Satyam close to sealing funding


Satyam close to sealing funding

Karl Flinders

Satyam will have enough money to pay staff and suppliers at least until the end of March.

The Indian IT service provider is finalising arrangements to make sure it has enough cash to pay salaries and suppliers.

The announcement of the funding, which is expected next week, is a relief after the firm warned that it was short of cash after the $1bn fraud committed by its former chairman was revealed.

Ram Mynampati, who was named interim CEO immediately after news of the fraud, said in a conference that the amount of cash on the balance sheet was not encouraging.

"We need some assistance, as far as liquidity is concerned, to pay [suppliers]," he said at the time.

The firm was considering asking customers to pay early. Indian corporate affairs minister Prem Chand Gupta revealed last week that the company is owed $347m in fees. "Satyam can request its clients to pay in 30 days, instead of 60 days or 90 days, so that the company has working capital," he said.

Satyam chairman B Ramalinga Raju admitted that he had cooked the company's books for several years. The revelation came in a letter to the company, in which Raju offered his resignation and confessed to inflating the company's financial figures.

Satyam's government appointed board has also narrowed down the choice of new CEO and CFO to three people for each job.

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