2. I & II (YOURBRANCH
NAME)
BONAFIDE
This is the report of the information collected by me about my dream company
fromthe website www.mahindra sathyam.com& through emailcorrespondence
and other sources
AJAY VG SIGNATURE
CERTIFICATE
Certified that this is the report submitted by Ajay vg, (EKAOECS003) on the
study of his/her dream company.
FACULTY INCHARGE SIGNATURE
3. I & II (YOURBRANCH
NAME)
ABSTRACT
This article is aboutMahindra Satyam prior to its 2013 merger into Tech
Mahindra. For the resulting company, see Tech Mahindra.
Mahindra Satyam
Former type Public company
Industry ITservices, ITconsulting
Fate Merged into Tech Mahindra
Successor Tech Mahindra
Founded 2009
Defunct 2013
Headquarters Hyderabad, India
Services IT, business consulting and
outsourcing services
MahindraSatyam (formerly Satyam Computer Services Limited) was an
Indian ITservices company based in Hyderabad, India. Thecompany was listed
on the Pink Sheets, the National Stock Exchange and Bombay Stock Exchange.
Itoffered a rangeof services, including softwaredevelopment, system
maintenance, packaged softwareintegration and engineering design services.
In June 2009, thecompany unveiled its new brand identity Mahindra Satyam
4. subsequentto its takeover by the $14 billion Mahindra Group's ITarmon 13
April 2009. Itsubsequently merged within Tech Mahindra on 24 June 2013.[1]
5. I & II (YOURBRANCH
NAME)
ACKNOWLEDGEMENT
I take this opportunity to express my gratitude to all those without whose
help this project would not have been a success. Mostimportantly, I owe
my thanks to the Almighty for the successfulcompletion of this project.
I convey my sincere and whole hearted thanks to Prof. K.T.Joseph, Director,
Sahrdaya College of Engineering and Technology, Kodakara, for providing mean
opportunity to undertake this projectand complete it successfully.
I wish to express my deep felt gratitude and heartiest thanks to Dr. Sudha George
Valavi, Principal, Sahrdaya College of Engineering and Technology, Kodakara, for
her excellent guidance, inspiring suggestions and constructivecriticisms which
influenced many phaseof the project and help throughoutthe courseof study.
I recall with gratitude Dr. NixonKuruvila, Vice Principal, Sahrdaya College of
Engineering and Technology, Kodakara, withoutwhoseguidancethis project
would not have deemed possible. I am also indebted to all other faculty members,
Sahrdaya College of Engineering and Technology for their valuable guidance given
to me.
Aboveall, I wish to express my wholehearted gratitude to my family members
and friends who stood by me to complete this project.
7. I&II(YOURBRANCHNAME)
INTRODUCTION
In a 2000 SECfiling, Satyam Computer Services claimed to be the fourth largest
provider of information technology services in India, based on the amountof
export revenues generated. There were 7,560 technicalassociates servicing over
300 customers. Thefive largest customers, on the basis of revenue, were
General Electric Company and its affiliates, State FarmMutual Automotive
InsuranceCompany, MegasoftInc., Caterpillar Inc. and NCR Corporation. They
together accounted for 42.4% of its ITservices revenues. About26.1% of its
total ITservices revenues weregenerated fromfixed-price contracts. Satyam
also claimed topline growth of 68% to $164 million at 45% gross profitmargin.
All of its personnel in the USA were working pursuantto extended H-1Bvisas
(570 persons) or temporary L-1 visas (574persons).[2]
In a 2005 SECfiling, Satyamclaimed topline growth of 40% to $794 million at
36% gross profitmargin. There were20,690 technicalassociates. The five largest
customers accounted for 29.5% of ITservices revenues. About34.2% of its total
ITservices revenues weregenerated from fixed-price contracts.[3]
Mahindra Satyam's proposed merger with Tech Mahindra may be delayed all
because of legal issues, and ambiguity over jurisdiction between investigating
agencies and the government.[4]
The merger has been delayed due to two tax
cases pending with the IncomeTax claiming over ₹27 billion for both.[5]
Tech
Mahindra announced its merger with Mahindra Satyam on 21 March 2012,after
the board of two companies gavethe approval.[6]
Thetwo firms have received
the go-ahead for merger fromthe Bombay Stock Exchange and the National
Stock Exchange.[7]
Competition Commission of India(CCI)approved theproposed
merger of Mahindra Satyamand other companies with Tech
Mahindra.[8]
Mahindra Satyamwill hold its annualgeneral meeting (AGM) on 8
June 2012 to consider the proposalto merge the company with Tech Mahindra.
