Under the Guidance of:                                       Submitted by:

Dr. Sushil Sharma                                                 Chetan Bansal    (60)    
Miss Nisha                                                             Sonu   Yadav      (61)      .   
                                                                                              
                  Suraj Sharma      (62)

University School Of Management, KUK

 IT Industry
 Information  technology  (IT),  as  defined  by  the 
Information  Technology  Association  of  America  (ITAA), 
is  "the  study,  design,  development,  implementation, 
support  or  management  of  computer-based  information 
systems, particularly software applications and computer 
hardware.“ 
 Information  Technology  is  one  of  the  most  important 
industries in the Indian economy. The IT industry of India 
has registered huge growth in recent years.
 India's  IT  industry  grew  from  150  million  US  Dollars  in 
1990-1991  to  a  whopping  50  billion  US  Dollars  in  2006-
2007.
 In  the  last  ten  years  the  Information  Technology 
industry in India has grown at an average annual rate 
of 30%. 
 In  1970,  high  import  duties  had  forced  IBM  to  leave 
India.  However,  after  the  early  nineties,  many  multi 
national IT companies, including IBM, have set up their 
operations in India.
 During  the  ten  year  period  1992-2002,  the  Indian 
software  industry  grew  at  double  the  rate  as  the  US 
software industry. Deregulation policies adopted by the 
Government  of  India  have  led  to  substantial  domestic 
investment and inflow of foreign capital to this industry.
SATYAM
 Set up in the year 1987 to provide    First IT Company in the World 
services in IT sector  Certified under ISO9001:2000 
 India’s 4th biggest software    Ranked Among India’s Top 10 
company in India Best Employers, 2004 and 2003 
  Top 13 Best-Managed 
 It is listed in BSE, NSE, NYSE  Companies in India 
and Euronext (Amsterdam).    Winner, Corporate Citizen I 
award for Corporate Social 
 BSE IPO oversubscribed 17  Responsibility 
times when made public in 1991   SAP Pinnacle Award 2008  
 The company employs 53,000 IT    Satyam Wins golden peacock 
award for excellence in Corporate 
professionals across  Governance on Global level for 2nd  
development centers in 6  time
continents   United Kingdom Trade and 
Investment India Business Award 
for Corporate Social 
Responsibility
 The company was promoted by 2 brothers B Rama
Raju and B Ramalinga Raju.
 On 26th August, 1991 it was converted into a
Public Limited Company and went for PUBLIC
ISSUE in 1992.
 Satyam headquater is situated in Hyderabad.
 During the year 1996 company promoted 4
subsidiaries:
 – Satyam Renaissance Consulting Ltd.
 – Satyam Enterprise Solutions Pvt. Ltd.
 – Satyam Infoway Pvt. Ltd (e-commerce) and
 – Satyam Spark Solutions Pvt. Ltd. (software's)
 Providing internet in
India
 In the year 1999, Satyam Infoway Ltd,
became the second largest Internet
services provider in India based on the
number of customers.
 Satyam Infoway (sify) is the first Indian
Internet company listed on NASDAQ.
 The Company launched its shopping
channel as (www.sifymall.com).
 In 2001, The American depositary
shares (ADS) of Satyam Computer
Services on May 16 was listed at .16 $
on the New York Stock Exchange
(NYSE) at a premium of 14.9 per cent
to the offer price.
 Satyam became the world’s first ISO-
9001:2000 certified IT company.
 During 2002, Satyam Computer
Launched operations in China.
 Industry Presence

     Satyam provides services in the following areas:

 Aerospace and Defence 
 Banking, Financial Services &Insurance 
 Energy and Utilities 
 Life Sciences & Healthcare 
 Manufacturing, Chemicals & Automotive 
 Public Services & Education 
 Retail and Consumer Packaged 
 Telecom, Infrastructure, Media and Entertainment & 
Semiconductor 
 Travel and Logistics & Industrial Equipment 
>  Chairman and founder Satyam 
Computers Services Limited
>  MBA from Ohio University
>  IT man of the year award by Data 
Quest in 2002
>  Winner of Ernst & Young 
entrepreneur  of the year award in 
2007
B. Ramalinga Raju
Founder & Chairman, Satyam 
Computers Ltd.

