Accountant body due to deliver Satyam report next week

The Institute of Chartered Accountants of India (ICAI) will deliver its report into the Satyam fraud on 9th July it was announced yesterday.

The ICAI investigation focused on the financial reporting, accounting and auditing aspects of the $1 billion fraud at technology service provider Satyam, and is expected to include recommendations on the plugging loopholes to prevent similar fraud.

UP Agarwal, president of the ICAI, told Indian news agency PTI that the report would be finalized by the ICAI on 4th July, and then presented to the Ministry of Corporate Affairs on 9th July, although he did not disclose its likely contents.

Last week the Serious Fraud Investigation Office (SFIO) which will present the case against former chairman Ramalinga Raju and six others, is working closely with the Central Bureau of Investigation (CBI), which is still investigating the case.

The two agencies are understood to be keen to co-ordinate their reports to ensure they do not contradict each other.

Indian authorities are also reported to have responded favourably to the Ministry of Corporate Affairs request to push through the case against Satyam as quickly as possible, including a special court that would sit on a daily basis. Since its formation in 2003, the SFIO has filed 756 cases against 30 companies, but not obtained a single court order on any case.

“We have got favourable indications from the Andhra Pradesh High Court for designating a special court on Satyam case. It will be our intent and effort to ensure that trial takes place as quickly as possible. I am hopeful that it will be done in a year,” said Salman Khurshid, Minister for Corporate Affairs.

Also last week, Satyam appointed Chander Prakash Gurnani to take over from AS Murty as CEO of Satyam. Gurnani was formerly head of international operations at Tech Mahindra, which bought Satyam in April. Subramaniam Durgashankar, formerly senior vice president for mergers and acquisitions at Mahindra & Mahindra, was appointed chief financial officer.

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