January 13, 2009 11:43:39 am
Swinging into action on the very first day of taking charge of the scam-tainted Satyam,its new board 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.
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