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By | John Oates 14th January 2009 15:04

Satyam rushes into arms of new auditors

Blimey, where do we start?

Troubled outsourcer Satyam has chosen two new auditors to help management find out just how bad its financial situation is after founder and chairman Ramalinga Raju admitted he had overstated profits and cash by $1bn.

KPMG and Deloitte were named in several reports as the new auditors, although a spokeswoman for Deloitte Hyderabad was unable to confirm to the Reg that it had been appointed.

PricewaterhouseCoopers, Satyam's previous auditor, said today what the rest of the world realised sometime last week - the annual accounts it produced for Satyam may be "inaccurate and unreliable" in view of recent revelations.

The new accountants will need to find out how bad a state the firm is in and what funding it will need to continue in business.

The outsourcer employs over 50,000 people and the Indian government is considering bailing the firm out if alternative finance cannot be found.

The Indian Serious Fraud Office is starting a wider investigation into Satyam shareholders suspected of insider dealing - an early probe found large share dealings just before Raju's shock letter and resignation. ®

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