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Presented By:

Gaurav Nemade,

CONTENTS

The rise of Satyam Revelation by How did the fraud start? Probable reasons The Illusionists Maytas Why did Investigation

THE RISE OF SATYAM .

1987: Satyam Computers 1991: 2000: 2002 .CNBC's Asian Business Leader Corporate Citizen of the Year Award .THE RISE OF SATYAM ● ● ● ● ● 1994: THE BIG BREAK-Allies with Dun and Bradstreet Corp.

DISASTER .

2009 Accounting fraud of over 7800 crore rupees From past 7 years accounting books were cooked: -Profits were inflated -Understated liability and overstated debts -Accrued interests -The gaps in the balance sheets are due to the Inflated profits .THE DISASTROUS REVELATION The Black day: 7th January.

not knowing how to get off without being eaten”. It was like riding a tiger. .Raju wrote in the confession letter CONFESSION LETTER “Every attempt to fill the gap failed".

.CONFESSION LETTER Topofficials were unaware Top officials were unaware No personal profits. No personal profits.

MINUTES AFTER REVELATION .

2008 Ø .75 Rs/-.Companies worth 77 % Stock Market Satyam shares 1607 Crore All time low of Rs 11. ØCompared to highest of 524.90 Rs/.on may 29.50 on 9th jan and closed at 23.

Search Volume Index .

HOW DID IT START??? .

CFO revealed during investigation: – – – Started 6-7 years ago This marginal gap went on expanding over years. 10 crore was inflated to 200 crore in Balance Shee 7800 Crore Fraud year s .

● V . ● T ILLUSIONIST S ● B ● Ramaling .● S .

THE ILLUSIONISTS ● ● ● ● ● B Rama Ramalinga S Talluri V .

● ● Functions: Functions: ● ● Performs non-core functions of organisations Performs non-core functions of organisations .

.PROBABLE REASONS PRESSURE TO MEET EXPECTATION OVERCONFIDENDCE PERSONAL BENIFITS "Since about seven years we wanted to show more income in the accounts to avoid others from involving in the company affairs and any possible hostile acquisition”.

THE GAME PLAN Click to edit Master text styles Second level ● Third level ● Fourth level ● Fifth level .

• Ignorence of Firm’s Auditors. • Managing director. •Offered to resign twice.MANAGEM ENT AUDIT SEC TION The software firm’s unreal and fictitious fixed deposits were managed with an understanding between the management and audit section . .  Bank deposits were directly handled by the chairman and • Control over CFO.

THE edit Master text styles Click toLAST ATTEMPT Second level ● Third level ● Fourth level ● Fifth level .

The MAYTAS Acquisition ● Major shareholder rebellion Acquisition was termed “Poor corporate governance”. ● ● ● ● . Maytas infra and Maytas properties : firms owned by the sons of Last attempt Planned to buy the Maytas to fill the gap in the balance sheet.

WHY DID RAJU CONFESS? ? ?? .

acted as the whistleblower whose email to a Satyam board member triggered a chain of events that culminated in erstwhile chairman Mr . claimed himself to be a former senior executive in Satyam involved with its contract with the World Bank..” A person who used a pseudonym.

Satyam shares gained over 44% day after appointment of the new board.C. • • New CEO: A S Murthy . Board appointed by Govt: • Former Nasscom Chief .Kiran Karnik. Achuthan.SATYAM UNDER RECONSTRUCTION • Appointing new board. Chairman HDFC -Deepak Parikh Former SEBI member.

RAJU & OTHERS UNDER PROBE Click to edit Master text styles Second level ● Third level ● Fourth level ● Fifth level .

4 others are: CBI investigating further . 2009. ● ● ● -vice president(Finance) -2 employees from finance wing - Apart from 5 illusionists.CBI filed a charge sheet against nine on April 7.

IT APPEARS. IS NOT YET OUT.THE FULL TRUTH. .

outlookindia.com •www.com •www.moneycontrol.com • .com •www.business-standard.equitymaster.satyam.indiatimes.business.com •www.economictimes.com •www.expressindia.References Economic times •Wikipedia •www.in •www.satyamscam.com/  •www.

ANY QUESTIONS ?? .

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