Satyam, the Indian IT service provider at the centre of a $1bn accountancy fraud said this morning that it faces a major challenge to rebuild its cash reserves
Interim CEO Ram Mynampati said in a conference that the amount of cash on the balance sheet "is not encouraging".
"We need some assistance as far as liquidity is concerned to pay [suppliers]," added Mynampati.
He said he is confident that Satyam can pay bills this month and in the future. "The most important issue is to sustain the company," said Mynampati.
The crisis lead to the resignation of Satyam's CFO this morning. Mynampati said the resignation had not been accepted and described the grounds for resignation as the CFO's wish to sever ties with the company given the current crisis.
When asked how the fraud was able to go unnoticed for years, Mynampati said the company sees the published audited statement from PricewaterhouseCoopers (PWC). Satyam said it has not yet discussed this with PWC.
Satyam chairman B Ramalinga Raju admitted yesterday that he has fixed the company's books for several years. The revelation came in a letter to the company, received last week, in which he confessed to inflating the company's financial figures.