This is a detailed Research Report about Mr. Ramalinga Raju (Satyam). It Covers:

1. Mr. Ramalinga Profile
2. A Picture Gallery showing side-By-side News from 7 most published Newspapers in India
3. Latest on His Fraud
4. Some Frequently asked questions about the after-effects of Satyam Fraud
5. Jokes on Satyam Fraud

Brief Profile:

Born: September 16, 1954
Achievement: Founder and Chairman of Satyam Computer Services Ltd; Chosen as Ernst & Young Entrepreneur of the Year for Services in 1999

Ramalinga Raju is one of the pioneers of the Information Technology industry in India. He is the founder and Chairman of Satyam Computer Services Ltd.

Ramalinga Raju was born on September 16, 1954 in a family of farmers. He did his B. Com from Andhra Loyola College at Vijayawada and subsequently did his MBA from Ohio University, USA. Ramalinga Raju had a stint at Harvard too. He attended the Owner / President course at Harvard.

After returning to India in 1977, Ramalinga Raju moved away from the traditional agriculture business and set up a spinning and weaving mill named Sri Satyam. . Thereafter he shifted to the real estate business and started a construction company called Satyam Constructions. In 1987, Ramalinga Raju founded Satyam Computer Services along with one of his brothers-in-law, DVS Raju. The company went public in 1992. With the launch of Satyam Infoway (Sify) Satyam became one of the first to enter Indian internet service market. Today, Satyam has a global presence and serves 44 Fortune 500 and over 390 multinational corporations.

Satyam achieved huge number of Awards and achievements under the leadership of Ramalinga Raju. Detail of these awards can be viewed on Satyam Website. Some of  Ramalinga Raju’s awards and  honors include Ernst & Young Entrepreneur of the Year for Services in 1999, Dataquest IT Man of the Year in 2000, and CNBC’s Asian Business Leader – Corporate Citizen of the Year award in 2002, Asian MAKE (Most Admired Knowledge Enterprise) Award 2008, Partner Innovation Award for Anti-Money Laundering (AML) solution   2007 etc.

Great Leader to Great Thief:

Amid of Economic Recession, Biggest news of 2009 start was, When Mr. Raju announced, Satyam’s Financial statements are based on lies. Raju resigned as chairman, revealing profits had been falsified for years and that $1 billion of cash on the books did not exist. With this news, Satyam badly damaged on Stock Exchange and a big question mark raised on Indian’s largest IT Company and its 53,000 Employees.

Ramalinga Raju resigned after revealing that he had systematically falsified the company’s accounts as it expanded from a handful of employees into a back office giant with a workforce of 53,000 and operations in 66 countries.

Mr. Raju said Wednesday that 50.4 billion rupees, or $1.04 billion, of the 53.6 billion rupees in cash and bank loans the company listed in assets at the end of its second quarter that ended in September were nonexistent.

Revenues for the quarter ending September 30 were 20 percent lower than the 27 billion rupees reported, and the company’s operating margin for the quarter was a fraction of what it declared, he said in a letter to the Bombay stock exchange authorities.

Satyam serves as the back office for some of the largest banks, manufacturers, health care and media companies in the world, handling everything from computer systems to customer service. Clients have included General Electric, General Motors, Nestle and the United States government. In some cases, Satyam is even responsible for clients’ finances and accounting.

The revelations will spark a major shake-up in India’s outsourcing industry, analysts say, and may force many of the world’s largest companies to investigate and completely revamp their back offices. “This development is going to have a major impact on Satyam’s business with its clients,” said analysts with Religare Hichens Harrison on Wednesday. In the short term “we will see lot of Satyam’s clients migrating to competition like Infosys, TCS and Wipro,” they said. Satyam is the fourth largest outsourcing firm after the three named.

In a four-and-a-half page statement to the Bombay stock exchange, Mr. Raju described a small discrepancy that grew beyond his control. “What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years. It has attained unmanageable proportions as the size of company operations grew,” he said. “It was like riding a tiger, not knowing how to get off without being eaten,” he wrote.

