UTStarcom, the US-based leading wireless equipment and phone maker, has ordered an internal investigation "surrounding the circumstances of a $22 million contract it had signed with an Indian telecom company in 2002."
The revenue of this contract was realised during several of quarters from 2003 to 2005.
Incidentally, UTStarcomm's top management in India -- Ruchir Godura, managing director, South Asia, Navdeep Manaktala, senior marketing manager, India and Saarc, Anil Mehndiratta, director, marketing South Asia, have all quit over the last couple of months. The reasons of their departure is, however, not clear.
Philip Christopher, president and CEO, personal communication, UTStarcom, said: "This is an internal investigation ordered by the audit committee of the board with regard to the premature recognition of revenue and other related issues".
Following the investigation, the committee will assess the findings and decide if previously issued financial statements need to be adjusted, the company said last week in a conference call with investors in the US.
The company has also put in place a new management team in India -- with Vijay Yadav in the place of Godura, Menresh Kapoor as the new head for marketing, Saarc, Mohit Kapoor, sales director, South Asia and Rachana Panda, head corporate communications and marketing.
UTStarcomm, however, remains bullish on revenues from India. In January 2006, the company bagged the contract for supplying optical transport solutions to RailTel Corporation of India.
