The chairman of Indian IT outsourcer Satyam Computer Services has admitted that he has fixed 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."