Founder and Chairman of Satyam Computer Services.On January 7th 2009 B. THE SCAM UNFOLDS . resigns amid a scandal over a billion dollar fraud. This incident throws a spotlight on corporate governance in India based companies.Ramalinga Raju .

Business process outsourcing (BPO) and software products.T industry. Almost one in every 2 of the Fortune 500 was said to be a client of Satyam.000 employees across the globe. Foundation . Satyam built its business around 3 areas namely IT services.Founded in 1987 Satyam had epitomized corporate India and its emergence as an powerhouse in the global I. Satyam became India¶s fourth largest IT services company. With over 50.

1 billion.In the financial year ending March 2008. The Bubble . Satyam reported an impressive 46. In October 2008.3% rise in revenue to $2. Satyam said revenue would rise to further 20% in the 2009 financial year.

but questions were immediately raised about the involvement of others. Raju also stated that he acted alone. Price Waterhouse coopers. . including Satyam¶s auditors. Raju publicly admits to having overstated Satyam¶s profits over a period of several years to the tune of approximately US$1 billion.In a letter to Satyam Board.

Infosys Technologies and Wipro.With the ever increasing pressure to perform.1 led Satyam to over-inflate its profits over the years. The relentless pursuit to be No. It was in Raju¶s own words ³ like riding a tiger. Why? . Satyam was keen to catch up to its key competitors. Tata consultancy Services. not knowing how to get off without being eaten´.

In an attempt to cover-up Satyam U. ACQUISITION TO COVER UP .S$ 1 billion.S$ 1 billion worth of fictious assets with real assets Satyam attempted to acquire Mayas Infrastructure and Maytas properties. companies controlled by Raju family reportedly worth U. However the acquisition was dropped when Satyam share holders protested. questioning why such acquisition was needed.

thousands of forged invoices.B. The report involves dual accounting books. Investigation .I investigated Satyam on the basis of falsified accounting on a massive scale. fake bank statements thousands of unnecessary employed and auditors who received fees several times the market rate.C.

While the exact price at which these shares were sold is not known. two of his brother and four of Satyam executives. Nearly 55 per cent of the money made through sale of shares was in the first quarter of fiscal 2006-07 (AprilJune).050 crore.Charges of cheating.78 per cent to 8. forgery and falsification of accounts have been filed against Raju. Mr Raju¶s stake in the company plunge from 22. a conservative estimate based on price trends during this period shows that the sale could be worth anywhere around Rs 2.63 per cent (a big portion currently under corporate bodies category) over 2001-08. INSIDE JOB .

making it easier for Mr B. Satyam Computer Services used to run about 190 different IT systems for internal management. Automated MIS in Mahindra Satyam . Ramalinga Raju and his cohorts to cook the company's books. In order to prevent a similar fraud at the now rechristened Mahindra Satyam.Satyam has now been acquired by Tech Mahindra. the company management has embarked on a process to move to an automated management information system (MIS).

THANK YOU .Ramalinga Raju along with other executives didn¶t reveal the actual position of Satyam and by doing so they made everyone to question the corporate governance in Indian based companies.B.