Satyam chairman Ramalinga Raju resigns, admits financial wrong-doing
7 Jan 2009, 1456 Hrs

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Bangalore, Jan 7 The Chairman of Satyam Computers, B Ramalinga Raju, today resigned after admitting to major financial wrong-doings.

The resignation of Ramalinga Raju has come as a shock to the board. In his letter to the board, he wrote that company has accounted exaggerated revenues over the years.

Raju, in his resignation letter, admitted to have inflated cash and bank balances of Rs 5,040 crore as against Rs 5,361 crore reflected in the books of accounts.

Shares of the company plunged by over 40 per cent soon after the resignations.

Bombay Stock Exchange Sensex breached support of 10,000 mark. At 12:30 pm, Sensex was at 9700, down over 600 points.

National Stock Exchange's Nifty was at 2958, down 154 points.

Satyam Computers (-61.42%), Jaiprakash Associates (-13.24%), Reliance Communications (-10.91%), DLF (-10.29%) and Reliance Infrastructure (-8.11%) were the major Sensex losers.

Tata Steel (1.32%), Infosys Technologies (0.21%) and Maruti Suzuki (0.20%) were the only gainers.

Market breadth was negative on the BSE with 1670 losers and 541 advances.

Satyam is a leading global business and information technology company, delivering consulting, systems integration, and outsourcing solutions to clients in over 20 industries. (ANI)