Sunday, January 11, 2009

Third person arrested in Satyam scandal - CNN.com

Third person arrested in Satyam scandal - CNN.com


NEW DELHI, India (CNN) -- The chief financial officer of India's Satyam Computer Services Ltd. was arrested Saturday, the third person taken into custody in a scandal that began when the company's chairman admitted inflating profits with "fictitious" assets and non-existent cash...

Satyam, India's fourth-largest software-services provider, serves almost 700 companies, including 185 Fortune 500 companies, and generates more than half its revenues from the United States. It employs some 53,000 people and operates in 65 countries.

B. Ramalinga Raju resigned Wednesday and confessed to padding company balance sheets. The practice began several years ago to close "a marginal gap" between actual operating profit and one reflected in the company's accounting books, he said, but continued for several years.

"It was like riding a tiger, not knowing how to get off without being eaten," B. Ramalinga Raju said in a letter to the company's board of directors.

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