Hyderabad-based Satyam Computer Services, has pledged some of its receivables to banks to secure funding, said Deepak Parekh the newly appointed member on the company’s board.
Speaking at the Confederation of Indian Industry (CII) event on Corporate Governance, 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 also said 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.
When asked about the total exposure of banks to Satyam, Parekh declined to divulge any figures but added: “Banks have lend against some receivables hence they are largely safe.”
Parekh did not give a timeline for the appointment of the chairman but said that the government will select the new chairman. “The new board so far is taking a collective responsibility and the chairmanship will be through rotation,” said Parekh.
Parekh also stressed that Indian corporates should have a whistle blowing policy. While giving an instance of Satyam, he said that the company did not have a policy in place, “if they had this policy in place, then some senior management would have written to the authorities.”
