Mahindra Satyam reports 124 Crore loss in FY10
During this fiscal, the company has reported a net sales of 5481 crore. Mahindra Satyam's board met today to consider the results. Satyam Computer had earlier announced its numbers for the July-September 2008 quarter. The other income for the company remained at 106 crore and an EBITA margin of 8.3 percent.
During the declaration of the result, the entire fraud saga was revealed and the ordeals that the company has to go through. "There were two million emails, 200 bank accounts, 7000 contracts and 7,500 inflated invoices which needed to be reviewed," said Vineet Nayyar, Vice Chairman of Tech Mahindra. There was fictitious revenue of 4,807 crore, cash in bank was inflated by 327 crore and tax of 197 crore, which was unpaid, was shown as paid, Nayyar added.
Despite all, the company, which was on the verge of shutdown, could revive itself. Following Raju's revelation, the company's administration was taken over by a government-nominated board, which subsequently cleared sale of the company to Mahindra Group.
For the FY2010, the company's erosion in value of assets in subsidiaries is 77 crore. The total impact of the fraud on Satyam's profit and loss statement was 68 billion ($1.5 billion).
Tech Mahindra took over reins of the company in April 2009 and rebranded it as Mahindra Satyam. The Company Law Board had given exemption to Mahindra Satyam from publishing results for two financial years.
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