JOIN USThe company discussed cost control measures, including wage cuts, at its board meeting, Karnik told reporters after the meeting.
Concerned over rising cost hitting the revenue, Satyam Computer said it is looking at cutting down costs. “The customer front is good, stable. But costs are high... the revenues would be less,” Karnik told reporters after a meeting with board members and officials of Tech Mahindra. The company discussed a host of cost-cutting measures that can be explored.
Karnik, however, said the company is not looking at layoffs, it is exploring sabbatical and virtual bench strategy. Karnik said the meeting discussed the challenges to the bottomline, how to handle (excess) people, HR and real estate among others.
Karnik said the new auditors Deloitte and KPMG made presentation and said it would take minimum six months for restatement of company’s accounts.
On the protracted legal battle with UK-based mobile solution firm Upaid, Nayyar said an out-of-court settlement is favourable and the company would explore that option.
Last month, Tech Mahindra Ltd won an auction for a controlling stake in New York-listed Satyam. Satyam’s founder and former chairman shocked investors in January by saying profits had been overstated for years, putting in doubt the survival of a company once ranked as India’s fourth-largest software services exporter.
Meanwhile, Tech Mahindra Ltd Chief Executive Anand Mahindra said the fraud-hit outsourcer had 10,000 excess staff on an employee base of 40,000. Last month, Tech Mahindra won an auction for a controlling stake in New York-listed Satyam.
Nominee directors
Further, four nominee directors of Tech Mahindra, including its Chief Executive Vineet Nayar, were appointed on the board with effect from June 1.
The other three nominee directors on behalf of Venturbay Consultants (an arm of Tech Mahindra), which acquired 31 per cent stake in the Hyderabad-based company in April, include C P Gurnani, Sanjay Kalra and Ulhas N Yargop, Satyam said in a filing to Bombay Stock Exchange.
Gurnani currently heads Tech Mahindra’s global operations, Kalra is President Strategic Initiatives while Yargop is President for IT sector and member of Group Management Board of Mahindra & Mahindra.
The appointment of nominee directors comes pursuant to the completion of share purchase agreement between Tech Mahindra and Satyam Computer Services, under which the new owner of Satyam had completed the acquisition of a 31 per cent stake in the company for Rs 1,756 crore.
“Following the effectiveness of the appointment of Venbturbay Directors, there will be a total of 10 directors on the board,” Satyam said.
Last month, Tech Mahindra had outbid others in the race to acquire a majority stake in the scam-tainted Satyam Computer, following which Venturbay had deposited Rs 2,910 crore in the escrow account for a 51 per cent controlling stake in the IT firm.
Further, Tech Mahindra would be making a cash tender offer to the public shareholders for acquiring an additional 20 per cent, at a minimum price of Rs 58 a share, which is scheduled to begin on June 12. Tech Mahindra, in which BT Group Plc owns 31 per cent, has valued Satyam at about Rs 5,800 crore.