MSat to contest ED order

Published: 31st October 2012 10:39 AM  |   Last Updated: 31st October 2012 10:39 AM   |  A+A-

Mahindra Satyam (MSat) Tuesday said it will contest the Directorate of Enforcement’s (ED) latest order attaching the company’s fixed deposits worth approximately `822 crore for 150 days.

The company is currently in the process of filing an appeal.

“We wil contest it. We believe that we never had access or privy to that money. It had already been spent when we tookover.

...We know it is our money,” said Vineet Nayyar, Chairman, MSat. As of September, 2012 MSat has a cash balance of `3,062 crore.

Stating that MSat had a zero cash balance when the parent firm Tech Mahindra (TechM) tookoverin April, 2009 and that the government-appointed directors had to borrow ` 450 crore to pay salaries, C P Gurnani, CEO, MSat said money had been spent and that the company will contest it.

Meanwhile, MSat registered a 17% increase in consolidated net profit for the second quarter ended September, 2012 at `278 crore as against `238 crore posted in the same period a year ago. However, on a sequential basis net profit plunged 21% from `352 crore in June, 2012.


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