HYDERABAD: The total impact of fraudulent entries by the original promoters of Satyam Computer Services on the profit and loss account was to the tune of ` 6,800 crore, chairman of Tech Mahindra, the firm which acquired Satyam, said on Wednesday.

As per re-stated accounts by Tech Mahindra, the promoters led by Mr B Ramalinga Raju recorded fictitious revenue by creating false invoices and circumventing the normal process by which revenue would be logged in the book of accounts.

Then non-existent cash collections were shown from customers and forged bank statements prepared to support
such claims.

The fictitious revenue from April 1, 2002 to Sep 30, 2008 stood at ` 5,352.8 crore, of which ` 4,870 crore was translated into fictitious cash and bank balances.

Also, interest income that did not exist was recognised from these bank deposits, which aggregated to about ` 899.8 crore, during April 1, 2002 to September 30, 2008.

"It was fictitious profit which was shown based on fictitious revenue which was not earned," Tech Mahindra Chairman, Mr Vineet Nayyar said, presenting the re-stated annual results for 2008-09 and 2009-10.

"They showed fictitious tax payments, they took actual bank loans which were not recorded. We have some entries and debits which we cannot explain, which remain relatively unidentified," said Mr Nayyar.

The scam also involved registering a foreign exchange gain to validate payments from customers. These were about ` 206 crore. During the period, the promoters also took bank loans worth ` 720 crore, which were again not recorded.

"So this was the situation. You had a hugely negative EBIDTA, negative networth and you had loans on top," said Mr Nayyar.

Mahindra Satyam, formerly Satyam Computers, suffered a net loss of ` 8,177 crore in fiscal 2008-09 on net sales of ` 8,813 crore as a result of exceptional items to the tune of ` 7,992 crore arising out of fraud-related expenses, the company said on Wednesday.

Restating the financial accounts for fiscal 2009 and fiscal 2010 here, Mr Nayyar told reporters here that for fiscal 2009-10, the net loss declined drastically to ` 125 crore on net sales of ` 5,481 crore.

"Our cash balance remained at ` 2179 crore for fiscal 2010 and margins for the same fiscal improved to 8.33 per cent from 3.42 per cent in fiscal 2009," Mr Nayyar said.

Admitting that the client base declined to 350 in fiscal 2010 from about 500 in fiscal 2009 after the financial scam surfaced in January 2009, Mr Nayyar said networth, however, improved to `.1,800 crore as against negative networth of ` 8,080 crore when Tech Mahindra took over the beleaguered company.