SATYAM COMPUTER SCAM

Satyam Computer Services Ltd. (NYSE: "SAY") is a leading global consulting and IT services company, offering a wide array of solutions customized for a range of key verticals and horizontals. From strategy consulting right through to implementing IT solutions for customers, Satyam straddles the entire IT space. It has excellent domain competencies in verticals such as Automotive, Banking & Financial Service, Insurance & Healthcare, Manufacturing, Telecom-Infrastructure-MediaEntertainment-Semiconductors (TIMES). As a diverse end-to-end IT solutions provider, Satyam offers a range of expertise aimed at helping customers reengineer and re-invent their businesses to compete successfully in an everchanging marketplace. Satyam's network spans 57* countries, across 6 continents. Nearly 42,500* dedicated and highly skilled IT professionals, work in development centers in India, the USA, the UK, the UAE, Canada, Hungary, Singapore, Malaysia, China, Japan and Australia* and serve over 570* global companies, including over 165* Fortune 500 corporations. We have strategic technology and marketing alliances with over 90* top-notch companies that help us provide end-to-end services to our customers. Satyam's need-driven deployment of domain and technology expertise brings to customers a range of solutions and products that enhance performance and competitiveness. Our unique RightSourcingTM delivery model allows us to leverage local competencies to offer global competitiveness to our customers. Our consulting and IT solutions have resulted in technology-intensive transformations that have met the most stringent of international quality standards. We have developed a unique quality hallmark, called eSCMSM (eSourcing Capability Model), for IT Enabled Services (ITES), in collaboration with Carnegie Mellon University and Accenture. We follow a specially developed Business Continuity Model (BCM), which allows us to continue mission critical operations of our customers, even in the most challenging of times. SM eSCM is a Service Mark of Carnegie Mellon University

* Figures as per quarter ended June 30, 2007 SATYAM Recruitment pattern: 1. Written exam 2. Group discussion 3. HR and Technical interview Eligibility criteria: X: 65% (aggregate) XLL: 65%(aggregate) BE: 68% (aggregate) Well coming to the point I would like to tell you about the pattern. Actually it is a 30 min test and there are 15 questions. The most important thing is time management. Questions are very easy. I did not remember the questions 1: Aptitude test:CLOCKS TRAINS TIME AND WORK SI AND CI PYRAMID PROBLEM NO SERIES, ODD MAN OUT PROBLEM BASED ON CRICKET PROFIT AND LOSS 2: Group discussion Satyam, a SEI-CMM Level 5 company, offers a range of expertise in the areas of Information Technology Software Development Services, Systems Integration, ERP Solutions, Product Development, Internet access & hosting services, Electronic Commerce and Consulting. Satyam has nearly 6,000 IT professionals, who operate out of its state-of-the-art software development centers located in India, the USA, Japan, Singapore and the UK. These Centers work as an extended enterprise (IT partner) for over 150 Fortune 500 and multinational clients worldwide. Satyam, a multifaceted, totally integrated IT solutions provider is engaged in application development and maintenance, systems integration, datamarts, conversion and migration, Euro currency and engineering services (CADCAMCAE). It specializes in customized IT solutions for industries in the areas of Manufacturing,

Financial services, Insurance, Transportation, Telecom, Healthcare and Power. The company also offers Network and network-enabled services in India. It provides Internet access & hosting services, Intranet, e-mail, EDI, store & forward, and online information services.

Satyam Chief Admits Huge Fraud

Adeel Halim/Bloomberg News Ramalinga Raju, chairman of Satyam Computer Services, resigned Wednesday after disclosing he had systematically falsified accounts of the giant outsourcing company.
Top of Form

Satyam Chief Adm By HEATHER TIM nytimes.com 907

http://w w w .nytim default

JAN 08 2009

The New York Tim

Bottom of Form

NEW DELHI Satyam Computer Services, a leading Indian outsourcing company that serves more than a third of the Fortune 500 companies, significantly inflated its earnings and assets for years, the chairman and co-founder said Wednesday, roiling Indian stock markets and throwing the industry into turmoil.

