The government-appointed board of Satyam Computer Services may have managed to shut the lid on the mystery of its purported 53,000 employees, despite the Andhra Pradesh public prosecutor submitting to a local court that at least 13,000 people on Satyam?s rolls were fictitious.
But on Wednesday, labour minister Oscar Fernandes said records with the Employees? Provident Fund Organisation (EPFO) reveal that Satyam Computer Services has only 43,622 employees, against the 53,000 claimed by its top management. More worryingly for Satyam employees, the labour minister informed Parliament that the firm had defaulted on its workers? PF dues for December 2008.
?The defaulted amount is Rs 14,81,55,725 (14.81 crore) for the month of December 2008, out of which Rs 7,73,38,442 (Rs 7.73 crore) in respect of the employees? share and other charges has been remitted on February 6,? Fernandes said.
This payment came a day after the board borrowed Rs 600 crore as a planned fund infusion towards working capital requirements. ?This funding, along with healthy collections, is expected to help the company tide over its financial challenges,? said the board?s February 5 filing with the New York Stock Exchange.
But according to Fernandes? reply in the House, Satyam is yet to deposit its share towards PF for December. This means the company hasn?t paid the Rs 7.08 crore that is its share of workers? PF for that month. Incidentally, Satyam should have ideally paid its workers? PF contributions for January by now.
The Employees? Provident Fund Act of 1952 mandates that employers deposit workers? PF contributions for each month by the 15th day of the following month. Section 14 of the Act empowers EPFO to levy damages on the company for any delays beyond the stipulated date.
Interestingly, while it defaulted on its PF contributions for its Indian employees, Satyam used its internal accruals to pay the salaries of its global workforce for January and US-based associates for the first fortnight of February. In January, the firm had also arranged funds to make health insurance and other mandatory payments to its US workers.
Satyam board members have consistently dismissed doubts about its organisational headcount, claiming the 53,000 included about 45,000 employees in Satyam and another 6,000 in subsidiaries in India and abroad.