>  He became the Managing Director 
and Chief Executive Officer in 1991
>  Mr. Rama Raju holds a Master of 
Economics degree from Loyola 
College, Chennai and a MBA degree 
from Loredo State University, Texas
>  Before 1997, he was with Maytas 
Infra Limited as one of its Directors 
B. Rama Raju
Promoter & CEO, Satyam Computers 
Ltd.
Satyam Clients

A total of 650+ Clients 
185 of the top fortune 
500 Companies
 Satyam Board Structure
B.Rama Raju Other   B.Ramalinga 
Raju
Promoter &  Independent 
CEO Promoter & 
Directors Chairman

Ram Mynampati
Whole time  Srinivas 
Executive  Vadlamani 
Director Chief Financial 
Officer

Dr/ M.  Prof. 
Srinivasan Mr. Vinod  Prof. M  Mr. T R  Prof. V S 
Krishna G 
K Dham Rammoha Prasad Raju
Palepu n Rao

GTB/Dr.  Sasken Communication/ ISB Dean/

Reddy’s  Former  
Hellsoft /Montalvo  Bharat 
Laboratorie CabinetSecretary 
Systems and Newpath electronics
s /GMR Infra/ GVK Taj
Satyam – Share holding
Pattern

Total Market capitalization of 
Rs. 15,262 Cr 
(As on Dec 16, 2008 )
Maytas Infrastructure
Mr. Teja 
 Raju’s hold 36.64 per cent while  Raju(VC)
institutional holding is 10.92 per cent
 The company had raised Rs 327.45 
crore through IPO.
 It  had a turnover of Rs 1,660 crore and 
net profit of Rs 100 crore in the last 
financial year
 Satyam planned to acquire 51 per cent 
stake for Rs 1, 440 crore or $0.3 billion
 Maytas Properties
B. Rama Raju Jr. 
(VC)

o Raju’s family owns 35% of Maytas properties
o Founded in 2005, it has a land bank of 6,800 acres
o It  has  clearances  for  three  IT  SEZs  based  on  148 
acres
o An  undisclosed  stake  is  held  by  Infinite  India 
Investment  Management,  a  realty  fund  jointly 
promoted  by  JM  Financial  and  US-based  SRM 
Investments, which invested Rs 600 crore in February
 Controversies
 Maytas acquisition
 World Bank
Upaid lawsuit
 Accounting scandal of 2009
So, How did it all begun?
 21 April  26 Jan 
2008 2009

22 Sep 
2006
2008

Satyam receives the Golden 
Peacock Award for excellence 
in Corporate Governance from 
Satyam becomes first  World council
Indian company to 
publish IFRS audited 
Satyam  financials
revenues 
cross $1 
Billion
16 Dec  17 Dec  26 Jan 
2008 2008 2009

Satyam gets board 
approval for  Satyam backs out 
controlling stake in  of Maytas deal 
Maytas Infrastructure  citing investors 
and Maytas properties  protest
as fully owned  Major Clients of 
subsidiary for $1.6B  Satyam express 
(Rs. 8000 Cr.) dissatisfaction.
Contracts worth 
$200 million up for 
grabs

Satyam shares plunge  Board meeting to be 
55 percent in NYSE.  held on Dec 29 for 
BSE share plunges over  proposed buyback of 
30%   shares
 19  20  23  26Jan 
Dec  Dec  Dec  2009

British mobile solution World Bank bans Satyam for 8 

provider Upaid files a years due to inappropriate 
law suit against Satyam payments to staff and inability to 
in a district Court in the provide information sought on 
US over Maytas deal. invoices
May face $1 Billion in
penalties

