It would have been impossible to complete this project on

“Failure of Satyam due to failure of corporate governance” without

the help of a number of sources. I would like to place my gratitude to
all those, whose cooperation are vital for the success of this project.
Words can never be enough to express my deep sense of
gratitude to Mr. Chandan Sahoo, Project Guide, for his invariable
suggestion, guidance and constant encouragement that helped me to
tide over potential dead ends and pitfalls.
Last but not the least I acknowledge the help provided by my
batch mates who were always by my side.

Submitted By

Rojalina
Nanda
Roll No-
310SM1015
 Executive summary

The Satyam saga is a complex case that raises many questions. On the one
hand, these questions are about the role of board directors, the possible
complicity of auditors, and the efficacy of regulator oversight. On the other
hand, the case raises profound doubts about the basis of growth in emerging
markets. On yet another level, one has to wonder if companies from countries
with less advanced corporate governance frameworks should really engage in
the masochistic exercise of going public and raising money in markets which
hold them to tougher standards of growth and profitability, and then watch them
like hawks to ensure those expectations are delivered upon.

There is inevitable collateral damage within India. Institutional investors are

hardly likely to be happy about the lead-balloon like drop in the share
price although some, like Sundaram BNP Paribas, offloaded their stake, ‘before
the event’ as they naively point out.

Because this failure of corporate governance raises a red flag

for businesses seeking partnerships and joint ventures in India. There is a
systemic angle to it, of course, in terms of regulatory oversight or the role of
auditors as I mention earlier. But that can happen in the best regulated, stable,
‘developed’ economies as evidenced by the CDO crisis, the Mad off crisis and of
course, Enron. The solutions will have to take into account all the various
possible weak links.
 CONTENTS

TOPICS Page no.

Introduction 1
Importance 3
SCOPE 4

OBJECTIVE 6

CORPORATE GOVERNANCE NORMS 8

& IT’S IMPORTANCE

Corporate Governance In India 10

SATYAM COMPUTERS 12

Hypothesis 21

Research Design 22
SWOT Analysis 23
Conclusion 24
Reference 25