HYDERABAD, India, Jan 8 (Reuters) - The interim CEO and other senior executives of Indian software firm Satyam Computer SATY.BOSAY.N, which has been hit by a financial scandal, spoke to media in the southern city of Hyderabad on Thursday.
Ramalinga Raju, the chairman of Satyam, resigned on Wednesday saying that profits had been falsely inflated for years, sending the company’s shares plunging nearly 80 percent.
For detailed coverage, see [ID:nBOM394323].
Following are highlights of interim CEO Ram Mynampati’s comments at the media conference, which ran for more than an hour.
BUSINESS AND INVESTIGATION:
“I stand in front of you today shocked by the disclosures and recognising fully the severity of the issues.”
“Our only aim at this time is to ensure that the business continues.”
“I, along with other members of the board, received reports and data that were audited and verified by a leading accounting firm. We relied on that data.”
“Obviously, the most important activity is to assure the world that we are committed to ascertain the facts of the case and help investigating agencies in their process. The leadership team is committed in making this happen.”
“Some regulatory bodies have already started their work and we will continue to work with them closely.”
CLIENTS AND EMPLOYEES:
“The next step is to ensure that business continuity will remain undisturbed. We are taking immediate proactive steps to address this.”
“These steps include reaching out to customers to assure them that business support deliverables will continue, practicing complete transparency in all that we do, and ensuring a smooth transition of leadership.”
“We have begun an immediate outreach to customers around the world assuring them of our continued commitment.”
“Our top 100 clients account for almost 80 percent of total revenues and we are speaking to them individually.”
“We have already received many expressions of support from our key customers.”
“It is our top priority to protect (employees’) careers and livelihood.”
“Notwithstanding media speculation on significant number of exits and attrition, I want to assure you that we have seen no such trends.”
FINANCIAL CONDITION AND LIQUIDITY:
“We have launched a process to ascertain Satyam’s financial condition, especially its liquidity position, and to verify the disclosures made by Mr Raju.”
“The liquidity on the balance sheet is not very encouraging at this point.”
“We are looking at various options. No 1, to take care of outstanding responsibilities from a finance perspective as well as ensuring the sustainability of operations.”
“We’re also trying to come out with an assessment of the steps we need to take to maintain liquidity, including paying our subcontractors, paying our suppliers and associates.”
“What we know is we need some assistance as far as liquidity is concerned to deal with the business continuity for this month.”
“We have healthy receivables position. We are putting in a lot of effort in making sure our receivables are collected. We are also putting in a lot of efforts in identifying other avenues of liquidity.”
“We are confident that we will be in a position to deal with the obligations for this month.”
CHIEF FINANCIAL OFFICER:
“The CFO Srinivas (Vadlamani) has actually sent in his resignation today; we have not approved the resignation.”
“We have been in constant touch with the CFO. He had not been coming to office due to personal reasons but he had been cooperating fully in terms of the information he is to provide and channels he is to open up for access.
“What I understand is that he is very much in Hyderabad, but he assured us he will be at work next week.”
CHAIRMAN RAMALINGA RAJU:
“He assured us he would be available to provide any support if required. We have not contacted him since because the things we have been engaged in doing do not require us contacting him.”
“To explore strategic alternatives ... that becomes even more pertinent today.”
“We are looking at engaging an investment banker.”
RESULTS AND GUIDANCE:
“We are legally bound to declare the results by the end of this month, January.”
“The more prudent thing to do is to establish what our Q3 numbers are going to be and look at the business scenario and project out the guidance for the year including the situation for Q4. That would obviously mean a different number for the year than was originally stated.”
“Given the statements related to the accuracy -- or lack of -- of the previous numbers, any guidance that we would have given earlier based on that would probably not be relevant here in this context. (Compiled by C.J. Kuncheria; Editing by John Mair)
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