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Satish H

New plan: The Interim CEO of Satyam Computer Services, Mr Ram Mynampati (second from left), addressing a press conference in Hyderabad on Thursday. Others in the picture (from left) are Mr Keshab Panda, Head, Europe, Energy and Utilities; Mr Ravi Bommakanti, Head, Applications, Development and Maintenance; and Mr T.R. Anand, Head of Telecom, Infrastructure, Media and Entertainment and Semiconductors. —

Our Bureau

Hyderabad, Jan. 8 Amidst a SEBI probe, seizure of books by Registrar of Companies, quitting of the CFO and law suits in US, a new leadership that emerged at Satyam Computer Services, was left to grapple with the gigantic Rs 7,136-crore financial mess and show a way out.

Mr Ram Mynampati, the interim Chief Executive Officer (CEO) and his team which seemed clueless at what hit the company in financial terms, said one of the options before the company was to allow a takeover.

Facing the media a day after the the founding Chairman, Mr B. Ramalinga Raju’s shocking confession of inflating profits, Mr Ram with his new team said chartered accountants were looking into the gravity of the financial issues

“We have absolutely no idea on the current liquidity position, gravity of the financial intensity, number of employees and the extent of the damage done”, Mr Ram said here today.

“We are confronted with this situation just 36 hours ago. None of us here has knowledge about the financials. We are trying to assess the situation and trying to have an understanding.” Mr Ram said.

For most of the questions, the members of the fire-fighting, interim team, had one stock answer – “we will assess the situation and let you know. A due diligence process is on”.

Mr Ram, one of the three director’s left on the Satyam Board admitted to receiving the resignation of the CFO, Mr Vadlamani Srinivas, today and said he was cooperating.

Meanwhile, on the advice of the Economic Offences Court, the RoC officials seized the books and records at the Satyam’s registered office at Mayfair in the City late evening. A SEBI team was also quizzing key Satyam officials.

Mr Ram said it would take a few days for them to get a clear picture.

The new leadership does not even know whether there is enough cash to meet working capital needs or salary bills for January. “We don’t know it (the liquidity position) today. We will know it,” he said.

Mr Ram said that the company had not yet lodged a criminal complaint with the police against Mr Raju. “Criminal action is one of the options depending on the outcome of the analysis. Law must take its own course,” he said.

“We want to verify the veracity of the confessions of Mr Raju. Independent auditors would verify these claims”, he said. On the question of the confessions bearing no signature, he said “We have received communication from Mr Raju’s email”.

Mr Ram was flanked by Mr Virender Aggarwal (Head of Asia-Pacific), Mr Keshab Panda (Head of Europe), Mr A.S. Murthy (Head of Global Delivery), to send a message that those with “vested with emotional interests” have come together to revive the fortunes of the company.

Asked why Mr Raju’s writ continues to guide the company (the task force was suggested by him in the confession letter), Mr Ram said even otherwise the team would have been the same considering their experience in the company.

Despite the doubts over Price Waterhouse’s role in fudging the balance sheets of the company, Mr Ram has said that the auditor continues to audit the financials for the present quarter. The team has indicated that the Q3 results may not be announced by the scheduled date of January 17. “We have 20 days to announce the results. Will also restate the Q2 numbers ”, he said.

Putting to rest all speculations about his whereabouts, Mr Raju has made a statement on Thursday that he is very much in Hyderabad and that he is ready to face legal proceedings, through his lawyer.

Solidarity: A refreshing development for the beleagured management was the organised show of solidarity by scores of employees across Satyam’s over 30 locations in the country under an initiative called ‘Spirit of Satyam’. The team was also engaged in hectic parleys with customers and investors across the globe to salvage the heavily dented image of the country’s fourth largest IT major.

More Stories on : Software | Management | Corporate Governance | Satyam Computer Services Ltd | Economic Offences

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