NYSE raps Satyam for not filing annual report

The New York Stock Exchange (NYSE) Regulation Inc, has written a letter to scam-hit IT outsourcing firm Satyam Computer Services (rebranded Mahindra Satyam) stating that the company will be included in the late filer’s list on October 22. The announcement follows Satyam’s failure to file its annual report with the US market watchdog, the Securities and Exchange Commission (SEC), by October 15.

The NYSE also warned that an ‘LF’ indicator would be appended to the company’s trading symbol and profile, date and news pages provided by the Exchange, Satyam announced in a filing to the BSE and NSE today.

The NYSE letter further advised Satyam that it would closely monitor the status of the company’s late filing and related public disclosures for an initial six-month period from the report’s original due date. The letter indicated that NYSE may, at its sole discretion, allow Satyam’s securities to trade up to an additional six months, depending on specific circumstances.

The letter further noted that regardless of the procedures described in the letter, NYSE could commence delisting proceedings at any time during the period that is available to complete the filing, if circumstances warrant.

Satyam also stated today it was in receipt of two orders from the Company Law Board (CLB) extending to June 30, 2010, the time for filing of documents — including the financial statements for the 2008 and 2009 financial years and the quarterly financial reports — with various statutory authorities in India and with the stock exchanges under the company’s listing agreements.

Dated October 15 and 16, the CLB orders further authorised the board of Mahindra Satyam to appoint statutory auditors for the 2008-09 financial year, subject to ratification by shareholders. Besides permitting it to reflect any errors, omissions, irregularities, mis-statements or any other irregularity identified for periods prior to the 2008-09 year, as prior period adjustments in the financial statements for 2008-09.