4. โข Mahindra Satyam โ formerly known as Satyam
Computer Services Limited
โข An Indian IT services company based in
Hyderabad, India
โข Renamed Tech Mahindra effective from 24 June
2013 with merger approval by Andhra Pradesh and
Maharashtra high courts
5. โข Offers a comprehensive range of services, including
software development, system
maintenance, packaged software integration and
engineering design services
โข It was founded in 1987 by B Ramalinga Raju
โข Listed on the Pink Sheets, the National Stock
Exchange and Bombay Stock Exchange
7. โข On 7th January, 2009
โข From past 7 years the accounting books were falsified
โข Profits were inflated caused by gaps in the balance
sheet
โข Understated Liabilities, Overstated Debts
โข Accrued Interests
8. SOON AFTER THIS DISCLOSURE
..
0
100
200
300
400
500
600
Amount(Rs)
Year
Satyam Share
12. โข CFO Revealed during investigation:
๏ผIt all started 6-7 years before this disclosure
๏ผRs 10 Crore profits inflated as Rs 200 Crore
๏ผThis gap in the balance sheet led to a fraud of Rs
7,800 Crore
14. Meeting the
Expectations
โข Growing Competition
โข Threat of being Overtaken
Overconfide-
nce
โข On his ability
Personal
Benefits
โข Salary of non-existing
13,000 employees
Reasons
for doing
this
18. Maytas infra &
Properties owned by
the sons of Raju
Major Shareholders
were not in favour of
this
Hence, Acquisiton
terminated by
calling it โPoor
Corporate
Governanceโ
They Planned to buy
Maytas to fill the
gaps in the balance
sheet
Therefore finally Raju
Confessed about the
fraud
19. RAJUโS CONFESSION LETTER
โข He took the sole responsibility for all the above
mentioned fraud acts
โข โIt was like riding a tiger, not knowing how to get off
without being eaten,โ he said
โข โThe aborted Maytas acquisition was the last
attempt to fill the fictitious assets with real onesโ
20. Apart from the 5
masterminds Rajus
another
brother, Vice
President(Finance) &
other employees of
finance department
were caught
WHAT WAS THE
END?Tech Mahindra
acquired Satyam
on April 13, 2009
New CEO : A S
Murthy
New Board
appointed by the
Government
Chargesheet filed
against all the nine
on April 7, 2009