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  • The Balance Sheet As On September 30, 2008 Showed

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    The balance sheet as of September 30, 2008 for Satyam showed inflated cash balances of Rs. 5,040 crore instead of Rs. 5312 crore, accrued interest of Rs. 376 crore that did not exist, understated liabilities of Rs. 1,230 crore, and overstated debtors of Rs. 490 crore instead of Rs. 2651 crore. For the second quarter, Satyam falsely reported revenues of Rs. 2,700 crore and operating margins of Rs. 649 crore when actual revenues were Rs. 2,112 crore and actual operating margins were Rs. 61 crore, inflating cash balances by Rs. 588 crores that quarter alone.

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    The balance sheet as of September 30, 2008 for Satyam showed inflated cash balances of Rs. 5,040 crore instead of Rs. 5312 crore, accrued interest of Rs. 376 crore that did not exist, understated liabilities of Rs. 1,230 crore, and overstated debtors of Rs. 490 crore instead of Rs. 2651 crore. For the second quarter, Satyam falsely reported revenues of Rs. 2,700 crore and operating margins of Rs. 649 crore when actual revenues were Rs. 2,112 crore and actual operating margins were Rs. 61 crore, inflating cash balances by Rs. 588 crores that quarter alone.

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    The Balance Sheet As On September 30, 2008 Showed

    Uploaded by

    ravi_volley
    The balance sheet as of September 30, 2008 for Satyam showed inflated cash balances of Rs. 5,040 crore instead of Rs. 5312 crore, accrued interest of Rs. 376 crore that did not exist, understated liabilities of Rs. 1,230 crore, and overstated debtors of Rs. 490 crore instead of Rs. 2651 crore. For the second quarter, Satyam falsely reported revenues of Rs. 2,700 crore and operating margins of Rs. 649 crore when actual revenues were Rs. 2,112 crore and actual operating margins were Rs. 61 crore, inflating cash balances by Rs. 588 crores that quarter alone.

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    Understanding the Scam...

    The Balance Sheet as on September 30, 2008 showed :


    r Inflated (non-existent) cash and bank balances of Rs.5,040 crore (as against Rs. 5312 crore reflected in the books) r An accrued interest of Rs. 376 crore which is non-existent. r An understated liability of Rs.1,230 crore on account of funds arranged by B.R. Raju r An overstated debtors position of Rs. 490 crore (as against Rs. 2651 crore reflected in the books) r For the second quarter. Satyam reported a revenue of Rs. 2,700 crore and an operating margin of Rs. 649 crore (24% of revenues) as against the actual revenues of Rs. 2,112 crore and an actual operating margin of Rs. 61 crore (3% of revenues). This resulted in artificial cash & bank balances going up by Rs. 588 crores in Q2 alone.

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