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Satyam's account of the new entity, expected by June : Mahindra
February, 01st 2010

Mahindras said on Sunday Satyam Computers (now Mahindra Satyam) will be merged with its flagship IT firm Tech Mahindra after settlement of accounts of the new entity, expected to be completed by June this year.

"(Why) we cannot merge them (Mahindra Satyam and Tech Mahindra) now is because we do not have accounts settled. The moment we get the accounts settled, we can set the time frame," Mahindra & Mahindra Vice-Chairman Anand Mahindra told PTI here on the sidelines of the World Economic Forum here.

He said at present a 'forensic auditing' of Mahindra Satyam is being conducted by KPMG and the accounts are likely to be finalised by June.

Forensic auditing is an accounting exercise for gathering proof for probing a fraud. Satyam founder B Ramalinga Raju early last year had admitted to committing a multi-crore accounting fraud in the company.

Explaining the reasons for the forensic auditing, he said: "Because they have to go back and go on a trail."

Tech Mahindra had acquired Hyderabad-based Satyam in June last year for about Rs 2,890 crore after its founder Ramalinga Raju admitted to committing a multi-crore accounting fraud. Subsequently, the company was renamed Mahindra Satyam.

 
 
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