Satyam's Foul Play

[trillionairegate]

The Biggest Scam by Satyam is it failure of management or the foul played by Satyam's management to mislead the investors

[mohitrawat]

does the satyam's foul play also points out fingure over many other bigger organisations !!!
and what is the future of the employees who used to feel secured while working in big organisation ??

[saurabh.jain.mits]

after NSE's announcement BSE should also announce tha remove of satyam from SENSEX and other indexes.

[vaidyanath]

Though Satyam will face certain bad time and the employees may have some tough time, definitly if they continue to put in effort they will get out of the trouble. Also the companies future will depend on the one who would be taking over the company.

[dhvani304]

i dont understan 1 thing abt dis dat
whether Co. wud b delisted or removed 4m compution of indices

[yshah84]

In NYSE Satyam ADS is quoting at 1 cent today...which is the real worth of the stock...I think it will now get mearged with any other IT company...

[zenuljinwala]

The Biggest Scam by Satyam is it failure of management or the foul played by Satyam's management to mislead the investors

its a nations shame we all should put our heads down is disgust

[yshah84]

Satyam, the fourth largest Indian IT company, with an employee strength of around 53,000 people, could have had a better story to tell, had not the promoters indulged into accounting malpractices and financial manipulations.

This fact came to light today, when the Satyam chairman and promoter, Mr. Ramalinga Raju, in his resignation letter to the capital market fraternity, brought to fore the mammoth scale at which the company has been manipulating its financial numbers over past eight years. It attributed all its recent actions as attempts to salvage the company from imminent fate.

[mihir.upadhyay]

Way forward is via merger or takeover by a IT or a PE firm and which can bring in transparency and good corporate governance

[sharmag]

i think that now a severe governance policy for corporate world should be implemented by nasscom

[jagjeevan]

Regarding corporate governance:

I have worked on CG projects before (Clause49 implementations) and I believe the SEBI norms, while not as stringent as the US SoX, are not bad.

It must have taken some serious collusion from PwC to make this possible. Unless there is some strict action against PwC - i dont know if auditors will realize their responsibility in high-billing clients

[sudhir_mgmt]

I think the employees would be absorbed by the other big IT firms.

[deepaksoni]

Satyam Auditors, Price Waterhouse, issues a statement late today..Let’s put it in perspective
Friday, January 9th, 2009
In this unfolding Satyam Saga unleashed by Chairman,Ramalinga Raju’s confession on fudging accounts for years,this evening we had their auditors,Price Waterhouse releasing a statement defending their audit of Satyam ,stating it complied with generally accepted auditing standards in India and that there was appropriate evidence to support their audit

They have also ,under the excuse of client confidentiality,refused to give more details

Come on Price Waterhouse !…what Client !? Satyam !?…legally it is the Shareholders (Satyam has over 2 lakh of them) who have reappointed you at the last AGM as the auditors…you have a fiduciary responsibility to them more than to Satyam…so hiding behind the Coat of Client Confidentiality is clearly ill- advised

It would ofcourse be interesting to see what their ‘appropriate evidence’ is.

But let’s put their role in perspective and in context of the last published Annual Report of FY 2007-8

Relevant Extracts from Satyam’s Annual Report of FY 2007-8

Pages 39 and 40

AUDIT COMMITTEE

The Audit Committee consists of 100 percent independent and non-executive directors.There were four Members….Prof M Rammohan Rao,Chairman,Dr (Mrs) Mangalam Srinivasan,Mr T R Prasad,Prof V S Raju….There were seven committee meetings in 2007-8 an were attended by the CFO,Head of Internal Audit and Statutory Auditors as Invitees.The Committee reviewed the adequacy of the Internal Control Systems and Internal Audit Reports and their compliance thereof.

