PRESENTATION ON INDIAS ENRON SATYAM SCAM

Presented by:Nitin Gupta MBA, Sem-II

CONTENTS
MANAGEMENT INTRODUCTION HOW ITS HAPPENED WHAT WENT WRONG? IMPACT ON INDIAN IT INDUSTRY INDIAS STEP TO SAVE SATYAM WHO WILL ACQUIRE?

MANAGEMENT

FOUNDER CEO

: :

Mr. Raju Ramalinga Mr. A. S. Murthy

INTRODUCTION
Satyam was established in 1987. 4th fastest growing IT company in India. 9 % market share 40,000 employees Revenue $2.1 billion It is the first company of India listed in three International Exchanges i.e. NYSE, DOW and EURONEXT

HOW ITS HAPPENED

Maytas Acquisition. Investors Aborted. Board Members Resigned. On 7th Jan., 09, Chairman resigned after announced involvement in fraud.

WHAT WENT WRONG?

Inflated figures for cash and bank balances of INR 5,040 cr. (as against INR 5,361 crore reflected in the books). Operating Profit were artificially boosted from the actual 61 cr. to 649 cr. Satyam also showed an interest earning of Rs. 376 cr. that was fictitious.

Satyam development center

IMPACT ON INDIAN IT INDUSTRY

It is surely going to be more difficult for other Indian IT service players to win business. Undoubtedly, this is going to hurt the prospects of foreign money flowing into India. Global perception about indian companies. Indian stock market slipped over 7% on 7th Jan., 09.

INDIAS STEP TO SAVE SATYAM

The Indian Government has stated that it may provide temporary direct or indirect liquidity support to the company Govt. has appointed new board of members for Satyam consisting of heavy weights from India's corporate sector. Satyam is seeking bank loans to help cover salaries and other operating expenses

WHO WILL ACQUIRE?