Satyam scam_Satyam computer service

1. P R E S E N T S

2. Satyam Computer Services

3. SATYAM SCAM
Scam worth 7,000 crore
Breach of trust
Mislead investors
Dummy accounts to trade

4. People INvolved
Ramalinga Raju
B. Rama Raju
V. Srinivas – Ex. CFO
S. Gopalkrishnan, T. Srinivas (PWC Audito

5. Anatomy of SCAM
Maintaining records
Fake invoices and bills
Web of companies
Money raised

6. GOVERNANCE FLAWS NOTICED
Unethical Conduct
False books & bogus accounting
Questionable role of
• Audit committee
Fake Auditing
• Independent directors

7. 0
1000
2000
3000
4000
5000
6000
Comparison Report
Actual Reported
Bank Balance Liabilities Debtors revenues profits
2161
2651
2112
2700
Interest
on fd
321
5361
000
376
1230
000 61
649

8. scandal revealed
CBI investigationConfession

9. The consequences
Reduction of share price
Termination of engagement
Board of Satyam barred from functioning
Impact on economy

10. Action taken
New directors appointed
Disclosure of pledged securities
Increased financial accounting disclosure
Adoption of international standard

11. Thank you