Presented By:

Ankita Gupta
Ankita Yadav
Sneha Gupta
Mani Sharma
Toshiba Shakir
and
Tripti Singh
Chandel
 P R E S E N TA T IO N
ON
S A T YA M S C A N D A L
Contents
Introduction.
 About Mahindra Satyam.
 Corporate Identity and Industry presence.
 Ramalinga Raju
Satyam Scandal
 Reasons
 Balance sheet
 Stock Market Reaction
Effect of scandal in Indian Economy
Events leading to fall.

Introduction
Satyam Computer Services Limited


was founded in 1987 by Mr. B

Ramalinga Raju. The company offers
consulting and information technology
services spanning various sectors,
including engineering and product
development, supply chain
management , client relationship
management , business process
management and business
intelligence. The company listed on
the New York stock exchange,
national stock exchange, and the
Mumbai stock exchange. In June
2009, the company unveiled its new
brand identity “Mahindra Satyam”.
About Mahindra Satyam
It spans over 60 countries in the world.
Development and delivery centres are located in
US, Canada, Brazil, UK , Hungry, Egypt,UAE,
India, China, Malaysia, Singapore and Australia.
Development centres in india are Banglore,
Chennai, Pune, Mumbai, Delhi, Kolkata,
Bhubaneswar and Visakhapatanam.
About Mr. B.Ramalinga Raju
Byrraju Ramalinga Raju was born
onSeptember16,1954.
A traditional agricultural family of the
KSHATRIYA (RAJU)Community of Andhra Pradesh.
He founded Satyam Computers and was its
Chairman until January 7, 2009 when he
resigned from the Satyam board after
admitting to corporate fraud. Satyam was
until recently perceived to be amongst the
top Indian IT vendors. Raju has admitted to
overstating the company's cash reserves by
USD$ 1.5 billion. Later, a person involved in
the investigation of the company said that
the company's assets were not inflated, but
instead siphoned off by Ramalinga Raju. Raju
is currently held in Hyderabad's
Chanchalguda jail on criminal charges
including fraud, forgery, cheating,
embezzlement and insider trading. He was
hospitalized in September 2009 following a
CARREAR
He was first businessman in the field of
construction and textiles.
Raju founded Satyam in 1987 .
He started an satyam computers with
20 employees in 1987
Satyam was listed in INDIAN STOCK
EXCHANGE in 1991.
And listed in NEW YORK STOCK
EXCHANGE in 2001.
continued………

CARREAR
He was first businessman in the field of
construction and textiles.
Raju founded Satyam in 1987 .
He started an satyam computers with
20 employees in 1987
Satyam was listed in INDIAN STOCK
EXCHANGE in 1991.
And listed in NEW YORK STOCK
EXCHANGE in 2001.
continued………

Satyam was listed in UNESCO(amsterdum) in 2008.
There was 52000 employees are working in
september 2008

 Awards
Ernst & Young Entrepreneur of the Year
Services Award 1999
Dataquest IT Man of the Year Award 2000
Asia Business Leader Award 2002
Ernst & Young Entrepreneur of the Year 2007
(revoked after the fraud was confessed)
Golden Peacock Award for Corporate
Governance 2008 (revoked after the fraud
was confessed)
mployees spread over many countries. Raju
showed a strong social orientation and has
been furthering the cause of social
transformation through Byrraju Foundation
and EMRI[1]. As of November 28 2009, Mr
Satyam Scandal
 The Satyam Computer Services scandal was
publicly announced on 7 January 2009, when
Chairman Ramalinga Raju confessed that
Satyam's accounts had been falsified. In
addition to other controversies involving
Satyam, on January 7, 2009, Chairman Raju
resigned after publicly announcing his
involvement in an accounting fraud. Ramalinga
Raju is currently in a Hyderabad prison along
with his brother and former board member
Rama Raju, and the former CFO Vadlamani
REASONS
Raju wanted to take over his MAYTAS INFRA
and MAYTAS PROPERTIES.(company of their
sons).
He was blamed tht he was using the funds of
the investers for the family business.
World bank had banned the satyam to take any
services for 8 years (due to illegal profit and
lack of essential document).

