INDIA'S government dashed investor hopes of any bailout Thursday for fraud-hit Satyam as shares of India's fourth-largest information technology company tumbled by over 30 per cent."This government is not going to directly or indirectly subsidise wrongdoing and fraud," junior Industry Minister Ashwani Kumar told reporters in New Delhi.At the same, the government would try to do whatever it could to save the jobs of Satyam's 53,000 employees, he said.Corporate India has been stunned by Satyam founder-chairman Ramalinga Raju's revelations last week that he falsified the company's accounts by over one billion dollars, jeopardising the outsourcer's survival and casting a cloud over financial reporting standards in the country.Shares of Satyam fell 32.22 per cent or 9.65 rupees to 20.30 rupees Thursday as talk faded of government help, dealers said.The stock of the New York-listed company has plunged nearly 90 per cent since Raju's dramatic confession that 94 per cent of the cash on Satyam's books did not exist.Economic Affairs Secretary Ashok Chawla also said there was no plan for a bailout for Satyam, although Commerce Minister Kamal Nath had earlier said the government was willing to consider support for the cash-strapped company based in the southern city of Hyderabad."Not at this stage," Mr Chawla said when asked if the government would offer a bailout.Newly appointed Satyam director Deepak Parekh told reporters in New Delhi the company had "receivables" or money owing worth 17 billion rupees ($551.6 million dollars) and that the company could mortgage assets to raise funds.Mr Parekh, chairman of India's Housing Development Corp, was one of three directors named by the government to Satyam's board to restore the company's credibility after the scandal broke."Until we know the real position, how can we speak of a bailout?" Parekh asked after meeting Corporate Affairs Minister Prem Chand Gupta.Two global accounting houses, KPMG and Deloitte, appointed as interim auditors, have been asked to restate Satyam's finances.PricewaterhouseCoopers, which had audited Satyam's accounts, had said its reports might be "unreliable" in light of Raju's admission that he fudged the books.Mr Raju, his brother and co-founder B. Rama Raju and chief financial officer Srinivas Vadlamani, are in jail facing charges of criminal conspiracy, cheating and falsification of records.Another new board member, Kiran Karnik, said the board would focus on raising funds from equity partners and banks to solve its cash crunch.Mr Karnik, a former chief of the National Association of Indian Software and Services Companies, said Satyam needed funds to meet working capital requirements and pay staff but did not disclose how much."Our only concern is to keep the show going and hold on to the clients and the workers," he told the Times of India.Late Thursday the government appointed three more new members to Satyam's board, including Tarun Das, chief mentor of India's leading industry lobby group Confederation of Indian Industry. The government has named businessmen considered pillars of India's corporate establishment to Satyam's board, which now has six members. The expansion came two days before the board was due to hold its second meeting. Analysts say the company's survival hinges on whether it can retain its customers. Meanwhile, Satyam announced it was continuing "to search for suitable candidates for the chief executive and chief financial officer." The new board is working toward making Satyam financially viable before any merger or sale is considered, Mr Kiran said.
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