Scam of Satyam

Scandal at Satyam: Truth, Lies and Corporate Governance When terrorists attacked Mumbai last November, the media called it Indias 9/11. That catastrophe has been succeeded by another that has been dubbed Indias Enron. In one of the the biggest frauds in Indias bodied history, B. Ramalinga Raju, founder and CEO of Satyam Computers, Indias fourth-largest IT services firm, announced on January 7 that his caller had been falsifying its accounts for years, overstating revenues and inflating profits by $1 billion. Ironically, Satyam elbow room truth in Sanskrit, but Rajus admission -- accompanied by his resignation -- shows the company had been feeding investors, shareholders, clients and employees a steady diet of asatyam (or untruth), at least regarding its fiscal performance. (Editors note: Satyam is a corporeal sponsor of India Knolwedge@Wharton.) Rajus departure was followed by the resignation of Srinivas Vadlamani, Satyams chief financial officer, and the appointment of Ram Mynampati as the interim CEO. In a press conference held in Hyderabad on January 8, Mynampati told reporters that the companys exchange position was not encouraging and that our only aim at this time is to ensure that the business continues.

A day later, media reports noted that Raju and his brother Rama (also a Satyam co-founder) had been arrested -- and the government of India disbanded Satyams board. Though control of the company will pass into the hands of a new board, the government stopped short of a bailout -- it has not offered Satyam any funds. Meanwhile, a team of auditors from the Securities and Exchange Board of India (SEBI), which regulates Indian public companies, has begun an investigation into the fraud. Since Satyams stocks or American Depository Receipts (ADRs) are listed on the Bombay Stock Exchange as well as the bare-assed York Stock Exchange, international regulators could swing into action if they believe U.S. laws encounter been broken. At least two U.S. law firms... If you want to get along a full essay, order it on our website: Orderessay

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