Satyam Computer founder Ramalinga Raju falsified accounts to the tune of Rs 7,000 crore through fictitious Fixed Deposits, current account and interest on FDs and even paid taxes towards the non-existent interest income to make it appear real.

As of the quarter ending September 2008, the total falsification done by Raju was Rs 7,333 crore, sources said, adding that various fictitious assets were created in fixed deposits and the company showed interests on them.

Sources said the company was paying taxes on the fictitious interest that was shown as earnings to make it look real.

Raju brothers were able to mastermind the entire fraud due to loopholes in the accounting system and Enterprise Resource Planning packages of the company, the sources added.

The modus operandi of the Raju brothers, the sources said, was to firstly identify the amount to be falsified, which was finalised by Raju and former CFO Vadlamani Srinivas, and then creating invoices corresponding to the amount. After the creation of invoices, receipts against them were prepared and the Raju brothers and the former CFO made sure that the facts were hidden from others.

They made invoices using the administration protocol and hid facts from others by using the super login of the company, the sources added.

SFIO sources said that the firm, which started making stupendous profits during the Y2K crisis at the turn of the century, started offloading shares after 2002-03, wherein the share holding of promoters was reduced to a mere 8.5 per cent in 2006 from 22.40 per cent in December 2001.

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