Central Government orders inspection of eight Satyam subsidiaries
8 Jan 2009, 2155 Hrs

inspection would be conducted as per the provisions of Section 209A of the Companies Act, Corporate Affairs Minister Prem Chand Gupta told reporters on Thursday

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New Delhi/Hyderabad, Jan.8 The Central Government on Thursday ordered a probe into the books of accounts of eight subsidiaries of Satyam Computer Services, a day after the company's former chairman and managing director, B Ramalinga Raju, admitted that the company had forged accounts.

The inspection would be conducted as per the provisions of Section 209A of the Companies Act, Corporate Affairs Minister Prem Chand Gupta told reporters on Thursday.

The subsidiaries, whose accounts will be verified by the government, are Maytas Properties, Maytas Infrastructure, Satyam BPO, Nipuna Services, Knowledge Dynamics, Nitor Global Solutions, Ca Satyam ASP and Satyam Venture Engineering Services.

Meanwhile in Hyderabad, company officials admitted that the firm's liquidity position was not motivating enough, and that the management is exploring other avenues of liquidity.

Satyam's interim Chief Executive Officer, Ram Mynampati, told a press conference in the city that the liquidity position of the company was not encouraging.He, however, declared that receivables position was healthy.

The company has started the process of verifying its financials and liquidity position, Mynampati said, adding that it "has been reaching out to all regulatory bodies."

Replying to a query about the composition of a new board following the spate of resignations after the embarrassing Rs. 7,106 crore fraud, Mynampati told mediapersons here that the company has started looking for new board members.

Mynampati, however, said that the company was aiming at measures to ensure that business continued as usual after revelations of financial irregularities by Chairman B Ramalinga Raju.

The company is reaching out to the top clients who make up the bulk of its revenues. "We are also reaching out to 50,000 employees to protect them," he added.

Mynampati also informed that he and other board members relied on auditor reports, and therefore, were unaware of the extent of the fraud.

"I am even shocked by disclosures and severity of issues," he said.

Mynampati categorically denied having any relations with the promoter family of Satyam. (ANI)