Corporate governance a key priority: Mahindra Satyam CEO

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Corporate governance a key priority: Mahindra Satyam CEO
Hyderabad: Chief Executive of Mahindra Satyam CP Gurnani has said that corporate governance is a key priority for the company, which was the victim of India's biggest corporate scandal. A new 'Shadow' board consisting of the brightest young minds has also been formed in Mahindra Satyam, to revive the company. "Our priority is to improve finances, put in place a robust corporate governance structure and focus on customers and associates," said Gurnani to The Times of India. Audit firm KPMG is working hard to restate past accounts and the Company Law Board has given the company time till June 30, 2010 to complete the re-statement. "We have also strengthened customer centricity by adding more value to services that we offer. The most difficult part is accepting a new culture. Our 35,000 employees now have direct access to the CEO," Gurnani added. The new board has a team of nine young professionals to help the management with ideas on how to make the company more profitable. "We do share data on market trends, feed-back surveys and so on. But the 'Shadow' board does not have access to sensitive financial information," said Gurnani. The company's operating margins have improved beyond three percent as it has cut costs by rationalizing work-force and saving lease rentals, according to the Chief Executive. Also, Gurnani denied reports that Satyam was billing for non-existent employees were incorrect. "We have not asked customers for a higher price, nor have customers asked for a lower price. Satyam lost nearly 100 out of its 500 plus clients after the scam-broke out," said Gurnani. The company has appointed global strategy and consulting firm Bain and Company as its consultants and also has a dedicated group to help evolve strategies to regain lost customers. Gurnani also pointed out that the overall market signal for the IT services sector is positive now.

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