1. A Presentation on Satyam Scam Presented To : Miss Komal madam Presented By : Nirali Bavishi MAM : 1 En. Roll No. : 03 Smt. S. H. Gajera MBA Mahila college 2. 88 Satyam scam Satyam scam Friday, October 14, 2016 2 3. INTRODUCTION 3Friday, October 14, 2016 4. Who is b. Ramalinga Raju o Born o Family o Residence o Nationality o Occupation 4Friday, October 14, 2016 5. The Rise of Satyam 5 Year Satyam rise 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. 2002 Dataquest IT Man of the year award. Friday, October 14, 2016 6. Career of B. Ramalinga Raju He was first businessman in the field of construction and textiles. Raju founded Satyam in 1987. Satyam was listed in INDIAN STOCK EXCHANGE in 1991. Listed in NEW YORK STOCK EXCHANGE in 2001. Satyam was listed in UNESCO in 2008. There were 52000 employees working in Satyam in September 2008 Friday, October 14, 2016 6 7. Awards and Achievement Ernst & Young Entrepreneur of the Year Services Award 1999. Dataquest IT Man of the Year Award 2000 Asia Business Leader Award 2002 Ernst & Young Entrepreneur of the Year 2007 (revoked after the fraud was confessed) Golden Peacock Award for Corporate Governance 2008 (revoked after the fraud was confessed) Employees spread over many countries Friday, October 14, 2016 7 8. The Entire Story Ramalinga Raju founded Satyam Computers in 1987 and was its Chairman until January 7, 2009 when he resigned from the Satyam board after admitting to cheating six million shareholders. After being held in Hyderabad Chanchalguda jail on charges including cheating, breach of trust and insider trading. Raju was granted bail on 25.3.2011. Raju was granted bail on condition that he should report to the local police station once a day and that he shouldn't attempt to tamper with the current evidence. 8Friday, October 14, 2016 9. CON...... A botched acquisition attempt involving Maytas in December 2008 led to a plunge in the share price of Satyam. In January 2009, Raju indicated that Satyams accounts had been falsified over a number of years. He admitted to an accounting dupery to the tune of 7000 crore rupees or 1.5 Billion US Dollars and resigned from the Satyam board on January 7, 2009. 9Friday, October 14, 2016 10. People Behind This Scam 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 10Friday, October 14, 2016 11. THE SCAM 1. Raju and his brother, B Rama Raju, were arrested by the Andhra Pradesh police on charges of breach of trust, conspiracy, cheating, falsification of records. 2. Raju has mislead various investors. 3. Raju had also used dummy accounts to trade in Satyam's shares. 4. He has violated the insider trading norm. 5. Funds from Satyam were diverted to mayqas. 6. On 22 January 2009,CIDtold in court that the actual number of employees is only 40,000 and not 53,000 as reported earlier 11Friday, October 14, 2016 12. CON…… Raju wanted to take over his MAYTAS INFRA and MAYTAS PROPERTIES. He was blamed that he was using the funds of the investors for the family business. There were allegations that funds from Satyam were diverted to Maytas, causing the Government agencies to verify the infrastructure company’s records. 12Friday, October 14, 2016 13. 13Friday, October 14, 2016 14. HOW DID IT HAPPENED? Floated with two other company Without taking permission of shareholder Transfer of money Failed to return money 14Friday, October 14, 2016 15. Reasons for Satyam Scam 1. Raju wanted to take over his MAYTAS INFRA and MAYTAS PROPERTIES. 2. He was blamed that he was using the funds of the investors for the family business. 3. World bank had banned the satyam to take any services for 8 years (due to illegal profit and lack of essential document). 15Friday, October 14, 2016 16. HOW THIS SCAM HAS RELATION WITH “MAYTAS” Maytas refers to a group of companies founded by B. Ramalinga Raju. It includes Maytas Properties and Maytas Infra Limited. A property development company founded in 2005. Maytas Infra Limited: An infrastructure development, construction and project management company. Maytas Infra was originally run by Satyam Computer Services founder B Ramalinga Raju. It came under the scanner due to its association with B. Ramalinga Raju. 16 Friday, October 14, 2016 17. 17Friday, October 14, 2016 18. Conclusion Friday, October 14, 2016 18 19. Friday, October 14, 2016 19