law case on satyam fraud...

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its a tort case based on satyam fraud...

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Slide 1: 

Presented by Law Case on Tort SATYAM Fraud Mashkoor Abhishek Bharat Priya Suman Rojalin

SATYAM COMPUTERS SERVICES LTD. : 

The company was incorporated on 24th June 1987 as a Private Limited Co. for providing Software Development And Consultancy Services to large corporations. The company was promoted by B Rama Raju and B.Ramalinga Raju. The Company had set up two software Technology Parks, one at Mayfair Centre Secunderabad and other at Qutuballapur of Ranga Reddy Dist. of A.P. 26th August 1991 it was converted into a Public Limited Company. SATYAM COMPUTERS SERVICES LTD.

SATYAM’s NETWORK : 

SATYAM’s NETWORK Satyam computer services limited is spread across 8 major cities in India. And across the globe to US, Canada, Japan, UAE , Singapore, Malaysia, Australia an European countries like Sweden , Germany, Ireland and Hungary. The man behind the bars now Mr.Ramalaingam Raju was awarded IT man of the year in 2000 by Dataquest.

Slide 4: 

SATYAM computers had on Dec 16,2008 Announced that it will acquire two Groups firms, MAYTAS PROPERTIES,MYTAS INFRA. BOD of SATYAM had approved the founder proposal to buy 51% stake in Maytas infra and 100% stake in Maytas Properties. The deal is not profitable for Investors, so after this announcement they started to raise their voices against the deal.

SATYAM’S JUSTIFICATION FOR MAYTAS BUYOUT DEAL : 

SATYAM’S JUSTIFICATION FOR MAYTAS BUYOUT DEAL Risk the core business, Higher the risk higher the return. The integrated organization would be stronger and more diversified to deal with the uncertainty of the market. In recent time its is difficult to deals with other IT company And the deal was not profitable.

REACTION OF THE INVESTOR : 

REACTION OF THE INVESTOR The shareholders realised that the buyout was not profitable for them. Satyam using there reserve cash to purchase Maytas Infra and Maytas Properties was a big risk. “Due to this their was a collapse in the price of the company’s stock and share”.

Raju fails and The confession made by him were : 

Raju fails and The confession made by him were The company management, chairman B Ramalinga Raju, kept everyone in the dark for a decade. On 7 January 2009, company’s previous Chairman Ramalinga Raju resigned after notifying board members and the Securities and Exchange Board of India (SEBI) that Satyam's accounts had been falsified. Raju confessed that Satyam's balance sheet of 30 September 2008 contained:

Slide 8: 

Simple manipulation of revenues and earnings to show superior Performance. Raising fictitious bills for services that were never rendered. To increase the Cash & bank balance correspondingly. Never had Rs 5064 cr (US$ 1.05Billion) shown as cash for severalyears. Its liability was understated by $ 1.23 billion. The Debtors were overstated by 400 millions plus.

SATYAM SCANDAL…….. : 

SATYAM SCANDAL…….. 2008

WHO IS TO BLAME : 

WHO IS TO BLAME RAJU is by far the father of this fraud. Audit Company PRICE WATER HOUSE COOPER. The PROMOTORS. The DIRECTORS. The BANK.

SATYAM : 

SATYAM Tech Mahindra paid Rs1757 Cr for a 31% stake in the company, at Rs 58 per share. Satyam Computer Services zoomed15% to Rs 54.20 ahead of theannouncement of the highestbidder for the company on April 13,2009.

Slide 14: 

Raju brothers are arrested under section 420,406,120 B and 471.

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