Satyam says client confidence is improving

Posted By: Staff
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Mumbai, Feb 12 (ANI): Kiran Karnik, Chairman of the Satyam board, has said that Satyam Computer Services Limited is reassuring wary clients about its long-term prospects.

"There is now greater comfort. People know that the company now is financially stable. Now many of them are asking me questions related to long-term future. Which again is obviously something we are worried about. I share with them about ten days. We will be able to tell them what is the outlook for the future and then they'll make their decision," said Kiran Karnik.

He told reporters Satyam was in a position to pay employee salaries for February mainly from receivables, and said arranged bank funding would be coming in a few days.

Karnik said Satyam had picked up some additional work, which showed it was back on track, but noted client concerns remained.

Last week, Satyam said it had secured six billion rupees in bank loans to meet its short-term operational needs.

Satyam was plunged into a crisis last month after its founder Ramalinga Raju quit after disclosing profits had been overstated for years and one billion dollars of cash and bank balances did not exist.

On February 3, a Satyam spokeswoman said that the company had been awarded 15 new contracts in January.

In a staff newsletter dated February 9, Satyam said it had got assurances from "significant majority" of customers that they would continue their ties.

Satyam also said in the newsletter that A.S. Murty, its new chief executive, would meet with key customers in the next two to three weeks.

Satyam's government-appointed board meets in Mumbai on Thursday, and Karnik has said a long-term action plan, including a possible sale, would be ready in the next week or so. (ANI)

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