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ERM (Adani Group Milestone 3)

The report analyzes corporate fraud, focusing on the Adani case in comparison to Enron and Satyam, emphasizing similarities in lack of transparency and regulatory scrutiny, while noting differences in operational status and legal consequences. Key lessons include the need for stronger oversight, better transparency, independent audits, legal accountability, and investor protection. The findings suggest that past fraud cases underline the importance of enhanced corporate governance to prevent future financial scandals.

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Shashank
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68 views4 pages

ERM (Adani Group Milestone 3)

The report analyzes corporate fraud, focusing on the Adani case in comparison to Enron and Satyam, emphasizing similarities in lack of transparency and regulatory scrutiny, while noting differences in operational status and legal consequences. Key lessons include the need for stronger oversight, better transparency, independent audits, legal accountability, and investor protection. The findings suggest that past fraud cases underline the importance of enhanced corporate governance to prevent future financial scandals.

Uploaded by

Shashank
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

International School of Business &

Media
Bangalore

Subject: Enterprise Risk Management

Submitted By: Chaitanya Dubey(B2325035)


Submitted To: Prof. Monika Agarwal
Corporate Fraud and Lessons from the Adani Case

Corporate fraud has major effects on financial markets, rules, and business practices. This report
compares the Adani case with past fraud cases like Enron and Satyam, highlighting their similarities,
differences, and key lessons.

Key Comparisons

Aspect Adani Group Enron (2001) Satyam (2009)

Stock manipulation, offshore


Main Hiding debt, inflating Fake accounts,
shell companies, related-party
Allegations profits misstated revenue
deals

SEC investigation, Indian authorities


Regulatory Under investigation (SEBI,
bankruptcy, executives took action, founder
Response global scrutiny)
jailed jailed

Impact on Stock price swings, Total collapse, huge Stock crashed,


Investors governance concerns investor losses investors lost money

Founder convicted,
Legal Executives convicted,
No major penalties yet company later
Consequences company shut down
revived

Stronger corporate
Reforms Calls for better governance Sarbanes-Oxley Act
governance rules in
Triggered and transparency (SOX) in the U.S.
India

Similarities & Differences

Similarities:

● Lack of Transparency – All cases involved hiding financial details.

● Regulatory Scrutiny – Each case led to strict investigations.

● Stock Market Impact – Investors suffered losses.

● Global Attention – Showed risks of weak corporate governance.

Differences:

● Impact – Enron and Satyam collapsed; Adani is still operational.

● Legal Action – Enron and Satyam faced strict legal consequences, while Adani’s case is
ongoing.

● Reforms – Enron led to U.S. corporate law changes (SOX), while Satyam improved Indian
governance laws.

Key Lessons

● Stronger Oversight – Authorities must strictly enforce corporate rules.

● Better Transparency – Companies should clearly report ownership and financial dealings.

● Independent Audits – External auditors must be truly independent.


● Legal Accountability – Stronger laws should prevent fraud and punish guilty executives.

● Investor Protection – Regulators should safeguard investors from corporate fraud.

Conclusion

Though Adani’s case is still being investigated, past fraud cases like Enron and Satyam highlight the
need for stricter corporate governance, better transparency, and strong legal action to prevent
financial scandals.

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