Enron Fortune 500 company Largest power and natural gas company Revenue- $100 bn 1992- Dhabol power contract in India 2001- suddenly reported losses of.

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Enron Fortune 500 company Largest power and natural gas company Revenue- $100 bn Dhabol power contract in India suddenly reported losses of $600 bn SEC investigated and found frauds Filed bankruptcy in 2001

Enron – unethical practices Heavy political donations Influenced public policies for own benefits Dubious accounting policies (overstating profits) Shifting losses to subsidiaries Kept of debt from Balance sheet to protect rating

Enron Arthur Anderson (Auditors) collapsed Many Executives jailed Sarbanes Oxley Act passed

Worldcom Large telecom service provider More than 60 M&As CEO with no telecom expertise Board left everything to CEO Only motive was to show profits Capitalised large revenue expenditure Inflated profits

Worldcom Submitted dubious financial statements to SEC Irregular entries in accounts on verbal instructions Company collapsed in Jan 2004 with huge loses Auditor- Arthur Anderson, colluded CEO awarded 25 years jail