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 EquitiesHi, 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. SrinivasNo 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 EquitiesBut 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. SrinivasNo 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