Satyam Scam: Abhijit Samanta
Satyam Scam: Abhijit Samanta
Satyam Scam: Abhijit Samanta
SATYAM SCAM
2010
The company had faced some inflated share price in the market which helped the
people to hide the actual figures in the balance sheet. As a result of this there was
suddenly a huge fall in the share price of the company and everything was crystal clear.
The more insights is given in the financial details.
Inflated (non-existent) cash and bank balances of Rs 5,040 cr. (as against Rs
5,361 cr. reflected in the books).
An accrued interest of Rs 376 cr. which is non-existent.
An understated liability of Rs 1,230 cr. on account of funds arranged by me. (The
chairman B. Ramalinga Raju itself).
An understated liability of Rs 1,230 cr. on account of funds arranged by him.
2
For the September quarter(Q2) they reported a revenue of Rs 2,700 cr. and an
operating margin of Rs 649 cr. (24% of revenue) as against the actual revenues
of Rs 2,112 cr. and an actual operating margin of Rs 61 cr. (3% of revenues).
This has resulted in artificial cash and bank balances going up by Rs 588 cr. in
Q2 alone.
The main cause of the differences in the figures of the balance sheet was the inflated
profits since several last years. It created a significant difference in the shown figure and
the actual figure of the balance sheet.
Satyam’s disgraced chairman described the growing fraud as “like riding a tiger, not
knowing how to get off without being eaten”. The same sentiment applies to too much of
the financial boom, in India and elsewhere.
The chief financial officer, Srinivas Vadlamani told that he never paid so much attention
to the balance sheet.
Now the big question is that “Is it a matter of two or three people only?” it may be that
inside the company there were also some other people who were actually engaged in
this case but somehow they could manage to escape.
3
Shareholders & the Media: -
• Sometimes activism just does not help.
• When Raju sought to push through the Maytas deal without taking shareholders
into confidence, he was faced with huge protests.
• The media, keen to help the underdog, too joined in the protest.
• In hindsight, it appears that it would have perhaps saved Satyam if the deal had
been allowed to go through, as Satyam would have been able to use Maytas's
assets to shore up its own books.
• Thus by way of negligence the government too is equally guilty in not having
managed to save the shareholders, the employees and some clients of the
company from losing heavily.
• The Bharatiya Janata Party asked the Centre and Andhra Pradesh government
to take steps to protect the interests of 53,000 employees and investors of the
scam-hit Satyam Computer.
• "The government of India and Andhra Pradesh government should take all steps
to protect the interests of investors and the company's employees," senior BJP
leader Venkaiah Naidu said on the sidelines of the BJP's Youth Rally in Chennai.