7.1.2009
In a letter to the board, CEO Ramamlinga Raju has given balance sheet details. In a shocking revelation, he has said that the balance sheet details over the years was fictitious.
The balance sheet has inflated cash balances of Rs 5,040 crore (Rs 50.40 billion) and accrued interest of Rs 376 crore (Rs 3.76 billion) is non-existent. Rs 1,230 crore (Rs 12.30 billion) was arranged to Satyam and is not reflected in the books.
He admitted that second quarter numbers were inflated to Rs 2,700 crore (Rs 27 billion) when the actual figure was Rs 2112 crore (Rs 21.12 billion). He also said that other board member were unaware of the real numbers.
The Satyam balance sheet, as on September 30, 2008, had an accrued interest of Rs 376 crore (Rs 3.76 billion) which is non-existent. It also had an understated liability of Rs 1,230 crore (Rs 12.30 billion) on account of funds arranged by Ramalinga Raju. The balance sheet showed an overstated debtors position of Rs 490 crore -- Rs 4.90 billion -- (as against Rs 2,651 crore -- Rs 26.51 billion -- reflected in books).
The gap in balance sheet has arisen purely on account of inflated profits over a period of last several years.
Source:
http://www.rediff.com/money/2009/jan/07ramalinga-raju-resigns.htm
Showing posts with label Accounting issues. Show all posts
Showing posts with label Accounting issues. Show all posts
Wednesday, January 7, 2009
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