Appalling reports from one of the Indian IT companies and from the Chairman Byrraju Ramalinga Raju himself who might have been seen from so many entrepreneurs as role model in setting up such a huge IT firm in committing one of the biggest corporate scam the earlier one that I remember was Enron. This unquestionably is going to have long enduring effect and will be seen as one of the black day in Indian IT and Business industry. Other companies in the analogous profession will also feel heat as this might diminish confidence level from India and abroad. There might also be probe for the auditors as how they were unaware of such a gigantic deception in the balance sheet.
Quick Facts about Satyam:
1987 – Year when Satyam was initiated as private limited company.
1991 - Announced its first Fortune 500 customer i.e. John Deere & Co.
1993 - Satyam was awarded ISO 9001 certification. Same year Satyam entered joint venture with Dun & Bradstreet for IT Services and also with GE.
1999 - Satyam signs joint venture with TRW Inc. and in the same year was assessed for SEI CMM Level 5.
2000 - Indian government awarded National HRD Award to Satyam and Ramalinga Rahu was named "IT Man of the Year" by Dataquest.
2001 - Satyam becomes world’s first ISO 9001:2000 company and was listed in NYSE.
2005 - Global development center outside India (in Melbourne) was launched.
2007 - Acquires Nitor Global Solutions Limited. Raju Ernst and Young Entrepreneur of Year
2008 - Revenue more than US $ 2-billion.
Current State:
Currently Satyam is one of the leading Indian IT firm operating in 66 countries, across 6 continents having 53,000 employees. Satyam is serving around 690 global clients which include 185 Fortune 500 companies.
Swindle Figures:
It’s nothing but the statistics that hurt market all over the world which were revealed by Mr. Raju in his resignation letter. Quick look at figures:
· Total available Cash 321 Crores INR whereas shown in balance sheet 5361 Crores INR.
· Accrued interest of 376 Crores INR which never existed.
· Total revenue in September quarter was reported 2700 Crores whereas it was just 2112 Crores.
· Operating margin declared was 649 (24%) Crores whereas it was just 61 Crores (3%).
· Total liability of 1230 Crores INR
Immediate Effect:
As soon as the news for resignation and figure in the letter was released Satyam shares fell down from 178.95 INR from Tuesday to 40.25 INR with a straight fall by 82%. Even SENSEX plunges down to 9586 from yesterday close 10335 considering depressing news. Its not only direct investors in the Satyam shares but Mutual funds buyers also have to face the music as there are around 172 Mutual Fund companies which have invested in Satyam.
Driving Factors:
Driving factors as being stated by Mr. Raju is to cope with latest slowdown in market and too keep faith of investors and customers at the same time to better engaged with new opportunities by spreading news for better position of the company in the market. Although Raju tried his level best to save company and faith of investors but situation just explode out of his hands and he has no option but to release the figures and quit.
Bol Bachan:
I am still not able to identify the real motivation factor behind such a personality and company to be in such a scoop but I am really worried about future of all my friends in IT fraternity who are in Satyam around 53,000. I hope that newly appointed board of Satyam and Indian government will take some quick steps to overcome the situation and they all will be able to survive well with their responsibility towards their job and family.
All well that ends well and hope there will be happy ending for this situation in relation to employees and Satyam…
Quick Facts about Satyam:
1987 – Year when Satyam was initiated as private limited company.
1991 - Announced its first Fortune 500 customer i.e. John Deere & Co.
1993 - Satyam was awarded ISO 9001 certification. Same year Satyam entered joint venture with Dun & Bradstreet for IT Services and also with GE.
1999 - Satyam signs joint venture with TRW Inc. and in the same year was assessed for SEI CMM Level 5.
2000 - Indian government awarded National HRD Award to Satyam and Ramalinga Rahu was named "IT Man of the Year" by Dataquest.
2001 - Satyam becomes world’s first ISO 9001:2000 company and was listed in NYSE.
2005 - Global development center outside India (in Melbourne) was launched.
2007 - Acquires Nitor Global Solutions Limited. Raju Ernst and Young Entrepreneur of Year
2008 - Revenue more than US $ 2-billion.
Current State:
Currently Satyam is one of the leading Indian IT firm operating in 66 countries, across 6 continents having 53,000 employees. Satyam is serving around 690 global clients which include 185 Fortune 500 companies.
Swindle Figures:
It’s nothing but the statistics that hurt market all over the world which were revealed by Mr. Raju in his resignation letter. Quick look at figures:
· Total available Cash 321 Crores INR whereas shown in balance sheet 5361 Crores INR.
· Accrued interest of 376 Crores INR which never existed.
· Total revenue in September quarter was reported 2700 Crores whereas it was just 2112 Crores.
· Operating margin declared was 649 (24%) Crores whereas it was just 61 Crores (3%).
· Total liability of 1230 Crores INR
Immediate Effect:
As soon as the news for resignation and figure in the letter was released Satyam shares fell down from 178.95 INR from Tuesday to 40.25 INR with a straight fall by 82%. Even SENSEX plunges down to 9586 from yesterday close 10335 considering depressing news. Its not only direct investors in the Satyam shares but Mutual funds buyers also have to face the music as there are around 172 Mutual Fund companies which have invested in Satyam.
Driving Factors:
Driving factors as being stated by Mr. Raju is to cope with latest slowdown in market and too keep faith of investors and customers at the same time to better engaged with new opportunities by spreading news for better position of the company in the market. Although Raju tried his level best to save company and faith of investors but situation just explode out of his hands and he has no option but to release the figures and quit.
Bol Bachan:
I am still not able to identify the real motivation factor behind such a personality and company to be in such a scoop but I am really worried about future of all my friends in IT fraternity who are in Satyam around 53,000. I hope that newly appointed board of Satyam and Indian government will take some quick steps to overcome the situation and they all will be able to survive well with their responsibility towards their job and family.
All well that ends well and hope there will be happy ending for this situation in relation to employees and Satyam…
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