The complete Question is attached in the file.

AQ068-3-3-FOACC        4
AQ068-3-3-FOACC
Table of Contents
Solution A    3
Background    3
Perpetrators    3
Modus Operandi    3
Final Judgement    4
Solution B    4
Solution C    6
References    8
Solution A.
Background
    Satyam Computer Services Ltd was an Indian company which was started in the year 1987. The company was headquartered in Hyderabad by Rama Raju and Ramalinga Raju. During the beginning phases the company was a great success and was being listed on the Indian Stock Exchange. It was listed on the Mumbai Stock Exchange in the year 1991 where the shares were being oversubscribed by 17 times. In the year 2006, Ramalinga Raju was elected as the Chairman of the company and under his leadership the company’s revenue touched 1 billion and surpassed 2 billion by the end of 2008. The company was spread in more than 200 countries globally.
Perpetrators
    The tension began to loom when Satyam Computer Services Ltd began to merge with the company called Maytas. Maytas was a firm which was being managed and directed by Raju’s family. Due to the merger of the two companies, there were rise of several legal issues leading Raju’s brother in trouble. Suddenly, Raju resigned from the position as a chairman and then released a 5-page confession letter. It was investigated and was discovered that there was a fraud of 7000 crores committed by the Chairman of the company.
Modus Operandi
    The modus operandi of getting engaged in such a big scam is to increase the revenue of Maytas in a fictitious manner. Therefore, it was due to the increase in the revenue projection, resulted in an increase in the company’s profitability. It was due to this reason; a lot of investors were being attracted in order to increase the price of shares reach a new height. Both the brother were the company’s promoter and founders. They took this opportunity and also sold their holdings at a much higher price. Hence, they took a profit to the amount of 1200 crores by selling the shares held by them. The brothers tried to alter and adjust their books of accounts as well as their bank statement which acted in their favor. It was the Raju brothers who used their assets for developing an ERP system for the purpose of accounting. There were several loopholes in the system and therefore it was due to this reason the fictitious invoices and the forged bank statements became a normal practice for the two brothers. Hence, it was the projected bank statement which held more money compared to the actual amount. Therefore, they tried to convert the money into a fixed deposit account which amounted to approximately 5000 crores (The Economic Times, 2020).
    Ramalinga Raju created numerous bank statement for inflating the balance sheet with the amount of cash which actually did not exist. It was the global head of the company which conducted the internal audit and created a fake customer identity and forged invoices for inflating the revenue of the company. Therefore, it allowed the company an easy access to loans and had an impression of success which led to an increase in the price of shares. Further, the cash which was being raised by Satyam Computers from the US markets was never considered a part of the balance sheet (Sec.gov, 2011). Yet, this was insufficient for Raju as he went towards creating fake employee records and used the funds and drew salaries in fake names. This resulted in an enhancement in the share price of the company and maintain just the exact amount to be a part of the company. Raju withdrew around $3 million every month in the form of salaries for the employees which actually did not exist (Almeida, 2021).
Final Judgement
    It was the Central Bureau of Investigation (CBI) who took charge of the case and began to investigate. Both the brothers were being put behind the bars and were charged with huge amount of penalty (Mint, 2009). Later, Tech Mahindra took over Satyam Computers. Post happening of the scam it was the Indian Government and the Securities and Exchange Board of India (SEBI) who took steps in order to tightened the rules for protecting the rights and money of the investors (Samaddar, 2020).
Solution B.
    The Satyam Scam was a fraud which was...