CORPORATE ACCOUNTING SCANDAL AT SATYAM COMPUTER SERVICES LTD.

: A CASE STUDY OF INDIAS ENRON

ISSUES IDENTIFIED
Leadership - Ramalinga Raju:
Tunneling Negligence of Fiduciary Duties Lack of ethics

High Expectation of Share Markets:

Fabrication of Balance Sheet & Income Statement Maintenance of Stock Prices (High of Rs. 544) Very High Growth rates in terms of all financial parameters that the investors look at like Sales, Operating Profits, Dividend Payouts, EPS etc.

The Company: Satyam

Corporate governance Lack of CSR Weak Directors Internal Audit Committee Overall Management

ISSUES IDENTIFIED
Nature of Accounting Rules
Cooking of Books, Deceptive Reporting Practices (Lack of Transparency) Audit Failure (internal & external) Satyam was the first Indian Company to publish IFRS audited financials

Failure of Regulators (SEBI) and the System A case of fraud not only by the Satyam but also by the auditors Unearthing of Fraud:
World Bank Decision of not doing business with Satyam Resignation of Independent Directors Failure of Maytas Deal Resignation of Ramalinga Raju

VICTIMS OR PERPETRATORS OF FRAUD

Employees Clients Shareholders Bankers Indian Government

FINANCIAL FRAUD DETAILS