The central government is likely to offer a bail-out package for scandal-hit Satyam Computer Services Ltd as the newly-constituted board works out accelerated recovery of dues from clients amidst probes by government agencies into the fraud at India's fourth-largest software exporter.
A 3-member board comprising HDFC chairman Deepak Pareekh, former NASSCOM chief Kiron Karnik and former SEBI board member C Achuthan to oversee the functioning of Satyam Computers in the interim, also met for the first time to chalk out plans for rescuing Satyam from the rut.
Speaking on the sidelines of the meeting, board member Parekh said Satyam's working capital requirements needed immediate attention and that he expects the government to provide temporary liquidity to Satyam to overcome the crisis. The amount of liquidity required has not yet been determined, he added.
The board has taken up the issue of appointing an independent accounting firm on a prority basis, possibly within the next 48 hours, to restate the financial and announce the Q3 results.
The new board, which is expected to hold a series of meetings over the next few months, said it has faith in the commitment of Satyam officials.
''The associates are definitely of high quality and they have shown tremendous resilience and commitment, amidst all the adversity that they have been subjected to,'' the release said.
The board also assured Satyam's customers that they will continue to receive services with minimal disruption.
''We like to assure Satyam's customers that our immediate priority is to ensure sustainability of services with minimal disruption. The government is keen to do everything possible to quickly get the organisation on its feet and conduct business as usual,'' it said.
The board, however, said the issue of working capital requires immediate attention and it will work with the Satyam team to tide over the situation.
Parekh also said there was a need to appoint new chief executive and a chief financial officer for the company, adding "we have no candidates in mind" and no one was willing to join within 24 hours.
The new Satyam board, which concluded its first meeting today, said its top priority was to restore customer confidence of the customers, employees, suppliers and investors by ensuring business continuity.
''An issue of this enormity would need careful consideration and extended, meaningful reviews, before it is resolved. We will, however, attempt to give you an overview,'' the bard said in a release. ''It is important to recognise though, that the board may not be in a position to communicate the details on many issues, at this juncture. We will try and answers some of the questions that may be uppermost in all our minds, today,'' it added.
The government will be enlarging the Satyam board by appointing a few more members soon. It will also appoint a chairman along with the constitution of the full board.