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Introduction:
On January 7th 2009, Wednesday, the turn of events at one of the internationally reputed software firms shocked
the global corporate world. The founder and CEO of Satyam Computer Services Ltd. (Satyam) B. Ramalinga Raju
(Ramalinga Raju) submitted his resignation letter to the board of directors (board). It was not the news that shocked
the world, however, rather astonishing were the confessions .
Ramalinga Raju revealed that out of Satyam’s cash and bank balances of INR 53.61 billion mentioned in the
financial statements as on September 30th 2008, INR 50.4 billion were inflated.1 Ramalinga Raju exposed all his
experiments with truth leading to an accounting fraud that was going on over the years.
It was astonishing for all stakeholders – the investors, clients and employees as well as the government and
regulatory bodies – to listen to Satyam’s truth revealed by its own founder, who had nurtured the growth of his brainchild
from a small Information Technology (IT) firm to the fourth-largest IT services provider in India, which spread across
more than 60 countries with nearly 53,000 employees serving over 185 Fortune 500 clients. More ironical was the fact
that Satyam won accolades for excellence in corporate governance practices.
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Case Studies on Best Practices - Vol. I
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Case Studies on Aviation Industry |
