Mahindra Satyam today said it will take a call on relisting on the New York Stock Exchange (NYSE) at an appropriate time, once it has closed the chapter on the massive accounting fraud perpetrated by founder and former chairman B Ramalinga Raju.
Mahindra Satyam Internal Audit Head Sunil Sangar said accounting procedures in the USA are getting converged to International Financial Reporting Standards (IFRS) and in such an event, the company will wait for a clear picture to emerge.
"It was from April 1, 2011. But it has been deferred. Relisting will depend on a couple of things. As of now we have to close the earlier period. And then we have to take a call (on relisting). It is impossible to comment at this time. First, we want to complete our commitments. Then we will take a call on that," Sangar told PTI on the sidelines of the announcement of the company's Q4 results.
The firm was forced to delist its American Depository Receipts (ADRs) from the New York Stock Exchange in October, 2010, over its inability to file restated accounts on or before October 15, 2010, as required by the US markets regulator.
While announcing the decision to delist the ADRs, Mahindra Satyam said it would go for relisting after making its accounts current as per the US standards.
The company completed re-auditing its financial accounts for the controversial period when founder B Ramalinga Raju fudged accounts and as per Indian Accounting Standards, they became current last year.
"Currently, we are in dialogue with the US Securities Exchange Commission (SEC) to figure out what areas we have problems. We hope to settle this by October and then trigger the process of relisting," Nayyar said earlier in the press conference.
