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Satyam Fiasco5A1AM SeL up ln Lhe vear 1987 Lo provlde servlces ln l1 secLor lndla's 4LhblaaesL sofLware companv ln lndla lL ls llsLed ln 8SL nSL n?SL and LuronexL (AmsLerdam) 8SL lC oversubscrlbed 17 Llmes when made publlc ln 1991 1he companv emplovs 33000 l1 professlonals across developmenL cenLers ln 6 conLlnenLs lrsL l1 Companv ln Lhe World CerLlfled under lSC90012000 8anked Amona lndla's 1op 10 8esL Lmplovers 2004 and 2003 1op 13 8esLManaaed Companles ln lndla Wlnner CorporaLe ClLlzen l award for CorporaLe Soclal 8esponslblllLv SA lnnacle Award 2008 SaLvam Wlns aolden peacock award for excellence ln CorporaLe Covernance on Clobal level for 2ndLlme unlLed klnadom 1rade and lnvesLmenL lndla 8uslness Award for CorporaLe Soclal 8esponslblllLv Chalrman and founder SaLvam CompuLers Servlces LlmlLed M8A from Chlo unlverslLv l1 man of Lhe vear award bv uaLa CuesL ln 2002 Wlnner of LrnsL ?ouna enLrepreneur of Lhe vear award ln 2007 Pe became Lhe Manaalna ulrecLor and Chlef LxecuLlve Cfflcer ln 1991 Mr 8ama 8a[u holds a MasLer of Lconomlcs dearee from Lovola Colleae Chennal and a M8A dearee from Loredo SLaLe unlverslLv 1exas 8efore 1997 he was wlLh MavLas lnfra LlmlLed as one of lLs ulrecLors B. Ramalinga RajuFounder & Chairman, Satyam Computers Ltd.B. Rama RajuPromoter & CEO, Satyam Computers Ltd.SaLvam CllenLsA LoLal of 630 CllenLs (183 of Lhe Lop forLune 300 Companles)SaLvam 8oard SLrucLureCLher lndependenL ulrecLorsur M Srlnlvasan rof krlshna C alepuMr vlnod k uhamrof M 8ammohan 8aoMr 1 8 rasadrof v S 8a[ulS8 uean/8haraL elecLronlcsSasken CommunlcaLlon/PellsofL /MonLalvo SvsLems and newpaLhormer CablneLSecreLarv /CM8 lnfra/ Cvk 1a[ur 8eddv's LaboraLorles88amallnaa 8a[uromoLer Chalrman88ama 8a[uromoLer CLC8am MvnampaLlWhole Llme LxecuLlve ulrecLorSrlnlvas vadlamanl Chlef lnanclal CfflcerSaLvam Share holdlna aLLernlnsLlLuLlonal nonlnsLlLuLlonal ShareholdersLlC 434L1 4LazardAberdeen 1316ldellLvlClCl rudenLlalClLlaroup! Moraan1oLal MarkeL caplLallzaLlon of 8s 13262 Cr (As on uec 16 2008 )MavLas lnfrasLrucLure 1he 8a[u's hold 3664 per cenL whlle lnsLlLuLlonal holdlna ls 1092 per cenL 1he companv had ralsed 8s 32743 crore Lhrouah lC lL had a Lurnover of 8s 1660 crore and neL proflL of 8s 100 crore ln Lhe lasL flnanclal vear SaLvam planned Lo acqulre 31 per cenL sLake for 8s 1440 crore or $03 bllllonMr 1e[a 8a[u(vC)MavLas roperLles 8a[u's famllv owns 33 of MavLas properLles ounded ln 2003 lL has a land bank of 6800 acres lL has clearances for Lhree l1 SLZs based on 148 acres An undlsclosed sLake ls held bv lnflnlLe lndla lnvesLmenL ManaaemenL a realLv fund [olnLlv promoLed bv !M lnanclal and uSbased S8M lnvesLmenLs whlch lnvesLed 8s 600 crore ln ebruarv8 8ama 8a[u !r (vC)So Pow dld lL all beaan? April

Sep

Jan

SaLvam revenues cross $1 8llllon

SaLvam becomes flrsL lndlan companv Lo publlsh l8S audlLed flnanclalsSaLvam recelves Lhe Colden eacock Award for excellence ln CorporaLe Covernance from World councll Dec

