MUMBAI, April 11 (Reuters) – Fraud-hit Satyam Computer Services Ltd (SATY.BO) has used 3 billion rupees ($60 million) of the 6.85 billion bank funds that it has arranged, The Economic Times said on Saturday citing documents from a highly placed source in the company.
The firm, which could announce a buyer for a 51 percent stake on Monday, had a total collection of business receivables of about 20.6 billion rupees in the past three months, the paper said.
Three months ago, Satyam’s founder and chairman shocked investors by saying profits had been overstated for years, and putting in doubt the survival of the company once ranked as India’s fourth largest outsourcing firm.
It also repaid loans of 1.56 billion rupees and met foreign exchange losses of 1.46 billion in the period, the paper said, adding it has a closing cash balance of 2.1 billion rupees for the period-ended March 2009.
The banks that provided support to Satyam during the period were Citibank, IDBI Bank and Bank of Baroda, it added.
The highly-placed source also told the paper Tech Mahindra (TEML.BO), Larsen and Toubro (LART.BO), Cognizant (CTSH.O) and Wilbur Ross were the four final bidders for Satyam.
The company’s government-appointed board meets on Monday to receive bids from suitors but bidders face an uphill task to put a price tag on the Indian company due to uncertainty about its finances and liabilities. For story see [ID:nBOM203266]
(1$ = 50 rupees)
For a FACTBOX on Satyam, see [[ID:nBOM417149]
For a TIMELINE on key events at Satyam, see [ID:nBOM435389]
For other stories on Satyam, see [ID:nBOM394323]
(Reporting by Swati Pandey; Editing by Tomasz Janowski)