Presented By

:
Ankita Gupta Ankita Yadav Sneha Gupta Mani Sharma Toshiba Shakir

and Tripti Singh Chandel

P R E S E N TA T I N O ON S A T YA M S C A N D A L

Contents
Introduction.  About Mahindra Satyam.  Corporate Identity and Industry presence.  Ramalinga Raju Satyam Scandal  Reasons  Balance sheet  Stock Market Reaction Effect of scandal in Indian Economy Events leading to fall.

Introduction

Satyam Computer Services Limited was founded in 1987 by Mr. B Ramalinga Raju. The company offers consulting and information technology services spanning various sectors, including engineering and product development, supply chain management , client relationship management , business process management and business intelligence. The company listed on the New York stock exchange, national stock exchange, and the Mumbai stock exchange. In June 2009, the company unveiled its new brand identity “Mahindra Satyam”.

About Mahindra Satyam
It spans over 60 countries in the world. Development and delivery centres are located in US, Canada, Brazil, UK , Hungry, Egypt,UAE, India, China, Malaysia, Singapore and Australia. Development centres in india are Banglore, Chennai, Pune, Mumbai, Delhi, Kolkata, Bhubaneswar and Visakhapatanam.

About Mr. B.Ramalinga Raju
Byrraju Ramalinga Raju was born onSeptember16,1954.
A traditional agricultural family of the KSHATRIYA (RAJU)Community of Andhra Pradesh.

He founded Satyam Computers and was its Chairman until January 7, 2009 when he resigned from the Satyam board after admitting to corporate fraud. Satyam was until recently perceived to be amongst the top Indian IT vendors. Raju has admitted to overstating the company's cash reserves by USD$ 1.5 billion. Later, a person involved in the investigation of the company said that the company's assets were not inflated, but instead siphoned off by Ramalinga Raju. Raju is currently held in Hyderabad's Chanchalguda jail on criminal charges including fraud, forgery, cheating, embezzlement and insider trading. He was hospitalized in September 2009 following a

CARREAR
He was first businessman in the field of construction and textiles. Raju founded Satyam in 1987 . He started an satyam computers with 20 employees in 1987 Satyam was listed in INDIAN STOCK EXCHANGE in 1991. And listed in NEW YORK STOCK EXCHANGE in 2001. continued………

CARREAR
He was first businessman in the field of construction and textiles. Raju founded Satyam in 1987 . He started an satyam computers with 20 employees in 1987 Satyam was listed in INDIAN STOCK EXCHANGE in 1991. And listed in NEW YORK STOCK EXCHANGE in 2001. continued………

Satyam was listed in UNESCO(amsterdum) in 2008. There was 52000 employees are working in september 2008 

Awards

Ernst & Young Entrepreneur of the Year Services Award 1999 Dataquest IT Man of the Year Award 2000 Asia Business Leader Award 2002 Ernst & Young Entrepreneur of the Year 2007 (revoked after the fraud was confessed) Golden Peacock Award for Corporate Governance 2008 (revoked after the fraud was confessed) mployees spread over many countries. Raju showed a strong social orientation and has been furthering the cause of social transformation through Byrraju Foundation and EMRI[1]. As of November 28 2009, Mr

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
Raju wanted to take over his MAYTAS INFRA

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

Satyam in stock exchange

Mahendra Satyam in stock exchange
Before the scandal it’s share price was Rs 300 in oct 2008. Just after this scandal the share price go down to Rs 6.30. Before the scandal Satyam was the 4th ranked among IT companies of India and on 9th jan2009 it became least valuable IT company in India. Present time it’s share price is 107.89. Mahendra Satyam’s market growth is 7,800caror. According the recent survey Mahendra Satyam’s rank is 7th among the IT companies of India and

Satyam's balance sheet of 30 September 2008 contained:
inflated figures for cash and bank balances of Rs 5,040 crore (US$ 1.04 billion) (as against Rs 5,361 crore (US$  1.1 billion) crore reflected in the books) an accrued interest of Rs. 376 crore (US$ 77.46 million) which was non-existent. an understated liability of Rs. 1,230 crore (US$ 253.38 million) on account of funds was arranged by himself. an overstated debtors' position of Rs. 490 crore (US$  100.94 million) (as against Rs. 2,651 crore (US$ 546.11 million) in the books). Raju claimed in the same letter that neither he nor the managing director had benefited financially from the inflated revenues. He claimed that none of the board members had any knowledge of the situation in which the company was placed.

