Mumbai: Satyam Computer is not the only Ramalinga Raju family’s promoted company that fudged books, but Maytas Infrastructure also seems to have misrepresented its financials.
The Maytas Infra understated its profit in April-June quarter and the discrepancies were “duly accounted for” in the company’s books later.
While the role of auditors in Satyam fiasco is questionable as of now, it was statutory auditors of Maytas Infra who pointed out the under-statement in its books.
“The statutory auditors of the company in their limited review report for the quarter ended June 30, 2008, qualified that the company made under-provision for service tax liability and excess provision for deferred tax liability, resulting in a net understatement of profit after tax by Rs1.60 million for the quarter,” Maytas Infra’s vice chairman B Teja Raju said in the “notes” attached to its quarterly results filed with the Bombay Stock Exchange.
“The said liabilities have been duly accounted for in the books of account in the current reporting period (quarter ended September 30, 2008), added Teja Raju, who is a son of Satyam’s founder B Ramalinga Raju.
Ramalinga Raju on Wednesday announced his resignation as Satyam chairman after disclosing financial irregularities to the tune of close to Rs7,800 crore at the company over a period of 7 years in a development that has emerged as the biggest ever corporate fraud in India.
