ECONOMIC Environment

Social

 
A system & process which
embraces organizational structure
Ensures that company works in
the best interest of stakeholders
Denotes direction and leadership
Explains the relationship between
directors , owners & managers
 It attempts to put a check
on working of an
organization
Holds the balance
between economic and
social goals
It ensures timely flow of
all information to board
of directors
Corporate Governance
a brief explanation
by Mr. Godrej


Incorporated as
private
limited company


Recognized as a public
limited company;
and First Appeared on the
Bombay Stock Exchange
(BSE)
 

Satyam signs joint venture

with Dun & Bradstreet for IT
Services
Awarded ISO 
Certification


Satyam Infoway (Sify) becomes

the first Indian Internet company
listed on NASDAQ
Satyam forms joint venture with
TRW Inc.
Presence established in 
countries
 '

Satyam receives National

HRD Award from Indian
government
Dataquest names
Ramalinga Raju IT Man
of the Year
 ' - ''

Satyam becomes worlds first

ISO ' company
Headquarters established in
Singapore
Satyam BPO launched in
Hyderabad
 '

Adopts new tagline
Business Transformation.
Together.
Becomes the first
company to be invited by
the National
Stock Exchange (NSE)

  
  

Satyam Computers had

on December ,'
,
announced that it will
acquire two group firms
w
   and
w
 

 The BOD of Satyam had
approved the founders
proposal to buy

stake in Maytas
Infrastructure and

in Maytas
Properties.
 The total Amount for
both the acquisitions was
expected to be
  
 Consist of
   for the

Share in
w
  
 Maytas Properties Ltd

One of the reasons for

the complete failure of
Maytas properties is the
ongoing economic
slowdown and real
estate market slop
    for the

Share in
w
 

 w
 

The company is started in

 now run by the sons
of RamalingaRaju
The main reason for the
complete failure of Maytas
Infra is due to the disaster
of Satyam
Satyams justification for
Maytas buyout deal
the integrated
organization would be
stronger , and more
diversified to deal with
the uncertainty of the
market.
 This is the move goes to the
real violation of corporate
governance laws
This deal is not profitable
for investors .So after this
announcement they started
to raise their voices against
the deal
WHY HE FAILED????
 Company announced
Acquisition of
stake
in Maytas Infra and

stake in Maytas
Properties on th Dec
'
but The deal was
not profitable for
investors
 This was mainly
done to hide the
irregularities in the
accounts of
Satyam
 He tried to fill the
gap b/w actual
profits of the
company and the
profits that were
shown in records,
balance sheets etc.
 The deal was not
profitable for
investors.
investors put down
carelessly Satyam's
stock
6
 he confessed
_    
the frauds made by
him for showing
inflated profits in the
balance sheet
 According to the
confessional
statement of Mr. Raju,
the balance sheet
manipulation was
more than 
crore
NDTV report
 V

V 
V

 Simple
manipulation of
revenues and
earnings 
 
 
Raising 
 for services
that were 

Operating profits
were artificially
boosted from
the actual
  crore to
  crore.
 Operating Profit










'




Actual Op Reported Difference
 Auditors missing in

do bank reconciliation to check

whether the money has indeed
come or not.

check bank statements and

certificates.
 So was this a total
lapse in
Supervision or
were in the bank
statements ,no one
knows is it fraud
   

The SEBI had in

December given a clean
official note to Satyam in
an investigation on
violation of corporate
governance law.
 V  w  
 

6      
 

    

  
     
 

     

    

L&T deals
  w  
  

Tech Mahindra is
paying   crore
for a 
share in the
company, or  per
share.

 !