Mahindra Satyam
Mahindra Satyam (formerly Satyam Computer Services Ltd. ) Was an Indian software and consulting company based in Hyderabad. The company was listed on the financial index BSE Sensex.
Satyam was founded in 1987 by Ramalinga Raju and has claims to have about 29,000 employees worldwide. As part of the balance sheet scandal came out in 2009 that at least 6,000 people were simply invented, then the number of employees was not provided with nearly 53,000 worldwide. Since June 2009, the company changed its name after a takeover by Tech Mahindra, the IT arm of the Mahindra Group, Mahindra Satyam as. In Tech Mahindra, the company finally end in June 2013 went on to complete.
The word " Satyam " is the south Indian variant of Sanskrit-/Hindi-Wortes satya and in German means "truth."
The computer company offered its services, such as software programming, IT consulting and outsourcing at low prices also numerous international companies such as Sony, Nestlé and General Electric.
Accounting scandal in 2009
Early January 2009, it was announced that the company is involved in a balance sheet manipulation scandal. Ramalinga Raju announced that the company's profit was reported inflated over several years. While the financial situation of the company remains unknown, a board member of the direct competitors has denied infosys a takeover interest of his company.
The CEO Ramalinga Raju and his brother, the former board member Rama Raju and former CFO Vadlamani Srinivas in Hyderabad sit in prison. The former Satyam Board was dissolved.
Raju had admitted massive accounting fraud in a letter to the Supervisory Board. So he did end of September 2008 reported a profit margin of 24 percent for the previous quarter - in fact, they lay only three percent. But the company assets had been converted to 760 million euros is overstated. Overall, the deficit amounted to more than a billion Euros. The fakes have started with a small gap and widened more and more over the years, Raju wrote. "I've ridden a tiger, not knowing how I can get off without being eaten. "
An Economic and Political Weekly Editorial doubts the alleged business losses and rather believed that funds were diverted for personal purposes of the promoters and / or governmental authority or by the governing parties is dating companies. There are inevitable questions aloud over the years through lack of supervision by the highly doped independent Supervisory Board members and the identified responsible auditor.
After becoming aware of the balance of the share price of Satyam scandal on the stock exchange in Mumbai within a few hours slumped by almost 78 percent. The value of the company so that melted within a few months of seven billion dollars together to just under $ 500 million. The financial industry is already talking of an Indian Enron case and thus draws parallels to the fateful collapse of the U.S. energy trader.