Satyam in stock exchange
Mahendra Satyam in stock
exchange
Before the scandal it’s share price was Rs 300
in oct 2008.
Just after this scandal the share price go down
to Rs 6.30.
Before the scandal Satyam was the 4th ranked
among IT companies of India and on 9th
jan2009 it became least valuable IT company
in India.
Present time it’s share price is 107.89.
Mahendra Satyam’s market growth is
7,800caror.
According the recent survey Mahendra Satyam’s
rank is 7th among the IT companies of India and
Satyam's balance sheet of 30
September 2008 contained:
inflated figures for cash and bank balances of Rs 5,040
crore (US$ 1.04 billion) (as against Rs 5,361 crore (US$
 1.1 billion) crore reflected in the books)
an accrued interest of Rs. 376 crore (US$ 77.46 million)
which was non-existent.
an understated liability of Rs. 1,230 crore (US$ 253.38
million) on account of funds was arranged by himself.
an overstated debtors' position of Rs. 490 crore (US$
 100.94 million) (as against Rs. 2,651 crore (US$ 546.11
million) in the books).
Raju claimed in the same letter that neither he nor the
managing director had benefited financially from the
inflated revenues. He claimed that none of the board
members had any knowledge of the situation in which
the company was placed.
Balancesheet Of Mahendra Satyam
Effect of scandal in Indian
Economy
 Events Events leading to
fall
2008
December 16- Satyam Computer Services

announces $1.6 billion acquisition of 100% stake in

Maytas properties and 51% stake in Maytas Infra,
both promoted by Ramalinga Raju and sons.
December 17-Satyam-Maytas deal is scrapped

following investor-shareholders rebellion. Raju

mulls on the share buyback
December 24-World Bank bars business with

Satyam for 8 years starting September 2008.

December 25- Academician and independent

director Mangalam Srinivasan exits from Satyam on

Christmas owning moral responsibility for not
voting against it.

 Events leading to the

fall…
December 28- Satyam Computer defers crucial
board meet from December 28 to January 10.
December 29- Satyam appoints DSP Merrill

Lynch to review strategic option and assess

implications of possible dilution of Ramalinga
Raju`s stake; Non-executive director Krishna
Palepu and in dependent director Vinod Dham
resign from board.
December 30- Satyam`s board nearly halved

as Indian school of Business dean Rammohan

Rao also quit.

 Events leading to the

fall…
2009
January 2- Satyam discloses to stock
exchange that Raju and his family have
pledged all their shares, held in a corporate
entity SRSR limited, to institutional lenders.
January 3-Ramalinga Raju`s stake in Satyam
falls to 5.13% from 8.27% as lenders sell
shares.
January 6-Ramalingu Raju`s stake falls further
to 3.6% from 5.13%.
 January 7- Chairman Ramalinga Raju and MD
Rama Raju resign.

 Maytas Infra Files Criminal Case Against Vedanta Aluminium

Conclusion
 Maytas
Infra Files Criminal Case Against Vedanta
Aluminium
CBI Registers FIR Against Raju
And Others In Satyam Scam
Satyam Computer Gets CLB's Approval For St
Government Set To Take Over Maytas
Infra And Maytas Property
CBI To Probe Satyam Accounting Fraud Case
IDBI, BoB
And LIC To Bailout Satyam With Rs 600
Crore Loan

 Satyam Board Appoints Old Timer AS Murty As CEO

IDBI, BoB
And LIC To Bailout Satyam With Rs 600
Crore Loan
Andhra CM Y S Reddy Seeks CBI Probe Into S
 Satyam Board Appoints Old Timer AS
Murty As CEO
Kiran Karnik
Appointed As The Chairman Of Satyam Com

Supreme Court Permits SEBI To Interrogate
Ramalinga Raju And His Brother
Satyam To Get Excellence In Practice Award
Maytas Infra Director C.S. Bansal Resigns
Hyderabad Court Sent Gopalakrishna Raju
To Police Custody
Spice Group Interested In Scam-Tainted Satyam
Computer
Karnataka Government To Replace Maytas
Infra In Two Airport Projects


Hyderabad Court Rejects Bail Plea Of
Satyam's Ramalinga Raju And Others
Satyam Names Investment Bankers, To Pay Ja
Embattled Satyam Computer To Get New CEO
The Judicial Custody Of B Ramalinga Raju
And Others Extended Till January 31
Fraud-Hit Satyam Computer Seeks Emergenc

Maytas Chief Executive P.K. Madhav
Resigns From Board
Vedanta Alumina Terminates Maytas
Contract In Orissa
Satyam Co-Founder B Ramalinga Raju's
Bail Petition Deferred To January 22
Satyam Co-Founder B Ramalinga Raju's
Bail Petition Deferred To January 22
Tarun Das, T.N. Manoharan And Suryakant
Balakrishnan Also Join Satyam Board

Government Not To Bail Out Satyam Compute
Fraud-Hit Satyam Gets KPMG And Deloitte As
 
Govt. Plans Rs 2000 Crore
Bailout Package For Satyam
TR Prasad Resigns From GMR Infra Board Ove
Satyam To Be Probed By Serious Fraud Invest
