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Satyam back on track; Clears all liabilities
By SiliconIndia   |   Thursday, 02 April 2009, 20:06 Hrs   |    45 Comments
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Satyam back on track; Clears all liabilities
Chennai: Satyam Computer, which was struggling to even meet its January salary bill, now reports a small cash surplus. The company has cleared all its liabilities including salaries and supplier payments, said a top official on the request of anonymity.

The company has managed its operations with collections of over Rs 2,000 crore from customers in the last three months or an average of Rs 700 crore a month, reported Business Line. When Satyam nosedived into deep crisis in January with Ramalinga Raju went public confessing to inflating balance sheet, the company had receivables of a little over Rs 1,700 crore, all of which has been recovered in the period since, said the official.

Satyam spent almost Rs 1,000 crore in March to meet its salary and other obligations pending since January. Almost the entire money was spent from internal accruals over the last three months, leaving it with about Rs 200 crore cash as of April 1.

In February, Satyam was left with surplus cash of over Rs 450 crore after payment of salaries. This included the Rs 300-crore loan it borrowed that month, which it used to repay old loans and also meet forex losses from prior hedging contracts. The company is understood to have been sanctioned a further Rs 385-crore loan from two different banks, which it has not availed itself of yet.

Given the healthy cash situation, Satyam also has reportedly discharged most of its liabilities for pending bills, including supplier and vendor payments, in March. Vendors are understood to have opted to take cash immediately in return for small discounts of up to 10 percent on their pending bills.

The company faced an employee attrition of 10-15 percent in the last three months, which according to the official, is on par with industry average. The total employee count now is around 47,000 with Satyam alone having around 43,000 employees on its rolls, he said.

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Reader's comments(45)
1: I wonder how far this is true else i must be losing track of the general circumstances currently at Satyam. As of recent there have been three more arrests by CBI of top Satyam executives. As TIMESONLINE report dated April 6, 2009 claim investigators believe that complicity in the UK Pound 1billion fraud extends far further than the company's disgraced founder claimed.

This drilling will go on for a substantial period while more executives who shared deals would be investigated from the corporate's grass roots. Corporates known to have keen interests in buying Satyam may face costly class action lawsuits in the US. Failure of corporate governance has led to deceptive attempts to fabricating "fictious" cash and other non-existent assets to commit the country's largest corporate scandal.

However, with Satyam inviting "blind" bids for 51% stake in the business is quite a debut here without a trust worthy picture of Satyam's financial health is inducing a huge risk.

If Satyam is truly back on its tracks as this report says then credit certainly should go on to the new management team who have certainly come up with a credible turnaround strategy to grow and prosper. Certainly, a lot of credit should simultaneously also be given to Satyam's employees for they make the most valuable asset of the company.

The views expressed above are the writer's personal views and should be treated as such and can be contacted at rolando@saudi.net.sa
Posted by:Rolando - 06 Apr, 2009
2: hey guys im a 2008 passed out candidate selected by satyam.is there any chance tht satyam will cal us ?
Posted by:natbxn - 05 Apr, 2009
3: zuk.
Posted by:Aseem - 04 Apr, 2009
4: Good luck Satyam employees.Do lot of hard work.
Posted by:N.S.Chandra shekar - 04 Apr, 2009
5: our attempt may fail, but we sud never fail to make an attempt..... tht sud b the attitude.. which satyam proved to be right.....
Posted by:gautam agarwal - 03 Apr, 2009
6: Every dog has its own day.Today is the satyam turn.It is just faith in the company which CUSTOMER HAS IN IT.
Posted by:Hanumanth - 03 Apr, 2009
7: We are expecting this news well in advance, coz its not just a lake its ocean, and few people below talks really hurts one feelings. Satyam computers never dries up . all the best to satyam team and the credit goes to the new team coo/chairman and md. wish the all the best
Posted by:shashi kanth - 03 Apr, 2009
8:
Why Shashi?
Why sympathy for them. You should know that most of us have lost in thousands if not in lacs in stocks
Sampath Kumar Replied to: shashi kanth - 03 Apr, 2009
9:
Sampath you just lost few pieces of paper ...others lost their future....
Sandeep Replied to: Sampath Kumar - 01 May, 2009
10: I GUESS THIS NEWS TO BE A RUMOUR BY SATYAMITES. THEY ARE JUST FOOLING EVERYONE. FRIENDS DO YOU STILL BELIEVE THEM.
Posted by:Siddharth - 03 Apr, 2009
11:
u siddarth , do u know anything about happenings. if not. shut u r as?.
mano Replied to: Siddharth - 03 Apr, 2009
12:
hey, mano ko churkaa lag gaya - kya baat hai?
PAPPU BURA MAAN GAYA!
WHAT'S UP MAN?
coolguy Replied to: mano - 04 Apr, 2009
13:
pappu must be very close to some one in SATYAM.
foxer Replied to: coolguy - 04 Apr, 2009
14:
mano ya na mano,

