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Born-
September 16, 1954 { Bhimavaram , Andhra Pradesh, India} Residence- Hyderabad, Andhra Pradesh, India Nationality- Indian Occupation- Former Chairman of Satyam Computer services
Traditional
agriculture business Spinning &weaving mill( sri satyam) Real estate business Construction company(satyam construction) 1987 Satyam computers 1992 public
Former
chairman B.Ramalinga Raju is the prime convict in the case with several other board members
December the 16th, 2008: $1.6 billion bid for two Maytas companies i.e. Maytas Infrastructure Ltd and Maytas Properties Ltd
Thumbs down given by investors and the market forced him to retreat within 12 hours Share prices plunges by 55% on concerns about Satyams corporate governance
23, 2008: World Bank announced that Satyam has been barred from business with World Bank for eight years for providing Bank staff with improper benefits and charged with data theft and bribing the staff prices fell another 14% to the lowest in over 4 years
December
Share
December
28 :Mangalam Srinivasan, announced resignation followed by the resignation of three more independent directors 7, 2009:Ramalinga Raju announced confession of over Rs. 7800 crore financial fraud and he resigned as chairman of Satyam revealed in his letter that his attempt to buy Maytas companies was his last attempt to fill fictitious assets with real ones.
January
He
Satyams
auditors Price Waterhouse finally admitted that its audit report was wrong as it was based on wrong financial statements provided by the Satyams management
The
companys balance sheet was inflated to Rs 5,361 crore against the actual Rs 5,040 crore. CFO Srinivas Vadlamani confessed to having inflated the number of employees by 10,000.
helped in drawing around Rs 20 crore per month from the related but fictitious salary accounts
Satyams
This
Youngest
sibling of Ramalinga Raju who owned 4.3 per cent in Maytas Infra, and recovered 112 sale deeds of different land purchases and development agreements
partners S Gopalakrishnan and Srinivas Talluri of the auditing firm PricewaterhouseCoopers (PwC) were arrested for their alleged role in the Satyam scandal
Senior
Jobs
Countrys
booming economy feared slight collapse as countrys GDP fell by estimated 0.4% IT sector suffered downturn as its image was tarnished globally
Indias
Reforms
Governance Reform Independent Directors After the Satyam scandal, investors and regulators called for strengthening the regulatory environment in the securities markets. The Ministry of Corporate Affairs is devising a new Corporate Code and is considering changing the securities laws to make it easier for shareholders to bring class action lawsuits. Disclosure of Pledged Securities After Satyam, the SEBI increased disclosure obligations of promoters and controlling shareholders. Increased Financial Accounting Disclosures The SEBI also recently proposed requiring companies to disclose their balance sheet positions twice a year. IFRS (Adoption of International Standards)
Satyam strengthened India's commitment to adopting International Financial Reporting Standards ("IFRS") by 2011.
Contd..
Increased Financial Accounting Disclosures The SEBI also recently proposed requiring companies to disclose their balance sheet positions twice a year. IFRS (Adoption of International Standards) Satyam strengthened India's commitment to adopting International Financial Reporting Standards ("IFRS") by 2011. Creation of New Corporate Code - Ministry of Corporate Affairs New code will apply along with the regulatory obligations imposed by the SEBI. Adherence to the Code will be voluntary; however, every company that deviates from the code's requirements must disclose the deviations to the ministry. Tech Mahindra purchased 51 percent of Satyam on April 16, 2009, successfully saving the firm from a complete collapse. With the right changes, India can minimize the rate and size of accounting fraud in the Indian capital markets.