1. Does Ramalinga Raju's assertion that this fraud only started as a marginal gap change the ethical question here? Would the situation be different if there was evidence that there had been a deliberate intent to deceive investors from the beginning?
2. Why do you think Satyam's board of directors refused to support the proposed purchase of the construction companies?
3. Outline the similarities between the Enron scandal and Satyam Computer Services' situation.
4. PricewaterhouseCoopers (PWC) made a public commitment to cooperate with investigators. Did theSatyam situation represent the same threat for PWC as Enron did for Arthur Andersen? Why or why not?
5. Will the response of the Securities and Exchange Board of India be enough to prevent another scandal like Satyam? Explain.
6. What challenges will the new owners of Satyam be facing? Explain.
In December 2008, one of the largest players in India's outsourcing and information technology sectors, Satyam Computer Services, fell from grace with such force and speed that the reverberations were felt around the globe. Ironically, the name Satyam means œtruth in Sanskrit, but the company, founded by brothers Ramalinga and RamuRaju, now has a new nickname: India's Enron.