The Satyam scam

AN OVERVIEW
Satyam was established in 1987.
4𝑡ℎ fastest growing IT company in India.
1𝑠𝑡 Indian company to be listed in 3 international exchanges: NYSE, DOW and EURONEXT.
About the Scam
The Satyam computer services scandal was a corporate scandal affecting India-based
company Satyam computer services in 2009, in which chairman B. Ramalinga Raju confessed
that he had manipulated the company’s balance sheet.
What Crime he has constituted?
•Falsification of records.
•Misleading the investors.
•Used dummy accounts to trade in Satyam shares.
•Violated the insider trading norm.
•Funds from Satyam were diverted to another company named MYDAS.
•Allegedly Withdrawing INR 20cr. Every month for paying its 13000 non-existent employees.
Balance sheet as of Sept 2008:
Original Shown Differen
Entity
(Cr.) (Cr.) ce(Cr.)
Cash and
Bank 321 5361 5040
balance
Accured
0 376 376
Interest
Liability 1230 0 1230
Debtors 490 2651 2161
Operatin
61 649 588
g margin
It was like riding a tiger not knowing how to get off
without being eaten.
B. Ramalinga Raju