Satyam was a major Indian IT services company founded in 1987 with over 50,000 employees. In January 2009, its chairman resigned and confessed to a $1.47 billion accounting fraud, in what became known as India's Enron scandal. The fraud involved fake invoices, bank statements, and thousands of nonexistent employees. It damaged Satyam's reputation and corporate governance standards in India. The company's stock price plummeted from $300 to $6.30 after the scandal.

1. Guided by : Dr.priyanka baldawa Submitted By:
jYOTI jain

2.  Founded in 1987 by
Mr.raju
 Satyam was india’s 4th
largest IT services company
 Over 50,000 employes
 Almost one in every two of
the fortune 500 was said to
be client of satyam
 90% of businees comes
from USA

3.  Satyam business has spread
over 66 countries
 Listed on BSE, NSE ,
NYSE
 3 areas of working
- IT services
- Business process
outsourcing (BPO)
- Software products

4.  In the financial year ending March 2008 , satyam
reported impressive 46.3 % rise in revenue to $ 2.1
billion
 In October 2008 , satyam said revenue would rise
further 20 % in the 2009 financial year
 But later this all found to be fictious

5.  First IT company in the world
Certified under ISO 9001:2000
 Top 13 Best – Managed companies
in India
 SAP Pinnacle Award in 2008
 Golden peacock award for
excellence in Corporate Goverance
 United kingdom trade & Investment
India Business award

6.  Greed for money , power ,
competition , success and prestige
compelled Mr. raju ( founder & ex-
chairman ) to “ ride the tiger ”
which as a resultant forced him to
commit a huge fraud
 Scam is over of $ 1.47 billion
 Thrown spotlight on corporate
governance in India – Based
companies

7.  To cover up satyam’s fictious
assests wih real one , satyam
attempted to accquire Maytas
Infrastruture & Maytas
properties
 Which was owned by Mr .
Raju’s family
 Later , the acquistion was
dropped when satyam
shareholders protested

8.  As per India’s CBI report
satyam did :-
- Involvement of dual
accounting books
- Thousand of forged invoices
- Fake bank statements
- Thousand of unnessary
employes
- Auditors received fees several
times the market rate

9.  This scam also termed as India’s Enron
 On Janurary 7th 2009 , B . Ramlinga Raju , Founder
& Chairman of Satyam Computer Services , resigns

10.  B. Ramalinga Raju : Satyam Former Chairman
 Rama Raju : Brother of Ramalinga Raju (MD)
 V Srinivas : Ex-chief Financial Officer
 S. Gopalakrishnan : PWC Auditor
 Talluri Srinivas : PWC Auditor

11.  Before the scandal, it’s share price was Rs. 300 in
Oct. 2008. Just after the scandal share price go down
to Rs. 6.30.
 The Company Law Board decided to bar the current
board of Satyam functioning.
 The New York Stock Exchange has halted trading in
Satyam stock.
 Before scandal, Satyam was 4th ranked among IT
companies of India and after the scandal, it became
least valuable IT company in India.