In 1987, B. Ramalinga Raju ("Mr. Raju") formed Satyam in Hyderabad, India with fewer than 20 employees Satyam means "truth" in the ancient Indian language Sanskrit. The company was specialized in information technology; business services, computer software, and is a leading outsourcing company in India. Satyam computer offers consulting and information technology services to various sectors. Satyam immediately experienced success after it issued an initial public offering on the Bombay Stock Exchange in 1991. Satyam was also listed in NEW YORK STOCK EXCHANGE in 2001 & in EURONEXT Amsterdam stock exchange in 2008. Satyam computers converted into public limited company in 1991. The company grew quickly during the 1990s and 2000s as more and more companies around the world looked to India for outsourcing solutions. It eventually became the fourth largest outsourcing company in India. The business community recognized Satyam as a global leader in information technology outsourcing. At the peak of its business, Satyam employed nearly 50,000 employees and operated in 67 countries. 2. Satyams achievements:-
Satyam was as an example of India's growing success. Satyam won numerous awards for innovation, governance, and corporate accountability. Following are the satyams achievements:-
* In June 1991 satyam made 185 clients from first fortune 500 companies * In 1994 satyam made allies with Dun & Brad Street Crop an USA based company * In 2000 satyam was declared one of the 100 most pioneering technology companies by world economic forum * In 2006 satyam Ranked no. 1 in the ASTD Award (American Society for Training and Development) * On April 14, 2008, Satyam won awards from MZ Consult's for being a leader in India in corporate governance and accountability. Satyam's CFO issued a press release noting the award and stating, "These awards recognize this commitment to keeping the market and our investors informed, having our financial information be clearly and easily understood by stakeholders, and complying with increasingly strict regulatory environments." "Additionally, our high rankings show that we are committed to being a responsible corporate citizen that leverages best practices wherever possible."
3. Who is B. Ramalinga Raju?
Ramalinga Raju was born on September 16, 1954 in Andhra Pradesh. He founded Satyam Computers and was its Chairman until January 7, 2009 when he resigned after admitting to commits corporate fraud. Mr. raju have won following awards:-
* In 2007, Ernst & Young awarded Mr. Raju with the Entrepreneur of the Year award. * Mr. raju awarded by Dataquest IT Man of the Year Award in 2000. * Mr. raju also have got Asia Business Leader Award in 2002. * In 2007 He also won Ernst & Young Entrepreneur of the Year which was revoked when accounting fraud in satyam was unraveled. * In September 2008, the World Council for Corporate Governance awarded Mr. raju with the "Global Peacock Award" for global excellence in corporate accountability. Unfortunately, less than five months after winning the Global Peacock Award, Satyam became the centerpiece of a massive accounting fraud.
4. Overview of the scam:-
In early 2009 satyam scam came to light which is the biggest scam in Indian corporate history which rocked the Indian stock market. Mr. Raju of satyam group manipulated the accounts to a disaster which he admitted later. Financial scandal to the tune of Rs 7800 crore in Satyam took the world by surprise, leaving the investors and the clients of Satyam in lurch. The most alarming aspect of the scam was that the company's financial records have been fudged for the “LAST SEVERAL YEARS”. The books of accounts of the company for the past several years that had been audited by the internationally reputed firm of Auditors, PRICE-WATER-HOUSE-COOPERS were fake. Balance...