The document summarizes various accounting manipulations and financial irregularities at Satyam Computers including overstating assets and revenues, understating liabilities, and misreporting profits. Specifically, it finds that Satyam overstated assets by Rs. 5,000-6,000 crore through non-existent cash balances, accrued interest, and underreported liabilities. It also details how Satyam misreported a net profit of Rs. 649 crore for Q2 when the actual operating profit was only Rs. 61 crore.

3.  Value of closing stock at higher value
 Treating some expenditure as capital expenditure.
 Revaluation of fixed assets on higher side.
 Providing no provisions
 No disclosure of extraordinary income.
 Manipulation of accounts to show better picture of
the firm in the form of ratio.

4.  Satyam books have been overstated by Rs 5,000 to
Rs 6,000 crore.
 Inflated (non-existent) cash and bank balances of Rs
5,040 crore (as against Rs 5,361 crore reflected in the
books);
 An accrued interest of Rs 376 crore, which is non-
existent
 An understated liability of Rs 1,230 crore on account
of funds arranged by Mr.Raju

5.  An overstated debtors' position of Rs 490 crore (as against Rs
2,651 reflected in the books)
 For the September quarter(Q2) reported a margin of Rs 649
crore(24 per cent of revenue) as against the actual operating
margin of Rs 61 crore
 The aborted Maytas acquisition deal was the last attempt to fill
the fictitious assets with real ones

6. Company To obtain funding (to Increase profits and Borrowers
borrow money) liquidity ratios (banks, other
financial
institutions)
To reduce tax Decrease profits by Government
payments increasing expenses
To smooth financial Record sales or Owners
data (sales, expenses, purchases in an
accounts receivable, inappropriate
etc.) period;
give large discounts
to debtors for
payments received
before period end
To hide some Increase cash Owners
problems (liquidity, account balance at
profitability, poor the period end;
management increase useful life
decisions) of fixed assets

7. PROFIT & LOSS ASIANP BERGER
Gross Sales 6,322.24 2,100.82
Net Sales 6,322.24 2,100.82
Total Operating Income 6,322.24 1,975.32
Raw Materials Consumed 3,681.53 1,275.73
Other Direct Expenses 105.56 120.52
Payments to Employees 300.45 64.86
Other Administrative Expenses 1,090.20 75.50
Operating Profit BDIT 1,144.50 217.40
Depreciation 94.48 29.98
Operating profit 1,050.02 187.42
Income from Non-Operating Activities 88.16 35.87
PBIT 1,138.18 223.29
Interest 15.35 12.18
PBT 1,122.83 211.11
Provision for Taxes 325.49 1,096.86
Deferred Taxes 26.41 0.00

8. Book value: it is the value at which an items appears in
the books of account or financial statement.
Entity value: it is calculated by considering market
value.