Mumbai: The government-appointed board of Satyam Computer Services Ltd will meet here on Thursday to put in place a process to address interest shown by potential investors in the fraud-hit software maker.
Chairman Kiran Karnik told reporters in Mumbai on Wednesday that an action plan to steer Satyam through the crisis, including a possible sale, would be ready soon. Thursday’s board meeting will also discuss measures to ensure business continuity.
Satyam, which plunged into a crisis after founder B. Ramalinga Raju on 7 January confessed to having doctored the company’s accounts to the tune of Rs7,136 crore over several years, has hired investment banks Goldman Sachs and Avendus Capital to look for strategic investors.
Measured Track: Satyam’s chairman Kiran Karnik at the Nasscom India Leadership Forum 2009 in Mumbai on Wednesday. Punit Paranjpe / Reuters
Engineering firm Larsen and Toubro Ltd, B.K. Modi’s Spice Group, the London-based Hinduja business family and Mahindra Infotech Ltd, a unit of Mahindra and Mahindra Ltd, have shown varying degrees of interest in buying a stake in Satyam.
Karnik was talking to journalists on the sidelines of the annual event of software industry body National Association of Software and Services Companies (Nasscom).
He said the Rs600 crore bank loan recently secured by Satyam will be received in a few days and that payment of the February salary of its employees will not be a problem.
Karnik also said there is a higher degree of comfort among the company’s clients, who had been concerned about the risk of continuing with Satyam as a vendor in the aftermath of the fraud. However, he added that clients continued to have concerns about the long-term future of the firm.
Meanwhile, Nasscom announced the setting up of a corporate governance and ethics committee to prevent Satyam-like financial frauds in the future. The committee will be headed by Infosys Technologies Ltd’ chief mentor N.R. Narayana Murthy and will report to the executive council of the industry body.
The panel will work with authorities, policymakers and regulators and will be composed of industry experts and independent directors, besides academicians.