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Our Bureau

Hyderabad, Jan. 10 Mr T.R. Prasad and Prof. V.S. Raju, the two independent directors on the now disbanded Board of the crisis-ridden Satyam Computer Services, have welcomed the Government move and wanted a thorough enquiry into the financial issues.

They said it was important that the Company with such a large staff base and image be salvaged both in the employee, shareholder interest and national interest.

Mr Prasad, a former Union Cabinet Secretary told Business Line that there are too many gaps to be filled. The actions of reputed auditors, banks, how management inflated figures are under scrutiny. Maybe, if the small board had met, we could have raised the issues to get answers, he said.

As an independent director, I had “no inkling” of the financial mess as the accounts were certified by a very reputed auditing firm.

At least four Price Waterhouse CAs informed us about the accounts, how the company paid income tax, dividends and the management kept us posted on the due diligence carried out according to SEBI norms, he said.

On the huge cash reserves, he said they were always told that the dollar account would be brought to India when the conversion rate was low and more rupees could be earned. They used to choose the opportune time to optimise the benefits and put the money in savings deposits only when higher rates were offered.

Prof. V.S. Raju said it was “shock and disbelief” and thought at first that it was a hoax, “when I received Mr Raju’s email on the financial fraud”. “I think no audit committee or independent director could have checked a scam of this size, which we were shocked to find was going on for 20 quarters, even while the company was winning laurels and reputed audit firms certifying them,” he said.

Prof Raju said, immediately after the receipt of Mr Raju’s letter and getting Mr Ram Mynampati to be interim CEO and the team in place, we had asked Mr Ram to write to the Company Law Board Chairman, SEBI, the Union Government, Nasscom, CII and Andhra Pradesh Government to nominate people on the board, as it was the immediate task for the cancelled January 10 meeting.

Meanwhile, Satyam Computer also said it has received a notification from the CLB and welcomed the move.

More Stories on : Software | Economic Offences | Satyam Computer Services Ltd | People

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