Mahindra Satyam

From Wikipedia, the free encyclopedia
  (Redirected from Satyam Computer Services)
Jump to: navigation, search
This article may contain original research. Please improve it by verifying the claims made and adding inline citations. Statements consisting only of original research may be removed. (February 2012)
It has been suggested that this article be merged with Tech Mahindra. (Discuss) Proposed since December 2012.
Mahindra Satyam
Type public company
Traded as BSE: 500376
NSE: SATYAMCOMP
OTC Pink: SAYCY
Industry IT services, IT consulting
Founded 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 INR69.23 billion (US$1.3 billion) (2012)[2]
Profit INR13.06 billion (US$240 million) (2012)
Owner(s) Mahindra Group
Employees 36956 (2013)[3]
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 13 April 2009.

Contents

Industry Presence [edit]

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
  • Information Technology

Offices of Mahindra Satyam Across The Globe [edit]

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]

Mahindra Satyam Campuses [edit]

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 Learning World [Hitec City]
  • Mahindra Satyam SEZ[Hitec City]
  • Mahindra Satyam Info Services Ltd., Resapuvanipalem, Visakhapatnam
  • Mahindra Satyam, Bhubaneswar

The company currently has eight campuses in Hyderabad.[6][7]

Global units [edit]

Asia Pacific: India-Bangalore, Bhubaneshwar, Chennai, Hyderabad (Headquarter), Pune, Vishakapatnam, Delhi,[8][9] Gurgaon,[10] Mumbai,[11] Nagpur.[12][13]

Australia,[14] 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

Partnerships [edit]

11 February 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.[15]

In June 2012, Mahindra Satyam has tied up with Oxygen Finance, which is a UK based firm to market its cloud-based payment system.[16]

Merger [edit]

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.[17] The merger has been delayed due to two tax cases pending with the Income Tax claiming over INR 27 billion for both.[18] Tech Mahindra announced its merger with Mahindra Satyam on 21 March 2012,after the board of two companies gave the approval.[19] The two firms have received the go-ahead for merger from the Bombay Stock Exchange and the National Stock Exchange.[20] Competition Commission of India(CCI)approved the proposed merger of Mahindra Satyam and other companies with Tech Mahindra.[21] Mahindra Satyam will hold its annual general meeting (AGM) on 8 June 2012 to consider the proposal to merge the company with Tech Mahindra. It is mandatory for the firm to get the AGM nod to go ahead with the merger.[22] The shareholders of both Tech Mahindra and Mahindra Satyam have unanimously approved the scheme of amalgamation and merger of Satyam Computer Services Ltd, Venturbay Consultants, C&S System Technologies, CanvasM Technologies and Mahindra Logisoft Business Solutions with Tech Mahindra.[23][24] Mahindra Satyam chairman, Vineet Nayyar said on 2 August 2012, that the merger with Tech Mahindra was at the final stage of getting approval from the Andhra Pradesh and Maharashtra High Courts.[25]

Row with Income Tax Department [edit]

The Income Tax Department had issued notices to the company seeking INR 6.17 billion 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 3 February 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 10.75 billion for assessment years 2002–03 and 2007–08, respectively. [26] However, the Andhra Pradesh High Court granted a breather to Mahindra Satyam, by staying the Income Tax Department's provisional order to attach properties of the IT firm.[27]

Turnaround [edit]

The company had reported a consolidated net loss of INR 2.33 billion 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 INR 300 million compared to INR260 million. “We will take three years for a turnaround,” he informed.[28] Even though the company got INR 2.45 billion profit in Q4 for 2010–2011, but due to outside payments nearly INR 5.70 billion for SEK,UPAID and Class Action Suit in Q4 (Total 6.41 billion for the year 2010–2011 ),the company had reported a consolidated net loss of INR 3.27 billion for the January–March quarter of 2010–2011.IT firm Mahindra Satyam posted a consolidated net profit of INR 2252 million for the quarter ended 30 June 2011. During the quarter, the company added 2,172 people (net), taking total headcount to 31,438 as of 30 June 2011.[29] The company added 36 new customers during the quarter. The total headcount of the company stood at 32,092 as of the quarter ended 30 September 2011 during which net addition of 654 personnel took place.[30] The company added 188 employees in quarter three ending 31 December 2011 and recorded 29.4% quarter-on-quarter in its consolidated net profit of INR 3.08 billion .[31] Mahindra Satyam reported a net profit of INR 5.34 billion for the fourth quarter ended 31 March 2012.[32]

Recent news and developments [edit]

Mahindra Satyam will acquire a minority stake of 15% for INR 350 million 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. [33][34][35] Mahindra Satyam acquired Delhi based BPO firm vCustomer's International operations for US $27 million. This is the first 100% acquisition by Mahindra Satyam since it became part of Mahindra Group.[36][37]

