Ramalinga Raju was the founder and chairman of Satyam Computer Services Ltd, one of India's largest IT companies. In 2009, he admitted to falsifying Satyam's accounts for several years, inflating cash balances and profits by over $1 billion. This scandal damaged Satyam and raised questions for India's IT industry. While Raju claimed it began small and grew out of control, his actions were clearly unethical and had huge negative impacts on the company and its employees.
This presentation is on satyam scam & was created for educational purpose.this presentation include various aspects of satyam scam such as satyam Company Profile, satyam Achievements , Overview of the satyam scam, How the satyam scam started to unravel, Modus operandi of satyam scam, Impact Of satyam Scam, Regulatory action etc.
This presentation is on satyam scam & was created for educational purpose.this presentation include various aspects of satyam scam such as satyam Company Profile, satyam Achievements , Overview of the satyam scam, How the satyam scam started to unravel, Modus operandi of satyam scam, Impact Of satyam Scam, Regulatory action etc.
Accounting TheoryNight 5 – SatyamBriefly answer the question.docxnettletondevon
Accounting Theory
Night 5 – Satyam
Briefly answer the questions 1-3:
1. Explain the fraud
a. What was the impact on the financial statements? What accounts were wrong?
b. What journal entries were wrong or omitted?
c. Who took the money and how much?
2. The Audit: Where Did They Go wrong –
a. PW India have to follow PCAOB Audit Standards – this was India?
b. Accounts Receivable: PCAOB standards and India Audit Standards differ little concerning Confirmations. Did PW India do anything wrong? (AU 312.16,312.17,316.28, AS No. 13…India AAS No. 30/SA 505)
c. Finding the Fraud: Under U.S. Standards, what is the auditor’s responsibility to find Fraud? (AU 110 & AU 317)
d. Were there any related party issues and what should PWI have done about them
e. Did PWI control the work outsources appropriately?
3. What about the Corporate Governance Structure and Corporate Culture Allowed the fraud to occur?
4. Just think about this: Did the punishment fit the crime? Are there cultural issues that impact your answer or the punishment
Satyam Fraud: A Case Study of India’s Enron
Veena L. Brown, Brian E. Daugherty, and Julie S. Persellin
ABSTRACT: This case provides students a unique opportunity to examine and reflect
on the challenges of auditing in today’s global environment. Students examine a real-
world billion dollar plus embezzlement and fraud at Satyam Corporation, an
international company based in India and previously trading on the New York Stock
Exchange. The case focuses on auditors’ responsibilities related to obtaining and
evaluating audit evidence, particularly as it relates to confirming cash and receivables.
It also explores the quality control responsibilities related to audit procedures
performed by foreign affiliates of a large international audit firm. The case illustrates
the role of culture in performing an audit in accordance with auditing standards issued
by the U.S. Public Company Accounting Oversight Board. Additionally, case details
provide opportunities for class discussions and foster students’ critical thinking skills on
other auditing topics such as audit risk and planning, related party transactions, tone-
at-the-top, and internal control deficiencies. By using a foreign issuer to explore these
issues, the case highlights both the technical and international challenges of
performing auditing procedures.
Keywords: American Depositary Shares; confirmation process; culture; embezzlement;
foreign issuers; fraud; quality control standards; related parties.
INTRODUCTION
‘‘I
t is with deep regret, and tremendous burden that I am carrying on my conscience, that I
would like to bring the following facts to your notice,’’ and so began the letter written on
January 7, 2009, by B. Ramalinga Raju, then Chairman of Satyam Computer Services
Limited (Satyam), to the Board of Directors, in which he admitted to a billion dollar accounting
fraud, the biggest in India’s corporate history (SEC 2009a). The fraud involved senior off.
Presentation by: Suraj Giri
The Satyam Scam Biggest accounting Fraud of India Worth over 14,000 Crores, done by Ramalinga Raju later to save the jobs of thousands of employees Satyam acquired by Tech Mahindra the IT arm of Mahindra and Mahindra.
The whole scam challenged the corporate Governance and shattered the dreams and hopes of Thousands of investors
Satyam Scam - Explanation of the events & FutureVarun Modi
Hi,
Here's one more presentation I gave in the 3rd semester of MBA in year 2008. The presentation is all about Satyam Scam.
There's a .PDF file attached in slide number 17 describing what lies ahead for the Satyam. Please don't forget to open it in order to understand the risks associated if Satyam gets acquired.
Thanks,
Varun M.
