This document summarizes the Satyam fraud scandal that occurred in 2009 in India. It describes how Satyam's founder, B. Ramalinga Raju, confessed to inflating the company's revenues, cash balances, and other financial details by over $1 billion US dollars. As a result of the confession, Satyam's stock price plummeted, investors and employees were impacted, and the company was eventually acquired by Mahindra Group. The scandal shocked the Indian IT industry and had major financial and legal consequences.

1. THESATYAM FRAUD

2. GROUP MEMBERS SHIVANI GOHIL 03 RUBY AGARWAL 24 ANAGHA KALAMKAR 17 BHAKTI SUKHTHANKAR 49 SAYALI MANJREKAR 26 PRATIKSHA MANGAOKAR 25

4. location.

5. Board of directors.

6. service offered

7. Conversion into public company.

9. Satyam employers

10. 1st internet service provider

13. Without taking permission of the shareholders.

14. Failed to repay the loans.

16. Sold of shares.

18. Inflated (non-existent) cash and bank balances of Rs. 5040 cRore (as against Rs. 5312 core reflected in the books)

19. An accrued interest of Rs. 376 cRore which is non-existent

21. For the second quarter satyam reported a revenue of Rs.2700 cRore and an operating margin of Rs.649crore (24% of revenues)

22. As against actual revenue of Rs.2112 crore and an actual operating margin of Rs.61 crore (3% of revenues)

24. CONFESSION JANUARY 7TH, 2009 “ IT WAS LIKE RIDING A TIGER , NOT KNOWING HOW TO GET OFF WITHOUT BEING EATEN “

26. BALANCE SHEET AS ON 30TH SEPTEMBER 08

27. FOR SEPTEMBER QUARTER (Q2) REVENUE AND OPERATING MARGIN

28. ARTIFICIAL CASH AND BANK BALANCE GOING UP BY RS 588 CRORES IN Q2 ALONE

29. EVERY ATTEMPT TO ELIMINATE THE GAP FAILED

31. NET AMOUNT OF RS 1230 CRORE WAS ARRANGED TO SATYAM IN THE LAST 2 YEARS

32. NOT TAKEN EVEN ONE RUPEE/ DOLLAR

33. NONE OF THE BOARD AND THE FAMILY HAD KNOWLEDGE

34. TASK FORCE HAS BEEN MADE

36. PREPARED TO FACE CONSEQUENCES

38. Employees- stranded in many ways- morally, financially, legally and socially.

39. Customers- shocked and worried about the project continuity, confidentiality and cost over run.

41. The benchmark Sensex slipped over to 7% on 7 January 2009.

42. Satyam stock is being removed from its S&P CNX Nifty 50-share index .

44. Anand Mahindra – New owner of Satyam