CLB allows Satyam to finalise accounts for 2008-09
Press Trust of India / New Delhi Oct 16, 2009, 19:38 IST
The Company Law Board (CLB) today allowed Satyam Computer (now Mahindra Satyam) to finalise accounts for 2008-2009 and also adjust past irregularities.
The CLB Chairman S Balasubramanian has permitted Satyam Computer's request to allow it to adjust "errors, omissions, misstatement and other irregularities" prior to 2008-2009 as "prior period adjustment".
Earlier in January this year, Satyam founder B Ramalinga Raju had confessed to cooking company's account books for several years leading to an accounting scam of multi-crore rupees.
The CLB also allowed Satyam Computer to present the combined annual account for 2008-09 and 2009-2010 in an Annual General Meeting of its shareholders.
At the same time, the CLB directed Satyam Computer to convene its AGM within three months of finalisation of its accounts.
"AGM for 2008-2009 and 2009-2010 are permitted to be held within three months of finalisation of the accounts for those years together,"said CLB Chairman in its order.
However, the CLB declined to grant further immunity to the Satyam CEO and CFO from any civil and criminal punitive action for any matter related to period prior to January 2009. The CLB chairman said that it would be dealt later.
Satyam Computer had filed an application seeking relief on presenting restated accounts from the CLB.
In its application the company asked CLB to "confirm and approve that Satyam should reflect the errors, omissions, mis-statements or any other irregularities what so ever identified for the period prior to financial year 2008-09 as prior period adjustment in the financial statement for the period 2008-09... Itself in accordance with the accounting standards".
I coant understand why on only the CEO and CFO have been blamed for this traversity. I would expect that the global management team was involved in the double billing, and cash overstatement as well as fraud for 7 years. Where are those executives and what are they doing now? Why has the Indian govt not pushed to extradite these peole to stand in front of shareholders and expalin why they cheated them?
With the proud Indians claiming a developed legal and investment environment, this will be a real test as I would suggest the world watch this closely to understand how far the corporations act will be enforced to give future investors confidence. I would look carefully at others in this sector to ensure the same is not an endemic practice.
Posted by: sudhir
October 19 , 2009, 18:28 IST
Well said....there are people who have contributed in their own way, to the disaster, still hanging around in Mahindra Satyam. Why has the CLB, Government and Mahindra Satyam's new management turning a blind eye to these people ???
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