it is about satyam scam

1. PRESENTED BY :-
ANIL BHARTI
SILKI GUPTA
SHUBHAM BANSAL
JYOTI CHAUDHARI
NISHA SHAIKH

2. SATYAM BACKGROUND
 It was established in 1987
 4th fastest growing IT company in India
 9% share in market
 53,000 of employees
 $2.1 billion revenue
 1st Indian company is to be listed in 3
international exchanges: NYSE, DOW &
EURONEXT

3. Timeline of what went wrong at
satyam
 In 1987, 33 year Raju establishes Satyam
Computer with his brother and a brother-in-law
in Hyderabad.
 In 1991, the company was listed in Bombay
stock exchange (BSE)
 In 1993, : Satyam Computer signs a deal with
US-based Dun & Bradstreet to set up Dun &
Bradstreet Satyam Software. Satyam holds 24%
stake in the venture, while Dun & Bradstreet
holds the remaining.

4.  In 1999, it becomes the first Indian information
and communication technology company to be
listed on Newyork stock exchange(NYSE), and
Satyam expands footprint to 30 countries.
 In 2006, Satyam’s revenues cross $1 billion. Raju
becomes the chairman of industry body,The
National Association of Software and Services
Companies.
 In 2007, Raju is named Ernst &Young Entrepreneur
of theYear
 In 2008, Satyam’s revenues cross $2 billion. In
December, the company decides to buy out Mytas
Infra—owned by Raju’s sons—for $1.6 billion.

5.  In Jan,2009 Satyam is banned from doing business
with theWorld Bank for 8 years because it was
involved in data thefts and staff bribery.
Satyam employees receive a letter from Raju
admitting to the fraud, following which he resigns
as chairman.
 In June,2009 Satyam merge to form India’s fifth
largest IT exports company.The merged entity is
called Mahindra Satyam.
 In Nov,2011 Raju gets bail from India’s supreme
court after the CBI fails to file charge-sheet.

6.  In Oct,2013 India’s enforcement directorate files a
charge-sheet against Raju and 212 others under
money-laundering charges.
 In July,2014 India’s market regulator SEBI bars Raju
from the capital markets for 14 years, and also
seeks Rs1,849 crore as fine.
 In April,2015 The special CBI court holds Raju and
nine other officials guilty of cheating.
Raju, who also has to pay a fine of about $800,000
(Rs5 crore), has served 32 months in prison so far.

7. ISSUES
 Inflated figures of cash & bank balances of INR
5,040 crore (as against INR 5,361 crore reflected
in the books)
 Operating profit were artificially boosted from
the actual INR 61 crore to INR 649 crore.
 Satyam also showed an interest earning on Rs.
376 crore that was fictious.

9. KEY PLAYERS IN THIS SCAM
 B Ramalinga Raju, founder and chairman of IT
services provider Satyam.
 Raju's brother and Satyam's former MD B Rama
Raju, another brother B Suryanarayana Raju
 Former CFOVadlamani Srinivas
 Former PwC auditors Subramani Gopalakrishnan
andT Srinivas
 Former employees G Ramakrishna, D
Venkatpathi Raju and Ch Srisailam
 Satyam's former internal chief auditorV S
Prabhakar Gupta

10. REASONS
 The board of directors & the auditor were unable
to catch hold of the issue for so long.
 Raju inflated cash & bank balances in Satyam’s
financial records.
 He acquired 6800 acres of land property by
pledging promoters shares & raising funds.
 To hide the deficit in Satyam’s books.Raju
decided to acquire a controlling stake in mytas
infrastructure & properties.

11. IMPLICATION
 Satyam was blacklisted by the world bank for 8 yrs
on data theft & bribing bank officials.
 5 independent directors resigned from the board ,
after the announcement of the Mytas acquisition.
 In 2009, the share price of satyam fell to an all time
low of 78%.
 Satyam employees faced a black future as they
were not assured of salaries in 2009.
 Ultimately, the company ceased to exist on its own
& was taken over by TECH MAHINDRA.

12. ROLE OF INDEPENDENT & NON-
EXECUTIVE BOARD MEMBERS
 An independent director is expected to perform the
fiduciary duties and the duty to exercise care and
skill.
 They represent divergent viewpoints on issues
brought before them.
 They exercise independent judgment on the issues
of strategy, performance and standards of conduct
 They should have the courage to ask the
uncomfortable questions..