Indian investigators are poring over the records of Hyderabad-based Satyam Computer Services following allegations of accounting irregularities.

The Department of Company Affairs (DCA), the government's main corporate watchdog, said it had received complaints from "shareholders and others".

The accusations claim that Satyam directors invested money improperly in subsidiaries which underperformed, that the company evaded taxes, claimed excessive depreciation and did not keep proper accounts. Satyam has denied all the charges.

"Inspection of the books will reveal whether the complaints are valid or not," said MY Siddiqui, a DCA spokesman.

Tough times

Satyam, one of the mainstays of India's burgeoning hi-tech industry and the 17th biggest listed company, denies the charges.

"The company has already responded in detail to the DCA's letters seeking clarifications and refuting each of the items raised by them," it said in a statement.

"The company has not violated any provisions of the law and is confident of defending its position."

Investors, however, reacted nervously to India's first contribution to the worldwide investigation into corporate shenanigans, and Satyam shares slid as much as 5.5% before inching back to a 3.5% fall in later trade.

Last week, Satyam said its net profit for the first three months of the financial year fell 10.7% from last year.