On YahooFinance. Satyam Chairman: We're Just a Gigantic Fraud, Too
The following passage...
- Raju also said Satyam's balance sheet as of Sept. 30 had a non-existent cash balance of 50.4 billion rupees; nonexistent accrued interest of 3.76 billion rupees; an understated liability of 12.3 billion rupees; and an overstated debtor position of 4.9 billion rupees compared with 26.51 billion rupees reflected in its books.
"This has resulted in artificial cash and bank balances going up by 5.88 billion rupees in the second quarter alone," said the executive.
Hmmm...
1. had a non-existent cash balance of 50.4 billion rupees;
2. nonexistent accrued interest of 3.76 billion rupees;
3. an understated liability of 12.3 billion rupees;
4. and an overstated debtor position of 4.9 billion rupees compared with 26.51 billion rupees reflected in its books.
It's quite difficult to commit fraud with cash and bank balances. This would be easily found out by the auditors unless it was committed between audits. Strange to see how many people are naked when the tide goes out.
ReplyDeleteMadoff, Satyam, Who's next?