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Mahindra Satyam announces settlement with SEC
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| Hyderabad, 6 April, 2011: Mahindra Satyam, a leading global consulting and IT services provider, announced today that it had reached a settlement with the United States Securities and Exchange Commission (“SEC”), without admitting or denying allegations of any wrongdoing, which concludes the SEC’s investigation of accounting issues as to the Company. This settlement relates to an accounting fraud perpetrated by the Company’s former management from at least 2003 through September 2008. All of the misconduct transpired under previous management prior to the nomination and appointment by the Government of India of new directors for the Company on January 11, 2009, and prior to the strategic investment by Venturbay Consultants Private Limited, a subsidiary controlled by Tech Mahindra Limited, that was completed in July 2009. |
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| In its press release, the SEC referred to “the unique and significant remediation efforts made after the fraud became public in 2009” and stated that Mahindra Satyam had been transformed “into a new company with new management, directors and investors and state-of-the art controls.” |
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| Vineet Nayyar, Chairman, Mahindra Satyam, said, “We concluded that it is in the best interests of Mahindra Satyam and its shareholders to resolve this matter and put it behind us on the basis announced today. The new management of the Company are committed to the highest standards and we will never betray the trust of our investors.” |
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| Under the terms of the settlement, the Company consented to the entry of a judgment requiring it to pay a civil penalty of $10 million, comply with the US federal securities laws, hire an independent consultant, and comply with certain undertakings. |
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| About Mahindra Satyam |
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| Mahindra Satyam is a leading global business and information technology services company that leverages deep industry and functional expertise, leading technology practices, and an advanced, global delivery model to help clients transform their highest-value business processes and improve their business performance. |
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| The company's professionals excel in enterprise solutions, supply chain management, client relationship management, business intelligence, business process quality, engineering and product lifecycle management, and infrastructure services, among other key capabilities. |
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| Mahindra Satyam is part of the $11.1 billion Mahindra Group, a global industrial federation of companies and one of the top 10 business houses based in India. The Group’s interests span automotive products, aviation, components, farm equipment, financial services, hospitality, information technology, logistics, real estate and retail. |
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| Mahindra Satyam development and delivery centers in the US, Canada, Brazil, the UK, Hungary, Egypt, UAE, India, China, Malaysia, Singapore, and Australia serve numerous clients, including many Fortune 500 organizations.
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| For more information, see www.mahindrasatyam.com |
| Follow us on Twitter: http://twitter.com/mahindra_satyam |
| For clarifications, write to us at: MediaRelations@mahindrasatyam.com |
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| Safe Harbor |
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| This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Mahindra Satyam undertakes no duty to update any forward-looking statements. |
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