Public RelationsCLB allows Satyam to finalise accounts for 2008-09
The Company Law Board (CLB) today allowed Satyam Computer (now Mahindra Satyam) to finalise accounts for 2008-2009 and also adjust past irregularities.
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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".