SATYAM SCAM
PRESENTING BY
ASWATHY E GOPINATHAN
It is about corporate governance and fraudulent
auditing practices allegedly in connivance with
auditors and chartered accountants. The company
misrepresented its accounts both to its board,
stock exchanges, regulators, investors and all other
stakeholders.

 Ramalinga Raju was the former chairman
of Satyam Computer Services from 1987 and
till 7 January 2009.
 Srinivas Talluri
 S. Gopalakrishnan
DEFENDANTS

SATYAM
• INDIA’S 4TH LARGEST COMPANY
• 1999… SATYAM INFOWAY (SIFY) BECOMES THE FIRST INDIAN INTERNET
COMPANY LISTED ON NASDAQ
• IN 2000… WORLD ECONOMIC FORUM IDENTIFIED SATYAM AS ONE OF THE
“100LEADING PIONEERING TECHNOLOGY COMPANIES”.
• IN 2001.. SATYAM IS LISTED ON THE NEWYORK STOCK EXCHANGE. BECOMES
WORLS’S FIRST ISO 9001:2000 CERTIFIED IT COMPANY.
• 2003… PROVIDER OF IT SERVICES TO THE WORLD BANK.
• 2006… REVENUE CROSSES $1 BILLION,SETS UP THE FIRST “GLOBAL INNOVATION
HUB” IN SINGAPORE AND OPERATION IN CHINA.
• WINNER OF THE GOLDEN PEACOCK AWARD FOR EXCELLENCE IN CORPORATE
GOVERNANCE.

SATYAM SCANDAL
• IT ALL STARTED WITH A SIMPLE
CONFESSION LETTER EMAILED TO THE BSE
ON 7TH JAN 2009 BY RAMALINGA RAJU.
• HE CONFESSED THAT, HE AND A CLOSE
CIRCLE OF RELATIVES & EMPLOYEES, HAD
COMMITTED AS RS. 7136 Crs FRAUD .

How… {ANATOMY OF FRAUD}
• Rising fake invoices on fictitious client
• Subheading the company’s willing system to
introduce fake invoices to the revenue
stream.
• Producing fake bank account statement and
FD receipts.
• Raju did it all in a systematic fashion,
quarter after quarter, year after year, for
nearly 9years until it all exploded in its face.

Anatomy of a fraud
1. Maintaining records
· Raju stored records of accounts for the latest
year (2008-09) in a computer server called "My
Home Hub.“
2. Fake invoices and bills
 Details of accounts from 2002 till January 7,
2009 – the day Raju came out with his dramatic,
five-page confession - were stored in two
separate Internet Protocol (IP) addresses.
 Fake invoices and bills were created using
software applications such as 'On time' that was
used for calculating hours put in by an
employee.
 A secret programme was allegedly planted in
the source code of the official invoice
management system creating a user id 'Super
User' with the power to hide or show the
invoices in the system.

3.Why did he need the money
· The cash so raised was used to purchase several thousands of acres of land across
Andhra Pradesh to ride a booming realty market.
· It presented a growing problem as facts had to be doctored to keep showing healthy
profits for Satyam that was growing in size and scale.
· Every attempt made to eliminate the gap failed.
· As Raju put it, "it was like riding a tiger, not knowing how to get off without being
eaten."
· Cashing out by selling Maytas Infrastructure and Maytas Properties to Satyam for an
estimated Rs. 7,800 crore was the last straw. The attempt failed and Raju made the
stunning confessions three weeks later.

INVESTORS COLLECTIVELY LOST
Rs.14000 Crs IN A SINGLE DAY’S
TRADING.
THE SATYAM SHARE FELL FROM
Rs.178 IN THE MORNING BEFORE
THE SCAM SURFESSED TO AS LOWS
OF Rs.41 BY THE END OF THE DAY’S
TRADING.

Special board headed by
Deepak Parekh,Kiran Karmik,
C.Achuthan & T.N.Manoharan,
let the risky job
The Govt was scrambling to save the company &
protect the interest of over 53000 employees.
The team resorted order in just three months
to sold the company to Tech Mahindra
Tech Mahindra takes over Satyam

VERDICT
On APRIL 9,2015:-
Special CBI Court
sentences Raju &
both the auditors to 7
years in jail and Rs.5
Crore fine.