Satyam’s ex-CFO reveals Raju bros modus operandi
In an exclusive interaction, ICAI President Uttam Agarwal told CNBC-TV18 that prior to the fallout of the Satyam scam, its ex-CFO Srinivas Vadlamani had twice offered his resignation but was coaxed to stay back by the Raju brothers. Vadlamani also shared the modus operandi of the Raju brothers during his questioning by the ICAI team at Hyderabad. Prakash revealed that Vadlamani in his statement to the ICAI said “I regret this Satyam fiasco and have maligned the accounting and auditing profession and reliability of the management. Had I been confessed five years, so many things that have happened would not have taken place.”
Commenting on the Raju brothers’ modus operandi, Agarwal said that the miscreants had selected 30-35 parties out of their 600 clientele base and showed an inflated sales price in their books so they showed Rs 200 crore of sales instead of the real sales figure of Rs 100 crore. Satyam then made a debit entry of Rs 200 crore, internally to give good impression to auditors and they also managed to show that they’ve received that money in their bank accounts every 90 days.