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JOURNEY OF SATYAM
TO ASATYAM..
MADE BY:
• ANSHUL RAMNANI
• BAROS KHAN
• BINDI SHAH
• FARHEEN ANSARI
• FARAZ PATEL
• PRATIK PANCHAL
WHAT IS
• Mahindra Satyam – formerly known as Satyam
Computer Services Limited
• An Indian IT services company based in
Hyderabad,...
• Offers a comprehensive range of services, including
software development, system
maintenance, packaged software integrat...
•AND HE REVEALED THE
TRUTH OF SATYAM...
• On 7th January, 2009
• From past 7 years the accounting books were falsified
• Profits were inflated caused by gaps in t...
SOON AFTER THIS DISCLOSURE
..
0
100
200
300
400
500
600
Amount(Rs)
Year
Satyam Share
0
2000
4000
6000
8000
10000
12000 11464
1607
Company Worth ( Rs in Crore)
BECAME POPULAR AS
WHY DID THE THINGS
GO WRONG ?
• CFO Revealed during investigation:
It all started 6-7 years before this disclosure
Rs 10 Crore profits inflated as Rs ...
The
Masterminds
V Srinivas
B Rama Raju
Ramalinga Raju
S
GopalaKrishnan
Talluri Srinivas
Meeting the
Expectations
• Growing Competition
• Threat of being Overtaken
Overconfide-
nce
• On his ability
Personal
Bene...
Management
Audit Section
Management
of unreal and
fictious fixed
deposits
The Strategy:
AND ONE LAST ATTEMPT TO
SAVE
Maytas infra &
Properties owned by
the sons of Raju
Major Shareholders
were not in favour of
this
Hence, Acquisiton
termin...
RAJU’S CONFESSION LETTER
• He took the sole responsibility for all the above
mentioned fraud acts
• “It was like riding a ...
Apart from the 5
masterminds Rajus
another
brother, Vice
President(Finance) &
other employees of
finance department
were c...
THANK YOU
Satyam Scandal
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Satyam Scandal

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Satyam Scandal

  1. 1. JOURNEY OF SATYAM TO ASATYAM..
  2. 2. MADE BY: • ANSHUL RAMNANI • BAROS KHAN • BINDI SHAH • FARHEEN ANSARI • FARAZ PATEL • PRATIK PANCHAL
  3. 3. WHAT IS
  4. 4. • Mahindra Satyam – formerly known as Satyam Computer Services Limited • An Indian IT services company based in Hyderabad, India • Renamed Tech Mahindra effective from 24 June 2013 with merger approval by Andhra Pradesh and Maharashtra high courts
  5. 5. • Offers a comprehensive range of services, including software development, system maintenance, packaged software integration and engineering design services • It was founded in 1987 by B Ramalinga Raju • Listed on the Pink Sheets, the National Stock Exchange and Bombay Stock Exchange
  6. 6. •AND HE REVEALED THE TRUTH OF SATYAM...
  7. 7. • On 7th January, 2009 • From past 7 years the accounting books were falsified • Profits were inflated caused by gaps in the balance sheet • Understated Liabilities, Overstated Debts • Accrued Interests
  8. 8. SOON AFTER THIS DISCLOSURE .. 0 100 200 300 400 500 600 Amount(Rs) Year Satyam Share
  9. 9. 0 2000 4000 6000 8000 10000 12000 11464 1607 Company Worth ( Rs in Crore)
  10. 10. BECAME POPULAR AS
  11. 11. WHY DID THE THINGS GO WRONG ?
  12. 12. • CFO Revealed during investigation: It all started 6-7 years before this disclosure Rs 10 Crore profits inflated as Rs 200 Crore This gap in the balance sheet led to a fraud of Rs 7,800 Crore
  13. 13. The Masterminds V Srinivas B Rama Raju Ramalinga Raju S GopalaKrishnan Talluri Srinivas
  14. 14. Meeting the Expectations • Growing Competition • Threat of being Overtaken Overconfide- nce • On his ability Personal Benefits • Salary of non-existing 13,000 employees Reasons for doing this
  15. 15. Management Audit Section Management of unreal and fictious fixed deposits The Strategy:
  16. 16. AND ONE LAST ATTEMPT TO SAVE
  17. 17. Maytas infra & Properties owned by the sons of Raju Major Shareholders were not in favour of this Hence, Acquisiton terminated by calling it “Poor Corporate Governance” They Planned to buy Maytas to fill the gaps in the balance sheet Therefore finally Raju Confessed about the fraud
  18. 18. RAJU’S CONFESSION LETTER • He took the sole responsibility for all the above mentioned fraud acts • “It was like riding a tiger, not knowing how to get off without being eaten,” he said • “The aborted Maytas acquisition was the last attempt to fill the fictitious assets with real ones”
  19. 19. 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
  20. 20. THANK YOU

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