25 Feb 2009,
NEW DELHI: Audit firm Ernst and Young (E&Y) has refuted the government's allegation that it over-valued Maytas Properties and the entire valuation work was done in a day. We refute the allegation ... that E&Y spent one day to conduct the valuation of Maytas Properties Ltd and the same was overvalued. Our association with the engagement was much longer, which can be demonstrated by sufficient documentation on the matter, a spokesperson of the audit firm said.
The firm also said that it was not appointed by Satyam Computer Ltd or any of its subsidiaries to conduct the valuation of Maytas Properties. In an unrelated context, E&Y was engaged to undertake a valuation of Maytas Properties, as required under the guidelines of the Reserve Bank of India, for a proposed share transaction involving existing shareholders of Maytas Properties Ltd, it said.
On Tuesday, the government told the Company Law Board (CLB) that E&Y had undertaken the valuation of Maytas Properties, prior to Satyam s aborted attempt to buy-out the company.
How hollow this valuation is... As per our knowledge, the company does not have any land bank and this company, having a turnover of mere Rs 22 crore, was valued at Rs 6,523 crore, an official in the ministry of corporate affairs told CLB while arguing its case to supersede the board of Maytas Properties.
ET Bureau
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