The scam by Satyam computers shook the country when the chairman had confessed that all their accounts were falsified in order to impress the investors
This presentation is on satyam scam & was created for educational purpose.this presentation include various aspects of satyam scam such as satyam Company Profile, satyam Achievements , Overview of the satyam scam, How the satyam scam started to unravel, Modus operandi of satyam scam, Impact Of satyam Scam, Regulatory action etc.
Satyam - The Letter that Ramalinga Raju wrote, reveals shocking detailsguest69d931
Satyam [Get Quote] Computer on Monday plunged into a deep crisis, as B Ramalinga Raju resigned as its chairman after admitting to major financial wrong-doings and saying his last-ditch efforts to fill the "fictitious assets with real ones" through Maytas acquisition failed.
The beleaguered IT giant, already under scanner over the aborted acquisition of firms promoted by the chairman's family, received a rude shock days ahead of its January 10 board meeting, with Raju stepping down along with his brother and Managing Director B Rama Raju.
"It was like riding a tiger, not knowing how to get off without being eaten," Ramalinga Raju said in a letter to Satyam's board of directors, wherein he listed major financial wrong-doings over the years to inflate the profits.
Listed at New York Stock Exchange, the company could face regulatory action in the US, analysts said.
While Raju recommended DSP Merrill Lynch be entrusted the task of "quickly exploring some merger opportunities," the company informed the stock exchanges that the investment banker has terminated its engagement with Satyam.
Noting that every attempt to eliminate gaps in balance sheet, purely on account of inflated profits over several years, failed, Raju said: "I am now prepared to subject myself to the laws of the land and face consequences thereof."
Low percentage of promoter equity in the company, where four independent directors resigned in the last two weeks over the acquisition fiasco, could lead to a takeover and expose the gap, he said in the letter, also sent to regulator SEBI. The promoters' share in Satyam has now dipped to just over 3 per cent that too is pledged with lenders.
Shares of Satyam plunged by over 40 per cent immediately after the announcement of resignations, necessitating an overhaul of the Board and management.
Raju will continue as chairman till the Board finds a replacement, even as speculation was rife that Satyam President Ram Mynampati would take over as Chairman. Rama Raju would also continue as Managing Director, but only till the time the Board is expanded.
Ramalinga Raju requested the Board to "hold together" to take some important steps, while hoping that one of the Board members T R Prasad was "well-placed to mobilise support from the government at this crucial time."
Satyam is the country's fourth largest IT firm and has has over 51,000 employees. Giving details of the financial irregularities, Raju said the company's balance sheet as of September 30 carries "inflated (non-existent) cash and bank balances of Rs 5,040 crore (as against Rs 5,361 crore reflected in the books."
The balance sheet also carries "an accrued interest of Rs 376 crore which is non-existent, an understated liability of Rs 1230 crore on account of funds arranged by me (Raju), an overstated debtors position of Rs 490 crore (as against Rs 2651 crore reflected in the books," Raju said.
He further said that Satyam reported a revenue of Rs 2700 crore (Rs 27 billion) for the September quarter and an operating margin of Rs 649 crore (24 per cent of revenue) as against the actual revenue of Rs 2112 crore (Rs 21.12 billion) and an actual operating margin of Rs 61 crore (3 per cent of revenue).
"This has resulted in artificial cash and bank balances going up Rs 588 crore in Q2 alone," Raju said. "The gap in the Balance Sheet has arisen purely on account of inflated profits over a period of last several years (limited only to Satyam standalone, books of subsidiaries reflecting true performance).
"What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years," Raju further said.
"It has attained unmanageable proportions as the size of the company operations grew significantly... The differential in the real profits and the one reflected in the books was further accentuated by the fact that the company had to carry additional resources and assets to justify higher level of operat
The scam by Satyam computers shook the country when the chairman had confessed that all their accounts were falsified in order to impress the investors
This presentation is on satyam scam & was created for educational purpose.this presentation include various aspects of satyam scam such as satyam Company Profile, satyam Achievements , Overview of the satyam scam, How the satyam scam started to unravel, Modus operandi of satyam scam, Impact Of satyam Scam, Regulatory action etc.
Satyam - The Letter that Ramalinga Raju wrote, reveals shocking detailsguest69d931
Satyam [Get Quote] Computer on Monday plunged into a deep crisis, as B Ramalinga Raju resigned as its chairman after admitting to major financial wrong-doings and saying his last-ditch efforts to fill the "fictitious assets with real ones" through Maytas acquisition failed.
The beleaguered IT giant, already under scanner over the aborted acquisition of firms promoted by the chairman's family, received a rude shock days ahead of its January 10 board meeting, with Raju stepping down along with his brother and Managing Director B Rama Raju.
"It was like riding a tiger, not knowing how to get off without being eaten," Ramalinga Raju said in a letter to Satyam's board of directors, wherein he listed major financial wrong-doings over the years to inflate the profits.
Listed at New York Stock Exchange, the company could face regulatory action in the US, analysts said.
While Raju recommended DSP Merrill Lynch be entrusted the task of "quickly exploring some merger opportunities," the company informed the stock exchanges that the investment banker has terminated its engagement with Satyam.
