It was this letter written by Ramalinga Raju written to the board of directors of Satyam Computer Services Limited that informed the markets that he had overstated cash and bank balances of Satyam by Rs 5,040 crore as on 30 September 2008 and uncovered what is perhaps India's biggest corporate fraud till date.
Raju was today convicted with nine others on charges of criminal conspiracy and financial fraud.
Raju in the latter said that he had shown non-existent interest earnings of Rs 376 crore in his books, and invented debtors (those who owed Satyam money) worth Rs 490 crore – for a total misstatement of Rs 5,906 crore. He also claimed that the company owed him (and his promoter group) Rs 1,230 crore. In short, the net fraud was worth Rs 4,676 crore.
Here's the full text of the letter that Raju wrote on 7 January, 2009:
Published Date: Apr 09, 2015 01:35 pm | Updated Date: Apr 10, 2015 09:31 am