Latest Expert Exchange Queries

GST Demo Service software link:
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft
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) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Popular Search: ACCOUNTING STANDARD :: list of goods taxed at 4% :: empanelment :: VAT RATES :: Central Excise rule to resale the machines to a new company :: ACCOUNTING STANDARDS :: ARTICLES ON INPUT TAX CREDIT IN VAT :: TAX RATES - GOODS TAXABLE @ 4% :: cpt :: articles on VAT and GST in India :: TDS :: due date for vat payment :: form 3cd :: VAT Audit :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes
News Headlines »
 How to save income tax? Here are 6 investments with tax free income
 10 Top salary deductions that can save tax for you
 What are the tax saving options beyond Section 80C?
 The penalties for not paying tax on time
 How to make your salary tax efficient
 I-T Department may go into overdrive this quarter
 Ways to reduce the TDS deduction from your salary
 4 Tips for choosing who prepares your 2017 Tax Returns
 Processing of income-tax returns under section 143(1) of the Income-tax Act which were filed in Forms ITR-1 to 6 & applicability of section 143(1)(a)(vi)
 Price Waterhouse gets 2-year ban in Satyam case
 How to save income tax under section 80C

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 2018 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