HYDERABAD: Mahindra Satyam, the new owner of fraud-hit Satyam Computers, will have to manage an additional burden of Rs 1,220 crore over and above Satyam's rise, fall and its existing claims and pending law suits after India’s Central Bureau of Investigation (CBI) said on Wednesday B Ramalinga Raju forged board resolutions to borrow money from banks to salvage his company.
However, there were no entries in the software firm’s books to this effect. This money is in addition to the unaccounted Rs 1,230 crore that Raju claimed to have been infused into Satyam by promoters of 37 front companies floated by Raju. Even in this case, there were no entries books.
Vineet Nayyar, executive vice-chairman of Mahindra Satyam, said that liabilities are still limited. “I think we need to distinguish two things. CBI is talking to the extent of fraud, accounting fraud committed what I am talking about our financial liabilities to what we term as Sundry Debtor those are not large, those we can manage, those we can handle,” he told ET NOW.
“Now that fraud is walk down the historical path what was the magnitude of the accounting fraud in the last seven to eight years, was it Rs 7,000 crore, was it Rs 10,000 crore, was that Rs 11,000 crore I assume that is what CBI is referring to but I must say I should not be commenting on it because I have not seen it,” Mr Nayyar added.
On Tuesday, the CBI said the investor loss from the Satyam accounting fraud was worth around Rs 14,000 crore, shares of Satyam plunged by 11% on BSE and financial analysts expressed concerns about the company’s liabilities.
However, there were no entries in the software firm’s books to this effect. This money is in addition to the unaccounted Rs 1,230 crore that Raju claimed to have been infused into Satyam by promoters of 37 front companies floated by Raju. Even in this case, there were no entries books.
Vineet Nayyar, executive vice-chairman of Mahindra Satyam, said that liabilities are still limited. “I think we need to distinguish two things. CBI is talking to the extent of fraud, accounting fraud committed what I am talking about our financial liabilities to what we term as Sundry Debtor those are not large, those we can manage, those we can handle,” he told ET NOW.
“Now that fraud is walk down the historical path what was the magnitude of the accounting fraud in the last seven to eight years, was it Rs 7,000 crore, was it Rs 10,000 crore, was that Rs 11,000 crore I assume that is what CBI is referring to but I must say I should not be commenting on it because I have not seen it,” Mr Nayyar added.
On Tuesday, the CBI said the investor loss from the Satyam accounting fraud was worth around Rs 14,000 crore, shares of Satyam plunged by 11% on BSE and financial analysts expressed concerns about the company’s liabilities.
Posted By:
Pallavi Singh
PGDM III Sem
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