Satyam board gets three new members; says can raise funds

Satyam board gets three new members; says can raise funds
PTI
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First Published: Fri, Jan 16 2009. 01 06 AM IST
Updated: Fri, Jan 16 2009. 01 07 AM IST
New Delhi: The government today appointed three more professionals on Satyam’s board, even as member Deepak Parekh said the IT firm can raise funds by mortgaging assets - dispensing with the need for central assistance.
Apex industry association CII’s chief mentor Tarun Das, noted chartered accountant and a past president of ICAI T N Manoharan and S Balkrishna Mainak of LIC, a major investor in Satyam, would join Parekh, Kiran Karnik and C Achuthan at the board. The expansion comes two days before the board is to hold its second meeting — on 17 January.
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Ruling out any bailout package, Corporate Affairs Minister Prem Chand Gupta, while announcing the new nominees, said: “The first impression from the government-nominated directors about the company is that its operations are sound and by and large major customers are willing to remain with the company.”
“Until we know the real position, how can we speak of bailout. The company has receivables of Rs1,700 crore,” Parekh said, adding that “financial assistance can be generated by hypothecating some of the assets of the company.”
The speculation about the bailout package heightened after Economic Affairs Secretary Ashok Chawla said that the government had received a mail or two from former acting CEO Ram Mynampati indicating that the company needs about Rs150 crore.
He, however, did not elaborate on when the mails were received and Mynampati, who was appointed acting CEO by the erstwhile board, is in the US meeting clients.
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First Published: Fri, Jan 16 2009. 01 06 AM IST
More Topics: Satyam | Ramalinga Raju | Government | CII | Fraud |