Coporate governance may be defined
as holding a balance between
economic and social goals and
between individual and commercial
goals. A good corporate governance is
one where a firm commits and s
encompassing employee, customer,
venders, and shareholders in both
good and bed times.
Satyam computers services ltd.was founded
on 27 june 1987 the company offers
information technology (IT) services
spanning various sectors, and is listed on the
New York Stock Exchange and Euronext.
Satyam’s network covers 67 countries across
six continents. The company employees
50,000 to 53,000.
IT professionals across devlopment centers
in India, the United States, the United
Kingdom, the United Arab Emirates, Canada,
Hungary, Singapore, Australia and many
It serves over 654 global companies, 185 of
which are fortune 500 corporations.
Executives Directors : . B. Ramalinga Raju
Mr. B. Rama Raju (CoFounder& Ceo)
1987 (Incorporated as private limited
company in 1987)
1991 (Recognized as a public limited
company; debuts on the Bombay Stock
Exchange (BSE) )
(IPO oversubscribed by 17 times.)
1993 ( Satyam signs joint venture with
Dun & Bradstreet for IT services.)
(Joint venture with GE announced.)
• 1999 (Satyam Infoway (sify) becomes
the first indian internet company
listed on (NASDAQ) )
( Satyam forms joint venture with TRW Inc.)
(Presence established in 30 countries.)
• 2007 (Becomes the official IT services
provider for the FIFA world cup.
• Announces acquisition of UK-based nitor
global solutions limited.
• Becomes the first asian company to feature in
the training magazine’s list of top 125
companies for learning.
• Satyam scam was not any easy issue. It has its
own complexities as it involved 14000 crore
• Satyam scam had been the example for
following poor governance practices.
• It had failed to show good relation with the
share holders and employees.
• So as to throw a light on the poor governance
practice at one of the major IT giants, the
need to study such case is model, it could be
suggested that there is a need to frame up
good governance rules and see to the proper
implemantation of it.
Mr. Ramalinga Raju, CEO at the time of the
scam was Mr. Ram Mynampati and CFO was
Mr. Valdamani Srinivas.
Satyam computer services limited has its
headquarter at hyderabad.
Satyam computer services ltd has several
A. Satyam BPO
C. C A Satyam
E. Bridge Consultancy
In mid-december 2008, satyam announced
acquisition of two companies- Maytas
properties and Maytas Infrastructure.
Owned by the family members of satyam’s
Founder and Chairman.
It planned to acquire 100% and 50% stakes
in Maytas Property and Infra. $ 1.6 B.
Due to adverse reaction from institutional
investors and the stock markets, the deal
was withdrawn with in 12 hrs.
Inflated figures for cash and bank balances
of INR 5,040cr. (as against INR 5,361cr.
Reflected in the books.)
Operating profit were artificially boosted
from the actual 61cr. To 649cr.
Satyam also showed an interest earning of
Rs. 376 cr. That was fictitious.
An over stated debtoursposition of Rs.2651
reflected in the books.
Dec’08 brought news of pending litisgation
by a former client, online mobile-payment
service unpaid systems which field a case of
intellectual fraud and forgery against satyam
On dec. 16, when raju announced the
company would spend $ 1.6 billion to buy
Maytas only to reverse the decision a few
hours later under share holder pressure.
It is not a mere co-incidence that maytas is
satyam spelt in reverse way.
Maytas is actually run by satyam family. It
include maytas properties & maytas infra ltd.
Maytas was a 2 decade old company. It had
been doing remarkably well in the past 6-7
years and projects worth billions were riding
All well that’s end well.
Anand Mahindra- New Owner of Satyam.
Post Rs.2890 crore as takeover.
On 13th Apr 2009, VIA formal public auction
process, 46% stake in satyam was purchase by
July 2009, satyam Rebranded its service as