Priority is to prevent default on salaries, payments: Satyam

Priority is to prevent default on salaries, payments: Satyam director

15 Jan 2009, 2145 hrs IST, Chandra Ranganathan, ET Bureau

CHENNAI: TN Manoharan will be the second chartered accountant in the government-appointed board of software firm Satyam, which has been battered

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by an accounting scandal. The other CA on board is HDFC chairman Deepak Parekh.

Speaking to ET from Chennai, Mr Manoharan said his priority would be to study the financialstrength and ensure that there is no default on the salaries or payment front. The government on Thursday appointed three more directors to the Satyam board- CII chief mentor Tarun Das, former president of the Institute for Chartered Accountants (ICAI) TN Manoharan and LIC's S Balakrishnan. They join the other government appointees- HDFC chairman Deepak Parekh, ex-Nasscom president Kiran Karnik and former SEBI member C Achuthan.

The government dissolved software firm Satyam's board last week after the company's founder and chairman B Ramalinga Raju confessed to fudging the company's accounts for years to show inflated cash and revenues. Since then, a new board and new set of auditors have been appointed to bring Satyam's house in order and protect its 50,000-odd employees.

"The objective is to ensure sustainability and continuity, restore confidence ofemployees, investors and customers. My priority will be to study the financial strength, ensure there is no default in salaries or payments. Also direct the accounts to be restated as soon as possible."

Mr Manoharan further added, "The delivery has to be streamlined. We also have to ensure fund flow." On the source of funds and whether a bailout package is in the offing, Mr Manoharan said, "I am not aware of it specifically. We will meet on Saturday and take steps in this aspect."