SATYAM SCAM

• Satyam Computers had on December 16,2008, announced that it will acquire two group firms –
1. Maytas properties
2. Maytas Infra
• The Board Of Directors of Satyam had approved the founder’s proposal to buy 51 per cent stake in
Maytas Infrastructure and 100 % in Maytas Properties
• The total outflow for both the acquisitions was expected to be US$ 1.6 bn comprising of US$ 1.3 bn for
the 100% stake in Maytas Properties and US$ 0.3 bn for the 51% stake in Maytas Infra.

• This is the move that sparked a row over alleged violation of corporate governance laws.
• This deal is not profitable for investors .So after this announcement they started to raise their voices against
the deal
• The promoters decided to inflate the revenue and profit figures of Satyam. In the event, the company had a
huge hole in its balance sheet

• So to fill up this gap……..

•Company announced Acquisition of 51% stake in Maytas Infra and 100% stake in Maytas Properties on
16th Dec 2008 but The deal was not profitable for investors

•Investors dumped Satyam’s stock and threatened action against the management.

•This was mainly done to hide the irregularities in the accounts of Satyam. It is also said the close
association with the political leaders is one of the reasons.