It’s perhaps India Inc’s worst-kept secret— promoters siphoning out cash from their companies’ operations. Here’s how they do it. Anand Adhikari goes into the details.
The Satyam scandal does no favours for the IT services sector and for overall investor sentiment.
On a number of occasions, we have been told, “Utna hi likhiye jitna mere Rs 7 a copy ki cost mein fit ho sakey.” So, information is rationed, pages trimmed and printing cost strictly controlled.
As past financial scandals reveal, small investors get the roughest end of the stick.
Is the Rs 7,000-crore fraud that B. Ramalinga Raju resorted to an accounting scam—done to prop up valuations of the IT giant—or was the promoter siphoning out money from a fundamentally sound company? E. Kumar Sharma finds out.
Satyam’s auditors and independent directors failed to catch on to Raju’s scam. Auditors Pavan Kumar Vijay and R. Ramakrishnan, working with BT, show how dodgy numbers were ignored all along. Puja Mehra reports.
Ramalinga Raju began his entrepreneurial journey in software way back in 1987. He was a meticulous strategist who was fuelled by a burning desire to make it big. He didn’t know where and when to stop. E. Kumar Sharma reports.
Few Indian promoters could conjure up a fraud of the magnitude that Ramalinga Raju has. Like Raju, however, a clutch of Indian promoters face a real danger of losing control over their companies, courtesy their pledging gambit. Virendra Verma & Rachna Monga report.
The Rajus’ fascination with real estate might have strangled the golden goose that was Satyam.
The darker part of the cloud of uncertainty over Satyam looms over its 53,000 employees, many of whom are in no mood to throw in the towel.
Three auditors reveal to BT, the dubious nexus between auditors and corporate management.
We also found a company that has been reporting the same cash flow statement for three years running, word for word, number for number, decimal place for decimal place.
Was Ramalinga Raju’s fraud planned to beat audits or were Satyam’s auditors plainly ineffective? Is the auditing system independent and robust enough?
What is it? A company called CPP is offering a service to store all your credit card details.
Each month, we ask a beautiful woman about men, sex and relationships. This month, it’s Amrita Rao, model and now actress. She’s currently single and lives in Mumbai.