SATYAM

SCAM

Do You Know Him?

B RAMALINGA RAJU FOUNDER AND FORMER CHAIRMAN OF ONE OF THE BIGGEST IT GIANT OF OUR NATION SATYAM COMPUTERS AND GUESS WHAT THE PRIME CONVICT IN THE BIGGEST SCAM OF COUNTRY

SATYAM COMPUTERS WHAT IT IS ABOUT ?

FOURTH LARGEST IT OUTSOURCING COMPANY OF INDIA EMPLOYEES MORE THAN 50,000 PEOPLE IN INDIA HIGH GLOBAL REPUTATION OFFERS SERVICES TO MORE THAN 550 MNCS

So who has to be blame?

Former chairman B.RAMALINGA RAJU IS THE PRIME CONVICT IN THE CASE WITH SEVERAL OTHER BOARD MEMBERS

HOW DOES SUCH A SCAM MATTER?

HOW IT HAPPENED

An Announcement That Shocked the Corporate India That B.Ramalinga Resigned .

The Companys Balance Sheet Was Inflated To Rs 5,361 Crore At The End Of September 2008 Against The Actual Rs 5,040 Crore.

There is an artificial cash balance of Rs 588 crore in sept 2008. Raju also admitted that Satyam's profits were inflated over several years. And it is difficult for him to stop this fraud gap. He added, "It was like riding a tiger, not knowing how to get off without being eaten." The Maytas deal was the last attempt to fill the fictitious assets with real ones.

Raju also said Rs 1,230 crore was arranged to Satyam, which is not reflected in its books, to keep Satyam's operations running. For this the promoter had to pledge the promoter shares and raising funds from other sources.

HOW DID THE SCAM MATTER TO THE NATION ?

jobs of over 50,000 technocrats were at risk countrys 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

How it was caught?

Satyam Computers had on December 16, 2008, announced that it will acquire two group firms Maytas properties and Maytas Infra for $1.6 billion (about Rs 8,000 crore) as part of its diversification strategy , this create a alleged violation of corporate governance laws.

HOW GOVERNMENT KNOWS IT ?

The ministry of corporate affairs later ordered a probe into whether the company violated any corporate governance laws while entering into such a deal involving share holders' money.

IMPACT ON STOCK MARKET

News of what is possibly the country's biggest corporate fraud, sent the indices tumbling. The benchmark Sensex slipped over 7% on Wednesday, 7 January 09. Companies perceived to have poor corporate governance standards were most affected. The companys share price has fallen 21.3 per cent since December 15, the day before the crisis broke.

SALVAGING SATYAM
To stabilize the sinking Satyam Computers, the Government nominated banker Deepak Parekh, IT expert Kiran Karnik and former SEBI member C Achutan to the IT company's board. .

KIRAN KARNIK FORMER PRESIDENT OF NASSCOM

ALL WELL THATS END WELL

Anand Mahindra, Chairman, Tech Mahindra, the new owner of Satyam, will address the first board meeting of the company post the Rs 2,890-crore takeover, giving hope and future to Satyams 45,000-50,000 employees. A moment of truth for Satyam and a victory for the government and the regulators.

CONCLUSION
CBI Registers FIR Against RajuAnd Others In Satyam Scam

Satyam Computer Gets CLB's Approval For Stake Government Set To Take Over MaytasInfra And Maytas Property
CBI To Probe Satyam Accounting Fraud Case Supreme Court Permits SEBI To Interrogate Ramalinga Raju And His Brother

Govt. Plans Rs 2000 Crore Bailout Package For Satyam

IDBI, Bob And LIC To Bailout Satyam With Rs 600CroreLoan

Thank you