“It’s only when the tide goes out that you learn who’s swimming naked”, says Warren Buffett.
“The Balance Sheet carries as of September 30, 2008: inflated (non-existent) cash and bank balances of Rs 5,040 crore [ed note: a bit over $1 bilion USD] […] What started as a marginal gap between actual operating profit and the one reflected in the books of accounts continued to grow over the years.
“[…] Every attempt was made to keep the wheel moving and to ensure prompt payment of salaries to the associates. The last straw was the selling of most of the pledged shares by the lenders on account of margin triggers.” says ex-CEO of Satyam Computer Services (India’s fourth-largest outsourcing company) Ramalinga Raju.
“Satyam’s auditors PricewaterhouseCoopers said in an e-mail it will issue a statement later.” says Bloomberg News.