Is SSS Systems shutting shop?

Early this week, the market was abuzz with rumors that SSS
Systems Pvt Ltd had closed down its shop. The rumors triggered panic in the
market since I Sadiq Batcha, CEO, SSS Systems owes money to few leading
resellers here. The entire issue started when an IT news portal-MarketFlash (www.marketflash.in),
reported that SSS Systems had downed its shutters. “We got this news only
through the portal and I was shocked on reading it. I could not believe Batcha
would have done it, because I know him as a friend and a businessman. But,
later, I got the news that Batcha has only shifted his shop to a different
premises and is very much in business,” said J Ramesh, Business Manager, Ralco
International. Batcha owes over Rs 1 lakh in business to Ralco.

SSS Systems was a leading reseller once upon a time and
created a wave in the market, when it opened the country's largest IT retail
showroom with over 4,000 sq ft of space at Royapettah, Chennai, in 2001. Things
were going good for the company before it got into a financial crisis in 2004.
“It was a bad phase for us in business. We lost huge amounts of money and the
cash flow got stuck. We had more than Rs 45 lakh as outstanding in business,
which is down to Rs 30 lakh today. Recently, we have only shifted our shop from
Royapettah to 1,000 Lights to save some money on rent and overheads. We have
already put up the cloth banner in the old place, informing the customers and
suppliers about the shifting,” clarified Batcha. He also said, the rumors were
spread by people who are working against him in business.

However, channel partners are worried about the indefinite
delay from his side and worried whether they would get the money back. “We
know him as a good businessman but, he should also try to understand our
position in business. Batcha should not keep buying more time and settle our
dues at the earliest,” said B Krishna Kumar, Director, Sri Lakshmi System
Products, who has to get about Rs 2.5 lakh from him.

“Batcha is a good person and I believe he would not have
any intentions of cheating suppliers. Actually, he owes me more than Rs 6 lakh
in business and I have told him to settle it whenever he makes a turnaround. All
we can do is just wait and pray for his early revival in business,” said G
Sundaram, Director of Coimbatore-based Bloom Electronics Pvt Ltd.

Like Sundaram of Bloom Electronics and Krishna Kumar of Sri
Lakshmi System Products, many resellers are waiting with bated breath for the
good day. According to market reports, Devraj Computers (P) Ltd, Microtek
International Limited, Bohra Technology Pvt Ltd and Madras Computech are also
some of the suppliers waiting for SSS Systems to repay the money.

S Gopikrishna Chennai, March 3