Scam of Satyam

Enron was an energy trading and communications company located in Houston, Texas. During 1996-2001 Enron was given the name of America’s Most Innovative Company by Fortune magazine as it was the seventh-largest corporation in the US. The problem that led this company to bankruptcy was due to the fact that fraudulent accounting practices took place allowing Enron to overstate their earnings and tuck away their high debt liabilities in order to have a more appealing balance sheet (Forbes.com, 2002). Enron’s accounting team “cooked” the books to every meaning of the word so that their investors would not see anything wrong with the failing organization. This poorly structured company led people to jail time, unemployment, and caused retirement stocks to be dried up. Enron had a social responsibility to its stockholders and rather than being up front and honest about the failing company they hid every financial flaw in order to keep receiving money from its investors. By Enron not keeping a social

The word “fraud” was magnified in the business world around the end of 2001 and the beginning of 2002. No one had seen anything like it. Enron, one of the country’s largest energy companies, went bankrupt and took down with it Arthur Andersen, one of the five largest audit and accounting firms in the world. Enron was followed by other accounting scandals such as WorldCom, Tyco, Freddie Mac, and HealthSouth, yet Enron will always be remembered as one of the worst corporate accounting scandals of all time. Enron’s collapse was brought upon by the greed of its corporate hierarchy and how it preyed upon its faithful stockholders and employees who invested so much of their time and money into the company. Enron seemed to portray that the goal of corporate America was to drive up stock prices and get to the peak of the financial mountain by any means necessary. The “Conspiracy of Fools” is a tale of power, crony capitalism, and company greed that lead Enron down the dark road of corporate America.

The most current financial report shows, payables of $7,237 (millions). The account payables added up to $6,651 (millions). The category makes up most of the payables. Next is the accrued expenses at $984 (millions). The last is current debt, this being the second largest payables account at $1,305 (millions).

In relation to approving the ASX Announcements, the CEO breached section 180(1) of the Act by failing to ensure that the ASX Announcements were not misleading or deceptive. JHIL had also breached sections

The Balance Sheet is another type of financial statement used by a company to see a snapshot of the company's financial position at a particular point in time. It lists the value of the company's assets followed by its liabilities. A balance sheet can be summed up by a simple equation:

In this incident, the chairman of one of India’s largest technology company, Ramalingam Raju, the person who has sought to use technology to improve life in rural India said that he concocted important financial results, including a cash balance of more than 1 billion dollars. Analysts in India have termed the Satyam scandal India's own Enron scandal. Some social commentators see it more as a part of a broader problem relating to India's caste-based, family-owned corporate environment. This Scandal is obviously a major blow to the reputation of the IT outsourcing industry in India, and reveals some of the challenges of due diligence in such relationships.

Amusingly, Satyam means “truth” in the archaic Indian language “Sanskrit”. Satyam won the ‘Global Peacock Award’ with for global excellence in corporate accountability by the World Council for Corporate Governance on September 2008. Unfortunately, no longer than five months, Satyam became a great accounting fraud after the World Council for Corporate Governance awarded Satyam the Global Peacock Award.

Describe the governance structure at Satyam. What was the “tone-at-the-top” at Satyam during the fraud

The perfect fraud storm occurred between the years 2000 and 2002 involving two of the largest energy and telecom corporations in the United States: Enron and WorldCom. It was determined that both organizations fraudulently overstated assets, created assets from expenses or overstated revenues, costing investors billions of dollars and resulting in both organizations declaring bankruptcy (Albrecht, Albrecht, Albrecht & Zimbelman, 2012). Nine factors contributed to fraud triangle creating this perfect fraud storm, and assisting management in concealing the fraud until exposed and rectified.

Business Industry has witnessed the outcomes of bad moral decisions taken by business leaders. Enron’s story is only one example of corporate scandals and cases of bad moral decisions, which has not only shaken the public trust in corporations, but also affected the bank accounts of investors and employees. Before the bankruptcy of Enron; it was included in one of the fortune 500 companies after its fraudulent accounting case the share went down to $1 (Enron scandal, 2010; PBS, 2002; Godwin, 2006; Godwin, 2008).

His brother who previously occupied the position of managing director B. Rama Raju as well as Ram Mynampati who was previously a whole time director also received the same punishment.ie imprisonment for 6 months and a fine of Rs.10.5 lakh

For one hundred percent of the profits, all human laws will be trampled by these capitals. If there are three hundred percent of the profits, any crime will be committed, even with the risk of strangulation (Marx, Engels, & Levitsky, 1996). For example, before Enron declared bankruptcy in 2001, it had about 21,000 employees and was one of the world 's largest electricity, gas and telecommunication companies. The company had been named as "America 's most innovative company" by Fortune for six consecutive years. But the real cause of Enron famous in the world was financial fraud scandal which made this company with hundreds of billions of assets in bankruptcy within a few weeks (Cahan & Zhang, 2005). Therefore, it can be seen that the pursuit of profit as the purpose of the enterprise inevitably causes the emergence of various cases of unsustainable development, thereby harming the enterprise, society, the community, the environment and the staffs.

2001. It was the year that every individual; man, woman and children on Earth would remember. There was the September 11 event which was considered the worst terrorist attack that has happened in U.S. history, killing a total of 2, 977 people. And not long after that, in the business world, on December 2, the greatest corporate failure was exposed. The crash of Enron in US, followed by the worldwide collapse of its auditor, Arthur Andersen became one the most popular accounting scandal where it is still being talked about even after a decade has passed. Following this scandal, other massive organizations like WorldCom (2002), AIG (2004), and Satyam Computer Services (2009) shared the same fate. Since then, there have been questions being

This paper will discuss the corporation WorldCom, a telecommunications company that was based in Mississippi. In 2002 WorldCom was involved in one of the largest accounting scandals in the United States. WorldCom inflated its assets by nearly $11 billion dollars, which eventually lead to about 30,000 employees losing their jobs, as well as, 180-billion dollars in losses for its investors. The CEO at the time of this accounting fraud was Bernard Ebbers and led to him receiving a 25-year prison sentence. This paper will go into the details of how WorldCom was able to manipulate its accounting records to deceive its internal auditors, as well as, investors.

India is growing well, growing well in all terms, like strong economy, great infrastructure, top businessmen, more number of Indians in forbes richest people list, technology, education, strong media, politics on the positive side and when we looking into the worrying part comes big scams, curruption, etc.