CORPORATE GOVERNANCE

FAILURE AT SATYAM:
A CASE STUDY
 1.Alacapa, Ayeza Marie
Catubay, Eunice
2. Dela Peña, Crystal Jay Doña,
Jased Dova Mangubat, Steve
Ryan Pableo, Nicole
3.Pang, Jacky Sanchez,
Hans Christopher
4.Sedoro, Quenilyn
Tejano, Chelly
5.  
TABLE OF CONTENTS

01 INTRODUCTION

02 ANALYSIS

03 CONCLUSION AND
RECOMMENDATIONS
01 INTRODUCTION

Satyam Computer Services

Ltd often referred to as
“Satyam” was founded on
June 24, 1987, by two
brothers, B Rama Raju and
B Ramalinga Raju.
4 SUBSIDIARIES

01 02

Satyam Satyam Enterprises

Renaissance Solutions
Consulting LTD Pvt. Ltd.
4 SUBSIDIARIES

03 04

Satyam Infoway Satyam Spark

Pvt. Ltd. (Sify) Solutions
1997 Satyam Computer Services Ltd was named one of India's most amazing
and fast rising entrepreneurial enterprises by the World Economic Forum
and World Link Magazine.

2001 Satyam was the first ISO company to be certified by BVQI.

2005 Satyam was placed third in the Global Institutional Investors

Corporate Governance Survey
STATEMENT ● Failure of Independent
Directors
OF THE ● Problems with Disclosure and
Transparency
PROBLEM
STATEMENT ● Failure in CEO role
● Failure of Audit Committee
OF THE and the Internal and External
Auditors
PROBLEM
 ALTERNATIVES TO TAKING
02 ACTION

● Assigning responsibilities
● Including Independent Supervisors
in the Process
● Intervention by the Government
 THE BEST COURSE OF
02 ACTION RECOMMENDED

● Intervention by the Government is

the most useful one despite being
time and cost-consuming.
 CONCLUSIONS AND
03 RECOMMENDATIONS

• The company had a healthy balance

sheet and financials showed a
significant increase in turnover for
its first eight years.
• The fame and success they
achieved were short-lived as it
suffered a huge setback.
 CONCLUSIONS AND
03 RECOMMENDATIONS

• This attested that poor corporate

governance in companies
potentially result in bringing down
the entire company or even the
credibility of the governance of a
country.
 CONCLUSIONS AND
03 RECOMMENDATIONS

• The Satyam case, in particular,

emphasizes the issue of ethics and
responsibility in business.
• the most ideal solution to stop this
unfavorable event from reoccurring
is to adopt more government
intervention
Thank you for listening.