New Satyam Board to meet today
12 Jan 2009, 1047 Hrs

On Sunday, the government appointed three new members on Satyam's Board

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Hyderabad, Jan 12 The first formal meeting of the newly constituted board of Satyam Computers will be held here today to chart out the future course of action.

On Sunday, the government appointed three new members on Satyam's Board. Three members are HDFC Chairman Deepak Parekh, former Nasscom chairman Kiran Karnik and former SEBI member C Achutan.

New York-listed Satyam welcomed the reconstitution of the board, saying it would ensure the outsourcer's continued operations, help maintain customer confidence and staff morale, and restore investor trust.

The agenda of the new board's meeting was not disclosed but analysts said it would likely focus on ways to retain existing clients such as General Electric and Nestle and how to guarantee working capital.

In a related development, Satyam Computer's Chief Financial Officer, Vadlamani Srinivas was sent to jail after he was taken into judicial custody till January 23. Police stepped up their investigation into the case, having charged Satyam Chairman Ramalinga Raju and his brother B. Rama Raju with criminal conspiracy and forgery on Friday after Raju said profits had been falsified for years and quit.

The brothers are being held in jail after they were taken into judicial custody till January 23.

A case has been filed against Raju under Sections 120-B (criminal conspiracy), 406 (criminal breach of trust), 420 (cheating), 468 (forgery for cheating) and 477-a (fraudulent cancellation of securities) of IPC.

Raju had on Wednesday disclosed a financial fraud in the company to the tune of Rs 7,800 crore by inflating profits and showing fictitious assets where none existed.

The company's scrip has fallen nearly 80 per cent since the revelation was made. (ANI)