Itis mandatory for the firmto get the AGMnod to go ahead with the
8. I&II(YOURBRANCHNAME)
merger.[9]
The shareholders of both Tech Mahindra and Mahindra Satyamhave
unanimously approved the scheme of amalgamation and merger of Satyam
Computer Services Ltd, Venturbay Consultants, C&S System Technologies,
CanvasMTechnologies and Mahindra Logisoft Business Solutions with Tech
Mahindra.[10][11]
Mahindra Satyamchairman, Vineet Nayyar said on 2 August
2012, thatthe merger with Tech Mahindra was at the final stage of getting
approvalfromthe Andhra Pradesh and Maharashtra High Courts.[12]
Thetwo
firms had received the go-ahead for merger fromthe Bombay Stock
Exchange and the National Stock Exchange.[7]
On 11 June 2013,Andhra Pradesh
High Courtgave its approvalfor the merger of Mahindra Satyam with Tech
Mahindra,after Bombay high court already gave its approval.[13][14][15][16]
Vineet
Nayyar said that technical approvals fromthe Registrar of Companies(RoC) in
Andhra Pradesh and Maharashtra arerequired which will be done in two to four
weeks,and within 8 weeks,a newly merged entity will be in place. A new
organisation chart would also come into force led by Anand Mahindra as
Chairman, Vineet Nayyar as Vice Chairman and C. P. Gurnanias the CEO and
Managing Director.[17][18][19]
Tech Mahindra on 25 June 2013 announced
completion of Mahindra Satyam's merger with itself to create nation's fifth
largest softwareservices company with a turnover of USD 2.7 billion.[20][21]
Tech
Mahindra got the approvalfromthe registrar of companies for the merger late
in the night at 11:45 (pm) on 24 June 2013. 5 July 2013 has been determined
date on which the Satyam shares will be swapped for Tech Mahindra shares
which was approved by both the boards.[22]
Mahindra Satyam(Satyam
Computer Services), was suspended fromtrading with effect from4 July 2013,
following its merger with Tech Mahindra .[23]
Tech Mahindra completed share
swap and allocated its shares to the shareholders of SatyamComputer Services
on 12 July 2013.[24]
Thestock exchanges have accorded their approvalfor
trading the new shares effective 12 July 2013.[25][26]
On 24 July 2013,a division
bench of Andhra Pradesh High Courtadmitted a petition filed by Ekadanta
Greenfields and Saptaswara Agro Farms privatelimited challenging the
Mahindra Satyam-Tech Mahindra merger order.Theorder was given by a single
judgeof the courtin June, allowing the merger and dismissing the objections
raised by a few parties.After admitting the petition, the bench comprising N.V.
Ramana and Vilas V. Afzulpurkar posted thematter to 26 August2013.[27]
9. I&II(YOURBRANCHNAME)
ABOUTTHE COMPANY
SatyamComputer Services is now a thing of the past. The company, which
was named Mahindra Satyamafter it was acquired by Mahindras, has
ceased to exist following the company submitting to the Registrar of
Companies certified copies of the Andhra Pradesh High Court’s order
allowing the amalgamation.
Consequentto this, the company has cancelled the annual general meeting
scheduled for July 31. The company informed the exchanges about the
cancellation on Tuesday.
“We submitted the copies to the Registrar of Companies on Monday
evening. Now we are a merged entity. There is no need for us to hold a
standalone AGMnow. We can hold the combined AGM dates for which will
be announced later,” a Mahindra executive told Business Line.
Announcing the completion of the merger on Monday, Anand Mahindra,
Chairman and Managing Director of Mahindra Group, unveiled the new
logo of the firm.
A top-5 ITservices firm in the country after TCS, Cognizantand Infosys,
Wipro, HCL, Tech Mahindra has 84,000 employees working in 46 countries.
