The financial problems faced by the fraud-hit Satyam seem to be getting deeper and deeper. While the new auditors are struggling to restate the financials of the company to raise fresh loans, the company's board is having trouble dealing with the tight liquidity.
While Satyam has already paid its overseas employees their salaries for the current month, government-appointed director Kiran Karnik says Satyam's immediate requirement could be close to Rs700-800 crore, including payment of salaries to employees and outstanding debt.
He added that overall estimate for January would be somewhat higher than the next few months as the current month's commitments entailed payment of some outstanding debt.
Earlier, Satyam's new board member Deepak Parekh had disclosed that the company's receivables stand at Rs1,700 crore. He also said that Satyam may borrow against assets if needed.
However, media reports quote CID officials as saying that Raju had told them that he had taken loans by pledging Satyam's assets as well as receivables expected between January and March 2009.
It seems close to Rs1,200 crore was raised in loans by Raju by pledging Satyam's properties and receivables. Satyam Computer Services has been taking loans against receivables and physical assets for over 10 years from banks such as ICICI, IDBI and EXIM.
Investigators have also sent Satyam's accounts including balance statements and letters of confirmation of account balances to Satyam's bankers.
HSBC, Citigroup, HDFC Bank and ICICI Bank have reviewed the documents and have found them to be forgeries though no official comment has been given yet.
Satyam promoters and top officials may have also indulged in insider trading, according to preliminary investigation into the Rs7,800-crore fraud in the Hyderabad-based IT company.
Satyam promoters used to own as much as 25.60 per cent stake in the firm till March 2001 before reducing their stake in phases.
By March 2002, the stake was reduced to 22.26 per cent and further to 20.74 per cent in March 2003. In March 2004, the promoters held 17.35 per cent stake, which went down to 15.67 per cent in March 2005 and further to 14.02 per cent in March 2006.
The biggest reduction came in March 2007 when the stake went down to 8.79 per cent.