Satyam Scandalam Sharamam

1. JOURNEY OF SATYAM
TO ASATYAM..

2. MADE BY:
• ANSHUL RAMNANI
• BAROS KHAN
• BINDI SHAH
• FARHEEN ANSARI
• FARAZ PATEL
• PRATIK PANCHAL

3. WHAT IS

4. • Mahindra Satyam – formerly known as Satyam
Computer Services Limited
• An Indian IT services company based in
Hyderabad, India
• Renamed Tech Mahindra effective from 24 June
2013 with merger approval by Andhra Pradesh and
Maharashtra high courts

5. • Offers a comprehensive range of services, including
software development, system
maintenance, packaged software integration and
engineering design services
• It was founded in 1987 by B Ramalinga Raju
• Listed on the Pink Sheets, the National Stock
Exchange and Bombay Stock Exchange

6. •AND HE REVEALED THE
TRUTH OF SATYAM...

7. • On 7th January, 2009
• From past 7 years the accounting books were falsified
• Profits were inflated caused by gaps in the balance
sheet
• Understated Liabilities, Overstated Debts
• Accrued Interests

8. SOON AFTER THIS DISCLOSURE
..
0
100
200
300
400
500
600
Amount(Rs)
Year
Satyam Share

9. 0
2000
4000
6000
8000
10000
12000 11464
1607
Company Worth ( Rs in Crore)

10. BECAME POPULAR AS

11. WHY DID THE THINGS
GO WRONG ?

12. • CFO Revealed during investigation:
It all started 6-7 years before this disclosure
Rs 10 Crore profits inflated as Rs 200 Crore
This gap in the balance sheet led to a fraud of Rs
7,800 Crore

13. The
Masterminds
V Srinivas
B Rama Raju
Ramalinga Raju
S
GopalaKrishnan
Talluri Srinivas

14. Meeting the
Expectations
• Growing Competition
• Threat of being Overtaken
Overconfide-
nce
• On his ability
Personal
Benefits
• Salary of non-existing
13,000 employees
Reasons
for doing
this

15. Management
Audit Section
Management
of unreal and
fictious fixed
deposits
The Strategy:

16. AND ONE LAST ATTEMPT TO
SAVE

18. Maytas infra &
Properties owned by
the sons of Raju
Major Shareholders
were not in favour of
this
Hence, Acquisiton
terminated by
calling it “Poor
Corporate
Governance”
They Planned to buy
Maytas to fill the
gaps in the balance
sheet
Therefore finally Raju
Confessed about the
fraud

19. RAJU’S CONFESSION LETTER
• He took the sole responsibility for all the above
mentioned fraud acts
• “It was like riding a tiger, not knowing how to get off
without being eaten,” he said
• “The aborted Maytas acquisition was the last
attempt to fill the fictitious assets with real ones”

20. Apart from the 5
masterminds Rajus
another
brother, Vice
President(Finance) &
other employees of
finance department
were caught
WHAT WAS THE
END?Tech Mahindra
acquired Satyam
on April 13, 2009
New CEO : A S
Murthy
New Board
appointed by the
Government
Chargesheet filed
against all the nine
on April 7, 2009

21. THANK YOU