitting that its books had been cooked for the past several years to show larger profits
The Times | B. Ramalinga Raju admits £1bn fraud and quits
The chairman of one of India’s largest IT outsourcers has resigned after confessing to a £1 billion fraud, in a scandal that has been dubbed the country’s Enron.
B. Ramalinga Raju, 54, chairman and founder of Satyam, said that he had wildly inflated the company’s profitability for years. The deception, which went undetected until he revealed it, resulted in the presence of 70 billion rupees (£950 million) of “nonexistent” cash on the group’s books.