1.Greater emphasises on short term performance-
Raju had a strong desire for success or achievement and he wanted to become a leading player in supplying outsourced IT services to clients so to achieve this goal raju emphasised on achieving short term performance of satyam
2. Greed for money, power,success and prestige-
Greed for money, power,success and prestige compelled mr.Raju to “ ride on tiger” . his greed overshadowing the responsibility to meet fiduciary duties- duty of care, duty of loyalty.
3.Whistle blower policy-
Whistle blower policy of satyam not being effective.
4.Opaque disclosure strategy- Satyam adopt deceptive reporting practices. There was lack of transparency.
5.Inflated financial statement –Satyam presented a inflated financial report by understated liabilities, overstated debtors position and claimed false revenue. The benefit of falsifying SATYAM accounting was increasing satyams stock prices and the appearance of continued growth.
6.False invoices-
Satyam adopted a system to create false invoices. SRP, OPTIMA, ONTIME, IMS are computer applications through which satyam creates false IDs of project and invoices. Satyam created 7500 false invoices of Rs.5118 crore. CBI investigated that Ist fraudlent invoices went through the companies book in 1999.
7. Audit failure- Auditors fail to performed their duty both internal auditors and external auditor.
Fake invoices were ignored
The matter was not reported to audit committee.
Cash and balances were not verified
The auditors did not do beginning to end transactions verification
Serious findings of the auditing team were ignored by the audit team leader
Auditors were more faithful to promotors rather than to the company because promoters paid 4 times fees to auditors .
8.Decision to acquire MAYTAS-
SATYAM planned to acquire a 51% stake in MAYTAS
