The revelations by SFIO that 66% of American Depository Shares(ADS) money of $150 million is untraceable indicate that the fraud is much bigger than what Mr. Ramalinga Raju has revealed. The said money was raised for a particular purpose and there are regulatory requirements of filing reports, with respect to use of such funds on periodical basis. One does not what kind of fudged report that the management of Satyam filed with the Stock exchanges.
The SFIO report also revealed that Satyam had raised loans amounting to Rs 1230.00crores from various front companies which has not been shown in the books of Satyam. If the above figures are added to the amount first declared by the company the fraud may be in excess of Rs. 10000 crores.
The irony is, over the years, for almost 28 quarters,(previous to the scam) various Analysts, International Investment Bankers, Fund managers, Merchant Bankers, Brokerage houses and financial wizards from Australia, Austria, and America to Singapore, South Africa and zimbwebwe have churned out pages and pages of reports on the company and recommended investments in the company. And no body smelt rot in the fish. This episode has dented their credibility and reputation.
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