Floyd Norris: A Corporate Hero Admits Fraud (January 7, 2009) Company Statement

The chairman, Ramalinga Raju, resigned after revealing that he had systematically falsified accounts as the company expanded from a handful of employees into a back-office giant with a work force of 53,000 and operations in 66 countries. Mr. Raju said Wednesday that 50.4 billion rupees, or $1.04 billion, of the 53.6 billion rupees in cash and bank loans the company listed as assets for its second quarter, which ended in September, were nonexistent. Revenue for the quarter was 20 percent lower than the 27 billion rupees reported, and the companys operating margin was a fraction of what it declared, he said Wednesday in a letter to directors that was distributed by the Bombay Stock Exchange. Satyam serves as the back office for some of the largest banks, manufacturers, health care and media companies in the world, handling everything from computer systems to customer service. Clients have included General Electric, General Motors, Nestl and the United States government. In some cases, Satyam is even responsible for clients finances and accounting. The revelations could cause a major shake-up in Indias enormous outsourcing industry, analysts said, and may force many large companies to investigate and perhaps revamp their back offices. This development is going to have a major impact on Satyams business with its clients, said analysts with Religare Hichens Harrison on Wednesday. In the short term we will see lot of Satyams clients migrating to competition like Infosys, TCS and Wipro, they said. Satyam is the fourth-largest outsourcing firm after the three named. In the four-and-a-half page letter distributed by the Bombay stock exchange, Mr. Raju described a small discrepancy that grew beyond his control. What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years. It has attained unmanageable proportions as the size of company operations grew, he wrote. It was like riding a tiger, not knowing how to get off without being eaten. Mr. Raju said he had tried and failed to bridge the gap, including an effort in December to buy two construction firms in which the companys founders held stakes. Speaking of a deep regret and a tremendous burden, Mr. Raju said that neither he nor the co-founder and managing director, B. Rama Raju, had taken one rupee/dollar from the company. He said the board had no knowledge of the situation, nor did his or the managing directors families. The size and scope of the fraud raises questions about regulatory oversight in India and beyond. In addition to India, Satyam has been listed on the New York Stock Exchange since 2001, and on Euronext since January of 2008. The company has been audited by PricewaterhouseCoopers since its listing on the New York Stock exchange. Satyam has been under close scrutiny in recent months, after an October report that the company had been banned from World Bank contracts for installing spy software on some World Bank computers. Satyam denied the accusation but in December, the World Bank confirmed without elaboration on the cause that Satyam had been banned. Also in December, Satyams investors revolted after the company proposed buying two firms with ties to Mr. Rajus sons. On Dec. 30, analysts with Forrester Research warned that corporations that rely on Satyam might ultimately need to stop doing business with the company. Firms should take the initial steps of reviewing the exit clauses in their current Satyam contracts, in case management or direction of the company changed, Forrester said.

The scandal raised questions over accounting standards in India as a whole, as observers asked whether similar problems might lie buried elsewhere. The risk premium for Indian companies will rise in investors eyes, said Nilesh Jasani, India strategist at Credit Suisse. R. K. Gupta, managing director at Taurus Asset Management in New Delhi, told Reuters: If a companys chairman himself says they built fictitious assets, who do you believe here? The fraud has put a question mark on the entire corporate governance system in India, he said. News of the scandal quickly compared with the collapse of Enron sent jitters through the Indian stock market, and the benchmark Sensex index fell more than 5 percent. Shares in Satyam fell more than 70 percent. Just a few months ago, Mr. Raju was trying to persuade investors that the company was sound. In October, he surprised analysts with better-than-expected results, saying he was pleased that the company had achieved this in a challenging global macroeconomic environment, and amidst the volatile currency scenario that became reality. But by late December, it seems he had little support from the board or investors, and four of the companys directors resigned in recent weeks. Satyam recently retained Merrill Lynch for strategic advice, a move that is generally a precursor to a sale. Mr. Raju said in his statement that he sincerely apologized to shareholders and employees and asked them to stand by the company. I am now prepared to subject myself to the laws of the land and face consequences thereof, he said. New Delhi/Hyderabad: The Serious Fraud Investigation Office will probe also Maytas infrastructure as part of the Satyam financial scam probe. Corporate affairs minister P C Gupta said on Monday evening that initial investigations suggest a clear nexus between Satyam, Maytas properties and Maytas infrastructure Earlier, the Andhra High Court dismissed Ramalinga Raju's revision petition against his police custody. But SEBI still did not get to question Raju on Monday as a court order on the body's petition to question him was postponed till January 22. Meanwhile the CID is questioning the Raju brothers and former Satyam CFO Vadlamani Srinivas . They are also looking into their e-mails and phone records over the last one month. Meanwhile, Andhra chief minister Y S R Reddy reiterated his government did not flout any rule in awarding the Hyderabad metro rail project to Maytas. But how deep and how wide is the rot inside India's fourth largest software company? Sources tell CNN-IBN the company is facing serious money crunch, and needs Rs 1,110 crore to tide over the crisis and Rs 500 crore to pay the January salary to employees. Meanwhile a search is also on for a new CEO for the embattled IT firm. Network-18 learns that the board is looking at a 10-day time period to pick someone to head the company. Over 40 applications have come in so far. There is now also a question mark on the number of employees Satyam has. It is reported that Satyam has 53,000 employees. How they did it Investigators are now reportedly coming across evidence of insider trading by the promoters even before the scandal broke.