Noting that every attempt to eliminate gaps in balance sheet, purely on account of inflated profits over several years, failed, Raju said: "I am now prepared to subject myself to the laws of the land and face consequences thereof."
Low percentage of promoter equity in the company, where four independent directors resigned in the last two weeks over the acquisition fiasco, could lead to a takeover and expose the gap, he said in the letter, also sent to regulator SEBI. The promoters' share in Satyam has now dipped to just over 3 per cent that too is pledged with lenders.
Shares of Satyam plunged by over 40 per cent immediately after the announcement of resignations, necessitating an overhaul of the Board and management.
Raju will continue as chairman till the Board finds a replacement, even as speculation was rife that Satyam President Ram Mynampati would take over as Chairman. Rama Raju would also continue as Managing Director, but only till the time the Board is expanded.
Ramalinga Raju requested the Board to "hold together" to take some important steps, while hoping that one of the Board members T R Prasad was "well-placed to mobilise support from the government at this crucial time."
Satyam is the country's fourth largest IT firm and has has over 51,000 employees. Giving details of the financial irregularities, Raju said the company's balance sheet as of September 30 carries "inflated (non-existent) cash and bank balances of Rs 5,040 crore (as against Rs 5,361 crore reflected in the books."
The balance sheet also carries "an accrued interest of Rs 376 crore which is non-existent, an understated liability of Rs 1230 crore on account of funds arranged by me (Raju), an overstated debtors position of Rs 490 crore (as against Rs 2651 crore reflected in the books," Raju said.
He further said that Satyam reported a revenue of Rs 2700 crore (Rs 27 billion) for the September quarter and an operating margin of Rs 649 crore (24 per cent of revenue) as against the actual revenue of Rs 2112 crore (Rs 21.12 billion) and an actual operating margin of Rs 61 crore (3 per cent of revenue).
"This has resulted in artificial cash and bank balances going up Rs 588 crore in Q2 alone," Raju said. "The gap in the Balance Sheet has arisen purely on account of inflated profits over a period of last several years (limited only to Satyam standalone, books of subsidiaries reflecting true performance).
"What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years," Raju further said.
"It has attained unmanageable proportions as the size of the company operations grew significantly... The differential in the real profits and the one reflected in the books was further accentuated by the fact that the company had to carry additional resources and assets to justify higher level of operat
Satyam Scam - Explanation of the events & FutureVarun Modi
Hi,
Here's one more presentation I gave in the 3rd semester of MBA in year 2008. The presentation is all about Satyam Scam.
There's a .PDF file attached in slide number 17 describing what lies ahead for the Satyam. Please don't forget to open it in order to understand the risks associated if Satyam gets acquired.
Thanks,
Varun M.
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
Palestine last event orientationfvgnh .pptxRaedMohamed3
An EFL lesson about the current events in Palestine. It is intended to be for intermediate students who wish to increase their listening skills through a short lesson in power point.
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
The French Revolution, which began in 1789, was a period of radical social and political upheaval in France. It marked the decline of absolute monarchies, the rise of secular and democratic republics, and the eventual rise of Napoleon Bonaparte. This revolutionary period is crucial in understanding the transition from feudalism to modernity in Europe.
For more information, visit-www.vavaclasses.com
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
3. CONTENTS
The rise of Satyam
Revelation by Raju
How did the fraud start?
Probable reasons
Maytas acquisition
Why did Raju confess?
Impact on the Nation
investigation
4. SATYAM COMPUTER SERVICES
Fourth largest IT outsourcing company of India.
Employees more then 50,000 people in India.
High global reputation.
Offers services to more then 500 MNC’S.
5. B RAMALINGA RAJU
Founder and former chairman of one of the biggest
IT giant of our nation
“SATYAM COMPUTERS”
…………………………. Guess what !! the prime
convict in the biggest scam of the country.
7. The Rise of Satyam
1987 : Satyam Computers Pvt. Ltd. Born.
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.
• Dataquest IT Man of the year award.
2002 :
CNBC’s Asian Business Leader – Corporate Citizen of
the year Award.
8. ACHIEVEMENTS
Fastest growing company of India listed in three
international exchanges i.e., NYSE, DOW &
EURONEXT.
Winner of Innovation award for partner
excellence in both 2007 and 2008 for giving
significant business value.
UK trade & investment India (UKTI) Business
award for corporate social responsibility.
Golden peacock award for excellence in
Corporate governance.
10. THE DISASTROUS REVELATION
• The Black day: 7th January, 2009
• Accounting fraud of over 7800 crores rupees
From past 7 years accounting books were cooked:
1. Profits were inflated.
2. Understated liability and overstated debts.
3. Accrued interests.
4. The gaps in the balance sheets are due to the Inflated
profits.
11. CONFESSION LETTER
Raju wrote in the confession letter :
“Every attempt to fill the gap failed & quote” .
It was like riding a tiger, not knowing how to get off
without being eaten”.
12. CONFESSION LETTER
Maytas Acquisition
Last attempt to fill the gap.
Top officials were unaware
Only MD and CFO were others.
