Satyam scam

SATYAM SCAM

PRESENTED BY:ASHISH BUCHHANIKUNJ CHANDAKRIDDHIMA CHANDAKKAMAKSHI RAWAT

Achievements Listed in Top 13 best managed companies in

India First IT company in the world certified

under ISO9001:2000 United kingdom trade & Investment India

business award Golden peacock award for excellence in

Corporate Governance

Satyam clients

How it all begins?

A botched acquisition attempt involving MAYTAS in Dec 2008 led to a plunge in share price of SATYAM

In January 2009, Raju indicated that Satyam’s accounts has been falsified over a number of years

He admitted to an accounting fraud to the tune of 7000 Cr. rupees and resigned from Satyam board on 7 January 2009

What crime he had committed?

Misleaded various investors Dummy accounts used to trade in Satyam’s

shares Funds of Satyam diverted to Maytas Withdrawing 20 Cr. Per month for paying

13000 non existing employees

Reasons For Satyam Scam Raju wanted to takeover his MAYTAS INFRA &

MAYTAS PROPERTIES(company of his sons) He was blamed that he was using the funds of

investors for the family business

Consequences Huge decline in share price of company Company law bared the board from

functioning New York Stock Exchange has halted trading

in Satyam stock India’s NSE decided to remove Satyam from

Share index Satyam ranked 4th in IT companies. Now it is

least valuable IT company in India

Regulators Investing Satyam

Steps taken after Satyam Fraud

Introduction of new rules by the SEBI, making it compulsory for promoters of companies to disclose percentage of shares pledged by them to lenders.

Appointment of independent auditors & CS by company law board to conduct audit of any private organization.

Satyam Acquired by Tech MahindraAnand Mahindra, chairman of Tech Mahindra take over Satyam for Rs 2890 crore, giving hope and future to Satyam’s Employees

Thank you