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Satyam puts HR value at Rs 5.48 billion

The company, which has brought out a separate balance sheet with its two important intangible assets for the first time, has also presented its annual statements in substantial compliance with the 'Generally Accepted

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Accounting Principles of USA, or the US GAAP.

B Ramalinga Raju, chairperson, Satyam Computer, has said the company has gone for substantial compliance with GAAP to provide additional information to the FIIs, OCBs and NRIs who hold 30 per cent of the equity share capital of the company.

Satyam has used the Lev and Schwartz model for computing the human resources value.

HR value is the present value of future earnings up to retirement age. In this model, earnings are dependent on age alone.

The brand value has been estimated at Rs 1.39 billion based on the average weighted profits for the three years ended March 31, 1998, with some adjustments.

The company has said that while tangible assets constitute 24 per cent, intangible assets form 76 per cent of the total assets of the company.

The total assets (both tangible and intangible) amount to Rs 9.11 billion for the year ended March 31, 1998. The economic value added worked out to Rs 63.5 million for 1997-98.

The company has earmarked 5 per cent of its paid-up capital for the employee stock option scheme.

- Compiled from the Indian media

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