The Illusion of Numbers: Strategic Misrepresentation and Board Governance at Satyam

Abstract

This case study explores the internal governance and reporting crisis at Satyam Computer Services during the final weeks leading to its public collapse. Told from the perspective of Prof. V. S. Raju, an Independent Director and Audit Committee member, the case examines how aggressive market expectations, audit complacency, and leadership pressures turned minor accounting tweaks into a systemic corporate failure. Students are invited to evaluate red flags—such as operational disconnects, unverified cash claims, and fake employee headcount—without relying on balance sheet math, focusing instead on internal controls, professional skepticism, and board oversight.

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