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Outsourcing firm’s head quits over cooked books

Ramalinga Raju visited Toronto four years ago to talk about how Indian outsourcing firm Satyam Computer Services was using Canada to gain access to the huge U.S. market.

Ramalinga Raju visited Toronto four years ago to talk about how Indian outsourcing firm Satyam Computer Services was using Canada to gain access to the huge U.S. market.

Yesterday, the chairman of India’s fourth-lar­gest software ser­vices exporter tendered his resignation, revealing that Satyam’s profits had been massively inflated over the years — that caused the company’s stock price to plummet nearly 80 per cent. Raju claimed about $1 billion US, or 94 per cent, of the cash on the company’s books was “artificial” or “non-existent.”

The biggest corporate scandal in India’s memory promises to shake up the country’s outsourcing sector while possibly threatening foreign investment in the country.

In Canada, Satyam’s clients include four of the big five banks. With offices in Toronto, Montreal and Calgary, it also does business in the health-care sector.

 
 
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