Kitchen inside Finance dept: (A)SATYAM saga January 8, 2009Posted by nsworld in Business and Economy.
Now its open and out, what was earlier whispered within the glass walls of some Investment Banks and Research houses, since the day of aborted MAYTAS take over attempt by SATYAM.
Going by the Raju`s letter (which is now in the public domain ) and media reports fraud estimated is around 7000 crore. But the real magnitude can only be ascertained after a thorough due diligence by an independent authority.
`Window dressing` is the most popular word in the accounting fraternity. When companies tweak a number here and a number there to just make it little attractive and acceptable to the stakeholders, it is called as Window dressing. But the self confessed `Cooking the books` in this case has completely exposed the `kitchen` inside the Finance department to the full public view. When companies completely falsify the numbers and depict an entirely different picture to the outside world then it amounts to `cooking the books`.
Raju in his letter tries to give the feeling that MAYTAS take over bid (MAYTAS infra is promoted by Raju`s sons) was an attempt to fill up the fictitious assets with real ones.(on Satyam`s books) But any one with little common sense would understand that, it would have transferred those fictitious assets to the books of MAYTAS which is one and the same.
Raju`s letter which gives the feeling of a suicide note to the reader, props up many a questions.
· What’s the exact cash balance in bank and will the fifty thousand plus employees get their next month salary?
· What all those `celebrated` independent directors on Board were doing all these days?
· Was the world famous `Auditor` was also hand in glove with the perpetrators of the fraud?
· What is the future of the fourth largest Software exporter of India?
Finally Raju says in his letter “ It was like riding a tiger, not knowing how to get off without being eaten” . Did this `Cooking the books` saga result in any financial gains to the Raju and any other involved in this, only time and a thorough investigation will reveal.