Satyam appoints Deloitte as auditor, Damodaran on board

Satyam appoints Deloitte as auditor, Damodaran on board

Mumbai: IT firm Mahindra Satyam (formerly Satyam Computer) on Wednesday appointed Deloitte as auditors, within days of CBI charging Price Waterhouse of complicity in the Rs14,000 crore accounting scam.

The company also brought on board former market regulator M Damodaran, and former World Bank executive Gautam S Kaji.

“The board has also appointed Damodaran and Gautam S Kaji as members of the Audit Committee," the company said in a filing to the stock exchanges.

Deloitte Haskins & Sells, one of the two audit firms roped in by the post-scam Satyam Board to restate accounts, will vet the accounts of Mahindra group company for the 2008-09 and 2009-10 fiscals as statutory auditor.

The company, which was acquired by Tech Mahindra in April, has secured time until June 2010 from the Company Law Board to file financials, including quarterly results, in the aftermath of founder B Ramalinga Raju disclosing that he fudged accounts for years. He has since been arrested and is awaiting trial.

Deloitte is also the principal auditor of Tech Mahindra, which owns 43% in Mahindra Satyam, as well as that of Mahindra group flagship firm M&M.

Ramesh Rajan, who was Price Waterhouse’s India head, when the scam came to fore, has since stepped down.

The Mahindra Satyam Board, while naming Vineet Nayyar as chairman, also agreed to settle the forgery related lawsuits brought by British Virgin Islands based Upaid, the company’s former client.