Presented By:Ankita GuptaAnkita Yadav Sneha GuptaMani SharmaToshiba Shakir andTripti Singh Chandel

PRESENTATIONON

SATYAM SCANDAL

ContentsIntroduction.

About Mahindra Satyam. Corporate Identity and Industry

presence. Ramalinga Raju

Satyam Scandal Reasons Balance sheet Stock Market Reaction

Effect of scandal in Indian EconomyEvents leading to fall.

IntroductionSatyam Computer Services Limited was

founded in 1987 by Mr. B Ramalinga Raju. The company offers consulting and information technology services spanning various sectors, including engineering and product development, supply chain management , client relationship management , business process management and business intelligence. The company listed on the New York stock exchange, national stock exchange, and the Mumbai stock exchange. In June 2009, the company unveiled its new brand identity “Mahindra Satyam”.

About Mahindra SatyamIt spans over 60 countries in the world.Development and delivery centres are located in US, Canada, Brazil, UK , Hungry, Egypt,UAE, India, China, Malaysia, Singapore and Australia.Development centres in india are Banglore, Chennai, Pune, Mumbai, Delhi, Kolkata, Bhubaneswar and Visakhapatanam.

About Mr. B.Ramalinga RajuByrraju Ramalinga Raju was born onSeptember16,1954. A traditional agricultural family of the KSHATRIYA (RAJU)Community of Andhra Pradesh. He founded Satyam Computers and was its Chairman until January 7, 2009 when he resigned from the Satyam board after admitting to corporate fraud. Satyam was until recently perceived to be amongst the top Indian IT vendors. Raju has admitted to overstating the company's cash reserves by USD$ 1.5 billion. Later, a person involved in the investigation of the company said that the company's assets were not inflated, but instead siphoned off by Ramalinga Raju. Raju is currently held in Hyderabad's Chanchalguda jail on criminal charges including fraud, forgery, cheating, embezzlement and insider trading. He was hospitalized in September 2009 following a heart attack.

CARREARHe was first businessman in the field of construction and textiles. Raju founded Satyam in 1987 .He started an satyam computers with 20 employees in 1987Satyam was listed in INDIAN STOCK EXCHANGE in 1991.And listed in NEW YORK STOCK EXCHANGE in 2001. continued………

CARREARHe was first businessman in the field of construction and textiles. Raju founded Satyam in 1987 .He started an satyam computers with 20 employees in 1987Satyam was listed in INDIAN STOCK EXCHANGE in 1991.And listed in NEW YORK STOCK EXCHANGE in 2001. continued………

Satyam was listed in UNESCO(amsterdum) in 2008.There was 52000 employees are working in september 2008

AwardsErnst & Young Entrepreneur of the Year Services Award 1999Dataquest IT Man of the Year Award 2000Asia Business Leader Award 2002Ernst & 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)mployees spread over many countries. Raju showed a strong social orientation and has been furthering the cause of social transformation through Byrraju Foundation and EMRI[1]. As of November 28 2009, Mr Raju has yet to appear in court to face charges.

Satyam ScandalThe Satyam Computer Services scandal was

publicly announced on 7 January 2009, when Chairman Ramalinga Raju confessed that Satyam's accounts had been falsified. In addition to other controversies involving Satyam, on January 7, 2009, Chairman Raju resigned after publicly announcing his involvement in an accounting fraud. Ramalinga Raju is currently in a Hyderabad prison along with his brother and former board member Rama Raju, and the former CFO Vadlamani

REASONSRaju wanted to take over his MAYTAS INFRA

and MAYTAS PROPERTIES.(company of their sons).

He was blamed tht he was using the funds of the investers for the family business.

World bank had banned the satyam to take any services for 8 years (due to illegal profit and lack of essential document).

Satyam in stock exchange

Mahendra Satyam in stock exchange

Before the scandal it’s share price was Rs 300 in oct 2008.Just after this scandal the share price go down to Rs 6.30.Before the scandal Satyam was the 4th ranked among IT companies of India and on 9th jan 2009 it became least valuable IT company in India. Present time it’s share price is 107.89.Mahendra Satyam’s market growth is 7,800caror.According the recent survey Mahendra Satyam’s rank is 7th among the IT companies of India and 97th rank in all over India.