Page 56

Internal Control Systems and their Adequacy…Part of Managment’s discussion and analysis…Important Points

The Internal Audit,an independent appraisal function to examine and evaluate the adequacy and effectiveness of the Internal Control System,appraises periodically about activities and audit findings to the AUDIT COMMITTEE
Internal Audit ensures that transactions are executed and assets are safegaurded
The AUDIT COMMITTEE was constituted as a sub -committee of the Board of Directors and it consists solely of Independent Directors.The committee also holds discussions with statutory auditors,internal auditors and the Management.It also reviews with the statutory auditors the scope and results of the audit
Compliance with Section 404 of the Sarbanes-Oxley Act 2002
Under revised Corporate Governance standards adopted by the Stock Exchanges a Certification has to be made by the CEO and the CFO of the effectiveness of the Internal Control Systems and that they have disclosed any deficiencies and how they were resolved to the Auditors and the Audit Committee
Page 60

Personnel Costs…Part of Managment’s discussion and analysis…Important Points

Personnel Costs were Rs 5045.54 crs ( 62.01% of Revenues ) for an aggregate employee base of 55360 of which 43279 were technical associates,2690 were non-technical associates and 9391 were onsite technical associates

Page 62

Auditors Report to the Members of Satyam Computer Services Ltd

Point 2 : We conducted our audit in accordance with auditing standards generally accepted in India.Those Standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement….We believe that our audit provides a reasonable basis for our opinion

Point 4 g goes on to give the auditors unqualified opinion that the financial statements that comprise the Balance Sheet,the Profit and Loss Account and the Cash Flow as on March 31,2008 ,read with the notes give a True and Fair view inconformity with generally accepted accounting principles in India

The Report was signed on April 21,2008 by Srinivas Talluri,the Hyderabad Partner of the Auditors,Price Waterhouse

Page 63

Annexure to the Auditors’ Report

Point 6 : In our opinion,the company has an internal audit system commensurate with it’s size and nature of its business

Page 64

Annexure to the Auditors’ Report

Point 17 : During our course of the examination of the Books and records of the company,carried out in accordance with the generally accepted auditing practices in India,and according to the information and explanations given to us,we have neither come across any instance of fraud on or by the company,noticed or reported during the year,nor have be been informed of such case by the management

Page 68

Balance Sheet

As at March 31,2008 the Total Assets are Rs 7381.31 crs of which Net Current Assets are a whopping 80% at Rs 5916.74 crs…of which yet again Cash and Bank Balances are Rs 4461.68 crs or 60% of Total Assets

Page 73

Schedule 8 Cash and Bank Balances

Of the total Cash and Bank Balances of Rs 4461.68 crs,Current Account Balances with Scheduled Banks is Rs 956.29 crs while Deposits with them are significant at Rs 3317.70 crs.Balances with Non Scheduled Banks in Current Accounts are just Rs 179.78 crs

Pages 80 and 81

Notes to Accounts

Note 15 g lists out 43 banks around the world which are categorised as Non scheduled Banks and which hold Rs 179.78 crs in Current Accounts

SOME OBSERVATIONS

NO BREAKUP OF AMOUNTS AND NEITHER THE LIST OF SCHEDULED BANKS HAS BEEN PROVIDED FOR THE BANK DEPOSIT AMOUNTS OF RS 3317.70 CRS

In light of Ramalinga Raju’s confession yesterday that he has been cooking the Satyam books for years and that there is a Cash Hole of Rs 5040 crs as of September 30,2008,the Critical Question is that as of March 31,2008,were there at all any Genuine Deposits to the tune of Rs 3317.80 crs with Scheduled Banks as stated in the Accounts forming part of Annual Report and which has been audited by Price Waterhouse….If there were ,then this would qualify as ‘Appropriate evidence’ to salvage the auditors to some extent atleast even if such deposits had been managed to be got in by Ramalinga Raju to whitewash his fraud at year end and to throw the wool over the auditor’s eyes…or were Bank Deposit Documents forged ?…Time and Investigation will reveal what really happened

If you peruse the above extracts you will find it really hard,like I do,to believe that the statutory auditors followed generally accepted auditing standards and practises and accounting principles…If they had they would have discovered the Asset Hole….It is equally hard to believe that in performing their roles,neither the Internal Auditors,nor the Statutory Auditors ,nor the Audit Committee of the four Independent and Non Executive Directors had any clue as to what Ramalinga Raju was upto !…unless ofcourse they never perfomed their fiduciary roles !..or never knew how to !…for all you know the presence of the CFO and Head of Internal Audit as Invitees to the Meetings of the Audit Committee may have actually compromised the Independent functioning of the Committee,members of which should have been leading but were instead being led !

