Satyam suffers net loss of Rs.8,177 crore in fiscal 2009

Wednesday, September 29, 2010

HYDERABAD - Mahindra Satyam, formerly Satyam Computers, suffered a net loss of Rs.8,177 crore in fiscal 2008-09 on net sales of Rs.8,813 crore as a result of exceptional items to the tune of Rs.7,992 crore arising out of fraud-related expenses, the company said Wednesday.

Restating the financial accounts for fiscal 2009 and fiscal 2010 here, Company Chairman Vineet Nayyar told reporters here that for fiscal 2009-10, the net loss declined drastically to Rs.125 crore on net sales of Rs.5,481 crore.

Our cash balance remained at Rs. 2179 crore for fiscal 2010 and margins for the same fiscal improved to 8.33 per cent from 3.42 per cent in fiscal 2009, Nayyar said.

Admitting that the client base declined to 350 in fiscal 2010 from about 500 in fiscal 2009 after the financial scam by former management led by co-founder B. Ramalinga Raju surfaced in January 2009, Nayyar said networth, however, improved to Rs.1,800 crore as against negative networth of Rs.8,080 crore when Tech Mahindra took over the beleaguered company.

The fictitious revenue from April 2002 to September 2008 was Rs.5,352.8 crore, with 7,500 inflated invoices.

Similarly, fictitious interest income recorded from 2002 to 2008 was Rs.900 crore and fictitious exchange gain for the same period Rs.206 crore, Nayyar pointed out.

The company is expected to declare financials results for the first two quarters of this fiscal (April-June and July-September 2010-11) November 15.

— Indo-Asian News Service

Filed under: Economy

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