Mahindra Satyam keeping performance details under wraps, alleges L&T
19 May 2010
Diversified engineering group Larsen & Toubro on Tuesday accused Mahindra Satyam of keeping its shareholders in the dark about over details of its performance.
Pune-based Tech Mahindra, the information technology arm of the Mahindra & Mahindra group, took over the scam-hit Satyam Computer Services last year and re-named it Mahindra Satayam. Tech Mahindra owns 42.67 per cent in the company.
''As investors, we have no idea how the company has fared in the last 10-11 months. Financials is one aspect but we need to know what is happening in terms of business, employees, etc.
We have communicated our dissatisfaction to the management,'' said an L&T spokesperson. The company has made no secret that it is itching to sell its 4.58 per cent stake in Mahindra Satyam ever since it lost the bidding for Satyam Computer.
"We do not know how the underlying performance of this particular entity (Satyam) is. There is neither any information on sales, EBITDA, number of employees, nothing is known as far as this particular entity is concerned," L&T chief financial officer Y M Deosthalee said in an interview to a news channel.
"Unfortunately, I do believe shareholders are in complete darkness as to what is going on in this company ... I hope by June we will know as to what is going on," he added.