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satyam scandal

satyam scandal

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Published by nitin garg
this presantation fully based on satyam scandal represantated by nitin garg and with group member
this presantation fully based on satyam scandal represantated by nitin garg and with group member

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Published by: nitin garg on Aug 01, 2010
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08/02/2010

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TEAM PRESENTATION

Team Presentation On Satyam Scandal Truth

ON Satyam Scandal
Presented By: Durgesh Tiwari Nitin Garg Surendra Kumar

SATYAM

89

SATYAM - THE UNSEEN TRUTH

Do You Know Him?

B RAMALINGA RAJU FOUNDER AND FORMER CHAIRMAN OF ONE OF THE BIGGEST IT COMPANYOF OUR NATION ´SATYAM COMPUTERSµ ««««««««««

Journey Begins
«..
He did his MBA from Ohio University, USA. trip to the US for his education changed his destiny Back to India in 1977 and initially developed a textile industry named Sri Satyam. Then he ventured into real estate business under the name Satyam Constructions

SATYAM COMPUTERS 
Satyam Computer Services Ltd was founded in 1987 by B.Ramalinga

Raju. 
Head Office in Hyderabad. It specializes in customized IT solutions for industries in the areas of

Manufacturing, Financial services, Insurance««etc. 
Fourth largest it outsourcing company of India. Employees more than 50,000 people in India Satyam's network covers 67 countries across six continents. Satyam provides services to more than 550 MNC¶s .

Magic That Changed His Life 
On 24th June,1987 company was incorporated as

SATYAM Private Limited Co by B Rama Raju and B.Ramalinga Raju 

On 26th August, 1991 it was converted into a

Public Limited Company.

1992
The Company went in for a Public Issue of Equity shares. The company has created infrastructure facilities at Secunderabad, Hyderabad and Bangalore. Installation of 64 kbit/s satellite link, which provides the way for online access to global clients. The launch of Satyam Infoway (Sify) .Satyam became one of the first to enter Indian internet service market.

ACHIEVEMENTS 
March 1995 ± First ISO 9001:2000 Company in the
International)

world as certified by BVQI (Bureau Veritas Quality 

19th Oct,1999 - Satyam Infoway becomes the first

Indian Internet company to be listed on NASDAQ. receives Ernst & Young Entrepreneurship (Services) Award named "IT Man of the Year" by Dataquest 

17th Sep,1999 - Satyam Chairman B. Ramalinga Raju 

22nd Dec,2000 - Satyam Chairman Ramalinga Raju  15th May, 2001 - Satyam listed on New York Stock

Exchange

SATYAM SNAPSHOT
27th Sep, 2002 - Satyam wins Golden Peacock Award for Excellence in Corporate Governance. 11th Oct, 2002 ±Wins CNBC's Asian Business Leader Corporate Citizen of the Year Award. In 2003 - Satyam Computer Services honoured with prestigious IBM Lotus Award. 21s July,2005 - Satyam acquired Singapore-based Knowledge Dynamics.

In 2006
Achieved global certification y ISO 9001 (Quality management), y ISO 20000 (Information technology service management for Infrastructure Management Services and Network & Systems), y ISO 27001(Information Security Management standards) y First organization in the India to launch Customer-Oriented Global Organization training Satyam¶s revenue crosses U.S $1.4 billion & joined the Billion Dollar Club as it's youngest Indian member

THE GOLD OF GOLDEN PEACOCK ROBBED

In September 2008, Satyam Computer Services had received Golden Peacock Global Award .

3 months later

JAIL IS THE ONLY REWARD

Satyam Scam

B.R.Raju¶s confession ³ it was like riding a tiger, not knowing how to get off without being eaten´

Black faces of India It

Ramalinga Raju (Satayam)

Dinesh Dalmia (vice Chairmen) (DSQ Software)

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
y Raju wanted to take over his MAYTAS INFRA and

MAYTAS PROPERTIES.(company of their sons). y He was blamed tht he was using the funds of the investers for the family business. y World bank had banned the satyam to take any services for 8 years (due to illegal profit and lack of essential document).

ACCOUNTIND SCANDAL OF 2009

Fabricated income statement ³creative account practice´
Actual Reported Difference

Particular
Cash & bank balance Accrued interest on bank Fd Understated liability Overstated Debtor Total Revenue Operating Profit

321 5,361 Nil 376.5 1230 Nil 2126 2651 2,112 2,700 61 649

5040 376 1230 490 7,136 588 588

What is Fraud

5,040+376+470(cr)

Rs 1230 (cr)

Rs 7136 (cr)

Overstated cash Balances,income receivables

Understated Liabilities

Fraud Amount

‡ So what were the auditors, ‡ There was no cash with in the company's banks and yet the auditors went ahead and signed on the balance sheets saying that the money was there. ‡ Not just the cash, even they even signed off on the non-existent interest that accrued on the non-existent cash balance! ‡ The company officials said they relied on data from the reputed auditors.

IMPACT

IMPACT OF SATYAM

Impact on India
y It is surely going to be more difficult for other Indian

IT service players to win business.
y Undoubtedly, this is going to hurt the prospects of

foreign money flowing into India.
y Global perception about indian companies.

Impact on stock market
y It is biggest fraud in stock market. y Sensex 7 % decline on 7th January 2009

Share price of satyam
y before 7th jan 2009 it cost was 500Rs per share y After 7th jan it cost is 59.5Rs per share y Now it cost is 100Rs per share

Satyam market share

Recent likely changes in policies and Regulations
y SEBI announced special norms for takeover of

distressed companies. y The ICAI is favoring 3 year rotation of auditors. y ICAI to seek information from the CA concerned and not from the firm in case of anomalies. y ICAI is planning to set up a rating system for Corporate Governance.

New vice chairmen & managing director

Board Members
y C.P. Gurnani y Vineet Nayyar y C. Achuthan y T.N. Manoharan y Sanjay Kalra y ULHAS N. YARGOP

Tech Mehindra wins bid for satyam scam
y Tech Mahindra is paying Rs1757 crore y for a 31% stake in the company, or Rs 58per share. y Satyam Computer Services has now zoomed 15% to Rs

54.20 ahead of the announcement of the highest bidder for the company on April 13,2000

SATYAM TO MAHINDRA SATYAM
y MahindraSatyam. y Type : Public y BSE:500376 y NYSE: SAY ADR y Founded : 1987 y Headquarters: : Hyderabad, India y Key people: : Vineet Nayyar (Chairman)
y Industry

Owner(s) Website

C.P. Gurnani (CEO) A. S. Murty (CTO) : IT Services IT consulting Software services : Mahindra Group : MahindraSatyam.net

CONCLUSION
‡Satyam bifurcating the word, we may interpret one who had stolen & transferred your all money stolen & trans ferred your all money in its own kitty. Let this be the lesson for all the investors & the whole economy. ‡We also wish that the company stands once again whooping investors not with the false promises but in accordance with its name that is TRUTHFULNESS.

Raju raju set up on the wall Raju raju had great fall Balance sheet died Share holders cried Raju raju made a fraud

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