As it braces to announce the first quarter results and annual general meeting in August, Mahindra Satyam is still wary of the unsavoury past.
Even after clearing several legal and administrative hurdles, MSat still fears that “negative sentiment associated with brand as some potential stakeholders such as customers and employees still relate the brand with past events”.
The company, which is going to hold its annual general meeting (AGM) on August 10 here, has said that there would be no dividend for the year. “The board of directors has decided not to give any dividend due to inadequacy of profits and the brought forward debt balance in profit and loss account,” Mr Vineet Nayyar, Chairman of Mahindra Satyam, said in the annual report for 2010-11.
In the last two financial years, the company reported an aggregate loss of Rs 200 crore, with balance in profit and loss account brought forward standing at Rs 2,334.6 crore.
It will be the third successive year for investors to go without a dividend. It was in 2008-09 the company plunged into a financial crisis and the following year saw the new management clearing the mess created by its founder Chairman Mr B Ramalinga Raju.
The company has written to the Government to allow it to give Rs 12 lakh for Government for their “help in turning around the company from turmoil”.
Alluding to the difficult situations, the company said it would delay pay hikes to third quarter as against the practice of giving them in the first quarter. The management wrote emails to its 24,000 employees across the globe.
Salary hikes had hit net profits of all IT companies from Tier-I companies like Infosys to Tier-II firms like Infotech Enterprises.