|
|
|
|
|
Mahindra Satyam Provides Update Regarding Recent Press Reports
Published Dec 5, 2009
|
Mahindra Satyam (the brand identity of Satyam Computer Services Ltd. — NYSE: SAY) (the “Company”) today commented that it is aware of recent press reports that the Central Bureau of Investigation (“CBI”) of India has filed a supplementary ‘chargesheet’ against certain individuals in connection with the financial irregularities confessed by Mr. Ramalinga Raju, the former Chairman of the Company on January 7 of this year. A chargesheet is a formal document of accusation prepared by a law-enforcement agency in India. The Company wishes to point out to investors that reported allegations regarding the magnitude of investor harm or historical misstatements in the Company’s accounting records do not necessarily shed light on the present financial position and liabilities of the Company. This release is intended to clarify this issue.
With respect to the financial position of the Company, as previously reported, pursuant to orders from Hon’ble Company Law Board of India, the Company has been given extension for filing of returns/documents which are required to be filed with various statutory authorities under various statutes, whether already due or to become due, until June 30, 2010. This extension would also apply to publication of quarterly financial reports as required by the listing agreement, whether overdue or to become due.
The Company is currently defending certain lawsuits in the United States of America. The Company cannot currently quantify its potential liability in those lawsuits.
In India, as previously reported in a Form 6-K filed with the U.S. Securities and Exchange Commission on November 17, 2009, Mahindra Satyam has received legal notices from 37 companies claiming a refund of Rs.1230 crores (equivalent to approximately USD 265 million at exchange rate of Rs.46.47 per US Dollar), allegedly given as a temporary advance. The notices claim the money back to allegedly repay their creditors, some of which include Maytas Properties Limited and Maytas Infra Limited. The confession letter dated January 7, 2009, of the former Chairman of the Company also refers to a net amount of Rs.1230 crores arranged to the Company by the 37 companies. On November 14, 2009, Mahindra Satyam replied to the legal notices stating that the claims are legally untenable.
The Company is also aware of recent press articles reporting that the supplementary charge sheet states that those accused of the financial irregularities forged board resolutions and obtained loans of Rs.1,220 crore (equivalent to approximately USD 264 million) from banks without proper authorization. The Company is not currently aware of the full details of these alleged loans and so cannot assess at this time their potential impact on the Company, if any. However, to date no claims or demands in this regard have been asserted against the Company by any bank.
For more information:
see www.mahindrasatyam.com
Follow us on Twitter:
http://twitter.com/mahindra_satyam
Posted by
VMD - [Virtual Marketing Department]
|
|
|
