Ahmedabad-based Sai InfoSystems (SIS) is allegedly on the verge of bankruptcy, according to the buzz among the city's channel partners.
The whereabouts of Pankaj Kakkad, the Founding Managing Director of one of Gujarat's largest IT companies are not known. CRN's attempts to contact Kakkad and Kirit Joshi, Senior Vice President, SIS, failed as their mobile phone services are disconnected. The company's landline numbers too were not reachable.
A news report in DNA said that SIS has a debt in excess of Rs 1,000 crore, and that Kakkad had mortgage his bungalow in Ahmedabad. The report alleged that the company has not paid salaries to its 1,000 plus employees for the past nine months.
Over the last 18 months, speculations were rife that the company's financials were under significant stress. Partners who knew Kakkad and SIS closely said that the company in a bid to bag large projects was under-quoting which resulted in large losses.
It may be recalled that three years back, the other Founding Director of SIS, Vijay Mandora had parted ways by spinning off SIS' retail and distribution business as a separate company called ECS Biztech.
SIS' turnover for FY2012-13 was in excess of Rs 1,000 crore and the speculation is that considering the size of the company, a probable bankruptcy would create a major domino effect in the industry as SIS is believed to have large outstanding with distributors and vendors.
As per another news report in Times of India, the Maharashtra government is contemplating filing an FIR against SIS for submitting a false financial instrument for the Mumbai city surveillance project, the company had won. According to the report, SIS had submitted a cheque of over Rs 2 crore as bank guarantee for the project. But the cheque bounced, prompting the government to contemplate action under section 138 of the Negotiable Instruments Act.
SIS had won the Mumbai city surveillance project which included deploying 6,000 IP cameras for a bid of Rs 700 crore. The second closest bid was of Rs 1,000 crore by AGC Networks. Quoting sources in the Maharashtra home ministry, the TOI report said that the company had under-quoted for the project, and the government is now renegotiating the project with the second bidder, AGC.
Reportedly, SIS had also won a contract from the Department of Post for digitization of several processes. For this, SIS had bid Rs 1,500 crore, while the second bidder quoted Rs 2,200 crore.
The whereabouts of Pankaj Kakkad, the Founding Managing Director of one of Gujarat's largest IT companies are not known. CRN's attempts to contact Kakkad and Kirit Joshi, Senior Vice President, SIS, failed as their mobile phone services are disconnected. The company's landline numbers too were not reachable.
A news report in DNA said that SIS has a debt in excess of Rs 1,000 crore, and that Kakkad had mortgage his bungalow in Ahmedabad. The report alleged that the company has not paid salaries to its 1,000 plus employees for the past nine months.
Over the last 18 months, speculations were rife that the company's financials were under significant stress. Partners who knew Kakkad and SIS closely said that the company in a bid to bag large projects was under-quoting which resulted in large losses.
It may be recalled that three years back, the other Founding Director of SIS, Vijay Mandora had parted ways by spinning off SIS' retail and distribution business as a separate company called ECS Biztech.
SIS' turnover for FY2012-13 was in excess of Rs 1,000 crore and the speculation is that considering the size of the company, a probable bankruptcy would create a major domino effect in the industry as SIS is believed to have large outstanding with distributors and vendors.
As per another news report in Times of India, the Maharashtra government is contemplating filing an FIR against SIS for submitting a false financial instrument for the Mumbai city surveillance project, the company had won. According to the report, SIS had submitted a cheque of over Rs 2 crore as bank guarantee for the project. But the cheque bounced, prompting the government to contemplate action under section 138 of the Negotiable Instruments Act.
SIS had won the Mumbai city surveillance project which included deploying 6,000 IP cameras for a bid of Rs 700 crore. The second closest bid was of Rs 1,000 crore by AGC Networks. Quoting sources in the Maharashtra home ministry, the TOI report said that the company had under-quoted for the project, and the government is now renegotiating the project with the second bidder, AGC.
Reportedly, SIS had also won a contract from the Department of Post for digitization of several processes. For this, SIS had bid Rs 1,500 crore, while the second bidder quoted Rs 2,200 crore.
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