Financial reports not necessarily true: Mahindra Satyam

Mahindra Satyam today said its financials are not necessarily bad as has been made out, even as investors were roiled by reports that the accounting fraud in the company could be double the initial estimate of Rs 7,800 crore.

"The company wishes to point out to investors that reported allegations regarding the magnitude of investor harm or historical misstatements in the company's accounting records do not necessarily shed light on the present financial position and liabilities of the company," Mahindra Satyam said in a statement here.

After the CBI filed a supplementary chargesheet last week, there were reports that the financial scam in erstwhile Satyam Computers, led by B Ramalinga Raju, could be to the tune of over Rs 14,000 crore.

Although Satyam had reported profit for the December quarter, the new owner Mahindra has been given time until June 2010 to report financials, as per the orders of the Company Law Board of India.

This extension would also apply to publication of quarterly financial reports as required by the listing agreement, the company said.

Mahindra Satyam is currently defending certain lawsuits in the United States of America. The statement said that the company cannot currently quantify its potential liability in those lawsuits.