- Active outreach to global clients even as customers affirm support and confidence
- Senior management pledge to stay with company; sends message of assurance to approximately 53,000 associates
- Will consider appointment of audit company for immediate investigation into allegations by founder and chairman Mr. Ramalinga Raju and to establish position of cash and bank balances
- Seeks nominations from regulators and industry associations for candidates for Board
- Recognizes need to strengthen corporate governance and cooperate with investigations by regulatory authorities and address legal issues
Hyderabad, INDIA, January 8, 2009: The top leaders of Satyam Computer Services Limited (NYSE: SAY) have launched an immediate action plan to ensure business continuity and leadership transition even as it initiates efforts to ascertain its liquidity position and verify allegations by its founder and chairman Mr Ramalinga Raju of financial irregularities.
Satyam’s leaders announced at a press conference at the IT services company’s headquarters in Hyderabad that the Company has started to actively reach out to customers globally and has been heartened to receive strong expressions of confidence and support from customers.
At the same time, the leaders of Satyam steering the organization through the crisis, and approximately 40 top managers representing the Leadership Council from various geographical regions have pledged their commitment to remain in the company. The leadership team is headed by interim CEO Mr. Ram Mynampati.
At a press conference chaired by Mr Mynampati announced several immediate actions already carried out or being undertaken by the leaders.
- Formulation of a Task Force to address all ongoing operational issues to ensure business continuity, including maintaining customer confidence.
- An immediate customer outreach by all geographical regions to assure clients that Satyam will meet all its business commitments. “Many clients rely on Satyam for mission-critical functions and collaborate closely with our team. While we have to address various customer concerns, we have been heartened by expressions of confidence and support from various clients,” said Mr Mynampati. Satyam’s top 100 customers account for 85% of total revenue and have had relationships with the company ranging from four to ten years.
- Assurances to the approximately 53,000 associates from leaders and line managers that the company’s places top priority in protecting the careers and livelihood of employees and their families. “We share the pain and grief being felt by all associates and their families and will do our utmost to ensure that salaries can be paid,” Mr Mynmapati said. “We are extremely touched by the outpouring of support from associates.”
- Begun a process to ascertain Satyam’s financial liquidity position and verify allegations by the Chairman. An independent audit is being contemplated.
- As part of efforts to strengthen corporate governance, leaders have accorded top priority to addressing various legal issues which are expected to unfold; and have written to the regulatory authorities and various industry associations for assistance to identify candidates to be new members of Satyam’s board.
The immediate action plans announced were collectively decided based on an initial assessment of the key challenges faced. These actions will be reviewed by the leadership team on a daily basis for the next few months.
“The leadership team comprises highly experienced veterans with cross-functional responsibilities across geographical regions. They have also been mandated with additional tasks of great urgency including collection of accounts receivable, cost containment as well as customer and associate retention,” said Mr Mynampati. “At the onset we wish to stress that the leaders have offered themselves to steer the organization through the current crisis.
Over SatyamSatyam Computer Services Ltd. (Euronext Amsterdam: SAYE, NYSE: SAY) is een wereldwijde dienstverlener op het gebied van advies en IT. Het bedrijf levert diensten op het gebied van advies, systeemintegratie en outsourcing aan klanten in twintig* verschillende sectoren in 65* landen, waaronder Nederland, België en Luxemburg. Satyam beschikt over een brede, functionele expertise, hoogwaardige technologische kennis en een wereldwijd delivery-model om bedrijven te helpen bij het optimaal inrichten van hun belangrijkste processen en hun prestaties te verhogen. Bij Satyam werken 52.865* professionals op het gebied van engineering, productontwikkeling, supply chain management, CRM, BPM, BI, enterprise integration en infrastructuurbeheer. Satyam bedient 690* klanten vanuit zijn Development Centres in de Verenigde Staten, Canada, Brazilië, het Verenigd Koninkrijk, Hongarije, Egypte, de Verenigde Arabische Emiraten, India, China, Maleisië, Singapore en Australië. Van deze klanten behoren 185 klanten tot de Fortune® 500. Voor meer informatie:
www.satyam.com.
* Per 30 september 2008.Voor meer informatie:Lammers van Toorenburg Benelux PR
Lianne van Dijk
Telefoon: +31 (0)30 65 65 070
E-mail:
lianne@lvtpr.nlSatyam Computer Services Ltd.
Sandeep Thawani
Telefoon: + 44 (0)20 7715 5000
E-mail:
sandeep_thawani@satyam.com
Safe Harbor
This press release contains forward-looking statements within the meaning of section 27A of Securities Act of 1933, as amended, and section 21E of the Securities Exchange Act of 1934, as amended. The forward-looking statements contained herein are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements. Satyam undertakes no duty to update any forward-looking statements. For a discussion of the risks associated with our business, please see the discussions under the heading “Risk Factors” in our report on Form 6-K concerning the quarter ended December 31, 2007, furnished to the United States Securities Exchange Commission on January 28, 2008 and the other reports filed with the Securities Exchange Commission from time to time. These filings are available at www.sec.gov. This announcement is not an offer of securities for sale in the United States. Securities may not be offered or sold in the United States absent registration or an exemption from registration. Any public offering of securities to be made in the United States will be made by means of a prospectus that may be obtained from Satyam and that will contain detailed information about Satyam and its management, as well as financial statements.