Satyam gets extension for filing financial results

The company could stand to lose new business, say analysts

Indian outsourcer Satyam Computer Services has received permission from the country's Company Law Board (CLB) to delay to Sept. 30 the filing of its 2008 and 2009 financial results.

The filing of the results has been pending since a financial scandal hit the company in January last year.

The delay could cost the company, particularly in terms of new business, said Anthony Miller, managing partner at U.K. financial research firm TechMarketView, said on Thursday.

"It is hard to see how customers, and particularly new customers, will be prepared to do business with a company for which they have no sense of the financials or key operating metrics," Miller said.

Satyam applied to the CLB last month asking for an extension of the deadline to file its results. In October last year, the CLB had extended the deadline for filing to June 30.

Satyam was plunged into a financial crisis last year after its founder and former chairman, B. Ramalinga Raju, disclosed that the company's revenue and profits had been inflated for several years. A board, appointed by the Indian government, ordered the company's accounts to be restated, and also invited bids to select a strategic investor for the company.

Tech Mahindra, another Indian outsourcer, acquired a 43 percent stake in the company last year.

Satyam's chief marketing officer Hari Thalapalli said last month that the restatement of the accounts was delayed because of a court decision that gave Satyam and its auditors only limited access to the company's financial data, which is in the custody of the country's Central Bureau of Investigation (CBI).

The CBI is investigating the role of Raju and some other former key executives of Satyam in the fraudulent accounting at the company.

If there is a problem that is causing a delay, the new management at Satyam should fix it, because the longer they leave the disclosure hanging, the more customers who have a deal to be done will go to competitors, Miller said.

Satyam as a company has not lost its reputation after the financial crisis, although the top management at the time did, according to Miller. A number of customers continue to do business with Satyam because they have confidence in the capabilities of the company, he said.

But it will become more difficult for the company to pick up new customers and to renew existing business if it does not disclose its results quickly, Miller said.

Some analysts have suggested that Satyam should release at least some indications of operating performance for the period after the new management took charge at the company. The company is not able to disclose even summary data in the interim because it is in a "silent period," Thalapalli said.

Besides the extension to Sept. 30 for the publication of the financial results for the years ended March 31, 2009 and March 31, 2010, the CLB has also given Satyam an extension to Sept. 30 to publish its financial results for the quarter ended June 30.

Join the PC World newsletter!

Error: Please check your email address.

Tags business issuessatyam computer servicesservicesoutsourcingfinancial results

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

John Ribeiro

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?