First india lucknow edition-23 november 2020FIRST INDIA
Read all Latest News from Uttar Pradesh and from every corner of India.Start your morning with First India E-Paper Lucknow News edition.Read English News on politics, Bollywood, business, sports, economy,Lifestyle and our upto date Uttar Pradesh News section.Visit First India.
CLICK:- https://firstindia.co.in/newspaper
...how quickly venture backed
technology companies market capitalization changed (grew) and whether there had
been a change in the “Time To Market Cap” during different periods of history. November 2014
Education and training in india issues and opinions IIM I Youth Symposia Top ...Abhimanyu Sukhwal
Education and training in india issues and opinions presented at IIM I National Youth Symposia 2011 adjudged amongst national Top 5 Entry presented by Mr Abhimanyu Sukhwal & Team
Safalta Digital marketing institute in Noida, provide complete applications that encompass a huge range of virtual advertising and marketing additives, which includes search engine optimization, virtual communication advertising, pay-per-click on marketing, content material advertising, internet analytics, and greater. These university courses are designed for students who possess a comprehensive understanding of virtual marketing strategies and attributes.Safalta Digital Marketing Institute in Noida is a first choice for young individuals or students who are looking to start their careers in the field of digital advertising. The institute gives specialized courses designed and certification.
for beginners, providing thorough training in areas such as SEO, digital communication marketing, and PPC training in Noida. After finishing the program, students receive the certifications recognised by top different universitie, setting a strong foundation for a successful career in digital marketing.
Delivering Micro-Credentials in Technical and Vocational Education and TrainingAG2 Design
Explore how micro-credentials are transforming Technical and Vocational Education and Training (TVET) with this comprehensive slide deck. Discover what micro-credentials are, their importance in TVET, the advantages they offer, and the insights from industry experts. Additionally, learn about the top software applications available for creating and managing micro-credentials. This presentation also includes valuable resources and a discussion on the future of these specialised certifications.
For more detailed information on delivering micro-credentials in TVET, visit this https://tvettrainer.com/delivering-micro-credentials-in-tvet/
The simplified electron and muon model, Oscillating Spacetime: The Foundation...RitikBhardwaj56
Discover the Simplified Electron and Muon Model: A New Wave-Based Approach to Understanding Particles delves into a groundbreaking theory that presents electrons and muons as rotating soliton waves within oscillating spacetime. Geared towards students, researchers, and science buffs, this book breaks down complex ideas into simple explanations. It covers topics such as electron waves, temporal dynamics, and the implications of this model on particle physics. With clear illustrations and easy-to-follow explanations, readers will gain a new outlook on the universe's fundamental nature.
This presentation includes basic of PCOS their pathology and treatment and also Ayurveda correlation of PCOS and Ayurvedic line of treatment mentioned in classics.
A Strategic Approach: GenAI in EducationPeter Windle
Artificial Intelligence (AI) technologies such as Generative AI, Image Generators and Large Language Models have had a dramatic impact on teaching, learning and assessment over the past 18 months. The most immediate threat AI posed was to Academic Integrity with Higher Education Institutes (HEIs) focusing their efforts on combating the use of GenAI in assessment. Guidelines were developed for staff and students, policies put in place too. Innovative educators have forged paths in the use of Generative AI for teaching, learning and assessments leading to pockets of transformation springing up across HEIs, often with little or no top-down guidance, support or direction.
This Gasta posits a strategic approach to integrating AI into HEIs to prepare staff, students and the curriculum for an evolving world and workplace. We will highlight the advantages of working with these technologies beyond the realm of teaching, learning and assessment by considering prompt engineering skills, industry impact, curriculum changes, and the need for staff upskilling. In contrast, not engaging strategically with Generative AI poses risks, including falling behind peers, missed opportunities and failing to ensure our graduates remain employable. The rapid evolution of AI technologies necessitates a proactive and strategic approach if we are to remain relevant.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
Exploiting Artificial Intelligence for Empowering Researchers and Faculty, In...Dr. Vinod Kumar Kanvaria
Exploiting Artificial Intelligence for Empowering Researchers and Faculty,
International FDP on Fundamentals of Research in Social Sciences
at Integral University, Lucknow, 06.06.2024
By Dr. Vinod Kumar Kanvaria
MASS MEDIA STUDIES-835-CLASS XI Resource Material.pdf
Scandal at satyam truth lies & corporate governance
1. Scandal at Satyam: Truth, Lies &
Corporate Governance
An Ethical perspective
Mr Raju, winner of innumerable awards of excellence, unarguably noticed once as one of the most successful
entrepreneurs, suddenly turns from a great leader to a great thief in a few weeks in the wake of India’s biggest corporate
scam amounting to over 1 billion USD. What could be the possible reason behind such a huge corporate fraud ? Why
could someone of the intellect & stature of Mr Raju do this ?
