SAY's new government-selected board of directors chose new accountants in the wake of the largest corporate fraud in Indian history.
Satyam's chairman B. Ramalinga Raju agreed to inflating profits in the balance sheet of the company for the past several years and offered his resignation.
Chairman B. Ramalinga Raju admitted that the company falsified company accounts and inflating revenue and profit figures over several years. On the BSE, share prices dropped from approximately Rs. 180 to Rs. 23 from 1/6 to 1/8.
An appreciating rupee has resulted in concerns for Indian technology stocks. Exports account for majority of their revenue and an appreciating rupee is expected to have a negative impact on these companies’ earnings. Analysts were disappointed by the earnings forecast announced by Infosys and stock prices of all major Indian IT companies (Infosys, Satyam and TCS) declined.