Satyam backs out of Maytas deal citing investors protest Dec

Jan

Major Clients of Satyam express dissatisfaction.Contracts worth $ million up for grabsSatyam gets board approval for controlling stake in Maytas nfrastructure and Maytas properties as fully owned subsidiary for $.B (Rs. Cr.)Satyam shares plunge 55 percent in NYSE. BSE share plunges over 3 Board meeting to be held on Dec for proposed buyback of shares Dec 3 Dec Jan

8rlLlsh moblle soluLlon provlder upald flles a law sulL aaalnsL SaLvam ln a dlsLrlcL CourL ln Lhe uS over MavLas deal ln 1exas Mav face $1 8llllon ln penalLles Dec Centre refers Satyam deal to Registrar of Companies (RoC)World 8ank bans SaLvam for 8 vears due Lo lnapproprlaLe pavmenLs Lo sLaff and lnablllLv Lo provlde lnformaLlon souahL on lnvolces Dec Dec Jan

Board announces exploring option for buyback of shares to restore investor confidence

stindependent director Dr. Mangalam Srinivasan resigns from Satyam boardBoard meet initially scheduled for thpostponed to thJanuary Dec 3 more ndependent Directors resigned. Mendu Rammohan Rao, Krishna G Palepu and Vinod K DhamSatyam asks DSP to review board structureRumors in market about strategic takeover by BM, Accenture L&FS sells 44. lakh pledged shares of Satyam promoters in day. Promoters equity reduced from . to aprrox Satyam objects to world bank statements, asks to apologies or face legal actionromoLers dlsclose LhaL Lhelr enLlre holdlna ln SaLvam pledaed wlLh lnsLlLuLlonal lenders slnce 20063 Dec Jan Jan

Post cancellation of deal, Maytas looks for raising $5 million through sale of equities and propertiesL&FS sells further 44. Lakh pledged shares taking the tally to .5 crore pledged shares3 Jan Satyam board confirms promoters stake to be around 5. Further 3. still pledged.SaLvamupald case hearlna over Lhe MavLas deal ln 1exas courL on !anuarv 85 Jan Jan Jan

SEB considers proposal to make it mandatory for promoters and majority share holders to disclosed pledged shares to stock exchangeTotal pledged shares sold by L&FS reaches .5 Cr. in last 3 days. Promoters stake down to 3.. Still a further . are pledgedromoLers sLake ln Lhe companv downs Lo 43Tech Mahindra (Revenues 3 Cr.) offers to merge with Satyam (Revenues 43 Cr.)The Night Before thJanMerill Lynch discovers serious irregularities in books of accounts and approaches regulator SEB for further course of action and its inability to investigate further. DSP submits report to SEB and Satyam management late night. Jan Jan

0943 AM SaLvam Chalrman 8amallnaa 8a[u wrlLes Lhe followlna leLLer Lo Lhe companv board/4-0.74-,94.:2039SaLvam 8SL scrlp falls 78uS snaps Lles wlLh saLvam AudlLlna flrm WC under scannerCovL lnsLrucLs 8oC Lo revlew reporL8am MvnampaLl Lakes over as lnLerlm CLC accordlna Lo 8a[u's leLLerPunL for 8a[u broLhers bealn Amld speculaLlon over hls whereabouLs 8a[u ls belleved Lo have lefL for Lhe unlLed SLaLes ln connecLlon wlLh a courL case SaLvam sLrlpped of Colden eacock awardnSL removes SaLvam from lLs benchmark lndex nlfLv lL was replaced bv 8ellance CaplLal wlLh effecL from !anuarv 12 lL was also be removed from varlous oLher lndlces llke Cnx 100 S Cnx 300Cnx l1 and Lhe Cnx Servlces secLor lndex Jan

Jan Jan

8a[u broLhers arresLed bv Lhe pollce on charaes of crlmlnal consplracv cheaLlna foraerv mlsapproprlaLlon of funds and crlmlnal breach of LrusL wC ln ma[or Lrouble SLocks of wC cllenLs Lake a ma[or beaLlna aL Lhe 8SL and nSL8SL Lo replace SaLvam CompuLer wlLh Sun harmaceuLlcal ln lLs benchmark lndex Sensex wlLh effecL from !anuarv 12 wC shoL back aL SaLvam savlna ln a medla sLaLemenL LhaL Lhe audlLlna was based on Lhe audlL evldence provlded bv SaLvam and ln was accordance wlLh appllcable sLandards

