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Our Bureau

Hyderabad, Jan. 12 A new CEO & CFO, either from within or outside, independent audit firm in next 48 hours, a merger option and delay in Q3 results beyond January 30 deadline were the broad takeaways from the first statements of the three-member board of the crisis-ridden Satyam Computer Services.

Mr Deepak Parekh, Mr Kiran Karnik and Mr C. Achuthan, after a review of Satyam, which is in a Rs 7,136-crore financial mess, told newspersons that the task of assessing and restating the actual financial health of the company would be entrusted to one of the two audit firms approached.

On priority, the board would look for a competent Chief Executive Officer and Chief Financial Officer who could steer the company out of the crisis, Mr Parekh, Chairman of HDFC, said.

“Our first priority is to restore confidence among the stakeholders and ensure continuity of services to clients with minimal disruption,” the trio, appointed by the Government, said.

The three members, who drove into Satyam’s Info City on Monday morning and held a series of meetings with the top leadership for nearly six hours to have a feel of the state of affairs, also said that attending to the working capital requirements, was a urgent matter that would be tackled.

As announced, the Government would soon appoint more members on the board, who would in turn choose the Chairman.

Mr Achuthan, former member of SEBI, said that the board enjoyed protection (from legal issues) as it worked to bail out Satyam. He also said the board had not sought any legal immunity to the lawsuits it faced, in response to questions.

Mr Parekh said that the board might seek extension of the deadline to announce the third quarter results, which are supposed to be released this month-end.

He admitted that it would take some time before a correct picture emerged. “We need to analyse the accounts of 4-5 years to arrive at a credible picture.” “There is doubt in everyone’s mind, including ours, about the veracity of the numbers. We are not sure of the actual receivables,” he said.

Referring to the incidences of banks freezing accounts and curtailing credit card limits, Mr Parekh felt that banks should be more supportive. “They (Satyamites) are talented. Banks need to give them time. They don’t add up to NPAs (non-performing assets). You need to take a liberal view.”

While stating that they had to check the veracity of the stated 53,000 employees on Satyam, Mr Parekh said for the January salary they would talk to banks if funds were required.

But, he hastened to add that the banks would expect a clear financial picture of the company before they extended assistance. We will also ask clients to pay receivables ahead of schedule, he added.

On the question of continuation of Price Waterhouse as auditors, Mr Parekh stated that it was the prerogative of shareholders to decide.

The board has no plans to meet Mr Raju for now. It also has no plans to lodge a police complaint against him based on his confessions to the SEBI.

“He could as well withdraw them. The courts would ask for evidence,” Mr Achuthan said.

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

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