Case study satyam fiasco

History[ edit ] Initial confession and charges[ edit ] On 7 Januarythe chairman of Satyam, Byrraju Ramalinga Rajuresigned, confessing that he had manipulated the accounts of Rs 14, crore in several forms. The global corporate community was said to be shocked and scandalised.

Case study satyam fiasco

Jan 8, Expert after expert came on television and criticised Satyam.

Orders them to restitute unlawful gains in 45 days with 12% interest

This was rather ironic given the fact that a large number of these experts had been bullish on Satyam till about one month back, when the troubles of Satyam really started to unravel.

So in a way they were venting there frustration on being taken for a ride by B Ramalinga Raju. But the fact of the matter is they got it all wrong. Price Waterhouse — The auditor Why did none of these so called experts see it coming? In this case the answer that seems to be coming out is that the auditor of Satyam, Price Waterhouse, was hand in glove with the promoters.

As on September 30,the company declared cash on books of Rs 5, crore. This was overstated to the extent of Case study satyam fiasco 5, crore. Rs 5, crore is not a small amount by any stretch of imagination. Where did Satyam keep this kind of money?

Did it keep it as fixed deposits in banks?

The case of Satyam’s accounting fraud has been dubbed as “India’s Enron”. In order to evaluate and understand the severity of Satyam’s fraud, it is important to understand factors that contributed to the “unethical” decisions made by the company’s executives. Corporate Governance In India: Case Study Of Satyam it will be discussed that how the lessons learnt from satyam saga will help improve the level of corporate governance in india in the years to come. Had there been an early whistle blowing in the case of fiasco like Satyam Computers Services, the results may not have been so devastating. Satyam had it whistle blowing policy since However it wasn’t implemented properly.

If yes, then there would be proof for the same. Did it invest this money in short term liquid funds? Did it keep all the money locked up in a vault? There would be proof even for that. The auditor is paid to ask questions; in this case it seems to have been paid not to ask any.

Case study satyam fiasco

The company couldn't have hoodwinked the investors without the auditor being on its side. This is no complicated accounting fraud like Enron was. Role of the media When was the last time the Indian media broke any major corporate scandal?

Journalists are kept happy by spoon feeding them so called breaking news, and ensuring that they write what companies want them to write. So it is in the best interests of journalists to keep the companies happy and not write anything negative and run the risk of not getting their exclusives.

Brokerage analysts who follow companies also need to keep companies in a good humor. Without that, they run the risk of being given limited or at times no access to the company, at all.

Have you ever wondered why the number of sell recommendations are so low when compared to the number of buy recommendations that brokerages put out? The other important factor that needs to be highlighted is the lack of circulation revenues for the newspapers.

Case study satyam fiasco

Till two decades back, the ratio between circulation revenues and advertisement revenues used to be almost Now advertisement brings in majority of the revenues.

And who pays for these advertisements?

Case Study: Enron by Jennifer Goodwin on Prezi

I need not tell you, corporates do. And that makes it all the more difficult. The point I am trying to make is that the entire Satyam story came out because Raju chose to admit his guilt.

And the media has gone hammer and tongs against him. But there are corporates out there who have been up to a lot of hanky panky and nothing really is being written against them. The case with Satyam's Raju was no different.


Lot of magazines and newspaper wrote stories on him and painted him as a person who could do no wrong.Moving Forward–A Guide to Improving Corporate Governance Through Effective Internal Control A Response to Sarbanes-Oxley Note to Readers Regarding This First Edition – January Download-Theses Mercredi 10 juin Jan 08,  · The fraud committed by founder of the now stained Satyam — Ramalinga Raju, has left corporate lawyers in a quandary.

International corporate accounts handled by . Aug 22,  · At lot has changed over the last four years, since the Satyam scandal came to light. However, the latest developments could prove to be the final nail in coffin to the whole fiasco. PETA: Escalation Case Solution, An abstract is not available for this product.

An abstract is not available for this product.

Foreign Firms Wary as Satyam Trial Looms -

Complements the PETA "Kentucky Fried Cruelty, Inc." Campaign. More Essay Examples on Comparison Rubric. This paper essentially compares the Enron scandal with the Satyam scandal which occurred early during the present year - Comparing Enron and Satyam Essay introduction.

Enron Corporation was an American energy company based in Houston, Texas.

Corporate Governance Case Studies