Resignation by Ramalinga.</li></li></ul><li>Understanding the scam!<br /><ul><li>The Balance sheet as of September 30, 2008 showed-
Inflated (non-existent) cash and bank balances of Rs. 5040 cRore (as against Rs. 5312 core reflected in the books)
An accrued interest of Rs. 376 cRore which is non-existent
An understated liability of Rs.1230 cRore on account of funds arranged by BR RAJU.</li></li></ul><li>fraud<br /><ul><li>An overstated debtors position of Rs. 490 cRore (as against Rs. 2651 cRore reflected in the books)
For the second quarter satyam reported a revenue of Rs.2700 cRore and an operating margin of Rs.649crore (24% of revenues)
As against actual revenue of Rs.2112 crore and an actual operating margin of Rs.61 crore (3% of revenues)
This has resulted in artificial cash and bank balances going up by Rs. 588 crore in Q2 alone.</li></li></ul><li>The following action has been made…<br />
CONFESSION<br />JANUARY 7TH, 2009<br />“ IT WAS LIKE RIDING A TIGER , NOT KNOWING HOW TO GET OFF WITHOUT BEING EATEN “<br />
LETTER RAJU WROTE TO THE SATYAM BOARD <br /><ul><li>FOLLOWING IS THE TEXT OF THE LETTER :-
COPIES MARKED TO SEBI AND STOCK EXCHANGE</li></li></ul><li>CONSEQUENCE AFTER CONFESSION<br /><ul><li>Investors- Panicked as Stock plummeted & Class action suits filed.
Employees- stranded in many ways- morally, financially, legally and socially.
Customers- shocked and worried about the project continuity, confidentiality and cost over run.
Bankers - concerned about recovery of financial and non-financial exposure and recalled facilities.</li></li></ul><li>IMPACT ON STOCK MARKET<br /><ul><li>THE SHARE PRICE OF SATYAM WAS FALL DOWN TO 21.3%.
The benchmark Sensex slipped over to 7% on 7 January 2009.
Satyam stock is being removed from its S&P CNX Nifty 50-share index .
Satyam’s largest shareholder, Aberdeen AMC, dumped the tainted software entity’s shares.</li></li></ul><li>Acquisition by Mahindra group<br /><ul><li>ALL WELL THAT’S END WELL
Post Rs2890 Crore as takeover</li></li></ul><li><ul><li> On 13th Apr 2009, via formal public auction process, 46% stake in Satyam was purchase by Mahindra.
July 2009, Satyam rebranded its service as “Mahindra Satyam”.</li></li></ul><li>Restatement of Result<br /><ul><li>Satyam Computer Service Restated its financial Result for the period 2002 to 2008</li></li></ul><li>Thank you<br />
A particular slide catching your eye?
Clipping is a handy way to collect important slides you want to go back to later.