1) The document summarizes the Satyam scam, where the chairman of Satyam Computers, Ramalinga Raju, admitted to a corporate fraud of over Rs. 7,800 crore by falsifying the company's accounts. 2) Raju and his brother were arrested on charges of breach of trust, cheating, and falsification of records. It was found that Raju had inflated profits, understated liabilities, and diverted funds to his family's companies. 3) The fraud had major impacts, including Satyam losing partnerships, employees facing uncertainty over salaries, and hundreds of employees being stranded overseas after contracts were canceled. In the end, Tech Mahindra acquired Satyam Computers

1. Satyam Scam
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Presented By:-
Veenu Raj

2. SATYAM Meaning TRUTH.
Now, Satyam :-
A Rs. 7000cr LIE.
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3. Introduction
Satyam Computers was founded in 1987
It converted into Public Ltd Co. in 1992
The company offers consulting and information
technology services panning various sectors
Satyam's network covers 66 countries and 53000
employees across six continents. It is listed in BSE,
NSE, NYSE
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4. He is Ramalinga Raju born on September 16,
1954. A traditional agricultural family of the
KSHATRIYA (RAJU) Community of Andhra
Pradesh.
He founded Satyam Computers and was its
Chairman until January 7, 2009 when he
resigned from the Satyam board after admitting
to corporate fraud.
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Ramalinga Raju

5. The Rise of Satyam
1991 : June - First Fortune 500 Client. August - Converted into Public Ltd.
Co.
1994 : The Big Break- Allies with Dun and Bradstreet Corp.
2000 : Declared one of the 100 most pioneering technology companies by
World Economic Forum.
2002 : CNBC’s Asian Business Leader - Corporate Citizen of the Year
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6. The Scam
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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 insider trading norm.
Funds from Satyam were diverted to Maytas.
On 22 January 2009, CID told in court that the actual number of
employees is only 40,000 and not 53,000 as reported earlier and that Mr.
Raju had been allegedly withdrawing INR 20 crore rupees every month
for paying these 13,000 non-existent employees.

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8. Raju wanted to take over his MAYTAS INFRA and MAYTAS
PROPERTIES.(company of his sons). He was blamed that he was using
the funds of the investors for the family business. There were allegations
that funds from Satyam were diverted to Maytas, causing the
Government agencies to verify the infrastructure company’s records as
well.
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9. Hidden Facts
Two auditors of Satyam Computer, appointed by PwC, were not
partners of the audit firm at that time
Those auditors had no role in fraud as they were given forged
documents by the company
CFO of Satyam mislead directors: Luthra & Luthra – a Delhi- based
law firm – has done the due diligence for Maytas Properties
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10. The black day
7th January, 2009
Accounting fraud of over 7800 crore rupees
From past 7 year accounting books were cooked
-Profit were inflated
-Understated liability and overstated debts
-Accrued interests
-The gaps in the balance sheets are due to the inflated profits
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11. Impact
Karnataka Govt. decided to review airport projects in Maytas
hands
Satyam lost Cisco joint venture
E&Y snapped ties with Maytas projects
National Australia Bank, Qantas, Telstra and Caterpillar
realised the harsh realities of offshore outsourcing
ICAI comes under pressure to come out with guidelines to make
auditor rotation compulsory
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12. Sad Results
Satyam employees face a bleak future
Satyam employees were told that there is no assurance if they will receive
salaries beyond January
US-based employees of SCS lose health cover, credit cards
Over 400 SCS professionals were stranded in Bloomington, Illinois, US
after State Farm Companies canceled a multiyear contract
200 SCS employees in Japan were told to rush back to India
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13. Reboot Satyam Tech Mahindra wins Satyam
Computers Services
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Tech M Stock shot up 12%
Winning Bid: Rs. 58 per share (i.e. Rs 2,889 crore)

14. Conclusion
More scandals like Satyam can be avoided if
If auditing firm is honest.
SEBI plays an active role.
Periodic review of legal compliance reports by
independent directors.
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15. THANK YOU
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