Satyam suffered incredible loss due to previous mgmt: Chmn

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Satyam suffered incredible loss due to previous mgmt: Chmn

Mahindra Satyam has files suit against former board of directors, certain former employees and auditor Price Waterhouse. Vineet Nayyar, chairman of Mahindra Satyam says, the company has suffered incredible loss.

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Excerpts from Reporter's Diary on CNBC-TV18 Watch the full show » ALSO READ See latest News about Mahindra Satyam See previous management interviews See what other Experts & Brokerages are saying about Mahindra Satyam Mahindra Satyam BSE | NSE 28/05/12 Are Mutual Funds betting on Mahindra Satyam?

Mahindra Satyam has filed suit against former board of directors, certain former employees and auditor Price Waterhouse seeking damages for perpetrating fraud. The suit has been filed in Hyderabad City Civil Court.

In an interview to CNBC-TV18, Vineet Nayyar, chairman of Mahindra Satyam says, the company has suffered incredible loss. "We suffered losses in customers, reputational loss and specific losses in terms of class action suit. These are all significant damages," he adds.

Also read: Mahindra Satyam sues former board, auditor

Below is the edited transcript of the interview. Also watch the accompanying video.

Q: What's the nature of the suit that's been filled and against whom?

A: It is a suit that Satyam has filed against previous management including the chairman and managing director, PwC for causing considerable damage to the company.

Q: We believe that you have sought damages as well in the civil suit that you have filed, could you elaborate on that?

A: We believe that the company has suffered incredible loss. That has been established, in our view, both by confession made by the previous chairman as also by the forensic audit, which we got conducted. We suffered losses in customers, reputational loss and specific losses in terms of class action suit. These are all significant damages.

Q: What sort of monetary damages, if at all, are you seeking?

A: We know the damages, which have been caused to us, in terms of penalties, class action suits, penalty imposed by SEC, as also Upaid. On top of that, there are damages because of loss of clients and loss of business.

Q: You said you have suffered loss of customers' reputation, class action suits. What's the plan of action now? We believe that the civil suit has been filed, but are you expecting any sort of response from these broad of director members against whom the suit has been filed, also the certain former employees also who are named in the suit?

A: Yes, those employees were the ones who actually colluded and made this fraud possible. It includes the CFO and his other colleagues in the finance department.

Q: What about Price Waterhouse? What kind of a response are you expecting from them because we believe your suit is named the entire auditor Price Waterhouse in your legal suit?

A: It is our belief that this fraud would not have been possible, but for the criminal negligence and infact collusion of the auditors.