Power Point on Satyam Scam IT Company. India's Biggest IT Company Fraud.

1. The Mega
Corporate Fraud
Presented by:
Yogesh Kudale

2. Company Profile
 Satyam Computers was
Founded by B. Ramalinga
Raju in 1987.
 India’s 4th Biggest Software
Company.
 On 26th August, 1991 it was
converted into a Public Limited
Company.

3. Cont......
It is listed in BSE, NSE, NYSE
and Euronext (Amsterdam).
 The Company employs 53,000 IT
professionals across
development in 6 continents.
 It serves over 654 global
companies, 185 of which are
Fortune 500 Corporations.

4. People Behind This Scam
1. B. Ramalinga Raju Founder and Chairman of
Satyam
2. B Rama Raju Brother of Ramalinga Raju and
Managing Director of Satyam
3. V Srinivas Ex-Chif Financial Officer
4. S Gopalakrishnan Price Waterhouse Auditor
5. Talluri Srinivas Price Waterhouse Auditor

5. The Scam
 B. Ramalinga 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 inside trading norm.
 Funds from Satyam were diverted to Maytas Infra.
 B. Ramalinga Raju resigned on 7 January 2009 and
confessed that he had manipulated the accounts by
US$1.47Billion.

6. Impact of Satyam Scam on Indian Economy
o Although several companies are trying to have a bite
into Satyam Computers.
o It dragged the benchmark Sensex index down 7.3%
to close at 9,586.88 after Satyam Scam
o Satyam’s shares fell to 11.50 rupees on 10 January
2009, their lowest level since March 1998, compared
to a high of 544 rupees in 2008.

7. After Satyam Scam
 Mahindra group to its takeover by 14
billion on 13 April 2009.
 It subsequently merged within Tech
Mahindra on 24 June 2013