certainly it seems that you are one of those satyamites. i understand it hurts.
Raghu Replied to: mano - 03 Apr, 2009
15: this is incorrect news! from where do you get this bogus news!
I have checked with one of my friends who works with Satyam and he totally disagreed.
Posted by:Srinivas Reddy - 03 Apr, 2009
16: ya folks, show the world that India is great. It would be a good proposal if the shares are given to the employees of satyam, and not to third parties
Posted by:shankar - 03 Apr, 2009
17: It's a great news that satyam is regaining. I also appreciate that the government instead of starting a blame game took responsibility of the situation . This saved the image of Indian IT industry across globe .
Posted by:Saurabh Gupta - 03 Apr, 2009
18: Many many thanks to Govt. and best wishes to all the Satyam employees, who have gone through a very tough days and somuch of mental tensions. Now they can sleep peacefully at Night. We all wish that satyam should either go to IBM or to L&T but if it goes to others then a new Ramalinga Raju will come out again.
Posted by:Sujeet - 03 Apr, 2009
19: Hope its a ture facts, but not just to boost the share holders as its branded as a fraudster company, any thing we feel to dowt it now.
Posted by:sureshs - 03 Apr, 2009
20:
True dude, Hope the data showcased here are not inflated. It can be marginally true but not sure. Anyway, hope for the best.
harry Replied to: sureshs - 03 Apr, 2009
21:
dear u r right.............
madhu Replied to: sureshs - 03 Apr, 2009
22: Mr. Narayana Murthy can now consider to 'touch' this comapany. Remember he was a crook when he told he will nto touch a tainted company!
Posted by:ajay - 03 Apr, 2009
23: Thanks and good wishes to satyam and its employees. Good news to me as it is to 47000 families +
Posted by:Dr Dinesh Zalmi - 03 Apr, 2009
24:
thanks Dr. dinesh Zalmi
Santosh Singh Replied to: Dr Dinesh Zalmi - 27 Jul, 2009
25: Three cheers for sathyam and to the employees.
Posted by:satish - 03 Apr, 2009
26: I am always proud to be a Satyamite and now more.....more then Ever. Soon we will be back to race...No. 1 IT company of The Great India. Thanks to all of you and best wishers of Satyam.
Posted by:Neel - 03 Apr, 2009
27:
Thats the spirit man which is making us to work even harder I am proud of you to have such ppl in our company
Sanram Replied to: Neel - 04 Apr, 2009
28: A defeted person will try hard to win same case with satyam i am sure one day it will be on top.
Posted by:Sandeep - 03 Apr, 2009
29: its a really healthy sigh of turnaround now i think satyam should stop the bidding for its aquring
Posted by:gunjan - 03 Apr, 2009
30: So do we need fresh bidders? Why not let Satyam be managed by the present team.Banks could give loans to employees to buy up the Raju's stakes. APIDC or any other state-owned VC could hold some stake and help the Company in stabilising its operations and internal controls. 47,000 families depend on who owns and controls Satyam!
Posted by:Ravi - 03 Apr, 2009
31: Really a positive sign...Keep going SATYAM.All the very best to our SATYAM n employees.
Posted by:Kavitha - 02 Apr, 2009
32: may be it not inflating again?....
Posted by:chandrashekar - 02 Apr, 2009
33: That's certainly a Very POSTIVE news from SATYAM's. Keep doing the good job and have faith in what you have been doing. No doubt, SATYAM will be again in the RACE for No.1 and guys, do your best to get back the lost glory of Satyam and the city of Hyderabad.

All the Best Guys.
Posted by:K S Chakradhar Reddy - 02 Apr, 2009
34: Xcellent News and nice to hear after a long time.
Keep rocking guys.
Posted by:Praveen - 02 Apr, 2009
35: Oh Great! I m very happy for Satyam n their employess. keep moving..........
Posted by:Ravi Gupta - 02 Apr, 2009
36: It is nice to hear that Satyam is recovering..
Posted by:K.Charan Kumar - 02 Apr, 2009
37: Nice to hear gud news
Posted by:Sailaja Reddy - 02 Apr, 2009
38: I m agree with u dude
Posted by:var - 02 Apr, 2009
39: A good sign. It seems like recession is receding. Some banks have started reducing their lending rate. Job market is slowly picking up. Great....
Posted by:Sagar - 02 Apr, 2009
40:
I want this company to be back on track and sailing high...!
T.D Replied to: Sagar - 02 Apr, 2009
41:
Good sign. satyam will again lift India's image in the WORLD IT Market
JAIKUMAR Replied to: T.D - 03 Apr, 2009
42:
I wish the same
Deepa Replied to: JAIKUMAR - 03 Apr, 2009
43:
May god bless Satyam employees and its investors. Its greatly handles by government and independent observers and thinktanks. hats off to govt. for stepping in and stopping it from becoming country's mess.

I also now govt. and the judiciry to do its job by taking on the culprits and bringing them to justice. Ramalinga raju and his accomplises should now be hitted.. hitting hard.
satyam Replied to: Deepa - 03 Apr, 2009
44:
God damn!i will agree with you guys.i am also happy as satyam is recovering..and am sure that satyam will be back on race,,,but plz plz don't blame raju sir,he has done much to the company.ok i know he has done the fraud.but jus think,if he is not there,who the hell will bring satyam into light.guys now also i say only one thing,Satyam rocks as well as Ramalinga raju sir also rocks
pavan Replied to: satyam - 03 Apr, 2009
45:
good job guys.All this is result of hard work and self belief of all satyamites. What Ramalinga Raju did was wrong but as a company Satyam has always set examples. We all are from same industry so lets appreciate the efforts rather than speculate if this is true or not.
Pawan Replied to: pavan - 03 Apr, 2009
Beautiful and dress selection, please go to Dresses
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