2.  Satyam Computers was founded in
1987.
 It converted into Public Ltd Co. in 1992.
The company offers consulting and
information technology services
spanning various sectors.
Mahindra Satyam is overall ranked #153
by Fortune India 500 in 2011.
Satyam's network covers 66 countries
and 53000 employees across six
continents. It is listed in BSE, NSE, NYSE

3.  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 January 7, 2009 when he resigned from the
Satyam board after admitting to corporate fraud.

4.  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.

5.  He was first businessman in the field of construction and
textiles.
 Raju founded Satyam in 1987.
 He started an satyam computers with 20 employees in 1987.
 Satyam was listed in INDIAN STOCK EXCHANGE in 1991.
 Listed in NEW YORK STOCK EXCHANGE in 2001.
 Satyam was listed in UNESCO(Amsterdam) in 2008.
 There were 52000 employees working in Satyam in September
2008

6. 1999:-Ernst & Young Entrepreneur of
the Year Services Award
2000:- Dataquest IT Man of the Year
Award
2002:-Asia Business Leader Award
2007:- Ernst & Young Entrepreneur of
the Year (revoked after the fraud was
confessed)
2008:-Golden Peacock Award for
Corporate Governance (revoked after
the fraud was confessed)
Employees spread over many
countries

7. Ramalinga Raju :
B Rama Raju :
V Srinivas :
S Gopalakrishnan:
Talluri Srinivas :
Satyam former chairman
Brother of Ramalinga Raju
Former Managing Director
Ex-Chief financial officer
Price Waterhouse Auditor
Price Waterhouse Auditor

8.  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 Mayas
 On 22 January 2009, CID told in court 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 crore rupees every
month for paying these 13,000
non-existent employees.

9.  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.
There were allegations that funds from Satyam
were diverted to Maytas, causing the Government
agencies to verify the infrastructure company’s records
as well. .
,

10. FLOATED TWO OTHER COMPANIES FOR
THEIR OWN PURPOSE .
WITHOUT TAKING PERMISSION OF THE
SHAREHOLDERS.
FAILED TO REPAY THE LOANS.
TRANSFER OF MONEY.

11. 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.

12.  SATYAM SHARES
 Biggest single day fall for a stock in stock market.
Rs. 175 ( Jan 6th) 77%
 STOCK MARKET
 BSE sensex fell by 749.05 i.e., 7.25%.
 NSE fell by 192. .40 points i.e., 6.18%
 COMPANIES WORTH
 11464 crore 1607 crore.
 All time low of Rs.11.50 on 9th Jan
and closed at Rs.23.75/-
 Compared to highest of Rs.
524.90/- on May 29,2008.

15.  Previous record -
Satyam has also been accused of frauds in 2001 and
2003.
No importance was given to this.
Getting third party evidence -
No bank confirmation on fixed deposits
Accrued interest(fixed deposit)
Debtors confirmation
Factors overlooked -
Changing of accounting years
Huge debt despite cash surplus

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

18. 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 .

19.  PRESSURE TO MEET
EXPECTATION :- Growing Competition Threat
of being overtaken
 OVERCONFIDENCE :- On his ability
 PERSONAL BENEFITS :- Siphoning of funds Salary
of non-existent 13000 employees
“Since about seven years we wanted to show
more income in the accounts to avoid
others from involving in the company affairs
and any possible hostile acquisition.”

20. New board of directors were appointed.
Disclosure of pledged securities.
Increased financial accounting
disclosure.
Adoption of international standards.
Creation of new corporate code of
conduct by Ministry of Corporate
Affairs. Steps taken by ICAI.

22.  Before the scandal it’s share price was Rs 300 in oct.2008. Just after this
scandal the share price go down to Rs 6.30.
On 10 January 2009, the Company Law Board decided to bar the current
board of Satyam from functioning.
Bank of America and State Farm Insurance terminated its engagement
with the company.
Credit Suisse suspended its coverage of Satyam. The Credit Suisse Group
AG (SIX: CSGN, NYSE: CS) is a Swiss multinational financial services
company headquartered in Zurich, Switzerland.

23.  Jobs of over 50,000 technocrats were at risk.
Country`s booming economy was at risk.
The GDP fell by 0.4%.
 I.T sector suffered a downturn.
India`s global image was tarnished.
Indian stock market fell dramatically.

24. Employees
Stock Market Share-holders
Stake-holders
Indian economy

25.  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
Appointing New Board. Board appointed by
Government.Tech Mahindra wins bid for
Satyam scam.

26.  Appointing new board.
 Board appointed by government :
• former Nasscom chief – Kiran Karnik,
• Chairman HDFC – Deepak Parikh
• Former SEBI member – C. Achuthan .
 Satyam shares gained over 44% day after appointment
of the new board.
 New CEO – A S Murthy
 Tech Mahindra acquired Satyam on
April 13,2009.

27.  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”.

28. More scandals like Satyam can be
avoided if-
 1.If auditing firm is honest.
 2.SEBI plays an active role.
 3. Periodic review of legal
compliance reports by
independent directors.