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Company Profile
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. Mahindra Satyam is overall ranked #153 by Fortune India 500 in 2011. Satyams network covers 66 countries and 53000 employees across six continents. It is listed in BSE, NSE, NYSE
AWARDS ACHIEVED
Top-50 Marketers Award, under the Resurgent Marketers category for 2010 by Pitch India. Mahindra Satyam BPO honored as Indias Most Customer-Responsive BPO CompanyAGC Networks, The Economic Times, Ernst & Young and Nielsen. Ranked # 1 in the ASTD BEST Award American Society for Training and Development (ASTD).
-Profits were inflated -Understated liability and overstated debts. -Accrued interest. -The gap in the balance had risen due to inflated profits.
Stock Charting
CONFESSION LETTER
Raju wrote in the confession letter Every attempt to fill the gap failed".
It was like riding a tiger, not knowing how to get off without being eaten.
CONFESSION LETTER
Maytas Acquisition
Last attempt to fill the gap.
No personal profits.
Did not sell any shares from 8 years.
Satyam shares
Biggest single day fall for a stock in stock market 77% 175 Rs/-(Jan 6th)
Stock Market
BSE sensex fell by 749.05 i.e. 7.25% . NSE fell by 192.40 points i.e. 6.18%.
Companies worth
11464 Crore
1607 Crore
All time low of Rs 11.50 on 9th jan and closed at 23.75 Rs/-. Compared to highest of 524.90 Rs/- on may 29,2008
Ramalinga Raju
B. RamaRaj u
V. Srinivas
S. Gopalkrishnan
T Srinivas
THE ILLUSIONISTS
Ramalinga Raju: B Rama Raju: Satyam Former Chairman Brother of Ramalinga Raju Former Managing director .
V Srinivas:
S Gopalakrishnan:
Talluri Srinivas:
PriceWaterhouse Auditor
CURRENT STATUS
GOVT CONCERNED ABOUT SATYAM EMPLOYEES. GOVT TO HELP CBI IN SATYAM SCAM CASE. RAMALINGA RAJU SENT TO POLICE CUSTODY TILL
22 ND JANUARY.
Ramalingam Raju along with 2 other accused of the scandal, had been granted bail from Supreme court on 4 November 2011 as the investigation agency CBI failed to file the chargesheet even after more than 33 months of Raju been arrested
PROBABLE
REASONS
THE GOVERNMENT
THE GOVERNMENT TOO IS EQUALLY GUILTY IN NOT HAVING MANAGED TO SAVE THE SHAREHOLDERS, THE EMPLOYEES AND SOME CLIENTS OF THE COMPANY FROM LOSING HEAVILY.
VISION STATEMENT
ACTIONS TAKEN
New board of directors were appointed. Disclosure of pledged securities. Increased financial accounting disclosure. Adoption of international standards. Creation of new corporate code of conduct by Ministry of Corporate Affairs. Steps taken by ICAI.
CONCLUSION
More scandals like Satyam can be avoided if1.If auditing firm is honest. 2.SEBI plays an active role. 3. Periodic review of legal compliance reports by independent directors.