The big takeaway from the Registrar of Companies report is that the top management of Satyam - the directors and senior officials - sold shares ahead of the Big Bang revelation by Raju. The reports say Satyam books have been overstated by Rs 5,000 to Rs 6,000 crore, leading to an inflated stock price that helped the top management make money. Who sold what? Raju has claimed that no one else in the company was privy to the fudging of accounts. But exclusive information with CNN-IBN suggests insider trading. BSE figures show a number of senior people in the company, including Raju and CFO Vadlamani were reportedly selling Satyam's shares over the last 22 quarters. In June 2001, Raju had nearly 23 per cent shares. By December that year, his share was down to 22.4 per cent. In September 2002, it fell to 21.6 per cent which fell a year later to just over 19 per cent. In 2004, Raju's holding was 16 per cent which fell to 14 per cent in 2005, 11 per cent in 2006. In 2007 it was in single digit. By September 2008 Raju's share was just 8.27 per cent. BSE figure also show Vadlamani sold 92,538 shares while the then CEO Ram Mynampati sold 700,000 shares plus 2,50,000 ADRs. Apart from these, other senior officials also reportedly sold large number of shares. Sources say they include one Kiran Cavale who reportedly sold 400,000 shares and 10,000 ADRs and one Rajan Nagarajan who reportedly sold 430,000 shares and 70,000 ADRs.

Five Steps to Avoiding Office Supply Scams

Businesses, churches, and fraternal and charitable organizations are losing millions of dollars to bogus office supply firms. Any organization that lacks adequate purchasing controls can become a victim of an office supply scam. The Federal Trade Commission suggests a few simple precautions to protect organizations from paying for goods and services they didn't order, from labels to light bulbs, toner to toilet paper. We've also attached a tip sheet Inter-Office Memo: Don't Get Bilked by an Office Supply Scam that you can adapt to your organization and distribute to staff.
1. Know your rights.

If you receive supplies or bills for services you didn't order, don't pay. Don't return the unordered merchandise, either. Treat any unordered merchandise you receive as a gift. It's illegal for a seller to send you bills or dunning notices for merchandise you didn't order or ask you to send back the merchandise even if the seller offers to pay the shipping costs. What's more, if the seller sends you items that are different from your order in brand, type, quantity, size, or quality and hasn't gotten your approval first you may treat the substitutions as unordered merchandise. Treat unordered services the same way. At the same time, you should consider the possibility that the seller has made an honest mistake. The FTC's Telemarketing Sales Rule offers other protections in business-to-business sales of non-durable office or cleaning supplies and most sales of goods or services to individuals, groups or associations. According to the Rule, telemarketers must tell you it's a sales call and who's doing the selling before they make their pitch. And before you pay, they must tell you the total cost of the products or services they're offering, any restrictions on getting or using them,

and whether a sale is final or non-refundable. In addition, it's against the law for telemarketers to misrepresent any information about the goods or services they're offering.
2. Assign designated buyers and document your purchases.

Designate certain employees as buyers. For each order, the designated buyer should issue a purchase order to the supplier that has an authorized signature and a purchase order number. The purchase order can be electronic or written. The order form should tell the supplier to put the purchase order number on the invoice and bill of lading. The buyer also should send a copy of every purchase order to the accounts payable department, and keep blank order forms secure.
3. Check all documentation before you pay the bills.

When merchandise arrives, the receiving employee should verify that the merchandise matches the shipper's bill of lading and your purchase order. Pay special attention to brands and quantity, and refuse any merchandise that doesn't match up or isn't suitable for your equipment. If everything is in order, the receiving employee should send a copy of the bill of lading to the accounts payable department. Reconcile bills for services the same way. That is, don't pay any supplier unless the invoice has the correct purchase order number, and the information on the invoice matches the purchase order and the bill of lading.
4. Train the staff.

Train all staff in how to respond to telemarketers. Advise employees who are not authorized to order supplies and services to say, "I'm not authorized to place orders. If you want to sell us something, you must speak to ______________ and get a purchase order." Establish a team that includes the employees who buy and receive merchandise or services, and those who pay the bills, and develop some standard operating "buying procedures." For example, buy only from people you know and trust. Be skeptical of "cold" or unsolicited calls and practice saying "no" to high pressure sales tactics. Legitimate companies don't use pressure to force a snap decision. Finally, consider asking new suppliers to send a catalog first.
5. Report fraud.

