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| India IT boss quits over scandal | India IT boss quits over scandal |
| (about 1 hour later) | |
| The boss of Satyam, India's fourth-biggest software firm, has resigned after revealing financial irregularities in the firm's accounts. | The boss of Satyam, India's fourth-biggest software firm, has resigned after revealing financial irregularities in the firm's accounts. |
| Chairman Ramalinga Raju apologised and said "the gap in the balance sheet has arisen purely on account of inflated profits" during several years. | Chairman Ramalinga Raju apologised and said "the gap in the balance sheet has arisen purely on account of inflated profits" during several years. |
| He said he was subjecting himself to the laws of the land and would "face the consequences". | He said he was subjecting himself to the laws of the land and would "face the consequences". |
| India's benchmark index fell nearly 7% on the news, as Satyam stock shed 82%. | |
| In a letter to the board of directors, Mr Raju said that neither he nor the managing director took any money from the company and did not benefit in financial terms following the "inflated results". | In a letter to the board of directors, Mr Raju said that neither he nor the managing director took any money from the company and did not benefit in financial terms following the "inflated results". |
| He added that no board member had been aware of the situation the firm was in. | |
| "What started as marginal gap between actual operating profits and the one reflected in the books of accounts continued to grow over the years," said the statement, which was sent to the stock exchange. | |
| Satyam specialises in business software and benefited from the IT outsourcing boom. | |
| 'Fictitious assets' | |
| The BBC's Sanjoy Majumder in Delhi says analysts see this as one of the worst crises to have hit corporate India, at a time when it was hoping to attract foreign investors looking for quick gains in emerging markets. | The BBC's Sanjoy Majumder in Delhi says analysts see this as one of the worst crises to have hit corporate India, at a time when it was hoping to attract foreign investors looking for quick gains in emerging markets. |
| Our correspondent says many fear that the international community will now take a harder look at Indian companies and think twice about placing their money there. | Our correspondent says many fear that the international community will now take a harder look at Indian companies and think twice about placing their money there. |
| Jigar Shah, senior vice-president at Kim Eng Securities, said: "I think there is no fortune for this stock. The case for India is similar to what happened to Enron in the US." | Jigar Shah, senior vice-president at Kim Eng Securities, said: "I think there is no fortune for this stock. The case for India is similar to what happened to Enron in the US." |
| The news comes after a planned acquisition of Maytas Properties failed. | |
| "The aborted Maytas acquisition deal was the last attempt to fill the fictitious assets with real ones," said the letter. | |
| Mr Raju said a task force investigating the failed deal had been set up. He also recommended to the board that Merrill Lynch be entrusted with the talk of "quickly exploring" merger opportunities. |