Simple and easy understanding of Satyam Scam

2. •Mr. Ramlinga Raju started it in 1987 at
Hydrabad. It started as private company but get
converted in 1991 into public company.
•In 1991-1992, it get listed at Bombay stock
exchange.
•In 2001, it get listed at New York stock exchange.
•It was fastest growing company at that time and
get many awards.

3. Ramlinga Raju- Satyam founder
chairman
B.Rama Raju- Former MD
V Srinivas- Ex CFO
S Gopal Krishnan- PWC auditor
T. Srinivas- PWC auditor

4.  At that time Real estate business was booming
so Mr. Raju gets attracted towards it.
 He began to buy properties. He bought Maytas
infrastructure and Maytas properties in the
name of his relatives and friends.
 He opened almost 365 companies in their
name.

5.  He started manipulating financial statements of
Satyam computers because of which share
price of Satyem gets increased. Now he and his
brother started to sell his shares at high price.
 He showed fake bank balance on behalf of
Satyam.
 He showed the actual number of emplyees as
53,000 ( actual-4,000). He withdrew salary of
fake emplyees and get personal profit.

8.  He thought that he will earn great profit from
Real estate and then fill the gap created in
balance sheet of Satyam.
 But because of 2008 recession, Real estate
market got slowdown. So now his plan to fill
the gap failed.

9.  He persuaded BOD to pass resolution to buy
100% stake of Maytus property and 51% of
Maytus infra. These were actually his
companies so he will use the money to fill the
gap.
 Investers opposed the resolutiona and one of
them approched to world bank.
 Raju has to drop the idea. Now he confessed on
7th Jan, 2009.

10.  It was a fraud of total Rs. 7136 crore
 Raju and his brother were arrested and
sentenced for 7 years.
 Govt. sold it to Tech- Mahindra. It is renamed
as “Mahindra Satyam” and now has been
merged with Tech Mahindra.