Satyam gets time till March 31 to restate Q3 numbers

Source : BUSINESS LINE
Last Updated: Sun, Mar 08, 2009 05:07 hrs

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Hyderabad: Satyam Computer Services, which has got the SEBI clearance to go ahead with global bidding to induct a strategic investor, has sought time till March 31 to announce the results of third quarter ended December 31, 2008.

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The restatement has become a cumbersome exercise for the company as B. Ramalinga Raju, the former Chairman and founder of Satyam, had confessed to fudging the books for “several years.”

“Though we were supposed to announce the results a month ago as everyone else, we sought time from the regulator and the Government keeping in mind the financial crisis we were in. Acting on our request, the regulators gave us extension till March 31, 2009,” sources in the company said.

Ramalinga Raju's brother surrenders in court

The six-member board, appointed by the Government following the former board being superseded, has asked the global consulting firms Deloitte and KPMG to re-audit the company’s financials.

It is not known whether the board would go back to the regulator to seek more time for restatement as the undoing (of fudging) involved laborious work.

IBM unlikely to bid for Satyam stake

A.S. Murty, Chief Executive Officer, had earlier told Business Line that the effort would take “quite some time. We do not have a timeline on the results announcement.”

The complex restatement process has assumed significance in the wake of prospective bidders for Satyam seeking to know the asset-liability position of the company.

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All the prospective bidders — Tech Mahindra, the Spice group and L&T — wanted the company to come out at least with bare financial details that would help them assess the risks involved.

Headcount

The restatement of financials would also go along with the restatement of the number of associates. Raju’s confession of financial fudging had also cast doubts whether the company really employed 53,000 associates.


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