Centre refers 
Satyam deal 
to Registrar of 
Companies 
(RoC)
 26  28  29  26 Jan 
Dec  Dec  Dec  2009

3 more Independent Directors resign. 
Mendu Rammohan Rao, Krishna G 
Board meet initially  Palepu and Vinod K Dham
scheduled for 29th  
postponed to 10th  
1st  independent  January
director Dr. 
Mangalam  Board announces 
Srinivasan  exploring option  Satyam asks  Rumors in market 
resigns from  for buyback of  DSP to review  about strategic 
Satyam board shares to restore  board structure takeover by IBM, 
investor  Accenture 
Satyam objects  confidence
to world bank  IL&FS sells 44.1 lakh 
statements,  Promoters disclose that shares pledged shares of 
asks to  their entire holding in Satyam promoters in 1 day. 
apologies or 
Satyam pledged with Promoters equity reduced 
face legal action
institutional lenders from 8.6% to aprrox 7%
since 2006
 30  02  03  26 Jan 
Dec  Jan  Jan  2009

Post cancellation  Satyam board confirms 
of deal, Maytas  promoters stake to be 
looks for raising  around 5%. Further 3.2% still 
IL&FS sells  pledged.
$500 million 
further 44.27 Lakh 
through sale of 
pledged shares 
equities and 
taking the tally to 
properties
1.5 crore pledged 
shares

Satyam-Upaid
case hearing over
the Maytas deal in
Texas court on
January 8.
 05  06  26 Jan 
Jan  Jan  2009

Tech Mahindra 
Total pledged shares sold by  (Revenues 3766 Cr.) 
IL&FS reaches 2.5 Cr. in last  offers to merge with 
13 days. Promoters stake  Satyam (Revenues 8473 
Promoters down to 3.6%. Still a further  Cr.)
stake in the 1.7% are pledged
company down
to 4.5% The Night Before 7th  Jan
SEBI considers 
Merill Lynch discovers serious 
proposal to make it 
irregularities in books of 
mandatory for 
accounts and approaches 
promoters and 
regulator SEBI for further 
majority share 
course of action and its inability 
holders to disclosed 
to investigate further. DSP 
pledged shares to 
submits report to SEBI and 
stock exchange
Satyam management late night. 
 07  26 Jan 
Jan  2009

09:45 A.M. ADR’s crash 90% Hunt for Raju brothers  

Satyam Chairman Satyam BSE scrip begin. Amid speculation 
Ramalinga Raju falls 78% over his whereabouts,  
writes the letter to Raju is believed to have 
the company board DSP snaps ties with left for the United States 
satyam. in connection with a 
court case. 
Ram Mynampati
takes over as
interim CEO Satyam stripped
according to Raju’s of Golden Peacock
Auditing firm PWC award
letter
under scanner
NSE removes Satyam from its benchmark index 
Nifty.  It will be replaced by Reliance Capital with 
Govt. instructs RoC effect from January 12. It will also be removed 
to review report from various other indices like CNX 100, S&P 
CNX 500,CNX IT and the CNX Services sector 
index 
 08  09 10 26 Jan 
Jan  Jan  Jan  2009

PwC in major BSE to replace Satyam 

Computer with Sun  Former CFO 
trouble. Stocks
Pharmaceutical in its 
of PwC clients Valdamani Srinivas 
benchmark index 
take a major Sensex with effect from  remanded to judicial 
beating at the January 12. 
custody 
BSE and NSE
CFO Valdamani  Raju brothers arrested by the police 
Srinivas, who is the  on charges of criminal conspiracy, 
financial custodian of  cheating, forgery, misappropriation 
the company resigns of funds and criminal breach of 
trust. 
PwC shot back at Satyam, 
saying in a media statement 
that the auditing was based on  Market Capitalization of satyam falls to 
the audit evidence provided by  Rs. 1,607 Cr from Rs.15,262 Cr. on Dec 
Satyam and in was accordance  16 in 19 trading sessions.
with applicable standards.  
 13  14 15 16 26 Jan 
Jan  Jan  Jan  Jan  2009

