Satyam Computer Services LImited

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Overview B. Ramalinga Raju (Raju) and his brother-in-law established Satyam Computer Services Limited (Satyam) in 1987. The company initially started with 20 employees and grew to become the fourth largest software exporter in India. It was listed on the New York Stock Exchange in 2001 with revenues exceeding US $1 billion. During the 1990s, the company saw considerable growth for itself and the formation of new subsidiaries including Satyam Infoway, the first Indian internet company listed on NASDAQ. The company continued to grow in the early 2000’s through mergers and acquisitions moreover; its portfolio of clients grew and included companies like Microsoft, Emirates, TRW, i2 Technologies and Ford. Satyam had established it’s self as a global IT company. By 2008, Satyam’s revenues were more than US $2 billion. It received the “Golden Peacock Award” for excellence in corporate governance from the World Council for Corporate Governance. Its outside auditing firm was PricewaterhouseCoopers (PWC) and Merrill Lynch was its deal advisor. Its board of directors was made up of executive and non-executives of the company. All of the company’s quarterly and annual filings appeared to comply with Indian and American regulatory agencies and stock exchanges. However, Raju had artificially inflated these financial statements. In 1988, Raju and his family founded a group of companies called Maytas. The Maytas group included Maytas Properties and Maytas Infrastructure Limited. Raju’s two sons headed the Maytas group. Raju used his political connections to assist Maytas Infrastructure Limited in acquiring government contracts for irrigation, power and transportation. Furthermore, he purchased land through Maytas Properties using f... ... middle of paper ... ...usiness-news-stock-market-and-financial-advice>. "Business vs. Ethics: The India Tradeoff?" 2012. Knowledge@Wharton. Ed. The Wharton School. University of Pennsylvania. Web. 1 April 2014. . Kanodia, Shahana Basu. "'Jugaad' culture's hollow innards." 3 March 2013. IndiaToday. Web. 1 April 2014. "Principles of Corporate Governance." 2012. The Harvard School of Law Forum. Ed. Noam Noked. Web. 2 April 2014. . PTI. "Tata group India's most valuable brand; Apple on top globally: Global study." 14 Feb 2014. The Times of India. Web. 1 April 2014. .
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