Satyam Update

Highlights

• Top priority is - to restore the confidence of customers, employees, suppliers and investors... Satyam has a lot of marquee customers, so the sustainability of service is a priority
• Will appoint auditors in next 48 hours to analyse the financial health
• Will appoint CEO & CFO soon, no timeframe or names have been decided yet- Not decided on suing PwC as of now
• Government to look into appointing new board members

The new board has spent a day at Satyam today & were briefing the press in the late evening. Initial focus of the board is to study the financial health of the organisation & understand the situation at ground zero. Answering to one query, Deepak Parekh said that they would not like to go by the face value of the contents that have been spilled out in Ramalinga Raju's mail on the current financial situation of the organisation, instead they will nominate a group of auditors in next 48 hours, who'll look into the matter & come our with correct set of figures. Also, according to him, these figures would be the basis on which banks could lend to Satyam.

The second issue they would like to address is appointing the CEO & CFO. Ram Mynampati, who till recently was one of the directors on the board has been stripped off the powers as director, but will continue to be part of Satyam as a senior employee. According to the new boards they have not yet identified any names for these post.

Satyam Board - Profiles

Just a brief on the profiles of the 3 new board members of the beleagured IT firm Satyam.

Deepak Parekh

• CA by qualification- Currently chairman of HDFC Ltd
• Awarded Padma Bhushan- Started his career working for E&Y.
• Has worked for leading banks in the world like Grindlays Bank, Chase Manhattan.
• Was awarded with 'Businessman of the Year" in 1996 by Business India

Kiran Karnik

• Ex-president of NASSCOM- Awarded Padma Shri in 2007
• Holds a PG from IIM
• Has been recognized as the guiding force for the Indian IT industry during the outsourcing backlash
• Prior to joining Nasscom in 2001, Kiran Karnik was the managing director at Discovery Networks in India where he was instrumental in the launch of Discovery Channel in South Asia in August 1995 and Animal Planet (a Discovery – BBC joint venture) in 1999- Between 1991 to 1995, Kiran Karnik was founder-director of the Consortium for Educational Communication, which was responsible for UGC’s Countrywide Classroom broadcasts and other ICT initiatives
  

C Achuthan

• Former member of SEBI
• Was a presiding officer of the Securities Appellate Tribunal(SAT)

New SATYAM board

Satyam Update:

A new booard has been constituted by the Government to lead Satyam. The new board constitutes of leading honchos from the business community & they are:

1. Kiran Karnik, former chairman of NASSCOM

2. Deepak Parekh, banker from HDFC

3. C Achutan, former member of SEBI.