Case Study on Financial Statements Manipulation at Maytas Infra Ltd

1. INTRODUCTION:
Maytas Infra Ltd., a Hyderabad-based infrastructure development company, was
embroiled in a significant financial scandal in 2009. Founded by B. Ramalinga
Raju, the same individual behind the infamous Satyam Computer Services fraud,
Maytas Infra became the center of attention due to its financial irregularities. This
case study delves into the events surrounding the financial statement
manipulation at Maytas Infra, examining the methods employed, the
consequences faced, and the lessons learned.
2. BACKGROUND:
Maytas Infra was established as a subsidiary of Satyam Computer Services,
focusing on infrastructure projects such as roads, bridges, and urban
development. The company's operations were closely linked to Satyam, with both
entities sharing leadership and resources. In December 2008, Satyam announced
plans to acquire Maytas Infra and Maytas Properties for $1.6 billion, a move that
was met with shareholder opposition and eventually called off. However, the
connection between the two companies would soon lead to financial scrutiny.