Satyam's viable, doesn't need bailout: Karnik

New Delhi: The new Satyam Computers Services Ltd board has made it clear that it is not interested in a government bailout for the IT company.
Speaking exclusively to Network18, Kiran Karnik, one of the members of the reconstituted Satyam board, said that a government grant, subsidy or bailout is not in the best interest of the company.
"I don't think we need any Government grant or bailout package. If a bank gives money we are comfortable. We will be happy to get money from wherever but this (Satyam Computers Services Ltd) is a very bankable proposition from the balance sheet and account statements,” said Karnik, who is a former Nasscom president.
Karnik admitted that the IT giant is short of cash reserves and there is an immediate need to get some money to ensure the smooth functioning of Satyam.
“Problem just now is that there is no money. There is no c in the company. The immediate need is how you get cash into the company to see through this difficult period? Money must be provided in the form of loan or whatever form, but not as a grant or subsidy. If it comes as a loan (then) the company is capable of repaying it from its own business,” Karnik said.
“I think words like bailout package are not the right term. It is not as if the company is not financially viable. This is a company and has many assets and like every IT company its primary asset are the people, the talent. But there are physical assets too. As far as we have found out, it is still a very viable company, it is a good company. It has strong talent, has very good customers and like all other IT companies, it can be a strongly prosperous company,” claimed Karnik.
Karnik also said that the new three-board, which also includes HDFC Chairman Deepak Parekh and former presiding officer of Securities and Appellate Tribunal C Achutan, has not yet submitted a formal report to the government.
“See we are yet to submit a formal report to the government. We are government nominees but the board is of an independent company. We will give a detailed report top the government and move ahead with their permission,” said the former Nasscom president.
Meanwhile, the Union Government, too, has made up its minds on not giving Satyam any bailout package.
"Let us not create panic in the market... minds of employees. Things are being looked into by the government," said Union Corporate Affairs Minister Prem Chand Gupta.
Sources in the government have told CNN-IBN that the Centre is not planning any bailout package for Satyam Computers but will only act as a facilitator in rescuing the IT giant.
If any private company comes forward to buy Satyam, the government will provide all the help, sources revealed.