Satyam Scam
Corporate Governance at SATYAM | | Submitted to-Prof. Rajan Mani | Submitted by- Khushbu Gumber | Shivi Singh | Siddharth Talokar Vikrant Shinde | 9/26/2011 | |
Table of Contents
Content | Pg. No. | Company Background | 3 | The good thing about SATYAM fiasco | 5 | Rating Agency- CRISIL | 7 | SATYAM analysis | 10 | Conclusion | 12 |
Company Background
Ramalinga Raju had founded SATYAM Computers in 1987 and was its chairman till 7th January 2009. The SATYAM fraud came to light on 7th January 2009 when Chairman Ramalinga Raju confessed that SATYAM’s accounts were falsified. He resigned from the SATYAM board after admitting that he had cheated six million share holders. He was charged with cheating, embezzlement and insider trading. Raju had appointed a task force to address the MAYTAS situation in the last few days before revealing the news of the accounting fraud. MAYTAS ("SATYAM" read backwards) refers to a group of companies founded by B. Ramalinga Raju. It includes MAYTAS Properties and MAYTAS Infra Limited. After the scandal broke, the then-board members elected Ram Mynampati to be SATYAM's interim CEO.
On 10th January 2009, the Company Law Board decided to bar the current board of SATYAM from functioning and appoint 10 nominal directors. Chartered accountants regulator ICAI issued show-cause notice to SATYAM's auditor Price Waterhouse Coopers (PwC) on the accounts fudging. On the same day, the Crime Investigation Department (CID) team picked up Vadlamani Srinivas, SATYAM's then-CFO, for questioning. On 11th January 2009, the government nominated noted banker Deepak Parekh, former NASSCOM Chief Kiran Karnik and former SEBI (Securities and Exchange Board of India)
Table of Contents
Content | Pg. No. | Company Background | 3 | The good thing about SATYAM fiasco | 5 | Rating Agency- CRISIL | 7 | SATYAM analysis | 10 | Conclusion | 12 |
Company Background
Ramalinga Raju had founded SATYAM Computers in 1987 and was its chairman till 7th January 2009. The SATYAM fraud came to light on 7th January 2009 when Chairman Ramalinga Raju confessed that SATYAM’s accounts were falsified. He resigned from the SATYAM board after admitting that he had cheated six million share holders. He was charged with cheating, embezzlement and insider trading. Raju had appointed a task force to address the MAYTAS situation in the last few days before revealing the news of the accounting fraud. MAYTAS ("SATYAM" read backwards) refers to a group of companies founded by B. Ramalinga Raju. It includes MAYTAS Properties and MAYTAS Infra Limited. After the scandal broke, the then-board members elected Ram Mynampati to be SATYAM's interim CEO.
On 10th January 2009, the Company Law Board decided to bar the current board of SATYAM from functioning and appoint 10 nominal directors. Chartered accountants regulator ICAI issued show-cause notice to SATYAM's auditor Price Waterhouse Coopers (PwC) on the accounts fudging. On the same day, the Crime Investigation Department (CID) team picked up Vadlamani Srinivas, SATYAM's then-CFO, for questioning. On 11th January 2009, the government nominated noted banker Deepak Parekh, former NASSCOM Chief Kiran Karnik and former SEBI (Securities and Exchange Board of India)