3. 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
4. SATYAM
COMPUTERS
WHAT IT IS
ABOUT ?
FOURTH LARGEST IT OUTSOURCING
COMPANY OF INDIA
EMPLOYEES MORE THAN 50,000 PEOPLE IN
INDIA
HIGH GLOBAL REPUTATION
OFFERS SERVICES TO MORE THAN 550
MNC’S
5. So who has to be blame?
Former chairman B.RAMALINGA RAJU
IS THE PRIME CONVICT IN THE CASE
WITH SEVERAL OTHER BOARD
MEMBER’S
7. HOW IT HAPPENED
AN ANNOUNCEMENT THAT
SHOCKEDTHE CORPORATE INDIA THAT
B.RAMALINGA RESIGNED .
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.
8. 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.
9. HOW DID 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
10. How it was
caught?
Satyam Computers had
on December 16, 2008,
announced
that it will acquire two
group firms – Maytas
properties and Maytas
Infra for $1.6 billion
(about Rs 8,000 crore) as
part of its diversification
strategy , this create a
alleged violation of
corporate governance
laws.
11. 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.
12. IMPACT ON STOCK MARKET
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.
The company’s share price has fallen 21.3
per cent since December 15, the day
before the crisis broke.
13. SALVAGING SATYAM
To stabilize the sinking Satyam
Computers, the Government
nominated banker Deepak
KIRAN KARNIK
Parekh, IT expert Kiran Karnik FORMER PRESIDENT OF
and former SEBI member C NASSCOM
Achutan to the IT company's
board.
.
14. ALL WELL THAT’S END
WELL
Anand Mahindra, Chairman, Tech Mahindra, the
new owner of Satyam, will 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.