Scribd Logo
Upload

Welcome to Scribd!

  • Satyam Scandal

    Uploaded by

    Mayank Shukla
    26 views6 pages
    The document summarizes a major corporate fraud at Satyam Computer Services Ltd, an Indian IT company. In January 2009, the company Chairman resigned and confessed to falsifying Satyam's accounts, inflating cash balances, understating liabilities, and overstating assets. This massive fraud shocked investors, governments, and the Indian IT sector. It led to Satyam being removed from stock exchanges and its auditing firm having its license revoked in India, costing the country's reputation as well. The fraud was largely driven by corporate greed and a lack of proper governance controls.

    Original Description:

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document summarizes a major corporate fraud at Satyam Computer Services Ltd, an Indian IT company. In January 2009, the company Chairman resigned and confessed to falsifying Satyam's accounts, inflating cash balances, understating liabilities, and overstating assets. This massive fraud shocked investors, governments, and the Indian IT sector. It led to Satyam being removed from stock exchanges and its auditing firm having its license revoked in India, costing the country's reputation as well. The fraud was largely driven by corporate greed and a lack of proper governance controls.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    26 views6 pages

    Satyam Scandal

    Uploaded by

    Mayank Shukla
    The document summarizes a major corporate fraud at Satyam Computer Services Ltd, an Indian IT company. In January 2009, the company Chairman resigned and confessed to falsifying Satyam's accounts, inflating cash balances, understating liabilities, and overstating assets. This massive fraud shocked investors, governments, and the Indian IT sector. It led to Satyam being removed from stock exchanges and its auditing firm having its license revoked in India, costing the country's reputation as well. The fraud was largely driven by corporate greed and a lack of proper governance controls.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pptx, pdf, or txt
    of 6

    The mega corporate fraud

    Satyam Computer Services Ltd.is a consulting and information technology services company based in Hyderabad, India . The company offers information technology(IT) services spanning various sectors, and is listed on the New York Stock Exchange and Euronext. It is considered as an icon among the IT companies and at one point had over a billion dollar revenue. Satyam's network covers 67 countries across six continents. The company employs 40,000 IT professionals across development centres in India, the United States, the United Kingdom, the UAE, Canada, Hungary, Singapore, Malaysia, China, Japan, Egypt and Australia. It serves over 654 global companies, 185 of which are Fortune 500 corporations.

    On Jan 2009, company Chairman Ramalingam Raju resigned after notifying board members and SEBI that Satyams accounts had been falsified. He confessed that Satyam balance sheet of September 2008 contained: Inflated figured for cash and bank balances of Rs.5040 Crores as against Rs.5361 crores reflected in balance sheet. An accrued interest of Rs.376 Crores which was non- existent. An understated liability of Rs.1230 Crores on accounts of frauds arranged by himself. An overstated debtors position of Rs.490 Crores against Rs.2361Crores reflected in the books. 40000 against 50000 employees reflected in books. After investors voice against Satyam- Maytas deal. This complete fraud come into limelight which has shaken all corporate bodies, government, investors and other stakeholders of the company.

    New York Stock Exchange remove Satyam from its trading list. NSE also announce to remove Satyam from its trading list. Satyams auditing firm PrincewaterhouseCooperss license is revoked in India. Due to Satyam fiasco BSE & NSE report downfall of 7%. Others who suffered are Government IT sector. SEBI Promoters Employees of Satyam. And most importantour NATION IMAGE.

    The main reason behind this scam is GREED. To save taxes. To achieve targets. To impress investors. To earn more and more money in short period of time. To overcome the competitors. The loopholes in Corporate Governance also encourages them to adopt unethical and illegal way of earning money.

    Atul Pal Mayank Shukla Deepika Handoo Sneha Gupta Parul Garg Akshay Gupta

    You might also like