80663633 satyam case ppt

7/27/2019 80663633 Satyam Case Ppt

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7/27/2019 80663633 Satyam Case Ppt


7/27/2019 80663633 Satyam Case Ppt


SATYAM SCAM

The Satyam computer services scam waspublicly announced on January 7 , 2009

Chairman Ramlinga Raju confessed that the

accounts were falsified . Satyam scam involves amount close to 10,000

crore

According to the statement of Mr. Raju , the

balance sheet shortfall is more than 7000 crore. Due to the overstating in the balance sheet , the

inflated prices of the stock helped themanagement in earning money.

7/27/2019 80663633 Satyam Case Ppt


7/27/2019 80663633 Satyam Case Ppt


Prime accused in the multi-crore accountingfraud in Satyam Computers were formerCompany chairman Ramalinga Raju and 6others which included the M.D. B. Rama Raju,

Ex-Satyam CFO Srinivas, former employees-Venkatapati Raju, Srisaila and auditor of SatyamSubramani Gopalakrishnan.

They are accused of criminal conspiracy, criminalbreach of trust, cheating, forgery andfalsification of accounts.

7/27/2019 80663633 Satyam Case Ppt


7/27/2019 80663633 Satyam Case Ppt


SCAM DETAILS

The scam opened during the process of MaytasAcquisition.

However the investors aborted the process.

At this point the Board Members Resigned.

On 7th Jan., 09, Chairman resigned after

announced involvement in fraud.

7/27/2019 80663633 Satyam Case Ppt


7/27/2019 80663633 Satyam Case Ppt


Auditors responsible in the

Satyam scam

The audit firm PW (Price Waterhouse) hasnamed the following accounting professionalsresponsible for satyam scam :

1. P Shiva Prasad2. C .H Ravindranath

3. S Gopalakrishnan

4. Srinivas taluri

These auditors are held answerable for the 7000crore corporate fraud .

7/27/2019 80663633 Satyam Case Ppt


CORPORATE GOVERNANCE CORPORATE GOVERNANCE

Corporate Governance is typically perceived as dealing with problems thatresult from the separation of leadership & control.

DEFINITION:-

Corporate Governance may be defined as holding a balance betweeneconomic & social goals & between individual & commercial goals. A goodcorporate governance is one where a firm commits & adopts ethicalpractices across its entire value chain & in all of its dealing with a wide groupof stakeholders encompassing employee, customer, venders, regulators &shareholders in both good and bad times.

Share Holder

Board

Management

Employee

7/27/2019 80663633 Satyam Case Ppt


7/27/2019 80663633 Satyam Case Ppt


IMPACT

It is surely going to be more difficult for otherIndian IT service players to win business.

Undoubtedly, this is going to hurt the

prospects of foreign money flowing intoIndia.

Global perception about indian companies.

Indian stock market slipped over 7% on 7th

Jan., 09.

7/27/2019 80663633 Satyam Case Ppt


7/27/2019 80663633 Satyam Case Ppt


STEPS TO SAVE THE COMPANY

The Indian Government has stated that itmay provide temporary direct or indirectliquidity support to the company

Govt. has appointed new board of membersfor Satyam consisting of heavy weights fromIndia's corporate sector.

Satyam is seeking bank loans to help coversalaries and other operating expenses

7/27/2019 80663633 Satyam Case Ppt


7/27/2019 80663633 Satyam Case Ppt


Recent progress

Satyam computer services which has beenacquired by Tech Mahindra , has filed a suitagainst the B.O.D ,certain employees and PW.

The suit is filed seeking damages for fraud ,negligence in performance of duties.

80663633 satyam case ppt

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