Balancesheet Of Mahendra Satyam

Effect of scandal in Indian Economy

Events Events leading to fall
2008 December 16- Satyam Computer Services announces $1.6 billion acquisition of 100% stake in Maytas properties and 51% stake in Maytas Infra, both promoted by Ramalinga Raju and sons. December 17-Satyam-Maytas deal is scrapped following investor-shareholders rebellion. Raju mulls on the share buyback December 24-World Bank bars business with Satyam for 8 years starting September 2008. December 25- Academician and independent director Mangalam Srinivasan exits from Satyam on Christmas owning moral responsibility for not voting against it.

board meet from December 28 to January 10. December 29- Satyam appoints DSP Merrill Lynch to review strategic option and assess implications of possible dilution of Ramalinga Raju`s stake; Non-executive director Krishna Palepu and in dependent director Vinod Dham resign from board. December 30- Satyam`s board nearly halved as Indian school of Business dean Rammohan Rao also quit.

Events leading to the fall… 28- Satyam Computer defers crucial December

Events leading to the fall… 2009

January 2- Satyam discloses to stock exchange that Raju and his family have pledged all their shares, held in a corporate entity SRSR limited, to institutional lenders. January 3-Ramalinga Raju`s stake in Satyam falls to 5.13% from 8.27% as lenders sell shares. January 6-Ramalingu Raju`s stake falls further to 3.6% from 5.13%. January 7- Chairman Ramalinga Raju and MD Rama Raju resign.

Maytas Infra Files Criminal Case Against Vedanta Aluminium

Conclusion
 Maytas

Infra Files Criminal Case Against Vedanta Aluminium CBI Registers FIR Against Raju And Others In Satyam Scam Satyam Computer Gets CLB's Approval For St Government Set To Take Over Maytas Infra And Maytas Property CBI To Probe Satyam Accounting Fraud Case IDBI, BoB And LIC To Bailout Satyam With Rs 600 Crore Loan

Satyam Board Appoints Old Timer AS Murty As CEO

IDBI, BoB

And LIC To Bailout Satyam With Rs 600 Crore Loan Andhra CM Y S Reddy Seeks CBI Probe Into S  Satyam Board Appoints Old Timer AS Murty As CEO Kiran Karnik Appointed As The Chairman Of Satyam Com

Supreme Court Permits SEBI To Interrogate Ramalinga Raju And His Brother Satyam To Get Excellence In Practice Award Maytas Infra Director C.S. Bansal Resigns Hyderabad Court Sent Gopalakrishna Raju To Police Custody Spice Group Interested In Scam-Tainted Satyam Computer Karnataka Government To Replace Maytas Infra In Two Airport Projects

Hyderabad Court Rejects Bail Plea Of

Satyam's Ramalinga Raju And Others Satyam Names Investment Bankers, To Pay Ja Embattled Satyam Computer To Get New CEO The Judicial Custody Of B Ramalinga Raju And Others Extended Till January 31 Fraud-Hit Satyam Computer Seeks Emergenc

Maytas Chief Executive P.K. Madhav

Resigns From Board Vedanta Alumina Terminates Maytas Contract In Orissa Satyam Co-Founder B Ramalinga Raju's Bail Petition Deferred To January 22 Satyam Co-Founder B Ramalinga Raju's Bail Petition Deferred To January 22 Tarun Das, T.N. Manoharan And Suryakant Balakrishnan Also Join Satyam Board

Government Not To Bail Out Satyam Compute Fraud-Hit Satyam Gets KPMG And Deloitte As   Govt. Plans Rs 2000 Crore

Bailout Package For Satyam TR Prasad Resigns From GMR Infra Board Ove Satyam To Be Probed By Serious Fraud Invest