satyam scam

BECG PRESENTATION

BRIEF HISTORY ABOUT SATYAM

» Satyam Computers was founded in 1987.

» It converted into Public Ltd Co. in 1992.

» The company offers consulting and information technology services spanning various sectors.

» Satyam's network covers 66 countries and 53000 employees across six continents. It is listed in BSE, NSE, NYSE

» Now Mahindra Satyam is overall ranked #153 by Fortune India 500 in 2011.

» He started an satyam computers with 20 employees in 1987.

» Satyam was listed in INDIAN STOCK EXCHANGE in 1991.

» There were 52000 employees working in Satyam in September 2008

RAMALINGA RAJU» Born on September 16 1954 in family of farmers» He completed his B.com from Andhra» He earned his MBA from Ohio university ,USA» After returning to India in 1977 he started a

spinning and weaving mill named Sri Satyam» He shifted to real estate business named Satyam

constructions» In 1987 Raju founded Satyam computer service

with one of his brother in law DVS Raju

SATYAM SCAM» Scam occurred in the year 2009

» The founder was Mr .Ramalinga

» Due to this investors lost 14,162 crores

ETHICAL ISSUES » Failed to show good relation with the

shareholders employeesmanagement bankers government

» EMPLOYEES*Virtual pool of employees*Retrenchment without compensation*non fulfillment of obligation of the company

» MANAGEMENT * Loss of credibility of management

» SHAREHOLDERS *No transparency regarding major happening in organization

Eg: Acquisition of Maytas*Misleading their funds*False inflated financial records* Putting self interest at expense of shareholders interest

» GOVERNMENT*Non payment of taxes of the previous year’*No Advance payment of taxes

» BANKS*Blacklisted by world bank *Declared ill legible for : 1. failing in documentation

of records

2. improper benefits to staff

RECOMMENDATIONS

» GOVERNMENT – SET UP BOARD OF AUDIT – 3 YEARS

» CROSS DIRECTORSHIP SHOULD BE BANNED

» INCENTIVES FOR WHISTLE BLOWERS

» LAW SHOULD BE MORE STRINGENT

» TIGHTER NORMS FOR CHARTERED ACCOUNTANTS

RECOMMENDATIONS

» EFFECTIVE WHISTLE BLOWING POLICY

» ETHICAL VALUES SHOULD BE GIVEN PRIORITY

THANK YOU