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Satyam scam: Nasscom delays growth target announcement
January 11, 2009 14:13 IST
National Association of Software and Services Companies has held back its announcement on revised targets for the IT industry in the country due to the Satyam [Get Quote] fiasco, a senior industry official said.
"The revised IT industry target for FY 09 was supposed to be annouced on the same day the Satyam fiasco happened," Nasscom chairman Ganesh Natarajan told PTI in Mumbai.
"The targets were going to be announced at 11 am on that day but the Satyam scam broke at 10 am," he said.
On January 7, former Satyam chairman B Ramalinga Raju resigned admitting falsifying company accounts and understating liabilities to the tune of Rs 7,800 crore (Rs 78 billion).
"We are now planning to announce revised targets this week," Natarajan said.
In the beginning of the financial year, Nasscom had projected a 21-24 per cent growth target for the IT sector which it has revised beacuse of the slowdown.
"For the industry, revenues are important. I have not seen any data so far to suggest that the revenue outlook of the industry will change because of Satyam," he said.
"Unless we see a significant restating of accounts (of Satyam), I do not see that happening," he said.
The apex software industry body has asked member companies to make more disclosures while announcing their results.
"The Indian IT industry has very high corporate governance but we are advising all our member companies to clear doubts of their stakeholders while announcing their quarterly results," Natarajan said.
Companies should ensure that there were no lingering doubts in the minds of stakeholders, he said.
"The companies should have enough analyst meetings and and should talk about their accounts. They should do whatever they can to resolve doubts of shareholders or customers and answer all questions to the best of their knowledge," Natarajan said.
Nasscom also wants that the Satyam case does not affect the image of India Inc as far as the IT industry was concerned, he said.
"We have built this industry clearly ahead of all competitions. We want to ensure that the actions of one entrepreneur should not affect the industry," he said.
As an industry association, the most important thing for us is to reinforce India's image as the 'most trusted sourcing destination', he said.
Nasscom was ensuring every support to Satyam such as reaching out to analysts, stakeholders, employees or customers, he said.
"From Nasscom's point of view, what we are most concerned about is to ensure continuity at Satyam. . .continuity for employees and customers.
"If that continuity is broken, then it will disturb image of Corporate India," Natarajan said.
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