Satyam's balance sheet of 30 September 2008 contained:

inflated figures for cash and bank balances of Rs 5,040 crore (US$ 1.04 billion) (as against Rs 5,361 crore (US$ 1.1 billion) crore reflected in the books) an accrued interest of Rs. 376 crore (US$ 77.46 million) which was non-existent. an understated liability of Rs. 1,230 crore (US$ 253.38 million) on account of funds was arranged by himself. an overstated debtors' position of Rs. 490 crore (US$ 100.94 million) (as against Rs. 2,651 crore (US$ 546.11 million) in the books). Raju claimed in the same letter that neither he nor the managing director had benefited financially from the inflated revenues. He claimed that none of the board members had any knowledge of the situation in which the company was placed.

Balancesheet Of Mahendra Satyam

Effect of scandal in Indian Economy

Events Events leading to fall 2008 December 16- Satyam Computer Services announces

$1.6 billion acquisition of 100% stake in Maytas properties and 51% stake in Maytas Infra, both promoted by Ramalinga Raju and sons.

December 17-Satyam-Maytas deal is scrapped following investor-shareholders rebellion. Raju mulls on the share buyback

December 24-World Bank bars business with Satyam for 8 years starting September 2008.

December 25- Academician and independent director Mangalam Srinivasan exits from Satyam on Christmas owning moral responsibility for not voting against it.

Events leading to the fall…December 28- Satyam Computer defers

crucial board meet from December 28 to January 10.

December 29- Satyam appoints DSP Merrill Lynch to review strategic option and assess implications of possible dilution of Ramalinga Raju`s stake; Non-executive director Krishna Palepu and in dependent director Vinod Dham resign from board.

December 30- Satyam`s board nearly halved as Indian school of Business dean Rammohan Rao also quit.

Events leading to the fall…2009

January 2- Satyam discloses to stock exchange that Raju and his family have pledged all their shares, held in a corporate entity SRSR limited, to institutional lenders.January 3-Ramalinga Raju`s stake in Satyam falls to 5.13% from 8.27% as lenders sell shares.January 6-Ramalingu Raju`s stake falls further to 3.6% from 5.13%.

January 7- Chairman Ramalinga Raju and MD Rama Raju resign.

Conclusion Maytas

Infra Files Criminal Case Against Vedanta Aluminium

CBI Registers FIR Against Raju And Others In Satyam Scam

Satyam Computer Gets CLB's Approval For Stake Sale Plan

Government Set To Take Over Maytas Infra And Maytas Property

CBI To Probe Satyam Accounting Fraud Case

IDBI, BoB And LIC To Bailout Satyam With Rs 600 Crore Loan

Maytas Infra Files Criminal Case Against Vedanta Aluminium

IDBI, BoB And LIC To Bailout Satyam With Rs 600 Crore Loan

Andhra CM Y S Reddy Seeks CBI Probe Into Satyam Fraud

 Satyam Board Appoints Old Timer AS Murty As CEO

Kiran Karnik Appointed As The Chairman Of Satyam Computer

Satyam Board Appoints Old Timer AS Murty As CEO

Supreme Court Permits SEBI To Interrogate Ramalinga Raju And His BrotherSatyam To Get Excellence In Practice AwardMaytas Infra Director C.S. Bansal ResignsHyderabad Court Sent Gopalakrishna Raju To Police CustodySpice Group Interested In Scam-Tainted Satyam ComputerKarnataka Government To Replace Maytas Infra In Two Airport Projects

Hyderabad Court Rejects Bail Plea Of Satyam's Ramalinga Raju And Others

Satyam Names Investment Bankers, To Pay January Salaries On Time

Embattled Satyam Computer To Get New CEO Next Week

The Judicial Custody Of B Ramalinga Raju And Others Extended Till January 31

Fraud-Hit Satyam Computer Seeks Emergency Funding

Maytas Chief Executive P.K. Madhav Resigns From Board

Vedanta Alumina Terminates Maytas Contract In Orissa

Satyam Co-Founder B Ramalinga Raju's Bail Petition Deferred To January 22

Satyam Co-Founder B Ramalinga Raju's Bail Petition Deferred To January 22

Tarun Das, T.N. Manoharan And Suryakant Balakrishnan Also Join Satyam Board

Government Not To Bail Out Satyam Computer

Fraud-Hit Satyam Gets KPMG And Deloitte As New Auditors

 Govt. Plans Rs 2000 Crore

Bailout Package For SatyamTR Prasad Resigns From GMR Infra Boar

d Over Satyam IssueSatyam To Be Probed By Serious Fraud I

nvestigation Office