Thursday, January 15, 2009
Satyam not Govt Bailout Plan it is Viable: Karnik
"New Delhi: Fraud-scarred Satyam Computer Services is a financially viable company and there is no plan for a government bailout, reports said on Thursday, quoting a newly appointed director.
“Taking money from the government will send a wrong signal,” Kiran Karnik told the paper, amid speculation that the state will have to step in to rescue the firm.
As per the leading Indian daily, raising funds from equity partners and banks was the top priority of the new board to meet working capital and to pay salaries to staff.
Karnik is one of three board members appointed by the government on Sunday after Satyam’s chairman last week revealed India’s biggest ever corporate scandal, threatening the firm’s survival.
Satyam has a 53,000-strong workforce and counts Nestle and General Electric among its clients.
Karnik, a former head of Indian lobby group National Association of Software and Services Companies, told the Times of India the company was a “very viable organisation” and would make a profit in a few months.
“Our only concern is to keep the show and hold on to the clients and the workers,” he said.
Satyam appointed two new audit firms on Wednesday to examine the extent of the fraud, determine how much cash it has on hand and restate"
“Taking money from the government will send a wrong signal,” Kiran Karnik told the paper, amid speculation that the state will have to step in to rescue the firm.
As per the leading Indian daily, raising funds from equity partners and banks was the top priority of the new board to meet working capital and to pay salaries to staff.
Karnik is one of three board members appointed by the government on Sunday after Satyam’s chairman last week revealed India’s biggest ever corporate scandal, threatening the firm’s survival.
Satyam has a 53,000-strong workforce and counts Nestle and General Electric among its clients.
Karnik, a former head of Indian lobby group National Association of Software and Services Companies, told the Times of India the company was a “very viable organisation” and would make a profit in a few months.
“Our only concern is to keep the show and hold on to the clients and the workers,” he said.
Satyam appointed two new audit firms on Wednesday to examine the extent of the fraud, determine how much cash it has on hand and restate"
