Hyderabad: Perhaps too biblical to refer to, but the trio of — Deepak Parekh, Kiran Karnik and C. Achuthan — appeared like the three wise men who were determined in their joint efforts to rescue and salvage the pride of India’s fourth largest IT company, Satyam Computer Services. Meeting the press after their first board meeting, the central government appointed board, announced a few of the steps to restore normalcy to the scam hit IT firm.
The embattled IT company will appoint a new accounting firm within the next 48 hours to work on restating the accounts and declare the December quarter earnings, a member of the new board said. Working capital issues require immediate attention at the company, Deepak Parekh, a senior banker and one of the government appointees to Satyam’s board, told reporters.
The government dissolved Satyam’s board and installed a new one as it rushed to contain the fallout from India’s biggest corporate scandal, after its founder revealed massive accounting fraud and quit.
Parekh said there was a need to appoint a new chief executive officer and chief financial officer for the company, while adding “we have no candidates in mind” and no one was willing to join within 24 hours.
“The top priority is to restore the confidence of customers, employees, suppliers and investors. Satyam has a lot of marquee customers, so the sustainability of service is a priority,” he said.
Another member C. Achuthan said the board has not sought any immunity from lawsuits as such for the company.
Asked if PricewaterhouseCoopers would be sued, Parekh said investigations were going on and it was too premature to comment on the issue.
Parekh said the board was talking to two entities for selecting the new independent accounting firm for Satyam, but declined to reveal their names.