A Report presented by PGDM 2010-12 students at the Goa institute of management towards the partial fulfillment of the
course on Ethics and Corporate governance
Submitted By:
Abhimanyu Sukhwal
Meghna bhattacharya
Ahefaz khan
David Vaz
Ashwin Ramaswamy
PGP-1 Section “D”
2. Scandal at Satyam:
Truth, Lies &
Corporate
Governance
Ramalinga Raju is one of the pioneers of the Information Technology industry in India.
He is the founder and Chairman of Satyam Computer Services Ltd. Ramalinga Raju was
born on September 16, 1954 in a family of farmers. He did his B. Com from Andhra
Loyola College at Vijayawada and subsequently did his MBA from Ohio University,
USA. Ramalinga Raju had a stint at Harvard too. He attended the Owner / President
course at Harvard.
Satyam achieved huge number of Awards and achievements under the leadership of
Ramalinga Raju. Detail of these awards can be viewed on Satyam Website. Some
of Ramalinga Raju’s awards and honors include Ernst & Young Entrepreneur of the
Year for Services in 1999, Dataquest IT Man of the Year in 2000, and CNBC’s Asian
Business Leader – Corporate Citizen of the Year award in 2002, Asian MAKE (Most
Admired Knowledge Enterprise) Award 2008, Partner Innovation Award for Anti-Money
Laundering (AML) solution 2007 etc.
Great Leader to Great Thief:
Amid of Economic Recession, Biggest news of 2009 start was, When Mr. Raju
announced, Satyam’s Financial statements are based on lies. Raju resigned as chairman,
revealing profits had been falsified for years and that $1 billion of cash on the books did
not exist. With this news, Satyam badly damaged on Stock Exchange and a big question
mark raised on Indian’s largest IT Company and its 53,000 Employees. Ramalinga Raju
resigned after revealing that he had systematically falsified the company’s accounts as it
expanded from a handful of employees into a back office giant with a workforce of 3,000
and operations in 66 countries. Mr. Raju said Wednesday that 50.4 billion rupees, or
$1.04 billion, of the 53.6 billion rupees in cash and bank loans the company listed in
assets at the end of its second quarter that ended in September were nonexistent.
Revenues for the quarter ending September 30 were 20 percent lower than the 27 billion
rupees reported, and the company’s operating margin for the quarter was a fraction of
what it declared, he said in a letter to the Bombay stock exchange authorities.
3. The Ethics perspective
In a four-and-a-half page statement to the Bombay stock exchange, Mr. Raju described a small
discrepancy that grew beyond his control. “What started as a marginal gap between actual operating
profit and the one reflected in the books of accounts continued to grow over the years. It has
attained unmanageable proportions as the size of company operations grew,” he said. “It was like
riding a tiger, not knowing how to get off without being eaten,” he wrote.
Mr. Raju said he had attempted and failed to bridge the gap, including an attempt in December to
buy two construction firms in which the company’s founders held stakes. Speaking of a “deep
regret” and a “tremendous burden,” Mr. Raju said that neither he nor co-founder and managing
director B. Rama Raju had “taken one rupee/dollar from the company.” He said the board had no
knowledge of the situation, nor did his or the managing director’s families.
In the light of various articles and documents publicly available, it is imperative that such a huge
scam and inflating of cash reseves isn’t possible without the management being aware of the same.
Considering the huge negative impact that the scandal had over the future of India IT industry and
over the life of its employees, and no visible logic in going forth with the overstated figures in false
financial statement, the issue is clarly unethical. There was no observable pattern in Raju’s behavior
since he had been appreciating the firm’s progress over the past and had been a role model for
others to follow, just before the revealation of the fraud.
Raju’s behaviour and actions in the light of the Kohlberg’s framework and the context of
shadow self
Kohlberg’s Stage 5 respondents are working toward a conception of the good society. They suggest
that we need to (a) protect certain individual rights and (b) settle disputes through democratic
processes. However, democratic processes alone do not always result in outcomes that we
intuitively sense are just. A majority, for example, may vote for a law that hinders a minority. Thus,
Kohlberg believes that there must be a higher stage--stage 6--which defines the principles by which
we achieve justice. Stage 5 respondents are working toward a conception of the good society. They
suggest that we need to (a) protect certain individual rights and (b) settle disputes through
democratic processes. However, democratic processes alone do not always result in outcomes that
we intuitively sense are just. A majority, for example, may vote for a law that hinders a minority.
