The statutory auditor of Satyam Computer, Price Waterhouse, has said that it found no “significant risks and exposures” during its audit of the scam- hit IT firm.
The minutes of Satyam’s audit committee meeting, held on October 17, revealed today that a representative of the statutory auditor Price Waterhouse told the committee that “no significant risks and exposures have been noticed during our audit of the financial statements and as represented by the management for the quarter and six months ended September 30, 2008…”
The auditor also noted that “there have been no disagreements with management,” and their audit “is designed to obtain reasonable assurance that the financial statements are fairly stated.”
At the meeting, one of the independent directors Vinod Dham had enquired about the World Bank issue, on which the company’s then whole-time director Ram Mynampati said that “the company has been servicing them for the last 10 years and has won many accolades and appreciations from the World Bank.
Mynampati further said that within two hours of misreporting about World Bank ban, “World Bank denied the rumours. The contract with World Bank ended in September 2008 and as per the policy of World Bank, it cannot continue beyond certain period… factored in the same in our guidance.”
Another director Krishna Palepu said that despite the company’s “best performance on all fronts the same is not being reflected in the stock performance” and he advised to review “if the company is lacking in communication front to the market.” After this, T R Prasad advised “to present the performance of the stock in comparison with BSE IT index.”
