Dealing a blow to its revival plans, the beleaguered Satyam Computer has got notice from two large customers for a possible termination of contract.
“Two large customers have given us notice on leaving but others are there and many of them have indicated that they would like to renew and expand contract,” Satyam’s government-appointed director Kiran Karnik said. The former Nasscom chief said there is virtually no money in the company, but it also does not need government money.
“We don’t need government money. I am not in favour of taking government money directly for the simple reason that it sends a very wrong signal in the market. Government money always implies that you are a sinking ship and there is a subsidy being pumped in to keep it artificially alive. That’s not so,” he said.
But he admitted that there is serious cash flow problem as the money has been sucked out. Karnik said as an option the company is ready to pledge physical assets such as real estate to bridge the cash flow.
“The discussions are on..To look at various options of raising finance which could be pledging, mortgaging using as collaterals the real estate that the company owns,” he said, adding that the company has huge fixed assets, land and buildings and most banks would be happy to lend against such physical assets.
“We have not got into the investigation that is being handled by various arms of the government. We don’t even have a firm picture of the balance sheet. The fact is that there is very little money at the moment in the company,” Karnik said, adding that there is a question mark on all aspects of financials and also on the employee number, which is currently being verified.