Satyam board in talks with banks

‘All efforts to ensure payment of salaries on time’

HYDERABAD: The new Board of Directors of Satyam Computer Services Ltd. said here on Saturday that it has begun discussions with banks and financial institutions to address the issue of liquidity of the beleaguered company.

Meeting for the second time in six days, the board noted that last week had seen definite improvements on collections. This was expected to be a major priority for the business leaders in the company and the board in the ensuing weeks.

The board, whose strength was increased by the Centre from three to six on Thursday, conveyed a strong note of reassurance to the 53,000-strong work force and also expressed confidence that its key customers would remain with the company. It also discussed the scheduling of payments to its vendors.

The board kindled hope among the employees when it declared that it was making all efforts to ensure payment of salaries on time. It was in touch with key customers and so far had not heard of deliveries being affected.

“The board reaffirmed its confidence in its associates [employees] and their ability to continue delivering high quality work, as per the stated Service Level Agreements.” It was in conversation with customers, who, in turn, had expressed their continued support, which was a very encouraging sign.

The directors — Deepak Parekh, Kiran Karnik, C. Achuthan, T.N. Manoharan, Tarun Das and S.B. Mainak — issued a statement after deliberating for over six hours on the challenges confronting the company at Satyam Infocity. They constituted an Audit Committee with Mr. Manoharan as its chairman and Mr. Achuthan and Mr. Mainak as members.

Internal auditors

M/s Brahmayya & Co., chartered accountants of Chennai, were appointed the internal auditors of the company with immediate effect and Amarchand & Mangaldas & Suresh A. Shroff & Co., legal advisors to the board.

The board continued its search for a Chief Executive Officer and a Chief Financial Officer. Until these appointments were made, it would meet on a weekly basis to address the ongoing issues. While Saturday’s meeting of the board was chaired by Mr. Parekh, every meeting would be chaired by one of the directors by rotation till a full-fledged chairman was appointed by the Centre in line with the directions of the Company Law Board.