Outsourcing
Satyam to delist from New York Stock Exchange
Indian outsourcer cannot meet exchange’s deadline to submit financials
By John Ribeiro | IDG News Service | Published 11:43, 27 September 10
Satyam Computer Services will be delisting from the New York Stock Exchange (NYSE) in October, as it is not able to comply with the stock exchange's requirement to file its delayed financial results by an 15 October deadline.
The company said that it did not expect to be able to file its results on or before the deadline in accordance with US GAAP (Generally Accepted Accounting Principles) for the fiscal year ended 31 March, 2009.
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The company will apply around 4 October to the US Securities and Exchange Commission to delist its American Depositary Receipts (ADRs), and expects them to be delisted from the NYSE by about 14 October.
Satyam expects that the ADRs may, however, continue to be traded on the over-the-counter (OTC) market after the delisting from the NYSE.
The Indian outsourcer, which revealed a financial scandal in January last year, said in a separate filing to the Bombay Stock Exchange on Friday that it would announce on 29 September its financial results in accordance with Indian GAAP for the fiscal years ended 31 March, 2009, and 31 March, 2010. The company will continue to be listed on Indian stock exchanges.
Satyam's founder, B. Ramalinga Raju, said in January last year that the company's accounts had been overstated for several years. A board appointed by the Indian government soon after ordered the accounts of the company to be restated.
Another Indian outsourcer, Tech Mahindra, acquired a dominant 43 percent stake in Satyam last year, after the new board decided to bring in an investor. The company now uses the "Mahindra Satyam" brand to market its services.
Satyam officials said earlier this year that the restatement of accounts was delayed because the company had limited access to financial data in the custody of the Central Bureau of Investigation (CBI), which is investigating the role of Raju and his associates in the scandal.
However, analysts such as Sudin Apte of Forrester Research suggested that the company should at least release summary data on its current performance to reassure existing and potential customers.
