BUSINESS

CBI corroborates Raju's version of Satyam fraud

Source:PTI
April 17, 2009 16:49 IST
Satyam founder Ramalinga Raju was honest at least about his dishonest dealings, with CBI finding that balance sheets were inflated by Rs 5,020 crore (Rs 50.20 billion) – almost the same amount disclosed by the former IT posterboy.

CBI, in its chargesheet, said it found that books were first inflated in fiscal 2001-02. As against the projected cash and bank balances of Rs 5,160 crore (Rs 51.60 billion) by the end of second quarter of 2008 in the balance sheets of the company, the actual cash and bank balance was only Rs 139 crore (Rs 1.39 billion), thereby reflecting a gap of Rs 5,020 crore.

Satyam had been maintaining deposit and current accounts with as many as 15 scheduled banks over the years and CBI, with the help of chartered accountants, had prepared a comparative picture of cash balances in current account, money parked in fixed deposits as shown in the balance sheet and the actual cash available in the current account and the money available in the FDRs.

"Thus, it is revealed that huge amounts of cash and bank balances were fraudulently and dishonestly reflected in the balance sheets of SCSL (Satyam) by the accused, where only very less amounts of cash and bank balances were actually available," the CBI said in the chargesheet filed earlier this month against Raju and eight others.

Raju, in a letter to Satyam's board on January 7, had mentioned that the balance sheet as of September 2008 carried non-existent cash and bank balances to the tune of Rs 5,040 crore.

Source: PTI
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