Satyam Raju ....History

Ramalinga Raju

Ramalinga Raju

Born	September 16, 1954 (1954-09-16) (age 54) Bhimavaram, Andhra Pradesh, India
Residence	Hyderabad, India
Nationality	Indian
Occupation	former Chairman, Managing Director of Satyam Computers
Net worth	▲ US$495 (2004)^[1])
Spouse(s)	Nandini

Dr. Byrraju Ramalinga Raju (born September 16, 1954) is immediate past Chairman of Satyam Computers. Satyam was established by Ramalinga Raju and others and was until recently perceived to be amongst the top Indian IT vendors with over one billion dollars in revenue. On January 7, 2009, Raju resigned from the Satyam board after admitting to corporate fraud.^[2][3]

// Early life, Education and Family

Raju was born to Byrraju Satyanarayana Raju in Bhimavaram. He did his B.Com from Andhra Loyola College at Vijayawada prior to receiving an MBA degree from Ohio University. He has attended the Owner/President course at Harvard. For his achievements and contribution to society, he has been awarded Doctorate by Anna University Chennai on 14 Dec 2007. He has two brothers and a sister. Raju is married to Mrs. Nandini. They have two sons, Mr.Teja Raju and Mr.Rama Raju, and a daughter, Mrs. Deepti, who is married.^{1[citation needed]}

Career

Raju founded Satyam in 1987 after venturing earlier into other businesses such as construction and textiles. Some of them are reported to be failed ventures. He learned a great deal during his time at OU^{[clarification needed]} and in the United States. During that time he foresaw the upcoming trend of outsourcing and the future prominence of computers. He started an IT company with 20 employees and bagged IT projects, mostly from US companies. Satyam rapidly developed and became a multinational company with thousands of employees spread over many countries. Raju showed a strong social orientation and has been furthering the cause of social transformation through Byrraju Foundation and EMRI EMRI.

Fraud

In January 2009 Raju indicated that Satyam's accounts had been rigged over a couple of years.^[4] The botched acquisition attempt involving the company Maytas in December 2008 led to a plunge in the share price of Satyam and started unraveling the fraud.^[4] It eventually ended in Raju admitting to the accounting fraud to the tune of 7000 crore Rupees or 950 million pounds, and resigning from the Satyam board on January 7, 2009.^[5][6] The Indian subsidiary of PricewaterhouseCoopers was the auditor of Satyam.

In his letter of resignation Raju explains how a cover-up for a poor quarterly performance escalated: