Satisfied with its three-year transformation journey from the once scam-hit Satyam Computer, Mahindra Satyam has said the customers who had left it during uncertain times are returning back to its fold.
“Our clients who left us during the uncertain times have started returning to the Mahindra Satyam fold. Clients that had imposed an embargo on awarding fresh projects to us, have since revoked their decision,” Chairman Vineet Nayyar said.
Addressing the Mahindra Satyam shareholders in his annual letter, Nayyar further said: “We are quite happy with our current situation as we can now focus on business without the distraction of lawsuits”.
Mahindra Satyam is currently in the process of getting merged with Mahindra group’s another IT firm Tech Mahindra. Nayyar said the company has seen a lot of positive sentiment among the stakeholders following the merger announcement with Tech Mahindra.
“We have received approval on the merger from the stock exchanges and the Competition Commission of India (CCI). We appreciate the overwhelming support of the shareholders in endorsing the merger, which now awaits the approval of the High Courts of Maharashtra and Andhra Pradesh.
“We are currently aligning our processes and would ensure a seamless integration of all systems, processes, best practices across our delivery, approach, customer centricity, and Associate (employee) delight,” he said.
Nayyar said the fiscal year 2011-2012 was a year of steady growth for Mahindra Satyam and it maintained the promising note with which the year had begun. “The global situation has been tense and customers are focussed on sustainability of benefits and are looking at strong and reliable partners who will enable growth.
“We find ourselves increasingly well-positioned to capitalise on the changing demand cycle,” he said, while citing the recent contract wins from a leading precious metals and financial services group of companies.
On the legal front, Nayyar said, the company has settled some claims while one matter was awaiting judicial decision. “We have also issued a bank guarantee in favour of the Income Tax Department, while vigorously contesting its claim to levy tax on fictitious income,” he said.
The country’s biggest ever accounting fraud came to light at the erstwhile Satyam in 2009 after its then Chairman and founder B Ramalinga Raju admitted to inflating cash and bank balances, non-existent accrued interest, understating liabilities and overstating debtors position at the company.
Thereafter, the government stepped into the matter and conducted an auction for sale of the IT firm, pursuant to which it was acquired by Mahindra Group and later got renamed as Mahindra Satyam. The investigations into various aspects of the corporate fraud are still continuing.