Date:10/01/2009 URL: http://www.thehindu.com/2009/01/10/stories/2009011059251600.htm

Business

Uday Kotak: ‘we had given a small clue’

Special Correspondent

NEW DELHI: Kotak Mahindra group Managing Director Uday Kotak on Friday maintained that Kotak Securities had, a few months ago, hinted to the kind of financial management Satyam Computer Services was indulging in.

Speaking on the issue of governance in corporate India and later to media persons, Mr. Kotak said Kotak Securities had released an advisory to investors warning them of the couple of thousand crore rupees that had been shown as existing in its current account with banks.

He said that Satyam had not satisfactorily clarified the situation to them when they had questioned the logic of not depositing such huge funds in savings deposits which could have earned them a good return in the form of interest.

Mr. Kotak said that Satyam had not even cared to give the break-up of its current account deposits with various banks.

Replying to questions, Mr. Kotak said inspections by government authorities would reveal which banks had helped them project such fictitious balances. He, however, clarified that his bank had no transaction with Satyam.

Asked if trading should be stopped in the scrip, Mr. Kotak said it was a tough call. “If you stop you run the risk of illiquidity. The other argument was you give all the information to the investor for him to take the call.”