12 January,2009 07:17 PM IST | | PTI
The Central government's help to the crisis-ridden Satyam Computer Services may include financial support as well, as it is a question of saving jobs and institutional investment, Commerce and Industry Minister Kamal Nath said.
He said the government will consider 'all aspects' in helping the troubled IT company, "once it receives firm proposals from the newly constituted board".
Yesterday, the government constituted a three-member board comprising noted banker Deepak Parekh, IT expert Kiran Karnik and ex-SEBI member C Achutan.
More appointments have been made today. According to the Company Law Board's order, the reconstituted board of the IT major can have a maximum of 10 members.
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The government on Friday sacked the board of Satyam a few days after its founder-chairman B Ramalinga Raju admitted to a Rs 7,800-crore fraud in the books of accounts of the IT company.
When asked whether the government will consider financial help, Nath said, "Of course. There are many jobs at stake and institutional stakes."
He said now it was up to the board to come up with proposals.
Board to bring in new mgmt; address liquidity crisis
Swinging into action on the very first day of taking charge of the scam-tainted Satyam, its new board today announced that top management would be changed and every effort made to address the prime concern of liquidity, including asking main clients to make advance payments.
Announcing the decisions taken at the meeting of the three-member board constituted by the government, member Deepak Parekh said new CEO and CFO would be appointed, while government would soon fill up vacancies at the board that would later elect a chairman.
The board would ask the clients to pay advance against dues to tide over immediate liquidity needs. Noting that there was a large number of receivables - payments due from clients - Parekh said: "If (the receivables) come on time liquidity will be sufficient. But these need to be authenticated...
"Most of the clients are 'AAA' (top investment grade rated). So we can ask them for advance against receivables," Parekh said and added that the board has identified two independent accounting firms and they are likely to make their proposals on Tuesday.
Within 48 hours, a new independent accounting firm will be in place to look at the third quarter financial performance of the company, for announcement of which the board is seeking extension beyond scheduled January 16.
"Working capital needs immediate attention," Parekh said, but added that the board has not yet determined the amount of liquidity that is required.
Asked whether the new CEO and CFO would be from the internal team, Parekh said he hoped that in the next few weeks the board would find someone. But given the situation it would be difficult to find willing candidates.
