Satyam scam was most talked about IT scam during 2009. It was a IT co. owned by Mr.Ramalinga Raju named as Satyam Computer Services. On 7th jan ,2009 r.raju admitted that he has manipulated its a\c’s. The whole scandal was about 1.47 billion dollars says an cbi report. Earlier in 2008 satyam was awarded with Golden peacock award for best corporate governance which was taken back in 2009.Also SEBI removed satyam from NSE .

Satyam’s share which were costed for Rs.544 in 2009 felldown to Rs.11.50 PWC gave a statement that “we relied on the false information provided by Satyam computer services which caused financial statements inaccurate and unreliable “

CBI found that Raju has overstated 13000 employees in his books and withdrew $200 million every month

Central gov.t of India appointed A.S Murthy as the new CEO of Satyam computer services. On 4th nov. 2011 Raju was released due to lack of evidences on bail but the case was still open .On 9 Apr 2015 Raju was found guilty of collaborating to inflate the co. revenue falsifying accounts and income tax returns, and fabricating invoices, among other findings, and sentenced to seven years imprisonment by Hyderabad court.

Further on 13th Apr 2009 taking advantage of the opportunity Tech mahindra purchased Satyam for diversification at an auction.

Before this scandal auditors used to take guarantee of all the vouchers presented by the co. that they are reliable and accurate which led to cancellation of license of all the auditors of Satyam by ICAI but now auditors say that they do not take any guaranttee whether these evidences are true and fair or not and they are not responsible for it.

As on Jan 11, 2017 SEBI found PWC guilty and barred the auditors of Satyam named price waterhouse coopers for 2 yrs and penalized it for Rs.13 cr

Price Waterhouse Bangalore and its two erstwhile partners — S. Gopalakrishnan and Srinivas Talluri — have been directed to jointly and severally disgorge the wrongful gains of “Rs 13,09,01,664 with interest calculated at the rate of 12 per cent per annum from January 7, 2009 till the date of payment”. They have to pay the amount within 45 days.

“We are disappointed with the findings of the SEBI investigations and the adjudication order... we are confident of getting a stay before this order becomes effective,” PwC said in a statement.

SEBI has said its order will not impact the audit assignments relating to the fiscal year 2017-18 undertaken by the firms forming part of the PwC network.

Article by:-                                                                                  

  Kshitiz tayal.