Latest Expert Exchange Queries
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Service Tax | Sales Tax | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Indirect Tax | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing
 
 
 
 
Popular Search: VAT Audit :: TAX RATES - GOODS TAXABLE @ 4% :: ACCOUNTING STANDARD :: Central Excise rule to resale the machines to a new company :: TDS :: empanelment :: form 3cd :: due date for vat payment :: list of goods taxed at 4% :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: VAT RATES :: ARTICLES ON INPUT TAX CREDIT IN VAT :: articles on VAT and GST in India
 
 
News Headlines »
 Is government tapping your phone?
 Income tax department to use analytics to look for discrepancies in bank accounts
 GST Council fails to break deadlock over indirect tax regime, next meet on Dec 11 and 12 to hammer out differences
 Invoking Writ Jurisdiction For Income Tax Matters
 How to file income-tax returns online
 How Income Tax Returns Are Scrutinised
 All About New Income Disclosure Scheme to make Demonetisation successful
 Your deposit may draw income tax notice
 Accepting payment under IDS 2016
 New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits
 Pay 50% tax on unaccounted deposits, or 85% if caught, says Modi government

Satyam fiasco: Lost Rs 950 crore
April, 10th 2009

If one were to put aside the magnitude of loss suffered by the investors in Satyam, the money with which the Raju brothers played in Satyam scam was to the tune of Rs 6,000 crore. Of this, the amount they cornered for themseleves and their family was Rs 2,580 crore. The whereabouts of this money and the properties they bought with it and the key persons that helped them in perpetrating this scam is yet to be known. This is the crux of the charge sheet filed by the CBI two days ago in the local CBI court in which nine persons including B Ramalinga Raju, B Rama Raju and B Suryanarayana Raju are the accused.

Interestingly, Life Insurance Corporation (LIC) has emerged as the single largest institutional investor which lost as much as Rs 950 crore. Others like Allahabad Bank, Union Bank of India, Punjab National Bank, Oriental Bank of Commerce, Corporation Bank etc have together lost only Rs 10 crore put together.

The core of the chargesheet, running into 75 pages, mentioned what the CBI understood so far about the scam. Some highlights: When the actual cash available with the company was only Rs 139 crore, the accused had shown an inflated figure of Rs 5,160 crore and also claimed an interest of Rs 375 crore on that while the actual interest accrued was only Rs 7 lakh. On this, the accused had claimed that they had paid a tax of Rs 30 crore whereas the tax that was deducted on this income was only Rs 1.5 lakh.

Amazingly the number of fake invoices they generated was 7,561 and Rs 5,117 crore in value. Sales of the company was also inflated by 18% from Rs 23,434 crore to Rs 27,691 crore and the figure under the debtors account was shown as Rs 481 crore.

The chargesheet said that the Raju brothers had first sold their shares for Rs 75 crore, which they gave as gifts to their wives and family members. Later, in 2002, they sold the Satyam shares held by their family members, earning Rs 707 crore and purchased several properties with that money. They cornered another Rs 115 crore as dividend.

Between 2006 and 2008, Raju brothers had mortgaged their shares and got Rs 1,744 crore as loans from several non banking financial institutions. The shares held by the Raju family in Satyam fell from 18 per cent in 1992 to 1.87 per cent by 2008 but was not noticed by anybody. The 327 frontal companies floated by Raju brothers as agro based companies did nothing related to agri industries but were busy rotating the money they swindled for purchasing real estate. Even the bench strength of the company is only 62 per cent and they inflated this to 75 per cent and though the growth of the company is only three per cent, the accused have shown 22 per cent as operating margin. They also suppressed a liability of Rs 1,230 crore they have to pay to various institutions.

The CBI also found fault with the auditors and held them as chief accomplices responsible for the largescale fraud. For nearly seven to eight years, these auditors were certifying all the fake FDRs and ignored their prime responsibility of verifying the realities, it said.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2016 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Mission

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions