Satyam is not sure of paying out the salaries of its 50,000 employees.
The new task force of the beleaguered Satyam Computer Services has agreed that the liquidity position in the company is “not very encouraging”. The company does not have enough cash to run its business and the interim CEO said the availability of cash to meet expenses in the current month is doubtful. In fact, the company is also not sure of paying out the salaries of its 50,000 employees.
“The liquidity position in the company is not very encouraging. We have enough resources to meet the commitments including the salaries of the employees for December. But, we are not sure about January,” Ram Mynampati, the interim CEO of the company, said.
However, Mynampati said that there are enough receivables and the clients too had promised to support the company and the employees in meeting the commitments. “We have looked at the balance sheet and we are verifying the figures. There is a healthy receivables position. We are also putting in efforts to identify avenues to maintain liquidity,” he said.
Apart from the salaries, the company has also several vendor commitments and the sources agreed that the vendor commitments have been pending for some time. Turn to “It would take some time before we clear off the dues to the vendors,” the source said.
The interim management team is now planning to audit all the books to know the assets and liabilities, which were otherwise handled centrally out of the chief financial officer’s office in the company headquartrs at Hitec City. The team has, for now, enagaged some employees with experience in accountancy to verify the books and the auditing process would soon be taken up again with the help of Price Waterhouse in addition to external auditors.
“We need to look at all the books to understand the numbers. We are doing that process and it would take some time before arrive at conclusions,” Mynampati said. However, he refused to give out any numbers and also said that the old numbers including the guidance given for this year have no relevance in the given conditions. “If you want me to give numbers, I have no answer. I don’t know,” he said.
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