Satyam to carry on, protect its staff

Hyderabad, January 8

A day after disgraceful exit of its chairman B Ramalinga Raju under the shadow of the largest-ever corporate fraud, Satyam Computers today said it was exploring “strategic options, including scouting for a buyer” to bail out of the crisis and admitted that the liquidity position was “discouraging”.

In a damage-control exercise, a seven-member task force, headed by the interim CEO Ram Mynampati, appeared before the media here and assured that their immediate priority was to ensure continuity in business and protection of the interests of its employees and customers.

The interim CEO did not rule out the possibility of recommending “criminal action” against Raju, who admitted to the fraud amounting to over Rs 7,000 crore.

“We have started the process of ascertaining the veracity and accuracy of his (Raju’s) statements made in the resignation letter. Once we complete the process, we will determine the next course of action,” Ram said to repeated queries from the media.

Asserting that he had no personal knowledge about the accounting irregularities and fudging of figures, Ram, who is one of the three members now remaining on the Satyam board, said he was “shocked” over the revelations. “We have an unimaginable crisis on hand. But, we are confident of putting it behind us,” he said.

Meanwhile, the company’s chief financial officer (CFO) V Srinivas sent in his resignation today.

“We have not accepted his resignation. The board meeting (scheduled on January 10) will take a decision,” the interim CEO said.

Pleading ignorance about the whereabouts of Ramalinga Raju, he said no police complaint has been filed against him. “We have no contact with him. I do not know where he is,” Ram said.

Asked whether the company has enough liquidity to pay salaries to the employees, he said the balance sheets were being verified and immediate steps would be taken to raise the liquidity through various options.

The company would appoint an investment banker at the earliest to advise on the strategic options in the best interests of the shareholders. The interim CEO made it clear that the company would fully cooperate with the regulatory authorities.

“A team from SEBI is here and had discussions with our associates,” he said.

Asked whether a new auditing firm would be appointed to verify the records, he said “We are yet to ascertain the processes used by PwC. After we complete the process, we will take a decision.” The efforts were also on to induct new members into the Board.

“We are committed to ascertaining facts about Raju’s disclosures and working with regulatory authorities closely. Our immediate job is to ensure continuance in business, complete transparency and smooth transition of leadership,” Ram said.