To make all efforts to ensure employees are paid on time.
The government-appointed board of Satyam Computer Services today said it had opened discussions with banks and financial institutions to raise funds and was making all efforts to ensure that employees were paid salaries on time. Its search for a chief executive officer and a chief financial officer is still on.
The board’s second meeting in six days in Hyderabad today was chaired by Deepak Parekh, who later told news agency Reuters that no major decision had been made during the meeting. This was the first meeting since the Ministry of Corporate Affairs nominated three additional members to the board to take its strength to six.
A statement issued later said the company had decided to appoint Amarchand & Mangaldas, Suresh A Shroff & Co as the legal advisor, and Brahmayya & Co as internal auditor with immediate effect.
The company has also set up an audit committee consisting of T N Manoharan as chairman, and C Achuthan and S B Mainak as members. Manoharan, a former president of the Institute of Chartered Accountants of India, is on the boards of Sahara India and Alfa Capital, but not on the board of any IT company. Mainak is professor (life) at National Insurance Academy. Achuthan is a former member of Securities & Exchange Board of India and a former presiding officer of Securities Appellate Tribunal.
“The last week had seen definite improvements on ‘collections’ and this is expected to be a major priority for the business leaders and the board in the ensuing weeks. All efforts are being made to ensure that the associates (employees) are paid their salaries on time. Scheduling of vendor payments were also discussed,” according to the company statement.
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The board will meet every week until the CEO and CFO have been appointed. Each member will take turns to chair till a chairman is appointed by the Union government. The board will address a press conference in Hyderabad at 3 pm tomorrow to address media doubts and reports.
The board members said they were in touch with key customers and had so far not heard of deliveries being affected. The board reaffirmed its confidence in its associates (employees) and their ability to continue delivering high-quality work, according to the stated Service Level Agreements.