Satyam Board Charts Near-Term Course
Hyderabad, INDIA, January 19, 2009:Satyam Computer Services Limited (NYSE: SAY), a leading global consulting and information technology services provider, today announced that its new Board of Directors convened for the second time in six days on Saturday to discuss immediate plans for the organization.
It was the first meeting following Thursday’s placement—by India’s Ministry of Corporate Affairs—of three new members to the Board (for a total of six). Saturday, members discussed ways to enhance liquidity, leadership issues and customer concerns. Until India’s Central Government appoints a chairman (in accordance with directions of the Company Law Board), Board members will take turns chairing meetings. Mr. Deepak Parekh led Saturday’s discussion.
The Board’s search for a chief executive officer and chief financial officer continues. It will meet weekly until these appointments are made, and to address ongoing issues.
Also on Saturday, several Satyam leaders made detailed presentations to the Board; these executives have been asked to continue to manage their respective operations seamlessly. The Board reiterated that it is in touch with key customers and so far, delivery has not been affected. Numerous customers, in fact, have expressed their continued support, a very encouraging sign. In a similar vein, the Board reaffirmed its confidence in Satyam Associates and their ability to continue delivering high-quality work, and to meet or exceed established service level agreements.
Additionally, the Board confirmed that it is in discussions with financial institutions. Last week, collection of receivables was strong, and this will remain a priority for the near future. Every effort is being made to ensure that Associates and vendors are paid on time.
Furthermore, the Board created an Audit Committee, comprising Mr. T.N. Manoharan (chairman), Mr. C. Achuthan and Mr. S.B. Mainak. It also appointed Brahmayya & Co., a Chennai-based accounting firm, as internal auditors. Brahmayya & Co. is reviewing day-to-day internal operations while Deloitte and KPMG focus on helping the Board restate Satyam’s accounts. Moreover, Amarchand & Mangaldas & Suresh A. Shroff & Co., one of India’s premier law firms, has been appointed as legal advisors to the Board.
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Or contact our global Satyam PR representatives at:
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Europe Sandeep Thawani Sandeep_Thawani@Satyam.com +44-783-010-3838
Asia-Pacific Dan Bleakman Dan@howorth.com.au +61-439-408-484
This press release contains forward-looking statements within the meaning of section 27A of Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Satyam undertakes no duty to update any forward-looking statements. For a discussion of the risks associated with our business, please see the discussions under the heading “Risk Factors” in our report on Form 6-K concerning the quarter ended September 30, 2008, furnished to the Securities and Exchange Commission on 07 November, 2008, and the other reports filed with the Securities and Exchange Commission from time to time. These filings are available at http://www.sec.gov.
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