Thank you, Mr. Foresi. The next question is from the line of Mr. Trip Chowdhary from Global Equities Research. Please go ahead.
Trip Chowdhary – Global Equities Research
Thank you. I have two quick questions, first is regarding strategic decisions that Satyam may need to make in the light of probably a very elongated slowdown. If you have two options, #1 is reduce the headcount and #2 roll back the salaries of employees to the 2003 levels what do you think makes good sense both from a short-term perspective and from a long-term perspective.
Ramalinga Raju
Yeah we have given guidance for the year, this is Raju here. And what is the visibility is fairly good and we do not expect any events that may change the outlook that we have in a way painted. We are not giving guidance for the next year nor are we at this time claiming that we fully understand and appreciate what the economic scenario maybe in the next year or in the coming years. It goes without saying Satyam has in the past shown its resilience to adjust its actions to better suit the market conditions. At this time what you have stated is therefore somewhat in the speculative zone. And I am not sure, it is appropriate for me to comment in a definitive …
Trip Chowdhary – Global Equities Research
Second question I had is regarding the industry structure and some acquisition frenzy we have heard over the last three months and in hind sight it looks like the frenzy was totally misplaced. I am talking in reference to Axon where Infosys put a bid, then HCL came in and probably there were rumors that you also put a bid. Considering the fact that Europe is much weaker than US, considering the fact that at least most their positions when the people move so does the business so there is hardly any strategic asset that remains in an IT services purchasing acquisitions and considering the fact that acquired company’s stocks are already down 50% and during the premium to an acquirer is totally I would say out of base. What is your current thinking in terms of industry structure, new acquisitions and would you rather wait for two years when the companies you have an eyes on are valued literary at a quarter of the price at which they are trading today, any thoughts. And again all the best and continue to execute well.
Ramalinga Raju
Most of the comments you have made clearly paint a possibly a very bleak picture of the future. I am not sure if we would agree with that. And now as regards value behind acquisitions and strategies around acquisitions all I would like to say is that we believed and we continue to believe that inorganic growth would be as much of an important factor in our growth as organic growth. It goes without saying that not every acquisition will necessarily enhance value for the shareholders. Therefore one has to be very careful in choosing acquisitions and there are many factors that determine success or otherwise of an acquisition. And then therefore it goes without saying difficult to give a generic answer, expecting saying that acquisitions are important for our strategy and number two selecting what to acquire and what not to acquire is going to be also equally important.
Trip Chowdhary – Global Equities Research
Thank you. All the best.
Ramalinga Raju
Thank you.
Operator
Thank you, Mr. Chowdhary. The next question is from the line of Mr. Kawaljeet Saluja from Kotak Equities. Please go ahead.
Kawaljeet Saluja – Kotak Equities
Hi, my question are for, Srinivas. Srinivas any specific reasons why you have $500 million parked in current accounts which does not yield any interest.
V. Srinivas
No that is basically, as of the quarter ending, but subsequent to that the amount goes to the deposit accounts; majority of its in deposits now.
Kawaljeet Saluja – Kotak Equities |
