Mahindra Satyam

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Mahindra Satyam
Type Public
Traded as BSE: 500376
OTC Pink: SAYCY
Industry IT services, IT consulting
Founded 1987 (1987)
Founder(s) Byrraju Ramalinga Raju
Headquarters Hyderabad, India
Key people Vineet Nayyar (Chairman)
C.P. Gurnani (CEO)[1]
Services IT, business consulting and outsourcing services
Revenue INR5,145 crore (US$1.13 billion)(2011)
Profit INR493 crore (US$108.46 million)(2011)
Owner(s) Mahindra Group
Employees 32,280 (Q3 2011)[2]
Website www.mahindrasatyam.com

Mahindra Satyam formerly Satyam Computer Services, is an Indian IT services company based in Hyderabad, India. It was founded in 1987 by B Ramalinga Raju. Mahindra Satyam is a part of the Mahindra Group which is one of the top 10 industrial firms based in India. The company offers consulting and information technology (IT) services spanning various sectors, and is listed on the Pink Sheets, the National Stock Exchange (India) and Bombay Stock Exchange (India). In June 2009, the company unveiled its new brand identity “Mahindra Satyam” subsequent to its takeover by the Mahindra Group’s IT arm, Tech Mahindra on 2009. It is ranked #5 in Indian IT companies and overall ranked #153 by Fortune India 500 in 2011.[3]

Contents

[edit] Industry Presence

Mahindra Satyam provides services in the following areas:

  • Aerospace and Defence
  • Banking, Financial Services & Insurance
  • Energy and Utilities
  • Life Sciences & Healthcare
  • Manufacturing, Chemicals & Automotive
  • Public Services & Education
  • Retail
  • Consumer Packaged Goods
  • Travel, Transport, Logistics
  • Telecom, Infrastructure, Media and Entertainment & Semiconductors

[edit] Offices of Mahindra Satyam Across The Globe

Mahindra Satyam headquartered in Hyderabad, India has development centres and/or regional offices in USA, Canada, Brazil, the United Kingdom, Hungary, Egypt, UAE, India, China, Malaysia, Singapore, and Australia.[4]

[edit] Mahindra Satyam Campuses

Mahindra Satyam IT Campus, HITEC City

Mahindra Satyam is the largest IT employer of Hyderabad with its 4 campuses:

  • Mahindra Satyam Technology Center [Bahadurpally][5]
  • Mahindra Satyam InfoCity [Hitec City]
  • Gachibowli Campus [In DLF SEZ]
  • Mahindra Satyam GateWay [Bldg 1 & 2 in My Home Hub]

The company currently has seven campuses in Hyderabad.[6]

[edit] Global units

Asia Pacific: India-Bangalore, Bhubaneshwar, Chennai, Coimbatore, Hyderabad (Headquarter), Pune, Vishakapatnam, Delhi,[7] Gurgaon,[8] Mumbai,[9] Nagpur.[10][11]

Australia, China, Hong Kong, Japan, Malaysia, New Zealand, Singapore, Taiwan, Thailand, Korea

Europe: Belgium, Czech Republic, Denmark, France, Finland, Germany, Hungary, Ireland, Italy, Netherlands, Spain, Sweden, Switzerland, United Kingdom.

Middle East and Africa: Bahrain, Egypt, Jordan, Kenya, Kuwait, Qatar, Saudi Arabia, South Africa, United Arab Emirates.

Americas: USA, Canada, Brazil.

Mahindra Satyam Technology Center at Bahadurpally, Hyderabad
Mahindra Satyam Development Center
Mahindra Satyam campus, Hyderabad
Mahindra Satyam Chennai employees at Satyamotsav, an annual cultural show
Mahindra Group V-C Anand Mahindra

[edit] Competencies

Mahindra Satyam offers the following ‘horizontal’ services.

  • Extended Enterprise Solutions
  • Web Commerce Solutions
  • Business Intelligence Services
  • Quality Consulting
  • Strategic Outsourcing Services
  • Industry Native Solutions
  • Business Services Group - BSG (BPO)
  • Engineering Services
  • Product management

[edit] Partnerships

February 11, 2010, Mahindra Satyam, announced that it has entered into a partnership with the Integr8 Group, Africa’s largest privately owned ICT service and solutions provider.[12]

[edit] Merger

Mahindra Satyam's proposed merger with Tech Mahindra may be delayed all because of legal issues, and ambiguity over jurisdiction between investigating agencies and the government.[13] The merger has been delayed due to two tax cases pending with the Income Tax claiming over INR 2700 crore for both.[14]

[edit] Row with I-T Department

The I-T Department had issued notices to the company seeking INR 617 crore tax for the assessment years from 2003-04 to 2008-09, when the company was run by the founder B Ramalinga Raju and his team. The Central Board of Direct Taxes has attached the properties of Mahindra Satyam on February 3, 2012,stating the attachment of properties was according to Section 281 B of the Income Tax Act. Section 281 B refers to recovery of tax and allows the tax department to issue provisional orders to the assessee to safeguard revenues accrued to it.The Income Tax department had slapped notice on the company after disallowing exemptions claimed by the software firm. The company has received notices of demand for INR 1,037 crore and INR 1,075 crore for assessment years 2002-03 and 2007–08, respectively. [15]

