If you are a Mahindra Satyam investor and eagerly awaiting their results by the end of this month then you may have to wait a bit longer. Mahindra Satyam has applied to the Company Law Board seeking an extension for financial restatement till September 30.
The company has also asked for exemption from publishing quarterly financial results for the period between December 31, 2008 and March 31, 2010, and to allow to publish results for the quarter ending June 2010 by September 2010.
“We are confident that there will not be any more delays beyond September. We have limited access to the CBI documents,” said Vineet Nayyar, VC of Mahindra Satyam.
The direct fall out of the delayed financial restatement will be a delay in merger of Mahindra Satyam and Tech Mahindra by 3-6 months, so a merger can only be expected end of 2011 or even 2012.
And some market heavyweights are clearly avoiding the stock till the numbers come out.
It is a tough road ahead for Mahindra Satyam as they have to convince the clients and the investors to stay on board and a delay in restating financial results is a clear dampener.