Management of Satyam

>Satyam Computers was founded by Mr.

Ramalinga Raju

>It had 40,000 employees

>Its CEO was Mr. A.S. Murthy
Introduction Of Satyam Computers
>Satyam was established in 1987.
>It was the 4
th
fastest growing IT company in
India.
>It had 9 % market share

>Revenue was around 10,000 Crores

What did really happen in Satyam
> Ramalinga Raju started losing his attention
from the company
>The two sons of Raju were investing in the real
estate business and their real estate business
was not in good shape. So, Raju started using
the manpower and other resources for the
Satyam Company for the welfare of his sons
real estate business



What happened?
That the actual number of employees was 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
[16]
.


What happened?

>Ramalinga Raju had showed false employees in
his company Satyam computers

>And Ramalinga Raju was withdrawing salaries
of those false employees which really did not
exist in the company that were 53,000 as
shown in accounts but really were only 40,000
eployees
Continued
>The scam came into light in January 2009
>The founder of Satyam was arrested two days after he
admitted to falsifying the firms accounts.
>Ramalinga Raju was charged with several offences,
including criminal conspiracy, breach of trust, and
forgery.
>Satyams shares fell to 11.50 rupees on 10 January 2009,
their lowest level since March 1998, compared to a
high of 544 rupees in 2008
[13]
. In New York Stock
Exchange Satyam shares peaked in 2008 at US$ 29.10;
by March 2009 they were trading around US $1.80.

Later after the scam
New CEO and special advisors
On 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

Acquisition by Mahindra Group

>On 13th April 2009, via a formal public auction
process, a 46% stake in Satyam was purchased
by Mahindra & Mahindra owned company
Tech Mahindra