Thursday, January 15, 2009

Satyam...the truth..the history...

Satyam Computer Serveices Ltd.The name which is much discussed in recent days for one of the biggest scandal in IT industry.Let us talk about the history of Satyam.This company was founded by B.Ramalinga Raju in 1987.This provides IT services spaning various sectors.The history of Satyam is all about rise and rise.In 1991 it was recognized as a public limited company and got its first Fortune 500 client, Deere and Co. The 90s were a time of growth for the company.It debuted on Bombay Stock Exchange with an IPO overscribed 17 times.Then in 1999 Satyam Infoway became the first Indian Internet company listed on Nasdaq( National Association of Securities Dealers Automated Quotations,a computerized data system to provide brokers with price quotations for securities traded over the counter).In 2001 Satyam Listed on the the New York Stock Exchange(the largest stock exchange in the world by dollar value of its listed companies securitie) with trading name SAY.In 2006 Satyam's Revenue exceeded $1 billion.In 2007 Satyam became the official IT services provider for the FIFA World Cups,2010 and 2014.The founder of Satyam,B.Ramalinga Raju named the 'Ernst and Young Enterpreneur of the year'.Satyam was the first Indian IT company to get ITAA certification for Y2K solutions.In the year 2000 Satyam was also declared one of '100 Most Pioneering companies' by World Economic Forum, Davos.This is the first ISO 9001:2000 Company in the world certified by BVQI.In 2005 it acquired a 100% stake in Singapore based Knowledge Dynamix and 75% stake in London based Citisoft Plc.Satyam was a company on the fast track to success and had acquired itseld a name for consulting in the area of strategy richt to implementing IT soultions for customer.This company even won 2008 global award for excellence in corporate governance by World Council for Governance(WCFCG).So this was all about the rise and rise of Satyam.But all of these are History now.Everything That Rises Must Fall sometime.Satyam is not an exception.It was actually an exceptional IT company.But now..
Satyam is plunged into big crisis.B.Ramalinga Raju,the founder of Satyam,resigned as its chairman.Raju admitted to major financial wrong-doings and talked about his last minute efforts to fill the "fictitious assets with real ones" through the failed Maytas acquisition.This started on 16th december 2008 when Satyam cancels plans to buy two builders for $1.6 billion just 12 hours after announcing the deal due to investor pressure. Analysts question the motives of Satyam’s top executives as they hold stakes in Maytas Infra and in Maytas Properties.And in the next day Satyam stocks fall by a third following turn of events as shareholders blamed the company for its total disregard for corporate governance. Chairman B. Ramalinga Raju says the deal was called off due to investor reaction.They called a board meeting on 29th december to consider a proposal for buyback of the company's shares.on 23 december The World Bank barred Satyam from doing business with it for eight years for providing “improper benefits to bank staff” in return for contracts and for lack of documentation on invoices.Satyam shares falled another 14 per cent to their lowest in more than 4½ years.On 26th december Satyam recieved yet another setback as Mangalam Srinivasan, an independent director resigned.More Top officials resigned one after another.The founder's stake kept falling.Share improved somehow due to reports that Tech Mahindra approached Satyam for merger on 6th January 2009.But all hell broke loose with Satyam chairman B Ramalinga Raju’s resignation and confession of fraud. “It was like riding a tiger, not knowing how to get off without being eaten”, said Raju. Sensex tanks 825 points to 9510.15 as investors spooked by Satyam Computer fraud revelation; Satyam stocks fall to Rs 32 a piece from Rs 178.95.
he Indian government installed a new board at Satyam Computer Services Ltd on Sunday as authorities stepped up efforts to limit the damage from a fraud that has become India's biggest corporate scandal.New York-listed Satyam welcomed the reconstitution of the board, saying it would ensure the outsourcer's continued operations, help maintain customer confidence and staff morale, and restore investor trust.Now...
Things have gone from bad to worse..Now this is time to revive.Satyam has to survive for itz more than 50000 employees..for future of of the IT.Government is taking steps to help Satyam.The fact is...this is the worst situation Satyam is in.Things can not get anymore bad.Now this time for some good news.I hope Satyam will survive and will stand up again to re-create the will take time...We have to wait for the dawn after this dark night...


  1. An enlightening blog....We all hope Satyam deals with this situation successfully.

  2. A dazzling blog by a perfect bloke. But today I read from TOI that 'satyam to make profit soon'.I think satyam has given lots of things to this nation.Why we people will not stand beside it in it's bad time..

  3. hey, nice one. Well, I made a satire out of Satyam .Do visit to c it.