Jan CC valdamanl Srlnlvas who ls Lhe flnanclal cusLodlan of Lhe companv reslansMarket Capitalization of satyam falls to Rs. , Cr from Rs.5, Cr. on Dec in trading sessions.ormer CC valdamanl Srlnlvas remanded Lo [udlclal cusLodv3 Jan 4Jan Jan

1he newlv appolnLed 3 member board appolnLs audlLlna flrm kMC and uellolLLe Lo asslsL lL ln cleanlna Lhe mess ln Lhe scam LalnLed companv's accounLsCovernmenL hands saLvam case Lo SlC5Jan Maytas stocks hit the lower circuit for thconsecutive trading session23 vear old emplovee of saLvam commlLs sulclde ln Chennal

Jan 1he aovernmenL expanded Lhe Lhreemember SaLvam board Lo slx Lo lnclude S 8alakrlshnan of Llfe lnsurance CorporaLlon 1arun uas chlef menLor of Lhe ConfederaLlon of lndlan lndusLrv and 1 n Manoharan former presldenL of Lhe lnsLlLuLe of CharLered AccounLanLs of lndlaSaLvam uecade aL a ClanceWhv on 7 Whv on 7Lh Lh!an 2009? !an 2009? 5 Merr||| Lynch |nformed 5L8I aboutMater|a| |rregu|ar|t|es |n Accounts on 6thIan M|nutes of Meet|ng of 16thecember2008 were not subm|tted to koC(1h|s created some doubts) near|ng of Upa|d satyam case on 8thIan at the U5 court 8a[u ban aava conmanPow? ropos|ng n|gh r|sk Maytas acqu|s|t|on Cverva|u|ng the proposed acqu|s|t|on romoter p|edg|ng the|r ho|d|ngs (decrease |n ho|d|ng) kefus|ng to res|gn Iudg|ng Income statement MavLas AcqulslLlon Ia|uat|on of Maytas duo was done at $16 bnas aga|nst actua| $ 225 mn I|o|at|on of 5ect|on 372A of the Compan|es act 8s12818 Cr ks7920 ct lobricoted lncome 5totements#Creat|ve Account ract|ce' ueLalls of cash balances wlLh Scheduled banks are noL Lhere ln LheAnnual reporL CuesLlon ralsed bv LqulLv analvsL kawal[eeL Salu[a $300 mn cashparked ln currenL accounL3040 + 376 + 470 (8s Cr) ks 1230 Crks 7136 CrCversLaLed cash balances lncome recelvablesundersLaLed LlablllLlesraud AmounLJ ooJ now now ????lnvestment in keo/ estote{Lond 8onks) 1o keep P5 hioh5o/d his stoke ot inf/oted price(Made 8s2063 cr from shares) SLake decreased from 216 Lo 36 Monev ralsed Lhrouah 4 ronL run Co bv offloadlna pledaed shares (under lnvesLlaaLlon) 0 30 100 130 2008anaar AaroAmravaLl Creenlandsnaravandrl CreenfleldsParanal Aaro Amount (In ks Cr)AmounL (ln 8s Cr)Share ledalnaake u recelpLs and Lmplovee nos??1ake u recelpL1ake u recelpL1ell Lo 8anks u recelpL ls LosL1ell Lo 8anks u recelpL ls LosLAsk for uupllcaLe 8ecelpLsAsk for uupllcaLe 8ecelpLsUse the up||cate to W|thdraw moneyUse the up||cate to W|thdraw moneyark Lhe Monev ln oLher 8ank ark Lhe Monev ln oLher 8ank AL Lhe end show Lhe orlalnal u recelpLs AL Lhe end show Lhe orlalnal u recelpLs 1he monev has alreadv vanlshed 8epeaL Lhe procedureSaLvamMavLas nexus ConLd Cash ralsed slphoned off funds used Lo buv several Lhousands of acres of land across A Lhrouah several benaml accounLs Pelped MavLas ln aeLLlna ma[or conLracLs CuesLlon ralsed bv LShreedharan reaardlna Pvderabad MeLro ro[ecL belna allocaLed Lo MavLas lnfra Some CommenLs lf Lhe flrsL fraud ls for 8s100 Lhe nexL Llme add anoLher zerolL (accounL