[edit] Turnaround

The company had reported a consolidated net loss of Rs 233.3 crore for the July–September quarter of 2010. Speaking at a press conference, Vineet Nayyar, chairman of the company said the consolidate cash and cash equivalents at Rs 30 crore compared to Rs 26 crore. “We will take three [years] for a turnaround,” he informed.[16] Even though the company got 245 crores profit in Q4 for 2010–2011, but due to outside payments nearly 570 crores for SEK,UNIPAID and Class Action Suit in Q4 (Total 641 crores for the year 2010-2011 ),the company had reported a consolidated net loss of Rs 327 crore for the January-March quarter of 2010-2011.IT firm Mahindra Satyam posted a consolidated net profit of Rs 225.2 crore for the quarter ended June 30, 2011. During the quarter, the company added 2,172 people (net), taking total headcount to 31,438 as of June 30, 2011.[17] The company added 36 new customers during the quarter. The total headcount of the company stood at 32,092 as of the quarter ended September 30, 2011 during which net addition of 654 personnel took place.[18] The company added 188 employees in quarter three ending December 31, 2011 and recorded 29.4% quarter-on-quarter in its consolidated net profit of INR 308 crore .[19]

[edit] Recent news and developments

Mahindra Satyam will acquire a minority stake of 15% for INR 35 crore in Dion Global Solutions Limited , the Delhi-based firm owned by billionaire brothers Malvinder Mohan Singh and Shivinder Mohan Singh ,that provides solutions for capital markets globally. [20][21][22]

[edit] Controversies

[edit] Maytas acquisition

In 2008, Satyam attempted to acquire Maytas Infrastructure and Maytas Properties, founded by family relations of company founder Ramalinga Raju (Maytas is "Satyam" reversed) for $1.6 billion, despite concerns raised by independent board directors.[23] Both companies are owned by Raju's sons. This eventually led to a review of the deal by the government,[24] a veiled criticism by the vice president of India[25] and Satyam's clients re-evaluating their relationship with the company.[26] Satyam's investors lost about INR 3,400 crore in the related panic selling. The USD $1.6 billion (INR 8,000 crore) acquisition was met with skepticism as Satyam's shares fell 55% on the New York Stock Exchange.[27] Three members of the board of directors resigned on 29 December 2008.[28]

[edit] Accounting scandal of 2009

Main article: Satyam accounting scandal

In addition to other controversies involving Satyam, on January 7, 2009, Chairman Raju resigned after publicly announcing his involvement in a massive accounting fraud. Ramalinga Raju is currently in a Hyderabad prison along with his brother and former board member Rama Raju, and the former C.F.O Vadlamani Srinivas.

[edit] See also

Portal icon Companies portal

[edit] References

Wikimedia Commons has media related to: Mahindra Satyam
Wikinews has related news: Former Satyam CEO Raju, his brother and CFO arrested and detained in profit-fraud scandal

[edit] External links

  1. ^ http://www.thenational.ae/thenationalconversation/industry-insights/technology/chief-of-indian-it-giant-has-good-yarn-to-tell
  2. ^ Mahindra Satyam posts over 4-fold jump in Q3 profit
  3. ^ Fortune India 500 (December 18, 2011). "Fortune India 500 complete list for 2011". Bangalore: MphasiS. http://www.mphasis.com/pdfs/FortuneRanking.pdf. 
  4. ^ Mahindra Satyam Acquires Stake In Dion Global Solutions
  5. ^ MSat Hyderabad office details
  6. ^ Income tax department attaches Mahindra Satyam assets
  7. ^ moneycontrol.com
  8. ^ gurgaononcall.com
  9. ^ http://www.moneycontrol.com/company-facts/satyamcomputerservices/locations/SCS
  10. ^ Companies in MIHAN-SEZ
  11. ^ L&T IT Park,Nagpur
  12. ^ "Mahindra Satyam partners with Integr8 for expansion in South Africa". http://www.prlog.org/10529107-mahindra-satyam-partners-with-integr8-for-expansion-in-south-africa.html. Retrieved 18 February 2010. 
  13. ^ moneycontrol.com
  14. ^ http://www.moneycontrol.com/news/business/mah-satyam-tech-mah-to-appoint-bankers-to-fasten-merger_581330.html
  15. ^ Mahindra Satyam gets attachment order from I-T dept
  16. ^ indiaearnings.moneycontrol.com
  17. ^ http://profit.ndtv.com/news/show/mahindra-satyam-reports-rs-225-cr-profit-in-q1-168250
  18. ^ http://www.moneycontrol.com/news/business/mahindra-satyam-q2-net-soars-europe-crisisworry_614931.html
  19. ^ Mahindra Satyam Q3 net spikes 29% to Rs 308 cr
  20. ^ Mahindra Satyam to pick up 15% stake in Dion Global
  21. ^ Mahindra Satyam to pick stake in Dion for Rs 35 cr
  22. ^ Mahindra Satyam to acquire minority stake in Dion Global
  23. ^ The Hindu Business Line - ‘Satyam’s independent directors had raised concerns over the deal’ Friday, December 19, 2008
  24. ^ "Centre refers Satyam deal to ROC". timesofindia.indiatimes.com. 20 December 2008. http://timesofindia.indiatimes.com/Hyderabad/Centre_refers_Satyam_deal_to_ROC/articleshow/3864623.cms. 
  25. ^ The Hindu : Business : Plain-speak by Hamid Ansari on governance - (Sunday, December 21, 2008)
  26. ^ Bibhu Ranjan Mishra (December 18, 2008). "Satyam clients likely to re-evaluate contracts". Bangalore: Business Standard. http://www.business-standard.com/india/news/satyam-clients-likely-to-re-evaluate-contracts/00/12/343589/. 
  27. ^ [1][dead link]
  28. ^ "Fourth independent director M. Rao resigns from Satyam". economictimes.indiatims.com. December 29, 2008. http://economictimes.indiatimes.com/Features/Satyam_Maytas_deal_called_off/Fourth_independent_director_resigns_from_Satyam/articleshow/3909517.cms. 

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