There were rumours that Vasan Eye Care was a front, and so were rumours of another firm for which the Veritas analyst got arrested – Negative stock report lands analyst in jail
I once met the MD of a claimed 100 cr Hyderabad based software firm to sell my software product. He asked me to come over to his office. These were the days of STPI and 100% tax exemption on software exports. I went up a shady building in Ameerpet and lo and behold, I found a 5000 sq ft large room dimly lit, arranged like a classroom, with about 100 people. The MD’s room was the only cubicle; and even to my naive self something just did not add up. He told me he generates 100 crores with just that room. You either had to think he had some terrific business or that he was looking for a sucker.
Later a friend told me that many ‘software’ firms generate fake export invoices to bring back unaccounted money sent abroad, legitimately and free from tax 
. These offices are just ‘show baazi’.
I also recall going to Satyam’s accounts department on business through someone close to Ramalinga Raju in early 2002. The department looked like a very small Govt office with files stacked up the ceiling. I was of course in awe of the firm and Ramalinga Raju and just thought this is how business is done 
In any case I think the SEBI order on Satyam dated July 15 2014 is very useful for forensic buffs (Sebi orders are generally useful) to learn the inner workings. I am attaching the same here.
Satyam order by sebi.pdf (1.1 MB)
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