Satyam board's minutes details Maytas decision
Coinciding with the meeting of the new board of Satyam, the minutes of the Dec 16 meeting of the now disbanded board became public, detailing the unanimous decision to acquire two Maytas firms that proved to be the nemesis of the founder Ramalinga Raju.business Updated: Jan 17, 2009 15:58 IST
Coinciding with the meeting of the new board of Satyam, the minutes of the December 16 meeting of the now disbanded board on Saturday became public, detailing the unanimous decision to acquire two Maytas firms that proved to be the nemesis of the IT company's founder Ramalinga Raju.
During the course of the meeting last month, Satyam's then Chief Financial Officer Vadlamani Srinivas informed the board that the valuation of Maytas Properties was done by Ernst & Young, but the global accounting firm disputed the claim.
According to the minutes, members noted the imperative of infrastructure foray, particularly based on leveraging on the brand of Satyam to become an eminent player in infrastructure as well.
There had been elaborate discussions on the valuation, wherein independent director T R Prasad had advised three distinct methods for evaluation of Maytas Properties while suggesting that in case the final valuation was higher than the aggregate of the three, "full and proper justification should be provided."
When contacted, Prasad said: "I had already made my stand clear and had the deal gone through it would have been subjected to rigorous board scrutiny."
The minutes came to public domain even as the new board of Satyam met for the second time today to discuss ways to steer clear of the financial mess that Raju had led the company into it. Raju had on January 7 disclosed that he had fudged Satyam's accounts for years.