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Satyam accounts restatement likely by end-Dec: director

Satyam accounts restatement likely by end-Dec: director
PTI
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First Published: Sun, Aug 30 2009. 12 07 PM IST
Updated: Sun, Aug 30 2009. 12 07 PM IST
Mumbai: The restatement of fraud-hit Satyam Computer’s accounts is likely to be completed by end-December, a top official said.
“It is a difficult task - over eight years of accounts have to be looked at. However, we are hopeful of completing the accounts restatement by end-this year,” Satyam’s government-appointed director, C Achuthan said.
Satyam’s Founder, B Ramalinga Raju, had, last year confessed to cooking up the IT major’s accounts to the tune of Rs8,000 crore, after which the Government removed him and appointed a team of experts including Kiran Karnik, Deepak Parekh and C Achuthan, among others, on the company’s Board to bring it back on track.
Satyam was recently acquired by the Anand Mahindra-led Tech Mahindra and the brand name changed to Mahindra Satyam.
The company’s name, however, still remains Satyam Computer.
“Global audit majors, KPMG and Deloitte, are working on restating the accounts and the process should, hopefully, be completed by end-December this year,” Achuthan said.
While the company is regaining its health, both in terms of number of clients as well as employee morale, its financial-side recovery would, however, take some more time, he said.
“Financial side recovery would take some time,” Achuthan, a former presiding officer of the Securities Appellate Tribunal, said.
“The company is not yet generating enough funds to declare dividends - this will take some time. There are also some liabilities such as the class action suits against the company in the US. These will have to be resolved,” he said.
The company also has a large labour force and consequently, huge overheads. “There has to be a matching revenue-generation,” he said.
On the class action suits against the company, he said that out-of-court settlement would be preferable as that would save a lot of time in settling disputes.
“However, before taking any decision, the company’s interests will be taken into consideration,” Achuthan said.
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First Published: Sun, Aug 30 2009. 12 07 PM IST
More Topics: Satyam | Tech Mahindra | Corporate | Financials | Fraud |