Mahindra Satyam to de-list ADS, posts Q1 net at Rs 225 crore

HYDERABAD: Mahindra Satyam will de-list its American Depository Shares (ADS) from the US stock exchanges because of the company's inability to comply with the requirements of the US regulator due to the alleged accounting fraud perpetrated by its former promoter and founder Ramalinga Raju.

The company's shares, which were earlier listed on the NYSE, are currently traded on the over-the-counter exchange in the US after the fraud came to light.

The US regulator, the Securities Exchange Commission (SEC), requires companies that are listed on stock exchanges there to state accounts under US GAAP with no audit qualifications, including those related to inability of the company to provide information on prior periods affected by financial irregularities.

"The company has been unable to file the required reports after September 2008, because the financial irregularities identified for the earlier years were substantial in amount, perpetrated across multiple accounting periods affecting many areas," it said in a filing with the BSE.

Meanwhile, Mahindra Satyam posted a consolidated net profit of Rs 225.2 crore for the quarter ended June 30, 2011. Consolidated revenues stood at Rs 1,433.9 crore during the April-June quarter, up 14.9% year-on-year. During the quarter, the company added 2,172 people (net), taking total headcount to 31,438 as of June 30, 2011.