Satyam scam

satyam scam and accused persons

1. Introduction Satyam was established in 1987 . 4 th fastest growing IT company in India . 9 % market share 40,000 employees Revenue $2.1 billion It is the first company of India listed in 3 International exchange i.e . Nyse , Dow & Euronext .

2. Who is Raju Ramalinga He is Ramalinga Raju born on September 16, 1954. A traditional agricultural family of the KSHATRIYA ( Raju ) Community of Andhra Pradesh. He founded Satyam Computers and was its Chairman until Janury 7 2009 when he resigned from Satyam board after admitting to corporate fraud.

3. Rise of Satyam 1987 : 1991 : 1994 : 2000 : 2002: Satyam Computers Pvt. Ltd. Born. June - First Fortune 500 Client. August - Converted into Public Ltd. Co. The Big Break- Allies with Dun and Bradstreet Corp. Declared one of the 100 most pioneering technology companies by World Economic Forum. Dataquest IT Man of the year award.

4. People behind Scam Ramalinga Raju : B Rama Raju : V Srinivas : S Gopalakrishnan : Talluri Srinivas : Satyam former chairman Brother of Ramalinga Raju , f ormer MD Ex-Chief financial officer Price Waterhouse Auditor Price Waterhouse Auditor

5. The Scam Raju and his brother, B Rama Raju , were arrested by the Andhra Pradesh police on charges of breach of trust, conspiracy, cheating, falsification of records. Raju has mislead various investors. Raju had also used dummy accounts to trade in Satyam's shares. He has violated the insider trading norm. Funds from Satyam were diverted to Maytas Infra and Real estates developers. On 22 January 2009, CID told in cqourt that the actual number of employees is only 40,000 and not 53,000 as reported earlier and that Mr. Raju had been allegedly withdrawing INR 20 carore rupees every month for paying these 13,000 non-existent employees.

6. Fraud figures Inflated figures for cash and bank balances of INR 5,040 cr. (as against INR 5,361 crore reflected in the books). Operating Profit were artificially boosted from the actual 61 cr. to 649 cr. Satyam also showed an interest earning of Rs. 376 cr. that was fictitious.

7. PWC Auditors Crime Previous record - Satyam has also been accused of frauds in 2001 and 2003. These Previous Frauds were totally ignored. Getting third party evidence - No bank confirmation on fixed deposits Accrued interest(fixed deposit) Debtors confirmation Factors overlooked - Changing of accounting years Company was in huge Debt even after balance sheet was showing Big Cash surplus.

8. Reason for Scam Raju wanted to take over his MAYTAS INFRA and MAYTAS PROPERTIES.(company of his sons). He was blamed that he was using the funds of the investors 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).

9. Confession JANUARY 7 TH , 2009 “ IT WAS LIKE RIDING A TIGER , NOT KNOWING HOW TO GET OFF WITHOUT BEING EATEN “

10. Reasons for Confession The gap in the balance sheet reached unmanageable proportions and could not be filled anyhow in future. The whistle blower whose email to a Satyam board member triggered a chain of events . After coming out one fraudary all past Scams and False records were came into light.

11. Satyam NOW Ramalingam Raju along with 2 other accused of the scandal, had been granted bail from Supreme court on 4 November 2011 as the investigation agency CBI failed to file the charge sheet even after more than 33 months of Raju been arreste Ramalingam Raju along with 2 other accused of the scandal had been granted bail from Supreme court on 4 November 2011 as the investigation agency CBI failed to file the charge sheet even after more than 33 months of Raju been arrested On 13th Apr 2009, via formal public auction process, 46% stake in Satyam was purchase by Mahindra . It is now formed as Tech mahindra and traded again in global stock exchanges.

12. Thank you! Prabhat , Rahul , Rishabh , Rajat and Rohan