Sathyam Fiasco by Business Brigades SMS BIT

8/14/2019 Sathyam Fiasco by Business Brigades SMS BIT

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BANNARI AMMAN INSTITUTE OFTECHNOLOGY

Presents


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SATYAM FIASCO A FINANCIAL


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FORMATION OF SATYAM

It was founded in June 1977 as a privatelimited company by Ramalinga Raju alongwith one of his brothers-in-law, DVS Raju .

It was established on 24 June 1987.

In 1991 it was recognized as a public limited


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SUBSIDIARIES OF

Satyam Renaissance

Satyam Info way

Satyam Spark Solutions

Satyam Enterprise Solutions

Citisoft Satyam BPO


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ITS NETWORK

Satyam has nearly 53,000 employees workingin development centres in

India USA UK UAE Canada

Hungary Singapore Malaysia ChinaJapan Australia

Satyam Computers' network is spread over 55countries across 6 continents.

Satyam serves over 558 global companiesincluding over 163 Fortune 500 corporations.


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Share Holding Pattern


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SHAREHOLDERS EQUITYCapital +profit

FIXED ASSETS

CURRENTASSESTS

CURRENTLIABILITY

BALANCESHEET

What happened at satyam


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FIXEDLIABILITYCapital +profit

FIXED ASSETS

EMPLOYEES

53000 but only50000employees werethere

CURRENTASSESTS

CASH BALANCE

SUNDRYDEBTORS

ACURREDINTEREST

CURRENT

LIABILITY

UNDERSTATEDLIABILITY

BALANCESHEET


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ACTUAL CASHIN BANK IS

321INFLATED

5040cr

ACTUAL DEBT IS 2161

OVERSTATED 490 Cr

CURRENT ASSESTS

376

NO

ACCURREDINTEREST

376 Cr

UNDERSTATEDLIABILITY 1230

Cr which isarranged by

Mr.Raju

5040+376+1230+ 490=

7136

LIABILITIES

ARTIFICIALLY ADDED 588OPERATING PROFIT

ADDED 588INCREASING THE CASH

RESERVE ONLY FOR Q2ALONE TO 588


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ACTUAL OPERATING MARGIN61 Cr ( CREATED AN ARTIFICIAL

REVENUE OF 588)

GROWTH IN THE OPERATING

PROFIT


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INFLATING THE PROFIT ANDREVENUE


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IMMEDIATE FALL ON SATYAMHARE VAL E

Satyam ADR (American Depository Receipt) decline to USD5.7 reporting fall of 55 per cent.


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Lessons from the Satyam-Maytas deal

Warren Buffet: "It takes 20 years to build a reputation

and five minutes to ruin it. If you think about that,you'll do things differently.

Shareholders are more activist than ever

Investors tend to reward focus and punishunrelated diversification

Transparency is critical

Professionals need to stand up and be

counted Reputations take a long time to be re-built


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After charges of data theft byWORLD BANK


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Who are People???

Employees

Clients

Investors

Recruited freshers


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What would be the fate ofthe employees infuture???

53,000Employees????


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Bank gives shock to Satyam employ

Banks cutting credit card limits forSatyam staff(ICICI Bank and HDFCBank, HSBC and Citibank)

Pink slips haunt IT professionals Has recently handed over pink

slips to 450employees

Least 15,000 (28%) employeesfrom Satyam are looking forchange.
http://www.bharatwaves.com/portal/modules/stories/Bank-gives-shock-to-Satyam-employees-19540.htmlhttp://www.bharatwaves.com/portal/modules/stories/Pink-slips-haunt-IT-professionals-16618.htmlhttp://www.bharatwaves.com/news/Pink-slips-haunt-IT-professionals-16618.htmlhttp://www.bharatwaves.com/news/Pink-slips-haunt-IT-professionals-16618.htmlhttp://www.bharatwaves.com/portal/modules/stories/Pink-slips-haunt-IT-professionals-16618.htmlhttp://www.bharatwaves.com/portal/modules/stories/Bank-gives-shock-to-Satyam-employees-19540.html


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Shocked Satyam employees begin

job hunting They fear that whether they will

get value and respect if they

approach other companies for jobs IT Co's had received more than

18,000 CVs from Satyam

employees

Satyam staff may buy shares


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Clients

They delivers consulting, systemintegration and outsourcing solutionsto over 690 clients, including 185

Fortune 500 companies in 66countries

The company's top 100 customers

account for 85% of total revenue Satyam Computer Services Ltd may

lose as much as half its customers.


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Equity Measure for Companies

On a scale of 10, six months ago,Satyam would have a value of6.5/6.6. Now, this would fall toaround 1.2/1.3.

World Bank admits ban on Satyam fordata theft

The World Bank has banned Satyamfrom doing business with it for 8years due to inappropriatepayments to the World Bank's staff


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IT field in India.

Impacts

World Bank bans Wipro,Megasoft, 3 more firms .

Security check mandatory for IT emplo

IT firms they have to check theemployee background and characterand have to take employee picturesand finger prints
http://www.bharatwaves.com/portal/modules/stories/Security-check-mandatory-for-IT-employees-18148.htmlhttp://www.bharatwaves.com/portal/modules/stories/Security-check-mandatory-for-IT-employees-18148.html


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Thank YouBusiness

Documents

Sathyam Fiasco by Business Brigades SMS BIT