Rs 6-billion bank funds for Satyam working capital

The cash-strapped Satyam Computer Services would borrow Rs.6 billion (Rs.600 crore/$130 million) from banks to meet its working capital requirements, the company confirmed Thursday after a two-day board meeting here.

“This funding, along with healthy collections, is expected to help the company tide over its financial challenges,” the IT bellwether said in a statement, but did not name the banks which had sanctioned the funds.

Satyam also reaffirmed that the January salaries for its global employees and February salaries (fortnightly) for its US-based staff have been paid from internal accruals.

“Completing the complex financial restatement exercise, including announcement of third quarter results and ensuring prudent financial operations will be the primary focus in the next few weeks,” Partho Datta, who has been appointed as one of the two special advisors to the board, said.

Datta, a veteran chartered accountant, will be overseeing the financial operations of the company.

Former Tata Chemicals managing director Homi Khusrokhan is the other special advisor appointed to assist the six-member Satyam board.

The board also appointed A.S. Murty, a Satyam veteran, as the new chief executive of the IT bellwether with immediate effect.

Murty was Satyam's chief delivery officer, responsible for delivery excellence and leadership development.

“Murty is a Satyam veteran of 15 years, who has been in its forefront since January 1994. He brings to play a deep understanding of the organisation, proven expertise in leading a business unit, overseeing global delivery, nurturing customer relationships and spearheading the entire gamut of the human resources function,” board member Deepak Parekh said in a statement.

C. Achuthan, former presiding officer of the Securities Appellate Tribunal and a Satyam board member, chaired the two-day meeting.