Fraud-hit Indian information technology giant Satyam has announced a new chief executive for the company and said it had lined up funds to help tide it over a cash crunch.
Fraud-hit Indian information technology giant Satyam announced Thursday a new chief executive for the company and said it had lined up funds to help tide it over a cash crunch.
The announcement followed a two-day meeting of the government-appointed board in the southern city of Hyderabad, where Satyam Computer Services is based.
The board gave senior Satyam executive A.S. Murty the top job, filling a leadership hole created when Satyam founder and former boss Ramalinga Raju confessed to a billion-dollar fraud that shook corporate India.
"Murty is a Satyam veteran of 15 years... who brings to play a deep understanding of the organisation," the board said in an emailed statement.
"I have no misgivings about the enormity of the task in front of us, but together with my colleagues, I am confident we can accomplish the impossible," Murty said in the statement.
"We will chart a precise and practical 30-60-90-day plan that will encompass and address the interests of all stakeholders," he added.
Murty has occupied various roles with India's fourth-largest software exporter including overseeing global delivery.
The board added it had received "bank sanctions for a total sum of six billion rupees (130 million dollars) as a planned fund infusion towards working capital requirements."
"This funding, along with healthy collections (from clients), is expected to help the company tide over its financial challenges," the board said.
The company also announced the appointment of two special advisors to the existing six-man board.
It named Homi Khusrokhan, a one-time managing director of India's Tata Chemicals, to help in managing Satyam and chartered accountant Partho Datta to take charge of Satyam's financial operations.
"Completing the complex financial restatement exercise including announcement of quarterly results and ensuring prudent financial operations will be the primary focus in coming weeks," Datta said in the statement.
Founder Raju surrendered to police last month over the fraud and has been detained on accusations of cheating, forgery and breach of trust.
The former boss declared on January 7 he had falsified a company bank balance of one billion dollars and inflated profits.
The dramatic confession sent the company's shares plunging and left it struggling to retain its nearly 700 clients -- including 185 Fortune 500 firms -- and stay afloat.
"I am confident that we are on the right track and we will be able to safeguard interests of our customers, associates, investors and other stakeholders," said board member C. Achuthan, who chaired the meeting.
A board director of the company said earlier up to seven firms including private equity funds could bid for Satyam but did not identify them.
Talk of a bid has mainly focused on Larsen and Toubro, India?s biggest engineering company, which recently tripled its stake in Satyam to 12 percent and has said it may increase its holding further.
© 2009 AFP
