4. ByrrajuRamalingaRaju was born on September 16, 1954 in a family of farmers. He did his B. Com from Andhra Loyola College at Vijayawada and subsequently did his MBA from Ohio University, USA. RamalingaRaju had a stint at Harvard too. He attended the Owner / President course at Harvard.
5. He has two brothers and a sister. Raju is married to Nandini. They have two sons, TejaRaju and Rama Raju, who runs the Hyderabad-based Maytas Properties and Maytas Infra and a daughter, Deepti, who is married.
6. After returning to India in 1977, RamalingaRaju moved away from the traditional agriculture business and set up a spinning and weaving mill named Sri Satyam. Thereafter he shifted to the real estate business and started a construction company called Satyam Constructions. In 1987,
7. RamalingaRaju 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.
8. RamalingaRaju have promoted and have been associated with Satyam for well over twenty years now He have seen it grow from few people to 53,000 people, with 185 Fortune 500 companies as customers and operations in 66 countries. Satyam has established an excellent leadership and competency base at all levels.
9. Satyam Maytas Fiasco Satyam Computers had on December 16,2008, announced that it will acquire two groupfirms – Maytas properties and Maytas Infra The BOD of Satyam had approved the founder’s proposal to buy 51 per cent stake in Maytas Infrastructure and 100 % in Maytas Properties.
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11. This is the move that sparked a row over alleged violation of corporate governance laws.
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13. WHY HE FAILED……???? The promoters decided to inflate the revenue and profit figures of Satyam. In the event, the company had a huge hole in its balance So to fill up this gap…….. Company announced Acquisition of 51% stake in Maytas Infra and 100% stake in Maytas Properties on 16th Dec 2008 but The deal was not profitable for investors Investors dumped Satyam’s stock and threatened action against the management. Satyam Computer
14. This was mainly done to hide the irregularities in the accounts of Satyam. It is also said the close association with the political leaders is one of the reasons.
15. WHAT WENT WRONG? Simple manipulation of revenues and earnings To show superior performance • Raising fictitious bills for services that were never rendered. • To increase the Cash & bank balance correspondingly. • Operating profits were artificially boosted from the actual Rs 61 crore to
16. AND HOW….????? Its financial statements for years weretotally false, cooked up and... Never had Rs 5064 crores (US$ 1.05 Billion) shown as cash for several years. Its liability was understated by $ 1.23 Billions The Debtors were overstated by 400 millions plus. The interest accrued and receivable by
17. 7 January 2009 company Chairman RamalingaRaju resigned after notifying board members and the Securities and Exchange Board of India (SEBI) that Satyam's accounts had been falsified
18. 10 January 2009 Company Law Board decided to bar the current board of Satyam from functioning and appoint 10 nominal directors. "The current board has failed to do what they are supposed to do. The credibility of the IT industry should not be allowed to suffer." said Corporate Affairs Minister PremChand Gupta. Chartered accountants regulator ICAI issued show-cause notice to Satyam's auditor PricewaterhouseCoopers (PwC) on the accounts fudging. "We have asked PwC to reply within 21 days," ICAI President Ved Jain said.
19. 11 January 2009 The government nominated noted banker Deepak Parekh, former NASSCOM chief KiranKarnik and former SEBI member C Achuthan to Satyam's board. Merrill Lynch (Now with Bank of America) terminated its engagement with the company. 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. The founder of Satyam was arrested two days after he admitted to falsifying the firm's accounts. RamalingaRaju is charged with several offences, including criminal conspiracy, breach of trust, and forgery.
20. 14 January 2009 Price Waterhouse, the Indian division of PricewaterhouseCoopers, announced that its reliance on potentially false information provided by the management of Satyam may have rendered its audit reports "inaccurate and unreliable"
21. CID told in court that the actual number of employees is only 40,000 and not 53,000 as reported earlier and that Mr. Raju had been allegedly withdrawing INR 20 crore rupees every month for paying these 13,000 non-existent employees 22 January 2009
22. 5 February 2009 the six-member board appointed by the Government of India named A. S. Murthy as the new CEO of the firm with immediate effect. Murthy, an electrical engineer, has been with Satyam since January 1994 and was heading the Global Delivery Section before being appointed as CEO of the company. The two-day-long board meeting also appointed HomiKhusrokhan (formerly with Tata Chemicals and ParthoDatta, a Chartered Accountant as special advisors
23. February Satyam announces Renewed customer confidence; Wins new business of over USD 250 Mn. in last seven weeks Company Law Board Authorizes Satyam to Induct Strategic Investor, Raise Authorized Equity Capital and Make Preferential Allotment of Equity Shares Order passed by the Hon’ble Company Law Board dated 19th of February Satyam Ranks Eighth in Training Top 125
24. March Satyam Wins Corporate University Xchange Awards Satyam submits letter to SEBI regarding bidding process Satyam to Implement SAP at Vijay Dairy & Farm Products (P) Ltd. Satyam Innovation Garners Progressive Manufacturing Award for Rain CII Carbon Satyam Announces Outcome of Board Meeting Satyam Wins Consumer Health World Award for Tele-Ophthalmology Program Satyam Announces Commencement of Process to Select an Investor Satyam receives SEBI approval on bidding process Satyam’s New CEO Assures Singapore “It’s Business As Usual”
25. April Satyam announces approval from the Federal Cartel Office of Germany and in-principle approval from BSE and NSE Satyam receives SEBI approval - Corrigendum SEBI Clarification dated April 21, 2009 SEBI Letter dated April 20, 2009 Satyam receives SEBI approval Tech Mahindra issues Public Announcement of the Offer Euronext Amsterdam approves Satyam’s application to delist ADSs from Euronext Amsterdam
26. Continue… Tech Mahindra and Satyam Discuss Transition Tech Mahindra receives Company Law Board approval Satyam files application to delist ADSs from Euronext Amsterdam Tech Mahindra selected as the Highest Bidder Satyam Completes Bidding Process Satyam Collaborates with Pentaho Corporation to offer ‘on Demand BI Solutions’ Satyam Refines Bidding Process
27. Appointment of Venturbay Nominees to the Board of Directors of Satyam Effective May 27, 2009 Appointment of Venturbay nominees to the board of directors of Satyam Satyam allots shares to Venturbay May
28. June Tech Mahindra and Mahindra Satyam strengthen their boards with executive leadership appointments Satyam Unveils Its New Brand Identity – “Mahindra Satyam” Satyam receives accolades from American Society for Training & Development Satyam initiates Virtual Pool Program to manage surplus staff Satyam Appoints New Leadership in Australia and New Zealand
29. Company Law Board Withdraws Four Government-Appointed Directors from Mahindra Satyam Board Satyam allots shares to Venturbay Mahindra Satyam signs a 5 year multi-million dollar SAP contract with GSK Julay
30. Achievement: Founder and Chairman of Satyam Computer Services Ltd; Chosen as Ernst & Young Entrepreneur of the Year for Services in 1999 RamalingaRaju is one of the pioneers of the Information Technology industry in India. He is the founder and Chairman of Satyam Computer Services Ltd.
31. Dataquest IT Man of the Year in 2000, CNBC's Asian Business Leader – Corporate Citizen of the Year award in 2002 and E&Y Entrepreneur of the Year Award in 2007.
32. Satyam was the 2008 winner of the coveted Golden Peacock Award for Corporate Governance under Risk Management and Compliance Issues, which was stripped from them in the aftermath of the scandal.
34. Thank you for your proper response and support! For further information contact: +91-9427913540 vasant_parakhiya@yahoo.com From : Parakhiya Vasant ssopcon@yahoo.com
