The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post
D.Kalyani, MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur
In 2009, Satyam scandal came into picture when founder-chairman of Satyam Computers Mr. Ramalinga Raju confessed that the company’s accounts were manipulated. He disclosed Rs.7000 crore of accounting fraud in the balance sheets. He was arrested along with his brother and other convicts by the CID of Andhra Pradesh. The main charge sheet against them ran into 2315 pages and several documents were attached to it which made it a case file of 65000 pages. It was apparent that they formulated a procedure to fudge and fake balance sheet, bank statements and records. This misconduct had caused for cessation of the fourth largest Indian IT firm.
In the special story of The Hindu, it came up with the entire timeline of the scam – from skepticism to final verdict. On April 9, 2015 all 10 accused found guilty and were sentenced to a seven year jail term by a trial court.
This scandal was an unanticipated situation which was a tussle for the whole industry because it raised questions on the accounting practices in India and made Indian IT firm to take measures to reassure top clients about the well versed accounting system at their companies.
In an article of the leading newspaper The Economic Times, has shown that Satyam scam has become a case study for IT and gave lots of lessons for the top Indian IT firms. It also called for better government regulations in the corporate world. This episode also demands for fair and ethical business practices in India. It also raises a question whether enterprise’s only and primary goal is profit making. It so then why they stress on the false objective in the public i.e. its central aim is to maintain a sustainable long term relationship with their stakeholder. It is just a publicity stunt to grab the attention of the investors.