Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.

Abstract

This video is to accompany the case. Corporate Governance and corporate frauds induced by conscious promoter-driven malpractices have been burning issues for publicly listed companies especially in nations such as India with poor regulatory environment and poorer regulation records. India has not only witnessed a large number of well-known accounting frauds (such as the recent Satyam Computers example) but also a number of lesser known corporate failures, fly by night operators, and such related issues. This case is about a company, named Silverline Technologies Limited, which became a major Indian Information Technology (IT) player, rose to great heights and then suddenly lost its way and plummeted to great depths. Identifying corporate scams, especially of technology-led companies is difficult, given the fact that most of the financial numbers and related information can be managed by the information generators, namely, the top management with able assistance of the accounting fraternity governing the same. Until now, the failure of Silverline has been blamed on the external environment and also on its faulty acquisition-focused strategy. However, by logically connecting the facts given in this case and using the publicly-available sources of corporate information intelligently - analysts can build a jigsaw puzzle which explains the other possible reasons for this corporate failure. The case also tries to bring in the roles and perspectives of the various stakeholders associated with the company. The case is investigative in nature and reinforces the importance of minutely reading the financial statements to figure out the happenings behind the scenes in a company.
Size:
Market capitalization range over USD1 billion in 2000 to less than USD25 million in 2003, 2,000 employees
Other setting(s):
1997-2003

About

Abstract

This video is to accompany the case. Corporate Governance and corporate frauds induced by conscious promoter-driven malpractices have been burning issues for publicly listed companies especially in nations such as India with poor regulatory environment and poorer regulation records. India has not only witnessed a large number of well-known accounting frauds (such as the recent Satyam Computers example) but also a number of lesser known corporate failures, fly by night operators, and such related issues. This case is about a company, named Silverline Technologies Limited, which became a major Indian Information Technology (IT) player, rose to great heights and then suddenly lost its way and plummeted to great depths. Identifying corporate scams, especially of technology-led companies is difficult, given the fact that most of the financial numbers and related information can be managed by the information generators, namely, the top management with able assistance of the accounting fraternity governing the same. Until now, the failure of Silverline has been blamed on the external environment and also on its faulty acquisition-focused strategy. However, by logically connecting the facts given in this case and using the publicly-available sources of corporate information intelligently - analysts can build a jigsaw puzzle which explains the other possible reasons for this corporate failure. The case also tries to bring in the roles and perspectives of the various stakeholders associated with the company. The case is investigative in nature and reinforces the importance of minutely reading the financial statements to figure out the happenings behind the scenes in a company.

Settings

Size:
Market capitalization range over USD1 billion in 2000 to less than USD25 million in 2003, 2,000 employees
Other setting(s):
1997-2003

Related