CORPORATE
GOVERNANCE
FAILURE AT
SATYAM
what is corporate
goverance ?
Corporate governance is
typically perceived as
dealing with problem that
results from the separation
of leadership and con...
DEFINITION
Coporate governance may be defined
as holding a balance between
economic and social goals and
between individual and comme...
Dr. B.
RAMALING
A RAJU
Satyam computer
services limited .
INDRODUCTION
 Satyam computers services ltd.was founded

on 27 june 1987 the company offers
information technology (IT) services
spann...
 Satyam’s network covers 67 countries across

six continents. The company employees
50,000 to 53,000.
 IT professionals ...
Management-Boards
Executives Directors : . B. Ramalinga Raju
(Founder& Chairman)
 Mr. B. Rama Raju (CoFounder& Ceo)
Non-Executives Directors :Mr. V.P. Rama Rao, IAS (Retd.)
Dr. (Mrs.) Mangalam Srinivasan
Prof. Krishna G. Palepu
Mr. Vi...
Few milestones
 1987 (Incorporated as private limited
company in 1987)
 1991 (Recognized as a public limited
company; debuts on the Bom...
 ( Satyam forms joint venture with TRW Inc.)

(Presence established in 30 countries.)
• 2007 (Becomes the official IT ser...
SATYAM CASE
IMPROTANCE
• Satyam scam was not any easy issue. It has its

own complexities as it involved 14000 crore
scam.
• Satyam scam had been...
CONDITION OF SATYAM
SHARE
ABOUT SATYAM
CONSULTANCY
LTD.
Mr. Ramalinga Raju, CEO at the time of the
scam was Mr. Ram Mynampati and CFO was
Mr. Valdamani Srinivas.
Satyam computer...
SATYAM SCAM
DETAILS
MAYTA
S
INFRA
 In mid-december 2008, satyam announced
acquisition of two companies- Maytas
properties and Maytas Infrastructure.

Owned...
What went wrong ?
 Inflated figures for cash and bank balances

of INR 5,040cr. (as against INR 5,361cr.
Reflected in the books.)
 Operati...
Slippery slope to
disaster
 Dec’08 brought news of pending litisgation

by a former client, online mobile-payment
service unpaid systems which field...
SATYAM’S SECRET
BANK OFFICE MAYTAS
 It is not a mere co-incidence that maytas is

satyam spelt in reverse way.
 Maytas is actually run by satyam family. It...
ACQUISITION BY
MAHINDRA GROUP
 All well that’s end well.
 Anand Mahindra- New Owner of Satyam.

 Post Rs.2890 crore as takeover.
 On 13th Apr 2009, ...
CONCLUSION
If auditing firm is honest.
SEBI plays an active role.
Periodic review of legal compliance

reports by independent dire...
Submit By :Group Iv
Khushboo Goyal
Prally Jha
Astha Gubrele
Jyoti Sahu
Shiva Rajpoot
Deepika Malhotra

Submit To :Dr.Vandh...
THANK YOU
Deepi malhotra 3
Deepi malhotra 3
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Deepi malhotra 3

  1. 1. CORPORATE GOVERNANCE FAILURE AT SATYAM
  2. 2. what is corporate goverance ?
  3. 3. Corporate governance is typically perceived as dealing with problem that results from the separation of leadership and control.
  4. 4. DEFINITION
  5. 5. 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.
  6. 6. Dr. B. RAMALING A RAJU
  7. 7. Satyam computer services limited .
  8. 8. INDRODUCTION
  9. 9.  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.
  10. 10.  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 more.  It serves over 654 global companies, 185 of which are fortune 500 corporations.
  11. 11. Management-Boards Executives Directors : . B. Ramalinga Raju (Founder& Chairman)  Mr. B. Rama Raju (CoFounder& Ceo)
  12. 12. Non-Executives Directors :Mr. V.P. Rama Rao, IAS (Retd.) Dr. (Mrs.) Mangalam Srinivasan Prof. Krishna G. Palepu Mr. Vinod Dham
  13. 13. Few milestones
  14. 14.  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) )
  15. 15.  ( 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.
  16. 16. SATYAM CASE IMPROTANCE
  17. 17. • Satyam scam was not any easy issue. It has its own complexities as it involved 14000 crore scam. • 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.
  18. 18. CONDITION OF SATYAM SHARE
  19. 19. ABOUT SATYAM CONSULTANCY LTD.
  20. 20. 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 subsidiaries : A. Satyam BPO B. Citisoft C. C A Satyam D. STI E. Bridge Consultancy
  21. 21. SATYAM SCAM DETAILS
  22. 22. MAYTA S INFRA
  23. 23.  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.
  24. 24. What went wrong ?
  25. 25.  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.
  26. 26. Slippery slope to disaster
  27. 27.  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 in 2008.  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.
  28. 28. SATYAM’S SECRET BANK OFFICE MAYTAS
  29. 29.  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 upon them.
  30. 30. ACQUISITION BY MAHINDRA GROUP
  31. 31.  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 Mahindra.  July 2009, satyam Rebranded its service as “MAHINDRA SATYAM”.
  32. 32. CONCLUSION
  33. 33. If auditing firm is honest. SEBI plays an active role. Periodic review of legal compliance reports by independent directors.
  34. 34. Submit By :Group Iv Khushboo Goyal Prally Jha Astha Gubrele Jyoti Sahu Shiva Rajpoot Deepika Malhotra Submit To :Dr.Vandhana Bharti Mam.
  35. 35. THANK YOU

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