Satyam pledging receivables to secure its fin base

Mumbai, Jan 21: Satyam Fiasco had shattered the company financially. After two weeks of the fiasco, its new Board member, Deepak Parekh on Wednesday, Jan 21 said that the company is trying to securing funds and retain its international clients.

Pledging receivables and discussions with host of banks and institutional investors have been Satyam's initiation to acquire funds.

"We are in the process (of raising funds)...unless the accounts are restated and reach some level of accuracy, banks will be hesitant to lend to Satyam," Parekh said.

"Satyam's new Board will meet tomorrow and the day after to discuss issues including appointments of top executives and ways to raise funds," Parekh said.

"The fourth-largest Indian IT major is in talks with its domestic and overseas clients to regain their lost confidence but has received a mixed response from clients on the continuity of their contracts," Parekh said.

"We are in talks with our clients...we have got a mixed response...they are not happy with the current status of the company's accounts," said Parekh, who is also Chairman of HDFC.

"Some of the documents of the company were found to have been forged...there are many agencies involved in the case and it may take time (to find out the facts) and investigations into the scam would take some more time, Parekh said.

Satyam's CEO and CFO Post

"The IT major has received around 40 applications for the post of the top job in Satyam and would consider appointing the CEO and CFO in tomorrow's board meeting," he said.

"I have personally got 40 applications...all of us are in the process of finding a good candidate (for the post of CEO)," Parekh said.

"We have a large set of receivables to recover and we have asked our sales team (to get the receivables back as early as possible)," Parekh said, adding, "the board has kept all options open (to meet the fund requirements)".

"Despite Satyam fiasco, the corporate governance structure of India Inc. continues to be strong," Parekh said.

"I strongly believe that the basic corporate governance framework continues to be robust in India and a few stray instances of misgovernance will not mar our standing," he said.

OneIndia News (With inputs from Agencies)