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Satyam board looks to raise cash | |
(about 6 hours later) | |
A senior Indian banker newly appointed to the board of fraud-hit Satyam Computers has said that the firm will try to borrow money from banks. | |
The money is needed to continue trading and pay salaries after it was discovered that 94% of the money on Satyam's books was made up. | |
"We will try to raise money through some banks," Deepak Parekh said. | |
"The fixed assets are absolutely clear", he told the BBC, adding Satyam had "no bank deposits but small debt". | |
Mr Parekh is part of a three-man board appointed by the Indian government in the wake of the Satyam scandal. | |
He said the government was looking to expand the board to four or five members. | |
'Hard work' | |
Meanwhile, the hunt for a new chief executive and chief financial officer was continuing at speed, he said. | |
"We are trying our best to see how we can be back in business," said Mr Parekh, who is chairman of HDFC bank. | |
"It requires a lot of hard work, of additional funding to make salary payments, and we hope we are able to do it. | |
"But the first step is to restate the accounts." | |
New auditors | |
Meanwhile, Satyam's new board has named KPMG and Deloitte as new auditors to replace former incumbent PricewaterhouseCoopers (PWC), which is assisting investigators. | |
Satyam's founder and chairman, Ramalinga Raju, stepped down last week and admitted the company's profits had been falsely inflated for years. | |
Mr Raju, his brother and the company's former chief financial officer are being held in custody. | Mr Raju, his brother and the company's former chief financial officer are being held in custody. |
Resignation letter | Resignation letter |
PWC has said it is assisting agencies investigating Satyam. | PWC has said it is assisting agencies investigating Satyam. |
On Wednesday it said its opinions on the company's financial statement may be rendered "inaccurate and unreliable", given the recent revelations. | On Wednesday it said its opinions on the company's financial statement may be rendered "inaccurate and unreliable", given the recent revelations. |
PWC said Mr Raju's resignation letter, which included revelations of overstated profits, could have a material effect on the veracity of Satyam's financial statements presented to it. | PWC said Mr Raju's resignation letter, which included revelations of overstated profits, could have a material effect on the veracity of Satyam's financial statements presented to it. |
"Consequently, our opinions on the financial statements may be rendered inaccurate and unreliable," PWC said. | "Consequently, our opinions on the financial statements may be rendered inaccurate and unreliable," PWC said. |
The letter from PWC to Satyam's new board was released by the Mumbai stock exchange on Wednesday. | The letter from PWC to Satyam's new board was released by the Mumbai stock exchange on Wednesday. |
On Tuesday, the Indian government said the Satyam scandal would be investigated by a federal office dealing with serious corporate fraud. | On Tuesday, the Indian government said the Satyam scandal would be investigated by a federal office dealing with serious corporate fraud. |
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