Mr. Raju said he had attempted and failed to bridge the gap, including an attempt in December to buy two construction firms in which the company’s founders held stakes. Speaking of a “deep regret” and a “tremendous burden,” Mr. Raju said that neither he nor co-founder and managing director B. Rama Raju had “taken one rupee/dollar from the company.” He said the board had no knowledge of the situation, nor did his or the managing director’s families.

The size and scope of the fraud raises serious questions about regulatory oversight in India and beyond. In addition to a listing in India, Satyam has been listed on the New York Stock Exchange since 2001, and on Euronext since January of 2008. The company has been audited by PricewaterhouseCoopers since its listing on the New York Stock exchange.

Satyam has been under close scrutiny in recent months, after an October report that the company had been banned from World Bank contracts for installing spy software on some World Bank computers. Satyam denied the allegation but in December, the World Bank confirmed without elaboration on the cause that Satyam had been banned. Also in December, Satyam’s investors revolted after the company proposed buying two firms with ties to Mr. Raju’s sons.

On December 30, analysts with Forrester Research warned that corporations that rely on Satyam might ultimately need to stop doing business with the company. “Firms should take the initial steps of reviewing the exit clauses in their current Satyam contracts,” in case management or direction of the company changed, Forrester said.

The scandal raised questions over accounting standards in India as a whole, as observers asked themselves whether similar problems might lie buried elsewhere. The risk premium for Indian companies will rise in investors’ eyes, said Nilesh Jasani, India strategist at Credit Suisse.

R.K. Gupta, managing director at Taurus Asset Management in New Delhi, told Reuters: “If a company’s chairman himself says they built fictitious assets, who do you believe here?” The fraud has “put a question mark on the entire corporate governance system in India,” he said.

News of the scandal — quickly compared to the collapse of Enron — sent jitters through the Indian stock market, sending the benchmark Sensex index down more than 5 percent. Shares in Satyam fell more than 70 percent.

Just a few months ago, Mr. Raju was trying to convince investors that the company was sound. In October, he surprised analysts with better than expected results, saying he was “pleased” that the company had “achieved this in a challenging global macroeconomic environment, and amidst the volatile currency scenario that became reality.”

But by late December, it seems he had little support from board members or investors and four of the company’s directors resigned in recent weeks. Satyam recently retained Merrill Lynch for strategic advice, a move that is generally a precursor to a sale.

Mr. Raju said in his statement that he “sincerely apologized” to shareholders and Satyam employees and asked them to stand by the company. “I am now prepared to subject myself to the laws of the land and face consequences thereof,” he said.

Heather Timmons reported from New Delhi, and Bettina Wassener from Hong Kong.

Source: NYT

This is a detailed Research Report about Mr. Ramalinga Raju (Satyam). It Covers:

1. Mr. Ramalinga Profile
2. A Picture Gallery showing side-By-side News from 7 most published Newspapers in India
3. Latest on His Fraud
4. Some Frequently asked questions about the after-effects of Satyam Fraud
5. Jokes on Satyam Fraud

After Effects of Satyam Fraud – FAQs

If you have any questions, please ask here.

1. What is the effect of Satyam Fraud on Indian BPO Sector?

Ofocurse it will affect Indian Market a little bit. But i don’t think any other country has such a large pool of trained resource as India has.  China, Brazil and Pakistan are some choices, but none of them can compete India for their cheap and trained labour.

Also scandals in one or two companies doesn’t mean that whole country is corrupt. So i don’t think its gonna effect that much. I do not believe this fiasco will have longer-term ramifications for the Indian services sector, as long as Satyam’s creative accounting turns out to be an isolated incident and not a more pervasive problem across the sector.

However a small shift of 3% or 5% can take place.

