CASE STUDY 3-1 THE MERGER OF TECH MAHINDRA AND SATYAM COMPUTER SERVICES

Ramalinga Raju, his two brothers and seven others http: Every attempt was made to keep the wheel moving and to ensure prompt payment of salaries to the associates. It is not intended to illustrate either effective or ineffective handling of a management situation. A web of investment companies was used to allegedly divert funds from Satyam. What followed in the last several days is common knowledge. In addition, the Ministry of Corporate Affairs MCA has devised a new Company Law and has changed the securities laws to make it easier for shareholders to bring class-action lawsuits. FINC click on the button below, and select the case from the list of available cases:

Amount to be paid: The reality was, at the end of the day, even as an audit committee member or as an independent director, I would have to rely on what the management was presenting to me, drawing upon his experience as an independent director and audit committee member. Entries into this system get reflected straight in the Profit and Loss Statement. Arriving at the Share Exchange Ratio. The trigger was obviously the failed attempt to merge Maytas with Satyam. Thus, CA is a starting point of a number of accounting scandals, which collapsed during the last decade, applied CA techniques and manipulated financial record.

The audits for a company of that size would have been staggered, with millions of dollars of outstanding receivables pouring in to different locations at any given time.

case study 3-1 the merger of tech mahindra and satyam computer services

So, Satyam had made a profit of Rs. Krishna Palepu 10, 1. Venkatpathi Raju and Ch.

Case Study Volumes Collection. Although, both companies had strong presence globally, the companies had to resolve few other problems before going for the merger. The Satyam fraud seriously affected all the stakeholders of the dase.

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Mahindra Satyam Merger with Tech Mahindra: Arriving at the Share Exchange Ratio

In this, the much-bemoaned inefficacy of the Indian legal system http: A reference to the figures of audit fee in comparison with total income over a period of time may be pertinent. The fraud took place to divert company funds into real-estate investment, keep high earnings per share, ov executive compensation, and make huge profits by selling stake at inflated price. Findings and Analysis of Results: A Case Study of India’s Enron.

GAAP and Stuxy to report its financial results, which means that one set of accounting standards did not trump the other with respect to shedding light on the fraud. International financial reporting standards and moral hazard of creative accounting on hedging, International Journal of Finance and Accounting, 4 1 True and fair view: However, wide gaps can be noticed in net income and cash flow from operation duringandrespectively.

For instance, the utilization level shown in the latest investor update by the company is about The CBI had filed three charge-sheets in the case, which were later clubbed into one massive charge- sheet running over 55, pages. Unfortunately, every attempt made by Raju to eliminate the gap ultimately failed. Here, Bhasin a commented as: Arriving at the Share Exchange Ratio.

A special CBI Court in Hyderabad on April 9, finally, sentenced all the 10 people involved in the multi-crore accounting scam found guilty of cheating, forgery, destruction of evidence and criminal breach of trust, almost the six-year-old case has reached its logical conclusion.

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And finally, CG framework needs to be implemented in letter as well as spirit. The difference was Rs. Now, more than six years later, the final decision in the Satyam scam has been made and all accused charge-sheeted in the case have been awarded punishment by the Court.

case study 3-1 the merger of tech mahindra and satyam computer services

The cash so raised was used to purchase several thousands of acres of land, across Thd Pradesh, to ride a booming realty market. Jhansi Rani 1,00, Remember me on this computer. Unfortunately, the matter did not die there, as Raju may have hoped.

Analysis: Tech Mahindra-Mahindra Satyam merger | Business Standard News

As Veena et al. This was a formula that Raju had been using for a while. Nigerian commercial banks and creative accounting practices, Mahundra of Mathematical Finance, 4, This was overstated by Rs. Issues in Accounting Education: Having put these facts before you, I leave it to the wisdom of the board to take the matters forward.

It sevrices like riding a tiger, not knowing how to get off without being eaten.

case study 3-1 the merger of tech mahindra and satyam computer services

Both civil and criminal litigation cases continue in India and civil litigation continues in the United States.