After the company’s founder admitted to the largest corporate fraud in Indian history, India’s former fourth largest outsourcer, Mahindra Satyam, posted enormous losses for fiscal years 2009 and 2010.
Mahindra Satyam’s net loss for the year ending March 2010 was $27.8 million, and in 2009, it reported a staggering net loss of $1.2 billion. Founder Ramalinga Raju came clean in January 2009 and admitted inflating company assets by $1.5 billion, which is now a number investigators believe missed the mark by at least $1 billion. The filing signed by Chairman Vineet Nayyar said:
The fictitious revenue was recorded by creation of false invoices by circumventing the normal revenue recognition cycle.
Formerly called Satyam Computer Services, Mahindra Satyam employs 27,000 thousand (down from 45,000 in 2009) and has 350 active clients.
Nayyar assured us that Mahindra Satyam “remains committed to our U.S. investors and we are as keen as ever to serve the needs of U.S. customers.”