Satyam computer services Ltd. is an consulting and information technology services company based in Hyderabad.
Moving away from the traditional agriculture business and set up a spinning and weaving mill named Sri Satyam. Thereafter Ramalinga Raju shifted to the real estate business and started a construction company called Satyam Constructions. In 1987, founded Satyam Computer Services along with one of his brothers-in-law, DVS Raju. The company went public in 1992. With the launch of Satyam Infoway (Sify) Satyam became one of the first to enter Indian internet service market
The company offers information technology (IT) services and has various other SBU,s
Satyam’s exemplary work in developing a land information network for a land agency in Singapore, has won them the prestigious URISA (The Urban and Regional Information Systems Association) 2008 Exemplary Systems in Governments, US, and FutureGov Magazine’s Government Technology Award 2008 .
The SSMS Integration Engine for Ministry of Education, Malaysia, won the Best Integrated e-Business Solution Award , for the year 2004 from Microsoft Malaysia
The prestigious Neilson Norman Group recognized the intranet site developed for a leading development institution as one of top 10 intranets in 2002.
President's Award, STAR: World Bank recognizes Satyam's SAP Horizontal Business Unit for its outstanding support and partnership provided to HIPC Debt Initiative Team for the year 2001.
Satyam’s Internet-based application for the Office of Public and Indian Housing, Department of Housing and Urban Development won the Vice President Al Gore's award for one of the 10 best e-Government applications for the year 2000.
Satyam's network covers 67 countries across six continents.
The company employs 41,000 IT professionals across development centers in India , the United States , the United Kingdom , the United Arab Emirates , Canada , Hungary , Singapore , Malaysia , China , Japan , Egypt and Australia .
In 2008, the company attempted to acquire two infrastructure companies founded by family members of company founder Ramalinga Raju - Maytas Infrastructure and Maytas Properties ) - for $1.6 billion, despite concerns raised by independent board directors. Both companies are owned by Raju's sons. This eventually led to a review of the deal by the government,a veiled criticism by the vice president of India and Satyam's clients re-evaluating their relationship with the company. Satyam's investors lost about INR 3,400 crore in the related panic selling. The USD $1.6 billion (INR 8,000 crore) acquisition was met with skepticism as Satyam's shares fell 55% on the New York Stock Exchange . Three members of the board of directors resigned on Monday 29th Dec 2008.
The World Bank has banned Satyam from doing business with it for 8 years due to inappropriate payments to the World Bank's staff.The World Bank in its own statement has denied allegations of "data theft/malicious attacks", but confirmed the allegations on transactions benefiting Bank staff and inability to provide information sought on invoices submitted to the Bank.
UK mobile payments company Upaid Systems is suing Satyam for over 1 billion dollars on complaints of fraud, forgery and breach of contract.
Raju confessed that Satyam's balance sheet as of the September 30, 2008, carried inflated figures for cash and bank balances of INR 5,040 crore (as against INR 5,361 crore reflected in the books). It carried an accrued interest of INR 376 crore which was non-existent. An understated liability of INR 1,230 crore on account of funds was arranged by himself. An overstated debtors' position of INR 490 crore (as against INR 2,651 crore in the books).
For the September quarter (Q2) we reported a revenue of Rs 2,700 crore and an operating margin of Rs 649 crore (24 per cent of revenues) as against the actual revenues of Rs 2,112 crore and an actual operating margin of Rs 61 crore (3 per cent of reve nues). This has resulted in artificial cash and bank balances going up by Rs 588 crore in Q2 alone
The gap in the balance sheet has arisen purely on account of inflated profits over a period of last several years (limited only to Satyam standalone, books of subsidiaries reflecting true performance). What started as a marginal gap between actual opera ting profit and the one reflected in the books of accounts continued to grow over the years. It has attained unmanageable proportions as the size of company operations grew significantly (annualised revenue run rate of Rs 11,276 crore in the September q uarter, 2008 and official reserves of Rs 8,392 crore).
Capital market regulator Securities and Exchange Board of India (Sebi), which was investigating insider trading charges against Satyam’s promoters and some institutional investors, has widened its inquiry to cover the role of banks and the internal auditor in Satyam
Later investigations showed that bank fixed deposits were also reportedly forged. Sebi, therefore, has launched a coordinated investigation with the Registrar of Companies (RoC) to examine transactions between Satyam and its bankers BNP Paribas, Citibank, HSBC, HDFC and ICICI Bank
If it is established that bank officials were conniving with Satyam’s management to issue false certificates, a case can be lodged against the bank employees.
Sebi’s investigation into the internal auditor’s role assumes significance because external auditor Price Waterhouse has said yesterday that its audit report on Satyam cannot be relied upon because it relied on information and explanations provided by the management
Sebi’s investigations have been delayed because Raju and his brother, who was Satyam’s managing director, are in jail.
Sebi is also investigating insider trading charges . While ordering investigation in Satyam’s case Sebi has said that the scope of investigation will also cover insider trading. Sources said ‘it is obvious that first we will look at the insider trading within the company and than by outsiders.’ If the bulk sell of shares by institutional investors after reversal of Maytas acquisition was based on some inside information — like possibility of fraud by the promoters — by them than actions can be taken against the institutional sellers .
Chartered accountants regulator ICAI issued show-cause notice to Satyam's auditor PricewaterhouseCoopers (PwC) on the accounts fudging.
the government nominated noted banker Deepak Parekh , former NASSCOM chief Kiran Karnik and former Sebi member C Achuthan to Satyam's board.
The New York Stock Exchange has halted trading in Satyam stock as of 7 January 2009.  India's National Stock Exchange has announced that it will remove Satyam from its S&P CNX Nifty 50-share index on January 12
Satyam's shares fell to 11.50 rupees on 10 January 2009 , , their lowest level since March 1998 . Last year they hit a high of 544 rupees
The Indian Government has stated that it may provide temporary direct or indirect liquidity support to the company
The life of many engineers working for Satyam is questionable specially the new recruits .
Talks are going on to discuss on how to secure working capital, appointment of the CEO, CFO and merchant bankers to find a strategic investor for the company.
Had appointed Deloitte (auditing firm)to assist the company in restating its accounts
Besides, many clients are seriously considering a vendor consolidation, and Satyam is expected to lose out to its competitors in India, including Tata Consultancy Services, Infosys Technologies and Wipro
Companies like L & T , Unitech and likes are in race to take over the company .
India’s top software services firms are expected to report quarterly profit rose by up to a quarter, but the accounting fraud at Satyam Computer Services has further dented prospects in the slowdown-scarred sector.
Analysts said global firms, scared by the revelations of a $1 billion accounting fraud at New York-listed Satyam, might delay giving large contracts as they step up due diligence.
The massive financial fraud at Satyam, which has become India’s biggest corporate scandal, was a negative for the industry, Citigroup said in a report.
The $1 billion fraud whacked Indian stocks and the currency, as investors worried over the damage to foreign investment in Asia’s third-largest economy and the once-booming outsourcing sector, a magnet for thousands of young job seekers.