4814satyam scandal

							SATYAM
 SCAM
Do
You
Know
Him?
B RAMALINGA RAJU
FOUNDER AND FORMER CHAIRMAN
OF ONE OF THE BIGGEST IT GIANT OF
OUR NATION “SATYAM COMPUTERS”
AND
…………………………GUESS WHAT THE
PRIME CONVICT IN THE BIGGEST
SCAM OF COUNTRY
SATYAM
COMPUTERS
WHAT IT IS
ABOUT ?
FOURTH LARGEST IT OUTSOURCING
COMPANY OF INDIA
EMPLOYEES MORE THAN 50,000 PEOPLE IN
INDIA
HIGH GLOBAL REPUTATION
OFFERS SERVICES TO MORE THAN 550
MNC’S
So who has to be blame?
   Former chairman B.RAMALINGA RAJU
    IS THE PRIME CONVICT IN THE CASE
    WITH SEVERAL OTHER BOARD
    MEMBER’S
HOW DOES SUCH A
  SCAM MATTER?
HOW IT HAPPENED



     AN ANNOUNCEMENT THAT
    SHOCKEDTHE CORPORATE INDIA THAT
    B.RAMALINGA RESIGNED .


   The COMPANY’S BALANCE SHEET WAS
    INFLATED TO Rs 5,361 CRORE AT
    THE END OF SEPTEMBER 2008 AGAINST
    THE ACTUAL Rs 5,040 CRORE.
    There is an artificial cash balance of Rs 588 crore in sept
    2008.

    Raju also admitted that Satyam's profits were inflated over
    several years. And it is difficult for him to stop this fraud
    gap. He added, "It was like riding a tiger, not knowing how
    to get off without being eaten." The Maytas deal was the
    last attempt to fill the fictitious assets with real ones.

   Raju also said Rs 1,230 crore was arranged to Satyam,
    which is not reflected in its books, to keep Satyam's
    operations running. For this the promoter had to pledge
    the promoter shares and raising funds from other sources.
HOW DID THE SCAM MATTER TO
THE NATION ?
 JOB’S OF OVER 50,000
  TECHNOCRATS WERE AT RISK
 COUNTRY’S BOOMING ECONOMY
  FEARED SLIGHT COLLAPSE AS
  COUNTRYS GDP FELL BY
  ESTIMATED 0.4%
 INDIA’S IT SECTOR SUFFERED
  DOWNTURN AS IT’S IMAGE WAS
  TARNISHED GLOBALLY
How it was
caught?
  Satyam Computers had
on December 16, 2008,
announced
  that it will acquire two
group firms – Maytas
properties and Maytas
Infra for $1.6 billion
(about Rs 8,000 crore) as
part of its diversification
strategy , this create a
alleged violation of
corporate governance
laws.
HOW GOVERNMENT KNOWS IT ?
   The ministry of corporate affairs later
    ordered a probe into whether the
    company violated any corporate
    governance laws while entering into
    such a deal involving share holders'
    money.
IMPACT ON STOCK MARKET

  News of what is possibly the country's
  biggest corporate fraud, sent the indices
  tumbling. The benchmark Sensex slipped
  over 7% on Wednesday, 7 January 09.
  Companies perceived to have poor
  corporate governance standards were
  most affected.
 The company’s share price has fallen 21.3
  per cent since December 15, the day
  before the crisis broke.
SALVAGING SATYAM

 To stabilize the sinking Satyam
 Computers, the Government
 nominated banker Deepak
                                   KIRAN KARNIK
 Parekh, IT expert Kiran Karnik    FORMER PRESIDENT OF
 and former SEBI member C          NASSCOM
 Achutan to the IT company's
 board.

 .
ALL WELL THAT’S END WELL


    Anand Mahindra, Chairman, Tech Mahindra, the
    new owner of Satyam, will address the first board
    meeting of the company post the Rs 2,890-crore
    takeover, giving hope and future to Satyam’s
    45,000-50,000 employees. A moment of truth for
    Satyam and a victory for the government and the
    regulators.
