Priority is to prevent default on salaries, payments: Satyam director
Objective of the new board is to ensure sustainability, continuity & restore confidence of all. In pics: The funny side of Satyam saga! | Satyam Fraud: Full Coverage
By Chandra R Srikanth, ET Bureau |
CHENNAI: TN Manoharan will be the second chartered accountant in the government-appointed board of software firm Satyam, which has been battered by an accounting scandal. The other CA on board is HDFC chairman Deepak Parekh.
Speaking to ET from Chennai, Mr Manoharan said his priority would be to study the financial strength and ensure that there is no default on the salaries or payment front. The government on Thursday appointed three more directors to the Satyam board- CII chief mentor Tarun Das, former president of the Institute for Chartered Accountants (ICAI) TN Manoharan and LIC's S Balakrishnan. They join the other government appointees- HDFC chairman Deepak Parekh, ex-Nasscom president Kiran Karnik and former SEBI member C Achuthan.
The government dissolved software firm Satyam's board last week after the company's founder and chairman B Ramalinga Raju confessed to fudging the company's accounts for years to show inflated cash and revenues. Since then, a new board and new set of auditors have been appointed to bring Satyam's house in order and protect its 50,000-odd employees.
"The objective is to ensure sustainability and continuity, restore confidence of employees, investors and customers. My priority will be to study the financial strength, ensure there is no default in salaries or payments. Also direct the accounts to be restated as soon as possible."
Mr Manoharan further added, "The delivery has to be streamlined. We also have to ensure fund flow." On the source of funds and whether a bailout package is in the offing, Mr Manoharan said, "I am not aware of it specifically. We will meet on Saturday and take steps in this aspect."
Mr Manoharan is already an independent director on the boards of non-profit organisation Naini Palkhiwala Foundation, Alpha Capital Management and Sahara India Finance Corporation.
On the prospects he saw for Satyam, Mr Manoharan said, "We need to know the real state of affairs first. Inflow will be a problem in the short run. But I am confident in the long run, the company will run itself and there will be stability."
Speaking to ET from Chennai, Mr Manoharan said his priority would be to study the financial strength and ensure that there is no default on the salaries or payment front. The government on Thursday appointed three more directors to the Satyam board- CII chief mentor Tarun Das, former president of the Institute for Chartered Accountants (ICAI) TN Manoharan and LIC's S Balakrishnan. They join the other government appointees- HDFC chairman Deepak Parekh, ex-Nasscom president Kiran Karnik and former SEBI member C Achuthan.
The government dissolved software firm Satyam's board last week after the company's founder and chairman B Ramalinga Raju confessed to fudging the company's accounts for years to show inflated cash and revenues. Since then, a new board and new set of auditors have been appointed to bring Satyam's house in order and protect its 50,000-odd employees.
"The objective is to ensure sustainability and continuity, restore confidence of employees, investors and customers. My priority will be to study the financial strength, ensure there is no default in salaries or payments. Also direct the accounts to be restated as soon as possible."
Mr Manoharan further added, "The delivery has to be streamlined. We also have to ensure fund flow." On the source of funds and whether a bailout package is in the offing, Mr Manoharan said, "I am not aware of it specifically. We will meet on Saturday and take steps in this aspect."
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Mr Manoharan is already an independent director on the boards of non-profit organisation Naini Palkhiwala Foundation, Alpha Capital Management and Sahara India Finance Corporation.
On the prospects he saw for Satyam, Mr Manoharan said, "We need to know the real state of affairs first. Inflow will be a problem in the short run. But I am confident in the long run, the company will run itself and there will be stability."
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