Satyam gets Murty as CEO and Rs 600 cr

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Posted: Thursday, Feb 05, 2009 at 0859 hrs IST
Updated: Thursday, Feb 05, 2009 at 0859 hrs IST

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Hyderabad: Satyam's government-appointed Board on Thursday named A S Murty, one of the company's own, as Chief Executive and announced tying up Rs 600 crore loans to meet working capital needs.

The Board, at the end of a two-day meet, also roped in Homi Khusrokhan, a Tata group veteran, and chartered accountant Partho Datta, as special advisers to help the company in management and finance areas, respectively.

Murty, who has been with Satyam for 15 years and was currently heading the company's global delivery unit, would assume charge as CEO with immediate effect.

The company's former CEO Rama Raju, along with Satyam founder Ramalinga Raju, is in judicial custody pending trial in a case relating to a Rs 7,800 crore accounting fraud in the IT firm.

The company's accounts are at present being restated by KPMG and Deloitte.

Datta, who would be overseeing the financial operations of Satyam, has served as director finance of Chennai-based Murugappa Group.

He said that completing the restatement exercise, Q3 results announcement and ensuring prudent financial operation would be the primary focus in the next few weeks.

Satyam said Rs 600 crore fresh funds sanctioned by banks, along with healthy collections, is expected to help tide over the company's financial challenges.

The company said that the special advisers, along with Boston Consulting Group, would assist the new CEO and the Board in defining priorities and their execution.

The Board termed the decisions as aimed at ‘quickly stabilising’ Satyam, which is smarting from a massive accounting fraud disclosed by Raju last month.

A team of market regulator SEBI is questioning the Raju brothers, with emphasis on insider trading as Satyam's stock prices could have been influenced by falsified profits.

Satyam also appointed Wachtell, Lipton, Rozen and Katz as its lawyers to address class-action lawsuits in the US and also said that its existing lawyers Latham & Watkins would continue to support it in its dialogue with the US market regulator SEC.

The company also reaffirmed that January worldwide salaries and the fortnightly salary in February (for its US-based associates) have been met from internal accruals.

The board also reiterated its focus on retaining customers and associates, evaluating long-term strategic options, assessing legal liabilities, undertaking cost rationalisation measures and resuming investment in identified areas.

Comments

» Mr. Murthy

Posted by R V CHAKRAVARTHY on 2009-02-06 09:53:24.859144+05:30
I still have a soft corner on Ramalinga Raju as all deeds may not have a positive omen all the times. Every thing will be normalised soon. Instead of making its a news lets hope for the best.Every entrepreneur must have an understanding capability of a structure of organization.

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» Satyam Saga

Posted by Abhay` on 2009-02-06 03:23:54.344438+05:30
Hello , No doubt there will be make ups and Uplifts to restore the Image of Satyam ,but this case has surely exposed the Malfunctioning of Top management and dishonest auditors.Henceforth we need to have regulations in place to avoid such duplicity.

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» Hello Murthy

Posted by sunil on 2009-02-05 21:28:06.727465+05:30
That "once (women) reach the age of 30, 35 or 40 years, they get complacent and do not want to forge ahead".That single women's "anxiety, attitude, communication methods, etc, cause concern".That "Especially in divorced women, we commonly find problems".That some of the divorced women "are difficult to fit into teams; they can make both insensitive bosses as well as subordinates."That "at senior levels family women fit in much better".All this and more here from Mr A.S. Murty, Director and Senior Vice-President, Human Resources, Satyam Computer Services. Repulsive stuff, actually. And on record, too. This may be the fourth biggest IT firm in this country, may be a billion dollar company, may be a great brand in the market; but if this is what the Human Resources Vice President believes in, I would rather starve than work for an organization like this. With such regressive ideas, does he really believe that he can "bridge the gap" and hire more women at senior positions?

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» satyam

Posted by Mponnambalam on 2009-02-05 21:21:31.186122+05:30
Behind every fortune there is crime.It is one famous saying.Now we change this as'Behind every financial fraud there is charted accountant,lawyer and politican.'