Sooner or Later the Statutory auditors, Price Waterhouse will have to disclose the nature of their ‘Appropriate Evidence’ to support their Audit of Satyam and how they cannot be blamed for any recklessness in the Audit for not exposing the Asset Hole of Rs 7000 crs as confessed by Ramalinga Raju yesterday ….Today the Interim CEO,Ram Mynampati, was cleary squirming when facing the Media…but he did confirm that the Cash situation is not very encouraging…so Satyam just does not have any significant monies that it’s accounts show it must have !

As far as suspecting that Satyam does not actually have 50000 + Employees on it’s rolls as it claims…well,actually the Personnel Cost Figure of Rs 5045.54 crs in FY 2007-8 for 55360 employees gives a credible annual average cost per employee of Rs 9.11 lakhs…The question to ask is if any of these 55360 employees do not really exist and are just ‘Benami’…A Cross Check with Gratuity and Pension Records with Insurance Companies and Government Records will confirm bonafides

The unfolding of the Satyam Saga continues…Media has been reporting right through the Day that there is no trace of either the Promoter Chairman, Ramalinga Raju or the CFO,V Srinivas,both of whom have resigned….A lawyer representing Ramalinga Raju claims his client is not absconding and is very much in Hyderabad.

Source: Blog

[mah_22]

satyam mismanagement has come as shock to indian corporate world. the indian corporate world has lost trust bcoz of this issue. it recently won golden peacock award for best corporate governance for 2008.but the practices it adopted nd the accounting fraud in the company came as shock to investors.

[trillionairegate]

The letter written by Mr. Ramalinga Raju Former Chairman of Satyam to his Board of Directors of Fraudulented affairs in Company and misleading the world of Investors by inflated Balance sheet

[AV0211]

I believe satyam will come out of this bad time....
Satyam is leading Indian IT company...
Support Satyam and their associate... Dont believe in Rumours.. and Media Speculation....

[priyanshu007]

but because of this kind of thing done by ramalinga raju definitely create problems for the employees who will pay for this even they are innocent...
it will take time & satyam will make his come back but till time is very for those employees...

[sameer goyal]

any game like this on such a mammoth scale can't be act of one single person. when things go wrong one person sacrifice himself to save others. thats is wat "raju" is doing i think so. M&A market has now started speculating probable satyam marriage but it will take sum deal of time because satyam lost all its goodwill and repo in the market. rumuors says Mayatas' investment in real property will save satyam to some extend.

[noronharyan144]

India is a country with rich promoters than rich companies.

[prasadgoa]

SEBI's intercention will be good or takeover by a giant IT firm will be better...
... which will bring the transperancy

[tiwarimanjit]

HOW SATYAM FELL


JANUARY 7, 2009 | Rewind to Wednesday, when Satyam's chairman Ramalinga Raju quit after confessing to cooking his company's books for years. By the time markets closed that afternoon, Satyam had plunged 78%. This will end Satyam's saga of dodgy deals, political hobnobbing and shabby treatment of shareholders for over 10 years. Yet throughout, state politicians supported the company, state-owned finance companies turned a blind eye to its activities and a spineless board nodded off on everything. Satyam was rewarded with great valuations, a place on the Bombay Stock Exchange's Sensex A-list, and awards for entrepreneurial success, management skills and — ho-hum — corporate governance. MAYTAS DEAL | Weeks before he quit, Raju triggered investor fury by trying to use Satyam's fictitious cash to acquire two companies owned by his family. Investor anger eventually got him to back off.

