News from India.
The chairman of Satyam Computer Services, one of the biggest IT outsourcing companies of that vast country wrote a letter to his board, offering his resignation. And confessing he was cooking the books for years and inflating margins in order to let the world believe his company was in excellent condition. Now India has his first scam and shares of the company – listed in Mumbai and New York – lost almost 80% of their value. The SENSEX declined with more than 7%.
The interesting thing is that the game started when the global financial crisis struck this planet and lenders started to sell shares of Satyam pledged by the chairman as collateral.
This was done in order to raise money which was injected into the company to cover costs in an attempt to hide away the fictitious cash reserves as a consequence of the inflated margins.
It was like riding a tiger, not knowing when to get off without being eaten, Mr Raju said in his letter.
PricewaterhouseCoopers was Satyam’s auditor.
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The chairman of Satyam Computer Services, one of the biggest IT outsourcing companies of that vast country wrote a letter to his board, offering his resignation. And confessing he was cooking the books for years and inflating margins in order to let the world believe his company was in excellent condition. Now India has his first scam and shares of the company – listed in Mumbai and New York – lost almost 80% of their value. The SENSEX declined with more than 7%.
The interesting thing is that the game started when the global financial crisis struck this planet and lenders started to sell shares of Satyam pledged by the chairman as collateral.
This was done in order to raise money which was injected into the company to cover costs in an attempt to hide away the fictitious cash reserves as a consequence of the inflated margins.
It was like riding a tiger, not knowing when to get off without being eaten, Mr Raju said in his letter.
PricewaterhouseCoopers was Satyam’s auditor.
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