The accounting scam report of IT major, Satyam Computers Services reveals that the firm paid a tax of Rs 186.91 crore over seven years on interest income from fixed deposits that did not existed.

The report prepared by Serious Fraud Investigation Office (SFIO) says that the company paid excess tax on fictitious interest income for seven years from 2000-01 to 2007-08 on non-existent fixed deposits in order to prevent any "systematic falsification of accounts" getting detected.

The SIFO report stated, "The amount of excess taxes paid by the company between the financial year 2000-01 and 2007-08 is found to be Rs 186.91 crore, as worked out by investigation."

Satyam has been found showing fixed deposits worth Rs 3,318.37 crore on its account books against the existing fixed deposits of only Rs 9.96 crore.

The firm had been operating under the leadership of its founder B Ramalinga Raju, who along with brother B Rama Raju was aware that no tax was payable on the false interest income. The report said that, "they deliberately misused the funds of the company to the detriment of its shareholders in making payment of taxes which were not due".

Further the report said that the extortion enabled the company's promoters to portray a nice picture of the firm and thereby obtain very high prices for the shares held in the name of their family members and front companies floated by them.

SIFO added that, "By knowingly making payment of taxes on non-existent accrued interest, they caused wrongful loss to the company and its stakeholders."

Meanwhile asked about the excess tax payment on false income, Raju said that the company should not have paid more tax than warranted by its performance.

The Satyam fraud carried by Ramalinga Raju is the biggest accounting fraud in the country ever.