Satyam Chairman Admits Fudging Profits

By Muneeza Naqvi

NEW DELHI -- The chairman of India's Satyam Computer(SAY Quote) quit Wednesday after admitting the company's profits had been doctored for several years, shaking faith in the country's corporate giants as shares of the software services provider plunged nearly 80%.

The company's balance sheet -- riddled with "fictitious" assets and "non-existent" cash -- contained a $1 billion hole that could no longer be concealed after a deal intended to save the struggling company was scuppered, Chairman B. Ramalinga Raju said in a letter to the board.

"Every attempt made to eliminate the gap failed," said Raju. "It was like riding a tiger, not knowing how to get off without being eaten." ...