Government investigators probing the erstwhile Satyam Computer Services have found stunning details of how the promoters forged bank accounts, diverted funds and tracked operations. The Serious Frauds Investigations Office has uncovered how the Ramalinga Raju family violated corporate governance norms over a seven-year period.
Loopholes deliberately left in computer system to further the designs of the promoters.
Promoters falsified bank book by using forged monthly statements.
Forged bank confirmation letters also submitted to auditors.
Promoters maintained an “Insider Trading Register” and a specially programmed computer server curiously named “My Home Hub”.
Reams of documents seized, including an “Insider Trading Register for April 1 to December 31, 2008”, a 19-page “Takeover Register”, and an “Investments Register”.
Several volumes of minutes of board meetings, and annual general meetings since 1993 also seized.
Insider trading refers illegal trading by anyone who has access to non-public information, and who attempts to profit from that knowledge.
Satyam’s records for several years stored at three different locations in Hyderabad, including the company’s registered office at May Fair Trade Centre, the Satyam Technology Centre’s “Financial Records Godown” at Bahadurpalli. Both the offices are located 40 km apart.
Books of accounts for 2008-09 were being maintained at computer server called “My Home Hub” at Satyam Computers’ center in Hyderabad’s Hitech City in Madhapur.
Details of accounts from the beginning of 2002 till January 7, 2009 – the day Raju made his confession — were stored in a specially-created database server under two separate Internet Protocol addresses.
An IP address is the electronic address of a computer on a network used to pass packets of information between computers.
Vouchers relating to transaction covering several years were kept in the godown.