Mahindra Satyam
From Wikipedia, the free encyclopedia
 |
|
| Type | Public BSE: 500376 NYSE: SAY ADR |
|---|---|
| Founded | 1987 |
| Headquarters | Hyderabad, India |
| Key people | Vineet Nayyar (Chairman) C.P. Gurnani (CEO) A. S. Murty (CTO) |
| Industry | IT Services IT consulting Software services |
| Owner(s) | Mahindra Group |
| Website | MahindraSatyam.net |
Mahindra Satyam (BSE: 500376, NYSE: SAY) (formerly known as Satyam Computer Services Ltd) was founded in 1987 by B Ramalinga Raju. The company offers consulting and information technology (IT) services spanning various sectors, and is listed on the New York Stock Exchange, 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.
Contents |
[edit] Industry Presence
Mahindra Satyam provides services in the following areas:
- Aerospace and Defense
- Banking, Financial Services &Insurance
- Energy and Utilities
- Life Sciences & Healthcare
- Manufacturing, Chemicals & Automotive
- Public Services & Education
- Retail and Consumer Packaged
- Telecom, Infrastructure, Media and Entertainment & Semiconductor
- Travel and Logistics & Industrial Equipment
[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
- BPO
- Engineering Services
[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 for $1.6 billion, despite concerns raised by independent board directors.[1] Both companies are owned by Raju's sons. This eventually led to a review of the deal by the government[2], a veiled criticism by the vice president of India[3] and Satyam's clients re-evaluating their relationship with the company[4]. 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.[5] Three members of the board of directors resigned on 29 December 2008.[6]
[edit] World Bank
The World Bank had banned Satyam from doing business with it for 8 years due to inappropriate payments to the World Bank's staff.[7] The World Bank accused Satyam of giving improper benefits to its (the Bank's) staff and of failing to maintain documentation to support fees charged for its subcontractors. However, it clarified that Satyam was not involved in incidences of data theft or malicious attacks that had been made on the Bank's information systems. [8]
[edit] Upaid lawsuit
UK mobile payments company Upaid Systems is suing Satyam for over 1 billion US dollars on complaints of fraud, forgery and breach of contract.[9]. [10]. on 9-December-2009 Satyam has settled the lawsuit with UPAID for $70MM, of which $45MM is payable upon regulatory approval, and the remaining $25MM is payable a year after the initial payment. The settlement requires Upaid to give Mahindra Satyam a worldwide royalty-free licence on its patents, and provides for the dismissal of all pending actions including the litigation between the companies pending in the U.S. court.
[edit] Accounting scandal of 2009
In addition to other controversies involving Satyam, on January 7, 2009, Chairman Raju resigned after publicly announcing his involvement in an accounting fraud. Ramalinga Raju is currently in a Hyderabad prison along with his brother and former board member Rama Raju, and the former CFO Vadlamani Srinivas.
[edit] External links
- ^ The Hindu Business Line - ‘Satyam’s independent directors had raised concerns over the deal’ Friday, December 19, 2008
- ^ Centre refers Satyam deal to ROC - (20 December 2008, 0021 hrs IST, PTI) Hyderabad-Cities-The Times of India
- ^ The Hindu : Business : Plain-speak by Hamid Ansari on governance - (Sunday, December 21, 2008)
- ^ Satyam clients likely to re-evaluate contracts - Bibhu Ranjan Mishra / Bangalore December 18, 2008, 0:45 IST - Business Standard
- ^ Satyam investors lose Rs 3300 cr in a day - Press Trust of India (Wednesday, December 17, 2008) (Mumbai) NDTV Convergence Limited
- ^ Fourth independent director M Rao resigns from Satyam - (December 29, 2008, 1812 hrs IST, AGENCIES) Software-Infotech-The Economic Times
- ^ World Bank bans Satyam for 8 years- ITeS-Infotech-The Economic Times - December 24, 2008, 0022 hrs IST, ET Bureau
- ^ The Hindu Business Line : Satyam Computer recoups after sharp slide - Thursday, December 25, 2008
- ^ Old client files forgery lawsuit against Satyam - (15 May 2008, 1001 hrs IST, N Shivapriya, TNN) Software-Infotech-The Economic Times
- ^ Reuters: Satyam Settles Upaid Lawsuit for $70 mln – 9 December, 2009
[edit] References
For Complete Satyam Discussions and Information Click Here
 |
Wikinews has related news: Former Satyam CEO Raju, his brother and CFO arrested and detained in profit-fraud scandal |
- A.S Murty's mail to Satyam Employees on Cost Cutting
- Are there more Satyam's in making?
- The Official Corporate Website for Satyam Computer Services
- Employees face fallout of Satyam fiasco
- BusinessWeek profile
- The rise and fall of Satyam
- Raju's Statement - Scanned Copy - "Satyam CEO's Letter to its board of directors" - Hyderabad, India, January 7, 2009
|
||||||||
