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.

Earlier, the CBI in its chargesheet against Raju and other accused parties alleged that as against the projected cash and bank balances of Rs 5160 crore by the end of second quarter of 2008 in the balance sheets, the actual cash and bank balance was only Rs 139 crore.

“...It is revealed that huge amounts of cash and bank balances were fraudulently and dishonestly reflected in the balance sheets of SCSL by the accused, where only very less amounts of cash and bank balances were actually available,” the CBI said.

Raju in his confessional letter dated January seven, 2009 had mentioned that the balances sheet for September 2008 carried non-existent cash and bank balances to the tune of Rs 5,040 crore.