yad agre canubandhe casukham mohanam atmanahnidralasya-pramadottham

tat tamasam udahrtam

TranslationAnd that happiness which is blind to self-realization, which is delusion from beginning to end and which arises from sleep, laziness and illusion is said to be of the nature of ignorance.

SATYAM The Hidden Truth

• Satyam Scam

• Satyam – The company

• Scenario Analysis

• Recommendations

AGENDA

• Failed Acquisition Attempt

• The Bitter Truth

• Government of India Intervenes

• Effects of The Bitter Truth

SATYAM SITUATION

FAILED ACQUISITION ATTEMPT

THE BITTER TRUTH(Accounting Fraud)

GOVERNMENT OF INDIA INTERVENES• Ministry Of Corporate Affairs

• Arrest Of Satyam’s Top Management

• Legal Action

• Interrogation

• ICAI Actions Against -

EFFECTS OF THE BITTER TRUTH

• Loss in Reputation

• Financial / Operational

• Satyam Stock

• Employee Morale

SATYAMBIRD’S EYE VIEWBIRD’S EYE VIEW

Associates:- 53000 employees. Revenue:- Rs. In Crores. Geographies:- 63 countries.

BIRD’S EYE VIEWBIRD’S EYE VIEW

Client Base:- 690 Clients all over the world.

Line of Business – Software solution, BPO & IT.

Listed on:- NYSE, US and Euro next, Amsterdam, Europe in addition to BSE and NSE in India.

List of services:- Application Services

Business Value Enhancement

Consulting and Enterprise Solutions

SAP Solutions

Six Sigma Consulting

Supply Chain Management & many more.

List of industries served:- Automotive

Financial Services

Government and Healthcare

Infrastructure

Media and Entertainment

Retail & Supply Chain Management & many more.

OFFERINGSOFFERINGS

Business process

consulting

IT strategy consulting

Quality consulting

ERP Supply Chain CRM PLM e-business

Engineering & Embedded solutions

BI EAI

Application MgmtInfrastructure

services

Business Process

OutsourcingCustom built

Packaged

CONSULTING

OUTSOURCING

SYSTEM INTEGRATION

COMPANY COMPOSITION

Horizontal - Software

Verticals-Domains

JAVA, .NET, SAP, SOA, SAAS etc

CLIENTAL BASECLIENTAL BASE

OUR ACHIVEMENTS

1995 – First ISO 9001:2000.

1999 - Listed on NASDAQ.

2001 - Satyam listed on New York Stock Exchange.

2002 - Satyam wins Golden Peacock Award for Excellence in Corporate Governance.

2002 –Wins CNBC's Asian Business Leader.

OUR ACHIVEMENTS 2003 - Satyam Computer honored with prestigious

IBM Lotus Award.

2005 - Satyam acquired Knowledge Dynamics. Launched EMRI.

2006 - Achieved global certification - ISO 9001, ISO 20000,ISO 27001.

2007 - Becomes the Official IT Services Provider for the FIFA World Cups, 2010 (South Africa) and 2014 (Brazil).

• Satyam Goes Bankrupt

• Satyam Continues to Exist as an Entity

• Satyam Gets Acquired (Single Entity)

• Satyam Gets Acquired (Multiple Entities)

SCENERIO ANALYSIS

asakta-buddhih sarvatrajitatma vigata-sprhah

naiskarmya-siddhim paramamsannyasenadhigacchati

TranslationOne can obtain the results of renunciation simply by self-control and by becoming unattached to material things and disregarding materialenjoyments. That is the highest perfetional stage of renunciation.

RECOMMENDATIONS1. Interested Companies for Acquisition:-

– L & T (share%)

– Spice Group ()

– Hinduja Group ()

– Essar (Aegis BPO) ()

– iGATE ()

RISKS – 1. Satyam continues to exist as an entity

• Loss of Goodwill• Change Management• Ability to Scale-up

RISK – 2. Satyam gets acquired (Single entity)

• Loss Of Negotiating Leverage• Impact Relationship• Potential Increase In Cost• Scalability

RISK – 3. Satyam gets acquired (multiple entities)

• Service Delivery And Quality• Loss Of Senior Management• Potential Increase In Cost• Increased Challenges

RISK – 4. Satyam goes bankrupt

• Unable To Manage Operations• Employees’ Salaries• Impact On Buyer’s Business• Additional Cost for Alternate Provider (clients)

ESTIMATED PRICE FOR ACQUSITION

• Price Band Of 65 – 80 Per Share

• Net Current Assets/No Of Shares

• Bagged 15 contracts

• Other Bidders Willing To Pay What Price

OUR RECOMMENDATION –

L & T

Reasons –

L&T ACQUIRE SATYAM •De-merger L&T Infotech from the parent Company

•L&T Infotech as a different entity

•Top management of L&T Infotech would handle the working of the company

2. To gain investors trust

- Bank on L&T brand name and management

- Credit Rating of the Company

- Future expansion plans

3. To gain clients trust• Meeting the deadlines• Additional Services

4. To boost employee morale• Pay salaries on time• HR should play key role

5. Government Measures

• Sell of Raju’s personal assets• Stringent laws• Action against PWC • Focus on Corporate Governance To save Indian IT Image

FUTURE

Many more events yet to unfold …………

Hope for the best

sreyan sva-dharmo vigunah para-dharmat sv-usthitat svabhava-niyatam karma kurvan napnoti kilbisam

TranslationIt is better to engage in one's own occupation, even though one may perform it imperfectly, than to accept another's occupation and perform it perfectly. Prescribed duties according to one's nature, are neveraffected by sinful reactions.

Special Thanks to – Abhay Desai Deena PaulVanessa (from Satyam)Navin (from Satyam)Nupur KhannaSalil Lavankar

Castrol Team Tata Tea Team