HYDERABAD: Satyam Computer Services Ltd has recommended to the Ministry of Corporate Affairs removal of Price Waterhouse (PW) as statutory auditors of the company. On being notified, the PW tendered its resignation and the company now proposes to appoint new auditors.
At a meeting here on Saturday, the Board of Directors also approved the process for inviting a strategic investor. Deepak Parekh, a Director, said it was decided to seek regulatory approvals early next week after which the Board would announce the process.
The Board was informed that the company was “back to its winning ways” as it had bagged fresh purchase orders and work extensions to the tune of $250 million since January 7, the day B. Ramalinga Raju confessed to his fraud. CEO A. S. Murty said the recent successes, including a single order of $50 million, reflected an all-round positive trend. He said that more than half the revenues were from new purchase orders.
Satyam chairman Kiran Karnik said the Board was satisfied with the progress of the company’s stabilisation programme. He appreciated the sustained efforts of Satyamites in helping the company’s revival in fast track mode.
Another Board member T. N. Manoharan said that the company was receiving unsolicited offers of funding from banks. The funds already raised from the banks were being used in a controlled and phased manner.
Taking note of the exit of some senior business leaders, the Board authorised Mr. Murty to implement a plan to retain key associates in consultation with Boston Consulting Group (BCG) and Special Advisors.
It endorsed the extensive cost cutting measures initiated by the CEO. The meeting, the seventh since the constitution of the new Board, was attended by advisors Homi Khusrokhan and Partho Datta, legal advisors and senior BCG representatives.
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