According to sources in the Serious Fraud Investigation Office (SFIO), the agency probing into the Satyam scam, the IT company's offshore exports were inflated by over Rs 4500 crore over a period of seven years. Further, foreign currency of Rs 1,940 crore from exports over six years was not remitted to India. Sources say the company inflated books by Rs 27,167 crore between financial year 2001 and September 2008. The inflation was done by falsifying cash, bank balances and fictitious fixed deposits (FDs). Adding to this, inflation was done by understating liabilities and overstating debtors. CNBC-TV18's Pranshu Sikka reports.
Here is a verbatim transcript of Pranshu Sikka's comments on CNBC-TV18. Also, watch the accompanying video.
We have picked up from sources that the SFIO has found that the exports have been inflated to the tune of over Rs 4,500 crore over the last seven years by Satyam. If you look at the exports vis--vis the Softex data that is available, the figure would stand at around Rs 4,550 crore. But if you look at it vis--vis the export advises then the figure would be more by another Rs 400 crore and would stand at around Rs 4,900 crore.
Besides this, SFIO sources say that they have also come to a conclusion that a part of currency, which has been generated from these exports, has not been remitted to India. They say that the amount to the tune of Rs 1,940 crore according to them is still unremitted.
Also, they say that the books of Satyam have been inflated to the tune of Rs 27,167 crore over the last eight years between FY01 to September 2008. This inflation has happened mainly on six accounts. One is by falsifying cash and bank balances, by showing fictitious FDs, by showing fictitious interest being accrued on those FDs, by showing understated liabilities and also by showing overstating debtors.
Sources say that SFIO has also come to the conclusion like we had stated earlier that all this has been made possible because of a very weak invoice management system as well as weak accounting practices, which the company was following.