The winning bid constituted one-tenth of the share price at which satyam traded about a year ago justice sp bharucha, retired chief justice of india, oversaw the final bidding process raju's letter to the company board revealed a fraud of unprecedented proportions. This case illustrates the downfall of satyam, one of the biggest it giants in india, because of the fraudulent activities carried out by its founder mr ramalinga raju and his associates. A lot of us took special pride in being part of satyam back in 2005, in the roads of hyderabad, every other person you bump into would probably know about satyam for hyderabadis, for (the-then) andhraites, satyam was a company that put them on the global map. Raju received a seven-year jail sentence in april 2015, one of four satyam executives to be convicted in connection with the fraud sebi had previously issued fines worth $291m to the former.
By 1987, raju returned to india and co-founded satyam with one of his two younger brothers the name means truth in sanskrit deere was an early big customer. One such issue that may be raised is the quantum of fees earned by pwc from satyam as compared to the fees paid by its industry peers between 2003 and 2008, the audit fee earned by pwc from satyam increased over 300 percent. Satyam computers was one of the most pioneer indian it company they have also set an example in biggest corporate fraud, which is a major set back for indian stock market as well as for indian it sector.
Satyam's downfall started with the aborted bid to acquire maytas infra and maytas properties the scam took a heavy toll on the fortunes of the two firms the scam took a heavy toll on the fortunes of the two firms. Hyderabad: he was once considered the it czar and the bill gates of andhra pradesh, who founded and built satyam into one of the top it companies in india. Thanks varun and devaki, the reasons explained for satyam downfall are excellent by both of you but does that means that satyam is bankrupt now or it will survive again if some other company will buy satyam computer services limited plz be more descriptive when explaining your answers.
Satya is the sanskrit word for truth it also refers to a virtue in indian religions, referring to being truthful in one's thought, speech and action in yoga, satya is one of five yamas, the virtuous restraint from falsehood and distortion of reality in one's expressions and actions. Satyam has put in place a task force for 2009-10 and one of its focus areas will be cost-cutting there will be a lot of restructuring as business overseas has been severely impacted and hence workforce rationalisation is definitely on the cards. One should not see the fall of satyam as the fall of a single company the chill caused in the indian inc is due to much more the indian growth story began with the boom in the ites (it enabled services) sector. Satyam is a sanskrit word whose meaning is 'truth' i am talking about satyam computer services ltd which was a few days back one of the top 5 it companies of india it is a consulting and information technology services company based in hyderabad, india.
The astounding confessions of b ramalinga raju, ex-chairman of satyam computers, has not only hit investors and employees badly, it has also tarnished the reputation of india's it sector amidst fears that clients would do a rethink on business commitments, the bigwigs of india inc are. In 2008, a series of cyber-intrusions at the world bank raised concerns about the security of international financial data held at the institution the bank's chief vendor for cyber-security, satyam computer services, ltd of india, came under scrutiny as the it system the company had designed appeared vulnerable. The accounting fraud committed by the founders of satyam in 2009 is a testament to the fact that the science of conduct is swayed in large by human greed, ambition, and hunger for power, money, fame and.
The satyam computer services scandal was a corporate scandal affecting india-based company satyam computer services in 2009, in which chairman ramalinga raju confessed that the company's accounts had been falsified. In one of the the biggest frauds in india 's corporate history, b ramalinga raju, founder and ceo of satyam computers, india 's fourth-largest it services firm, announced on january 7 that his company had been falsifying its accounts for years, overstating revenues and inflating profits by $1 billion. Satyam was a large company, not a street store pricewaterhousecoopers is a globally reputed firm professional accounting bodies and police are currently examining the role of auditors in this incident minutely.