2. What is the Future of Satyam?

Satyam’s existing customers will ask questions, but are unlikely to switch suppliers, unless Satyam loses a large number of crucial operational staff in the coming weeks. However, Satyam is now at a disadvantage in winning new business in the short-term as it struggles to shake off the current controversy. Plus, some customers renewing existing agreements will be evaluating alternative service provider options. Its new leadership needs to move fast to right the ship and placate corporate accounts, and likely prepare the firm for an imminent takeover – the firm’s stock just hit a new all-time low. With Satyam’s strength across software service areas, I believe potential suitors include HP, Wipro, IBM, and possibly Genpact, whose major investor, general Atlantic Partners, may want to marry Satyam’s IT services strength with genpact’s BPO offerings. etc. Satyam also has a growing BPO competency, largely centered on procurement and supply chain support functions, which increases its potential attraction to some acquisitive competitors, as few large service providers today have a strong supply chain outsourcing portfolio.

Economic Times (Jan 20, 2009)

Market participants and business consultants are not very hopeful of the fraud-tainted Satyam Computers finding a suitable buyer any

time soon. Even if it does, the company will have to be sold at steep discounted valuations, market analysts opine.

The newly-constituted six-member Satyam board, according to media reports, is scouting for a buyer for the troubled software company.

At 12:41 pm, Satyam Computer shares were trading 1.76% higher at Rs 25.95 on the NSE. The scrip has fallen over 15% over the past one week.

“At this stage we believe it is impossible for anyone (for analysts, fund managers or for corporate buyers) to put a value on Satyam. With its brand name damaged, clients considering leaving, staff on the lookout for jobs, large bank loans pending and litigation raging in at least three continents, the accounts providing no basis to value the company, we simply can’t see which corporate buyer will want to stick their neck out,” said Noble Group’s equities head Saurabh Mukherjea.

“Whilst management can try to sell the firm, credible buyers who will actually take control of this company in the foreseeable future will be hard to find. Bits and pieces of Satyam could be sold but buying the main body of this company with the tech world already in recession-mode could be a career-limiting proposition for a CEO,” Mr Mukherjea added.

ET, on Monday, had reported that Satyam’s financial position was not as bad as was initially apprehended. The company needs Rs 500 crore in the near term to pay vendors, employees and clear other outstanding. It has receivables of Rs 1,700 crore and audit firm KPMG, which has been appointed to review and restate the company’s accounts, has begun the process of writing to customers and verifying the receivables.

The responses so far indicate that the figure is genuine and the company should get this money. In addition, Satyam owns eight campuses in India, including a 130-acre campus at Hyderabad, and it should be able to raise money against these fixed assets.

“Enough people (corporate bodies) have shown interest in buying the company, thanks to Satyam’s numerous long-term project contracts and large client list. But these people are not very sure of buying out Satyam because of their window-dressed book of accounts and other statements. Potential buyers are scared of unseen financial liabilities,” said a Mumbai-based broker.

According to a Mumbai-based leading business consultant, the board will have to first straighten the financial accounts before deciding to sell the company.

“The buyer may ask for overall legal and liability indemnity as well, at the time of negotiating the deal. With respect to valuation, considering the nature of sale, the buyer will only agree for a highly discounted price for the company. The buyer, on his part, is facing reputation risk, client risk and profitability risk if he’s buying out Satyam Computers,” the business consultant said.

This is a detailed Research Report about Mr. Ramalinga Raju (Satyam). It Covers:

1. Mr. Ramalinga Profile
2. A Picture Gallery showing side-By-side News from 7 most published Newspapers in India
3. Latest on His Fraud
4. Some Frequently asked questions about the after-effects of Satyam Fraud
5. Jokes on Satyam Fraud

Jokes on Satyam Fraud:

Joke 1:

The popular nursery rhyme, ‘Johny, Johny, Yes Papa’ has made way for “Raju Raju, Yes Baba, Cheating us, No Baba, Telling Lies, No Baba, Open your accounts, Ha Ha Ha”.

Joke 2:

Another rhyme, ‘Humpty Dumpty, sat on a wall” has been popularised even more with its Raju version: “Raju Raju sat up on the wall, Raju Raju had a great fall, Balance sheet died, shareholders cried, Raju Raju made a big fraud.”

Joke 3:

S – Stealing
A – And
T – Transferring
Y – Your
A – All
M – Money

Joke 4:

November: Ram Gopal Verma was sighted inside Taj Hotel, Mumbai
January: Ram Gopal Verma was sighted in Satyam Computers Hyderabad

Joke 5:

Joke 6:

New scene from Sholay

Jai: Mausi, ladka Satyam mein kaam karta hain
Mausi: Hai Ram! Aur kahin try kar raha hai kya?

