Satyam

SHAME &
SCANDAL
FINANCIAL
SHENANIGANS
 SHAREHOLDE CURRENT
RS EQUITY ASSESTS
Capital +profit

BALANCE
SHEET
FIXED
CURRENT
ASSETS
LIABILITY
 FIXED CURRENT
LIABILITY ASSESTS
Capital +profit
•CASH BALANCE

•SUNDRY
DEBTORS
BALANCE • ACURRED
SHEET CURRENT
INTEREST

LIABILITY

UNDERSTATE
D LIABILITY FIXED ASSETS

EMPLOYEES
5300 but only
5000
employees
were there
 WHAT WENT WRONG….????
 Simple manipulation of revenues and
earnings to show superior performance
 Raising fictitious bills for services that
were never rendered.( which is added to
sundry debtors on the B/S)
 To increase the Cash & bank balance
correspondingly.
 Operating profits were artificially
boosted from the actual Rs 61 crore to Rs
649 crore.
 Rs 490 of this artificially inflated Rs. 588
crore was added to receivables as
conceded by Mr.Raju
 Remaining Rs.98 crore appears to be a
part of the Rs.5040 crore cash hole in the
B/S
 Satyam also showed an interest earnings
of Rs 376 crore that was fictitious
 Mr. Raju says he infused funds of Rs.
1230 crore as dues to him. Thus Satyam
has understated its liability.
 Everything is wrt 2nd quarter only ,but
Mr.Raju said in his statement that he has
been doing this for several years
 CURRENT ASSESTS ACTUAL CASH
IN BANK IS
321
INFLATED
2651.6 5040cr
5312.62
376
ACTUAL DEBT IS 2161
OVERSTATED 490 Cr

NO
LIABILITIES
ACCURRED
INTEREST
376 Cr

UNDERSTATE
REVENUE 2700 D LIABILITY
OPERATING 690 1230 Cr which
MARGIN
is arranged by
ARTIFICIALLY ADDED 588 Mr.Raju
OPERATING PROFIT
ADDED 588
INCREASING THE CASH 5040+376+1230+
RESERVE ONLY FOR Q2 490= 7136
ALONE TO 588
 ACTUAL OPERATING MARGIN
61 Cr ( CREATED AN ARTIFICIAL
REVENUE OF 588)

Operating Profit

800
Operatin Profit ( IN

648.61 649.27
600
CRORES)

545.49
468.72
400 401.61

200

0
Sep '07 Dec '07 Mar '08 Jun '08 Sep '08
Series1 401.61 468.72 545.49 648.61 649.27
Quarter

GROWTH IN THE OPERATING PROFIT

 REVENUE

2700 Operating Profit

3000
649
2112 588
2500
700

2000 600

500
1500
400
588
1000 300
61
200
500
100

0
Actual Reported Difference 0
Actual Op Reported Difference
Revenue Q 2

NFLATING THE PROFIT AND REVENU

 Satyam computer Ltd.,
B/s
SOURCES OF FUNDS AS ON ADJUSTED ADJUST
30.09.08 BALANCE MENTS
SHEET
1. Shareholders
funds
a. Share capital 134.70 134.70
(share application
money , pending)
2.76 2.76
b. Allotment

c. Reserves and 8392.23 (415.47)

surplus ________ _________ _______
________________ __ 278.01 _
___ 8529.69 0
SOURCES OF FUNDS AS ON ADJUSTED ADJUST
30.09.08 BALANCE SHEET MENTS

2. Loan Funds

a. secured loans 30.49 30.49

B. unsecured loans
234.80 1464.80 1230.00
______ _______ ______
8794.98 1217.28 _
__________________ _______ _______ 1230.00
__ ______
__
APPLICATION OF AS ON ADJUSTED ADJUST
FUNDS 30.09.08 BALANCE SHEET MENTS

1. Fixed assests 1381.10 1381.10 1381.10

2. Investments 618.64 618.64 618.64
3. Tax 118.75 118.75 118.75
4. Current assets
a. sundry debtors 2651.36 490.00 2161.36
b. cash 5312.62 272.62 5040
 Satyam computer Ltd.,
APPLICATION OF
B/s
AS ON ADJUSTED ADJUSTM
FUNDS 30.09.08 BALANCE SHEET ENTS

c. accrued interest 376.34 - 376.34

d. Loans 502.22 502.22 -
LIABITIES 2166.05 2166.05
Net current assests 6676.49 901.21 5775.21
(difference
)
_______ _________ ________
APLLICATION OF 8794.98 1217.28 7577.7
FUNDS