The chairman of Indian firm Satyam Computer Services Ltd. resigned today admitting the company falsely inflated profits for several years. Shares of the company dropped nearly 90 percent.
On Wednesday, Ramalinga Raju admitted that about $1 billion or 94 percent of Satyam's cash registered on the books was falsified, in a filing to the Bombay stock exchange, Reuters reported Wednesday.
Raju said that nobody else in the company's board knew the company's real financial situation and said he hadn't benefited from the inflated results.
Shares of Satyam Computer were trading down 89.52 percent to 0.96 cents a share in the New York Stock Exchange during Pre-Market operations.