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Satyam can generate funds by mortgaging assets: Parekh

January 16, 2009

HDFC chairman and Satyam Computer board member Deepak Parekh on Thursday said the crisis-ridden IT company can raise funds by mortgaging its assets, dispensing with the need to look for government aid.

"Financial assistance can be generated by hypothecating some of the assets of the company", he said when asked if the government was planning to salvage the company.

Corporate Affairs Minister Prem Chand Gupta said that if Satyam needs funds, its board will raise it from banks.

The company has large receivables and assets can be hypothecated after getting the report from the accountants who may take 8 to 12 weeks, he told reporters after an hour-long meeting with the Planning Commission Deputy Chairman Montek Singh Ahluwalia.

"Unless the accountants who are re-stating the accounts confirm the receivables, we do not know the veracity of correctness of the receivables," Parekh said.

He, however, added that if the company gets receivables on time, the financial assistance may not be needed.

The collections are coming every day, he said, adding that "as Satyam is a running company. It is an ongoing concern. Lot of collections are planned."

The newly-appointed board of Satyam has appointed international auditing firms KPMG and Deloitte to re-state the company's accounts after founder Ramalinga Raju admitted to fudging them.

"We are trying our best to salvage the company", Parekh said, adding that Satyam has paid the salary to its staff in the US today.