satyam scandal
Post on 26-May-2015
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JOURNEY OF SATYAM TO ASATYAM..
MADE BY:
• ANSHUL RAMNANI
• BAROS KHAN
• BINDI SHAH
• FARHEEN ANSARI
• FARAZ PATEL
• PRATIK PANCHAL
WHAT IS
• 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
• 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
•AND HE REVEALED THE
TRUTH OF SATYAM...
• 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
SOON AFTER THIS DISCLOSURE ..
Jan/08 Jan/090
100
200
300
400
500
600
Satyam Share
Year
Am
ount
(Rs)
Series10
2000
4000
6000
8000
10000
1200011464
1607
Company Worth ( Rs in Crore)
BECAME POPULAR AS
WHY DID THE THINGS GO WRONG ?
• 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
The Masterminds
V Srinivas
B Rama RajuRamalinga Raju
S GopalaKrishnan
Talluri Srinivas
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
Manage
ment
Audit Section
Management of unreal and fictious fixed
deposits
The Strategy:
AND ONE LAST ATTEMPT TO SAVE
ACQUISIT
ON
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
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”
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
THANK YOU
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