ABSTRACT
The US$1 billion corporate-accounting fraud at Satyam Computer Services Ltd, in India, came to light in January 2009. The financial world was stunned when Chairman Ramalinga Raju resigned and announced publicly that he had falsified his company’s balance sheet. The scandal was quickly dubbed India’s Enron. Besides financial implications, much more was at stake. Satyam was an example of India’s growing success in its transition into a global economy. The objective was to protect India’s image as the information technology hub of the world along with saving the company. In less than half a year, the company’s assets were boosted miraculously by as much 20 percent. This was possibly the only instance in the corporate world where, after such a big fraud, a company was brought back on the rails without any financial support or bailout from the government.
