COMPUTER PROJECT

SUBMITTED BY-SONALI KUMARI BCOM(P) 2608

GROUP-E KALINDI COLLEGE (DU)

Acknowledgement

• IT IS MY PLEASURE TO BE INDEBTED TO VARIOUS PEOPLE WHO DIRECTLY OR INDIRECTLY CONTRIBUTED IN THE DEVELOPMENT OF THIS WORK AND WHO INFLUENCED MY THINKING, BEHAVIOUR, AND ACTS DURING THE COURSE OF STUDY.

• I AM THANKFUL TO MRS. GUNJAN AND MRS. DAISY FOR HER SUPPORT, COOPERATION, AND MOTIVATION PROVIDED TO ME DURING THE TRAINING FOR CONSTANT INSPIRATION, PRESENCE AND BLESSINGS.

• LASTLY, I WOULD LIKE TO THANK THE ALMIGHTY AND MY PARENTS FOR THEIR MORAL SUPPORT AND MY FRIENDS WITH WHOM I SHARED MY DAY-TO-DAY EXPERIENCE AND RECIVED LOTS OF SUGGESTIONS THAT IMPROVED MY QUALITY OF WORK.

Satyam scandal

SONALI KUMARI

BCOM(P) 2608

FRAUD

COMPANY BACKGROUNDFOUNDER- B RAMALINGA RAJU ESTABLISED- 24 JUNE 1987

SATYAM MEANS “TRUTH” CEO – MR.RAM MYNAMPATICFO – MR.VALDAMANI SRINIVASHEADQUARTER - HYDERABAD1ST INTERNET SERVICE PROVIDER SHAREHOLDERS- MORE THAN 6 LAKHPARTNERS * 690 GLOBAL CUSTOMERS * 185 FORTUNE * 500 CORPORATIONSEMPLOYEE STRENGTH – 52865

1) BANGALORE

2) BASINGSTOKE3) BEIJING4) BHUBNESWAR5) BUDAPEST6) CALIFORNIA7) CHENNAI8) CHICAGO9) DALIAN10) GEORGIA

11) GURGAO12) HARTFORD13) HYDERABAD14) KUALA15) LUMPUR16) MELBOURNE17) MUMBAI18) MUNICH19) MISSISSAUGA20) NEW JERSEY21) ONTARIO22) PUNE

23) SAO PAULO24) SHANGHAI25) SINGAPORE26) SYDNEY27) TOKYO28) WIESBADEN

DEVELOPMENT CENTRE

The company was listed with NEW YORK STOCK EXCHANGE,NATIONAL STOCK EXCHANGE , and the

MUMBAI STOCK EXCHANGE. In June 2009,the company unveiled its new brand identity

“MAHINDRA SATYAM”

ACHIVEMENTS • Satyam was the 2008 winner of the coveted Golden Peacock

Award for Corporate Governance under Risk Management and

Compliance Issues

• SAP Pinnacle Award 2008 under "Service – Ecosystem Expansion

(Growth)" category, awarded by SAP

• Partner Innovation Award for Anti-Money Laundering (AML)

solution. Awarded by Pegasystems

• Entrepreneur of the Year Award 2007 for Ramalinga Raju ,

Satyam's founder and chairman- awarded by Ernst & Young (E&Y)

• Satyam's internal audit team was awarded the recognition of

commitment (RoC) award from The Institute of Internal Auditors, USA.

• Citizenship Partner of the Year Award, 2007- awarded by Microsoft.

• Vision, Impact, Progress (VIP) Award, 2007- Computer Associates

• Second-Best Employer in India –awarded by Hewitt India

• Competitive Strategy Leadership Award for Offshore Testing Market-

awarded by Frost & Sullivan

• Asian MAKE (Most Admired Knowledge Enterprise) Award- awarded

by Teleos, in association with KNOW Network

• Indian MAKE (Most Admired Knowledge Enterprise) Award-

awarded by Teleos, in association with KNOW Network

• Award for "Strengthening Customer Relationships- awarded by

ITSMA (IT Services Marketing Association)

• Winner of the First "Partner Innovation- Award-awarded by

Software AG/webMethods

• Ranked # 1 in the ASTD BEST Award- awarded by American Society

for Training and Development (ASTD)

• First Asian company to rank in Training Magazine's Top 125

companies for learning.

Who is B. RAMALINGA RAJU

• Born- 16 september 1954• He was the founder of satyam computers• Satyam was establised in the year 1987 after trying

his luck into other business such as construction and textiles.

• Raju & his team of 20 employees started satyam that obtained the contracts for IT project ,mostly from US companies

• Satyam then picked up significantly and became a multinational company with widespred span over many countries.

• Satyam was ranked as one of the top five IT major companies in india.

• He resigned from the satyam board on january 7,2009 after admitting that he was cooking books of satyam.

• He confess that there were fake entries of cash reserves of one billion us dollars in the company balance sheet

• Raju is currently held in hyderabad’s chanchalguda jail on criminal charges including fraud, forgery,cheating,embezzlement and insider trading

White collar crimes “Satyam scam”

Jan 07 2009

Dec 28 2008

satyam board announce the decision to buy stake in maytas infrastructure a company owned by the promoter family of satyam for inr 65 billion

satyam announces a board meeting on 29th says it consider buy back to keep investors trust

world bank confirms an 8 year ban of satyam for date theft and bribery

sale of pledge share of promoters result in the promoter stake in satyam coming down to less than 5%

satyam calls of the maytas deals as a result of investors revolt.

unpaid files motions against satyam and promoters for inr 55 billion claiming fraud.

4 board members resign in wake of maytas controversy , market speculation talks of hostile take over by peers

Mr. Ramalinga Raju resign and confesses/cites financial irregularities in the book of accounts to the tune of inr 71.36 billion

Dec 16 2008

Dec 18 2008

Dec 232008 Jan 03

2009

Dec 17 2008 Dec 19

2008

How did it happened ?

• Floated two others companies for their own purpose

• Without taking permission of the shareholders• Failed to repay the loans• Transfer of money• Satyam computers were banned• Sold of shares• Resignation by Ramalinga.

SATYAM SCAM DETAILS• In mid-december 2008,satyam announced

acquisition of two companies- maytas properties and maytas infrastructure owned by the family membes of satyam’s founder and chairman Ramalinga Raju.

• It planned to acquire 100% and 50% stakes in maytas property and infra for $1.6B.

• Due to adverse reaction from institutional investors and the stock markets , the deal was withdrawn within 12 hours.

• Questions were raised on the corporate governance practices of satyam with analysts and investors questioning the company’s board on the reasons for giving consent for the acquisition as it was a related party transaction

• Afterveledr the deal was aborted , four of the prominent independent dirctors resigned the board of the company.

• In early january 2009, raju reveled that the revenue and profit figure of satyam had been inflated for past several years. The following were the inflated figures:

• Inflated cash and bank balance Rs.5040cr• Non existent accrued interest Rs.376cr• Undersated liability of Rs.1230cr • Overstaed debtor position of Rs.490cr • Inflated staff by 12000(actual were 40000)• Revenue of Rs.2700cr(actual were Rs.2112cr)• Operating margin to be 6494cr(actual were 61cr)

After scam

B.RAMALINGA RAJU

IN CHANCHALGUDA JAIL HYDRABAD

THANKYOU

SONALI KUMARI