Hyderabad, Jan 21: Some relief for Satyam employees. The salary for the month of Jan will be paid to the employees. “Our own collections, receivables from customers, including out standings should take care of the Jan salary," said a senior management official in the company.
The total amount required to pay salaries and the vendors in India requires $100 million (Rs 500cr), he said. Satyam needed to pay about Rs 400 crore to vendors. “Usually, for the work we do, we are paid after 30 days, by our clients, and there are out standings as well." While paying the salary will not be a problem, paying vendors is likely to take one or two months.
In the US, salaries have to be paid every two weeks, he mentioned. Therefore, on Jan 5, this year, $20 million (Rs 98cr) was paid towards salary of the US employees of Satyam, then on Jan 18, another $20 million was paid to the US workers on Jan 31. Salary payment is due to the US employees, who number 5,000, the official mentioned.
Another 5,000 employees in Europe, Middle East and South Asia, have also to be paid. The company is confident of receiving payment from their customers such as GE, Cisco, Citibank and Applied Materials to name a few who continue to work with Satyam and do not backtrack on payment.
“Although all the receivables will be enough to pay our employees, it will not be enough to pay all our vendors for which will require a loan." Hari Thalapalli, head, marketing and communications, told media, “We never asked for a bailout, only a bridge or soft loan."
OneIndia News (With inputs from Agencies)
The total amount required to pay salaries and the vendors in India requires $100 million (Rs 500cr), he said. Satyam needed to pay about Rs 400 crore to vendors. “Usually, for the work we do, we are paid after 30 days, by our clients, and there are out standings as well." While paying the salary will not be a problem, paying vendors is likely to take one or two months.
In the US, salaries have to be paid every two weeks, he mentioned. Therefore, on Jan 5, this year, $20 million (Rs 98cr) was paid towards salary of the US employees of Satyam, then on Jan 18, another $20 million was paid to the US workers on Jan 31. Salary payment is due to the US employees, who number 5,000, the official mentioned.
Another 5,000 employees in Europe, Middle East and South Asia, have also to be paid. The company is confident of receiving payment from their customers such as GE, Cisco, Citibank and Applied Materials to name a few who continue to work with Satyam and do not backtrack on payment.
“Although all the receivables will be enough to pay our employees, it will not be enough to pay all our vendors for which will require a loan." Hari Thalapalli, head, marketing and communications, told media, “We never asked for a bailout, only a bridge or soft loan."
OneIndia News (With inputs from Agencies)
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