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An important message from Vasant Krishnan, CFO, Mahindra Satyam
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| To whomsoever it may concern, |
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| This has reference to a recent development where the Income Tax Authorities initiated recovery proceedings for Rs 616.54 crores (USD 137 mn approx.) towards disallowance of certain foreign tax credits claimed during the fiscals 2003 to 2008, as a consequence of the financial misrepresentation that happened in the past. |
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| The Company filed a Writ Petition before the Hon’ble High Court of Judicature of Andhra Pradesh, Hyderabad challenging the said impugned order. |
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| We further inform you that today the Company is in receipt of an interim order from the Hon’ble High Court of Judicature of Andhra Pradesh, Hyderabad directing the Company to submit a banker’s cheque for Rs. 350 crores (US$ 77.78 mn) and an unconditional bank guarantee for Rs. 267 crores (US$ 59.33mn), upon which the Additional Commissioner of Income Tax shall withdraw the garnishee orders issued and defreeze the Company bank accounts. |
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| We wish to re-assure all our stakeholders that the Company has sufficient liquidity to meet its obligations and the enforcement of any such demand shall in no way hinder or impair the ability of the Company to carry on its day to day operations. |
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| We thank you for your support. |
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| Regards |
| Vasant Krishnan |
| CFO, Mahindra Satyam |
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