Satyam chief financial officer Srinivas resigns

January 8th, 2009 - 11:40 pm ICT by IANS  

Ramalinga RajuHyderabad, Jan 8 (IANS) Chief financial officer (CFO) Vadlamani Srinivas of the tainted Satyam Computer Services Ltd resigned from the IT bellwether a day after founder chairman B. Ramalinga Raju quit admitting to a massive financial fraud, a top company official said Thursday.“CFO Srinivas has sent his resignation today (Thursday). We have not approved it. We have forwarded it to the board, which will consider it in the board meeting Saturday (Jan 10),” Satyam interim chief executive Ram Mynampati told reporters here.

Addressing a crowded press conference at the company’s corporate headquarters, Mynampati said Srinivas has not been attending the office for some personal reasons though he was very much in the city.

“We have been in touch with Srinivas. We had a conference call with chairman, managing director (B. Rama Raju) and CFO within half an hour after coming to know of his (Raju) resignation. He assured us that he will be available and provide support if required. We are getting necessary support from the CFO,” Mynampati recalled.

Thought Srinivas has been cooperating fully in terms of the information he has to provide, his whereabouts are not known to the interim management. He is expected to return to work next week as he has to serve the notice period.

“There is a notice period after submitting resignation and the employee is bound to come to office.”

Asked who would be the next CFO and when the appointment would be made, Mynampati said any of the many competent persons within the company could be considered for the post.

“Best thing is to have an interim CFO within the organisation and maybe get external assistance to set things right,” Mynampati, who is also a full-time director on the board, pointed out.

In view of the urgency of the situation, a few chartered accountants in the organisation had come together and started assessing the position relating to the state of finances.

“The finance team is busy assessing the situation,” he added.

Investors are of the view that as CFO of the global software major, Srinivas would have been privy to all the transactions taking place in the company over the years.

“The CFO should have been aware of the financial irregularities, including fudging of the earnings figures,” an institutional investor commented.

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