This scandal had a negative implication in overall global information technology industry during the trying times of credit crunch as the company used to provide its services to more than 75% of the Fortune 500 companies (Timmons & Wassener, 2009). It was on January 2009, the Chairman of the company, Mr. B. Ramalinga Raju mailed a letter to the Securities & Exchange Board of India (SEBI) as well as his Board Members confessing the fact that he had been forging the financial statements of the company. This resulted to the overstatement of the company revenues by $ 1 billion. He further mentioned that the balance sheet of the company incurred a liability of $253 million which was arranged by him personally. The revenues were overstated by 76% as well as profits by 97%. Therefore, the major offenders in the event were the Former Chairman Mr. B.Ramalinga Raju along with other several members of the board (Kripalani, 2009). Loss to Satyam During the period of such issues, the company lost its significant clients. It was noticed that immediately after the Satyam Computers was caught in fraud, the company was sold to Tech Mahindra which is based in Pune and deals with telecom-solution providers. He was successful at winning the auctions at $352 millions and bought 31% of Satyam. In order to acquire more of 20% of the Satyam shares Tech Mahindra made a public offer (Singh, 2009). The case was referred to be India’s Enron. Most of the financial houses across the world were disappointed by the fact that the biggest fraud in India was unnoticed by the authorities for quite long. This event resulted to be quite harmful in affecting the economy which if noticed in time could have been prevented. The event raised questions in relation to the level of corporate governance in India and has ruined the reputation of the Indian telecom industry among the overseas companies. The investors demonstrated their concern regarding the event and stated that the event took place at worst possible time. It was the time when market had begun recovering and the event made the market even worse (Vaswani, 2009). Mr. Raju had been trying to conceal the losses from the investors and as a result was caught up in the ferocious cycle of falsehood and debts. He stated that $1 billion of the cash in hand with company did not exist actually. However, according to various analysts Mr. Ramalinga Raju had been maneuvering the cash flows because of which the falsehood was not getting detected. It was also analyzed that the reason for such fudging of accounts at Satyam by Mr. Ramalinga Raju might have been for the chase for higher profits and the wish to keep pace with the growth rate of the outsourcing industry (Vaswani, 2009). Investigation on the Matter Soon after the event took place, the financial regulators started their invigilation on the matter. Bombay Stock Exchange, where it was listed had decided to remove Satyam Computers from its indices (Vaswani, 2009). Mr. Ramalinga Raju was soon detained and put behind the bars for such scandal (McDougall, 2010). Reasons for Such Activities to Matter These kind of fraudulent activities not only hamper the existence of the organization but also affect the economic
SATYAM COMPUTER SERVICES SCANDAL About Satyam Satyam Computer Services Ltd was one of the leaders in the worldwide information technology services industry. The company has effective know-how in the related industry as well as in other functional areas. The professionals working with the company has apt knowledge regarding enterprise solutions, client relationship management, product lifecycle management and business intelligence…
With the digitization of the world economies, the wealth of the world is no more confined to banks and security vaults, but has also come to reside in the servers and computers scattered across corporations and financial institutions, in the form of bits and bytes.
INTRODUCTION The human society have been revolutionized by the advancements in Computing and information Technology. From what it was in its primitive times the society of the human beings has now evolved into a completely different form- the form of utmost dependence upon computing devices.
Accounting Fraud: Enron Accounting Scandal Accounting scandals can be easily prevented. The research focuses on the study of the Enron accounting scandal. The research delved into Enron’s window-dressing of its financial statements to present a more favorable balance sheet and income statement.
The Enron scandal which disclosed in October 2001, led to the bankruptcy of the Enron Corporation. Enron Corporation was an American energy company which was established in Houston, Texas. This also led to the dissolution of one of world’s fifth largest audit and accountancy partnerships known as Arthur Andersen.
It has been applied across multiple domain areas and with substantial results. This industry is worth billions of shillings and has been used to solve most of the day to day problems in the society. The industry produces an end product which is a program that will run in the computers or other digital devices.
Recuva is file recovery software that is available freely. The software is extremely easy to use and have several advanced components that are optional. The software facilitates the recovery of files that are stored in external drives, memory card and the hard drive.
The professor invented the Analytical Engine that serves as a basis for modern computers. A computer is a constantly improving device. The process is so fast that it is not possible to keep pace with it. Speaking about the development, it is important to mention that computers are classified into three groups.
There are certain factors that are vital to be considered while buying a computer. Cost and features are primary among them. An individual must intend to buy a computer that he/she can afford and it must be capable to meet all the desired requirements (Carter, 2002).
Computers are composed of the processor which carries out all the operations of the computer, the memory unit that stores data and instructions, the peripheral devices that send information outside the computer to other devices, the hardware elements which are the tangible