Government
hands satyam Maytas stocks 
case to SFIO 23 year old  hit the lower 
employee of  circuit for 7th  
satyam commits  consecutive 
suicide in Chennai trading session

The newly appointed 3 member 
board appoints auditing firm  The government expanded the three-
KPMG and Delloitte to assist it in  member Satyam board to six to include 
cleaning the mess in the scam  S Balakrishnan of Life Insurance 
tainted company’s accounts Corporation, Tarun Das, chief mentor of 
the Confederation of Indian Industry and 
T N Manoharan, former president of the 
Institute of Chartered Accountants of 
India
Why on 7th Jan 2009?
•  DSP Merrill Lynch informed SEBI about
Material irregularities in Accounts on 6th
Jan

•  Minutes of Meeting of 16th

December,2008 were not submitted to
RoC-(This created some doubts)

• Hearing of Upaid- satyam case on 8th Jan

at the US court
 
Fabricated Income
Statements
‘Creative Account
Practice’

•   Details of cash balances with Scheduled banks are not there in 
the  Annual report

• Question  raised  by  Equity  analyst  Kawaljeet  Saluja  -$500  mn 

cash parked in current account
 Understated
Liabilities Fraud Amount
Overstated cash
balances,
Income
receivables
Why and How How ????
Fake FD receipts and
Employee Nos.??

Repeat the
procedure
Parallel Finance
Department ???
Satyam-Maytas Nexus
Contd…..
 Cash raised & siphoned off funds used 
to buy several thousands of acres of 
land across AP through several benami 
accounts 

  Helped Maytas in getting major contract
Some Comments
 If the first fraud is for Rs100, the next time add another 
zero.  It  (accounting  fraud)  grows  exponentially  –  Anil 
Roy, Grant Thornton India

 It  was  like  riding  a  tiger,  not  knowing  how  to  get  off 
without  being  eaten-  Raju  Ramalinga  while  admitting 
the fraud

 On Wikipedia, for the first time, India has been put on 
to the list of largest corporate scandals in the world, all 
thanks to Satyam – a blogger
STOCK CHARTING
 PWC had been auditing satyam’s balance
sheet since year 2000.
 Companies have to keep bank statements
for the current and preceding years at
registered offices. It is suspected that the
files vanished as they would have given
away the fraud.
Wary Investors exit
PwC Clients

 Investors brought shares of 
other companies in the same 
sector
 Out of 100 clients of PwC, most 
companies share fell by 5-15%.
 Risk of Reputation
 Other company bigwigs
 Satyam's  chief  financial  officer  Srinivas 
Vadlamani  has  already  been  arrested.  He  has 
even  admitted  to  signing  on  the  dotted  line  , 
saying  he  never  really  paid  much  attention  to 
the  balance  sheet!  But  could  only  two  or  three 
people  have  managed  to  cook  the  books  for 
years  of  a  company  so  large?.  It  is  quite  likely 
that  some  other  top  managers  in  the  company 
too were in the know of what was happening but 
chose to keep quiet
 RESTRUCTURING
PROCESS
 The government decided to appoint 10
nominee-directors. The new board will
take a decision on a new management
team.

Kiran karnik
Deepak Parekh C Achutan
Former
Former HDFC NASSCOM Former SEBI
Chairmam Chairmam Member
The 3 members of BCG has
been appointed as a
management advisor and is
working to revive satyam.
Satyam board has appointed
GOLDMAN SACHS &
AVENDUS as its Investment
Bankers.
 Companies and government are closely
watching Satyam strategies. They feel that
satyam should stand of its own first, if not
then only other company’s would approach
for a takeover/acquisition of satyam.
 Other IT comany like HCL is also
considering a possibility of the takeover
and keeping a watch on satyam moves.
 But at last the TECH MAHINDRA has take
over the satyam and in june 2009 it’s to
new name “MAHINDRA SATYAM”.
 Challenges ahead
 Client Acquisition and Retention
 Retaining employees
 Productivity
 Resource and Skill Gaps
 Funding
What 
(policies)

