80663633 satyam case ppt
TRANSCRIPT
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SATYAM SCAM
The Satyam computer services scam waspublicly announced on January 7 , 2009
Chairman Ramlinga Raju confessed that the
accounts were falsified . Satyam scam involves amount close to 10,000
crore
According to the statement of Mr. Raju , the
balance sheet shortfall is more than 7000 crore. Due to the overstating in the balance sheet , the
inflated prices of the stock helped themanagement in earning money.
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Prime accused in the multi-crore accountingfraud in Satyam Computers were formerCompany chairman Ramalinga Raju and 6others which included the M.D. B. Rama Raju,
Ex-Satyam CFO Srinivas, former employees-Venkatapati Raju, Srisaila and auditor of SatyamSubramani Gopalakrishnan.
They are accused of criminal conspiracy, criminalbreach of trust, cheating, forgery andfalsification of accounts.
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SCAM DETAILS
The scam opened during the process of MaytasAcquisition.
However the investors aborted the process.
At this point the Board Members Resigned.
On 7th Jan., 09, Chairman resigned after
announced involvement in fraud.
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Auditors responsible in the
Satyam scam
The audit firm PW (Price Waterhouse) hasnamed the following accounting professionalsresponsible for satyam scam :
1. P Shiva Prasad2. C .H Ravindranath
3. S Gopalakrishnan
4. Srinivas taluri
These auditors are held answerable for the 7000crore corporate fraud .
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CORPORATE GOVERNANCE CORPORATE GOVERNANCE
Corporate Governance is typically perceived as dealing with problems thatresult from the separation of leadership & control.
DEFINITION:-
Corporate Governance may be defined as holding a balance betweeneconomic & social goals & between individual & commercial goals. A goodcorporate governance is one where a firm commits & adopts ethicalpractices across its entire value chain & in all of its dealing with a wide groupof stakeholders encompassing employee, customer, venders, regulators &shareholders in both good and bad times.
Share Holder
Board
Management
Employee
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IMPACT
It is surely going to be more difficult for otherIndian IT service players to win business.
Undoubtedly, this is going to hurt the
prospects of foreign money flowing intoIndia.
Global perception about indian companies.
Indian stock market slipped over 7% on 7th
Jan., 09.
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STEPS TO SAVE THE COMPANY
The Indian Government has stated that itmay provide temporary direct or indirectliquidity support to the company
Govt. has appointed new board of membersfor Satyam consisting of heavy weights fromIndia's corporate sector.
Satyam is seeking bank loans to help coversalaries and other operating expenses
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Recent progress
Satyam computer services which has beenacquired by Tech Mahindra , has filed a suitagainst the B.O.D ,certain employees and PW.
The suit is filed seeking damages for fraud ,negligence in performance of duties.