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Richa Mishra
Moumita Bakshi Chatterjee

New Delhi, April 21 Clarity on the extent of the financial fraud committed in Satyam Computer Services Ltd will emerge only after the forensic auditors – Deloitte and KPMG – complete their report.

On April 13, when Satyam was going under the hammer, the forensic auditors had informed the Ministry for Corporate Affairs that their report was not complete, official sources said.

A forensic audit is for detection of fraud in application of funds. “Therefore, conclusive findings on where the funds have been diverted are yet to be established,” sources said.

In other words, though it is clear that there has been diversion of funds, the chain of diversion has not yet been established, they explained.

The report of the Serious Fraud Investigation Office (SFIO), which has been submitted to the Ministry, could be termed as a ‘base’ report. “It would be very pre-mature to say anything, as parallel investigations are still going on,” sources said.

Though it has been established that money has come into the Satyam account from satellite companies, there is no evidence that the same has been given from bank accounts in India.

Besides, most expenses have been incurred abroad, sources said, adding that “revenues earned abroad requires to be verified, which is not in the direct jurisdiction of SFIO.”

The SFIO findings are based on the information which was readily available, the balance-sheets of Satyam and satellite companies under scanner and the statements made by those suspected to be involved in the same during interrogations, sources said.

There has been an instance like in the case of Daewoo Motors, where the Ministry, through the Central Board of Direct Taxes (CBDT), had got help for SFIO to investigate into the foreign entities.

In the case of Satyam, the Ministry can always coordinate with the Enforcement Directorate (ED).

The SFIO report has found apparent violations of Companies Act read with IPC.

After the confessions made by Raju regarding the multi-crore fraud on January 7 at Satyam Computer Services, the Government had ordered investigation by the SFIO on January 13.

The now disgraced Chairman of Satyam had admitted to faking financial numbers to the tune of Rs 7,136 crore, including Rs 5,040 crore of non-existent cash and bank balances.

More Stories on : Software | Corporate Governance | Accounting Standards | Satyam Computer Services Ltd

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