Question

Settings 06 Discussion Question Unlocked: Monday, February 24, 2020 12:00 AM EST - Sunday, March 1, 2020 11:00 PM EST. Subscribe Search the internet and find an instance of "Earnings Mismanagement" and "Fraud" in your pathway. In a minimum of 3 paragraphs, tell us: • The company name in the subject line of your post). • Why this company interests you. . When they did it • Describe in detail what they did and how they got caught. • Tell us what the consequences were to the individuals responsible. • Cite at least two sources for your information. Examples of businesses in pathways could be: • AHCD: Dance, Theater, Film production, Social media, Graphics design or architecture business Business: Accounting office, caterer, advertising firm, dry cleaner, restaurant, any business is acceptable • Education: K-12 tutoring, Child care, Charter schools • Health Sciences: Dr. or Dentist office, PT office, Hospital, Insurance co, • IMCT Engineering Co., Aviation maintenance, Aviation distribution, Supply Chain Management • Public Safety: Law office, PI, Equipment providers for the industry • STEM: Engineering Co., Vet. Office, Computer Services co. ORADNAN

Answer 1

1

Company?

SATYAM Computer Services Ltd or Mahindra Satyam

2

Why the company interests me?

It was India's 4th largest company and was also named as " IT crown Jewel". They boosted around $1.5 billion of Revenue

3

When they did it?

2009

4

Describe in detail what they did and how they got caught?

The company misrepresented its accounts both to its board, stock exchanges, regulators, investors and all other stakeholders.They Falsified Revenues, Margins and cash balances to the tune of 50 Billion INR

On 7 January 2009, the chairman of Satyam, Byrraju Ramalinga Raju, resigned, confessing that he had manipulated the accounts of Rs 14,162 crore in several forms. HE admitted the Fraud in a Letter to the company's Board of Directors.In February 2009, CBI took over the case and filed three partial charge sheets (dated 7 April 2009, 24 November 2009, and 7 January 2010), over the course of the year. All charges arising from the discovery phase were later merged into a single charge sheet.On 10 April 2015, Byrraju Ramalinga Raju was convicted with 10 other members

5

Consequences

The court awarded Ramalinga Raju with 7 years of imprisonment and imposed a penalty of INR 5 Crore on him . He was also found guilty under section 409 of IPC for Criminal breach of trust. The other Eight accused Were found guilty under section 467,468,471 and 477A of IPC relating to forgery of security, forgery for purpose of cheating and falsification of accounts.

6

Cite atleast two sources of information

www.accountingdegree.org

WWW.hindustantimes.com