These are the core obsessions that drive our newsroom—defining topics of seismic importance to the global economy. Our emails are made to shine in your inbox, with something fresh every morning, afternoon, and weekend. The case, which is also called the Enron of India, dates back to The deal falls through after investors and board members object, and in a span of four days , four directors of the company quit. Maytas is Satyam spelt backwards.
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Case Study on Satyam Computer Services Limited (SCSL)
On January 7, , Ramalinga Raju sent off an email to Sebi and stock exchanges, wherein he admitted and confessed to inflating the cash and bank balances of the company. Weeks before the scam began to unravel with his famous statement that he was riding a tiger and did not know how to get off without being eaten. Raju had said in an interview that Satyam, the then fourth-largest IT company, had a cash balance of Rs 4, crore and could leverage it further to raise another Rs 15,, crore. Ramalinga Raju was convicted with 10 other members on 9 April
Nonexistent bank balances and cash of Rs. He also stated that neither he nor the Managing Director or their spouses benefitted financially from these inflated results. He also confessed to the fact that none of the board members knew of the inflated figures and that there was no underlying assets to back the figures in the books. It has attained unmanageable proportions as the size of company operations grew significantly annualised revenue run rate of Rs11, crore in the September quarter of and official reserves of Rs8, crore. As the promoters held a small percentage of equity, the concern was that poor performance would result in a takeover, thereby exposing the gap.