JOURNEY OF SATYAM TO ASATYAM..

MADE BY:

• ANSHUL RAMNANI

• BAROS KHAN

• BINDI SHAH

• FARHEEN ANSARI

• FARAZ PATEL

• PRATIK PANCHAL

WHAT IS

• Mahindra Satyam – formerly known as Satyam Computer Services Limited

• An Indian IT services company based in Hyderabad, India

• Renamed Tech Mahindra effective from 24 June 2013 with merger approval by Andhra Pradesh and Maharashtra high courts

• Offers a comprehensive range of services, including software development, system maintenance, packaged software integration and engineering design services

• It was founded in 1987 by B Ramalinga Raju

• Listed on the Pink Sheets, the National Stock Exchange and Bombay Stock Exchange

•AND HE REVEALED THE

TRUTH OF SATYAM...

• On 7th January, 2009 • From past 7 years the accounting books were falsified

• Profits were inflated caused by gaps in the balance sheet

• Understated Liabilities, Overstated Debts

• Accrued Interests

SOON AFTER THIS DISCLOSURE ..

Jan/08 Jan/090

100

200

300

400

500

600

Satyam Share

Year

Am

ount

(Rs)

Series10

2000

4000

6000

8000

10000

1200011464

1607

Company Worth ( Rs in Crore)

BECAME POPULAR AS

WHY DID THE THINGS GO WRONG ?

• CFO Revealed during investigation:

It all started 6-7 years before this disclosure

Rs 10 Crore profits inflated as Rs 200 Crore

This gap in the balance sheet led to a fraud of Rs 7,800 Crore

The Masterminds

V Srinivas

B Rama RajuRamalinga Raju

S GopalaKrishnan

Talluri Srinivas

Meeting the

Expectations

• Growing Competition

• Threat of being Overtaken

Overconfide-nce

• On his ability

Personal Benefits

• Salary of non-existing 13,000 employees

Reasons for doing this

Manage

ment

Audit Section

Management of unreal and fictious fixed

deposits

The Strategy:

AND ONE LAST ATTEMPT TO SAVE

ACQUISIT

ON

Maytas infra & Properties owned by

the sons of Raju

Major Shareholders were not in favour of

this

Hence, Acquisiton terminated by calling it “Poor

Corporate Governance”

They Planned to buy Maytas to fill the

gaps in the balance sheet

Therefore finally Raju Confessed about the

fraud

RAJU’S CONFESSION LETTER

• He took the sole responsibility for all the above mentioned fraud acts

• “It was like riding a tiger, not knowing how to get off without being eaten,” he said

• “The aborted Maytas acquisition was the last attempt to fill the fictitious assets with real ones”

Apart from the 5 masterminds Rajus

another brother, Vice

President(Finance) & other employees of finance department

were caught

WHAT WAS THE END?Tech Mahindra

acquired Satyam on April 13, 2009

New CEO : A S Murthy

New Board appointed by the

Government

Chargesheet filed against all the

nine on April 7, 2009

THANK YOU