The government-appointed Directors on Monday took charge of Satyam Computer Services and announced that they would appoint a new auditing firm within 48 hours to re-state the accounts. Also, they would immediately begin searching for a new Chief Executive Officer and a Chief Financial Officer.
The Directors said they were talking to banks for funds to disburse the employees January salaries. Banks would come forward with money only on being satisfied with the re-stated accounts. The Board would seek extension of time to announce the third quarter financial results. While working capital issues topped the priority, the option of merger was also open.
At a press conference after six hour-long deliberations at Satyam Infocity, new Board members Deepak Parekh, Kiran Karnik and C. Achutan said a new chairman would be elected after the appointment of other directors.
The Directors said they had talked to two independent auditing firms, which would submit their proposals by Tuesday. The accounts for the last three to four years would be looked into, as none had faith in the numbers produced so far. Price Waterhouse would continue to be the official auditors until the next annual general meeting.
Mr. Parekh said the books indicated huge amounts of receivables, as the company had marquee customers, virtually the AAA-rated whos who of global corporations. But the veracity of the figures had to be ascertained. Going by the available records, the debt against receivables was minimal. Restoring the confidence of customers, staff, suppliers and investors to ensure business continuity was uppermost in the Directors minds.