Just came back from a class the read that in the Satyam Computer’s balance sheet of 5361 crore , 5040 crore is fictitious money and and accrued interest of 376 crore is non-existent! Some accounting I must say. I hear you say something about having auditors? Well PricewaterhouseCoopers are said to be the auditors of this Satyam Fraud.
Here is what I read at the Economic Times-
Raju’s letter to the company board revealed a fraud of unprecedented proportions. He states that Satyam’s balance sheet as on Sep 30, 2008, carries an inflated (non-existent)cash and bank balances of Rs 5,040 crore (as against Rs 5,361 reflected in the books).
Further, it carries an accrued interest of Rs 376 crore which is non-existent. The books carry an understated liability of Rs 1,230 crore on account of funds arranged by Raju, and an over stated debtors position of Rs 490 crore (as against Rs 2,651 crore in the books).
NO scam recession, isnt it ?
Unfortunately no, Hobo!