Byrraju ramalinga raju biography of michael

Charles Ranked on the list of most popular Entrepreneur. Also ranked in the elit list of famous people born in India. Byrraju Ramalinga Raju celebrates birthday on September 16 of every year. A botched acquisition attempt involving Maytas in December led to corporate governance concerns among Indian investors and plunge in the share price of Satyam.

The former Satyam business is now part of Tech Mahindra , after the Indian network services specialist acquired Satyam and its IT services expertise. Raju was arrested and in , six years after a case was filed, he was sentenced to seven years in jail for criminal cheating and conspiracy. Raju resigned from the Satyam board after the Satyam Scandal, admitting to falsifying revenues, margins and over Rs 5, crore of cash balances as the company.

What is Byrraju Ramalinga Raju doing now? Where is Satyam now? What happened to Raju? What went wrong in Satyam case?

Byrraju ramalinga raju biography of michael

More Entrepreneurs Oliver. Oliver Power Grant. Emma Mumford. Elizabeth Blau. Indian businesses often fudge accounts to conceal profits and reduce tax incidence. But Raju could do it the other way around and inflate profits. Since all the profits came from exports, everything was exempt from income tax. The point of inflated revenues and profits was that it boosted the company's valuations and shareprices.

Thus, it raised the value of the Raju family's equity holdings. This fraud worked fine while the company had genuine growth which masked the falsification. But by the end of calendar , the US subprime crisis had hit profitability. The non-existent cash in the reserves amounted to over Rs 5, crore. In reality, SCS was finding it hard to meet dues of a few hundred crore.

It was borrowing. Raju also pledged his own shares to raise money to pay creditors. That gigantic hole in the balance sheet had to be plugged before the next quarterly results were reported. SCS had struggled in the July-Sept quarter. It looked likely to make losses in Oct-Dec It did actually make losses according to recast accounts.

It would be logically difficult to explain to investors why SCS was borrowing, when it had huge cash reserves. Sharper scrutiny of the accounts would, of course, lead to a can of worms being unearthed. Raju tried a desperate gamble. The Raju family also controlled an infrastructure and construction company, Maytas Satyam spelt backward.

Maytas was run by Raju's son, Teja. Maytas was reasonably profitable and it had been used to make an ambitious real estate play. Maytas had offered to build the proposed Hyderabad Metro for free it actually offered to pay the state government for the privilege. Land along the proposed alignment of the metro had been bought by hundreds of shell companies, mostly incorporated in Mauritius.

It could be assumed that the value of that prime real estate would multiply several times over once the metro started. In the letter, which he later retracted, Ramalinga Raju had said that whatever he did was to avoid the takeover of the company by others on account of poor performance. But he ended getting devoured by the same timer. After trying his hands at various businesses including hotel, spinning and real estate, Raju entered the sunrise IT industry in by launching Satyam Computer Services with 20 employees.

However over the years the company prospered and grew to become one of the top three IT companies in the country employing 53, employees with of the Fortune companies among its clients. A media shy Ramalinga Raju headed the company as its chairman from until when he self-destructed himself and his company, which he had brought in to being and nurtured.

What caused the downfall of Satyam and Ramalinga Raju will be subject of debate and research for decades to come. Rotman Magazine. Winter Retrieved 22 December The Satyam Saga. Business Standard Books. The Indian Express. Retrieved 13 April Retrieved 19 April Financial Times. The Times London. News International Limited. Archived from the original on 12 June Retrieved 8 January Eastern Book Company.

Retrieved 16 November Archived from the original on 23 September Retrieved 7 January Retrieved 10 January Archived from the original on 22 January Retrieved 15 January The Hindu 28 October The Hindu 10 April Retrieved on 10 April Retrieved 11 February India Today. Great Recession. Automotive industry crisis California budget crisis Housing bubble Housing market correction Subprime mortgage crisis.

Rothstein Allen Stanford.