New Satyam SWAT team distances itself from the scam

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"We don't know"--that is a clear signal coming out from the newly appointed SWAT team, headed by Ram Mynampati who clearly for several of those questions had no answers. Some key headlines coming out is the fact that the CFO of the company, Srinivas Vadlamani, has submitted his resignation. The board, it seems, has not accepted his resignation.

 

More importantly, Ram Mynampati is very clearly saying that they had absolutely no visibility--completely absolving themselves of the entire Rs 7,000 crore scandal. They say there has been absolutely no visibility in the finance and everything was at the CFO's door, and therefore, this existing team, Ram Mynampati included, who is also on the board, saying they had absolutely no visibility at this point in time in terms of what was going on and those declared numbers and they just went by what the auditors said. They were relying on the figures that were published.

 

The key points coming out at this point, as far as liquidity is concerned, is not encouraging. It is, in fact, not healthy at all. However, for the month of December, salaries have been managed but situation after that it is not very clear.

 

Key aspect to this is right after that letter that Ramalinga Raju sent out to the board of directors and to the exchanges, he actually did a conference call. He (Ram Mynampati), Srinivas Vadlamani, the CFO, and the leadership team that was presented in the presser did a conference call with Ramalinga Raju explaining the situation. If one were to go by the word of what Ram Mynampati just said that--it seems that Ramalinga Raju actually expressed that he would provide support in providing them with the details of what really happened.

 

So, the situation, as of now, is that the Satyam management--the SWAT team--is claiming complete ignorance of what has happened of the Rs 7,000 crore scandal that has happened in this company. They are simply making assurance that the process of verification is on. The process of verification of the veracity of the letter written by Ramalinga Raju, the process of verifying of whether the claims made in that letter is true and also restating their accounts--the financial restatement is also being done.