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» Satyam

Posted by bhattathiri on 2009-02-05 19:11:58.362612+05:30
Murthi's Management should be redefined to underline the development of the worker as a person, as a human being, and not as a mere wage-earner. With this changed perspective, management can become an instrument in the process of social, and indeed national, development.Now let us re-examine some of the modern management concepts in the light of the Bhagavad-Gita which is a primer of management-by-values.

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» Financial transactions of CAs with Raju

Posted by Damini Gupte on 2009-02-05 19:01:40.67522+05:30
Raju's multiple accounts had been definitely prepared by the CHARTERED ACCOUNTANTS, that is the real one. And instead false accounts being showed to shareholders of SATYAM. How much bribes had been taken by Chartered Accountants should have to be disclosed. Financial transactions of CAs with Raju

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» CAs ROLE IN MULTIPLE ACCOUNTING WITH RAJU

Posted by Pravin Chavan on 2009-02-05 18:38:58.597494+05:30
In this computerised world, whether authentication given by Chartered Accountants shall be regarded as valid ? It is the mostly possible that Raju has prepared multiple accounts

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» congress involved

Posted by arvind on 2009-02-05 21:16:12.296283+05:30
It is no secret that congress and its chief ministers are deeply involved. This can be easily known from the fact that the AP govt. was stonewalling the effort to grill raju by SEBI which has to take a court order. Crores of money has been funded to YSR personally and to the congress which overlooked the follies of raju. It is not possible without govt. help that he can buy such huge tract of land and nobody knows about it. YSR is fully involved and is nothing surprising it is a congress culture since long which is eating india from inside.

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» Satyam Scam

Posted by Maheshwar Reddy S. on 2009-02-05 18:07:57.112288+05:30
In my view, Satyam's Scam has got nothing to do with the AP Govt. One should appreciate the way Hon. Cm Mr. Raja Shekhar Reddy representing the state. Development or approach towards development should take place in every walk of life, not just IT. Satyam's scam is purely an Enterprise Governance Failure. There are many companies which are hosted by natives of AP, why do you think the AP Govt. focussed on Satyam itself. People who just play a blame game on AP Govt. should think thrice before they speak. Just go to villages and analyze the present situation of farmers, they are one among the most happiest persons in this world. I am just a normal citizen and an Information Security Expert and I am not backing anybody whatsoever. Thank You

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» YSR

Posted by Srinivas on 2009-02-06 01:31:02.563067+05:30
'Hon CM YSR Reddy'- that is the best oxymoron I ever heard. Don't bring this Reddy-Reddy bai bai stuff here. YSR is one of the worst factionist in the state and behind the cool persona he exhibits, there is a rutheless, cunning manipulator, a character that we often see as villains in movies.

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» Satyam and Reddy

Posted by PIN on 2009-02-05 20:31:58.138773+05:30
I am glad at least one person said Raja Shekhar Reddy is 'honorable'. If you put him away for some months, truth will come out faster and crores of rupees can be recovered faster.

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» Satyam and CM

Posted by D.A.Eswar on 2009-02-05 19:48:48.673609+05:30
I request people like Mr. Maheshwar Reddy not to give clean chit to CM Rajasekhara Reddy. Let Satyam be probed impartially as misdeeds of CM and Raju of Satyam are well known by their secret land deals and Mauritius remittances and Dubai Towers constructions running to Rs.15000 crores in last 4 years.

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» Scam hit satyam - perpetrator is govt.

Posted by oldindian on 2009-02-05 17:47:05.769583+05:30
It is reported elsewhere that accounts of satyam is not likely to be restated soon as per Mr Pareikh, current acting CEO of satyam. This is obviosly due to pressure from the government, that no efforts have been made to restate the accounts. Advani is right, when he attributes the scam to congress. We are surely going to have equivalent of 11/26 on corporate radar. The corporate affairs minister, andhra govt. are burying the scam. Secularism fully in action.

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» CORRUPTED SYSTEM

Posted by BHARAT MEHATA on 2009-02-05 16:47:44.76658+05:30
it is also desirable that all charters given to these three i.e. ICAI, ICSI, ICWAI, organisation members should have to be withdrawn permanently. At the moment of charters given to members of these third class educational institutions being taken back all black money will came into the system as white money

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