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On Wednesday, top executives of Mahindra Satyam and Tech Mahindra, including Mr Vineet Nayyar, Mr C.P. Gurnani, Mr Sujit Baksi and Mr Sonjoy Anand, gathered here for three-hour long celebrations to mark the second anniversary of Mahindra Satyam under the new management.
“We have several reasons to celebrate. We have settled the issue with SEC, class-action suits and we are current according to Indian accounting norms,” Mr C.P. Gurnani, Chief Executive Officer of Mahindra Satyam, told Business Line , after emerging from the celebrations.
True, the company, which plunged into a turmoil following the founder and former Chairman of Satyam Computer Services Mr B Ramalinga Raju confessed to committing financial fraud, had more than one reason to celebrate. But this did not mean that it is out of the woods completely.
It still has to settle a demand from the Rajus that called for return of about Rs 1,200 crore that were “adjusted” by Mr Raju to the company as he rode the “tiger”.
It still had to deal with a lone Aberdeen group class-action suit. And still had to clear the tax arrear demand raised by the Income-Tax Department. A good part of top management time still goes to iron out these issues.
“When Mahindra Satyam restated its accounts late last year and reported $1.10 billion revenues, it in fact put the clock back by four years for the company financially. The senior management had to spend a lot of time on correcting operational issues,” Mr Gaurav Gupta, Managing Partner of the research firm Everest Group, told Business Line .
The real challenge, according to him, was from the client side. “Large companies had begun to reduce suppliers in the back drop of the global financial meltdown. First signs of recovery were in financial services. But Mahindra Satyam is stronger in manufacturing. Most of its revenues still come from this segment,” he said.
The other major challenge it faces is high level of attrition rate.
Qatar Contract
Meanwhile, the company bagged an Enterprise Resource Planning contract from Qatar University, the largest academic institution in Qatar. The nine-month contract would streamline the various business processes at the university.
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