A year later, Satyamites on a better wicket

A year has passed since Satyam founder B Ramalinga Raju confessed to overstating accounts and shocked the corporate world and the company’s staffers, who had prided themselves on being employed by the (then) fourth-largest Indian information technology exporter. For almost three months, employees stared at an uncertain future, till Tech Mahindra acquired their company.

A year later, the staffers (associates, as they are termed) say they are on a much better wicket, even as some doubts linger. “The worst is behind,” says Kiran (named changed), who has been at Satyam for nearly six years. Brimming with confidence, he added, “All thanks to the new owners”, with his finger pointing towards the company’s headquarters — Satyam Infocity — which now sports a new dual-colour logo, of Mahindra Satyam (the former in grey and Satyam in red), replacing the earlier blue.

Another associate, Rajasekhar, said memories of the past year continue to linger in their minds, for all the wrong reasons. “The first half of 2009 left us in the lurch, with no clue of what our future will be. And, how can one forget all the trauma that we underwent during that phase?” he asked, acknowledging the new owners (Tech Mahindra) had saved them from standing at the crossroads.

“I have some employee stock options (Esops) which could have brought me a fortune (Rs 8 lakh, to be precise) by now, had the unfortunate event (Raju’s confession) not happened. However, they are now valued at Rs 50,000-60,000 only,” he said, while hoping the stock price would recover the earlier shine.

On January 7, 2009, Satyam’s scrip opened at Rs 179.10, and dived to Rs 39.95 within hours of Raju admitting to the accounting fraud. Satyam’s scrip today ended trade at Rs 109.30 on the BSE— up 3.06 per cent over the previous close of Rs 106.05.

The new owners have assuaged our fears on losing our jobs, said an associate, who was earlier on the Virtual Pool Programme (VPP) — a one-time exercise initiated by the company on June 11, 2009 — for close to 10,000 associates to “optimise resources and rationalise costs”. The VPP allowed the ‘excess’ talent pool in India to be retained, albeit at a reduced pay for a defined period of four to six months. The company, has extended this to March 18 this year.

“Currently, the VPP strength has shrunk to 2,000 associates, with the others being absorbed by Satyam. Some of them as working for Mahindra group companies as well,” she said. After the Tech Mahindra makeover, there is much more of connect between the leadership and associates than there was earlier, she said. “More team events are happening. The clients that were working with us are happy,” she added.

Meanwhile, the wheels of justice continue to turn. A local court in Hyderabad today adjourned the framing of charges against all the accused in the Satyam case to January 20. The Central Bureau of Investigation, the prosecutor, has said it is ready.

However, the defence counsel had asked for verified documents before the CBI petition was heard. Following this, the court handed verified documents to the accused, except that of Ramalinga Raju, on December 23. The latter could not attend, as he is being treated for Hepatitis-C in the Nizam’s Institute of Medical Sciences. The court had then posted the matter for January 6. Raju could not attend the court today, too. Following this, the court directed Raju’s counsel to take the verified documents on Raju’s behalf.

Eight accused, including two Price Waterhouse auditors and B Suryanarayana Raju, brother of Raju, who got anticipatory bail in the case, were produced before the court today. The court extended the judicial custody of the accused till January 20.

Meanwhile, Raju has been running high temperature for some time. Doctors said the fever is not subsiding. The treatment for Hepatitis-C is prolonged and usually associated with side effects, they said.