Report office supply scams to the FTC, or your state Attorney General, local consumer protection office or Better Business Bureau. In addition, consider sharing your experiences with other businesses in your community to help them avoid similar rip-offs.

New Tools Help Seniors Avoid Scam

WASHINGTON, Oct. 18, 2011 /PRNewswire via COMTEX/ -- Seniors, Professionals, and Caregivers Can Learn Tips to Protect Vulnerable Older Adults A new toolkit from the National Council on Aging (NCOA), produced in partnership with the Women's Institute for a Secure Retirement (WISER), and the Bank of America Charitable Foundation--Savvy Savings Seniors: Steps to Avoid Scams--is helping to educate older adults about how to protect themselves from financial abuse and scams. Financial fraud is one of the most common forms of elder abuse, and also one of the most underreported. According to USBoomers.com, older adults represent "12 percent of the U.S. population, but are 35 percent of all fraud victims." Scams and swindles deprive older adults of

their hard-earned assets and retirement savings, and can leave them feeling confused, fearful, and ashamed. "We must acknowledge that helping to protect seniors from scams is a vital component to ensuring their safety and financial independence," said Sandra Nathan, senior vice president of economic security at NCOA. "This toolkit helps older adults identify the common forms of financial fraud, and take action to protect their hard-earned resources." The toolkit is the second in the Savvy Saving Seniors financial education series, following the release of a guide on money management skills earlier this year. In addition to offering typical scam scenarios, the toolkit includes step-by-step instructions for professionals to facilitate a workshop with older clients, and a list of signs for caregivers and family members to look for when concerned about their loved one. "All seniors, but especially older women -- the prime targets of financial scams, need the very best information to protect their income and assets and avoid financial exploitation," said Cindy Hounsell, president of WISER. The Savvy Saving Seniors toolkits are part of a larger initiative between NCOA and the Bank of America Charitable Foundation to provide one-on-one financial assistance to over 1,200 older adults experiencing economic distress over the next year. "Everyone can benefit from financial education--but it's especially important for vulnerable populations, such as seniors, who may have little income and resources," said Kerry Sullivan, president of the Bank of America Charitable Foundation. "We hope that this toolkit enables older adults to acquire the knowledge and skills they need to avoid scams and remain in control of their income and assets." To participate in a free webinar on Oct. 24th on how to use the toolkit, click here. For additional information on this toolkit and how to get help, please click here. About NCOA The National Council on Aging is a nonprofit service and advocacy organization headquartered in Washington, DC. NCOA's mission is to improve the lives of millions of older adults, especially those who are vulnerable and disadvantaged. NCOA is a national voice for older Americans and the community organizations that serve them. It brings together nonprofit organizations, businesses, and government to develop creative solutions that improve the lives of all older adults. NCOA works with thousands of organizations across the country to help seniors find jobs and benefits, improve their health, live independently, and remain active in their communities. www.NCOA.org | www.facebook.com/NCOAging | www.twitter.com/NCOAging About WISERThe Women's Institute for a Secure Retirement is a nonprofit organization established in 1996 dedicated to the education and advocacy that will improve the long-term financial quality of life for women. As the only organization to focus exclusively on the unique financial challenges that women face, WISER supports women's opportunities to secure adequate retirement income through research, workshops, and partnerships. It creates consumer publication that explain in easy-to-understand language the complex issues surrounding Social Security, divorce, pay equity, pensions, savings and investments, banking, home-ownership, long-term care and disability insurance. WISER also operates the National Education and Resource Center on Women and Retirement planning. www.wiserwomen.org About Bank of America Corporate PhilanthropyBuilding on a long-standing tradition of investing in the communities it serves, Bank of America is delivering on a 10-year goal to donate $2 billion to nonprofit organizations engaged in improving the health and vitality of their

neighborhoods. Funded by Bank of America, the Bank of America Charitable Foundation gave more than $200 million in 2010, making the bank one of the largest corporate cash donors in the United States. As a global company doing business in more than 100 countries, Bank of America approaches investing through a national strategy under which it works with local leaders to identify and meet the most pressing needs of individual communities. Reaffirming a commitment to develop and sustain a culture of service, bank associate volunteers contributed more than one million hours in 2010 to enhance the quality of life in their communities worldwide. For more information about Bank of America Corporate Philanthropy, please visit www.bankofamerica.com/foundation .