India's Satyam Computer is dealing with a crisis of unimaginable proportions, Ram Mynampati its interim chief executive said Thursday, but the software giant confirms it is focusing on sustaining its operations.
Yesterday, the company's CEO Ramalinga Raju resigned confessing that Satyam's profits had been falsely inflated for several years. About $1 billion, or 94 percent of the cash and bank balances on the company's books did not exist.
Our only aim at this time is to ensure that the business continues, Mynampati said adding that Satyam had contacted its top 100 customers and had received expressions of support, Reuters reported today. Satyam is India's fourth largest software exporter and its customers include General Electric, Nestle, Sony, Cisco and the World Bank.
Satyam may have to restate earnings, Mynampati said and he couldn't confirm if the company had enough cash for this month saying the liquidity situation was not very encouraging now, Bloomberg noted.
Mynampati said the company was assessing Raju's revelations about the fake profits and assets.
Separately, Prem Chand Gupta, a Corporate Affairs minister said The government will take all necessary action to ensure these types of scandals do not take place again. Whatever steps could be taken will be taken, according to Reuters.