Jai: Kahan Mausi, do saal Satyam me rahne ke baad koi company leti kahan hain
Mausi: Hai Ram to kya do saal se Satyam mein hi hain?

Jai: Haan socha tha do saal me salary hike hogi hi. Aajkal to salary bhi jyada nahin mil rahi hain use
Mausi: To kya salary bhi kam milti hain?

Jai: Ab appraisal bhi to asaani se kahaan hota hain Mausi
Mausi: Hai hai! To kya appraisal bhi nahi hota uska?

Jai: Senior se ladhai karne ke baad appraisal mein achhi rating to nahin milti hain na Mausi
Mausi: To kya seniors se ladhta bhi hain?

Jai: Ab do saal tak onsite jaane ko na mile to ho jaati hain kabhi kabhi anban
Mausi: To kya ab tak ek baar bhi onsite nahin gaya?

Jai: Ab outdated technology ke developer ki kismat mein to yehi likha hain Mausi
Mausi: Kya kaha! Ladka outdated technology mein kaam karata hai?

Mausi: Kaunse college se padhai ki hain?
Jai: Uska pataa lagte hi hum aapko khabar de denge!

Jai: To main yeh rishta pakka samjhu Mausi?
Mausi: Beta, kan khol kar sun lo! Sagi mausi hoon Basanti ki, koi sauteli maa nahi! Bhale hi hamaari Basanti call center wale Chandu se shaadi kar le, par Satyam ke employee se katai nahin karegi

Joke 7:

The name SATYAM means TRUTH; if this is the truth, God bless.

This is a detailed Research Report about Mr. Ramalinga Raju (Satyam). It Covers:

1. Mr. Ramalinga Profile
2. A Picture Gallery showing side-By-side News from 7 most published Newspapers in India
3. Latest on His Fraud
4. Some Frequently asked questions about the after-effects of Satyam Fraud
5. Jokes on Satyam Fraud

What Lates on Satyam Fraud:

NEW YORK/HYDERABAD – B. Ramalinga Raju, the founder and former head of Satyam Computer Services may have skimmed huge amounts of cash from the company, rather than padded its books as he claims, according to a report in the New York Times that cited a person involved in the Satyam investigation.

Satyam has been battling for survival since Raju resigned as chairman earlier this month, revealing profits had been falsified for years and that $1 billion of cash on the books did not exist.

Investigators looking into the fraud have found a maze of about 300 companies related to Raju that were used to siphon as much as $1 billion in cash from Satyam, the report said, citing a senior official involved in the inquiry.

The article said the picture emerging from the investigation of Satyam is very different from the one painted by Raju in a letter to Satyam’s board earlier this month.

In the letter, Raju said about $1 billion of Satyam’s cash was ‘non-existent‘ and that he had falsified its profits for years to avoid losing control of the company. Raju said neither he nor his brother, B Rama Raju, who co-founded Satyam, ‘took even one rupee/dollar from the company.’

The New York Times report, citing the person involved with the investigation, said the entire $1 billion Raju said was faked might have actually been earned by the company but then skimmed from it. A spokesman for Satyam declined to comment on the report. The report said Raju’s lawyer did not return calls seeking comment.

The Andhra Pradesh High Court Monday dismissed a revision petition of disgraced founder and former chairman of Satyam Computer Services B. Ramalinga Raju and two others, challenging a lower court’s order remanding them to police custody.

Raju’s lawyer S. Bharat Kumar told reporters that the single-judge bench of the high court upheld the order of the lower court and ruled that their interrogation by Crime Investigation Department (CID) of Andhra Pradesh police would continue.

The lawyers of Ramalinga Raju, his brother and former managing director B. Rama Raju and former chief financial officer (CFO) Vadlamani Srinivas, who were on Saturday sent to CID custody for four days, challenged the ruling on the ground that their interrogation was not required.

Their lawyers argued that CID had already seized documents from the offices and houses of their clients and that their interrogation was not required.

