Satam Scam Case Study

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Satyam Scam & Its Impact on Business

Satyam Computer Services Limited was incorporated initially as a Private Limited company. It provided software and technology related consultancy services to other large corporations.
Initially it was incorporated as a private Limited co. The company was promoted by B Rama Raju and B ramalinga Raju. Later the company was converted into Public Limited Company. During the year 2 offices were setup in USA and Japan. It was an IT company based in Hyderabad. Earlier the company was listed in National Stock Exchange and Bombay Stock Exchange. It offered a range of services, including software development, system management packaged software integration and engineering design services. The company has set up two software Technology Parks, one at Mayfair Centre, Secunderabad and other at Qutuballapur of Ranga Reddy Dist. of A.P. The company also developed a software Development center in Bangalore. Satyam has strategic technology and marketing alliances with over 50 companies. Apart from Hyderabad, it has development centers in India at Bangalore, Chennai, Pune, Mumbai, Nagpur, and Delhi.

Satyam scam was one of the India’s biggest corporate frauds where Satyam computer services limited caused loss to the investors of about
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The press is pointing out that many Indian companies could have similar hidden problems. If investors get suspicious, this could severely damage the corporate sector and the country’s chances of getting back to 9 percent growth. My guess is that Satyam itself will not survive. It already has liquidity problems. It has a large number of corporate customers, who are locked in to Satyam in the short run, but who will each be looking for an alternative: they cannot afford to rely on a firm that may not survive. The only exit strategy here is probably a buyout, which will allow a complete replacement of Satyam’s discredited senior

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