Satyam explodes

WSJ: Satyam Computer Services Ltd. Chairman B. Ramalinga Raju Wednesday resigned admitting to falsifying company accounts and inflating revenue and profit figures over several years, sending the company’s shares plunging 78%.

In a letter to the company’s board, which was released to the Bombay Stock Exchange, Raju said that Satyam had inflated its operating profit for the three months ended Sept. 30 to 6.49 billion rupees ($136 million) from 610 million rupees reported previously, while revenue was inflated to 27 billion rupees from 21.12 billion rupees. It had reported an operating margin of 24% which was actually 3%