Mahindra Satyam, the Indian IT services joint concern, today released its first financial results since the ‘Raju libel’, where former chairman Ramalinga Raju admitted fraud and falsifying accounts in January 2009.
This follows the organisations manifesto last week that it would delist from the New York Stock Exchange NYSE inasmuch as it had been unable to meeting its financial reporting requirements.
Mahindra Satyam chairman Vineet Nayyar said at the time “Owing to our recently SEC filings, which are among the unfortunate results of the misdeeds of former management, we are delisting from the NYSE.”
The company today revealed that return in 2009 fell from £1.2bn, to £772m in 2010. However, privation after tax was reduced from £1.2bn in 2009 to &im~;17m in 2010.
It is understood that the extent of the fraud is at least partly responsible for the loss figures.
Despite today’s absolution, the organisation remains unable to meet its financial reporting requirements entirely and that the ongoing investigation into the fraud has contributed to the reporting let lie over.
The company was required to submit its annual report for the year ended March 31, 2009 the agency of October 15 2010, but has admitted now that it will have existence unable to meet that deadline it represented the maximum permissible time state of mind.
The company had missed several previous deadlines.
Sandeep Thawani, head of marketing and communications at Mahindra Satyam, related “It was evident to us that would not be able to effect that deadline, given that we have supervised access to our accounts things being so. All our statements, accounts and underlying data is under supervisedfrom the investigators.”
Thawani was keen to state that the house is still trading in the US “We are still trading in the US in the over-the-counter exchange and we have protected shareholder interest completely,” he claimed.
“Operationally and financially it has not at all impact on the company.”
When asked if delisting would alter confidence in the company, Thawani replied that it was too at the opening of day to say.