Who  How 
(decision) (processes)
 Govt plans Rs 2000-crore
package for Satyam
 The Indian Government has decided to take direct action to  
looking at a salary bailout for the 53,000 Satyam Computer 
Services employees.
 A Rs 2,000 crore package is under consideration to ensure 
that Satyam employees get their salary on time after it the 
new board said that they are looking for funds.
 The government is looking at giving three instalments of Rs 
500  crore  to  Satyam  for  the  next  three  months  and  is 
planning another infusion of about Rs 400 crore.
 IMPACT On INDIA

INC.
Questions have been raised on the balance sheets of
other IT Companies and the role of auditors.
 Investors loosing faith in major IT firms and other
major Corporate due to fraud arisen out of Mr. Raju’s
confession.
 Due to the satyam turbulence, 70 independent
directors of various companies including ZeeNews,
TVS Motors, BHEL etc, had quit from satyam and
resigned from there respective companies.
 SEBI has made mandatory for the promoters of the
companies to disclose details of the shares pledged
by them.
 Satyam’s Market Price Can
Not Be Used For Valuation
Of Satyam
 Asserting  that  only  action  could  determine  the 
sale price for Satyam, Modi said that stock market 
price could not be considered a benchmark in this 
case, as the market was not fully aware about the 
firm’s actual assets and liabilities.
 “Even  the  board  is  not  aware  (about  the  assets 
and  liabilities),  so  the  market  is  working  on  the 
available information. So, I don’t think there could 
be any basis of reserve price,” Modi added.
 No advance tax paid by
Satyam in FY09
 Satyam  Computer  has  not  paid  a  single  rupee 
as advance tax in the first three quarters of the 
current  fiscal,  though  the  IT  company  paid  Rs 
25  cr  as  fringe  benefit  tax  (FBT)  till  December 
15.
 As  payment  of  advance  tax  is  always 
considered  an  indicator  of  profitability  of  a 
company,  Satyam’s  non-payment  of  advance 
tax  could  also  imply  that  trouble  had  been 
brewing for a long time. 
 Raju spends time in jail
reading books, newspapers
 Former  chairman  of  Satyam  Computers,  B 
Ramalinga  Raju  spent  his  fourth  day  in  the 
Chanchalguda  Central  prison  reading  books, 
news magazines and newspapers.
 January  10  and  is  now  spending  most  of  his 
time in the jail by reading books and is keeping 
himself  abreast  with  latest  developments 
through newspapers.
In the News..
 CONCLUSION
 We also wish that the company stands once again
whooping investors not with the false promises but in
accordance with its name that is TRUTHFULNESS.
 Quickly put the issues behind us and ensure continuity of 
our  operations  and  our  services  delivered  to  our 
customers.
 Do  everything  that  we  can  as  an  organisation  to  ensure 
the stakeholders
 Restore  confidence  of  the  customers  employees, 
suppliers and investors by ensuring business continuity.
 BIBLIOGRAPHY
 http://en.wikipedia.org/wiki/Information_technology

 http://www.rediff.com/money/2008/jul/17sd1.htm
 
 http://www.livemint.com/2009/01/07214335/Truth-about-Satyam
 
 http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4
 
 http://www.thehindubusinessline.com/2009/01/14/stories/20090
  

 
 http://www.satyamscam.info/

 http://satyamscam.in/2009/03/govt-to-provide-help-to-cbi-in-s

 http://www.scribd.com/

 http://www.blonnet.com/2009/01/12/stories/20090112511306
 
 http://www.blonnet.com

 MAGAZINE

 NEWS PAPER
 
 Raju Raju sat up on the
wall...
Raju Raju had a great fall...
Balance sheet died...
Shareholders cried...
Raju Raju made a fraud.