Further to my review about Satyam Computer fraud two days back, it is appropriate to review the new developments in this connection.
The new board of three directors have taken the initiative to bring the company back to track, and at the same time they had requested the government ot appoint more directors. Their request has been taken seriously, as a result three more director's name have been announced. These directors are Confederation of Indian Industry (CII) chief mentor Tarun Das, former Institute of Chartered Accounts of India president TN Manoharan and LIC's S Balakrishan.
Government's action, so far, seems to be heading in right direction. But the government has declared that it is not in favour of bailing out the company from the horrific mess by giving grant. Honestly speaking, the sanction of grant would send a wrong message to the investors. The investors and share holders might think that the company is in bad shape to get revived once again. In this context the earlier appointed director Mr. Karnik's statement is an important and relevant one to create trust among the investors and shar holders. He has categorily stated that the company is viable and the bail out package would go against the interest of the company. He also said that immediate money is required but that can be arranged from banks or any other source. His opinion of Satyam being in a technically sound position, can repay its loan by itself, is indeed a comfortable news. In the mean time Mr. Deepak Parekh too has stated that Satyam has receivables of Rs. 1700 crore, isn't that sounds good? All in all we get an impression that this 4th largest IT company of India will not die prematurely, rather it would come back to a competitive position to prove India's back up efficient management set up to tackle problem as big as that of Satyam.
Satyam's Development Centres
Satyam: Full Coverage
Top Accounting scandalsAccountants
of India president TN Manoharan and LIC's S Balakrishan