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SATYAM SCAM Presented by , AMIT RAGHAV "SINKING SHIP OR TIP OF ICEBERG"
SATYAMSCAM
Presented by,AMIT RAGHAV
"SINKING SHIP OR TIP OF ICEBERG"
SATYAM COMPUTERS WHAT IT IS ABOUT ?
1987: ESTIBLISHED BY B.RAMLINGAN RAJU1991:LISTED IN BOMBAY STOCK EXCHANGE2006: SATYAM GAINS PROFITS MORE THAN ONE ARAB DOLLAR.4TH LARGEST IT OUTSOURCING COMPANY OF INDIA52585 EMPLOYEES ON 30TH SEP 2008.HIGH GLOBAL REPUTATIONOFFER SERVICE TO MORE THAN 550 MNC.
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
BRIEF INTRODUCTION OF B RAMALINGA RAJU
Date of Birth: 16 Sep. 1954
Education: B-com (Andra loyala college, vijayvada)
M.B.A (Olio university, America)
President course (Harvard university)
Award: I.T man of the year in 2000
C.N.B.C asian business Leader corporate citizen of the year award 2002
Business: Shri satyam mill in 1977
: Satyam construction
:Satyam computer 1987
Achievement of satyam computers 1987: Established as corporate or private
Limited 1991: Recognized as a Public Limited company
IPO oversubscribed by 17 Times 1993 :Awarded ISO 9001 Certification 1999: Satyam launch 1st Internet service (Sify
Broadband) 2002 : Satyam BPO launched in Singapure 2005: Largest global development center
outside India 2006: Revenue exceeds US $ 1 billion
SATYAM SCAM INVOLVES AMOUNT CLOSE TO 8000 CRORE
SATYAM IS THE FOURTH LARGEST IT FIRM IN INDIA CARRYING INDIA'S OUTSOURCING IMAGE GLOBALY SO IT'S ABOUT NATION'S IMAGE
HOW DOES SUCH A SCAM MATTER?
How it Happened?
23rd SEPTEMBER 2008 SATYAM GETS GOLDEN PEACOCK AWARD.
o SATYAM COMPUTERS HAD ON DECEMBER 16, 2008 ANNOUNCED THAT IT WILL ACQUIRE TWO GROUP FIRM – MAYTAS PROPERTIES AND MAYTAS PROPERTIES AND MAYTAS INFRASTRUCTURE FOR $ 1.6 BILLION (ABOUT RS. 8000 CRORE) AS PART OF ITS DIVERSIFICATION STRATEGY, THIS CREATE A ALLEGED VIOLATION OF CORPORATE GOVERNANCE LAWS.
17TH DEC MR. RAJU WITHDRAWN HIS DECISION AFTER THE PROTEST OF INVESTORS.
ON 23RD DEC. WORLD BANK H DECIDED NOT TO WORK WITH SATYAM COMPUTERS FOR THE PERIOD OF 8 YEARS.
On 7th Jan 2009 AN ANNOUNCEMENT THAT SHOCKED THE CORPORATE INDIA THAT B.RAMALINGA RESIGNED AND ACCEPT THE FRAUD OF APPROX 7000 CRORE.
GOVT. CEASES THE 30 BANK ACCOUNTS.
Satyam Fraud THE COMPANY’S 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.
NOT ONE DAY FRAUD
It was not a one day fraud It is a strategic planning because the inflated profit going an for year.
In 2008 Top management of satyam has sold out large amount of share
Ram mynam pati 9.50 (Lakh Share)
Keshad panda 7.10(Lakh Share)
Pavan moddali 5.95(Lakh share)
Ravi Banmakanti 5.50(Lakh Share)
Virender Agrawal 5.00(Lakh Share)
WHEN FRAUD CAME INTO LIGHT 7th Jan .2009 B Ramalinga Raju who the
founder of this company ,after resigning of B Ramalinga Raju ,BSE fall down 749 point and nifty fall down 192 Points.
Share value of satyam fall down (NSE)
179.1 to 39.95 approx 77.69% 55% share down in New York stock exchange
HOW DOES THE SCAM MATTER TO THE NATION ? JOB’S OF OVER 50,000 TECHNOCRATS
WERE AT RISK COUNTRY’S BOOMING ECONOMY
FEARED SLIGHT COLLAPSE AS COUNTRYS GDP FELL BY ESTIMATED 0.4%
INDIA’S IT SECTOR SUFFERED DOWNTURN AS IT’S IMAGE WAS TARNISHED GLOBALLY
IMPACT ON STOCK MARKET
The company’s share price had fallen 21.3 per cent since December 15, the day before the crisis broke
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.
Jokes on Satyam Scam
Raju Raju sat on a wall Raju Raju had a great fall Balance sheet diedShareholders cried Raju Raju made a fraud
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.
Charges Proved by CBI 2315 Pages in Charge sheet. Total Fraud is approx 7136 Crore. Arresting of 9 Person (6 from Satyam
computers, 2 Auditors and 1 outsiders) Fudging the balance sheets and selling
company shares at times advantageous to them.
Filed cases under Sections 120 B, 420, 496, 467, 472 and 477A of the Indian Penal Code.
Satyam on Sale
KIRAN KARNIKFORMER PRESIDENT OF NASSCOM
On Feb 6th 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.On 6th March Satyam get the permission from SEBI to sale 51% share to sale.
.
Who wants to Purchase Satyam
L&T Tech Mahindra Spice Group Hinduja Equity Firm wilber (An American Co.)
Finally Sold the Satyam
The auction have decided between 9 to 13 April and lastly the date decided 13th April.
Share purchase by Tech mahindra. @58/share.
Tech Mahindra raised Rs. 600 crore
ALL WELL THAT’S END WELL
Anand Mahindra, Chairman, Tech Mahindra, the new owner of Satyam.
Address the first board meeting of the company post the Rs 2,890-crore takeover, giving hope and future to Satyam’s 45,000-50,000 employees.
A moment of truth for Satyam and a victory for the government and the regulators.
Thank You
