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Sambhar Mafia - Cooked To Kill!

Thursday, January 08, 2009

Satyam CFO's Answer On Cash Balance

This is how Satyam's CFO Srinivas Vadlamani answered when an analyst asked about the unusually high cash balance. The transcript of the Oct 2008 (Q2) analyst call is difficult to download from Satyam website. I have managed to pick up the transcript from another site. The CFO's creativity has been put to test here. The answering tone from the last paragraph proves that Srinivas Vadlamani made up the reply.

Kawaljeet Saluja – Kotak Equities

Hi, my question are for, Srinivas. Srinivas any specific reasons why you have $500 million parked in current accounts which does not yield any interest.

V. Srinivas

No that is basically, as of the quarter ending, but subsequent to that the amount goes to the deposit accounts; majority of its in deposits now.

Kawaljeet Saluja – Kotak Equities

But Srinivas if I look at deposit account for the last 4 quarters that number has remained absolutely flat and most of the incremental cash flows have been parked in current accounts and this is not something is this quarter trend. Would you highlight the reasons for it?

V. Srinivas

No basically what will happen is this amount will be basically in different countries and then we will be bringing them to India based on the needs. Basically some of them are in overnight deposits and all that. So now, we have kind of placed them into normal term deposits. So next quarter onwards, we will see that as part of the deposits.

Related Read: ET article titled "How one analyst almost nailed Satyam" dated 10th Jan

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1 Comments:

  • The CBI alleged that the accused had forged bank documents showing the existence of the cash balance in five banks including ICICI bank, HSBC, Citibank and BNP Paribas, but the banks clarified that they do not have any cash balance in the name of the firm. but now tech-mohindra has try to solved every existing project. thank you for shearing your post.

    By Anonymous Rumela, at 6:48 PM  

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