Its revenuefor 2012-13 was putat $2.7 billion.
The company targets to achieve $5 billion by 2015.
"Over the pastfour years while weworked through the statutory and legal
issues, our teams worked closely on the ground to integrate processes,
eliminate overlaps, leveragebest practices and deliver enhanced value to
all our stakeholders," VineetNayyar, Executive Vice-Chairman, Tech
Mahindra, said.
10. I&II(YOURBRANCHNAME)
The court gave its nod early this month after dismissing the claims of some
‘creditors’ who claimed that the company borrowed aboutRs 1,230 crore
fromthem during the Ramalinga Raju days. Some minority shareholders
too objected to the merger, saying the swap ratio was not favourableto
them.
While dismissing their claims against the amalgamation, the courtsaid the
merger could go ahead, while the pending matters in various aspects of the
fraud continue.
The company announced a dividend of 30 per cent for the investors. Itis
the firstdividend after the Mahindras took over the company in April2009,
winning the bid to own the scam-hit company.
The IncomeTax Department had issued notices to the company
seeking ₹6.17 billion tax for the assessmentyears from2003–04 to 2008–09,
when the company was run by B Ramalinga Raju and his team. The Central Board
of Direct Taxes has attached the properties of Mahindra Satyam on 3 February
2012,stating theattachment of properties was according to Section 281 B of the
IncomeTax Act. Section 281 B refers to recovery of tax and allows the tax
department to issue provisionalorders to the assesseeto safeguard revenues
accrued to it.The IncomeTax department had slapped notice on the company
after disallowing exemptions claimed by the softwarefirm. The company has
received notices of demand for ₹1,037 croreand ₹10.75billion for assessment
years 2002–03 and 2007–08, respectively. [28]
However, theAndhra Pradesh High
Court granted a breather to Mahindra Satyam, by staying the IncomeTax
Department's provisionalorder to attach properties of the ITfirm.[29]
The company had reported a consolidated net loss of ₹2.33 billion for the July–
September quarter of 2010. Speaking at a press conference, Vineet Nayyar,
11. I&II(YOURBRANCHNAME)
chairman of the company said the consolidate cash and cash equivalents
at ₹300 million compared to ₹260 million. "Wewill take three years for a
turnaround," heinformed.[30]
Even though the company got ₹2.45 billion profit in
Q4 for 2010–2011,butdue to outside payments nearly ₹5.70 billion for
SEK,UPAID and Class Action Suit in Q4 (Total 6.41 billion for the year 2010–2011
),the company had reported a consolidated net loss of ₹3.27 billion for the
January–March quarter of 2010–2011.ITfirmMahindra Satyamposted a
consolidated net profit of ₹2252 million for the quarter ended 30 June 2011.
During the quarter, the company added 2,172 people(net), taking total
headcount to 31,438 as of 30 June 2011.[31]
Thecompany added 36 new customers
during the quarter. The total headcount of the company stood at 32,092 as of the
quarter ended 30 September 2011 during which net addition of 654 personnel
took place.[32]
The company added 188 employees in quarter three ending 31
December 2011 and recorded 29.4% quarter-on-quarter in its consolidated net
profit of ₹3.08 billion .[33]
Mahindra Satyamreported a net profit of ₹5.34 billion
for the fourth quarter ended 31 March 2012.[34]
Mahindra Satyam
declared 30 per cent dividend, signalling a complete turnaround,after declaring
Q4 results of 2012-2013 in May 2013.[35][36]
in 2008, Satyamattempted to acquire Maytas Infrastructureand Maytas
Properties, founded by family members of Ramalinga Raju (Maytas is "Satyam"
reversed) for $1.6 billion, despite concerns raised by independent board
directors.[37]
Both companies are owned by Raju's sons. This eventually led to a
review of the deal by the government,[38]
a veiled criticismby the Vice
Presidentof India Hamid Ansari,[39]
and Satyam's clients re-evaluating their
12. I&II(YOURBRANCHNAME)
relationship with the company.[40]
Satyam's investors lost
about ₹3300 crore(equivalentto ₹50 billion or US$790 million in 2015) in the
related panic selling. The US$1.6 billion (₹80 billion) acquisition was met with
scepticismas Satyam's shares fell 55% on the New York Stock
Exchange.[41]
Three members of the board of directors resigned on 29
December 2008.[42]
The following is a list of the largest informationtechnology consulting firmsin
the world, along with their corporate headquarters location and the total
number of consultants they have. Many of these serveprimarily as third-party
consultants. Many enterprisesoftwarecompanies, such as SAP and Oracle,
employ their own consultants for services related to their own products.
