The Satyam Computer scam, revealed in 2009 by founder Ramalinga Raju, involved significant financial manipulation, including fabricated financial statements and inflated profits, leading to severe consequences for shareholders, employees, and clients. The scandal highlighted critical failures in corporate governance and underscored the importance of transparency and ethical conduct in business. Ultimately, it prompted a reevaluation of corporate regulations and reinforced the necessity of trust and honesty in the business environment.

1. SATYAM COMPUTER
SCAM
BY- DAKSHITA GUPTA
GUNGUN RAI
DAKSHITA AGARWAL

2. INTRODUCTION
Satyam Computer Services, once a prominent IT company in India, faced a significant
crisis in 2009. The company's founder, Ramalinga Raju, made a startling admission
that revealed financial misconduct. Essentially, the company had been presenting
false financial information, portraying a healthier financial picture than the reality.
This revelation had widespread consequences. Shareholders experienced financial
losses as the company's stock value plummeted. Employees faced job uncertainty,
and clients questioned the reliability of Satyam's services.
In response, the government and regulatory authorities intervened to investigate the
wrongdoing and take legal actions against those responsible. The Satyam scandal
underscored the importance of honesty in business and prompted a reevaluation of
corporate governance practices in India.

3. BACKGROUND
:
Satyam Computer Services, established in 1987 by Ramalinga Raju,
gained prominence as a leading IT company in India. Known for
innovation and growth, Satyam enjoyed trust from clients and investors.
However, in 2009, Raju admitted to significant financial manipulation,
revealing a stark contrast between the company's public success and
underlying mismanagement. This revelation marked the beginning of a
major corporate scandal, prompting a reassessment of corporate
governance practices in India.
.

4. In the Satyam Computer Scam, the deception unfolded
through a series of fraudulent financial activities:
Founder's Admission:
In a startling revelation, Ramalinga Raju, the founder of Satyam Computer Services, admitted to
orchestrating a massive financial fraud.
Fabricated Financial Statements:
The heart of the scam lay in the fabrication of financial statements. Raju and his accomplices
manipulated these documents to present a rosy financial picture that was far from reality.
Inflated Profits and Assets:
Satyam reported inflated profits, creating a façade of robust financial health. Concurrently, the
company's assets were overstated, contributing to an artificially inflated valuation.

5. False Cash and Bank Balances:
To further perpetuate the illusion of financial stability, false cash and bank balances were reported, misguiding
investors and stakeholders.
Creation of Nonexistent Entities:
Raju and his associates went to great lengths to fabricate entities and projects, contributing to the overall
deception and inflating the company's perceived value.
Sustained Deception Over Years:
The magnitude of the fraud revealed that this was not a one-time event; rather, it was a sustained effort over
several years to manipulate financial data and mislead stakeholders.

6. Failure of Corporate Governance:
The scam brought to light a glaring failure in corporate governance mechanisms. Despite being a major
player in the IT industry, Satyam operated without effective oversight, allowing the fraudulent activities to
persist undetected.
The repercussions of the Satyam Scam were far-reaching, impacting shareholders, employees, and clients
alike. This infamous episode underscores the critical importance of transparency, ethical conduct, and
vigilant governance in safeguarding the integrity of corporations and maintaining investor trust.

7. CONCLUSION
In the end, the Satyam Computer Scam teaches us that honesty is crucial in
business. People lost trust when they found out the company's leader, Ramalinga
Raju, was pretending the company had more money than it really did. This led to big
problems for investors, workers, and clients.
The government had to step in and make sure those responsible faced
consequences. The whole incident made everyone realize the importance of being
truthful in business, and it pushed for better rules to prevent such things from
happening again. The Satyam Scam is a reminder that trust and honesty are vital for
a healthy and reliable business environment.

8. QUESTION ?

9. YOU
THANK