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SATYAM Scandal in
Indian Corporate
Sector”
A Project Report
B. Ramalinga Raju
Founder & Chairman
Satyam Computers Ltd.
B. Rama Raju
Promoter & CEO,
Satyam Computer Ltd.
SHYAM LAL COLLEGE(E)
• Submitted by: Submitted to:
• N.G.PRAVEEN Dr. R.K.MALIK
• Roll No. 3653
• NAME: N.G.PRAVEEN
• ROLL NO: 3653
Introduction
• Founded in 1987 by B.Ramalinga Raju.
cont….
`
NO CASH BALANCE
ACCRUED WAS 320 CRORE,
INTEREST INFLATED TO
5361.32 CRORES
UNDERSTATED
LIABILITY OF
1230 CRORES.
How the Fraud was Uncovered
• On January 7, 2009, Mr. Raju disclosed in a letter
to Satyam's Board of Directors that he had been
manipulating the company's accounting numbers
for years. Mr. Raju said the manipulation started
out small, and grew larger by the year. In the letter
he stated, "It was like riding a tiger, not knowing
how to get off without being eaten." Mr. Raju
stated that eventually, the stress of hiding the fraud
grew too much for him to bear
• "It was like riding a tiger, not knowing how
to get off without being eaten." Mr. Raju
stated that eventually, the stress of hiding
the fraud grew too much for him to bear”
AFTERMATH
• The Indian stock market fell dramatically upon the
disclosure of the Satyam scandal. Indian
authorities quickly started an investigation and
pursued criminal actions that ensnarled Satyam's
executives, auditors, and Indian politicians.
Satyam successfully emerged from the crisis
through an asset sale during the spring of 2009.
The authorities' swift actions also restored
confidence in the Indian securities markets.
HOW DOES THE SCAM
MATTER TO THE NATION ?
• JOB’S OF OVER 50,000 TECHNOCRATS WERE AT
RISK
.
• COUNTRY’S BOOMING ECONOMY FEARED
SLIGHT COLLAPSE AS COUNTRYS GDP FELL BY
ESTIMATED 0.4%.