Among the corporations listed below, the number of consultants listed is less
than their total number of employees. Note: Not all employees of these firms
are consultants and firms with less than 10,000 employees arenot included.
ITservices firmTech Mahindra on Tuesday announced completion of Mahindra
Satyam's merger with itself to create nation's fifth largestsoftwareservices
company with a turnover of USD 2.7 billion.
The merged entity will be called Tech Mahindra which will aim to almost double
the turnover to USD 5 billion by 2015 with focus on telecom, manufacturing, BFSI
among others. Anand Mahindra will be the chairman of the combined entity.
Today we have fulfilled the commitment made in 2009, when weacquired
Satyam, to jointly become
13. I&II(YOURBRANCHNAME)
one-of-the largest, diversified players leveraging technology for business
solutions, Mahindra said in a statement.
"Over the past4 years we worked through the statutory and legal issues, our
teams worked closely on the ground to integrate processes, eliminate overlaps,
leverage best practices and deliver enhanced value to all our shareholders," Tech
Mahindra Executive Vice Chairman Vineet Nayyar said at a press conferencehere.
The USD 16.2 billion Mahindra Group had in 2009 taken over SatyamComputers
after a multi-billion dollar scamby its founding chairman B Ramalinga Raju was
unearthed.
Boards of Tech Mahindra and Mahindra Satyam approved the merger on March
21, 2012. After an approvalfromthe Mumbai High Court, the merger had been
awaiting clearances fromAndhra Pradesh High Court, which gave nod on June 11,
2013.
Nayyar announced that Milind Kulkarniwill be the CFO of the combined entity.
On the path ahead, Tech Mahindra Managing Director CP Gurnanisaid: "Wewill
continue to focus on telecom and manufacturing. And we strongly believe that by
2015 wewill be a USD 5 billion company."
On being asked about Andhra Pradesh High Court's order to continue
investigations into the alleged fraud by B Ramalinga Raju, Nayyar said: "Thereis
no investigation pending againstthe company. Wewill fully cooperate on the
continuing investigation."
On shareswap, Gurnanisaid the swap will take place on July 5 in the ratio of 8.5
shares of Satyamfor every shareof Tech Mahindra held.
The combined firm, which will have its headquarters in Mumbai, now has an
employee strength of 84,000 serving 540 clients across 46 nations. Ithas 11
14. I&II(YOURBRANCHNAME)
locations in India and 15 overseas for BPO operations and softwaredevelopment.
On combined entity's investment plan, Tech Mahindra Chief Marketing Officer
and Global Head (Business Consulting) THari said it has been investing in
platforms to make it more competitive.
On acquisitions, he said: "We can go for acquisition this year too, but it should
enhance our competitiveness and services potential and at the same time create
a niche service portfolio." Ithas cash & cash equivalent of USD 650 million.
On developing more delivery centres, Hari said the company is already expanding
centres in Vizag, Bhubneswar and Chandigarh. Itis also looking at developing
centres in tier-II cities. Shares of both Tech Mahindra and Mahindra Satyam
closed 1 percent higher on the BSE
15. I&II(YOURBRANCHNAME)
CONCLUSION
In conclusion, Tata Consultancy Services will go down in history as one of the
world’s most
innovative companies that have changed the way people go about their lives.
With
technology comes innovation, and Tata Consultancy Services has proven that it
can be
technologically innovative with all of the great products that we haveseen from
them over the years. Given the companies’ strategies, core competencies,
dynamics
and innovativebreakthroughs, itis no wonder Tata Consultancy Services has
lasted this long, and
will be around for many years to come. Being a technology savvy person, I
believe this is one of the few places where technology truly meets innovation, and
therefore, it makes me wantto be a part of it.
