Finally, a number is out on what Satyam Computer Services is owed – a sign of financial strength amid a series of numbers showing what it owes.
The cash strapped firm has outstanding receivables of about Rs 1,700 crore, newly appointed board member and HDFC chairman Deepak Parekh said on Thursday.
“The government doesn't bail out corporates, said Parekh playing down speculation that the state may pump in doles to help the Hyderabad company. He said the need for aid would depend on Satyam getting receivables.
He further added that receivables are coming in every day and Satyam has paid the salaries of US employees.
“We are trying our best to salvage Satyam but we need time,” Parekh said after meeting corporate affairs minister P.C.Gupta and Planning Commission deputy chairperson Montek Singh Ahluwalia.
Parekh also said that KPMG and, Deloitte have started auditing the books of Satyam. KPMG and Deloitte would restate accounts in 8 to12 weeks.
He said “loss of credibility” is the foremost concern for the newly appointed members of Board of Satyam Computers. Fiscal problems are manageable if clients do not loose faith in the tarnished company, he said.
“Give us sometime. We are trying our best. Satyam has large receivables. If they come on time, we do not need any assistance. Its assets could also be hypothecated to borrow money in-between,” he told reporters.
“Unless the auditors re-state the accounts, we do not know the total amount of receivables. They (auditors) say at least eight to twelve weeks is required to re-state the accounts,” he added.