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Satyam: prime concern is liquidity, says Parekh

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CIOL Bureau
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HYDERABAD, INDIA: The new director board of Satyam Computer Services, which met here on Monday, said the government will soon appoint more directors and the chairman will be elected by the full board.

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The first meeting of the reconstituted Board of Satyam, hit by the Rs 7,800-crore scam, discussed various options to handle the immediate issues, including liquidity, said Deepak Parekh, one of the directors nominated by the government.

While briefing the media about the decisions taken in the board, Parekh said every effort would be made to address the prime concern of liquidity, including asking main clients to make advance payments.

He also said there was a need to appoint new CEO and Chief Financial Officer for the company.

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When asked whether the new CEO and CFO would be from the internal team, Parekh "we have no candidates in mind" and added that in the next few weeks the board would find someone.

Regarding the liquidity crunch, he said the board has not yet determined in the amount of the liquidity needed.

Parekh said there was a large number of receivables and if that comes on time liquidity it will be sufficient.

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“Most of the clients are 'AAA' (top investment grade rated). So we can ask them for advance against receivables," he added.

The board also said that within 48 hours, a new independent accounting firm will be in place to look at the third quarter financial performance of the company.

"The 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," he added.

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