WORLD BANK BAN | A few months before Maytas, the World Bank, whose IT network was managed by Satyam, banned it for eight years: the Bank found that spyware installed in its finance and HR software was transmitting every tap and click back to Satyam's operations in Chennai. Shortly before this, Upaid Systems, a US software company specializing in online payments for mobile phone companies which had outsourced work to Satyam, sued it. It alleged that Satyam's performance was shoddy, it had inserted a Raju relative on board, stolen patented ideas and sold those to two telecom companies.

IN 2000 , Satyam bought a clutch of websites called Indiaworld for $116 million. Divide the buying price by 400 and you’ll get the site’s revenues, divide it by 2,000 and you’ll get its profit at the time of acquisition. No shareholder ever saw the gains from this costly investment.

POWERFUL FRIENDS | By then Raju had a powerful friend, Andhra Pradesh CM Chandrababu Naidu. The alliance may have helped prop up Satyam’s domestic equity prices. T R Prasad, a babu who retired as Cabinet secretary, was on Satyam's board. As industry secretary in the hotch-potch government of the late 1990s, Prasad had plotted with his minister to grab control of Maruti from Suzuki. He failed. The day Satyam imploded, Maruti was one of the few stocks to close up

[sudharmasrinivasan]

Its a big game played by the CEO and the other parties of the organisation.. I am sure its not Mr raju the only person to be blamed for ..I guess he is used as a scam goat..lot many hands into this play.. lot many politicians in the scandal.. Did u people listen to what the cheif minister of Andhra pradesh told the reuters?
Raju was my friend!!!
So he accepts that he knows him.. Now since raju s caught he says raju waas my friend..

[evilsid]

Kinda worst thing in the corporate world

[tulikaghosh]

Satyam now represents a big story just opposite to what its name mean..

what i feel is that...this incident is a question mark to teh system as a whole..its not important what Raju had done...more important thing is that he had done all this frauds and inspite of having stringent rules and regulations..all these went unnoticed.


Its time to really reveiw the system prevalent....Moreover this is also a lesson for the investor mostly speculators in the market who goes about brand name without properly scanning teh company...henceforth investors wil think and judge well before going to invest in any share..

[Cutepie]

Simply shocking...
on the part of a company as big as Satyam.
I just dont believe the fact that its chairman Mr. Ramalinga Raju alone is responsible for this scandal and that none of its board members were even aware of it goin on..!!!!

[ca.harsh.punjabi]

Deepak i particularly dint like the blog u have posted as a CA i can understand what those reports mean coz i have prepared dozens i think u really need to Understand that while an audit is conduted the auditor does not proceed to conduct an audit with a possiblity of a fraud in mind coz if he does that the whole purpose of verifyin the Fairness and accuracy gets defeated as he will have to look into each and every transaction which is clearly not feasible and also not desirable plus "Sufficient & Appropriate Audit Evidences" do not mean that they represent the complete picture the auditor generally places 3rd party confirmations ona higher pedestal than the interna mgt representations to place reliablity and this is what has happened these very 3rd party confirmations have been forged u can read ET dated 14jan09 and may be then u can understand my point although i m not from PWC but as a CA i needed to explain all this

[ca.harsh.punjabi]

Deepak i particularly dint like the blog u have posted as a CA i can understand what those reports mean coz i have prepared dozens i think u really need to Understand that while an audit is conduted the auditor does not proceed to conduct an audit with a possiblity of a fraud in mind coz if he does that the whole purpose of verifyin the Fairness and accuracy gets defeated as he will have to look into each and every transaction which is clearly not feasible and also not desirable

plus "Sufficient & Appropriate Audit Evidences" do not mean that they represent the complete picture the auditor generally places 3rd party confirmations ona higher pedestal than the interna mgt representations to place reliablity and this is what has happened these very 3rd party confirmations have been forged u can read ET dated 14jan09 and may be then u can understand my point

Although i m not from PWC but as a CA i needed to explain all this

[niraj.jain]

Mr Ramalinga Raju is to be blamed for the fiasco mainly, though Auditors, Independent Directors and regulators can not escape from their responsibilities.

