36490436 presentatio satyam case

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MANAGEMENT

FOUNDER : Mr. Raju Ramalinga

CEO : Mr. A. S. Murthy



Satyam was established in 1987.

4th fastest growing IT company in India.

9 % market share

40,000 employees

Revenue $2.1 billion It is the first company of India listed in three International Exchanges i.e. NYSE,

DOW and EURONEXT

INTRODUCTION



HOW IT·S HAPPENED

Maytas Acquisition.

Investors Aborted.

Board MembersResigned.

On 7th Jan., 09,

Chairman resignedafter announced

involvement in fraud.



INDIA·S STEP TO

SAVE SATYAM

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

Govt. has appointed new board of members for Satyam consisting of heavy

weights from India's corporate sector. Satyam is seeking bank loans to help cover salaries and other operating expenses



WHO WILL

ACQUIRE?



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MANAGING DIRECTOR

EX MANAGING DIRECTOR

RAMALINGA RAJU

NEW VICE CHAIRMEN & MANAGING DIRECTOR

ANAND MAHINDRA



S

A

T

Y

A

M

CURRRENT ASSETS

LIABILITIES

ACTUAL DEBTWAS 2161

OVERSTATED490 CR.

ACTUAL CASHIN BANK WAS321 INFLATED

5040 CR.

NO ACCRUEDINTEREST376.34 CR.

UNDERSTATED

LIABILITY 1230 Cr. Which was ARRANGED BY

MR.RAJU

ARTIFICIALLY ADDED 588 OPERATINGPROFIT ADDED 588INCREASING THE CASH RESERVEONLY FOR Q2 ALONE TO 588



CHANGE THE NAME OF THE COMPANY.

RECONSTITUTION OF THE BOARD :-

RESTORE THE MANAGEMENT OF THE

COMPANY AND APPOINT SOME REPUTEDPEOPLE AS THE BOARD OF DIRECTORS.

TRY BUILDING CONFIDENCE IN THE

CLIENTS TO GET BACK THE LOST

PROJECTS.

THE IMAGE OF THE COMPANY COULD BE

REVIVED BY A SERIES OF PRESS

CONFERENCES HIGHLIGHTING THE

ON GOING CONTRACTS WITH THE CLIENTS.

IT COULD ALSO BE MERGED WITH ANYOTHER SOFTWARE COMPANY.

WHAT MANAGEMENT

COULE DO?



Ø TECH MAHINDRA IS PAYING RS1757

CRORE

FOR A 31% STAKE IN THE COMPANY, OR RS

58

PER SHARE.

Ø SATYAM COMPUTER SERVICES HAS NOW

ZOOMED 15% TO RS 54.20 AHEAD OF THE

ANNOUNCEMENT OF THE HIGHEST BIDDER

FORTHE COMPANY ON APRIL 13, 2009.

Ø IN INDIA THIS MOMENT WAS FULL OF

PRAISE

FOR THE MANNER AND SPEED WITH WHICH

THERECONSTITUTED BOARD OF SATYAM

S

A

T

Y

A

M

Tech Mahindra wins bid for Satyam

Scam



company Chairman Ramalinga Raju resigned after notifying

board members and the Securities and Exchange Board of

India (SEBI) that Satyam's accounts had been falsified



SATYAMTHE HIDDEN TRUTH



V.CHANDRASEKARAN

(Pentamedia Group)

DINESH DALMIA

(DSQ Softwar es)

RAMALINGARAJU

(Satyam Computer s)



Byrr aju Ramalinga Raju is the biggest

fr audster. In the Indian softwar e Industr y.But he is not the fir st.

Dinesh Dalmia, Vice-Chair man, DSQ softwar e,

has been in jail for Two year s.

Pentamedia company promoter

V.Chandr asekar an was found to be incahoots with tainted broker KETAN PAREKHin rigging up shar e prices.



THE TRUTH SERUM TRAILS

Satyams Rs 7,000-cror e duplicity.

Scale of monies and skulldugger y involved and the worr yingimplication for Indias IT sector.

The Satyam saga puts the entir e corpor ate food chain intoquestion from dir ector s and auditor s to analysts and

the media.

Is The Satyam scandal just about a promoter manipulating the financial statements of his company to show asuperior per for mance?



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Balance sheet of Satyam computer ltd.

SOURCES OFSOURCES OF FUNDSFUNDS AS ON 30.09.08AS ON 30.09.08 ADJUSTEDADJUSTED BALANCEBALANCESHEETSHEET

ADJUSTMENTSADJUSTMENTS

1.1. Shareholders fundsShareholders fundsa. Share capitala. Share capital(share application money ,(share application money ,pending)pending)

b. Allotmentb. Allotment

c. Reserves and surplusc. Reserves and surplus

134.70134.70

2.762.76

8392.238392.23

134.70134.70

2.762.76

((--)415.47)415.47

2. Loan Funds

a. secured loans

b. unsecured loans

____________________

30.49

234.80

______

8794.98

_______

30.49

1464.80

_______

1217.28

_______

1230.00

_______

1230.00

________



APPLICATION OF FUNDS AS ON

30.09.08

ADJUSTED BALANCE

SHEET

ADJUSTMENT

S

1. Fixed assests

2. Investments

3. Tax

4. Curr ent assests

a. sundry debtorsb. cash

c. accrued inter est

d. Loans

LIABITIES

Net curr ent assests

TOTAL APPLICATION OF FUNDS

1381.10

618.64

118.75

2651.365312.62

376.34

502.22

2166.05

6676.49

_______

8794.98

1381.10

618.64

118.75

490.00272.62

-

502.22

2166.05

901.21

_________

1217.28

1381.10

618.64

118.75

2161.365040

376.34

-

-

5775.21

(differenc

e)

________

7577.7



W here is the money???



Spice grou p

Tech Ma hind ra

H ind uja grou p

L&T

GE

BID

DER S

FOR

ACQ UISI

TION



FINALLY

SATYAM

ACQUIR

ED BYTECH

MAHIND

RA«.

36490436 presentatio satyam case

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