Satyam fraud: What was Vadlamani’s role?

Hyderabad, April 19
What was the role of Mr Vadlamani Srinivas, ex-CFO of Satyam Computer Services, who revealed that the FDs were non-existent, results manipulated and he just signed on instructions from Mr B. Ramalinga Raju, ex-Chairman, in the Rs 7,136-crore financial fraud?

Being at the centre of all financial dealings of Satyam, Mr V. Srinivas wilfully and actively manipulated financial data and guided the finance department staff in modifying the published results, which were false and forged, the Central Bureau of Investigation (CBI) has alleged.

In its charge sheet on the Satyam case, the CBI said Mr Srinivas got the monthly bank statements of various banks forged, he got issued forged bank balance confirmation letters and got the forged letters signed by Mr B. Rama Raju (Ex-Managing Director), an accused and brother of Mr Ramalinga Raju, showing purported transfer of funds and got forged FDs prepared.

All these forged documents were used for fraudulently inflating the cash and bank balance artificially in the books of accounts for several years, the CBI chargsheet has brought to light.

Though Mr Srinivas was never designated as Director, he subscribed his signature in the annual financial statements of the company as a Director, the investigating agency has charged.

The ex-CFO dishonestly got the falsified, inflated sales invoices generated and fed in the Oracle Financials System. He was in league with the other accused persons and perpetrated the fraudulent acts. Thus, he was privy to the offences, it concluded.

Further, Mr Srinivas guided the finance department personnel on the quantum of inflation of sales to be infused into the computer system from time to time. The CBI has retrieved evidence to this effect from his e-mail box, the chargesheet said.

Rosy presentations

Mr Srinivas along with Mr Ramalinga Raju gave deceptive replies on Satyam’s earnings during conference calls conducted every quarter to various investors, thus distorting the actual financial position.

During board meetings and the audit committee meetings, the ex-CFO made rosy presentations of the company’s financial health, despite knowing the real financial position. Similarly, by conniving with the Raju brothers, he worked against the interest of the company and shareholders, whose interests he was to protect.

While being party to perpetrating the fraud with the Raju brothers and other accused, Mr Srinivas was a beneficiary. He gained from the dividends received and the amount got by offloading shares at opportune moments, the CBI accused in the chargesheet.