The chairman of Indian IT outsourcerSatyam Computer Serviceshas admitted
that he hasfixed the company's books for several
years.
The revelation came in a letter to the company, which it
received today.
B Ramalinga Raju resigned and confessed to inflating the
company's financial figures.
"We are obviously shocked by the contents of the letter," said
Satyam Interim CEO Ram Mynampati. "The senior leaders of Satyam
stand united in their commitment to customers, associates,
suppliers and all shareholders. We have gathered together at
Hyderabad to strategise the way forward in light of this startling
revelation"
Satyam said it will try to protect the interests of its
shareholders and the careers and security of its approximately
53,000 associates, and meet all its commitments to its customers
and suppliers.
"We recognize that our associates have committed a significant
part of their careers to build Satyam. We will pursue all avenues
to secure their future in the company," added Mynampati.
The financial stability of an outsourcing services supplier is
an important consideration for businesses when looking for
partners. "This is one point of a long check list of things," said
Robert Morgan, consultant at Hamilton Bailey,
He said the "enormous pressure" on CEOs at Indian outsourcing
suppliers to perform risks "this type of creative accounting."
See also:
Satyam message to stakeholders via YouTube following fraud
scandal