Thus, Kohlberg believes that there must be a higher stage--stage 6--which defines the principles by
which we achieve justice.
In the light of the Satyam scam, one might infer that Mr Raju might have resorted to inflating
SATYAM’s financial statements to
Gain larger investor confidence
Huge Client confidence
Grab various new and bigger projects
Easily obtain funding/financing approvals from banks-
by showing a stronger financial muscle.
This was essential since in the prevalent IT sector, firm size and capabilities unarguably count a lot
in grabbing prospective assignments, since it’s the perception of prospective clients what really
matters at the end of the day. Satyam night not have grown at such a rapid pace had it been
transparent & honest in all of its dealings. Besides, he might be envisioning an aggressive
4. expansion/diversification strategy for huge growth by riding on a fake bubble of gaps between
actual Operating profits and those stated in the financial reports, which he would have possibly
absorbed/dissolved later on by adjusting from greater profits. One example of this is going for the
Maytas investment soon after which the scam revealed in public. Had Satyam/Raju been able to
contain such a big goof up under wraps even after Maytas acquisition, it might have driven off the
first few IT/Real estate giants in its revenues and profits, and nobody would be ever aware of such a
scam. Thinking that way, one can think of Mr Raju as a mastermind, who could play such a serious
game really well for years altogether, but just being unfortunate that things got out of his control all
of a sudden to irrecoverable & unmanageable extents.
Satyam made several freshers stand on their feet to get better jobs elsewhere across the globe and
attain on site exposure through Satyam. What Raju did was to keep the business of Satyam going at
any cost. One can see a very smart man in him when he understood that he should rather accept his
mistake than be caught by the USA laws . He had a selfish father in him too that he put a lot at stake
for Maytas. However, he resigned with a lot of dignity and his letter of resignation shows humility.
It takes a mammoth amount of courage to accept one’s mistake in public at a time when the media
is ready to blow everything out of proportion. Thus considering assuming truth in the claim that
not even a penny was misused by Raju or his family, only the charts and figures were inflated. If
all this was done for the common good of benefitting india’s masses with huge employment, and
positioning india better in the IT landscape, then Mr Raju would be placed at some of the
heighest levels ever in morality - Level 6.
Dr Karl Jung says that oppression of the shadow can lead us to the shadow overwhelming us and we
end up doing things that we earlier used to condemn. Same appears to be the case with Raju. Jung
says that there are undesirable qualities like greed and manipulation which we suppress and these
qualities enter our sub-consciousness. There, they remain active and finally emerge and force us to
do something which we might not have otherwise done. Satyam scandal involved greediness and
manipulation of information by Raju and his colleagues, which resulted in one of the corporate
India’s biggest financial scam.
Raju’s employees and Kohlberg’s framework
Raju’s employees who were aware of the proceedings of the scam when the financials were
constantly inflated would all be operating at Kohlberg’s morality stage number 1, since they were
afraid of loosing their jobs / careers with Satyam in the event of their revolting against the existing
malpractices. They choose to stay quiet over the issues in the fear of power authority of senior
management of Satyam.
Something larger than greed or mere projection ?
Several supporters of Raju’s actions claim that this was done largely to keep the businesses of
Satyam going, and he generated employment for some 50,000 plus odd individuals who were
provided employment despite having backlogs, low grades from unpopular universitites. By
bloating the figures he managed to cover up the aggressive growth despite not actually being
capable of the same, and made lives meaningful for those who would have never got decent jobs
had Satyam not absorbed them. However, it’s quite evident that indulging into such a big scam,
even for the benefit of the masses surely had its pie of side- effects for the entire indian IT industry
and investors, employess and other stakeholders of Satyam as a whole whose lives were made
5. miserable the moment the scandal was disclosed in public. Hence justifying such an act even with
the target of social benefit is all in vain.
My reaction if I were in those Shoes ?
Had I been part of the Satyam corporate scandal, as a member of one of the teams aware of the
wrong-doings, I would have firstly tried to convince the internal management to abolish such
malpractices for common good, and be honest, truthful & transprent in their financial reports. But
even if after repeated requests the scandal kept inflating, I would have firslt found out another
substitute job for myself so as to sustain my own career going forward, and as soon as I would quit
the organization, I would blow the whistle leaking out the entire fraud for common good.