India’s Satyam Chairman Ramalinga Raju resigned taking the responsibility of financial scandal of inflating earnings with cash balance of more than $1 billion. The WSJ article writes that the scandal being compared to Enron of India.
Satyam is India’s fourth largest software exporter by revenue and does software services for Fortune 500 companies like GE, GM, Caterpillar, Cisco and others.
Satyam’s chairman B. Ramalinga Raju submitted his resignation to SEBI (Stock Exchange Board of India) chairman – Here is his resignation fax in PDF format
The letter says –
“The aborted Maytas acquisition deal was the last attempt to fill the fictious assets with the real assets”
In his closing statement he wrote –
“I am now prepared to subject myself to the laws of the land and face consequences thereof.”
This I believe will have adverse affect on Indian IT industry and a more scrutiny from SEBI on all of their financial books.