Critical.
Authoritative.
Strategic.
Subscribe to CIO Magazine »

Satyam board meets again, still no plan

Satyam's board meets again Saturday inconclusively

The newly reconstituted board of financially troubled Indian outsourcer Satyam Computer Services met for the second time on Saturday, and the company's future remains unclear.

The Indian government this week nominated three new members to the board, taking the total to six. It also ruled out any immediate plans for financial assistance to Satyam, which could be facing a liquidity crunch.

The board last met on Monday.

Satyam was plunged into a crisis earlier this month when the company's former chairman B. Ramalinga Raju resigned, after admitting that the company had inflated profits for several years.

Satyam's board has said that the company's liquidity position looks good, although a final determination would require a restatement of its finances. That task was assigned on Wednesday to accounting firms KPMG and Deloitte Touche Tohmatsu.

The board, which met in Hyderabad, said in a statement on Saturday that it is engaged in discussions with banks and financial institutions. The last week had seen definite improvements on collections, and this is expected to be a major priority for the board in the ensuing weeks, it added.

All efforts are being made to ensure that Satyam's employees are paid their salaries on time, the board said.

The board is still searching for a new chief executive and new financial officer. It did not confirm as interim CEO Ram Mynampati, a former Satyam business unit head. The board said it was interested in bringing in "fresh blood" for the CEO role.

Until a new CEO and CFO are appointed, the board will meet weekly to address ongoing issues, it said.

The board members have been in contact with customers, who in turn have expressed their continued support. The board also has not heard of deliveries to customers being affected in any way, it added.

Some analyst firms have warned that continued uncertainty at Satyam could lead customers to look to alternative suppliers in India.

Also on Saturday, a court remanded Raju, his brother and former managing director of Satyam, B. Rama Raju and the former CFO Vadlamani Srinivas to police custody for four days. They were earlier in judicial custody.

Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.

More about: Brother, Deloitte Touche Tohmatsu, Deloitte Touche Tohmatsu, Financial Institutions, KPMG, Satyam Computer Services

Comments

Post new comment

The content of this field is kept private and will not be shown publicly.
Users posting comments agree to the CIO comments policy.
Login or register to link comments to your user profile, or you may also post a comment without being logged in.
Related Coverage
Related Whitepapers
Latest Stories
Community Comments
Tags: Satyam
Latest Blog Posts
Whitepapers
  • Oracle Exadata Database Machine Warehouse Architectural Comparisons
    Exadata is Oracle’s fastest growing new product. Much of the growth of Exadata has come at the expense of specialized data warehouse appliance vendors. These vendors have published competitive comparisons to Exadata, claiming: Architecture is what really matters for performance, Purpose-built data warehousing architectures perform best, They see architecture as an end in itself rather than as a means to an end. Read on.
    Learn more »
  • Unified Monitoring™ A Business Perspective
    The enterprise computing landscape has changed dramatically. Virtualisation, outsourcing, SaaS, and cloud computing are creating fundamental changes, and ushering in an era in which enterprises distribute increasingly critical IT assets and applications across multiple service providers.This paper explores today’s computing trends and their monitoring implications in detail. In addition, it reveals how a new monitoring paradigm architecture, that uniquely addresses the monitoring realities of today’s and tomorrow’s enterprises—whether they rely on internal platforms, external service providers, or a combination of both.
    Learn more »
  • So Long, Silos: Why Multi-Domain MDM Is Better For Your Business
    Say “so long” to silos. This white paper explains why a multi-domain MDM solution is far better than single-domain, single-focused point solutions. You’ll learn what to look for in a multi-domain solution so you don’t outgrow it or are forced to purchase multiple products down the road. You’ll also get tips on how to select a multi-domain solution that can lead to multiple benefits over many years. The age of multi-domain MDM is here. See why you should say “hello” to it!
    Learn more »
All whitepapers
rhs_login_lockGet exclusive access to Invitation only events CIO, reports & analysis.
Recent comments