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SCA
M
"SINKING SHIP OR
TIP OF ICEBERG"
Company Profile
Set up 1987 to provide
services in IT sector.
Indias 4th biggest software
company.
Chairman and founder B.
Ramalinga Raju.
On 26th August, 1991 it was
converted into a Public Limited
Company and went for PUBLIC
ISSUE in 1992.
Company Profile
BSE IPO oversubscribed 17 times
when made public.
It is listed in BSE, NSE, NYSE and
Euronext (Amsterdam).
The company employs 53,000 IT
professionals across development
centers in 6 continents.
It serves over 654 global
companies, 185 of which are
Fortune 500 corporations.
ACHIEVEMENTS
Satyam Clients
A total of 650+
Clients
185 of the top
fortune 500
Companies
Other
Independe
nt
Directors
B.Ramalinga
Raju
Promoter &
Chairman
Ram
Mynampati
Whole time
Executive
Director
Dr M.
Srinivasa
n
GTB/Dr.
Reddys
Laboratorie
s
Srinivas
Vadlamani
Chief Financial
Officer
Prof.
Krishna G
Palepu
Mr. Vinod K
Dham
Sasken Communication/
Hellsoft /Montalvo
Systems and Newpath
Prof. M
Rammoha
n Rao
ISB Dean/
Bharat
electronics
Mr. T R
Prasad
Prof. V S
Raju
Former
CabinetSecretary
/GMR Infra/ GVK Taj
LIC
4.34%
L&T
4%
Lazard
Aberdeen
13.16%
Fidelity
ICICI Prudential
Citigroup
JP Morgan
o Announcement to acquire 2
group
firms
owned
by
Chairman Ramalinga Raju's
sons.
o 51% stake in Maytas
Infrastructure and 100 % in
Maytas Properties.
o US $ 1.3 billion - Maytas
Properties and US$ 0.3 billion
- Maytas Infra.
o Total outflow for both the
acquisitions was expected to
Time-Line
16 Dec
2008
17 Dec
2008
26 Jan
2009
Board meeting to be
held on Dec 29 for
proposed buyback of
shares
Time-Line
19
Dec
20
23
Dec Dec
206Jan
2009
Time-Line
26 28 29
Dec Dec Dec
1st independent
director Dr.
Mangalam
Srinivasan
resigns from
Satyam board
Satyam objects
to world bank
statements,
asks to
apologies or
face legal action
26 Jan
2009
Rumors in market
about strategic
takeover by IBM,
Accenture
Time-Line
30 02 03
Dec Jan Jan
Post cancellation
of deal, Maytas
looks for raising
$500 million
through sale of
equities and
properties
IL&FS sells
further 44.27 Lakh
pledged shares
taking the tally to
1.5 crore pledged
shares
Satyam-Upaid
case hearing over
the Maytas deal in
Texas court on
January 8.
26 Jan
2009
Time-Line
05 06
Jan Jan
Promoters
stake in the
company down
to 4.5%
SEBI considers
proposal to make it
mandatory for
promoters and
majority share
holders to disclosed
pledged shares to
stock exchange
26 Jan
2009
Tech Mahindra
(Revenues 3766 Cr.)
offers to merge with
Satyam (Revenues 8473
Cr.)
Time-Line
07
Jan
09:45 A.M.
Satyam Chairman
Ramalinga Raju
wrote letter to the
company board
26 Jan
2009
Time-Line
08
09
Jan Jan
10
Jan
26 Jan
2009
BSE to replace
Satyam Computer
Former CFO
with Sun
Valdamani
Pharmaceutical in
Srinivas
its benchmark
remanded to
index Sensex with
judicial custody
effect from January
CFO Valdamani
12.
Raju brothers arrested by the
Srinivas, who is the
police on charges of criminal
financial custodian
conspiracy, cheating, forgery,
of the company
misappropriation of funds and
resigns
criminal breach of trust.
PwC shot back at Satyam,
saying in a media statement
Market Capitalization of satyam falls to Rs.
that the auditing was based
1,607 Cr from Rs.15,262 Cr. on Dec 16 in 19
on the audit evidence
trading sessions.
provided by Satyam and in
was accordance with
PwC in major
trouble. Stocks
of PwC clients
take a major
beating at the
BSE and NSE
Time-Line
13
14 15 16
Jan Jan Jan Jan
Government
hands satyam
case to SFIO
23 year old
employee of
satyam
commits suicide
in Chennai
26 Jan
2009
Maytas stocks
hit the lower
circuit for 7th
consecutive
trading session
STOCK CHARTING
Creative Account
Practice
UNDERSTATE
D LIABILITY
1230 Cr.
Which was
ARRANGED
BY MR.RAJU
Overstated cash
balances,
Income
receivables
Understated
Liabilities
Fraud Amount
SATYAM Meaning
TRUTH.
Now, Satyam :A Rs. 7000 cr
LIE.
o Pressure
to improve the
company's performance.
o Capture market.
o Achieve billion dollar sales mark.
o It was like riding a
Impact of Scam
Stock Market
Employees
Share - Holders
Indian Economy
Stake - Holders
B. Ramalinga Raju
Founder & Chairman, Satyam
Computers Ltd.
Raju Raju
Yes Baba,
Cheating us
No Baba,
Telling Lies
No Baba,
Open the balance
sheet
HA! HA! HA!
Thank
You !
32
Thank You !