Business Case Studies,Corporate Governance & Business Ethics Case Study, Flour Corp's Business Ethics Practices: Creating Six Sigma Standards in Staying Corruption-Free

Code : GOV0047

Year : 2010

Industry : Services

Region : US

Teaching Note: Available

Structured Assignment : Available

Abstract:
Seventh in the series of Satyam Computers Corporate Governance Fiasco, this case study focuses on the events starting from December 16th 2008 to July 30th 2009, during which the Maytas twins – Matyas Properties and Maytas Infra, underwent huge termoil. The two firms, were thorn in flesh for the investors of Satyam Computers for more than a decade. Acquisition of 51% stake in Satyam Computers by Tech Mahindra had finally censured the umbilical cord of Maytas twins with the parent company.
This case study examines the main factors that forced the two firms into financial crisis after revelations of self-proclaimed fraud by the founder, CEO of Satyam Computers, Ramalinga Raju, whose sons were in-charge of Maytas twins. The guidelines provided by the Company Law Board and the Corporate Debt Restructuring package approved by 18 lending banks provided lifeline for the Maytas firms, which restarted their businesses. However, the Andhra Pradesh government’s cancellation of the concession agreement with Maytas Infra with respect to the Hyderabad Metro Rail project launched the firm in a new incertitude where the company’s brand value and financial viability were threatened. This case study provides a deep understanding of the tough times faced by the Maytas firms, resulting from the exposure of the biggest fraud at its parent company, Satyam Computers. .