About 4-5 yrs back,Satyam was No 4 largest I T Company in India behind TCS, Infosys and WIPRO. In last 4-5 years, TCS, Infosys and WIPRO have grown exponentially but satyam could not catch up with the pace. Raju, in his zeal to retain No 4 position, resorted to fraud. This is the main reason. Secondly, lot of money has been diverted by raju to acquire land through out Andhra pradesh.This triggered cash crunch. Ultimately, the man fell victim to his own greed and in the process, he brought down entire Industry, India as a Investment destination,millions of small investors and India's image world wide.As a punishment, Raju may languish in jail for 10-12 yrs and pay a fine of Rs 25-50 crores. But will the lost image and reputation of India Inc be salvaged??? it is a long drawn battle.We all should be prepared. Worst nightmare is how many more Satyam-like frauds are covered behind the doors?

[BUSA]

after NSE's announcement BSE should also announce tha remove of satyam from SENSEX and other indexes.

Satyam is here to stay and wont be going out of SENSEX. Infact it has recovered pretty well.

[atul007]

hi frnds i think this satyam contorversy hav very broad spectrum which includes PWC and some other banking firms.

[pall12345]

Akash Prakash: India's Enron
The Satyam saga will go down as the worst episode of corporate governance failure in India
Akash Prakash / New Delhi January 9, 2009, 0:35 IST
The saga of Satyam Computers will go down as the worst episode of corporate governance failure in corporate India. The fraud which is in excess of Rs 7,000 crore, is unfortunately of a truly global scale. Post the aborted merger with Maytas, many had suspected that Ramalinga Raju and family were heavily leveraged at a personal level, stuck in property and thus needed a bail-out. Nobody, however, I think suspected that Satyam itself was a fraud, with no cash and a non-existent margin structure. Raju’s letter implies that the company is basically unprofitable at a net level, and made no money over the last few years. How can Satyam, with 50,000 employees and global scale, make no money at all, when even mid-tier mediocre IT companies make atleast 10 per cent operating margins? How can this fraud be going on for years? How can the auditors not have confirmed cash balances, and that too of Rs 5,000 crore? Cash is supposed to be real, profit an accounting fiction, but here the cash itself was fraudulent. Raju goes on to state that he was going to merge Maytas Infra and his privately-held property company to bail out Satyam, and not use Satyam’s cash to bail himself out (as assumed by most who opposed the merger). Raju also writes that he pledged all his shares to raise cash to pump into Satyam, to keep the charade going.
While the truth will eventually come out, I still find it difficult to believe that Satyam actually makes no money, even though the revenues, clients and employees are real. How is it that a company with a scale of 50,000 employees, which pays employees industry standard wages and has billing rates comparable to industry standards, makes no money when TCS, Infosys and Wipro make 25-30 per cent operating margins? Even mid-tier companies with only 5,000 employees make 10-15 per cent margins. If Satyam really makes no money, what accounts for the margin leakage? Where are its costs out of line? Is money being sucked out of the company? Was Raju really willing to shortchange himself and family to bail out a company in which he had no more then an 8 per cent stake (as he claims he wanted to do by merging Maytas)? I suspect Raju’s letter may not be the last word in this saga.
While this sad episode will obviously raise doubts on India Inc and have damaged the country’s reputation, I do not believe the damage is permanent. Tragic episodes like this do happen, and this in no way dampens the IT or India growth story. Every boom/bust cycle invariably exposes weak players and Satyam will not be the last fraud we see in this country. The shock is, however, magnified both due to the scale and because it has claimed a top 5 player in the IT sector, a sector which has been the poster child of a more progressive and investor friendly corporate India.
