Satyam Computer fraud now estimated at $1.75 billion
September 29th, 2010 - 8:22 pm ICT by IANS
Hyderabad, Sep 29 (IANS) Financial irregularities perpetrated by the original promoters of Satyam Computer Services led by B. Ramalinga Raju resulted in a Rs.78.55 billion ($1.75 billion) impact on the company’s accounts, the stock exchanges were informed Wednesday.
Presenting the consolidated financial results of the company, now renamed Mahindra Satyam, the new management said an impact of Rs.67.95 billion ($1.5 billion) was on account of what it said was based on specific financial irregularities identified during forensic investigations.
“The fictitious revenue was recorded by creation of false invoices by circumventing the normal revenue recognition cycle,” said the filing signed by Chairman Vineet Nayyar on behalf of the new board of the company.
The irregularities covered various heads including revenue, interest income, exchange fluctuations, salary costs, other expenses, bank borrowings and interest, as also tax payments, as per the report presented to the stock exchanges.
Once the poster boy of Indian information technology industry, Raju had stunned the corporate world in January last year when he admitted to financial irregularities worth Rs.70 billion ($1.5 billion) over the past several years in the largest corporate fraud in the country’s history.
- Satyam Computer skids a day after post-fraud results - Sep 30, 2010
- Satyam fraudulent entries by Raju at Rs.6,800 crore - Sep 29, 2010
- Satyam suffers net loss of Rs.8,177 crore in fiscal 2009 (Lead) - Sep 29, 2010
- IT department freezes accounts of Mahindra Satyam - Mar 22, 2011
- Mahindra Satyam merger with Tech Mahindra likely next year - May 23, 2011
- Mahindra Satyam's merger with Tech Mahindra next year - Nov 10, 2011
- Mahindra Satyam reports loss due to lawsuit settlements (Lead) - May 23, 2011
- Mahindra Satyam reports net loss due to lawsuit settlements - May 23, 2011
- IT department freezes accounts of Mahindra Satyam (Lead) - Mar 22, 2011
- $10m US settlement in firm's interest, says Mahindra Satyam - Apr 06, 2011
- Two-fold jump in Mahindra Satyam's net profit - Aug 10, 2011
- Mahindra Satyam posts flat Q1, Q2 revenues (Lead) - Nov 16, 2010
- Mahindra Satyam posts flat revenues in first two quarters - Nov 15, 2010
- Mahindra Satyam-Tech Mahindra merger put on hold - Feb 14, 2011
- Mahindra Satyam, Tech Mahindra merger likely in 8-9 months - Apr 24, 2012
Tags: b ramalinga raju, borrowings, computer fraud, corporate fraud, financial irregularities, fluctuations, forensic investigations, indian information technology, information technology industry, interest income, invoices, nayyar, new management, poster boy, promoters, revenue recognition, salary costs, satyam computer services, stock exchanges, tax payments