SATYAM company profile

1987: Ramalinga Raju founded Satyam Computer

Service with brother in law DVS Raju
1991: Incorporated as Public Limited Company
1997-2003: period of very high growth
2008: World Bank blacklisted Satyam on the
charges of several illegal/unethical activities
Jan 2009: Mr. Raju confessed the wrong doing in a
letter issued to its board of directors admitting fraud
June 2009: Takeover by Tech Mahindra and renamed
to Mahindra Satyam.
2013: Subsequently merged with Tech Mahindra

Downfall of Satyam

Downfall of Satyam
Company misrepresented its accounts both to its
board, stock exchanges, regulators, investors and all
other stake holders.
World Bank blacklisted Satyam in 2008 on charges of:
Providing improper benefits to its staf
Data Theft
Staf Bribery

A special court under CBI held the founders and its

officials guilty in an accounting scam worth $1.1
billion.
Raju admitted that nearly $1 billion dollar on the
books was fictitious (94% of the cash)

Satyam Scam - Ethical issues

involved
Not following corporate governance
norms
Tampering the financial data
Misleading the shareholders fund
Putting self-interest at the expense
shareholders interest
Increasing competition forced big
corporations like TCS, Infosys and Wipro
to do something beyond their reach