The Hindu Business Line : New Satyam board will help restore investor faith: India Inc

New Delhi, Jan. 11 Hailing the Government’s choice of the three new members for the Satyam board, the industry today expressed confidence that the move would help pull the company out of the current crisis and restore investor faith in India Inc.

“It is a welcome move and we hope that with this, the new board will be able to get into the company’s affairs and bring stability. The immediate challenge for them is understanding the financial position, what is required in terms of funding, and to straighten it all out,” Mr S. Gopalakrishnan, Managing Director and CEO, Infosys Technologies, told Business Line.

India Inc feels the move would help ensure business continuity, build confidence and protect the interest of all Satyam stakeholders – the employees, customers and investors.

“The choice of people could not have been better. The move will help in restoring customer and employee confidence, and cleaning up of the financial irregularities that Satyam is currently dealing with,” the Nasscom Chairman, Mr Ganesh Natarajan, said.

Mr Rajeev Chandrasekhar, President of FICCI, said, “The Government should ensure that the board immediately arranges financing to ensure that salaries and payrolls of the 50,000 plus employees are met without disruption.”

The CII Director-General, Mr Chandrajit Banerjee, said the Government in acting swiftly has sent out a strong signal and the major task before the board is to appoint a management team.

Meanwhile, global outsourcing advisory firm, Forrester Research’s senior analyst Mr Sudin Apte said untangling the Satyam issue was a long journey, and appointment of the board the “first positive step”.

“However, the key issue is assessing the correct position of liabilities as well as liquidity. And how quickly the new board brings to table, the accurate financial statements, and re-establishes the lost confidence will decide whether clients and employees will continue with Satyam. Any delays beyond a week or two in this regard would continue damaging the company,” he said.

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