Post Enron in the US, we saw a slew of regulations culminating in the Sarbanes-Oxley Act. In India, we have by and large adequate laws and disclosure standards, though we can improve disclosure in areas like promoters-pledged shares or detailing the bank accounts where the company’s cash is parked. Our framework of a majority of independent directors, minimum frequency of board meetings, shareholder approval needed for major decisions etc is of global standards. We also force our CEO and CFO to certify the accuracy of the published accounts. We can tinker with new disclosures but it is unlikely to make much difference. Satyam after all reported its results in Indian GAAP, IFRS and US GAAP, and even gave audited half-yearly statements. With a US listing it was also under the jurisdiction of the SEC, but none of this made any difference.
We now need to ensure that the guilty are brought to book and we see a swift and coordinated regulatory response. In the case of Enron in the US, the guilty were tried within three years — we cannot allow a 20-year litigation cycle (like the 1992 scam) in this case. We must quickly investigate, find out the truth, and then move against all the actors in this fraud. The company and Raju cannot have single-handedly pulled off a fraud of this magnitude and duration. Bankers, auditors and the finance function in Satyam will all be involved in some form or fashion. At the least they can be accused of incompetence. Investigation and action must be directed at all these service providers. It is especially critical that the sanctity of the independent audit process be maintained. The CA institute has to tighten standards and move against proven incompetence.
The only way to win back investor confidence is for justice to be done quickly and the punishment be severe enough to instil fear and disincentivise corporate fraud. In the case of Enron both the company and its auditors (Arthur Anderson)went out of business.
The ultimate defence against poor governance is the market itself. It was well-known that Satyam had a suspiciously high and growing current account balance, as well as nearly Rs 400 crore interest accrued but not received on deposits. Why will a company keep Rs 2,000 crore in a current account? Why will the bank not credit interest to a deposit for multiple quarters? While investors can legitimitely claim that they were relying on a Price Waterhouse-signed balance sheet, one of the lessons of the sub-prime debacle is that investors cannot rely blindly on external service providers.
Investors should exercise proper due diligence, and not allocate capital to companies with poor disclosure or governance practices. Investors cannot allow large companies to have unknown auditors, or rubber-stamp boards and must force them to split the CEO/chairman role in substance. If investors refuse to back poor managements, you will see large valuation gaps for companies in the same industries. If poor governance attracts poor valuations, it will incentivise shareholder-friendly behaviour and marginalize companies with weak corporate governance. Investor memory also cannot be short, poor governance has to attract a permanent de-rating.
This episode should further galvanise shareholder activism in India, with the HIRCO and GACL episodes being the first signs of greater shareholder organization and participation. We must see a greater market for corporate control in India. Investors must be willing to throw out poorly performing managements and boards, especially in companies where institutional investors have a higher stake than the erstwhile promoter group. Only when poor governance practices lead to poor valuations and hence vulnerability to takeover, will the economic incentives be aligned to prevent a recurrence of Satyam.

[mahesh_ibs]

Satyam, the fourth largest Indian IT company, with an employee strength of around 53,000 people, could have had a better story to tell, had not the promoters indulged into accounting malpractices and financial manipulations.
Is this how the Corporate india works????????????????

[eminem_19892006]

satyam states the current position of transparency in indian companies

[manojs23]

I think its high time ICAI brings in the policy or Auditors Rotation in Listed companies also like it is done in Banks.

Thanks,

Manoj

[tarun_delhionline]

Satyam's deed is totally unethical.I just hope that other India's Inc are not involved in such scandals.

[tarun_delhionline]

Satyam's deed is totally unethical.I just hope that other India's Inc are not involved in such scandals

[kanand124]

Raju is a cheater, fraudster. He misleaded the investors.

