Professional Documents
Culture Documents
Satyam Scams
Satyam Scams
Presented By
Mohil Kapoor
Kshitij Kumar
Syed Azhar
Sumit Kumar Goel
Harvinder khanduja
Elizabeth Merin Mathew
Neethu K A
Leeza Ben Joseph
Mishel Elizabeth Jacob
SATYAM
• Set up in the year 1987 to provide First IT Company in the World
services in IT sector Certified under ISO9001:2000
• India’s 4th biggest software Ranked Among India’s Top 10
Best Employers, 2004 and 2003
company in India Top 13 Best-Managed
• It is listed in BSE, NSE, NYSE and Companies in India
Winner, Corporate Citizen I
Euronext (Amsterdam). award for Corporate Social
• BSE IPO oversubscribed 17 times Responsibility
SAP Pinnacle Award 2008
when made public in 1991 Satyam Wins golden peacock
• The company employs 53,000 IT award for excellence in Corporate
professionals across development Governance on Global level for 2nd
time
centers in 6 continents United Kingdom Trade and
Investment India Business Award
for Corporate Social Responsibility
> Chairman and founder Satyam
Computers Services Limited
> MBA from Ohio University
> IT man of the year award by Data Quest
in 2002
> Winner of Ernst & Young entrepreneur
of the year award in 2007
B. Ramalinga Raju
Founder & Chairman, Satyam
Computers Ltd.
Dr M.
Srinivasan Prof. Krishna Mr. Vinod K Prof. M Mr. T R
G Palepu Rammohan Prof. V S Raju
Dham Prasad
Rao
LIC 4.34%
L&T 4%
Lazard
Aberdeen 13.16%
Fidelity
ICICI Prudential
Citigroup
JP Morgan
Total Market capitalization was Rs.
15,262 Cr
(still Dec 16, 2008 )
Satyam Decade at a Glance
Maytas
Mr. Teja Raju(VC)
• The Raju’s hold 36.64 per cent while
institutional holding is 10.92 per cent
• The company had raised Rs 327.45 crore
through IPO.
• It had a turnover of Rs 1,660 crore and net
profit of Rs 100 crore in financial year 2008-
2009.
• Satyam planned to acquire 51 per cent stake
for Rs 1, 440 crore or $0.3 billion
Maytas Properties
B. Rama Raju Jr. (VC)
22 Sep
2006
2008
Centre refers
Satyam deal
to Registrar of
Companies
(RoC)
Time-Line
26 28 29 26 Jan
Dec Dec Dec 2009
Satyam-Upaid case
hearing over the
Maytas deal in Texas
court on January 8.
Time-Line
05 06 26 Jan
Jan Jan 2009
Tech Mahindra
Total pledged shares sold by (Revenues 3766 Cr.)
IL&FS reaches 2.5 Cr. in last offers to merge with
13 days. Promoters stake Satyam (Revenues 8473
Promoters stake in down to 3.6%. Still a further Cr.)
the company down 1.7% are pledged
to 4.5%
Government
hands satyam case 23 year old Maytas stocks
to SFIO employee of satyam hit the lower
commits suicide in circuit for 7th
Chennai consecutive
trading session
• Refusing to resign
• Details of cash balances with Scheduled banks are not there in the
Annual report
Sol
d
his
sta
ke
at
in
fla
te
d
pri
ce
(M
ad
e
Rs.
2,0
65
cr
fro
m
sh
ar
es)
Share Pledging
Harangi Agro
Narayandri Greenfields
Amravati Greenlands Amount (In Rs. Cr)
Bangar Agro
Take FD
The money has
already receipt
vanished
Tell to Banks FD
receipt is Lost
Ask for
Repeat the Duplicate
procedure Receipts
Park the Money
in other Bank Use the Duplicate
to Withdraw
money
Parallel Finance Department ???
Mr. Raju
PWC
Auditors
RamaKrishna
VP Finance
Satyam-Maytas Nexus Contd…..
• Cash raised & siphoned off funds used to buy
several thousands of acres of land across AP
through several benami accounts
The company’s share price has fallen 21.3 per cent since
December 15, the day before the crisis broke.
In the News..
Lessons learnt
• It is a collective failure of directors, auditors and
regulatory agencies in ensuring transparency and
accountability; As a consequence of this fiasco,
the overseas client may take a hard look at most
Indian outsourcing companies and investment
flows could be hit.
• The responsibility for preventing fraudulent
activities lies with the Board of directors. Their
acts and conduct impact the reputation of India
and, therefore, they must ensure that the highest
standards of corporate governance are set.
Lessons learnt( contd.)
• The Quality Review Board ('QRB'), an independent body set up
under the MCA, is looking into the standards of audit for
chartered accountancy firms with a view to redefine new
stringent norms for audit firms. It may ask the SEBI and MCA to
mandate listed companies to rotate their auditors to prevent
Satyam-type frauds - practice being followed in public sector
companies.
• There is a need of time to take the investigation procedure in
effective and efficient way to clear every issue and make it sure
that such incident will not happen again in future, it is necessary
to solve the above questions and to fill the gaps of the loopholes.
Thankyou