Deepak Parekh's speech after the Satyam board meeting
A very good evening to all of you.
We have concluded the preliminary discussions of the first meeting of the Board constituted by the Central Government, today.
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The top priority of the board is to restore confidence of the customers, employees, suppliers and investors by ensuring business continuity.
An issue of this enormity would need careful consideration and extended meaningful reviews, before it is resolved. We will, however, attempt to give you an overview. It is important to recognise though, that the Board may not be in a position to communicate the details on many issues, at this juncture. We will try and answers some of the questions that may be uppermost in all our minds, today.
The government is going to appoint a few more Board members soon, immediately after which the full board will decide the appointment of the Chairman.
Given the enormity of the issue and the urgent attention required, the Board will have to meet frequently for the next few months.
We are in the process of appointing an independent accounting firm within the next 48 hours to restate the financial and announce the Q3 results.
In the past few hours that we have been here, we have been impressed by the commitment of the officers that we have met. Many Satyamites have reached out reaffirming their commitment to the company and their desire to see Satyam reach greater heights.
The associates are definitely of high quality and they have shown tremendous resilience and commitment, amidst all the adversity that they have been subjected to. We are told that they have united and rallied to get Satyam out of this crisis. We feel assured that they will show the same determination to deliver high quality work as per SLAs, and help restore the glory for this organization.
We are also impressed with all the marquee customers that Satyam has, which reads like the who is who of the global corporations. We like to assure Satyam’s customers that our immediate priority is to ensure sustainability of services with minimal disruption. The government is keen to do everything possible to quickly get the organisation on its feet and conduct business as usual.
Working capital issues require immediate attention and we will work with the team to tide over this situation.
Thank you for joining us today. We will convene soon and update you on further developments.
Deepak Parekh, Kiran Karnik and C Achuthan also answered questions from the press. Here are some excerpts:
On legal immunity
We have not sought immunity but we enjoy immunity as we are govt appointed directors.
On liquidity
The new independent accountants will verify the veracity of the statements. The receivables are large and we may not need funds.
Need to ascertain if money has been squandered. There are ways to get funds back. Can't rely on Ramalinga Raju's statements alone on liquidity
On Ram Mynampati
Ram is not a director and is not on the board today, but he continues as an employee.
On auditors
We have talked to two firms and we will announce it
On Price Waterhouse
The shareholders will take a decision at the next meeting.
Status on CEO
We need to appoint a CEO and CFO. We do not have any candidates in mind. We need a sr CEO at this juncture.
On restructuring
The day to day mgmt will be run by the CEO and the senior leadership. We will provide direction.
Loans against receivables minimal.
We will meet frequently, we will ask clients to pay earlier. It is too early to say if we have enough liquidity.
Kiran Karnik: Indian IT companies have strong governance standards, and this is an exception.
Deepak Parekh: No conflict of interest of directors with other directorships. We have no plans to talk to Mr Raju at this stage.
On employee morale
Our first task is to get a CEO, which is not easy. We also need a CFO. The existing people are running the company on a day to day basis.
One of the first things in restoring confidence has been the govt's appointing the three member board. This itself has restored confidence.
On investigations
To file a complaint, there has to be material evidence. The investigations are still going on. The chairman's statement is not enough.
We may need to ask for an extension of Q3 results.
On retaining customers
Too early, too premature to say. There is now some perception of stability. New board in place. We can allay customers' concerns. Let's not forget that the co has talent and customers are satisfied. If we can restore confidence in just the structure of the company, it will be enough.
If we can give them a reasonable degree of confidence, they will hesitate to move mission critical applications out.
In the last 24 hours two international customers have said the quality and accuracy of service of Satyam's was much better than others. You cannot forget that Satyam has been among the top 4 IT cos in India.
The auditors will have to go back for three-four years with the financial statements
We would want a CEO to take the company to greater heights.
On bank loans to Satyam employees
The banks should be more supportive. These are qualified and talented people and will find jobs. Banks must give them time to get jobs in case they are unemployed.
On merger possibility
Option of merger is always open
Closing remarks
We will give more information to you after 10-14 days.
Press conference over