SATYAMSCANDAL<br />On 7 January 2009, company’s previous Chairman RamalingaRaju resigned after notifying board members and the Securities and Exchange Board of India (SEBI) that Satyam's accounts had been falsified<br />Raju confessed that Satyam's balance sheet of 30 September 2008 contained:<br />Inflated figures for cash and bank balances of Rs 5,040 crore (US$ 1.04 billion) (as against Rs 5,361 crore (US$ 1.1 billion) crore reflected in the books). <br />An accrued interest of Rs. 376 crore (US$ 77.46 million) which was non-existent. <br /> An understated liability of Rs. 1,230 crore (US$ 253.38 million) on account of funds was arranged by himself. <br /> An overstated debtors' position of Rs. 490 crore (US$ 100.94 million) (as against Rs. 2,651 crore (US$ 546.11 million) in the books). <br />Raju claimed in the same letter that neither he nor the managing director had benefited financially from the inflated revenues. <br /> He claimed that none of the board members had any knowledge of the situation in which the company was placed <br />
ACTUAL DEBT WAS 2161<br />OVERSTATED 490 CR.<br />SATYAM<br />CURRRENT ASSETS<br />ACTUAL CASH IN BANK WAS 321 INFLATED 5040 CR.<br />NO ACCRUED INTEREST 376.34 CR.<br />LIABILITIES<br />UNDERSTATED LIABILITY 1230 Cr. Which was ARRANGED BY MR.RAJU<br />ARTIFICIALLY ADDED 588 OPERATING PROFIT ADDED 588<br />INCREASING THE CASH RESERVE ONLY FOR Q2 ALONE TO 588<br />
SATYAM SCAM: SO HE IS TO BLAME` <br />SATYAM<br /><ul><li>Who is guilty in this sordid state of events?
But there were others who are also culpable.</li></li></ul><li>SATYAM<br />SATYAM’S AUDITORS<br />PRICE WATER HOUSE COOPERS<br />
THE SEBI<br /> SATYAM<br />The Sebi had in December given a clean chit to Satyam in the probe on violation of corporate governance law.<br />
SATYAM<br /><ul><li>If the auditors were conned, it means that either the bankstatement and certificates were forgedSatyam's banks – ICICI Bank, HDFC Bank, Bank of Baroda, etc</li></li></ul><li>Change the name of the company.Reconstitution of the board :- Restore the management of the company and appoint some reputed people as the board of directors.Try building confidence in the clients to get back the lost projects.The image of the company could be revived by a series of press conferences highlighting theon going contracts with the clients.It could also be merged with any other software company.<br />WHAT MANAGEMENT COULE DO?<br />
Tech Mahindra wins bid for Satyam Scam<br />SATYAM<br />Ø Tech Mahindra is paying Rs1757 crorefor a 31% stake in the company, or Rs 58per share.Ø Satyam Computer Services has now zoomed 15% to Rs 54.20 ahead of theannouncement of the highest bidder forthe company on April 13, 2009.Ø In India this moment was full of praisefor the manner and speed with which thereconstituted board of Satyam ComputerServices found a strategic investor .<br />
DON’T TRY THIS AT OWN<br />mahindra<br />SATYAM<br />