No personal profits
Did not sell any shares from 8years.
13. M
MMMM
MINUTES AFTER REVELATION
MINUTES AFTER REVELATION
14. IMPACT OF SCAM
Stock Market Share-holders Indian economy
Stake-holders
Employees
Company Logo
15. SATYAM SHARES
Biggest single day fall for a stock in stock
market.
77%
Rs. 175 ( Jan 6th)
STOCK MARKET
BSE sensex fell by 749.05 i.e., 7.25%.
NSE fell by 192.40 points i.e., 6.18%.
COMPANIES WORTH
11464 crore 1607 crore.
All time low of Rs.11.50 on 9th Jan and
closed at Rs.23.75/-
Compared to highest of Rs. 524.90/- on
May 29,2008.
19. ILLUSIONIST
B.RAMA
T.SRINIVAS
RAJU
V. RAMALINGA
SRINIVAS RAJU
S.
GOPALAKRISHNA
20. THE ILLUSIONIST
Ramalinga Raju : Satyam former chairman
B Rama Raju : Brother of Ramalinga Raju
Former Managing Director
V Srinivas : Ex-Chief financial officer
S Gopalakrishnan : Price Waterhouse Auditor
Talluri Srinivas : Price Waterhouse Auditor
21. CFO revealed during investigation
Started 6-7 years ago.
10 crore was inflated to 200 crore in balance sheet.
This marginal gap went on expanding over years.
7800 Crore fraud
Company Logo
22. IMPORTANT DATES AND EVENTS
Dec 16, 2008 - decision to buy stake in
MAYTAS infrastructure .
Dec 17, 2008 - Satyam call of the MAYTAS
deal as a result of investor
revolt.
Dec 18, 2008
- Satyam announces a board
meeting on 29th in wake of
investor revolt.
23. IMPORTANT DATES AND EVENTS
(Contd..)
Dec 19, 2008 Post MAYTAS U-turn, Unpaid
files motion against Satyam and
promoters for $1.1 Billion
claiming fraud.
Dec 23, 2008
World bank confirms an 8 year
ban of Satyam for data theft
and bribery .
Dec 28, 2008 4 Board members resign in
wake of MAYTAS controversy
and board meeting postponed
to Jan 10th 2009.
24. IMPORTANT DATES AND EVENTS
(Contd..)
Jan 3, 2009 Promoter stake in Satyam
coming down to less than 5%.
Jan 7 & 8, Mr. B. R. Raju resigns and cites
2009 financial irregularities in the
book of accounts to the tune of
$1.5 Billion.
25. Among the “BIG 4”.
Other 3 are:
SATYAM AUDITORS
Deloitte
KPMG
Ernst &Young
PRICE
WATERHOUSE
s
COOPER
Functions:
Finance & Accounting, Performs non-core
internal audit, tax functions of
compliance, logistics Organization
& human resources.
26. The Auditors - PWC
PwC was paid 3.53 crore for the year 2008
Comparatively, same industry Infosys paid 1
crore
27. PwC - Partners in Crime ???
Previous record -
Satyam has also been accused of frauds in 2001 and
2003.
No importance was given to this.
Getting third party evidence -
No bank confirmation on fixed deposits
Accrued interest(fixed deposit)
Debtors confirmation
Factors overlooked -
Changing of accounting years
Huge debt despite cash surplus
28. PwC - Partners in Crime ???
What could have been sensed ?
Excess cash:
No distribution among share holders nor invested
to earn valuable interest
Operating margin:
Peer companies - 20-25%
Satyam - 3%
Recession:
Huge profits compared to others always a chance
of creative accounting.
29. PROBABLE REASONS
PRESSURE TO MEET Growing Competition
EXPECTATION Threat of being overtaken
OVERCONFIDENCE On his ability
Siphoning of funds
PERSONAL BENEFITS Salary of non-existent 13000
employees
“Since about seven years we wanted to show more income in the
accounts to avoid others from involving in the company affairs
and any possible hostile acquisition.
32. WHY DID RAJU CONFESS
The gap in the balance sheet reached
unmanageable proportions and could not be
filled anyhow in future.
The whistle blower whose email to a Satyam
board member triggered a chain of events .
33. IMPACT OF SCAM ON THE NATION
Jobs of over 50,000 technocrats were at risk.
Country’s booming economy feared slight
collapse as country's GDP fell by estimated 0.4%.
India’s IT sector suffered downturn as its image
was tarnished globally.
World Bank barred Wipro, Mega soft and 3 other
IT companies after the Satyam debacle.
35. CBI filed a charge sheet against nine on April
7,2009.
Apart from illusionist four others are :
- Rajus second brother S. Raju
- 2 employees from finance wing
- Vice president (finance)
CBI investigating further
38. SATYAM UNDER RECONSTRUCTION
Appointing new board.
Board appointed by government :
• former Nasscom chief – Kiran Karnik,
• Chairman HDFC – Deepak Parikh
• Former SEBI member – C. Achuthan .
Satyam shares gained over 44% day after
appointment of the new board.
New CEO – A S Murthy
Tech Mahindra acquired Satyam on April
13,2009.