Controversies [edit]

Maytas acquisition [edit]

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.[38] Both companies are owned by Raju's sons. This eventually led to a review of the deal by the government,[39] a veiled criticism by the vice president of India[40] and Satyam's clients re-evaluating their relationship with the company.[41] Satyam's investors lost about INR 34 billion in the related panic selling. The USD $1.6 billion (INR 80 billion) acquisition was met with scepticism as Satyam's shares fell 55% on the New York Stock Exchange.[42] Three members of the board of directors resigned on 29 December 2008.[43]

Accounting scandal of 2009 [edit]

Main article: Satyam accounting scandal

In addition to other controversies involving Satyam, on 7 January 2009, Chairman Raju resigned after publicly announcing his involvement in a massive accounting fraud.

See also [edit]

Portal icon Companies portal

References [edit]

  1. ^ "Tech Mahindra appoints CP Gurnani as MD". The Times of India. 14 August 2012. Retrieved 1 September 2012. 
  2. ^ Mahindra Satyam delivers Industry growth
  3. ^ Mahindra Satyam posts profit of Rs 534.21 cr in Q4
  4. ^ Mahindra Satyam Acquires Stake In Dion Global Solutions
  5. ^ MSat Hyderabad office details
  6. ^ The Cool Cost-Cutter
  7. ^ Income tax department attaches Mahindra Satyam assets
  8. ^ moneycontrol.com
  9. ^ Offices & Development Centers
  10. ^ gurgaononcall.com
  11. ^ http://www.moneycontrol.com/company-facts/satyamcomputerservices/locations/SCS
  12. ^ Companies in MIHAN-SEZ
  13. ^ L&T IT Park,Nagpur
  14. ^ Mahindra Satyam Australia ready to make bigger inroads
  15. ^ "Mahindra Satyam partners with Integr8 for expansion in South Africa". Retrieved 18 February 2010. 
  16. ^ "Mahindra Satyam ties up with UK firm". 11 June 2012. 
  17. ^ moneycontrol.com
  18. ^ http://www.moneycontrol.com/news/business/mah-satyam-tech-mah-to-appoint-bankers-to-fasten-merger_581330.html
  19. ^ /Tech Mahindra, Satyam get nod to merge
  20. ^ Mahindra Satyam-TechM to take 150 top leaders to Bangkok
  21. ^ High Court orders shareholders' meeting on MSat-Tech Mahindra merger
  22. ^ Mahindra Satyam AGM on June 8
  23. ^ Mahindra Satyam shareholders approve merger with Tech Mahindra
  24. ^ Markets firm in morning deals
  25. ^ "Merger with Tech Mahindra". 3 August 2012. 
  26. ^ Mahindra Satyam gets attachment order from I-T dept
  27. ^ Mahindra Satyam gets relief in assets attachment case
  28. ^ indiaearnings.moneycontrol.com
  29. ^ http://profit.ndtv.com/news/show/mahindra-satyam-reports-rs-225-cr-profit-in-q1-168250
  30. ^ http://www.moneycontrol.com/news/business/mahindra-satyam-q2-net-soars-europe-crisisworry_614931.html
  31. ^ Mahindra Satyam Q3 net spikes 29% to Rs 308 cr
  32. ^ Mahindra Satyam posts Rs 534.21 cr profit for Q4
  33. ^ Mahindra Satyam to pick up 15% stake in Dion Global
  34. ^ Mahindra Satyam to pick stake in Dion for Rs 35 cr
  35. ^ Mahindra Satyam to acquire minority stake in Dion Global
  36. ^ Mahindra Satyam acquires vCustomer BPO for $27 million
  37. ^ Mahindra Satyam acquires vCustomer for $27 mn
  38. ^ The Hindu Business Line – ‘Satyam's independent directors had raised concerns over the deal’ Friday, 19 December 2008
  39. ^ "Centre refers Satyam deal to ROC". timesofindia.indiatimes.com. 20 December 2008. 
  40. ^ The Hindu : Business : Plain-speak by Hamid Ansari on governance – (Sunday, 21 December 2008)
  41. ^ Bibhu Ranjan Mishra (18 December 2008). "Satyam clients likely to re-evaluate contracts". Bangalore: Business Standard. 
  42. ^ [1][dead link]
  43. ^ "Fourth independent director M. Rao resigns from Satyam". economictimes.indiatims.com. 29 December 2008. 

External links [edit]

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
Divisions and
subsidiaries
India-based
Other
Other
Retrieved from "http://en.wikipedia.org/w/index.php?title=Mahindra_Satyam&oldid=555619401"