[parul gautam]

what you guys have to say about the employemet that students got in that company,
salaries in thousands.
who will not try to make money given a chance. every1 is greedy by some or the other way people try to maximize their profits its in a process smtimes they cross limit.
raja is atleast better than our politicians who waste our crores of rupees daily.
think abt our politicians ...........action need to be taken against them

[ca.harsh.punjabi]

I Agree with Parul Here we must not forget that before Anythin n Everythin Satyam was one Global Giant which stood apart from its Peers and perhaps and u know what it was awarded for its Training inititiaves for employees and the organisers said tht the award was unfazed by the ongoing controversy and morever even the rating agencies which awarded satyam the Golden Peacock Award for Corpoarate Governance all were at fault
Its just that until n unless the goose gives the golden egg everyones running behind it and now it has some disease everybody wants to curse it
Cmon guys suggest somethin u can think of to revive the company maybe somebody will take note lets b creative and shell out some suggestions ..

Cheers!!!!

[jags_1129]

The best part to see in days to come will be how this saga changes the India Corporate Scenario & India's Position in World Economy especially IT clients

[anuragjain199]

NEW MOVIE RAJU BAAN GAAYA CHOR......................................... GOVIDA WILL BE HERO IN CHOR NO1...................................

[ed1968]

bribery and corruption route cause of satyam case

[sirisha6788]

the new ceo of satyam will be able to cope with the present situation?

[ballu]

Why blame Satyam alone?

There are numerous other companies who are openly indulging in the same activities, still the government is unwilling to take action.

Just too many skeletons will come out if that begins to happen.

Who will bell the cat :-)

[ruhi28]

well, it is a hugeissue that has dented corporate India's image but pls remember we are bewilderd just b'cos it is the first of this type in country.Look at other big countries n each has a couple of them. so,it is only tempering image temprorily.Believe in our regulatory procedures n u will see that it gets resolved.

[tazeentaj]

dear all
this is a brief profile of raju
Ramalinga Raju Byrraju born on
16th sep,1954 in a family of farmers

In Bhimavaram town of Andhra Pradesh

He was an average student in class

He completed his (B. Com) degree in 1975 from Andhra Loyola College at Vijayawada
Raju's father, was one of the first farmers to start commercial grape production in Hyderabad.

The agribusiness' profits also went a long way in educating Ramalinga, the eldest son.

Ramalinga's childhood was pretty much typical of an upper middle class Hyderbadi family
He did his MBA from Ohio University, USA. trip to the US for his education changed his destiny

Back to India in 1977 and initially developed a textile industry named Sri Satyam.

Then he ventured into real estate business under the name Satyam Constructions
tazeen

[vikrantverma]

i know whatever hapened in SATYAM was shameful notonly for SATYAM, but also for INDIAN AUDIT dept. and else.
i m not in favour of what RAJU did, but just wanna give his viewpoint on the situation.
the things in support of his decision are:-
1) he was dying for the aquisition of MAYTAS, if the aquision had takebn place RAJU would have easily filled the broad gap b/w real and fictitious assets of SATYAM COMPANY.
2) he never used even a single penny from the money for personal use.
3) he pledged his 5% stake in the company 2 FII and the money generated, was put into the company by him as capital.

[niraj_hattangdi]

its very shameful to see frauds of such a giant..

[vikassahai]

There were news which said that pwc would also be penalized if found guilty....what happened to that?

[gpuneetg]

Its a real disaster for the thousands of well educated professionals who were working with this organisation and are left with no job.

[repudaman]

hI need a project on fraud in SATYAm hI need a project on fraud in SATYAmhI need a project on fraud in SATYAmhI need a project on fraud in SATYAmhI need a project on fraud in SATYAmhI need a project on fraud in SATYAmhI need a project on fraud in SATYAmhI need a project on fraud in SATYAmhI need a project on fraud in SATYAmhI need a project on fraud in SATYAm

[neha20092009]

Simply shocking...
on the part of a company as big as Satyam.
I just dont believe the fact that its chairman Mr. Ramalinga Raju alone is responsible for this scandal and that none of its board members were even aware of it goin on..!!!!

[suaveboy]

Though Satyam will face certain bad time and the employees may have some tough time, definitly if they continue to put in effort they will get out of the trouble. Also the companies future will depend on the one who would be taking over the company.