Menu
Satyam to delist from New York Stock Exchange

Satyam to delist from New York Stock Exchange

The scandal-hit Indian outsourcer says it cannot meet the exchange’s deadline to submit its delayed financials

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 Oct. 15 deadline.

The company said on Friday that it did not expect to be able to file its results on or before the deadline in accordance with U.S. GAAP (Generally Accepted Accounting Principles) for the fiscal year ended March 31, 2009.

The company will apply around Oct. 4 to the U.S. Securities and Exchange Commission to delist its American Depositary Receipts (ADRs), and expects them to be delisted from the NYSE by about Oct. 14.

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 Sept. 29 its financial results in accordance with Indian GAAP for the fiscal years ended March 31, 2009, and March 31, 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 per cent 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.


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags outsourcingregulationbusiness issuesservicesfinancial resultssatyam computer servicesSEC FilingsNew York Stock Exchange

Events

Featured

Slideshows

Channel kicks 2021 into gear as After Hours returns to Auckland

Channel kicks 2021 into gear as After Hours returns to Auckland

After Hours made a welcome return to the channel social calendar with a bumper crowd of partners, distributors and vendors descending on The Pantry at Park Hyatt in Auckland to kick-start 2021.

Channel kicks 2021 into gear as After Hours returns to Auckland
The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards

Hundreds of leaders from the New Zealand IT industry gathered at the Hilton in Auckland on 17 November to celebrate the finest female talent in the Kiwi channel and recognise the winners of the Reseller News Women in ICT Awards (WIICTA) 2020.

The Kiwi channel gathers for the 2020 Reseller News Women in ICT Awards
Show Comments