Satyam board to consider much-delayed accounts
- — 21 September, 2010 19:20
The board of Satyam Computer Services, the Indian outsourcer involved in a financial scandal, is meeting on 29 September to consider financial results of the company that were delayed after the scandal.
Satyam's board will meet to consider the audited financial results for the years ended 31 March, 2009 and March 31, 2010, according to the National Stock Exchange of India.
Satyam had earlier received permission from India's Company Law Board (CLB) to delay to 30 September the filing of its 2008 and 2009 results. In October last year, the CLB had extended the deadline for filing to 30 June.
The board meeting to consider the results is an indication that the company may finally present its results for the two fiscal years. It is not clear whether Satyam's board will also consider results for the quarter ended 30 June this year.
The company did not immediately respond to email and calls requesting comment.
Satyam was plunged into a financial crisis last year after its former chairman and founder, 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 per cent stake in the company last year. Satyam now uses the "Mahindra Satyam" brand to market its services.
A number of analysts have pointed out that to regain customer confidence after the scandal, Satyam had to disclose some financial data to customers and the public.
It will become more difficult for the company to pick up new customers, and renew existing business if it does not disclose its financials quickly, Anthony Miller, managing partner at TechMarketView, a U.K. research firm, said in July after Satyam got an extension from the CLB to file its results by 30 September.
Satyam officials however said that the restatement of the accounts was getting delayed as the company had limited access to 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. Raju was released on bail last month in a case that has dragged on for over a year, and has as yet to reach the trial stage.