This is a detailed Research Report about Mr. Ramalinga Raju (Satyam). It Covers:

1. Mr. Ramalinga Profile
2. A Picture Gallery showing side-By-side News from 7 most published Newspapers in India
3. Latest on His Fraud
4. Some Frequently asked questions about the after-effects of Satyam Fraud
5. Jokes on Satyam Fraud

Picture Gallery:

[nggallery id=2]

This research is important for Muslims as well all Vegetarians of any religion.

In nearly all the western countries including Europe , the PRIMARY choice for meat is PIG. There are a lot of farms in these countries to breed this animal. In France alone, Pig Farms account for more than 42,000. PIGS have the highest quantity of FAT in their body than any other animal. But Europeans and Americans try to avoid fats.


Thus, where does the FAT from these PIGS go? All pigs are cut in slaughter houses under the control of the department of food and it as the headache of the department of food to dispose of the fat removed from these pigs. Formally, it was burnt (about 60 years ago). Then they thought of utilizing it. First, they experimented it in the making of SOAPS and it worked. Then, a full network was formed and this FAT was chemically Processed, Packed and Marketed, while the other manufacturing companies bought it. In the meantime, all European States made it a rule that every Food, Medical and Personal Hygiene product should have the ingredients listed on its cover. so, this ingredient was listed as PIG FAT. Those who are living in Europe for the past 40 years know about this. But, these products came under a ban by the ISLAMIC COUNTRIES at that time, which resulted in a trade deficit .

Going back in time, if you are somehow related to South East Asia , you might know about the provoking factors of the 1857 CIVIL WAR. At that time, Rifle Bullets were made in Europe and transported to the sub-continent through the Sea.It took months to reach there and the gun powder in it was ruined due to the exposure to sea. Then, they got the idea of coating the Bullets with fat, which was PIG FAT.. The fat layer had to be scratched by teeth before using them. When the word spread, the soldiers, mostly Muslim and some Vegetarians, refused to fight.Which eventually lead to the Civil War.

The Europeans recognized these facts, and instead of writing PIG FAT, they started writing ANIMAL FAT.All those living in Europe since 1970′s know this fact. When the companies were asked by authorities from the MUSLIM COUNTRIES, what animal fat is it, they were told it was COW and SHEEP Fat. Here again a question raised, if it was COW or SHEEP Fat, still it is HARAAM to MUSLIMS, as these animal were not SLAUGHTERED as per the ISLAMIC LAW. Thus, they were again banned.

Now, these multinational companies were again facing a severe drought of money as 75% of their income comes from selling their goods to Muslim Countries, and these earn BILLIONS OF DOLLARS of Profit from their exports to the MUSLIM WORLD .


Finally they decided to start a coding language, so that only their Departments of Food Administration should know what they are using, and the common man is left lurking in the dark.

Thus, they started E-CODES… These E- INGREDIENTS are present in a majority of products of multinational firms including, but not limited to – TOOTH PASTE , SHAVING CREAM, CHEWING GUM , CHOCOLATE, SWEETS, BISCUITS, CORN FLAKES , TOFFEES, CANNED FOODS , FRUIT TINS, Some medication Multi-vitamins, etc.

Since these goods are being used in all MUSLIM Countries indiscrimately, our society is facing problems like shamelessness, rudeness and sexual promiscuity.

So, I request all MUSLIMS or non pork eaters to check the ingredients of the ITEMS of daily use and match it with the following list of E-CODES. If any of the ingredients listed below is found, try to avoid it, as it has got PIG FAT;

E100, E110, E120, E 140, E141, E153, E210, E213, E214, E216, E234, E252,E270, E280, E325, E326, E327, E334, E335, E336, E337, E422, E430, E431, E432, E433, E434, E435, E436, E440, E470, E471, E472, E473, E474, E475,E476, E477, E478, E481, E482, E483, E491, E492, E493, E494, E495, E542,E570, E572, E631, E635, E904.

Dr. M. Amjad Khan
Medical Research Institute ,United States
ALLAH MAY FILL YOUR HEART WITH REAL HAPPINESS. AMEEN