The new board of directors at the embattled IT firm Satyam Computer Services, have received close to 40 proposals for the post of CEO so far.
“We have received close to 40 proposals for the post of CEO but it is difficult to find the kind of person that we want for the job. We have been approached by expatriates as well as people who want to come back to India,” said Deepak Parekh the newly appointed member on the company’s board.
He also said that, Satyam has pledged some of its receivables to banks to secure funding. When asked about the total exposure of banks to Satyam, Parekh declined to divulge any figures but added: “Banks have lent against some receivables hence they are largely safe.”
Addressing a session of the CII Governance Series 2008-09 organised by the Confederation of Indian Industry, the banker also said that the board in its next meeting will appoint an investment banker for the rescue efforts of the beleaguered IT firm. He further added that for the month of January the company has enough reserves to run its operations.
“We are also taking an approval from the Securities and Exchange Board of India (Sebi) to extend the third quarter result announcement of Satyam. We have already received 40 proposals for the post of the CEO so far,” he said.
Parekh also stressed that Indian corporates should have a whistle blowing policy. Citing Satyam’s case, he said that the company did not have a policy in place, “if they had a whistle blowing policy in place, then some senior management would have written to the authorities.”
He further insisted that while no additional regulation is desired in India, what is needed is a strong commitment to voluntarily improve board effectiveness.
Parekh also identified finding a truly independent, competent and qualified director with appropriate skill sets and knowledge of the business as a serious problem in India.
While he felt that some of the new accounting measures will take care of future problems, pledged shares must be known to the shareholders. “The recent episode is hopefully an aberration in the Indian corporate story,” added Uday Kotak, executive vice-chairman and managing director, Kotak Mahindra Bank.
On asked whether auditor’s should be changed frequently, Sammy Medora, executive director. KPMG said: “Well it has its advantages as periodical change of auditors would mean looking at the books in a new way. But then it takes time to understand a company and how it works and the processes involved.”
Meanwhile, IDBI Bank chairman and managing director Yogesh Agarwal said that the bank has no exposure to Satyam Computers and it is not averse to lending to the company. "We are not averse to lending to anyone, if we get any propasls from Satyam we would definitly consider it," Agarwal said. The bank however, has Rs 300 crore exposure to the Mytas group, which Agarwal said was secured as it was disbursed against collaterals. Teja Raju and B. Rama Raju, are sons of Satyam Computer Services Ltd founder and ex-chairman B. Ramalinga Raju are the promoters of the Mytas group.
