Satyam Computers

February 16th, 2009

Chairman of Satyam Computers, Ramalinga Raju resigned on the 7th of January, 2009 after notifying the board that he had falsified the company’s accounts. The company’s Balance Sheet as of September 30, 2008, carried inflated figures for cash and bank balances of INR 50.4B as against INR 53.6B reflected in books, it carried accrued interest of INR 376M which actually did not exist, an understated liability of INR 1.23B on account of funds arranged by the Chairman and overstated  debtors position of INR 490M as against INR 2.65B in the books. The company’s auditors were Price Waterhouse, the Indian division of PWC.

Entry Filed under: Accounting Frauds