-RAJU RAMALINGA

Till now no one had ever seen such a big corporate fraud by a large cap corporate house.

Yes you heard it right. The biggest corporate fraud in IT industry that shook the Indian
economy and which has deeply affected the credibility of Indian corporate houses in
entire world.
Till about two decades ago corporate governance was relatively an unknown subject
that could have played a major role in preventing the case that has happened.
Satyam computers at a time the best IT Company not only In India, but all over the
world. But due to such action by the director RAMALINGA RAJU today Satyam
computers has completely lost its charm.
RAMA RAJU, brother of Ramalinga Raju was equally involved in the scam that was
executed.
Lets have an insight of how the entire fraud was executed and what actually went
wrong with Satyam computers.

TECH MAHINDRA ACQUIRED

SATYAM, RENAMED IT AS
MAHINDRA SATYAM.

2009: RAJU CONFEESED HIS

SCANDALOUS ACTION.

INCORPORATED ON 24TH
JUNE 1987 WITH 20
EMPLOYEES BY RAJU
RAMALINGA.

1991:
WENT
PUBLIC

MISLEAD INVESTORS BY
DUMMY SALARY A/CS OF
OVER 10000 EMPLOYEES

2003: STARTED
PROVIDING IT SERVICES
TO WORLD BANK.

WORLD BANK BARRED

SATYAM FROM BUSINESS
FOR PROVIDING BANK
STAFF WITH IMPROPER
BENEFITS & WAS CHARGED
FOR BRIBERY.

2005: RANKED 3RD IN

CORPORATE
GOVERNMENCE SURVEY
INVESTORS
REACTED
NEGATIVELY

2008: BID FOR

MAYTAS INFRA. LTD &
MAYTAS PROPERTIES
LTD ON 16TH DECEMBER.

DREW AROUND Rs. 20 CRORE

PER MONTH. Showed
inflated (non-existent)
cash and bank balances of
Rs. 5040 crores & an
understated liability of Rs.
1230 crores

SHARE PRICES
WENT DOWN
BY 55%

MAYTAS WAS
CONTROLLED BY RAJUS
SONS. PURPOSE WAS TO
DIVERT MONEY FLOW
FROM SATYAM TO
MAYTAS.

SATYAM

FALL FROM GRACE

Shares price were down by 55% and another 14% over next 4 years.

16th DEC 2008:

Rs.226.55

17TH DEC 2008:

Rs.157.10

23RD DEC 2008:

Rs.140.70

26TH DEC 2008:

Rs.135.65

29TH DEC 2008:

Rs.148.10

30TH DEC 2008:

Rs.160.70

2ND JAN 2009

Rs.177.20

5th JAN 2009

Rs.167.15

6TH JAN 2009

Rs.178.95

7th JAN 2009:

Rs.39.95