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ICAI miffed at Satyam stake sale before accounts restatement

ICAI miffed at Satyam stake sale before accounts restatement
PTI
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First Published: Wed, Apr 15 2009. 02 47 PM IST
Updated: Wed, Apr 15 2009. 02 47 PM IST
Mumbai: Apex accounting body ICAI on Wednesday said it is “disappointed” over the manner in which the deal to acquire scam-tainted Satyam Computer Services by Tech Mahindra was announced even before the IT major’s accounts were restated.
“I am totally disappointed (over the deal). I am unable to understand how they (the authorities at Satyam) decided the value of Satyam before its accounts were restated,” Institute of Chartered Accountants of India (ICAI) president Uttam Prakash Agarwal said here.
“Today, such a large deal has taken place without finalising the accounts and assessing the current valuation (of Satyam). This is speculative activity,” he said.
Tech Mahindra emerged as a winner in the race to acquire the Hyderabad-based company with the highest bid price of Rs58 per share.
The IT firm, led by Anand Mahindra, would have to shell out about Rs2,889 crore to acquire a 51% stake in the fraud-hit company.
Agarwal said when the Satyam scam surfaced in January, people said that shareholders lost money because the books of accounts were not audited properly by chartered accountants.
He said the two sacked Price Waterhouse chartered accountants involved in Satyam’s auditing should not be blamed as they got incorrect statements from the company.
“Whenever something goes wrong with a company’s accounts, the chartered accountants (are blamed). It is a gameplan of the management,” Agarwal said.
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First Published: Wed, Apr 15 2009. 02 47 PM IST