The big Satyam scam

It is the biggest corporate scandal that India has seen. One that threatens future foreign investment flows into the country and casts a cloud over the Indian technology space as a whole. Satyam Computers Chairman B Ramalinga Raju quit after admitting that the company's profits had been inflated for several years. In his letter to the board, Raju admitted that the IT major's balance sheet had inflated cash and bank balance of Rs 5,040 crore.

Raju, however, took all the blame for cooking the books and said that other board members were unaware of the financial irregularities. This dramatic disclosure took the Satyam stock down a whopping 77% — it closed at Rs 40. With Satyam went the broader market as well. The Nifty lost 6% while the Sensex closed down 7%.

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