SATYAM SCAM

PRESENTED BY :
Deepika pa
 CONTENT
Introduction
Founder
To rise of satyam
People behind the scam
The scam
Impact of satyam scam
Regulatory actions taken
Result of satyam scandal
Conclusion
INTRODUCTION
Satyam computers was founded in 1987.
It converted into public ltd. Co. in 1992.
The company offers consulting and
information technology services
spanning various sectors.
Mahindra satyam is ranked #153 by
fortune india 500 in 2011.
Satyam’s network covers 66 countries
53000 employees across 6 countries.
FOUNDER
He is Ramalinga Raju born on
september 16, 1954. a traditional
family of 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 fund.
TO RISE OF SATYAM
1987 : satyam computer pvt. Born.
1991 : june – first fortune 500 clients
august – converted into public
ltd.
1994 : the big break – allies with dun
and Bradstreet corp. declared one of
the 100 most pioneering technology
companies by world economic forum.
2000 : dataquest IT Man of year award
PEOPLE BEHIND THIS SCAM
Ramalinga Raju: Satyam Former Chairman
B Rama Raju : Brother Of Ramalinga Raju ,
Former Managing Director
V Srinivas : Ex- Chief Financial Officer
S Gopalakrisham: Price Waterhouse Auditor
Talluri Srinivas: Price Waterhouse Auditor
THE SCAM
Raju and his brother, B Rama Raju were arrested by
Andhra Pradesh police on charges of breach of trust,
conspiracy, cheating falsification of records.
Raju has mislead various investor.
Raju has also used dummy accounts to trade in
satyam’s shares.
He has violated the insider trading norm.
Fund from Satyam were diverted to Mayas.
CONTD
On 22nd January 2009 ,CID told in court that the actual
number of employees is only 40000 and not 53000
reported earlier and that Mr. Raju had been allegedy with
drawing INR 20 crore for paying these 13000 non-existent
employees.
Raju wanted to take over his MAYTAS INFRA and
MAYTAS PROPERTIES.
He has blamed that he was using the fund of the investors
for the family business. There were allegation that fund
Satyam were diverted to Maytas causing there government
agencies to verify the infrastructure campany’s records
HOW THE SCAM REVEALED ?
Stock market around the world collapsed during 2008
& BSE fell from 21000 to below 8000.
The losses caused investors to withdraw funds from
the stock market.
Satyam continued to get positive result during 2008.
even in the economic crisis.
On October 2008, Satyam reported net income of
$132.3millian, an increase of 28 percent from the same
quarter of the previous year.
HOW THE SCAM REVEALED (CONTD..)
Satyam arrested that, deposit the challenging
environment,it continued to find opportunities for
growth.
During October , one stock analyst drew attention to
large cash balances in non- interest bearing bank
account & expressed concern about the large balances
and the accuracy of the numbers,
Investor ignored the analyst and the stock price rose
with the reports of positive earning and revenue
growth.