Satyam Computers Scam Ppt

5/22/2018 Satyam Computers Scam Ppt

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Management of Satyam

>Satyam Computers was founded by Mr.

Ramalinga Raju

>It had 40,000 employees

>Its CEO was Mr. A.S. Murthy


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Introduction Of Satyam Computers

>Satyam was established in 1987.

>It was the 4thfastest growing IT company in

India.

>It had 9 % market share

>Revenue was around 10,000 Crores


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What did really happen in Satyam

> Ramalinga Raju started losing his attention

from the company

>The two sons of Raju were investing in the real

estate business and their real estate business

was not in good shape. So, Raju started using

the manpower and other resources for the

Satyam Company for the welfare of his sons

real estate business


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What happened?

That the actual number of employees was only

40,000 and not 53,000 as reported earlier and

that Mr. Raju had been allegedly withdrawing

INR 20 crore rupees every month for payingthese 13,000 non-existent employees [16].


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What happened?

>Ramalinga Raju had showed false employees in

his company Satyam computers

>And Ramalinga Raju was withdrawing salaries

of those false employees which really did not

exist in the company that were 53,000 as

shown in accounts but really were only 40,000

eployees


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Continued

>The scam came into light in January 2009

>The founder of Satyam was arrested two days after headmitted to falsifying the firms accounts.

>Ramalinga Raju was charged with several offences,including criminal conspiracy, breach of trust, andforgery.

>Satyamsshares fell to 11.50 rupees on 10 January 2009,their lowest level since March 1998, compared to ahigh of 544 rupees in 2008[13]. In New York StockExchange Satyam shares peaked in 2008 at US$ 29.10;by March 2009 they were trading around US $1.80.


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Later after the scam

New CEO and special advisors

On 5 February 2009, the six-member board

appointed by the Government of India named

A. S. Murthy as the new CEO of the firm with

immediate effect

Murthy, an electrical engineer, has been with

Satyam since January 1994


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Acquisition by Mahindra Group

>On 13th April 2009, via a formal public auction

process, a 46% stake in Satyam was purchased

by Mahindra & Mahindra owned company

Tech Mahindra


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Satyam Computers Scam Ppt