Project on Satyam Scam

Name: Mr. Hiten S. PanchalStd.: M.M.S. IDiv.: ARoll No.: 643 Sub.: marketing Applications & PracticesProject: Satyam Saga SATYAM SAGA Introduction: On 7th January, Wednesday, Satyam Computer service Chairman B Ramalinga Raju resigns and disappears by and by confessing to the largest finesse of Rs. 7,136 crore in Indian corporate history. He admitted to committing a gigantic fraud that shake corporate India and the stock markets to the core. In a letter to the board, Raju, 54, take his conscience and admitted that in that location was a huge hole in the participations balance-sheet created by reporting inflated gain over a period of the last several years. He tried to fill this gap by announcing the merger of Satyam, Indias fourth largest software firm, with two family-owned companies, but an investor revolt aborted the move. The Sensex mixed-up 749.05 points, or 7.25%, to end at 9,586.88 on 7th January after B Ramalinga Raju admitted to have defrauded Satyam Computer Services. It eroded Rs. 2,13,000 crore of investor wealth. Satyam investors lost Rs. 9,327 crore as the share went into a free fall, from Rs. 179 on 6th January to Rs. 39.95 on 7th January. In his letter he stated that there was Missing cash/bank balance of Rs. 5040 crores plus absentminded interest income of Rs.

376 crores plus understated liabilities of Rs. 1230 crores plus overstated dues to company of Rs. 490 crores adding it up Rs. 7136 crores was total missing amount. He also give tongue to that Every attempt to eliminate the gap failed. It was like ride a tiger, not knowing how to farm off without being eaten. Causes/Reasons behind Fraud: 1) The first reason behind this fraud is but obvious; it was Rajus greed for coin. He was seek to buy family promoted companies which are Maytas Infra and Maytas Properties but due to square market & investor reactions it could not happened. It was found that he was using money for funding his family owned businesses and for personal use by... If you want to get a full essay, order it on our website: Orderessay

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