mnjdhdbh dncdjbjh

1. Satyam
Scandal….
Cooking books of accounts
Presented By : Mintu Butani(04)
Presented To : Miss. Khushbu Savaliya

2. Introduction

3. About Mahindra Satyam
 Former type - Public company
 Industry - IT services, IT consulting
 Fate - Merged into Tech Mahindra
 Successor - Tech Mahindra
 Founded - 2009
 Defunct - 2013
 Headquarters - Hyderabad, India
 Services - IT, business consulting and
outsourcing services
 Website - www.mahindrasatyam.com

4. About Scam
 It is about corporate governance and
fraudulent auditing practices allegedly in
connivance with auditors and chartered
accountants. The company misrepresented its
accounts both to its board, stock exchanges,
regulators, investors and all other
stakeholders.
 8 India’s Largest Froude- Rs.7800crore( now
estimated as 14000crore)

5. Who is Ramalinga Raju ?
 Byrraju Ramalinga Raju is the former chairman
and CEO Satyam Computer Services from 1987
and till 7 January 2009.
 Born - 16 September 1954 (age 63)
Bhimavaram, Andhra Pradesh, India
 Nationality - Indian
 Occupation - former Chairman of Satyam Computer
Services
 Status - Criminal

9. Satyam Scandal: Who, what and
when
 What: The scandal broke in 2009 when
founder-chairman of Satyam Computers
Ramalinga Raju confessed that the company’s
accounts were tampered with. He disclosed a
Rs.7,000-crore accounting fraud in the balance
sheets.

10. Cont….
Who did it ?
- 33 year old assistant manager (finance)
Srisailam "got created the 7561 falsified sales
invoices ..(and) hid them from business
divisions.. got the data fed into the systems.“

12. Cont….
 When: The timeline of the scam
- January 7, 2009 :Ramalinga Raju dropped a
letter-bomb on unsuspecting investors,
employees and the government confessing to
a Rs.7,136-crore fraud committed by him and
his close circle of relatives and employees at
the company. Ramalinga Raju resigns.
- Jan 8, 2009: Citibank freezes Satyam's 30
accounts

13. Cont….
- Jan 9, 2009: Ramalinga Raju and his younger
brother B. Rama Raju arreste. Central govt
disbands Satyam’s board, to appoint its own
10 directors.
- Jan 10, 2009: Satyam’s former CFO Srinivas
Vadlamani arrested.
- Jan 11, 2009: Government appoints Deepak
Parekh, Kiran Karnik and C. Achuthan to
Satyam board.

14. Cont…
- February 2009: CBI takes over investigation,
goes on to file three charge sheets.
- Mar 6, 2009: Gets SEBI nod for bidding
process to select investor.
- April 22, 2009: Tech Mahindra makes open
offer to Satyam shareholders at Rs. 58/share,
offer to close June 9.
- June 22, 2009: Mahindra unveils new brand
identity for Satyam, Mahindra Satyam.

15. Cont….
- 2010: Raju says charges levelled by CBI are
false.
- November 2, 2011: Supreme Court grants bail
to Raju since CBI failed to file charge sheet on
time.
- October 28, 2013: Enforcement Directorate
files a criminal complaint against 47 persons
and 166 corporate entities headed by
Ramalinga Raju.

16. Cont….
- December 8, 2014: Ramalinga Raju and three
others given six months jail term by SFIO.
- December 23, 2014: Judge postpones verdict
citing voluminous documents.
- March 9, 2015: Special court defers verdict till
April 9.
- April 9, 2015: All 10 accused found guilty.

17. Why he did the Scam ?
 He wants to purchase several thousands of
acres of land across Andhra Pradesh to ride a
booming realty market.

18. Awards
• Dataquest IT Man of
the Year in 2000,
• CNBC's Asian
Business Leader
• Corporate Citizen of
the Year award in
2002 and
• E&Y Entrepreneur of
the Year Award in
2007.

19. Who controls Satyam now ?
• Now Satyam is running with the help of
following people
Mr. Rakesh Soni
(CEO)
Mr. Anand Mahindra
(Chairman)
C. P. Gurmani
(Managing
Director)

20. Failure of Corporate Governance at
Satyam
 Stakeholders
- Shareholders
- Employees
- Clients
- Bankers
- Government

22. Share Price of Satyam ltd.
 Satyam Shares : Lost 77% to end at Rs. 40.25
from Rs. 175
BSE : Closed at 9586.88Sharply down 749.05
pointed or 7.25%

23. Conclusion

24. Thank You……