Finally, Satyam staff get their January salary

Written by Rachana Khanzode | Mumbai | Updated: Feb 4 2009, 04:42am hrs
Employees of Satyam Computer have finally received their January salaries, albeit at the end of the month. Satyam employees have their salary account at HDFC Bank, ICICI Bank and Citibank. We received our salaries in the weekend. However, there was some delay expected due to lack of transparency of any signatory authority. Work is as usual for us and we expect the firm will probably be taken over by the next month, said an employee.

Satyam, which still has a vacancy at the top level for CEO and CFO, was facing acute cash crunch to run the firm. Board member Deepak Parekh had said the firm had Rs 1,700 crore ($348 million) in receivables and may not need new funding if the money came in on time.

However Parekh added the board would consider bank loans if necessary. Working capital issues require immediate attention and we will work with the team to tide over this situation, the board had said. It had also initially said it was asking clients to accelerate payments to overcome the cash crunch

Even when Satyam has escaped a near-term cash crunch, it faces a long road to recovery. The new board will have to keep clients from defecting to Satyam's rivals, fend off a growing number of lawsuits over the scandal and try to rebuild investor trust.

Meanwhile, sources say banks dealing with the firm have done their due diligence to figure out the exact number of salary accounts with them. The banks have done random checks on the KYC (know your client) details and there are no fake accounts. There has been no mass transfer of funds, says a source. Officially, Satyam has maintained that it has about 53,000 employees.

However, there were speculations that Satyam had around 43,662 employees.

In an internal mail to its employees, the firm clarified that these figures have been cited from Indian Provident Fund Organisation (PFO) and the figure does not include associates of Satyam Computer Services who are foreign nationals and who do not fall under India's PF regulations (Satyam has over 60 nationalities represented in its global workforce), associates employed by subsidiaries of Satyam in countries such as China and Brazil, and associates of Satyam BPO and other companies acquired by Satyam globally (Bridge Strategy, Citisoft, S&V etc).