Mahindra Satyam (Satyam Computer Services) by mbr642


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									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 April 13, 2009.

Industry Presence
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

Offices of Mahindra Satyam Across The Globe
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

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]

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

February 11, 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]

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 2700 crore for both.[18] Tech Mahindra announced its merger with
Mahindra Satyam on March 21, 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 June 8,2012 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
The Income Tax Department had issued notices to the company seeking 617 crore 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 February 3, 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
1,037 crore and 1,075 crore 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]

The company had reported a consolidated net loss of Rs 233.3 crore 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 Rs 30 crore compared to Rs 26 crore. “We
will take three [years] for a turnaround,” he informed.[28] Even though the company got 245
crores profit in Q4 for 2010–2011, but due to outside payments nearly 570 crores for
SEK,UPAID and Class Action Suit in Q4 (Total 641 crores for the year 2010-2011 ),the
company had reported a consolidated net loss of Rs 327 crore for the January–March quarter
of 2010-2011.IT firm Mahindra Satyam posted a consolidated net profit of Rs 225.2 crore for
the quarter ended June 30, 2011. During the quarter, the company added 2,172 people (net),
taking total headcount to 31,438 as of June 30, 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 September 30, 2011 during which net addition of 654 personnel took place.[30]
The company added 188 employees in quarter three ending December 31, 2011 and recorded
29.4% quarter-on-quarter in its consolidated net profit of 308 crore .[31] Mahindra Satyam
reported a net profit of 534.21 crore for the fourth quarter ended March 31, 2012. [32]

Recent news and developments
Mahindra Satyam will acquire a minority stake of 15% for 35 crore 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.
             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]

Maytas acquisition

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 3,400 crore in the related
panic selling. The USD $1.6 billion ( 8,000 crore) acquisition was met with skepticism 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

Main article: Satyam accounting scandal

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

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