Presentation of Financial Management: Presented By: Shalvi Mahajan & Simran Aggarwal
Presentation of Financial Management: Presented By: Shalvi Mahajan & Simran Aggarwal
Presentation of Financial Management: Presented By: Shalvi Mahajan & Simran Aggarwal
TOPICS
SATYAM
COMPANY PROFILE
Satyam was established in 1987 by Mr. B Ramalinga Raju. . 4th fastest growing IT company in India. It serves over 654 global companies. 40,000 employees. On 26th August, 1991 it was converted into a Public Limited Company.
ACHIEVEMENTS
First
IT Company in the World Certified under ISO9001:2000. Corporate Citizen award for Corporate Social Responsibility. Top 13 Best-Managed Companies in India. Satyam Wins golden peacock award for excellence in Corporate Governance 2008 on Global level for 2nd time (revoked after the fraud was confessed).
Satyam Clients
A total of 650+ Clients 185 of the top fortune 500 Companies
purpose. Without taking permission of the share holders. Raju had used dummy accounts to trade in Satyam's shares. On 7th Jan., 09, Chairman (Ramalinga raju) resigned after announced involvement in fraud.
2.
Raju wanted to take over his MAYTAS INFRA and MAYTAS PROPERTIES.(company of his sons). He was blamed that he was using the funds of the investors for the family business.
FRAUD
Rs. 1,230 Cr
Rs. 7,136 Cr
Fraud Amount
Understated Liabilities
IMPACT OF SCAM
Before
the scandal its share price was Rs 300 in oct 2008. Just after this scandal, the share price go down to Rs 6.30.. Before the scandal Satyam was the 4th ranked among IT companies of India and on 9th jan2009 it became least valuable IT company in India.
Anand mahindra- new owner of the satyam. Post rs 2890crore as takeover. July 2009, satyam rebranded its service as MAHINDRA SATYAM.
AGENCY COST
Agency cost is the cost incurred to the company or share holders in monitoring the activities of the managers.