2. • IT IS MY PLEASURE TO BE INDEBTED TO VARIOUS
PEOPLE WHO DIRECTLY OR INDIRECTLY
CONTRIBUTED IN THE DEVELOPMENT OF THIS
WORK AND WHO INFLUENCED MY THINKING,
BEHAVIOUR, AND ACTS DURING THE COURSE OF
STUDY.
• I AM THANKFUL TO MRS. GUNJAN AND MRS. DAISY
FOR HER SUPPORT, COOPERATION, AND
MOTIVATION PROVIDED TO ME DURING THE
TRAINING FOR CONSTANT INSPIRATION, PRESENCE
AND BLESSINGS.
• LASTLY, I WOULD LIKE TO THANK THE ALMIGHTY
AND MY PARENTS FOR THEIR MORAL SUPPORT AND
MY FRIENDS WITH WHOM I SHARED MY DAY-TO-DAY
EXPERIENCE AND RECIVED LOTS OF SUGGESTIONS
THAT IMPROVED MY QUALITY OF WORK.
5. COMPANY BACKGROUND
FOUNDER- B RAMALINGA RAJU
ESTABLISED- 24 JUNE 1987
SATYAM MEANS “TRUTH”
CEO – MR.RAM MYNAMPATI
CFO – MR.VALDAMANI SRINIVAS
HEADQUARTER - HYDERABAD
1ST INTERNET SERVICE PROVIDER
SHAREHOLDERS- MORE THAN 6 LAKH
PARTNERS
* 690 GLOBAL CUSTOMERS
* 185 FORTUNE
* 500 CORPORATIONS
EMPLOYEE STRENGTH – 52865
6. 1) BANGALORE
2) BASINGSTOKE
3) BEIJING
4) BHUBNESWAR
5) BUDAPEST
6) CALIFORNIA
7) CHENNAI
8) CHICAGO
9) DALIAN
10) GEORGIA
11) GURGAO
12) HARTFORD
13) HYDERABAD
14) KUALA
15) LUMPUR
16) MELBOURNE
17) MUMBAI
18) MUNICH
19) MISSISSAUGA
20) NEW JERSEY
21) ONTARIO
22) PUNE
23) SAO PAULO
24) SHANGHAI
25) SINGAPORE
26) SYDNEY
27) TOKYO
28) WIESBADEN
7. The company was listed with NEW YORK STOCK
EXCHANGE,NATIONAL STOCK EXCHANGE , and the
MUMBAI STOCK EXCHANGE. In June 2009,the
company unveiled its new brand identity
“MAHINDRA SATYAM”
8. ACHIVEMENTS
• Satyam was the 2008 winner of the coveted Golden Peacock
Award for Corporate Governance under Risk Management and
Compliance Issues
• SAP Pinnacle Award 2008 under "Service – Ecosystem Expansion
(Growth)" category, awarded by SAP
• Partner Innovation Award for Anti-Money Laundering (AML)
solution. Awarded by Pegasystems
• Entrepreneur of the Year Award 2007 for Ramalinga Raju ,
Satyam's founder and chairman- awarded by Ernst & Young (E&Y)
9. • Satyam's internal audit team was awarded the recognition of
commitment (RoC) award from The Institute of Internal Auditors,
USA.
• Citizenship Partner of the Year Award, 2007- awarded by Microsoft.
• Vision, Impact, Progress (VIP) Award, 2007- Computer Associates
• Second-Best Employer in India –awarded by Hewitt India
• Competitive Strategy Leadership Award for Offshore Testing
Market- awarded by Frost & Sullivan
• Asian MAKE (Most Admired Knowledge Enterprise) Award-
awarded by Teleos, in association with KNOW Network
10. • Indian MAKE (Most Admired Knowledge Enterprise) Award-
awarded by Teleos, in association with KNOW Network
• Award for "Strengthening Customer Relationships- awarded by
ITSMA (IT Services Marketing Association)
• Winner of the First "Partner Innovation- Award-awarded by
Software AG/webMethods
• Ranked # 1 in the ASTD BEST Award- awarded by American
Society for Training and Development (ASTD)
• First Asian company to rank in Training Magazine's Top 125
companies for learning.
11. Who is
B. RAMALINGA RAJU
• Born- 16 september 1954
• He was the founder of satyam computers
• Satyam was establised in the year 1987 after trying
his luck into other business such as construction
and textiles.
• Raju & his team of 20 employees started satyam
that obtained the contracts for IT project ,mostly
from US companies
12. • Satyam then picked up significantly and became a
multinational company with widespred span over many
countries.
• Satyam was ranked as one of the top five IT major
companies in india.
• He resigned from the satyam board on january 7,2009
after admitting that he was cooking books of satyam.
• He confess that there were fake entries of cash reserves
of one billion us dollars in the company balance sheet
• Raju is currently held in hyderabad’s
chanchalguda jail on criminal charges including
fraud, forgery,cheating,embezzlement and
insider trading
15. Jan 07
2009
Dec 28
2008
satyam board
announce the
decision to buy
stake in maytas
infrastructure a
company owned by
the promoter family
of satyam for inr 65
billion
satyam
announces a
board meeting
on 29th says it
consider buy
back to keep
investors trust
world bank
confirms an 8
year ban of
satyam for date
theft and
bribery
sale of pledge
share of
promoters result
in the promoter
stake in satyam
coming down to
less than 5%
satyam calls
of the maytas
deals as a
result of
investors
revolt.
unpaid files
motions against
satyam and
promoters for
inr 55 billion
claiming fraud.
4 board members
resign in wake of
maytas controversy
, market
speculation talks of
hostile take over by
peers
Mr. Ramalinga Raju
resign and
confesses/cites
financial irregularities
in the book of
accounts to the tune
of inr 71.36 billion
Dec 16
2008
Dec 18
2008
Dec 23
2008 Jan 03
2009
Dec 17
2008
Dec 19
2008
16. How did it happened ?
• Floated two others companies for their own
purpose
• Without taking permission of the shareholders
• Failed to repay the loans
• Transfer of money
• Satyam computers were banned
• Sold of shares
• Resignation by Ramalinga.
17. SATYAM SCAM DETAILS
• In mid-december 2008,satyam announced
acquisition of two companies- maytas properties
and maytas infrastructure owned by the family
membes of satyam’s founder and chairman
Ramalinga Raju.
• It planned to acquire 100% and 50% stakes in
maytas property and infra for $1.6B.
• Due to adverse reaction from institutional investors
and the stock markets , the deal was withdrawn
within 12 hours.
18. • Questions were raised on the
corporate governance practices of
satyam with analysts and
investors questioning the
company’s board on the reasons
for giving consent for the
acquisition as it was a related
party transaction
• Afterveledr the deal was aborted
, four of the prominent
independent dirctors resigned the
board of the company.
19. • In early january 2009, raju reveled that the
revenue and profit figure of satyam had been
inflated for past several years. The following
were the inflated figures:
• Inflated cash and bank balance Rs.5040cr
• Non existent accrued interest Rs.376cr
• Undersated liability of Rs.1230cr
• Overstaed debtor position of Rs.490cr
• Inflated staff by 12000(actual were 40000)
• Revenue of Rs.2700cr(actual were Rs.2112cr)
• Operating margin to be 6494cr(actual were 61cr)
